Supplemental Financial Information |
Supplemental Financial Information The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Partnership’s financial position as of December 31, 2018 and 2017 and results of operations for the years ended December 31, 2018, 2017 and 2016. The supplemental statement of cash flows is presented without effects of the Consolidated Funds. | | | | | | | | | | | | | | | | | | As of December 31, 2018 | | Consolidated Operating Entities | | Consolidated Funds | | Eliminations | | Consolidated | | (Dollars in millions) | Assets | | | | | | | | Cash and cash equivalents | $ | 629.6 |
| | $ | — |
| | $ | — |
| | $ | 629.6 |
| Cash and cash equivalents held at Consolidated Funds | — |
| | 247.5 |
| | — |
| | 247.5 |
| Restricted cash | 8.7 |
| | — |
| | — |
| | 8.7 |
| Corporate treasury investments | 51.7 |
| | — |
| | — |
| | 51.7 |
| Investments, including performance allocations of $3,480.0 million | 5,917.8 |
| | — |
| | (220.3 | ) | | 5,697.5 |
| Investments of Consolidated Funds | — |
| | 5,286.6 |
| | — |
| | 5,286.6 |
| Due from affiliates and other receivables, net | 446.8 |
| | — |
| | (5.7 | ) | | 441.1 |
| Due from affiliates and other receivables of Consolidated Funds, net | — |
| | 135.4 |
| | — |
| | 135.4 |
| Fixed assets, net | 95.1 |
| | — |
| | — |
| | 95.1 |
| Deposits and other | 49.3 |
| | — |
| | — |
| | 49.3 |
| Intangible assets, net | 77.3 |
| | — |
| | — |
| | 77.3 |
| Deferred tax assets | 194.4 |
| | — |
| | — |
| | 194.4 |
| Total assets | $ | 7,470.7 |
| | $ | 5,669.5 |
| | $ | (226.0 | ) | | $ | 12,914.2 |
| Liabilities and partners’ capital | | | | | | | | Debt obligations | $ | 1,550.4 |
| | $ | — |
| | $ | — |
| | $ | 1,550.4 |
| Loans payable of Consolidated Funds | — |
| | 4,840.1 |
| | — |
| | 4,840.1 |
| Accounts payable, accrued expenses and other liabilities | 442.2 |
| | — |
| | — |
| | 442.2 |
| Accrued compensation and benefits | 2,222.3 |
| | — |
| | — |
| | 2,222.3 |
| Due to affiliates | 174.0 |
| | — |
| | — |
| | 174.0 |
| Deferred revenue | 111.3 |
| | — |
| | — |
| | 111.3 |
| Deferred tax liabilities | 64.3 |
| | — |
| | — |
| | 64.3 |
| Other liabilities of Consolidated Funds | — |
| | 610.1 |
| | — |
| | 610.1 |
| Accrued giveback obligations | 63.2 |
| | — |
| | — |
| | 63.2 |
| Total liabilities | 4,627.7 |
| | 5,450.2 |
| | — |
| | 10,077.9 |
| Series A preferred units | 387.5 |
| | — |
| | — |
| | 387.5 |
| Partners’ capital | 673.4 |
| | 68.2 |
| | (68.2 | ) | | 673.4 |
| Accumulated other comprehensive income (loss) | (80.7 | ) | | 1.1 |
| | (3.7 | ) | | (83.3 | ) | Non-controlling interests in consolidated entities | 323.0 |
| | 1.2 |
| | — |
| | 324.2 |
| Non-controlling interests in Carlyle Holdings | 1,539.8 |
| | 148.8 |
| | (154.1 | ) | | 1,534.5 |
| Total partners’ capital | 2,843.0 |
| | 219.3 |
| | (226.0 | ) | | 2,836.3 |
| Total liabilities and partners’ capital | $ | 7,470.7 |
| | $ | 5,669.5 |
| | $ | (226.0 | ) | | $ | 12,914.2 |
|
| | | | | | | | | | | | | | | | | | As of December 31, 2017 | | Consolidated Operating Entities | | Consolidated Funds | | Eliminations | | Consolidated | | (Dollars in millions) | Assets | | | | | | | | Cash and cash equivalents | $ | 1,000.1 |
| | $ | — |
| | $ | — |
| | $ | 1,000.1 |
| Cash and cash equivalents held at Consolidated Funds | — |
| | 377.6 |
| | — |
| | 377.6 |
| Restricted cash | 28.7 |
| | — |
| | — |
| | 28.7 |
| Corporate treasury investments | 376.3 |
| | — |
| | — |
| | 376.3 |
| Investments, including performance allocations of $3,664.3 million | 5,508.5 |
| | — |
| | (219.9 | ) | | 5,288.6 |
| Investments of Consolidated Funds | — |
| | 4,534.3 |
| | — |
| | 4,534.3 |
| Due from affiliates and other receivables, net | 268.7 |
| | — |
| | (5.3 | ) | | 263.4 |
| Due from affiliates and other receivables of Consolidated Funds, net | — |
| | 50.8 |
| | — |
| | 50.8 |
| Fixed assets, net | 100.4 |
| | — |
| | — |
| | 100.4 |
| Deposits and other | 54.1 |
| | — |
| | — |
| | 54.1 |
| Intangible assets, net | 35.9 |
| | — |
| | — |
| | 35.9 |
| Deferred tax assets | 170.4 |
| | — |
| | — |
| | 170.4 |
| Total assets | $ | 7,543.1 |
| | $ | 4,962.7 |
| | $ | (225.2 | ) | | $ | 12,280.6 |
| Liabilities and partners’ capital | | | | | | | | Debt obligations | $ | 1,573.6 |
| | $ | — |
| | $ | — |
| | $ | 1,573.6 |
| Loans payable of Consolidated Funds | — |
| | 4,303.8 |
| | — |
| | 4,303.8 |
| Accounts payable, accrued expenses and other liabilities | 355.1 |
| | — |
| | — |
| | 355.1 |
| Accrued compensation and benefits | 2,222.6 |
| | — |
| | — |
| | 2,222.6 |
| Due to affiliates | 229.9 |
| | — |
| | — |
| | 229.9 |
| Deferred revenue | 82.1 |
| | — |
| | — |
| | 82.1 |
| Deferred tax liabilities | 75.6 |
| | — |
| | — |
| | 75.6 |
| Other liabilities of Consolidated Funds | — |
| | 422.1 |
| | — |
| | 422.1 |
| Accrued giveback obligations | 66.8 |
| | — |
| | — |
| | 66.8 |
| Total liabilities | 4,605.7 |
| | 4,725.9 |
| | — |
| | 9,331.6 |
| Series A preferred units | 387.5 |
| | — |
| | — |
| | 387.5 |
| Partners’ capital | 701.8 |
| | 62.8 |
| | (62.8 | ) | | 701.8 |
| Accumulated other comprehensive income (loss) | (72.2 | ) | | 4.1 |
| | (4.6 | ) | | (72.7 | ) | Non-controlling interests in consolidated entities | 391.4 |
| | 13.3 |
| | — |
| | 404.7 |
| Non-controlling interests in Carlyle Holdings | 1,528.9 |
| | 156.6 |
| | (157.8 | ) | | 1,527.7 |
| Total partners’ capital | 2,937.4 |
| | 236.8 |
| | (225.2 | ) | | 2,949.0 |
| Total liabilities and partners’ capital | $ | 7,543.1 |
| | $ | 4,962.7 |
| | $ | (225.2 | ) | | $ | 12,280.6 |
|
| | | | | | | | | | | | | | | | | | Year Ended December 31, 2018 | | Consolidated Operating Entities | | Consolidated Funds | | Eliminations | | Consolidated | | (Dollars in millions) | Revenues | | | | | | | | Fund management fees | $ | 1,296.4 |
| | $ | — |
| | $ | (24.4 | ) | | $ | 1,272.0 |
| Incentive fees | 31.3 |
| | — |
| | (1.1 | ) | | 30.2 |
| Investment income | | | | | | | | Performance allocations | 622.9 |
| | — |
| | — |
| | 622.9 |
| Principal investment income | 193.8 |
| | — |
| | (7.5 | ) | | 186.3 |
| Total investment income | 816.7 |
| | — |
| | (7.5 | ) | | 809.2 |
| Interest and other income | 128.0 |
| | — |
| | (26.7 | ) | | 101.3 |
| Interest and other income of Consolidated Funds | — |
| | 214.5 |
| | — |
| | 214.5 |
| Total revenues | 2,272.4 |
| | 214.5 |
| | (59.7 | ) | | 2,427.2 |
| Expenses | | | | | | | | Compensation and benefits | | | | | | | | Cash-based compensation and benefits | 746.7 |
| | — |
| | — |
| | 746.7 |
| Equity-based compensation | 239.9 |
| | — |
| | — |
| | 239.9 |
| Performance allocations and incentive fee related compensation | 376.3 |
| | — |
| | — |
| | 376.3 |
| Total compensation and benefits | 1,362.9 |
| | — |
| | — |
| | 1,362.9 |
| General, administrative and other expenses | 460.7 |
| | — |
| | — |
| | 460.7 |
| Interest | 82.2 |
| | — |
| | — |
| | 82.2 |
| Interest and other expenses of Consolidated Funds | — |
| | 213.3 |
| | (48.7 | ) | | 164.6 |
| Other non-operating expense | 1.1 |
| | — |
| | — |
| | 1.1 |
| Total expenses | 1,906.9 |
| | 213.3 |
| | (48.7 | ) | | 2,071.5 |
| Other income | | | | | | | | Net investment gains of Consolidated Funds | — |
| | 4.5 |
| | — |
| | 4.5 |
| Income before provision for income taxes | 365.5 |
| | 5.7 |
| | (11.0 | ) | | 360.2 |
| Provision for income taxes | 31.3 |
| | — |
| | — |
| | 31.3 |
| Net income | 334.2 |
| | 5.7 |
| | (11.0 | ) | | 328.9 |
| Net income attributable to non-controlling interests in consolidated entities | 39.2 |
| | — |
| | (5.3 | ) | | 33.9 |
| Net income attributable to Carlyle Holdings | 295.0 |
| | 5.7 |
| | (5.7 | ) | | 295.0 |
| Net income attributable to non-controlling interests in Carlyle Holdings | 178.5 |
| | — |
| | — |
| | 178.5 |
| Net income attributable to The Carlyle Group L.P. | 116.5 |
| | 5.7 |
| | (5.7 | ) | | 116.5 |
| Net income attributable to Series A Preferred Unitholders | 23.6 |
| | — |
| | — |
| | 23.6 |
| Net income attributable to The Carlyle Group L.P. Common Unitholders | $ | 92.9 |
| | $ | 5.7 |
| | $ | (5.7 | ) | | $ | 92.9 |
|
| | | | | | | | | | | | | | | | | | Year Ended December 31, 2017 | | Consolidated Operating Entities | | Consolidated Funds | | Eliminations | | Consolidated | | (Dollars in millions) | Revenues | | | | | | | | Fund management fees | $ | 1,045.4 |
| | $ | — |
| | $ | (18.5 | ) | | $ | 1,026.9 |
| Incentive fees | 37.7 |
| | — |
| | (2.4 | ) | | 35.3 |
| Investment income | | | | | | | | Performance allocations | 2,058.6 |
| | — |
| | — |
| | 2,058.6 |
| Principal investment income | 243.8 |
| | — |
| | (11.8 | ) | | 232.0 |
| Total investment income | 2,302.4 |
| | — |
| | (11.8 | ) | | 2,290.6 |
| Interest and other income | 60.5 |
| | — |
| | (23.8 | ) | | 36.7 |
| Interest and other income of Consolidated Funds | — |
| | 177.7 |
| | — |
| | 177.7 |
| Revenue of a real estate VIE | 109.0 |
| | — |
| | — |
| | 109.0 |
| Total revenues | 3,555.0 |
| | 177.7 |
| | (56.5 | ) | | 3,676.2 |
| Expenses | | | | | | | | Compensation and benefits | | | | | | | | Cash-based compensation and benefits | 652.7 |
| | — |
| | — |
| | 652.7 |
| Equity-based compensation | 320.3 |
| | — |
| | — |
| | 320.3 |
| Performance allocations and incentive fee related compensation | 988.3 |
| | — |
| | — |
| | 988.3 |
| Total compensation and benefits | 1,961.3 |
| | — |
| | — |
| | 1,961.3 |
| General, administrative and other expenses | 276.8 |
| | — |
| | — |
| | 276.8 |
| Interest | 65.5 |
| | — |
| | — |
| | 65.5 |
| Interest and other expenses of Consolidated Funds | — |
| | 240.4 |
| | (42.8 | ) | | 197.6 |
| Interest and other expenses of a real estate VIE and loss on deconsolidation | 202.5 |
| | — |
| | — |
| | 202.5 |
| Other non-operating income | (71.4 | ) | | — |
| | — |
| | (71.4 | ) | Total expenses | 2,434.7 |
| | 240.4 |
| | (42.8 | ) | | 2,632.3 |
| Other income | | | | | | | | Net investment gains of Consolidated Funds | — |
| | 123.5 |
| | (35.1 | ) | | 88.4 |
| Income before provision for income taxes | 1,120.3 |
| | 60.8 |
| | (48.8 | ) | | 1,132.3 |
| Provision for income taxes | 124.9 |
| | — |
| | — |
| | 124.9 |
| Net income | 995.4 |
| | 60.8 |
| | (48.8 | ) | | 1,007.4 |
| Net income attributable to non-controlling interests in consolidated entities | 60.5 |
| | — |
| | 12.0 |
| | 72.5 |
| Net income attributable to Carlyle Holdings | 934.9 |
| | 60.8 |
| | (60.8 | ) | | 934.9 |
| Net income attributable to non-controlling interests in Carlyle Holdings | 690.8 |
| | — |
| | — |
| | 690.8 |
| Net income attributable to The Carlyle Group L.P. | $ | 244.1 |
| | $ | 60.8 |
| | $ | (60.8 | ) | | $ | 244.1 |
| Net income attributable to Series A Preferred Unitholders | 6.0 |
| | — |
| | — |
| | 6.0 |
| Net income attributable to The Carlyle Group L.P. Common Unitholders | $ | 238.1 |
| | $ | 60.8 |
| | $ | (60.8 | ) | | $ | 238.1 |
|
| | | | | | | | | | | | | | | | | | Year Ended December 31, 2016 | | Consolidated Operating Entities | | Consolidated Funds | | Eliminations | | Consolidated | | (Dollars in millions) | Revenues | | | | | | | | Fund management fees | $ | 1,090.3 |
| | $ | — |
| | $ | (14.2 | ) | | $ | 1,076.1 |
| Incentive fees | 36.6 |
| | — |
| | (0.2 | ) | | 36.4 |
| Investment income | | | | | | | | Performance allocations | 715.4 |
| | — |
| | — |
| | 715.4 |
| Principal investment income | 165.5 |
| | — |
| | (5.0 | ) | | 160.5 |
| Total investment income (loss) | 880.9 |
| | — |
| | (5.0 | ) | | 875.9 |
| Interest and other income | 38.9 |
| | — |
| | (15.0 | ) | | 23.9 |
| Interest and other income of Consolidated Funds | — |
| | 166.9 |
| | — |
| | 166.9 |
| Revenue of a real estate VIE | 95.1 |
| | — |
| | — |
| | 95.1 |
| Total revenues | 2,141.8 |
| | 166.9 |
| | (34.4 | ) | | 2,274.3 |
| Expenses | | | | | | | | Compensation and benefits | | | | | | | | Cash-based compensation and benefits | 647.1 |
| | — |
| | — |
| | 647.1 |
| Equity-based compensation | 334.6 |
| | — |
| | — |
| | 334.6 |
| Performance allocations and incentive fee related compensation | 353.1 |
| | — |
| | — |
| | 353.1 |
| Total compensation and benefits | 1,334.8 |
| | — |
| | — |
| | 1,334.8 |
| General, administrative and other expenses | 521.1 |
| | — |
| | — |
| | 521.1 |
| Interest | 61.3 |
| | — |
| | — |
| | 61.3 |
| Interest and other expenses of Consolidated Funds | — |
| | 153.1 |
| | (24.6 | ) | | 128.5 |
| Interest and other expenses of a real estate VIE | 207.6 |
| | — |
| | — |
| | 207.6 |
| Other non-operating income | (11.2 | ) | | — |
| | — |
| | (11.2 | ) | Total expenses | 2,113.6 |
| | 153.1 |
| | (24.6 | ) | | 2,242.1 |
| Other income | | | | | | | | Net investment gains of Consolidated Funds | — |
| | 13.1 |
| | — |
| | 13.1 |
| Income before provision for income taxes | 28.2 |
| | 26.9 |
| | (9.8 | ) | | 45.3 |
| Provision for income taxes | 30.0 |
| | — |
| | — |
| | 30.0 |
| Net income (loss) | (1.8 | ) | | 26.9 |
| | (9.8 | ) | | 15.3 |
| Net income attributable to non-controlling interests in consolidated entities | 23.9 |
| | — |
| | 17.1 |
| | 41.0 |
| Net income (loss) attributable to Carlyle Holdings | (25.7 | ) | | 26.9 |
| | (26.9 | ) | | (25.7 | ) | Net loss attributable to non-controlling interests in Carlyle Holdings | (32.1 | ) | | — |
| | — |
| | (32.1 | ) | Net income attributable to The Carlyle Group L.P. | $ | 6.4 |
| | $ | 26.9 |
| | $ | (26.9 | ) | | $ | 6.4 |
|
| | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2017 | | 2016 | | (Dollars in millions) | Cash flows from operating activities | | | | | | Net income (loss) | $ | 334.2 |
| | $ | 995.4 |
| | $ | (1.8 | ) | Adjustments to reconcile net income (loss) to net cash flows from operating activities: | | | | | | Depreciation, amortization, and impairment | 46.9 |
| | 41.3 |
| | 72.0 |
| Equity-based compensation | 239.9 |
| | 320.3 |
| | 334.6 |
| Non-cash performance allocations and incentive fees | 25.8 |
| | (626.8 | ) | | 199.6 |
| Other non-cash amounts | 3.2 |
| | (79.8 | ) | | (55.8 | ) | Principal investment income | (165.9 | ) | | (222.8 | ) | | (159.5 | ) | Purchases of investments | (533.8 | ) | | (938.6 | ) | | (458.3 | ) | Purchase of investment in Fortitude Re | (393.8 | ) | | — |
| | — |
| Proceeds from the sale of investments | 916.2 |
| | 477.6 |
| | 325.1 |
| Payments of contingent consideration | (37.5 | ) | | (22.6 | ) | | (82.6 | ) | Change in deferred taxes, net | (19.8 | ) | | 93.4 |
| | (4.4 | ) | Change in due from affiliates and other receivables | (75.0 | ) | | (1.1 | ) | | (12.4 | ) | Change in receivables and inventory of a real estate VIE | — |
| | (14.5 | ) | | 29.0 |
| Change in deposits and other | (4.0 | ) | | (2.0 | ) | | 6.1 |
| Change in other assets of a real estate VIE | — |
| | 1.6 |
| | 41.2 |
| Deconsolidation of Claren Road (see Note 9) | — |
| | (23.3 | ) | | — |
| Deconsolidation of Urbplan (see Note 16) | — |
| | 14.0 |
| | — |
| Deconsolidation of ESG | — |
| | — |
| | (34.5 | ) | Change in accounts payable, accrued expenses and other liabilities | 78.2 |
| | 50.5 |
| | 66.6 |
| Change in accrued compensation and benefits | 60.8 |
| | (13.7 | ) | | 6.5 |
| Change in due to affiliates | (35.6 | ) | | 35.7 |
| | (19.3 | ) | Change in other liabilities of a real estate VIE | — |
| | 47.9 |
| | 34.3 |
| Change in deferred revenue | 21.4 |
| | 24.4 |
| | 18.9 |
| Net cash provided by operating activities | 461.2 |
| | 156.9 |
| | 305.3 |
| Cash flows from investing activities | | | | | | Purchases of fixed assets, net | (31.3 | ) | | (34.0 | ) | | (25.4 | ) | Acquisitions, net of cash acquired | (67.8 | ) | | — |
| | — |
| Net cash used in investing activities | (99.1 | ) | | (34.0 | ) | | (25.4 | ) | Cash flows from financing activities | | | | | | Borrowings under credit facility | — |
| | 250.0 |
| | — |
| Repayments under credit facility | — |
| | (250.0 | ) | | — |
| Issuance of 5.650% senior notes due 2048, net of financing costs | 345.7 |
| | — |
| | — |
| Repurchase of 3.875% senior notes due 2023 | (255.1 | ) | | — |
| | — |
| Proceeds from debt obligations | 40.8 |
| | 265.6 |
| | 20.6 |
| Payments on debt obligations | (156.7 | ) | | (21.7 | ) | | (9.0 | ) | Net payments on loans payable of a real estate VIE | — |
| | (14.3 | ) | | (34.5 | ) | Payments of contingent consideration | — |
| | (0.6 | ) | | (3.3 | ) | Proceeds from issuance of preferred units | — |
| | 387.5 |
| | — |
| Distributions to common unitholders | (129.8 | ) | | (118.1 | ) | | (140.9 | ) | Distributions to preferred unitholders | (23.6 | ) | | (6.0 | ) | | — |
| Distributions to non-controlling interest holders in Carlyle Holdings | (288.8 | ) | | (295.6 | ) | | (422.6 | ) | Contributions from non-controlling interest holders | 31.3 |
| | 119.2 |
| | 113.0 |
| Distributions to non-controlling interest holders | (98.9 | ) | | (100.8 | ) | | (104.2 | ) | Common units repurchased | (107.5 | ) | | (0.2 | ) | | (58.9 | ) | Change in due to/from affiliates financing activities | (97.1 | ) | | (26.4 | ) | | 53.6 |
| Net cash provided by (used in) financing activities | (739.7 | ) | | 188.6 |
| | (586.2 | ) | Effect of foreign exchange rate changes | (12.9 | ) | | 33.3 |
| | (20.1 | ) | Increase (decrease) in cash, cash equivalents and restricted cash | (390.5 | ) | | 344.8 |
| | (326.4 | ) | Cash, cash equivalents and restricted cash, beginning of period | 1,028.8 |
| | 684.0 |
| | 1,010.4 |
| Cash, cash equivalents and restricted cash, end of period | $ | 638.3 |
| | $ | 1,028.8 |
| | $ | 684.0 |
| Reconciliation of cash, cash equivalents and restricted cash, end of period: | | | | | | Cash and cash equivalents | $ | 629.6 |
| | $ | 1,000.1 |
| | $ | 670.9 |
| Restricted cash | 8.7 |
| | 28.7 |
| | 13.1 |
| Total cash, cash equivalents and restricted cash, end of period | $ | 638.3 |
| | $ | 1,028.8 |
| | $ | 684.0 |
|
|