Supplemental Financial Information

3 Months Ended

Mar. 31, 2013

Supplemental Financial Information

19. Supplemental Financial Information

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Partnership’s financial position as of March 31, 2013 and December 31, 2012 and results of operations for the three months ended March 31, 2013 and 2012. The supplemental statement of cash flows is presented without effects of the Consolidated Funds.

	As of March 31, 2013
	Consolidated Operating Entities			Consolidated Funds			Eliminations			Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$	570.4		$	—		$	—		$	570.4
Cash and cash equivalents held at Consolidated Funds		—			2,173.2			—			2,173.2
Restricted cash		43.4			—			—			43.4
Restricted cash and securities of Consolidated Funds		—			17.8			—			17.8
Accrued performance fees		2,622.2			—			(24.0	)		2,598.2
Investments		910.5			—			(54.3	)		856.2
Investments of Consolidated Funds		—			25,093.6			—			25,093.6
Due from affiliates and other receivables, net		159.2			—			(12.6	)		146.6
Due from affiliates and other receivables of Consolidated Funds, net		—			320.7			—			320.7
Fixed assets, net		62.2			—			—			62.2
Deposits and other		49.8			4.6			—			54.4
Intangible assets, net		650.1			—			—			650.1
Deferred tax assets		64.7			—			—			64.7
Total assets	$	5,132.5		$	27,609.9		$	(90.9	)	$	32,651.5
Liabilities and partners’ capital
Loans payable	$	25.0		$	—		$	—		$	25.0
3.875% senior notes due 2023		499.8			—			—			499.8
5.625% senior notes due 2043		398.4			—			—			398.4
Loans payable of Consolidated Funds		—			14,366.6			(53.9	)		14,312.7
Accounts payable, accrued expenses and other liabilities		204.9			—			—			204.9
Accrued compensation and benefits		1,449.3			—			—			1,449.3
Due to affiliates		288.2			44.7			(0.1	)		332.8
Deferred revenue		184.6			1.5			—			186.1
Deferred tax liabilities		70.0			—			—			70.0
Other liabilities of Consolidated Funds		—			1,793.8			(30.1	)		1,763.7
Accrued giveback obligations		55.9			—			(9.6	)		46.3
Total liabilities		3,176.1			16,206.6			(93.7	)		19,289.0
Redeemable non-controlling interests in consolidated entities		6.6			3,297.3			—			3,303.9
Partners’ capital		239.8			(2.9	)		2.9			239.8
Accumulated other comprehensive loss		(4.2	)		—			(1.1	)		(5.3	)
Partners’ capital appropriated for Consolidated Funds		—			564.8			1.0			565.8
Non-controlling interests in consolidated entities		307.2			7,544.1			—			7,851.3
Non-controlling interests in Carlyle Holdings		1,407.0			—			—			1,407.0
Total partners’ capital		1,949.8			8,106.0			2.8			10,058.6
Total liabilities and partners’ capital	$	5,132.5		$	27,609.9		$	(90.9	)	$	32,651.5

	As of December 31, 2012
	Consolidated Operating Entities			Consolidated Funds			Eliminations			Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$	567.1		$	—		$	—		$	567.1
Cash and cash equivalents held at Consolidated Funds		—			1,646.6			—			1,646.6
Restricted cash		34.5			—			—			34.5
Restricted cash and securities of Consolidated Funds		—			36.3			—			36.3
Accrued performance fees		2,204.9			—			(12.4	)		2,192.5
Investments		932.6			—			(51.4	)		881.2
Investments of Consolidated Funds		—			24,815.7			—			24,815.7
Due from affiliates and other receivables, net		201.5			—			(10.8	)		190.7
Due from affiliates and other receivables of Consolidated Funds, net		—			331.8			—			331.8
Fixed assets, net		63.6			—			—			63.6
Deposits and other		44.2			4.2			—			48.4
Intangible assets, net		691.1			—			—			691.1
Deferred tax assets		67.1			—			—			67.1
Total assets	$	4,806.6		$	26,834.6		$	(74.6	)	$	31,566.6
Liabilities and partners’ capital
Loans payable	$	886.3		$	—		$	—		$	886.3
Loans payable of Consolidated Funds		—			13,708.2			(51.5	)		13,656.7
Accounts payable, accrued expenses and other liabilities		215.0			—			—			215.0
Accrued compensation and benefits		1,318.2			—			—			1,318.2
Due to affiliates		290.4			42.1			(0.4	)		332.1
Deferred revenue		57.9			1.5			—			59.4
Deferred tax liabilities		61.1			—			—			61.1
Other liabilities of Consolidated Funds		—			1,405.0			(19.2	)		1,385.8
Accrued giveback obligations		79.0			—			(9.8	)		69.2
Total liabilities		2,907.9			15,156.8			(80.9	)		17,983.8
Redeemable non-controlling interests in consolidated entities		6.0			2,881.4			—			2,887.4
Partners’ capital		235.1			(4.7	)		4.7			235.1
Accumulated other comprehensive loss		(5.0	)		—			0.2			(4.8	)
Partners’ capital appropriated for Consolidated Funds		—			837.2			1.4			838.6
Non-controlling interests in consolidated entities		300.9			7,963.9			—			8,264.8
Non-controlling interests in Carlyle Holdings		1,361.7			—			—			1,361.7
Total partners’ capital		1,892.7			8,796.4			6.3			10,695.4
Total liabilities and partners’ capital	$	4,806.6		$	26,834.6		$	(74.6	)	$	31,566.6

	Three Months Ended March 31, 2013
	Consolidated Operating Entities			Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	274.2		$	—	$	(42.8	)	$	231.4
Performance fees
Realized		254.3			—		(1.5	)		252.8
Unrealized		424.8			—		(35.2	)		389.6
Total performance fees		679.1			—		(36.7	)		642.4
Investment income (loss)
Realized		(2.4	)		—		(1.8	)		(4.2	)
Unrealized		5.7			—		(1.1	)		4.6
Total investment income (loss)		3.3			—		(2.9	)		0.4
Interest and other income		2.4			—		—			2.4
Interest and other income of Consolidated Funds		—			268.4		—			268.4
Total revenues		959.0			268.4		(82.4	)		1,145.0
Expenses
Compensation and benefits
Base compensation		178.5			—		—			178.5
Equity-based compensation		52.3			—		—			52.3
Performance fee related
Realized		108.7			—		—			108.7
Unrealized		195.0			—		—			195.0
Total compensation and benefits		534.5			—		—			534.5
General, administrative and other expenses		110.0			—		1.4			111.4
Interest		10.5			—		—			10.5
Interest and other expenses of Consolidated Funds		—			333.2		(83.1	)		250.1
Other non-operating income		(2.4	)		—		—			(2.4	)
Total expenses		652.6			333.2		(81.7	)		904.1
Other income
Net investment gains of Consolidated Funds		—			212.6		(1.1	)		211.5
Income before provision for income taxes		306.4			147.8		(1.8	)		452.4
Provision for income taxes		24.9			—		—			24.9
Net income		281.5			147.8		(1.8	)		427.5
Net income attributable to non-controlling interests in consolidated entities		22.0			—		146.0			168.0
Net income attributable to Carlyle Holdings		259.5			147.8		(147.8	)		259.5
Net income attributable to non-controlling interests in Carlyle Holdings		225.7			—		—			225.7
Net income attributable to The Carlyle Group L.P.	$	33.8		$	147.8	$	(147.8	)	$	33.8

	Three Months Ended March 31, 2012
	Consolidated Operating Entities			Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	264.2		$	—	$	(29.8	)	$	234.4
Performance fees
Realized		284.2			—		(3.6	)		280.6
Unrealized		362.8			—		(2.6	)		360.2
Total performance fees		647.0			—		(6.2	)		640.8
Investment income
Realized		2.4			—		(3.2	)		(0.8	)
Unrealized		23.9			—		(1.6	)		22.3
Total investment income		26.3			—		(4.8	)		21.5
Interest and other income		2.8			—		(0.1	)		2.7
Interest and other income of Consolidated Funds		—			211.5		—			211.5
Total revenues		940.3			211.5		(40.9	)		1,110.9
Expenses
Compensation and benefits
Base compensation		106.1			—		—			106.1
Performance fee related
Realized		34.3			—		—			34.3
Unrealized		54.8			—		—			54.8
Total compensation and benefits		195.2			—		—			195.2
General, administrative and other expenses		89.1			—		2.1			91.2
Interest		10.4			—		—			10.4
Interest and other expenses of Consolidated Funds		—			220.2		(35.7	)		184.5
Other non-operating income		(4.1	)		—		—			(4.1	)
Total expenses		290.6			220.2		(33.6	)		477.2
Other income
Net investment gains of Consolidated Funds		—			870.5		1.6			872.1
Income before provision for income taxes		649.7			861.8		(5.7	)		1,505.8
Provision for income taxes		11.7			—		—			11.7
Net income		638.0			861.8		(5.7	)		1,494.1
Net income attributable to non-controlling interests in consolidated entities		8.8			—		856.1			864.9
Net income attributable to Carlyle Holdings	$	629.2		$	861.8	$	(861.8	)	$	629.2

	Three Months Ended March 31,
	2013			2012
	(Dollars in millions)
Cash flows from operating activities
Net income	$	281.5		$	638.0
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		43.5			24.2
Amortization of deferred financing fees		0.4			0.4
Equity-based compensation		52.3			—
Non-cash performance fees		(510.2	)		(476.4	)
Other non-cash amounts		2.6			(4.1	)
Investment income		19.3			(25.1	)
Purchases of investments		(54.4	)		(10.0	)
Proceeds from the sale of investments		118.1			145.7
Purchases of trading securities		(6.2	)		(5.0	)
Change in deferred taxes		11.2			7.6
Change in due from affiliates and other receivables		(3.6	)		(11.9	)
Change in deposits and other		2.1			(8.7	)
Change in accounts payable, accrued expenses and other liabilities		(3.8	)		(22.4	)
Change in accrued compensation and benefits		152.0			(95.8	)
Change in due to affiliates		(2.1	)		(27.5	)
Change in deferred revenue		128.9			113.4
Net cash provided by operating activities		231.6			242.4
Cash flows from investing activities
Change in restricted cash		(9.3	)		—
Purchases of fixed assets, net		(5.4	)		(5.1	)
Purchases of intangible assets		—			(43.1	)
Net cash used in investing activities		(14.7	)		(48.2	)
Cash flows from financing activities
Borrowings under credit facility		—			313.1
Repayments under credit facility		(386.3	)		(55.9	)
Issuance of 3.875% senior notes due 2023, net of financing costs		495.3			—
Issuance of 5.625% senior notes due 2043, net of financing costs		394.1			—
Payments on loans payable		(475.0	)		(270.0	)
Payments of contingent consideration		(10.0	)		—
Distributions to common unitholders		(36.8	)		—
Contributions from predecessor owners		—			1.1
Distributions to predecessor owners		—			(199.1	)
Contributions from non-controlling interest holders		27.5			3.8
Distributions to non-controlling interest holders		(256.3	)		(7.3	)
Change in due to/from affiliates financing activities		38.5			32.1
Net cash used in financing activities		(209.0	)		(182.2	)
Effect of foreign exchange rate changes		(4.6	)		1.6
Increase in cash and cash equivalents		3.3			13.6
Cash and cash equivalents, beginning of period		567.1			509.6
Cash and cash equivalents, end of period	$	570.4		$	523.2