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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Adjusted Net Income


		Three Months Ended June 30,								Six Months Ended June 30,
		2012				2011				2012				2011
Revenues:
Management fees		$	188,843			$	179,412			$	380,105			$	364,671
Incentive income			129,018				107,320				191,687				238,209
Investment income			23,241				13,546				87,581				66,563

Total revenues			341,102				300,278				659,373				669,443

Expenses:
Compensation and benefits			(80,303	)			(83,907	)			(164,707	)			(162,219	)
Incentive income compensation expense			(60,965	)			(41,229	)			(88,722	)			(94,995	)
General, administrative and other expenses			(26,327	)			(26,380	)			(52,908	)			(46,630	)

Total expenses			(167,595	)			(151,516	)			(306,337	)			(303,844	)

Adjusted net income before interest and other income (expense)			173,507				148,762				353,036				365,599
Interest expense, net of interest income			(8,063	)			(8,584	)			(16,227	)			(17,304	)
Other income (expense), net			66				844				2,333				81

Adjusted net income		$	165,510			$	141,022			$	339,142			$	348,376

Reconciliation of net income (loss) attributable to Oaktree Capital Group, LLC to ANI


		Three Months Ended June 30,								Six Months Ended June 30,
		2012				2011				2012				2011
Net income (loss) attributable to Oaktree Capital Group, LLC		$	24,719			$	(20,359	)		$	43,327			$	(30,486	)
Compensation expense for vesting of OCGH units ⁽¹⁾			7,795				235,393				19,984				472,550
Income taxes ⁽²⁾			13,925				7,582				21,692				14,592
Non-Operating Group other income⁽³⁾			(6,260	)			—				(6,260	)			—
Non-Operating Group expenses ⁽⁴⁾			100				257				278				441
OCGH non-controlling interest ⁽⁵⁾			125,231				(81,851	)			260,121				(108,721	)

Adjusted net income		$	165,510			$	141,022			$	339,142			$	348,376

(1)

This adjustment adds back the effect of compensation expenses for vesting of OCGH units issued prior to the date of our initial public offering, which is excluded from adjusted net income because it is a non-cash charge that does not affect our financial position. We expect that adjusted net income will include non-cash equity compensation charges related to unit grants made after our initial public offering as they have a dilutive effect.

(2)	Because adjusted net income is a pre-tax measure, this adjustment eliminates the effect of income tax expense from adjusted net income.

(3)	Because adjusted net income is calculated at the Operating Group level, this adjustment adds back the effect of other income of OCG or its Intermediate Holding Companies.

(4)	Because adjusted net income is calculated at the Operating Group level, this adjustment adds back the effect of expenses that OCG or its Intermediate Holding Companies bear directly.

(5)	Because adjusted net income is calculated at the Operating Group level, this adjustment adds back the effect of the net income or loss attributable to OCGH non-controlling interest.

Schedule of reconciliation of total segments to income loss attributable to Oaktree Capital Group, LLC and total assets


		As of or for the Three Months Ended June 30, 2012
		Segment				Adjustments				Consolidated
Management fees ⁽¹⁾		$	188,843			$	(159,636	)		$	29,207
Incentive income ⁽¹⁾			129,018				(129,018	)			—
Investment income ⁽¹⁾			23,241				(19,536	)			3,705
Total expenses ⁽²⁾			(167,595	)			(39,413	)			(207,008	)
Interest expense, net ⁽³⁾			(8,063	)			(3,797	)			(11,860	)
Other income, net⁽⁴⁾			66				6,260				6,326
Other income of consolidated funds ⁽⁵⁾			—				1,017,178				1,017,178
Income taxes			—				(13,925	)			(13,925	)
Net income attributable to non-controlling redeemable interests in consolidated funds			—				(673,673	)			(673,673	)
Net income attributable to OCGH non-controlling interest in consolidated subsidiaries			—				(125,231	)			(125,231	)

Adjusted net income/net income attributable to Oaktree Capital Group, LLC		$	165,510			$	(140,791	)		$	24,719


Investments in limited partnerships, at equity ⁽⁶⁾		$	1,195,084			$	(1,069,050	)		$	126,034


Total assets ⁽⁷⁾		$	2,194,709			$	42,576,060			$	44,770,769

(1)	The adjustment represents the elimination of amounts attributable to the consolidated funds.

(2)	The expense adjustment consists of: (i) compensation expense for vesting of OCGH units of $7,795, (ii) consolidated fund expenses of $31,518 and (iii) expenses incurred by the Intermediate Holding Companies of $100.

(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 investments in limited partnerships 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 investments in limited partnerships and incentive income receivable.


		As of or for the Three Months Ended June 30, 2011
		Segment				Adjustments				Consolidated
Management fees ⁽¹⁾		$	179,412			$	(147,997	)		$	31,415
Incentive income ⁽¹⁾			107,320				(100,842	)			6,478
Investment income ⁽¹⁾			13,546				(9,203	)			4,343
Total expenses ⁽²⁾			(151,516	)			(269,868	)			(421,384	)
Interest expense, net ⁽³⁾			(8,584	)			(5,000	)			(13,584	)
Other income, net			844				—				844
Other income of consolidated funds ⁽⁴⁾			—				577,178				577,178
Income taxes			—				(7,582	)			(7,582	)
Net income attributable to non-controlling redeemable interests in consolidated funds			—				(279,918	)			(279,918	)
Net income attributable to OCGH non-controlling interest in consolidated subsidiaries			—				81,851				81,851

Adjusted net income/net income attributable to Oaktree Capital Group, LLC		$	141,022			$	(161,381	)		$	(20,359	)


Investments in limited partnerships, at equity ⁽⁵⁾		$	1,123,888			$	(1,040,931	)		$	82,957


Total assets ⁽⁶⁾		$	2,113,527			$	43,240,662			$	45,354,189

(1)	The adjustment represents the elimination of amounts attributable to the consolidated funds.

(2)	The expense adjustment consists of: (i) compensation expense for vesting of OCGH units of $235,393, (ii) consolidated fund expenses of $34,218 and (iii) expenses incurred by the Intermediate Holding Companies of $257.

(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 investments in limited partnerships 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 investments in limited partnerships and incentive income receivable.


		As of or for the Six Months Ended June 30, 2012
		Segment				Adjustments				Consolidated
Management fees ⁽¹⁾		$	380,105			$	(318,878	)		$	61,227
Incentive income ⁽¹⁾			191,687				(186,639	)			5,048
Investment income ⁽¹⁾			87,581				(78,196	)			9,385
Total expenses ⁽²⁾			(306,337	)			(68,238	)			(374,575	)
Interest expense, net ⁽³⁾			(16,227	)			(6,623	)			(22,850	)
Other income, net⁽⁴⁾			2,333				6,260				8,593
Other income of consolidated funds ⁽⁵⁾			—				3,436,757				3,436,757
Income taxes			—				(21,692	)			(21,692	)
Net income attributable to non-controlling redeemable interests in consolidated funds			—				(2,798,445	)			(2,798,445	)
Net loss attributable to OCGH non-controlling interest in consolidated subsidiaries			—				(260,121	)			(260,121	)

Adjusted net income/net income (loss) attributable to Oaktree Capital Group, LLC		$	339,142			$	(295,815	)		$	43,327

Investments in limited partnerships, at equity ⁽⁶⁾		$	1,195,084			$	(1,069,050	)		$	126,034


Total assets ⁽⁷⁾		$	2,194,709			$	42,576,060			$	44,770,769

(1)	The adjustment represents the elimination of amounts attributable to the consolidated funds.

(2)	The expense adjustment consists of: (i) compensation expense for vesting of OCGH units of $19,984, (ii) consolidated fund expenses of $47,976 and (iii) expenses incurred by the Intermediate Holding Companies of $278.

(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 investments in limited partnerships 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 investments in limited partnerships and incentive income receivable.


		As of or for the Six Months Ended June 30, 2011
		Segment				Adjustments				Consolidated
Management fees ⁽¹⁾		$	364,671			$	(294,618	)		$	70,053
Incentive income ⁽¹⁾			238,209				(225,920	)			12,289
Investment income ⁽¹⁾			66,563				(59,525	)			7,038
Total expenses ⁽²⁾			(303,844	)			(528,187	)			(832,031	)
Interest expense, net ⁽³⁾			(17,304	)			(9,171	)			(26,475	)
Other income, net			81				—				81
Other income of consolidated funds ⁽⁴⁾			—				2,750,749				2,750,749
Income taxes			—				(14,592	)			(14,592	)
Net income attributable to non-controlling redeemable interests in consolidated funds			—				(2,106,319	)			(2,106,319	)
Net loss attributable to OCGH non-controlling interest in consolidated subsidiaries			—				108,721				108,721

Adjusted net income/net income (loss) attributable to Oaktree Capital Group, LLC		$	348,376			$	(378,862	)		$	(30,486	)


Investments in limited partnerships, at equity ⁽⁵⁾		$	1,123,888			$	(1,040,931	)		$	82,957


Total assets ⁽⁶⁾		$	2,113,527			$	43,240,662			$	45,354,189

(1)	The adjustment represents the elimination of amounts attributable to the consolidated funds.

(2)	The expense adjustment consists of: (i) compensation expense for vesting of OCGH units of $472,550, (ii) consolidated fund expenses of $55,196 and (iii) expenses incurred by the Intermediate Holding Companies of $441.

(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 investments in limited partnerships 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 investments in limited partnerships and incentive income receivable.