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SEGMENT REPORTING (Tables)
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Adjusted Net Income
ANI was as follows:  
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Revenues:
 

 
 

 
 
 
 
Management fees
$
185,580

 
$
182,587

 
$
552,281

 
$
562,692

Incentive income
122,424

 
59,174

 
787,665

 
250,861

Investment income
53,558

 
62,801

 
170,184

 
150,382

Total revenues
361,562

 
304,562

 
1,510,130

 
963,935

Expenses:
 
 
 

 
 
 
 

Compensation and benefits
(95,561
)
 
(83,080
)
 
(279,344
)
 
(247,787
)
Equity-based compensation
(1,070
)
 
(128
)
 
(2,646
)
 
(128
)
Incentive income compensation
(49,222
)
 
(29,546
)
 
(308,446
)
 
(118,268
)
General and administrative
(27,389
)
 
(24,429
)
 
(80,889
)
 
(73,665
)
Depreciation and amortization
(1,791
)
 
(1,901
)
 
(5,266
)
 
(5,573
)
Total expenses
(175,033
)
 
(139,084
)
 
(676,591
)
 
(445,421
)
Adjusted net income before interest and other income (expense)
186,529

 
165,478

 
833,539

 
518,514

Interest expense, net of interest income (1)
(7,074
)
 
(7,687
)
 
(21,617
)
 
(23,914
)
Other income (expense), net
148

 
(59
)
 
412

 
2,274

Adjusted net income
$
179,603

 
$
157,732

 
$
812,334

 
$
496,874

 
 
 
 
 
(1)
Interest income was $0.9 million and $0.8 million for the three months ended September 30, 2013 and 2012, respectively, and $2.4 million and $1.9 million for the nine months ended September 30, 2013 and 2012, respectively.
Reconciliation of Net Income (Loss) Attributable to Oaktree Capital Group, LLC to Adjusted Net Income
A reconciliation of net income attributable to Oaktree Capital Group, LLC to adjusted net income of the investment management segment is presented below.  
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Net income attributable to Oaktree Capital Group, LLC
$
42,948

 
$
25,212

 
$
157,091

 
$
68,539

Equity-based compensation (1) 
6,250

 
7,369

 
18,231

 
27,353

Income taxes (2)
726

 
5,801

 
18,874

 
27,493

Non-Operating Group other income (3)
—

 
—

 
—

 
(6,260
)
Non-Operating Group expenses (3)
271

 
115

 
947

 
393

OCGH non-controlling interest (3) 
129,408

 
119,235

 
617,191

 
379,356

Adjusted net income
$
179,603

 
$
157,732

 
$
812,334

 
$
496,874

 
 
 
 
 
(1)
This adjustment adds back the effect of equity-based compensation charges related to unit grants made before the Company’s initial public offering, which is excluded from adjusted net income because it is a non-cash charge that does not affect the Company's financial position.
(2)
Because adjusted net income is a pre-tax measure, this adjustment eliminates the effect of income tax expense.
(3)
Because adjusted net income is calculated at the Operating Group level, this adjustment adds back the effect of items applicable to OCG, its Intermediate Holding Companies or the OCGH non-controlling interest.
Schedule of Reconciliation of Total Segments to Income Loss Attributable to Oaktree Capital Group, LLC and Total Assets
The following tables reconcile the Company’s segment information to the condensed consolidated financial statements:
 
As of or for the Three Months Ended September 30, 2013
 
Segment
 
Adjustments
 
Consolidated
Management fees (1)
$
185,580

 
$
(128,794
)
 
$
56,786

Incentive income (1)
122,424

 
(122,424
)
 
—

Investment income (1)
53,558

 
(42,090
)
 
11,468

Total expenses (2) 
(175,033
)
 
(39,125
)
 
(214,158
)
Interest expense, net (3)
(7,074
)
 
(10,263
)
 
(17,337
)
Other income, net
148

 
—

 
148

Other income of consolidated funds (4)
—

 
1,253,050

 
1,253,050

Income taxes
—

 
(726
)
 
(726
)
Net income attributable to non-controlling redeemable interests in consolidated funds
—

 
(916,875
)
 
(916,875
)
Net income attributable to OCGH non-controlling interest in consolidated subsidiaries
—

 
(129,408
)
 
(129,408
)
Adjusted net income/net income attributable to Oaktree Capital Group, LLC
$
179,603

 
$
(136,655
)
 
$
42,948

Corporate investments, at equity (5)
$
1,100,500

 
$
(1,009,820
)
 
$
90,680

Total assets(6) 
$
2,649,360

 
$
42,051,821

 
$
44,701,181

 
 
 
 
 
(1)
The adjustment represents the elimination of amounts attributable to the consolidated funds.
(2)
The expense adjustment consists of (a) equity-based compensation charges of $6,250 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $32,604 and (c) expenses incurred by the Intermediate Holding Companies of $271.
(3)
The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income.
(4)
The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds.
(5)
The adjustment to corporate investments is to remove from segment assets the consolidated funds that are treated as equity method investments for segment reporting purposes.
(6)
The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable.
 
