SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2015

Financial Data of Segments

The following table presents the financial data for Blackstone’s five segments for the three months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015
	Private Equity			Real Estate			Hedge Fund Solutions			Credit			Financial Advisory			Total Segments
Segment Revenues
Management and Advisory Fees, Net
Base Management Fees	$	121,918		$	140,743		$	130,216		$	123,615		$	—		$	516,492
Advisory Fees		—			—			—			—			76,998			76,998
Transaction and Other Fees, Net		(12,131	)		21,510			—			2,060			289			11,728
Management Fee Offsets		(9,028	)		(5,428	)		(608	)		(3,370	)		—			(18,434	)
Total Management and Advisory Fees, Net		100,759			156,825			129,608			122,305			77,287			586,784
Performance Fees
Realized
Carried Interest		546,575			363,983			—			26,925			—			937,483
Incentive Fees		—			1,220			16,915			29,684			—			47,819
Unrealized
Carried Interest		(305,573	)		(188,608	)		8,014			44,218			—			(441,949	)
Incentive Fees		—			3,935			15,855			6,521			—			26,311
Total Performance Fees		241,002			180,530			40,784			107,348			—			569,664
Investment Income (Loss)
Realized		50,258			85,432			(1,757	)		2,723			(159	)		136,497
Unrealized		(22,301	)		(107,691	)		2,032			2,760			(523	)		(125,723	)
Total Investment Income (Loss)		27,957			(22,259	)		275			5,483			(682	)		10,774
Interest and Dividend Revenue		7,667			10,259			3,970			5,938			3,192			31,026
Other		2,515			1,077			459			34			(112	)		3,973
Total Revenues		379,900			326,432			175,096			241,108			79,685			1,202,221
Expenses
Compensation and Benefits Compensation		67,079			79,484			45,841			47,124			49,824			289,352
Performance Fee Compensation
Realized
Carried Interest		106,502			116,168			—			15,362			—			238,032
Incentive Fees		—			671			8,711			12,455			—			21,837
Unrealized
Carried Interest		(25,574	)		(50,559	)		4,077			21,497			—			(50,559	)
Incentive Fees		—			230			3,764			2,137			—			6,131
Total Compensation and Benefits		148,007			145,994			62,393			98,575			49,824			504,793
Other Operating Expenses		62,458			43,346			20,499			23,539			18,559			168,401
Total Expenses		210,465			189,340			82,892			122,114			68,383			673,194
Economic Income	$	169,435		$	137,092		$	92,204		$	118,994		$	11,302		$	529,027

	Three Months Ended June 30, 2014
	Private Equity			Real Estate			Hedge Fund Solutions			Credit			Financial Advisory			Total Segments
Segment Revenues
Management and Advisory Fees, Net
Base Management Fees	$	103,204		$	157,869		$	123,008		$	112,489		$	—		$	496,570
Advisory Fees		—			—			—			—			114,914			114,914
Transaction and Other Fees, Net		27,616			13,514			126			7,064			876			49,196
Management Fee Offsets		(4,246	)		(7,702	)		(1,531	)		(6,739	)		—			(20,218	)
Total Management and Advisory Fees, Net		126,574			163,681			121,603			112,814			115,790			640,462
Performance Fees
Realized
Carried Interest		212,394			417,826			—			11,439			—			641,659
Incentive Fees		—			6,070			7,973			25,248			—			39,291
Unrealized
Carried Interest		502,210			119,461			—			39,041			—			660,712
Incentive Fees		—			(3,483	)		30,556			29,703			—			56,776
Total Performance Fees		714,604			539,874			38,529			105,431			—			1,398,438
Investment Income (Loss)
Realized		74,812			122,664			2,394			2,223			106			202,199
Unrealized		17,662			(50,437	)		1,057			4,521			969			(26,228	)
Total Investment Income		92,474			72,227			3,451			6,744			1,075			175,971
Interest and Dividend Revenue		4,666			8,009			2,340			4,892			2,187			22,094
Other		564			(218	)		(203	)		11			(160	)		(6	)
Total Revenues		938,882			783,573			165,720			229,892			118,892			2,236,959
Expenses
Compensation and Benefits Compensation		73,038			85,582			43,341			51,310			69,744			323,015
Performance Fee Compensation
Realized
Carried Interest		112,720			143,442			—			4,139			—			260,301
Incentive Fees		—			3,081			2,918			12,510			—			18,509
Unrealized
Carried Interest		66,194			27,339			—			20,803			—			114,336
Incentive Fees		—			(1,783	)		11,252			15,223			—			24,692
Total Compensation and Benefits		251,952			257,661			57,511			103,985			69,744			740,853
Other Operating Expenses		39,193			36,542			25,101			22,159			22,116			145,111
Total Expenses		291,145			294,203			82,612			126,144			91,860			885,964
Economic Income	$	647,737		$	489,370		$	83,108		$	103,748		$	27,032		$	1,350,995

The following table presents the financial data for Blackstone’s segments as of and for the six months ended June 30, 2015 and 2014:

	June 30, 2015 and the Six Months Then Ended
	Private Equity			Real Estate			Hedge Fund Solutions			Credit			Financial Advisory			Total Segments
Segment Revenues
Management and Advisory Fees, Net
Base Management Fees	$	230,301		$	293,091		$	260,853		$	248,644		$	—		$	1,032,889
Advisory Fees		—			—			—			—			161,236			161,236
Transaction and Other Fees, Net		8,228			36,726			25			3,517			305			48,801
Management Fee Offsets		(13,977	)		(10,294	)		(888	)		(11,220	)		—			(36,379	)
Total Management and Advisory Fees, Net		224,552			319,523			259,990			240,941			161,541			1,206,547
Performance Fees
Realized
Carried Interest		929,553			1,175,232			—			40,292			—			2,145,077
Incentive Fees		—			1,943			27,431			48,115			—			77,489
Unrealized
Carried Interest		261,249			(369,627	)		8,014			32,267			—			(68,097	)
Incentive Fees		—			10,004			63,282			15,645			—			88,931
Total Performance Fees		1,190,802			817,552			98,727			136,319			—			2,243,400
Investment Income (Loss)
Realized		95,074			156,776			(12,132	)		4,960			(389	)		244,289
Unrealized		9,186			(70,181	)		6,515			9,647			959			(43,874	)
Total Investment Income (Loss)		104,260			86,595			(5,617	)		14,607			570			200,415
Interest and Dividend Revenue		15,284			20,256			7,919			11,589			6,429			61,477
Other		690			(2,900	)		(1,148	)		3,527			(1,068	)		(899	)
Total Revenues		1,535,588			1,241,026			359,871			406,983			167,472			3,710,940
Expenses
Compensation and Benefits Compensation		137,168			164,318			101,945			97,001			118,758			619,190
Performance Fee Compensation Realized
Carried Interest		145,984			362,664			—			21,632			—			530,280
Incentive Fees		—			1,027			12,181			20,856			—			34,064
Unrealized
Carried Interest		152,546			(148,643	)		4,077			15,841			—			23,821
Incentive Fees		—			2,805			19,415			8,872			—			31,092
Total Compensation and Benefits		435,698			382,171			137,618			164,202			118,758			1,238,447
Other Operating Expenses		101,213			83,489			41,705			45,375			39,901			311,683
Total Expenses		536,911			465,660			179,323			209,577			158,659			1,550,130
Economic Income	$	998,677		$	775,366		$	180,548		$	197,406		$	8,813		$	2,160,810
Segment Assets as of June 30, 2015	$	6,684,342		$	7,757,463		$	1,473,846		$	2,873,517		$	1,063,761		$	19,852,929

	Six Months Ended June 30, 2014
	Private Equity			Real Estate			Hedge Fund Solutions			Credit			Financial Advisory			Total Segments
Segment Revenues
Management and Advisory Fees, Net
Base Management Fees	$	201,788		$	317,205		$	236,392		$	218,063		$	—		$	973,448
Advisory Fees		—			—			—			—			184,877			184,877
Transaction and Other Fees, Net		70,463			27,078			219			10,408			938			109,106
Management Fee Offsets		(5,959	)		(16,926	)		(2,986	)		(10,991	)		—			(36,862	)
Total Management and Advisory Fees, Net		266,292			327,357			233,625			217,480			185,815			1,230,569
Performance Fees
Realized
Carried Interest		332,199			612,484			—			30,599			—			975,282
Incentive Fees		—			6,044			47,818			39,266			—			93,128
Unrealized
Carried Interest		669,275			259,698			—			62,027			—			991,000
Incentive Fees		—			(746	)		48,641			70,147			—			118,042
Total Performance Fees		1,001,474			877,480			96,459			202,039			—			2,177,452
Investment Income (Loss)
Realized		135,347			154,021			19,214			5,294			240			314,116
Unrealized		8,629			(45,058	)		5,488			7,600			1,663			(21,678	)
Total Investment Income		143,976			108,963			24,702			12,894			1,903			292,438
Interest and Dividend Revenue		9,894			14,119			5,001			10,753			4,689			44,456
Other		1,428			99			(81	)		(248	)		(335	)		863
Total Revenues		1,423,064			1,328,018			359,706			442,918			192,072			3,745,778
Expenses
Compensation and Benefits Compensation		146,345			165,815			83,912			102,062			131,426			629,560
Performance Fee Compensation Realized
Carried Interest		198,491			195,275			—			15,933			—			409,699
Incentive Fees		—			3,065			16,189			22,890			—			42,144
Unrealized
Carried Interest		39,046			84,324			—			31,656			—			155,026
Incentive Fees		—			(401	)		18,013			30,611			—			48,223
Total Compensation and Benefits		383,882			448,078			118,114			203,152			131,426			1,284,652
Other Operating Expenses		72,199			69,649			44,581			54,998			43,458			284,885
Total Expenses		456,081			517,727			162,695			258,150			174,884			1,569,537
Economic Income	$	966,983		$	810,291		$	197,011		$	184,768		$	17,188		$	2,176,241

Reconciliation of Total Segments to Income Before Provision for Taxes and Total Assets

The following table reconciles the Total Segments to Blackstone’s Income Before Provision for Taxes for the three months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015							Three Months Ended June 30, 2014
	Total Segments		Consolidation Adjustments and Reconciling Items			Blackstone Consolidated		Total Segments		Consolidation Adjustments and Reconciling Items			Blackstone Consolidated
Revenues	$	1,202,221	$	22,981	(a)	$	1,225,202	$	2,236,959	$	20,901	(a)	$	2,257,860
Expenses	$	673,194	$	241,238	(b)	$	914,432	$	885,964	$	203,817	(b)	$	1,089,781
Other Income	$	—	$	82,015	(c)	$	82,015	$	—	$	138,585	(c)	$	138,585
Economic Income	$	529,027	$	(136,242)	(d)	$	392,785	$	1,350,995	$	(44,331)	(d)	$	1,306,664

(a) The Revenues adjustment represents management and performance fees earned from Blackstone Funds which were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment related Investment Income, which is included in Blackstone consolidated revenues.

(b) The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation to arrive at Blackstone consolidated expenses.

(c) The Other Income adjustment results from the following:

	Three Months Ended June 30,
	2015			2014
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss	$	(31,781	)	$	(21,040	)
Fund Expenses Added in Consolidation		33,677			765
Non-Controlling Interests in Income of Consolidated Entities		80,496			162,547
Transaction-Related Other Income		(377	)		(3,687	)
Total Consolidation Adjustments and Reconciling Items	$	82,015		$	138,585

(d) The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Condensed Consolidated Statements of Operations consists of the following:

	Three Months Ended June 30,
	2015			2014
Economic Income	$	529,027		$	1,350,995
Adjustments
Amortization of Intangibles		(24,720	)		(28,310	)
IPO and Acquisition-Related Charges		(192,018	)		(178,568	)
Non-Controlling Interests in Income of Consolidated Entities		80,496			162,547
Total Consolidation Adjustments and Reconciling Items		(136,242	)		(44,331	)
Income Before Provision for Taxes	$	392,785		$	1,306,664

The following table reconciles the Total Segments to Blackstone’s Income Before Provision for Taxes and Total Assets as of and for the six months ended June 30, 2015 and 2014:

	June 30, 2015 and the Six Months Then Ended						Six Months Ended June 30, 2014
	Total Segments		Consolidation Adjustments and Reconciling Items		Blackstone Consolidated		Total Segments		Consolidation Adjustments and Reconciling Items		Blackstone Consolidated
Revenues	$	3,710,940	$	26,620(a)	$	3,737,560	$	3,745,778	$	38,750(a)	$	3,784,528
Expenses	$	1,550,130	$	506,870(b)	$	2,057,000	$	1,569,537	$	408,095(b)	$	1,977,632
Other Income	$	—	$	175,570(c)	$	175,570	$	—	$	208,740(c)	$	208,740
Economic Income	$	2,160,810	$	(304,680)(d)	$	1,856,130	$	2,176,241	$	(160,605)(d)	$	2,015,636
Total Assets	$	19,852,929	$	4,830,572(e)	$	24,683,501

(a) The Revenues adjustment represents management and performance fees earned from Blackstone Funds that were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment related Investment Income, which is included in Blackstone consolidated revenues.

(b) The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation to arrive at Blackstone consolidated expenses.

(c) The Other Income adjustment results from the following:

	Six Months Ended June 30,
	2015			2014
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss	$	(35,492	)	$	(38,918	)
Fund Expenses Added in Consolidation		43,044			19
Non-Controlling Interests in Income of Consolidated Entities		169,819			252,300
Transaction-Related Other Income		(1,801	)		(4,661	)
Total Consolidation Adjustments and Reconciling Items	$	175,570		$	208,740

(d) The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Condensed Consolidated Statements of Operations consists of the following:

	Six Months Ended June 30,
	2015			2014
Economic Income	$	2,160,810		$	2,176,241
Adjustments
Amortization of Intangibles		(50,619	)		(57,313	)
IPO and Acquisition-Related Charges		(423,880	)		(355,592	)
Non-Controlling Interests in Income of Consolidated Entities		169,819			252,300
Total Consolidation Adjustments and Reconciling Items		(304,680	)		(160,605	)
Income Before Provision for Taxes	$	1,856,130		$	2,015,636

(e) The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets.