Note: Segments and annual amounts may not sum due to rounding. Total AUM, Fee-earning AUM and Net Accrued Performance Revenue as of period end.
*FY'20 Fee Related Earnings were $520 million, or $490 million excluding the impact of $30 million in one-time litigation cost recoveries.
Total AUM refers to the assets we manage or advise. Fee-earning AUM refers to the assets we manage or advise from which we derive recurring fund management fees. Fundraising excludes acquisitions; funds denominated in a currency other than U.S. Dollars have been converted at the spot rate as of the date of closing of such commitment. Invested Capital and Realized Proceeds represent carry funds only (including related coinvestments and separately managed accounts); for purposes of aggregation, transactions denominated in a currency other than U.S. Dollars have been converted at the average rate for the period presented. Fund Appreciation/(Depreciation) represents unrealized gain/(loss) for the period on a total return basis before fees and expenses; fund only, does not include coinvestment; the percentage of return is calculated as: ending remaining investment fair market value plus net investment outflow (sales proceeds minus net purchases) minus beginning remaining investment fair market value divided by beginning remaining investment fair market value. The impact of the Legacy Energy funds is included in the total for Global Private Equity, but is excluded within the Global Private Equity strategy breakout, for all periods presented.
For detailed definitions of the operating metrics above, please see The Carlyle Group Inc.'s filings with the U.S. Securities and Exchange Commission.
3|Qtr-Total DE
Carlyle Total Segment Results by Quarter
(Dollars in millions, except per share amounts)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
2Q'22
3Q'22
SEGMENT REVENUES
Fund management fees
$ 381.8
$ 372.6
$ 377.4
$ 380.5
$ 392.6
$ 382.8
$ 399.4
$ 405.7
$ 466.7
$ 454.2
$ 516.2
$ 514.1
Transaction and portfolio advisory fees, net and other
17.5
6.8
18.3
5.1
26.7
19.7
15.6
23.2
38.5
16.2
42.2
35.0
Fee related performance revenues1
8.4
8.9
9.0
8.6
9.6
9.4
10.4
11.2
12.2
44.5
35.1
20.6
Total segment fee revenues
$ 407.7
$ 388.3
$ 404.7
$ 394.2
$ 428.9
$ 411.9
$ 425.4
$ 440.1
$ 517.4
$ 514.9
$ 593.5
$ 569.7
Realized performance revenues
164.9
171.6
152.2
86.8
175.5
168.4
454.0
1,010.9
1,305.3
236.3
519.9
764.8
Realized principal investment income (loss)
1.7
15.9
22.1
12.8
22.2
30.0
37.8
71.3
70.4
26.3
43.8
56.7
Interest income
6.4
5.3
3.2
2.7
3.1
2.2
1.8
1.5
1.7
2.0
4.0
10.5
Total Segment Revenues
$ 580.7
$ 581.1
$ 582.2
$ 496.5
$ 629.7
$ 612.5
$ 919.0
$ 1,523.8
$ 1,894.8
$ 779.5
$ 1,161.2
$ 1,401.7
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 188.6
$ 203.8
$ 210.1
$ 205.3
$ 202.3
$ 212.2
$ 217.4
$ 218.0
$ 243.9
$ 245.8
$ 259.7
$ 246.7
Realized performance revenues related compensation
86.3
123.4
81.3
46.9
88.2
92.4
216.6
477.4
622.6
118.3
249.0
373.7
Total compensation and benefits2
$ 274.3
$ 327.2
$ 291.4
$ 252.2
$ 290.5
$ 304.6
$ 434.0
$ 695.4
$ 866.5
$ 364.1
$ 508.7
$ 620.4
General, administrative and other expenses
94.6
48.3
58.1
62.0
73.0
61.6
55.6
60.0
90.4
76.3
87.9
100.8
Depreciation and amortization expense
16.5
7.4
9.2
8.2
8.7
9.1
9.2
10.7
8.6
9.5
9.5
9.6