 
As of or for the Three Months Ended September 30, 2012
 
Segment
 
Adjustments
 
Consolidated
Management fees (1) 
$
182,587

 
$
(152,001
)
 
$
30,586

Incentive income (1)
59,174

 
(57,854
)
 
1,320

Investment income (1)
62,801

 
(54,503
)
 
8,298

Total expenses (2) 
(139,084
)
 
(28,936
)
 
(168,020
)
Interest expense, net (3) 
(7,687
)
 
(3,102
)
 
(10,789
)
Other income, net
(59
)
 
—

 
(59
)
Other income of consolidated funds (4) 
—

 
2,358,767

 
2,358,767

Income taxes
—

 
(5,801
)
 
(5,801
)
Net income attributable to non-controlling redeemable interests in consolidated funds
—

 
(2,069,855
)
 
(2,069,855
)
Net income attributable to OCGH non-controlling interest in consolidated subsidiaries
—

 
(119,235
)
 
(119,235
)
Adjusted net income/net income attributable to Oaktree Capital Group, LLC
$
157,732

 
$
(132,520
)
 
$
25,212

Corporate investments, at equity (5)
$
1,236,710

 
$
(1,108,088
)
 
$
128,622

Total assets (6)
$
2,266,488

 
$
44,542,839

 
$
46,809,327

 
 
 
 
 
(1)
The adjustment represents the elimination of amounts attributable to the consolidated funds.
(2)
The expense adjustment consists of (a) equity-based compensation charges of $7,369 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $21,452 and (c) expenses incurred by the Intermediate Holding Companies of $115.
(3)
The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income.
(4)
The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds.
(5)
The adjustment to corporate investments is to remove from segment assets the consolidated funds that are treated as equity method investments for segment reporting purposes.
(6)
The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable.












 
As of or for the Nine Months Ended September 30, 2013
 
Segment
 
Adjustments
 
Consolidated
Management fees (1)
$
552,281

 
$
(402,859
)
 
$
149,422

Incentive income (1)
787,665

 
(785,348
)
 
2,317

Investment income (1)
170,184

 
(147,584
)
 
22,600

Total expenses (2) 
(676,591
)
 
(98,612
)
 
(775,203
)
Interest expense, net (3)
(21,617
)
 
(21,314
)
 
(42,931
)
Other income, net
412

 
—

 
412

Other income of consolidated funds (4)
—

 
5,179,866

 
5,179,866

Income taxes
—

 
(18,874
)
 
(18,874
)
Net income attributable to non-controlling redeemable interests in consolidated funds
—

 
(3,743,327
)
 
(3,743,327
)
Net income attributable to OCGH non-controlling interest in consolidated subsidiaries
—

 
(617,191
)
 
(617,191
)
Adjusted net income/net income attributable to Oaktree Capital Group, LLC
$
812,334

 
$
(655,243
)
 
$
157,091

Corporate investments, at equity (5)
$
1,100,500

 
$
(1,009,820
)
 
$
90,680

Total assets(6) 
$
2,649,360

 
$
42,051,821

 
$
44,701,181

 
 
 
 
 
(1)
The adjustment represents the elimination of amounts attributable to the consolidated funds.
(2)
The expense adjustment consists of (a) equity-based compensation charges of $18,231 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $79,434 and (c) expenses incurred by the Intermediate Holding Companies of $947.
(3)
The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income.
(4)
The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds.
(5)
The adjustment to corporate investments is to remove from segment assets the consolidated funds that are treated as equity method investments for segment reporting purposes.
(6)
The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable.
 
 
As of or for the Nine Months Ended September 30, 2012
 
Segment
 
Adjustments
 
Consolidated
Management fees (1) 
$
562,692

 
$
(470,879
)
 
$
91,813

Incentive income (1)
250,861

 
(244,493
)
 
6,368

Investment income (1)
150,382

 
(132,699
)
 
17,683

Total expenses (2) 
(445,421
)
 
(97,174
)
 
(542,595
)
Interest expense, net (3) 
(23,914
)
 
(9,725
)
 
(33,639
)
Other income, net (4)
2,274

 
6,260

 
8,534

Other income of consolidated funds (5) 
—

 
5,795,524

 
5,795,524

Income taxes
—

 
(27,493
)
 
(27,493
)
Net income attributable to non-controlling redeemable interests in consolidated funds
—

 
(4,868,300
)
 
(4,868,300
)
Net income attributable to OCGH non-controlling interest in consolidated subsidiaries
—

 
(379,356
)
 
(379,356
)
Adjusted net income/net income attributable to Oaktree Capital Group, LLC
$
496,874

 
$
(428,335
)
 
$
68,539

Corporate investments, at equity (6)
$
1,236,710

 
$
(1,108,088
)
 
$
128,622

Total assets (7)
$
2,266,488

 
$
44,542,839

 
$
46,809,327

 
 
 
 
 
(1)
The adjustment represents the elimination of amounts attributable to the consolidated funds.
(2)
The expense adjustment consists of (a) equity-based compensation charges of $27,353 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $69,428 and (c) expenses incurred by the Intermediate Holding Companies of $393.
(3)
The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income.
(4)
The other income, net adjustment represents other income or expenses of OCG or its Intermediate Holding Companies. This amount is attributable to a reduction in the amount of the deferred tax asset under the tax receivable agreement associated with the 2007 Private Offering, which reduced the tax receivable agreement liability payable to OCGH unitholders.
(5)
The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds.
(6)
The adjustment to corporate investments is to remove from segment assets the consolidated funds that are treated as equity method investments for segment reporting purposes.
(7)
The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable.