Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Reportable segments financial data

The following table presents the financial data for the Partnership’s four reportable segments for the three months and six months ended June 30, 2017:

	Three Months Ended June 30, 2017
	Corporate Private Equity		Real Assets			Global Market Strategies			Investment Solutions			Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	117.7	$	58.2		$	45.1		$	36.2		$	257.2
Portfolio advisory fees, net	4.5		0.1			0.3			—			4.9
Transaction fees, net	1.2		—			—			—			1.2
Total fund level fee revenues	123.4		58.3			45.4			36.2			263.3
Performance fees
Realized	272.1		39.7			17.2			23.7			352.7
Unrealized	142.9		60.6			(1.6		)	4.7			206.6
Total performance fees	415.0		100.3			15.6			28.4			559.3
Investment income (loss)
Realized	8.9		0.3			1.5			(0.1		)	10.6
Unrealized	13.3		6.8			0.1			0.4			20.6
Total investment income (loss)	22.2		7.1			1.6			0.3			31.2
Interest income	0.8		0.4			1.0			0.2			2.4
Other income	1.3		0.3			1.1			0.1			2.8
Total revenues	562.7		166.4			64.7			65.2			859.0
Segment Expenses
Compensation and benefits
Direct base compensation	54.7		17.4			15.2			16.1			103.4
Indirect base compensation	18.0		19.9			7.6			4.1			49.6
Equity-based compensation	17.8		9.3			7.5			2.1			36.7
Performance fee related
Realized	121.6		17.4			8.2			23.4			170.6
Unrealized	69.4		19.2			(0.7		)	1.4			89.3
Total compensation and benefits	281.5		83.2			37.8			47.1			449.6
General, administrative, and other indirect expenses	28.4		26.5			21.8			8.7			85.4
Depreciation and amortization expense	3.7		1.6			1.3			0.9			7.5
Interest expense	7.3		4.4			3.2			1.5			16.4
Total expenses	320.9		115.7			64.1			58.2			558.9
Economic Net Income	$	241.8	$	50.7		$	0.6		$	7.0		$	300.1
(-) Net Performance Fees	224.0		63.7			8.1			3.6			299.4
(-) Investment Income	22.2		7.1			1.6			0.3			31.2
(+) Equity-based Compensation	17.8		9.3			7.5			2.1			36.7
(=) Fee Related Earnings	$	13.4	$	(10.8	)	$	(1.6	)	$	5.2		$	6.2
(+) Realized Net Performance Fees	150.5		22.3			9.0			0.3			182.1
(+) Realized Investment Income (Loss)	8.9		0.3			1.5			(0.1		)	10.6
(=) Distributable Earnings	$	172.8	$	11.8		$	8.9		$	5.4		$	198.9

	June 30, 2017 and the Six Months Then Ended
	Corporate Private Equity		Real Assets			Global Market Strategies		Investment Solutions		Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	233.4	$	114.2		$	93.2	$	72.0	$	512.8
Portfolio advisory fees, net	8.3		0.2			0.4		—		8.9
Transaction fees, net	8.9		—			—		—		8.9
Total fund level fee revenues	250.6		114.4			93.6		72.0		530.6
Performance fees
Realized	323.4		53.2			22.8		36.3		435.7
Unrealized	658.2		139.3			12.9		27.9		838.3
Total performance fees	981.6		192.5			35.7		64.2		1,274.0
Investment income (loss)
Realized	9.1		(7.8		)	3.9		—		5.2
Unrealized	18.8		12.0			4.3		1.5		36.6
Total investment income (loss)	27.9		4.2			8.2		1.5		41.8
Interest income	1.9		1.0			2.6		0.3		5.8
Other income	2.6		0.7			4.5		0.2		8.0
Total revenues	1,264.6		312.8			144.6		138.2		1,860.2
Segment Expenses
Compensation and benefits
Direct base compensation	110.1		37.1			32.3		32.2		211.7
Indirect base compensation	36.7		30.8			14.2		6.9		88.6
Equity-based compensation	32.8		18.1			11.8		4.1		66.8
Performance fee related
Realized	147.7		24.2			10.9		35.5		218.3
Unrealized	297.2		38.5			6.1		20.4		362.2
Total compensation and benefits	624.5		148.7			75.3		99.1		947.6
General, administrative, and other indirect expenses	63.4		42.1			45.0		15.5		166.0
Depreciation and amortization expense	7.4		3.4			2.5		1.7		15.0
Interest expense	14.1		8.5			5.8		3.0		31.4
Total expenses	709.4		202.7			128.6		119.3		1,160.0
Economic Net Income	$	555.2	$	110.1		$	16.0	$	18.9	$	700.2
(-) Net Performance Fees	536.7		129.8			18.7		8.3		693.5
(-) Investment Income	27.9		4.2			8.2		1.5		41.8
(+) Equity-based Compensation	32.8		18.1			11.8		4.1		66.8
(=) Fee Related Earnings	$	23.4	$	(5.8	)	$	0.9	$	13.2	$	31.7
(+) Realized Net Performance Fees	175.7		29.0			11.9		0.8		217.4
(+) Realized Investment Income (Loss)	9.1		(7.8		)	3.9		—		5.2
(=) Distributable Earnings	$	208.2	$	15.4		$	16.7	$	14.0	$	254.3
Segment assets as of June 30, 2017	$	3,153.5	$	1,697.8		$	892.8	$	928.5	$	6,672.6

The following table presents the financial data for the Partnership’s four reportable segments for the three months and six months ended June 30, 2016:

	Three Months Ended June 30, 2016
	Corporate Private Equity			Real Assets			Global Market Strategies		Investment Solutions		Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	126.8		$	66.5		$	52.2	$	34.2	$	279.7
Portfolio advisory fees, net	5.2			0.1			0.5		—		5.8
Transaction fees, net	2.6			—			—		—		2.6
Total fund level fee revenues	134.6			66.6			52.7		34.2		288.1
Performance fees
Realized	337.9			58.8			5.4		4.2		406.3
Unrealized	(278.9		)	66.1			1.8		15.0		(196.0		)
Total performance fees	59.0			124.9			7.2		19.2		210.3
Investment income (loss)
Realized	18.0			(9.5		)	0.8		—		9.3
Unrealized	3.0			6.7			9.9		—		19.6
Total investment income (loss)	21.0			(2.8		)	10.7		—		28.9
Interest income	0.9			0.4			1.1		0.1		2.5
Other income	1.2			0.2			1.2		0.1		2.7
Total revenues	216.7			189.3			72.9		53.6		532.5
Segment Expenses
Compensation and benefits
Direct base compensation	53.3			18.0			22.2		15.0		108.5
Indirect base compensation	18.2			10.1			7.0		3.1		38.4
Equity-based compensation	18.4			7.0			4.4		1.1		30.9
Performance fee related
Realized	143.3			25.3			0.7		3.7		173.0
Unrealized	(117.4		)	26.1			2.0		11.2		(78.1		)
Total compensation and benefits	115.8			86.5			36.3		34.1		272.7
General, administrative, and other indirect expenses	32.0			18.6			20.2		7.9		78.7
Depreciation and amortization expense	3.4			1.5			1.6		0.8		7.3
Interest expense	7.3			4.0			2.8		1.4		15.5
Total expenses	158.5			110.6			60.9		44.2		374.2
Economic Net Income	$	58.2		$	78.7		$	12.0	$	9.4	$	158.3
(-) Net Performance Fees	33.1			73.5			4.5		4.3		115.4
(-) Investment Income (Loss)	21.0			(2.8		)	10.7		—		28.9
(+) Equity-based Compensation	18.4			7.0			4.4		1.1		30.9
(=) Fee Related Earnings	$	22.5		$	15.0		$	1.2	$	6.2	$	44.9
(+) Realized Net Performance Fees	194.6			33.5			4.7		0.5		233.3
(+) Realized Investment Income (Loss)	18.0			(9.5		)	0.8		—		9.3
(=) Distributable Earnings	$	235.1		$	39.0		$	6.7	$	6.7	$	287.5

	Six Months Ended June 30, 2016
	Corporate Private Equity			Real Assets			Global Market Strategies		Investment Solutions			Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	254.0		$	131.7		$	103.3	$	70.6		$	559.6
Portfolio advisory fees, net	8.3			0.1			0.6		—			9.0
Transaction fees, net	22.9			—			—		—			22.9
Total fund level fee revenues	285.2			131.8			103.9		70.6			591.5
Performance fees
Realized	464.1			60.6			7.2		6.4			538.3
Unrealized	(372.0		)	163.8			1.5		26.7			(180.0		)
Total performance fees	92.1			224.4			8.7		33.1			358.3
Investment income (loss)
Realized	22.5			(7.3		)	1.6		—			16.8
Unrealized	(3.1		)	2.0			7.8		(1.0		)	5.7
Total investment income (loss)	19.4			(5.3		)	9.4		(1.0		)	22.5
Interest income	1.8			0.9			2.6		0.2			5.5
Other income	2.7			0.6			2.3		0.2			5.8
Total revenues	401.2			352.4			126.9		103.1			983.6
Segment Expenses
Compensation and benefits
Direct base compensation	113.1			38.2			45.4		33.6			230.3
Indirect base compensation	37.8			19.3			15.2		5.9			78.2
Equity-based compensation	36.2			13.2			9.4		3.5			62.3
Performance fee related
Realized	201.9			26.1			1.5		5.4			234.9
Unrealized	(162.1		)	70.9			0.9		23.0			(67.3		)
Total compensation and benefits	226.9			167.7			72.4		71.4			538.4
General, administrative, and other indirect expenses	62.9			33.5			39.4		17.3			153.1
Depreciation and amortization expense	6.8			3.0			3.1		1.7			14.6
Interest expense	14.2			8.0			5.5		3.0			30.7
Total expenses	310.8			212.2			120.4		93.4			736.8
Economic Net Income	$	90.4		$	140.2		$	6.5	$	9.7		$	246.8
(-) Net Performance Fees	52.3			127.4			6.3		4.7			190.7
(-) Investment Income (Loss)	19.4			(5.3		)	9.4		(1.0		)	22.5
(+) Equity-based Compensation	36.2			13.2			9.4		3.5			62.3
(=) Fee Related Earnings	$	54.9		$	31.3		$	0.2	$	9.5		$	95.9
(+) Realized Net Performance Fees	262.2			34.5			5.7		1.0			303.4
(+) Realized Investment Income (Loss)	22.5			(7.3		)	1.6		—			16.8
(=) Distributable Earnings	$	339.6		$	58.5		$	7.5	$	10.5		$	416.1

Total segments to partnership income before provision for taxes reconciliation

The following table reconciles the Total Segments to the Partnership’s Income Before Provision for Taxes for the three months ended June 30, 2017 and 2016.

	Three Months Ended June 30, 2017
	Total Reportable Segments		Consolidated Funds			Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	859.0	$	45.0		$	4.4		(a)	$	908.4
Expenses	$	558.9	$	91.9		$	54.6		(b)	$	705.4
Other income	$	—	$	40.7		$	—		(c)	$	40.7
Economic net income	$	300.1	$	(6.2	)	$	(50.2	)	(d)	$	243.7

	Three Months Ended June 30, 2016
	Total Reportable Segments		Consolidated Funds		Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	532.5	$	35.9	$	39.6		(a)	$	608.0
Expenses	$	374.2	$	35.0	$	137.7		(b)	$	546.9
Other income	$	—	$	6.7	$	—		(c)	$	6.7
Economic net income (loss)	$	158.3	$	7.6	$	(98.1	)	(d)	$	67.8

The following table reconciles the Total Segments to the Partnership’s Income Before Provision for Taxes for the six months ended June 30, 2017 and 2016, and Total Assets as of June 30, 2017.

	June 30, 2017 and the Six Months Then Ended
	Total Reportable Segments		Consolidated Funds		Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	1,860.2	$	87.9	$	80.4		(a)	$	2,028.5
Expenses	$	1,160.0	$	144.9	$	210.0		(b)	$	1,514.9
Other income	$	—	$	57.8	$	—		(c)	$	57.8
Economic net income	$	700.2	$	0.8	$	(129.6	)	(d)	$	571.4
Total assets	$	6,672.6	$	4,383.9	$	(200.1	)	(e)	$	10,856.4

	Six Months Ended June 30, 2016
	Total Reportable Segments		Consolidated Funds			Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	983.6	$	64.8		$	42.7		(a)	$	1,091.1
Expenses	$	736.8	$	64.7		$	204.8		(b)	$	1,006.3
Other loss	$	—	$	(1.7	)	$	—		(c)	$	(1.7	)
Economic net income (loss)	$	246.8	$	(1.6	)	$	(162.1	)	(d)	$	83.1

(a) The Revenues adjustment principally represents fund management and performance fees earned from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’s total revenues, adjustments for amounts attributable to non-controlling interests in consolidated entities, adjustments related to expenses associated with the investments in NGP Management and its affiliates that are included in operating captions or are excluded from the segment results, adjustments to reflect the Partnership’s share of Urbplan’s net losses as a component of investment income, the inclusion of tax expenses associated with certain performance fees, and adjustments to reflect the Partnership’s ownership interests in Claren Road (through January 2017) and ESG (through June 2016) that were included in Revenues in the Partnership’s segment reporting.

(b) The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the Partnership, the inclusion of certain tax expenses associated with performance fee compensation, adjustments related to expenses associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the Partnership’s share of Urbplan’s net losses as a component of investment income, changes in the tax receivable agreement liability, charges and credits associated with Carlyle corporate actions and non-recurring items and adjustments to reflect the Partnership’s economic interests in Claren Road (through January 2017) and ESG (through June 2016), as detailed below (Dollars in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments	$	58.5		$	79.3		$	125.5		$	124.7
Acquisition related charges, including amortization of intangibles and impairment	9.2			21.6			18.0			39.3
Other non-operating expense	0.1			0.7			0.1			4.5
Tax expense associated with performance fees	(2.4		)	(10.8		)	(5.3		)	(14.1		)
Non-Carlyle economic interests in acquired businesses and the consolidated real estate VIE	(4.9		)	48.9			82.6			51.3
Severance and other adjustments	7.5			1.4			10.3			8.8
Elimination of expenses of Consolidated Funds	(13.4		)	(3.4		)	(21.2		)	(9.7		)
	$	54.6		$	137.7		$	210.0		$	204.8

(c) The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’s total Other Income (Loss).

(d) The following table is a reconciliation of Income Before Provision for Income Taxes to Economic Net Income, to Fee Related Earnings, and to Distributable Earnings (Dollars in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Income before provision for income taxes	$	243.7		$	67.8		$	571.4		$	83.1
Adjustments:
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments	58.5			79.3			125.5			124.7
Acquisition related charges, including amortization of intangibles and impairment	9.2			21.6			18.0			39.3
Other non-operating expense	0.1			0.7			0.1			4.5
Tax provision associated with performance fees	(2.4		)	(10.8		)	(5.3		)	(14.1		)
Net (income) loss attributable to non-controlling interests in consolidated entities	(16.5		)	(1.6		)	(19.8		)	0.7
Severance and other adjustments	7.5			1.3			10.3			8.6
Economic Net Income	$	300.1		$	158.3		$	700.2		$	246.8
Net performance fees(1)	299.4			115.4			693.5			190.7
Investment income (1)	31.2			28.9			41.8			22.5
Equity-based compensation	36.7			30.9			66.8			62.3
Fee Related Earnings	$	6.2		$	44.9		$	31.7		$	95.9
Realized performance fees, net of related compensation	182.1			233.3			217.4			303.4
Realized investment income(1)	10.6			9.3			5.2			16.8
Distributable Earnings	$	198.9		$	287.5		$	254.3		$	416.1

(1) See reconciliation to most directly comparable U.S. GAAP measure below:

	Three Months Ended June 30, 2017
	Carlyle Consolidated		Adjustments (2)			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	357.7	$	(5.0	)	$	352.7
Unrealized	185.9		20.7			206.6
Total performance fees	543.6		15.7			559.3
Performance fee related compensation expense
Realized	166.7		3.9			170.6
Unrealized	90.4		(1.1		)	89.3
Total performance fee related compensation expense	257.1		2.8			259.9
Net performance fees
Realized	191.0		(8.9		)	182.1
Unrealized	95.5		21.8			117.3
Total net performance fees	$	286.5	$	12.9		$	299.4
Investment income (loss)
Realized	$	26.7	$	(16.1	)	$	10.6
Unrealized	32.3		(11.7		)	20.6
Investment income (loss)	$	59.0	$	(27.8	)	$	31.2

	Three Months Ended June 30, 2016
	Carlyle Consolidated			Adjustments (2)			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	389.9		$	16.4		$	406.3
Unrealized	(179.0		)	(17.0		)	(196.0		)
Total performance fees	210.9			(0.6		)	210.3
Performance fee related compensation expense
Realized	172.4			0.6			173.0
Unrealized	(75.9		)	(2.2		)	(78.1		)
Total performance fee related compensation expense	96.5			(1.6		)	94.9
Net performance fees
Realized	217.5			15.8			233.3
Unrealized	(103.1		)	(14.8		)	(117.9		)
Total net performance fees	$	114.4		$	1.0		$	115.4
Investment income (loss)
Realized	$	38.9		$	(29.6	)	$	9.3
Unrealized	26.4			(6.8		)	19.6
Total investment income (loss)	$	65.3		$	(36.4	)	$	28.9

	Six Months Ended June 30, 2017
	Carlyle Consolidated		Adjustments (2)			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	440.9	$	(5.2	)	$	435.7
Unrealized	784.3		54.0			838.3
Total performance fees	1,225.2		48.8			1,274.0
Performance fee related compensation expense
Realized	212.5		5.8			218.3
Unrealized	361.7		0.5			362.2
Total performance fee related compensation expense	574.2		6.3			580.5
Net performance fees
Realized	228.4		(11.0		)	217.4
Unrealized	422.6		53.5			476.1
Total net performance fees	$	651.0	$	42.5		$	693.5
Investment income (loss)
Realized	$	26.5	$	(21.3	)	$	5.2
Unrealized	78.8		(42.2		)	36.6
Investment income (loss)	$	105.3	$	(63.5	)	$	41.8

	Six Months Ended June 30, 2016
	Carlyle Consolidated			Adjustments (2)			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	521.7		$	16.6		$	538.3
Unrealized	(165.6		)	(14.4		)	(180.0		)
Total performance fees	356.1			2.2			358.3
Performance fee related compensation expense
Realized	234.0			0.9			234.9
Unrealized	(68.0		)	0.7			(67.3		)
Total performance fee related compensation expense	166.0			1.6			167.6
Net performance fees
Realized	287.7			15.7			303.4
Unrealized	(97.6		)	(15.1		)	(112.7		)
Total net performance fees	$	190.1		$	0.6		$	190.7
Investment income (loss)
Realized	$	51.5		$	(34.7	)	$	16.8
Unrealized	4.2			1.5			5.7
Total investment income (loss)	$	55.7		$	(33.2	)	$	22.5

(2) Adjustments to performance fees and investment income (loss) relate to (i) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the segment results, (ii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the segment results, (iii) the reclassification of NGP performance fees, which are included in investment income in U.S. GAAP financial statements, and (iv) the reclassification of certain tax expenses associated with performance fees. Adjustments to investment income (loss) also include the reclassification of earnings for the investments in NGP Management and its affiliates to the appropriate operating captions for the segment results, the exclusion of charges associated with the investment in NGP Management and its affiliates that are excluded from the segment results, and adjustments to reflect the Partnership’s share of Urbplan’s net losses as investment losses for the segment results. Adjustments are also included in these financial statement captions to reflect the Partnership’s economic interests in Claren Road (through January 2017) and ESG (through June 2016).

(e) The Total Assets adjustment represents the addition of the assets of the Consolidated Funds that were eliminated in consolidation to arrive at the Partnership’s total assets.