Interest expense
23.0
23.2
25.1
22.3
20.6
22.3
24.8
27.1
26.5
26.8
26.3
26.5
Total Segment Expenses
$ 409.0
$ 406.1
$ 383.8
$ 344.7
$ 392.8
$ 397.6
$ 523.6
$ 793.2
$ 992.0
$ 476.7
$ 632.4
$ 757.3
Total Segment Revenues
$ 580.7
$ 581.1
$ 582.2
$ 496.5
$ 629.7
$ 612.5
$ 919.0
$ 1,523.8
$ 1,894.8
$ 779.5
$ 1,161.2
$ 1,401.7
Total Segment Expenses
409.0
406.1
383.8
344.7
392.8
397.6
523.6
793.2
992.0
476.7
632.4
757.3
(=) Distributable Earnings
$ 171.7
$ 175.0
$ 198.4
$ 151.8
$ 236.9
$ 214.9
$ 395.4
$ 730.6
$ 902.8
$ 302.8
$ 528.8
$ 644.4
(-) Realized Net Performance Revenues
78.6
48.2
70.9
39.9
87.3
76.0
237.4
533.5
682.7
118.0
270.9
391.1
(-) Realized Principal Investment Income (Loss)
1.7
15.9
22.1
12.8
22.2
30.0
37.8
71.3
70.4
26.3
43.8
56.7
(+) Net Interest
16.6
17.9
21.9
19.6
17.5
20.1
23.0
25.6
24.8
24.8
22.3
16.0
(=) Fee Related Earnings
$ 108.0
$ 128.8
$ 127.3
$ 118.7
$ 144.9
$ 129.0
$ 143.2
$ 151.4
$ 174.5
$ 183.3
$ 236.4
$ 212.6
After-tax Distributable Earnings, per common share3
$ 0.47
$ 0.48
$ 0.53
$ 0.40
$ 0.64
$ 0.58
$ 0.88
$ 1.54
$ 2.01
$ 0.74
$ 1.17
$ 1.42
Dividend per common share4
$ 0.250
$ 0.250
$ 0.250
$ 0.250
$ 0.250
$ 0.250
$ 0.250
$ 0.250
$ 0.250
$ 0.325
$ 0.325
$ 0.325
(1) Fee related performance revenues are the realized portion of performance revenues that are measured and received on a recurring basis, are not dependent on the disposition of investments, and which are not at risk of giveback. The related compensation expense is included in cash-based compensation and benefits.
(2) Total Segment compensation and benefits exclude equity-based compensation. Details on equity-based compensation are shown on page 11. These amounts include equity-based compensation reflected in (i) principal investment income and (ii) general, administration and other expense in our U.S. GAAP statement of operations, and exclude amounts related to shares issued in conjunction with a previous acquisition.
(3) In the earnings presentation attached as an exhibit to our Form 8-K for the quarter ended September 30, 2022 and furnished to the SEC on November 8, 2022, reconciliation of Distributable Earnings to After-tax Distributable Earnings per common share is provided on page 29.
(4) In February 2022, our Board of Directors approved an increase in the common stock dividend to an annual rate of $1.30 per share ($0.325 per common share on a quarterly basis), commencing with the first quarter 2022 dividend to be paid in May 2022. Prior to the first quarter 2022 dividend, our dividend policy for our common stock was an annual rate of $1.00 per share of common stock ($0.25 per common share on a quarterly basis). The declaration and payment of any dividends to holders of our common stock are subject to the discretion of our Board of Directors, which may change our dividend policy at any time or from time to time, and the terms of our certificate of incorporation. There can be no assurance that dividends will be made as intended or at all or that any particular dividend policy will be maintained.
4|Qtr-GPE DE
Global Private Equity Segment Results by Quarter
(Dollars in millions, except per share amounts)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
2Q'22
3Q'22
SEGMENT REVENUES
Fund management fees
$ 272.8
$ 268.7
$ 262.5
$ 248.1
$ 262.7
$ 260.2
$ 263.4
