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SEGMENT REPORTING (Tables)
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Schedule of financial results for Company's operating segments, as well as the OMG
The following table presents the financial results for the Company’s operating segments, as well as the OMG, for the year ended December 31, 2018:
 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Management fees (Credit Group includes ARCC Part I Fees of $128,805)
$
564,899

 
$
198,182

 
$
73,663

 
$
836,744

 
$

 
$
836,744

Other fees
23,247

 
1,008

 
33

 
24,288

 

 
24,288

Compensation and benefits
(216,843
)
 
(74,672
)
 
(38,623
)
 
(330,138
)
 
(126,117
)
 
(456,255
)
General, administrative and other expenses
(43,934
)
 
(18,482
)
 
(11,123
)
 
(73,539
)
 
(75,926
)
 
(149,465
)
Fee related earnings
327,369


106,036


23,950

 
457,355

 
(202,043
)
 
255,312

Performance income—realized
121,270

 
139,820

 
96,117

 
357,207

 

 
357,207

Performance related compensation—realized
(75,541
)
 
(111,764
)
 
(64,292
)
 
(251,597
)
 

 
(251,597
)
Realized net performance income
45,729


28,056


31,825

 
105,610

 

 
105,610

Investment income—realized
2,492

 
17,816

 
11,409

 
31,717

 
4,790

 
36,507

Interest and other investment income—realized
10,350

 
4,624

 
2,257

 
17,231

 
2,184

 
19,415

Interest expense
(11,386
)
 
(6,000
)
 
(1,836
)
 
(19,222
)
 
(2,226
)
 
(21,448
)
Realized net investment income
1,456


16,440


11,830

 
29,726

 
4,748

 
34,474

Realized income
$
374,554

 
$
150,532

 
$
67,605

 
$
592,691

 
$
(197,295
)
 
$
395,396

Total assets
$
729,930

 
$
942,928

 
$
469,595

 
$
2,142,453

 
$
65,961

 
$
2,208,414


The following table presents the financial results for the Company’s operating segments, as well as the OMG, for the year ended December 31, 2017:

 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Management fees (Credit Group includes ARCC Part I Fees of $105,467)
$
481,466

 
$
198,498

 
$
64,861

 
$
744,825

 
$

 
$
744,825

Other fees
20,830

 
1,495

 
106

 
22,431

 

 
22,431

Compensation and benefits
(193,347
)
 
(68,569
)
 
(39,586
)
 
(301,502
)
 
(112,233
)
 
(413,735
)
General, administrative and other expenses
(33,626
)
 
(17,561
)
 
(10,519
)
 
(61,706
)
 
(74,825
)
 
(136,531
)
Fee related earnings
275,323


113,863


14,862


404,048


(187,058
)

216,990

Performance income—realized
21,087

 
287,092

 
9,608

 
317,787

 

 
317,787

Performance related compensation—realized
(9,218
)
 
(228,774
)
 
(4,338
)
 
(242,330
)
 

 
(242,330
)
Realized net performance income
11,869


58,318


5,270


75,457




75,457

Investment income—realized
7,102

 
22,625

 
5,534

 
35,261

 
3,880

 
39,141

Interest and other investment income—realized
10,192

 
3,226

 
511

 
13,929

 
1,142

 
15,071

Interest expense
(12,405
)
 
(5,218
)
 
(1,650
)
 
(19,273
)
 
(1,946
)
 
(21,219
)
Realized net investment income
4,889


20,633


4,395


29,917


3,076


32,993

Realized income
$
292,081

 
$
192,814

 
$
24,527

 
$
509,422

 
$
(183,982
)
 
$
325,440

Total assets
$
837,562

 
$
1,255,454

 
$
306,463

 
$
2,399,479

 
$
119,702

 
$
2,519,181

The following table presents the financial results for the Company’s operating segments, as well as the OMG, for the year ended December 31, 2016:
 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Management fees (Credit Group includes ARCC Part I Fees of $121,181)
$
444,664

 
$
147,790

 
$
66,997

 
$
659,451

 
$

 
$
659,451

Other fees
9,953

 
1,544

 
854

 
12,351

 

 
12,351

Compensation and benefits
(184,571
)
 
(61,276
)
 
(41,091
)
 
(286,938
)
 
(97,777
)
 
(384,715
)
General, administrative and other expenses
(29,136
)
 
(14,679
)
 
(10,603
)
 
(54,418
)
 
(60,319
)
 
(114,737
)
Fee related earnings
240,910


73,379


16,157


330,446


(158,096
)

172,350

Performance income—realized
51,435

 
230,162

 
11,401

 
292,998

 

 
292,998

Performance related compensation—realized
(11,772
)
 
(184,072
)
 
(2,420
)
 
(198,264
)
 

 
(198,264
)
Realized net performance income
39,663


46,090


8,981


94,734




94,734

Investment income (loss)—realized
4,928

 
18,773

 
931

 
24,632

 
(14,606
)
 
