Supplemental Financial Information

9 Months Ended

Sep. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Supplemental Financial Information

16. Supplemental Financial Information

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Company’s financial position as of September 30, 2020 and December 31, 2019 and results of operations for the three and nine months ended September 30, 2020 and 2019. The supplemental statement of cash flows is presented without effects of the Consolidated Funds.

	As of September 30, 2020
	Consolidated Operating Entities		Consolidated Funds		Eliminations		Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$	938.4	$	—	$	—	$	938.4
Cash and cash equivalents held at Consolidated Funds	—		377.8		—		377.8
Restricted cash	0.4		—		—		0.4
Investments, including performance allocations of $4,184.2 million	6,629.8		—		(145.6)		6,484.2
Investments of Consolidated Funds	—		5,414.8		—		5,414.8
Due from affiliates and other receivables, net	253.1		—		(5.9)		247.2
Due from affiliates and other receivables of Consolidated Funds, net	—		100.3		—		100.3
Fixed assets, net	133.9		—		—		133.9
Lease right-of-use assets, net	187.7		—		—		187.7
Deposits and other	53.3		0.2		—		53.5
Intangible assets, net	51.9		—		—		51.9
Deferred tax assets	212.1		—		—		212.1
Total assets	$	8,460.6	$	5,893.1	$	(151.5)	$	14,202.2
Liabilities and equity
Debt obligations	$	1,987.1	$	—	$	—	$	1,987.1
Loans payable of Consolidated Funds	—		5,263.7		—		5,263.7
Accounts payable, accrued expenses and other liabilities	311.8		—		—		311.8
Accrued compensation and benefits	2,684.2		—		—		2,684.2
Due to affiliates	448.0		—		—		448.0
Deferred revenue	272.4		—		(0.1)		272.3
Deferred tax liabilities	47.2		—		—		47.2
Other liabilities of Consolidated Funds	—		475.2		—		475.2
Lease liabilities	265.0		—		—		265.0
Accrued giveback obligations	17.5		—		—		17.5
Total liabilities	6,033.2		5,738.9		(0.1)		11,772.0
Common stock	3.5		—		—		3.5
Additional paid-in capital	2,615.7		147.4		(147.4)		2,615.7
Retained earnings (deficit)	(170.6)		—		—		(170.6)
Accumulated other comprehensive loss	(234.7)		1.6		(4.0)		(237.1)
Non-controlling interests in consolidated entities	213.5		5.2		—		218.7
Total equity	2,427.4		154.2		(151.4)		2,430.2
Total liabilities and equity	$	8,460.6	$	5,893.1	$	(151.5)	$	14,202.2

	As of December 31, 2019
	Consolidated Operating Entities		Consolidated Funds		Eliminations		Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$	793.4	$	—	$	—	$	793.4
Cash and cash equivalents held at Consolidated Funds	—		122.4		—		122.4
Restricted cash	34.6		—		—		34.6
Investments, including performance allocations of $3,855.6 million	6,982.7		—		(178.3)		6,804.4
Investments of Consolidated Funds	—		5,007.3		—		5,007.3
Due from affiliates and other receivables, net	279.0		—		(5.1)		273.9
Due from affiliates and other receivables of Consolidated Funds, net	—		74.4		—		74.4
Fixed assets, net	108.2		—		—		108.2
Lease right-of-use assets, net	203.8		—		—		203.8
Deposits and other	53.8		0.2		—		54.0
Intangible assets, net	62.3		—		—		62.3
Deferred tax assets	270.1		—		—		270.1
Total assets	$	8,787.9	$	5,204.3	$	(183.4)	$	13,808.8
Liabilities and partners’ capital
Debt obligations	$	1,976.3	$	—	$	—	$	1,976.3
Loans payable of Consolidated Funds	—		4,706.7		—		4,706.7
Accounts payable, accrued expenses and other liabilities	354.9		—		—		354.9
Accrued compensation and benefits	2,496.5		—		—		2,496.5
Due to affiliates	542.1		—		—		542.1
Deferred revenue	71.0		—		—		71.0
Deferred tax liabilities	65.2		—		—		65.2
Other liabilities of Consolidated Funds	—		316.1		—		316.1
Lease liabilities	288.2		—		—		288.2
Accrued giveback obligations	22.2		—		—		22.2
Total liabilities	5,816.4		5,022.8		—		10,839.2
Partners’ capital	703.8		61.7		(61.7)		703.8
Accumulated other comprehensive loss	(84.5)		(0.1)		(0.6)		(85.2)
Non-controlling interests in consolidated entities	333.4		0.1		—		333.5
Non-controlling interests in Carlyle Holdings	2,018.8		119.8		(121.1)		2,017.5
Total partners’ capital	2,971.5		181.5		(183.4)		2,969.6
Total liabilities and partners’ capital	$	8,787.9	$	5,204.3	$	(183.4)	$	13,808.8

	Three Months Ended September 30, 2020
	Consolidated Operating Entities		Consolidated Funds		Eliminations		Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	370.0	$	—	$	(6.2)	$	363.8
Incentive fees	9.1		—		—		9.1
Investment income (loss)
Performance allocations	477.4		—		—		477.4
Principal investment income (loss)	138.2		—		(31.5)		106.7
Total investment income	615.6		—		(31.5)		584.1
Interest and other income	23.9		—		(2.6)		21.3
Interest and other income of Consolidated Funds	—		56.3		—		56.3
Total revenues	1,018.6		56.3		(40.3)		1,034.6
Expenses
Compensation and benefits
Cash-based compensation and benefits	222.2		—		—		222.2
Equity-based compensation	18.7		—		—		18.7
Performance allocations and incentive fee related compensation	250.6		—		—		250.6
Total compensation and benefits	491.5		—		—		491.5
General, administrative and other expenses	91.2		—		(0.1)		91.1
Interest	23.0		—		—		23.0
Interest and other expenses of Consolidated Funds	—		47.9		(10.7)		37.2
Other non-operating expenses	0.6		—		—		0.6
Total expenses	606.3		47.9		(10.8)		643.4
Other loss
Net investment income of Consolidated Funds	—		23.9		—		23.9
Income before provision for income taxes	412.3		32.3		(29.5)		415.1
Provision for income taxes	82.4		—		—		82.4
Net income	329.9		32.3		(29.5)		332.7
Net income attributable to non-controlling interests in consolidated entities	34.4		—		2.8		37.2
Net income attributable to The Carlyle Group Inc.	$	295.5	$	32.3	$	(32.3)	$	295.5

	Nine Months Ended September 30, 2020
	Consolidated Operating Entities		Consolidated Funds		Eliminations		Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	1,108.5	$	—	$	(17.0)	$	1,091.5
Incentive fees	27.0		—		—		27.0
Investment income (loss)
Performance allocations	731.6		—		—		731.6
Principal investment income (loss)	(688.0)		—		28.8		(659.2)
Total investment income	43.6		—		28.8		72.4
Interest and other income	73.7		—		(9.2)		64.5
Interest and other income of Consolidated Funds	—		164.5		—		164.5
Total revenues	1,252.8		164.5		2.6		1,419.9
Expenses
Compensation and benefits
Cash-based compensation and benefits	639.0		—		—		639.0
Equity-based compensation	78.3		—		—		78.3
Performance allocations and incentive fee related compensation	343.7		—		—		343.7
Total compensation and benefits	1,061.0		—		—		1,061.0
General, administrative and other expenses	241.0		—		(0.1)		240.9
Interest	72.8		—		—		72.8
Interest and other expenses of Consolidated Funds	—		148.8		(26.7)		122.1
Other non-operating expenses	1.3		—		—		1.3
Total expenses	1,376.1		148.8		(26.8)		1,498.1
Other loss
Net investment loss of Consolidated Funds	—		(38.9)		—		(38.9)
Loss before provision for income taxes	(123.3)		(23.2)		29.4		(117.1)
Benefit for income taxes	54.7		—		—		54.7
Net loss	(178.0)		(23.2)		29.4		(171.8)
Net loss attributable to non-controlling interests in consolidated entities	(7.4)		—		6.2		(1.2)
Net loss attributable to The Carlyle Group Inc.	$	(170.6)	$	(23.2)	$	23.2	$	(170.6)

	Three Months Ended September 30, 2019
	Consolidated Operating Entities		Consolidated Funds		Eliminations		Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	364.8	$	—	$	(5.3)	$	359.5
Incentive fees	9.9		—		—		9.9
Investment income
Performance allocations	112.4		—		—		112.4
Principal investment income	215.6		—		(3.4)		212.2
Total investment income	328.0		—		(3.4)		324.6
Interest and other income	29.9		—		(6.6)		23.3
Interest and other income of Consolidated Funds	—		51.3		—		51.3
Total revenues	732.6		51.3		(15.3)		768.6
Expenses
Compensation and benefits
Cash-based compensation and benefits	200.0		—		—		200.0
Equity-based compensation	36.6		—		—		36.6
Performance allocations and incentive fee related compensation	92.6		—		—		92.6
Total compensation and benefits	329.2		—		—		329.2
General, administrative and other expenses	121.7		—		—		121.7
Interest	20.0		—		—		20.0
Interest and other expenses of Consolidated Funds	—		44.1		(10.0)		34.1
Other non-operating expenses	0.3		—		—		0.3
Total expenses	471.2		44.1		(10.0)		505.3
Other income
Net investment losses of Consolidated Funds	—		(1.9)		—		(1.9)
Income before provision for income taxes	261.4		5.3		(5.3)		261.4
Provision for income taxes	9.4		—		—		9.4
Net income	252.0		5.3		(5.3)		252.0
Net income attributable to non-controlling interests in consolidated entities	10.5		—		—		10.5
Net income attributable to Carlyle Holdings	241.5		5.3		(5.3)		241.5
Net income attributable to non-controlling interests in Carlyle Holdings	149.3		—		—		149.3
Net income attributable to The Carlyle Group Inc.	92.2		5.3		(5.3)		92.2
Net income attributable to Series A Preferred Unitholders	7.3		—		—		7.3
Series A Preferred Units redemption premium	16.5		—		—		16.5
Net income attributable to The Carlyle Group Inc. Common Stockholders	$	68.4	$	5.3	$	(5.3)	$	68.4

	Nine Months Ended September 30, 2019
	Consolidated Operating Entities		Consolidated Funds		Eliminations		Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	1,119.9	$	—	$	(16.1)	$	1,103.8
Incentive fees	26.8		—		—		26.8
Investment income
Performance allocations	709.1		—		—		709.1
Principal investment income	851.4		—		4.6		856.0
Total investment income	1,560.5		—		4.6		1,565.1
Interest and other income	91.7		—		(20.2)		71.5
Interest and other income of Consolidated Funds	—		149.5		—		149.5
Total revenues	2,798.9		149.5		(31.7)		2,916.7
Expenses
Compensation and benefits
Cash-based compensation and benefits	631.9		—		—		631.9
Equity-based compensation	107.8		—		—		107.8
Performance allocations and incentive fee related compensation	391.6		—		—		391.6
Total compensation and benefits	1,131.3		—		—		1,131.3
General, administrative and other expenses	344.9		—		—		344.9
Interest	59.2		—		—		59.2
Interest and other expenses of Consolidated Funds	—		124.6		(24.9)		99.7
Other non-operating expenses	1.0		—		—		1.0
Total expenses	1,536.4		124.6		(24.9)		1,636.1
Other income
Net investment losses of Consolidated Funds	—		(6.9)		—		(6.9)
Income before provision for income taxes	1,262.5		18.0		(6.8)		1,273.7
Provision for income taxes	48.9		—		—		48.9
Net income	1,213.6		18.0		(6.8)		1,224.8
Net income attributable to non-controlling interests in consolidated entities	34.6		—		11.2		45.8
Net income attributable to Carlyle Holdings	1,179.0		18.0		(18.0)		1,179.0
Net income attributable to non-controlling interests in Carlyle Holdings	789.8		—		—		789.8
Net income attributable to The Carlyle Group Inc.	389.2		18.0		(18.0)		389.2
Net income attributable to Series A Preferred Unitholders	19.1		—		—		19.1
Series A Preferred Units redemption premium	16.5		—		—		16.5
Net income attributable to The Carlyle Group Inc. Common Stockholders	$	353.6	$	18.0	$	(18.0)	$	353.6

	Nine Months Ended September 30,
	2020		2019
	(Dollars in millions)
Cash flows from operating activities
Net income (loss)	$	(178.0)	$	1,213.6
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	38.9		44.9
Equity-based compensation	78.3		107.8
Non-cash performance allocations and incentive fees	(239.6)		(242.1)
Non-cash principal investment (income) loss	694.8		(762.3)
Other non-cash amounts	(3.5)		8.0
Purchases of investments	(250.6)		(234.7)
Payment of purchase price adjustment in Fortitude Re	(79.6)		—
Proceeds from the sale of investments	258.3		337.1
Change in deferred taxes, net	4.7		21.6
Change in due from affiliates and other receivables	(8.7)		58.5
Change in deposits and other	(1.3)		(6.3)
Change in accounts payable, accrued expenses and other liabilities	(57.5)		(64.6)
Change in accrued compensation and benefits	73.0		99.3
Change in due to affiliates	(31.5)		0.3
Change in lease right-of-use asset and lease liability	(6.7)		(17.1)
Change in deferred revenue	200.3		203.9
Net cash provided by operating activities	491.3		767.9
Cash flows from investing activities
Purchases of fixed assets, net	(37.3)		(17.5)
Net cash used in investing activities	(37.3)		(17.5)
Cash flows from financing activities
Borrowings under credit facilities	287.1		42.3
Repayments under credit facilities	(300.6)		(17.0)
Issuance of 3.500% senior notes due 2029, net of financing costs	—		421.6
Repayment of term loan	—		(25.0)
Payments on debt obligations	(2.7)		(44.9)
Proceeds from debt obligations, net of financing costs	20.5		40.9
Payments of contingent consideration	(0.3)		(0.2)
Dividends to common stockholders	(262.9)		(118.4)
Distributions to preferred unitholders	—		(17.7)
Distributions to non-controlling interest holders in Carlyle Holdings	—		(242.3)
Payment of deferred consideration for Carlyle Holdings units	(68.8)		—
Contributions from non-controlling interest holders	24.2		24.7
Distributions to non-controlling interest holders	(52.5)		(42.9)
Common shares repurchased	(26.4)		(34.5)
Change in due to/from affiliates financing activities	40.9		147.1
Net cash provided by (used in) financing activities	(341.5)		133.7
Effect of foreign exchange rate changes	(1.7)		(16.6)
Increase in cash, cash equivalents and restricted cash	110.8		867.5
Cash, cash equivalents and restricted cash, beginning of period	828.0		638.3
Cash, cash equivalents and restricted cash, end of period	$	938.8	$	1,505.8
Reconciliation of cash, cash equivalents and restricted cash, end of period:
Cash and cash equivalents	$	938.4	$	1,489.8
Restricted cash	0.4		16.0
Total cash, cash equivalents and restricted cash, end of period	$	938.8	$	1,505.8
Cash and cash equivalents held at Consolidated Funds	$	377.8	$	124.1