SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2016

Financial Data of Segments

The following table presents the financial data for Blackstone’s four segments as of and for the three months ended March 31, 2016 and 2015.  

	March 31, 2016 and the Three Months Then Ended
	Private Equity			Real Estate			Hedge Fund Solutions			Credit			Total Segments
Segment Revenues
Management and Advisory Fees, Net
Base Management Fees	$	130,648		$	199,907		$	130,158		$	125,990		$	586,703
Advisory Fees		481			—			—			—			481
Transaction and Other Fees, Net		8,439			35,794			543			1,342			46,118
Management Fee Offsets		(6,848	)		(3,595	)		—			(9,658	)		(20,101	)
Total Management and Advisory Fees, Net		132,720			232,106			130,701			117,674			613,201
Performance Fees
Realized
Carried Interest		30,282			200,627			—			—			230,909
Incentive Fees		—			4,069			2,684			21,697			28,450
Unrealized
Carried Interest		73,875			(11,522	)		32			(14,779	)		47,606
Incentive Fees		—			9,765			(2,935	)		270			7,100
Total Performance Fees		104,157			202,939			(219	)		7,188			314,065
Investment Income (Loss)
Realized		(15,357	)		12,975			(4,745	)		(2,974	)		(10,101	)
Unrealized		15,440			(2,137	)		(12,291	)		(17,561	)		(16,549	)
Total Investment Income (Loss)		83			10,838			(17,036	)		(20,535	)		(26,650	)
Interest and Dividend Revenue		9,849			13,188			5,296			6,748			35,081
Other		(1,587	)		(1,909	)		(1,388	)		(1,364	)		(6,248	)
Total Revenues		245,222			457,162			117,354			109,711			929,449
Expenses
Compensation and Benefits Compensation		80,274			100,578			54,169			52,382			287,403
Performance Fee Compensation
Realized
Carried Interest		15,427			43,076			—			—			58,503
Incentive Fees		—			2,133			1,863			10,127			14,123
Unrealized
Carried Interest		9,296			27,703			—			(6,998	)		30,001
Incentive Fees		—			4,158			(1,195	)		485			3,448
Total Compensation and Benefits		104,997			177,648			54,837			55,996			393,478
Other Operating Expenses		48,063			48,097			26,146			26,220			148,526
Total Expenses		153,060			225,745			80,983			82,216			542,004
Economic Income	$	92,162		$	231,417		$	36,371		$	27,495		$	387,445
Segment Assets	$	5,390,618		$	7,320,885		$	1,762,700		$	2,650,331		$	17,124,534

	Three Months Ended March 31, 2015
	Private Equity			Real Estate			Hedge Fund Solutions			Credit			Financial Advisory			Total Segments
Segment Revenues
Management and Advisory Fees, Net
Base Management Fees	$	108,383		$	152,348		$	130,637		$	125,029		$	—		$	516,397
Advisory Fees		2,429			—			—			—			81,809			84,238
Transaction and Other Fees, Net		20,359			15,216			25			1,457			16			37,073
Management Fee Offsets		(4,949	)		(4,866	)		(280	)		(7,850	)		—			(17,945	)
Total Management and Advisory Fees, Net		126,222			162,698			130,382			118,636			81,825			619,763
Performance Fees
Realized
Carried Interest		382,978			811,249			—			13,367			—			1,207,594
Incentive Fees		—			723			10,516			18,431			—			29,670
Unrealized
Carried Interest		566,822			(181,019	)		—			(11,951	)		—			373,852
Incentive Fees		—			6,069			47,427			9,124			—			62,620
Total Performance Fees		949,800			637,022			57,943			28,971			—			1,673,736
Investment Income (Loss)
Realized		44,816			71,344			(10,375	)		2,237			(230	)		107,792
Unrealized		31,487			37,510			4,483			6,887			1,482			81,849
Total Investment Income (Loss)		76,303			108,854			(5,892	)		9,124			1,252			189,641
Interest and Dividend Revenue		7,618			9,997			3,949			5,651			3,236			30,451
Other		(1,825	)		(3,977	)		(1,607	)		3,493			(956	)		(4,872	)
Total Revenues		1,158,118			914,594			184,775			165,875			85,357			2,508,719
Expenses
Compensation and Benefits Compensation		71,072			84,834			56,104			49,877			67,951			329,838
Performance Fee Compensation
Realized
Carried Interest		39,482			246,496			—			6,270			—			292,248
Incentive Fees		—			356			3,470			8,401			—			12,227
Unrealized
Carried Interest		178,120			(98,084	)		—			(5,656	)		—			74,380
Incentive Fees		—			2,575			15,651			6,735			—			24,961
Total Compensation and Benefits		288,674			236,177			75,225			65,627			67,951			733,654
Other Operating Expenses		38,875			40,143			21,206			21,836			21,222			143,282
Total Expenses		327,549			276,320			96,431			87,463			89,173			876,936
Economic Income (Loss)	$	830,569		$	638,274		$	88,344		$	78,412		$	(3,816	)	$	1,631,783

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 and Total Assets as of and for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016							Three Months Ended March 31, 2015
	Total Segments		Consolidation Adjustments and Reconciling Items			Blackstone Consolidated		Total Segments		Consolidation Adjustments and Reconciling Items			Blackstone Consolidated
Revenues	$	929,449	$	2,905	(a)	$	932,354	$	2,508,719	$	3,639	(a)	$	2,512,358
Expenses	$	542,004	$	75,706	(b)	$	617,710	$	876,936	$	265,632	(b)	$	1,142,568
Other Income	$	—	$	19,142	(c)	$	19,142	$	—	$	93,555	(c)	$	93,555
Economic Income	$	387,445	$	(53,659)	(d)	$	333,786	$	1,631,783	$	(168,438)	(d)	$	1,463,345
Total Assets	$	17,124,534	$	4,926,370	(e)	$	22,050,904

(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 (Loss), 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 March 31,
	2016			2015
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss	$	(2,757	)	$	(3,711	)
Fund Expenses Added in Consolidation		(5,847	)		9,367
Non-Controlling Interests in Income of Consolidated Entities		33,685			89,323
Transaction-Related Other Loss		(5,939	)		(1,424	)
Total Consolidation Adjustments and Reconciling Items	$	19,142		$	93,555

(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 March 31,
	2016			2015
Economic Income	$	387,445		$	1,631,783
Adjustments
Amortization of Intangibles		(23,208	)		(25,899	)
IPO and Acquisition-Related Charges		(64,136	)		(231,862	)
Non-Controlling Interests in Income of Consolidated Entities		33,685			89,323
Total Consolidation Adjustments and Reconciling Items		(53,659	)		(168,438	)
Income Before Provision for Taxes	$	333,786		$	1,463,345

(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.