10,026

Interest and other investment income—realized
22,547

 
16,891

 
1,598

 
41,036

 
163

 
41,199

Interest expense
(8,609
)
 
(5,589
)
 
(1,056
)
 
(15,254
)
 
(2,727
)
 
(17,981
)
Realized net investment income (loss)
18,866


30,075


1,473


50,414


(17,170
)

33,244

Realized income
$
299,439

 
$
149,544

 
$
26,611

 
$
475,594

 
$
(175,266
)
 
$
300,328

Total assets
$
650,435

 
$
1,218,412

 
$
232,862

 
$
2,101,709

 
$
74,383

 
$
2,176,092


Schedule of segment’ revenue, expenses and other income (expense)
The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income:
 
For the Year Ended December 31,
 
2018
 
2017
 
2016
Segment Revenues
 
 
 
 
 
Management fees (includes ARCC Part I Fees of $128,805, $105,467 and $121,181 for the years ended December 31, 2018, 2017 and 2016, respectively)
$
836,744

 
$
744,825

 
$
659,451

Other fees
24,288

 
22,431

 
12,351

Performance income—realized
357,207

 
317,787

 
292,998

Total segment revenues
$
1,218,239

 
$
1,085,043

 
$
964,800

Segment Expenses
 
 
 
 
 
Compensation and benefits
$
330,138

 
$
301,502

 
$
286,938

General, administrative and other expenses
73,539

 
61,706

 
54,418

Performance related compensation—realized
251,597

 
242,330

 
198,264

Total segment expenses
$
655,274

 
$
605,538

 
$
539,620

Segment Realized Net Investment Income
 
 
 
 
 
Investment income—realized
$
31,717

 
$
35,261

 
$
24,632

Interest and other investment income—realized
17,231

 
13,929

 
41,036

Interest expense
(19,222
)
 
(19,273
)
 
(15,254
)
Total segment realized net investment income
$
29,726

 
$
29,917

 
$
50,414

Schedule of segment revenues components
The following table reconciles the Company's consolidated revenues to segment revenue:
 
For the Year Ended December 31,
 
2018
 
2017
 
2016
Total consolidated revenue
$
958,461

 
$
1,479,943

 
$
1,254,373

Performance income—unrealized
247,212

 
(325,915
)
 
(228,472
)
Management fees of Consolidated Funds eliminated in consolidation
34,242

 
22,406

 
17,383

Carried interest allocation of Consolidated Funds eliminated in consolidation

 
1,017

 
(2,926
)
Incentive fees of Consolidated Funds eliminated in consolidation
4,000

 
4,075

 
4,065

Principal investment income of Consolidated Funds eliminated in consolidation
2,502

 
24,587

 
(4,760
)
Administrative fees(1)
(27,380
)
 
(34,049
)
 
(26,934
)
Performance income reclass(2)
205

 
1,936

 
2,479

Principal investment income
(1,047
)
 
(89,031
)
 
(50,408
)
Revenue of non-controlling interests in consolidated
subsidiaries(3)
44

 
74

 

Total consolidation adjustments and reconciling items
259,778

 
(394,900
)
 
(289,573
)
Total segment revenue
$
1,218,239


$
1,085,043

 
$
964,800

 
(1)
Represents administrative fees that are presented in administrative, transaction and other fees in the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.
(2)
Related to performance income for AREA Sponsor Holdings LLC, an investment pool. Changes in value of this investment are reflected within net realized and unrealized gain (loss) on investments in the Company’s Consolidated Statements of Operations.
(3)
Adjustments for administrative fees reimbursed attributable to certain of our joint venture partners.
Schedule of segment expenses components
The following table reconciles the Company's consolidated expenses to segment expenses:
 
For the Year Ended December 31,
 
2018
 
2017
 
2016
Total consolidated expenses
$
870,362

 
$
1,504,758

 
$
1,016,420

Performance related compensation—unrealized
221,343

 
(237,392
)
 
(189,582
)
Expenses of Consolidated Funds added in consolidation
(92,006
)
 
(65,501
)
 
(42,520
)
Expenses of Consolidated Funds eliminated in consolidation
38,242

 
26,481

 
21,447

Administrative fees(1)
(27,380
)
 
(34,049
)
 
(26,934
)
OMG expenses
(202,043
)
 
(187,058
)
 
(158,096
)
Acquisition and merger-related expenses
(2,936
)
 
(280,055
)
 
(773
)
Equity compensation expense
(89,724
)
 
(69,711
)
 
(39,065
)
Placement fees and underwriting costs
(20,343
)
 
(19,765
)
 
(6,424
)
Amortization of intangibles
(9,032
)
 
(17,850
)
 
(26,638
)
Depreciation expense
(16,055
)
 
(12,631
)
 
(8,215
)
Other expenses(2)
(11,836
)
 

 

Expenses of non-controlling interests in consolidated subsidiaries(3)
(3,318
)
 
(1,689
)
 

Total consolidation adjustments and reconciling items
(215,088
)
 
(899,220
)
 
(476,800
)
Total segment expenses
$
655,274


$
605,538

 
$
539,620

 
(1)
Represents administrative fees that are presented in administrative, transaction and other fees in the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.
(2)
Year ended December 31, 2018 includes an $11.8 million payment made to ARCC for rent and utilities for the years ended 2017, 2016, 2015 and 2014, and the first quarter of 2018.
(3)
Costs being borne by certain of our joint venture partners.
Schedule of segment other income (expense) components
The following table reconciles the Company's consolidated other income to segment realized net investment income:
 
For the Year Ended December 31,
 
2018
 
2017
 
2016
Total consolidated other income
$
96,242

 
$
174,674

 
$
59,967

Investment (income) loss—unrealized
49,241

 
(46,860
)
 
(16,653
)
Interest and other investment (income) loss—unrealized
233

 
1,868

 
(3,323
)
Other income from Consolidated Funds added in consolidation, net
(114,286
)
 
(154,869
)
 
(37,388
)
Other (income) expense from Consolidated Funds eliminated in consolidation, net
(865
)
 
1,059

 
(96
)
OMG other expense
(3,315
)
 
(11,828
)
 
19,381

Performance income reclass(1)
(205
)
 
(1,936
)
 
(2,479
)
Principal investment income
1,047

 
89,031

 
50,408

Change in value of contingent consideration

 
(20,156
)
 
(17,675
)
Other (income) expense
1,653

 
(1,042
)
 
(1,728
)
Other income of non-controlling interests in consolidated subsidiaries(2)
(19
)
 
(24
)
 

Total consolidation adjustments and reconciling items
(66,516
)
 
(144,757
)
 
(9,553
)
Total segment realized net investment income

$
29,726


$
29,917

 
$
50,414

 
(1)
Related to performance income for AREA Sponsor Holdings LLC. Changes in value of this investment are reflected within net realized and unrealized gain (loss) on investments in the Company’s Consolidated Statements of Operations.
(2)
Costs being borne by certain of our joint venture partners.

Reconciliation of segment results to the Company's income before taxes and total assets
The following table presents the reconciliation of income before taxes as reported in the Consolidated Statements of Operations to segment results of RI and FRE:
 
For the Year Ended December 31,
 
2018
 
2017
 
2016
Income before taxes
$
184,341

 
$
149,859

 
$
297,920

Adjustments:
 
 
 
 
 
Amortization of intangibles
9,032

 
17,850

 
26,638

Depreciation expense
16,055

 
12,631

 
8,215

Equity compensation expenses
89,724

 
69,711

 
39,065

Acquisition and merger-related expenses
2,936

 
259,899

 
(16,902
)
Placement fees and underwriting costs
20,343

 
19,765

 
6,424

OMG expenses, net
198,728

 
175,230

 
177,477

Other (income) expense(1)
13,489

 
(1,042
)
 
(1,728
)
Expense of non-controlling interests in consolidated subsidiaries(2)
3,343

 
1,739

 

Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations
(20,643
)
 
(62,705
)
 
(2,649
)
Total performance (income) loss - unrealized
247,212

 
(325,915
)
 
(228,472
)
Total performance related compensation - unrealized
(221,343
)
 
237,392

 
189,582

Total net investment (income) loss - unrealized
49,474

 
(44,992
)
 
(19,976
)
Realized income
592,691

 
509,422

 
475,594

Total performance income - realized
(357,207
)
 
(317,787
)
 
(292,998
)
Total performance related compensation - realized
251,597

 
242,330

 
198,264

Total net investment income - realized
(29,726
)
 
(29,917
)
 
(50,414
)
Fee related earnings
$
457,355

 
$
404,048

 
$
330,446

 
(1)
Year ended December 31, 2018 expenses include an $11.8 million payment made to ARCC for rent and utilities for the years ended 2017, 2016, 2015 and 2014, and the first quarter of 2018. 
(2)
Adjustments for administrative fees reimbursed and other revenue items attributable to certain of our joint venture partners.
Schedule of reconciliation of total segment assets to total assets reported in the Consolidated Statements of Financial Condition
The reconciliation of total assets reported in the Consolidated Statements of Financial Condition to total segment assets consists of the following:
 
For the Year Ended December 31,
 
2018
 
2017
 
2016
Total consolidated assets
$
10,154,692

 
$
8,563,522

 
$
5,829,712

Total assets from Consolidated Funds added in consolidation
(8,141,280
)
 
(6,231,245
)
 
(3,822,010
)
Total assets from the Company eliminated in consolidation
195,002

 
186,904

 
168,390

OMG assets
(65,961
)
 
(119,702
)
 
(74,383
)
Total consolidation adjustments and reconciling items
(8,012,239
)
 
(6,164,043
)
 
(3,728,003
)
Total segment assets
$
2,142,453

 
$
2,399,479

 
$
2,101,709