$ 265.1
$ 323.1
$ 304.2
$ 337.0
$ 330.1
Transaction and portfolio advisory fees, net and other
11.7
4.2
3.1
3.5
12.0
10.6
6.2
7.3
10.2
6.1
7.5
7.7
Fee related performance revenues
-
-
-
-
-
-
-
-
-
30.6
22.3
6.1
Total segment fee revenues
$ 284.5
$ 272.9
$ 265.6
$ 251.6
$ 274.7
$ 270.8
$ 269.6
$ 272.4
$ 333.3
$ 340.9
$ 366.8
$ 343.9
Realized performance revenues
139.4
65.2
116.0
70.5
152.8
134.1
428.9
962.9
1,231.9
199.9
473.8
628.4
Realized principal investment income (loss)
(2.8)
10.2
16.3
7.5
18.0
23.7
24.0
61.6
58.5
14.2
34.2
46.0
Interest income
2.6
1.8
0.5
0.3
0.7
0.2
0.5
0.2
0.5
0.4
1.2
5.1
Total Segment Revenues
$ 423.7
$ 350.1
$ 398.4
$ 329.9
$ 446.2
$ 428.8
$ 723.0
$ 1,297.1
$ 1,624.2
$ 555.4
$ 876.0
$ 1,023.4
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 117.3
$ 129.7
$ 130.6
$ 122.5
$ 119.1
$ 129.1
$ 133.6
$ 133.6
$ 149.9
$ 153.0
$ 154.2
$ 146.7
Realized performance revenues related compensation
62.1
29.7
51.8
32.9
68.6
60.2
193.6
434.5
555.3
90.7
214.5
283.5
Total compensation and benefits
$ 179.4
$ 159.4
$ 182.4
$ 155.4
$ 187.7
$ 189.3
$ 327.2
$ 568.1
$ 705.2
$ 243.7
$ 368.7
$ 430.2
General, administrative and other expenses
62.5
37.2
37.6
40.4
42.7
41.4
36.4
38.4
56.3
45.5
59.3
65.3
Depreciation and amortization expense
11.1
4.8
6.1
5.3
5.8
6.1
6.1
7.1
5.8
6.3
6.3
6.3
Interest expense
13.6
13.9
15.8
13.7
11.9
13.8
15.7
17.4
16.9
15.8
16.0
15.9
Total Segment Expenses
$ 266.6
$ 215.3
$ 241.9
$ 214.8
$ 248.1
$ 250.6
$ 385.4
$ 631.0
$ 784.2
$ 311.3
$ 450.3
$ 517.7
Total Segment Revenues
$ 423.7
$ 350.1
$ 398.4
$ 329.9
$ 446.2
$ 428.8
$ 723.0
$ 1,297.1
$ 1,624.2
$ 555.4
$ 876.0
$ 1,023.4
Total Segment Expenses
266.6
215.3
241.9
214.8
248.1
250.6
385.4
631.0
784.2
311.3
450.3
517.7
(=) Distributable Earnings
$ 157.1
$ 134.8
$ 156.5
$ 115.1
$ 198.1
$ 178.2
$ 337.6
$ 666.1
$ 840.0
$ 244.1
$ 425.7
$ 505.7
(-) Realized Net Performance Revenues
77.3
35.5
64.2
37.6
84.2
73.9
235.3
528.4
676.6
109.2
259.3
344.9
(-) Realized Principal Investment Income (Loss)
(2.8)
10.2
16.3
7.5
18.0
23.7
24.0
61.6
58.5
14.2
34.2
46.0
(+) Net Interest
11.0
12.1
15.3
13.4
11.2
13.6
15.2
17.2
16.4
15.4
14.8
10.8
(=) Fee Related Earnings
$ 93.6
$ 101.2
$ 91.3
$ 83.4
$ 107.1
$ 94.2
$ 93.5
$ 93.3
$ 121.3
$ 136.1
$ 147.0
$ 125.6
5|Qtr-GC DE
Global Credit Segment Results by Quarter
(Dollars in millions, except per share amounts)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
2Q'22
3Q'22
SEGMENT REVENUES
Fund management fees
$ 69.2
$ 64.1
$ 69.3
$ 77.6
$ 77.1
$ 70.6
$ 75.7
$ 81.3
$ 86.8
$ 93.7
$ 123.7
$ 128.4
Transaction and portfolio advisory fees, net and other
5.8
2.6
15.2
1.6
14.6
8.8
9.4
15.9
28.1
10.1
34.7
27.3
Fee related performance revenues
8.4
8.9
9.0
8.6
9.6
9.4
10.4
11.2
12.2
13.9
12.8
14.5
Total segment fee revenues
$ 83.4
$ 75.6
$ 93.5
$ 87.8
$ 101.3
$ 88.8
$ 95.5
$ 108.4
$ 127.1
$ 117.7
$ 171.2
$ 170.2
Realized performance revenues
0.8
21.0
5.5
-
-
0.1
-
2.1
(8.2)
13.7
19.9
63.0
Realized principal investment income (loss)
3.8
5.1
5.3
4.5
3.8
5.9
9.8
7.4
8.8
10.3
8.7
9.2
Interest income
3.4
3.1
2.6
2.3
2.4
2.0
1.2
1.3
1.1
1.5
2.6
4.5
Total Segment Revenues
$ 91.4
$ 104.8
$ 106.9
$ 94.6
$ 107.5
$ 96.8
$ 106.5
$ 119.2
$ 128.8
$ 143.2
$ 202.4
$ 246.9
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 45.2
$ 49.1
$ 54.5
$ 52.5
$ 50.0
$ 53.7
$ 55.6
$ 58.7
$ 69.1
$ 67.2
$ 77.1
$ 69.9
Realized performance revenues related compensation
0.4
9.7
2.5
-
-
-
-
1.0
(3.7)
6.7
9.4
28.9
Total compensation and benefits
$ 45.6
$ 58.8
$ 57.0
$ 52.5
$ 50.0
$ 53.7
$ 55.6
$ 59.7
$ 65.4
$ 73.9
$ 86.5
$ 98.8
General, administrative and other expenses
21.0
5.6
13.1
12.0
15.0
11.8
13.0
14.7
23.6
23.5
20.3
26.4
Depreciation and amortization expense
3.4
1.6
1.8
1.8
1.8
1.9
2.0
2.3
1.8
2.0
1.9
2.1
Interest expense
7.1
7.0
6.9
6.3
6.4
6.3
6.3
6.8
6.7
8.2
7.4
7.9
Total Segment Expenses
$ 77.1
$ 73.0
$ 78.8
$ 72.6
$ 73.2
$ 73.7
$ 76.9
$ 83.5
$ 97.5
$ 107.6
$ 116.1
$ 135.2
Total Segment Revenues
$ 91.4
$ 104.8
$ 106.9
$ 94.6
$ 107.5
$ 96.8
$ 106.5
$ 119.2
$ 128.8
$ 143.2
$ 202.4
$ 246.9
Total Segment Expenses
77.1
73.0
78.8
72.6
73.2
73.7
76.9
83.5
97.5
107.6
116.1
135.2
(=) Distributable Earnings
$ 14.3
$ 31.8
$ 28.1
$ 22.0
$ 34.3
$ 23.1
$ 29.6
$ 35.7
$ 31.3
$ 35.6
$ 86.3
$ 111.7
(-) Realized Net Performance Revenues
0.4
11.3
3.0
-
-
0.1
-
1.1
(4.5)
7.0
10.5
34.1
(-) Realized Principal Investment Income (Loss)
3.8
5.1
5.3
4.5
3.8
5.9
9.8
7.4
8.8
10.3
8.7
9.2
(+) Net Interest
3.7
3.9
4.3
4.0
4.0
4.3
5.1
5.5
5.6
6.7
4.8
3.4
(=) Fee Related Earnings
$ 13.8
$ 19.3
$ 24.1
$ 21.5
$ 34.5
$ 21.4
$ 24.9
$ 32.7
$ 32.6
$ 25.0
$ 71.9
$ 71.8
6|Qtr-GIS DE
Global Investment Solutions Segment Results by Quarter
(Dollars in millions, except per share amounts)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
2Q'22
3Q'22
SEGMENT REVENUES
Fund management fees
$ 39.8
$ 39.8
$ 45.6
$ 54.8
$ 52.8
$ 52.0
$ 60.3
$ 59.3
$ 56.8
$ 56.3
$ 55.5
$ 55.6
Transaction and portfolio advisory fees, net and other
-
-
-
-
0.1
0.3
-
-
0.2
-
-
-
Total segment fee revenues
$ 39.8
$ 39.8
$ 45.6
$ 54.8
$ 52.9
$ 52.3
$ 60.3
$ 59.3
$ 57.0
$ 56.3
$ 55.5
$ 55.6
Realized performance revenues
24.7
85.4
30.7
16.3
22.7
34.2
25.1
45.9
81.6
22.7
26.2
73.4
Realized principal investment income (loss)
0.7
0.6
0.5
0.8
0.4
0.4
4.0
2.3
3.1
1.8
0.9
1.5
Interest income
0.4
0.4
0.1
0.1
-
-
0.1
-
0.1
0.1
0.2
0.9
Total Segment Revenues
$ 65.6
$ 126.2
$ 76.9
$ 72.0
$ 76.0
$ 86.9
$ 89.5
$ 107.5
$ 141.8
$ 80.9
$ 82.8
$ 131.4
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 26.1
$ 25.0
$ 25.0
$ 30.3
$ 33.2
$ 29.4
$ 28.2
$ 25.7
$ 24.9
$ 25.6
$ 28.4
$ 30.1
Realized performance revenues related compensation
23.8
84.0
27.0
14.0
19.6
32.2
23.0
41.9
71.0
20.9
25.1
61.3
Total compensation and benefits
$ 49.9
$ 109.0
$ 52.0
$ 44.3
$ 52.8
$ 61.6
$ 51.2
$ 67.6
$ 95.9
$ 46.5
$ 53.5
$ 91.4
General, administrative and other expenses
11.1
5.5
7.4
9.6
15.3
8.4
6.2
6.9
10.5
7.3
8.3
9.1
Depreciation and amortization expense
2.0
1.0
1.3
1.1
1.1
1.1
1.1
1.3
1.0
1.2
1.3
1.2
Interest expense
2.3
2.3
2.4
2.3
2.3
2.2
2.8
2.9
2.9
2.8
2.9
2.7
Total Segment Expenses
$ 65.3
$ 117.8
$ 63.1
$ 57.3
$ 71.5
$ 73.3
$ 61.3
$ 78.7
$ 110.3
$ 57.8
$ 66.0
$ 104.4
Total Segment Revenues
$ 65.6
$ 126.2
$ 76.9
$ 72.0
$ 76.0
$ 86.9
$ 89.5
$ 107.5
$ 141.8
$ 80.9
$ 82.8
$ 131.4
Total Segment Expenses
65.3
117.8
63.1
57.3
71.5
73.3
61.3
78.7
110.3
57.8
66.0
104.4
(=) Distributable Earnings
$ 0.3
$ 8.4
$ 13.8
$ 14.7
$ 4.5
$ 13.6
$ 28.2
$ 28.8
$ 31.5
$ 23.1
$ 16.8
$ 27.0
(-) Realized Net Performance Revenues
0.9
1.4
3.7
2.3
3.1
2.0
2.1
4.0
10.6
1.8
1.1
12.1
(-) Realized Principal Investment Income (Loss)
0.7
0.6
0.5
0.8
0.4
0.4
4.0
2.3
3.1
1.8
0.9
1.5
(+) Net Interest
1.9
1.9
2.3
2.2
2.3
2.2
2.7
2.9
2.8
2.7
2.7
1.8
(=) Fee Related Earnings
$ 0.6
$ 8.3
$ 11.9
$ 13.8
$ 3.3
$ 13.4
$ 24.8
$ 25.4
$ 20.6
$ 22.2
$ 17.5
$ 15.2
7|Yr-Total DE
Carlyle Total Segment Results by Year
(Dollars in millions, except per share amounts)
FY'16
FY'17
FY'18
FY'19
FY'20
FY'21
YTD 3Q'22
SEGMENT REVENUES
Fund management fees
$ 1,085.8
$ 1,081.0
$ 1,337.2
$ 1,537.8
$ 1,523.1
$ 1,654.6
$ 1,484.5
Transaction and portfolio advisory fees, net and other
60.6
59.0
63.2
53.5
56.9
97.0
93.4
Fee related performance revenues1
-
-
24.6
33.1
36.1
43.2
100.2
Total segment fee revenues
$ 1,146.4
$ 1,140.0
$ 1,425.0
$ 1,624.4
$ 1,616.1
$ 1,794.8
$ 1,678.1
Realized performance revenues
1,215.8
1,085.3
682.4
374.3
586.1
2,938.6
1,521.0
Realized principal investment income (loss)2
44.9
(25.8)
48.1
87.0
73.0
209.5
126.8
Interest income
10.2
16.7
30.4
24.4
14.3
7.2
16.5
Total Segment Revenues
$ 2,417.3
$ 2,216.2
$ 2,185.9
$ 2,110.1
$ 2,289.5
$ 4,950.1
$ 3,342.4
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 601.3
$ 658.0
$ 740.7
$ 792.1
$ 821.5
$ 891.5
$ 752.2
Realized performance revenues related compensation
590.5
532.7
362.7
210.2
339.8
1,409.0
741.0
Total compensation and benefits3
$ 1,191.8
$ 1,190.7
$ 1,103.4
$ 1,002.3
$ 1,161.3
$ 2,300.5
$ 1,493.2
General, administrative and other expenses
483.5
258.9
298.8
331.3
241.4
267.6
265.0
Depreciation and amortization expense
29.0
31.1
35.1
48.2
33.5
37.6
28.6
Interest expense
61.3
65.5
74.7
81.7
91.2
100.7
79.6
Total Segment Expenses
$ 1,765.6
$ 1,546.2
$ 1,512.0
$ 1,463.5
$ 1,527.4
$ 2,706.4
$ 1,866.4
Total Segment Revenues
$ 2,417.3
$ 2,216.2
$ 2,185.9
$ 2,110.1
$ 2,289.5
$ 4,950.1
$ 3,342.4
Total Segment Expenses
1,765.6
1,546.2
1,512.0
1,463.5
1,527.4
2,706.4
1,866.4
(=) Distributable Earnings
$ 651.7
$ 670.0
$ 673.9
$ 646.6
$ 762.1
$ 2,243.7
$ 1,476.0
(-) Realized Net Performance Revenues
625.3
552.6
319.7
164.1
246.3
1,529.6
780.0
(-) Realized Principal Investment Income (Loss)
44.9
(25.8)
48.1
87.0
73.0
209.5
126.8
(+) Net Interest
51.1
48.8
44.3
57.3
76.9
93.5
63.1
(=) Fee Related Earnings
$ 32.6
$ 192.0
$ 350.4
$ 452.8
$ 519.7
$ 598.1
$ 632.3
After-tax Distributable Earnings, per common share4
$ 1.85
1.88
$ 1.78
$ 1.70
$ 2.05
$ 5.01
$ 3.33
Dividend per common share5
$ 1.55
1.41
$ 1.34
$ 1.18
$ 1.00
$ 1.00
$ 0.98
(1) Fee related performance revenues are the realized portion of performance revenues that are measured and received on a recurring basis, are not dependent on the disposition of investments, and which are not at risk of giveback. The related compensation expense is included in cash-based compensation and benefits.
(2) Realized principal investment income in 2019 includes $72 million of gain upon the final resolution of French tax litigation concerning a European Real Estate fund, reversing in part a loss that was recognized in 2015.
(3) Total Segment compensation and benefits exclude equity-based compensation. Details on equity-based compensation are shown on page 12. These amounts include equity-based compensation reflected in (i) principal investment income and (ii) general, administration and other expense in our U.S. GAAP statement of operations, and exclude amounts related to shares issued in conjunction with a previous acquisition.
(4) In the earnings presentation attached as an exhibit to our Form 8-K for the quarter ended September 30, 2022 and furnished to the SEC on November 8, 2022, reconciliation of Distributable Earnings to After-tax Distributable Earnings per common share is provided on page 29.
(5) In February 2022, our Board of Directors approved an increase in the common stock dividend to an annual rate of $1.30 per share ($0.325 per common share on a quarterly basis), commencing with the first quarter 2022 dividend to be paid in May 2022. Prior to the first quarter 2022 dividend, our dividend policy for our common stock was an annual rate of $1.00 per share of common stock ($0.25 per common share on a quarterly basis). The declaration and payment of any dividends to holders of our common stock are subject to the discretion of our Board of Directors, which may change our dividend policy at any time or from time to time, and the terms of our certificate of incorporation. There can be no assurance that dividends will be made as intended or at all or that any particular dividend policy will be maintained.
8|Yr-GPE DE
Global Private Equity Segment Results by Year
(Dollars in millions, except per share amounts)
FY'16
FY'17
FY'18
FY'19
FY'20
FY'21
YTD 3Q'22
SEGMENT REVENUES
Fund management fees
$ 750.0
$ 734.6
$ 952.0
$ 1,106.6
$ 1,042.0
$ 1,111.8
$ 971.3
Transaction and portfolio advisory fees, net and other
53.5
51.1
56.7
38.9
22.8
34.3
21.3
Fee related performance revenues
-
-
-
-
-
-
59.0
Total segment fee revenues
$ 803.5
$ 785.7
$ 1,008.7
$ 1,145.5
$ 1,064.8
$ 1,146.1
$ 1,051.6
Realized performance revenues
1,113.6
923.5
566.2
301.8
404.5
2,757.8
1,302.1
Realized principal investment income (loss)
39.7
(37.8)
40.1
73.3
52.0
167.8
94.4
Interest income
5.1
8.5
13.7
8.7
3.3
1.4
6.7
Total Segment Revenues
$ 1,961.9
$ 1,679.9
$ 1,628.7
$ 1,529.3
$ 1,524.6
$ 4,073.1
$ 2,454.8
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 400.8
$ 468.8
$ 508.3
$ 510.6
$ 501.9
$ 546.2
$ 453.9
Realized performance revenues related compensation
509.7
414.5
261.9
145.2
183.0
1,243.6
588.7
Total compensation and benefits
$ 910.5
$ 883.3
$ 770.2
$ 655.8
$ 684.9
$ 1,789.8
$ 1,042.6
General, administrative and other expenses1
199.0
216.6
231.7
215.2
157.9
172.5
170.1
Depreciation and amortization expense
19.5
22.4
24.1
32.1
22.0
25.1
18.9
Interest expense
44.2
44.9
45.2
46.8
55.3
63.8
47.7
Total Segment Expenses
$ 1,173.2
$ 1,167.2
$ 1,071.2
$ 949.9
$ 920.1
$ 2,051.2
$ 1,279.3
Total Segment Revenues
$ 1,961.9
$ 1,679.9
$ 1,628.7
$ 1,529.3
$ 1,524.6
$ 4,073.1
$ 2,454.8
Total Segment Expenses
1,173.2
1,167.2
1,071.2
949.9
920.1
2,051.2
1,279.3
(=) Distributable Earnings
$ 788.7
$ 512.7
$ 557.5
$ 579.4
$ 604.5
$ 2,021.9
$ 1,175.5
(-) Realized Net Performance Revenues
603.9
509.0
304.3
156.6
221.5
1,514.2
713.4
(-) Realized Principal Investment Income (Loss)
39.7
(37.8)
40.1
73.3
52.0
167.8
94.4
(+) Net Interest
39.1
36.4
31.5
38.1
52.0
62.4
41.0
(=) Fee Related Earnings
$ 184.2
$ 77.9
$ 244.6
$ 387.6
$ 383.0
$ 402.3
$ 408.7
(1) General, administrative and other expenses ("G&A") in 2020 G&A includes the positive impact of a $21 million recovery of litigation costs (a contra expense).
9|Yr-GC DE
Global Credit Segment Results by Year
(Dollars in millions, except per share amounts)
FY'16
FY'17
FY'18
FY'19
FY'20
FY'21
YTD 3Q'22
SEGMENT REVENUES
Fund management fees
$ 195.5
$ 191.5
$ 218.4
$ 274.1
$ 288.1
$ 314.4
$ 345.8
Transaction and portfolio advisory fees, net and other
5.8
7.5
6.1
14.6
34.0
62.2
72.1
Fee related performance revenues
-
-
24.6
33.1
36.1
43.2
41.2
Total segment fee revenues
$ 201.3
$ 199.0
$ 249.1
$ 321.8
$ 358.2
$ 419.8
$ 459.1
Realized performance revenues
36.6
75.4
9.8
1.8
26.5
(6.0)
96.6
Realized principal investment income (loss)
5.1
11.9
7.9
12.0
18.7
31.9
28.2
Interest income
4.7
7.1
15.3
14.2
10.4
5.6
8.6
Total Segment Revenues
$ 247.7
$ 293.4
$ 282.1
$ 349.8
$ 413.8
$ 451.3
$ 592.5
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 120.0
$ 104.5
$ 140.4
$ 185.2
$ 206.1
$ 237.1
$ 214.2
Realized performance revenues related compensation
17.6
35.0
4.5
0.4
12.2
(2.7)
45.0
Total compensation and benefits
$ 137.6
$ 139.5
$ 144.9
$ 185.6
$ 218.3
$ 234.4
$ 259.2
General, administrative and other expenses1
250.0
7.4
30.5
78.9
45.7
63.1
70.2
Depreciation and amortization expense
6.2
5.1
6.3
9.9
7.0
8.0
6.0
Interest expense
11.3
14.5
22.9
27.0
26.6
26.1
23.5
Total Segment Expenses
$ 405.1
$ 166.5
$ 204.6
$ 301.4
$ 297.6
$ 331.6
$ 358.9
Total Segment Revenues
$ 247.7
$ 293.4
$ 282.1
$ 349.8
$ 413.8
$ 451.3
$ 592.5
Total Segment Expenses
405.1
166.5
204.6
301.4
297.6
331.6
358.9
(=) Distributable Earnings
$ (157.4)
$ 126.9
$ 77.5
$ 48.4
$ 116.2
$ 119.7
$ 233.6
(-) Realized Net Performance Revenues
19.0
40.4
5.3
1.4
14.3
(3.3)
51.6
(-) Realized Principal Investment Income (Loss)
5.1
11.9
7.9
12.0
18.7
31.9
28.2
(+) Net Interest
6.6
7.4
7.6
12.8
16.2
20.5
14.9
(=) Fee Related Earnings
$ (174.9)
$ 82.0
$ 71.9
$ 47.8
$ 99.4
$ 111.6
$ 168.7
(1) General, administrative and other expenses ("G&A") in 2020 G&A includes the positive impact of a $6 million recovery of litigation costs (a contra expense).
10|Yr-GIS DE
Global Investment Solutions Segment Results by Year
(Dollars in millions, except per share amounts)
FY'16
FY'17
FY'18
FY'19
FY'20
FY'21
YTD 3Q'22
SEGMENT REVENUES
Fund management fees
$ 140.3
$ 154.9
$ 166.8
$ 157.1
$ 193.0
$ 228.4
$ 167.4
Transaction and portfolio advisory fees, net and other
1.3
0.4
0.4
-
0.1
0.5
-
Total segment fee revenues
$ 141.6
$ 155.3
$ 167.2
$ 157.1
$ 193.1
$ 228.9
$ 167.4
Realized performance revenues
65.6
86.4
106.4
70.7
155.1
186.8
122.3
Realized principal investment income (loss)
0.1
0.1
0.1
1.7
2.3
9.8
4.2
Interest income
0.4
1.1
1.4
1.5
0.6
0.2
1.2
Total Segment Revenues
$ 207.7
$ 242.9
$ 275.1
$ 231.0
$ 351.1
$ 425.7
$ 295.1
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits
$ 80.5
$ 84.7
$ 92.0
$ 96.3
$ 113.5
$ 108.2
$ 84.1
Realized performance revenues related compensation
63.2
83.2
96.3
64.6
144.6
168.1
107.3
Total compensation and benefits
$ 143.7
$ 167.9
$ 188.3
$ 160.9
$ 258.1
$ 276.3
$ 191.4
General, administrative and other expenses1
34.5
34.9
36.6
37.2
37.8
32.0
24.7
Depreciation and amortization expense
3.3
3.6
4.7
6.2
4.5
4.5
3.7
Interest expense
5.8
6.1
6.6
7.9
9.3
10.8
8.4
Total Segment Expenses
$ 187.3
$ 212.5
$ 236.2
$ 212.2
$ 309.7
$ 323.6
$ 228.2
Total Segment Revenues
$ 207.7
$ 242.9
$ 275.1
$ 231.0
$ 351.1
$ 425.7
$ 295.1
Total Segment Expenses
187.3
212.5
236.2
212.2
309.7
323.6
228.2
(=) Distributable Earnings
$ 20.4
$ 30.4
$ 38.9
$ 18.8
$ 41.4
$ 102.1
$ 66.9
(-) Realized Net Performance Revenues
2.4
3.2
10.1
6.1
10.5
18.7
15.0
(-) Realized Principal Investment Income (Loss)
0.1
0.1
0.1
1.7
2.3
9.8
4.2
(+) Net Interest
5.4
5.0
5.2
6.4
8.7
10.6
7.2
(=) Fee Related Earnings
$ 23.3
$ 32.1
$ 33.9
$ 17.4
$ 37.3
$ 84.2
$ 54.9
(1) General, administrative and other expenses ("G&A") in 2020 G&A includes the positive impact of a $3 million recovery of litigation costs (a contra expense).
11|Qtr-Total GAAP
Carlyle U.S. GAAP Results1 by Quarter
(Dollars in millions, except per share amounts)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
2Q'22
3Q'22
REVENUES
Fund management fees
$ 372.4
$ 355.9
$ 371.8
$ 363.8
$ 394.5
$ 381.0
$ 394.4
$ 407.5
$ 484.6
$ 450.5
$ 546.5
$ 535.9
Incentive fees
9.1
8.9
9.0
9.1
10.0
9.5
10.4
13.1
15.8
14.0
13.5
15.1
Investment income (loss), including performance allocations2
3.3
(1,190.9)
679.2
584.1
1,022.8
1,965.2
2,218.4
1,134.9
1,403.4
1,029.8
394.6
422.3
Revenue from consolidated entities
49.7
53.0
55.2
56.3
62.3
61.1
62.1
62.1
67.9
61.7
63.2
79.7
All other revenues
25.8
27.4
15.8
21.3
25.1
20.4
21.0
21.9
27.4
25.8
31.2
35.5
Total Revenues
$ 460.3
$ (745.7)
$ 1,131.0
$ 1,034.6
$ 1,514.7
$ 2,437.2
$ 2,706.3
$ 1,639.5
$ 1,999.1
$ 1,581.8
$ 1,049.0
$ 1,088.5
EXPENSES
Cash-based compensation and benefits
$ 201.5
$ 204.3
$ 212.5
$ 222.2
$ 210.6
$ 228.5
$ 231.8
$ 224.9
$ 222.8
$ 254.3
$ 274.0
$ 251.4
Equity-based compensation
32.2
29.1
30.5
18.7
26.7
32.4
47.2
42.4
41.1
39.7
45.4
54.2
Performance allocations and incentive fee related compensation
45.1
(442.5)
535.6
250.6
435.4
866.6
994.0
495.2
605.2
370.7
207.0
163.5
General, administrative and other expenses
145.9
69.6
80.2
91.1
108.4
91.7
109.1
99.6
131.3
106.3
131.7
149.2
Expenses from consolidated entities
35.7
45.6
39.3
37.2
41.4
42.4
46.5
44.6
45.0
42.8
40.6
53.7
Interest and other non-operating expenses (income)
23.2
24.1
26.4
23.6
12.7
23.6
22.4
31.4
37.4
28.1
27.1
27.6
Total Expenses
$ 483.6
$ (69.8)
$ 924.5
$ 643.4
$ 835.2
$ 1,285.2
$ 1,451.0
$ 938.1
$ 1,082.8
$ 841.9
$ 725.8
$ 699.6
Net investment gains (losses) of consolidated funds
$ (17.0)
$ (113.1)
$ 50.3
$ 23.9
$ 17.6
$ 12.3
$ (2.6)
$ (0.1)
$ (7.1)
$ 2.8
$ (23.5)
$ (30.3)
Income (loss) before provision for income taxes3
(40.3)
(789.0)
256.8
415.1
697.1
1,164.3
1,252.7
701.3
909.2
742.7
299.7
358.6
Provision (benefit) for income taxes
0.1
(80.0)
52.3
82.4
142.5
273.4
306.2
153.9
248.8
147.9
50.8
76.2
Net income (loss)
(40.4)
(709.0)
204.5
332.7
554.6
890.9
946.5
547.4
660.4
594.8
248.9
282.4
Net income (loss) attributable to non-controlling interests4
(32.1)
(97.0)
58.6
37.2
35.8
21.6
21.5
14.6
12.8
-
-
-
Net income (loss) attributable to The Carlyle Group Inc.
(8.3)
(612.0)
145.9
295.5
518.8
869.3
925.0
532.8
647.6
571.6
245.4
280.8
Net income attributable to Series A Preferred Unitholders
-
-
-
-
-
-
-
-
-
-
-
-
Series A Preferred Units redemption premium
-
-
-
-
-
-
-
-
-
-
-
-
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders
$ (8.3)
$ (612.0)
$ 145.9
$ 295.5
$ 518.8
$ 869.3
$ 925.0
$ 532.8
$ 647.6
$ 571.6
$ 245.4
$ 280.8
Net income (loss) attributable to The Carlyle Group Inc. per common share
Basic
$ (0.07)
$ (1.76)
$ 0.42
$ 0.84
$ 1.47
$ 2.45
$ 2.61
$ 1.50
$ 1.82
$ 1.60
$ 0.68
$ 0.77
Diluted
$ (0.08)
$ (1.76)
$ 0.41
$ 0.82
$ 1.44
$ 2.41
$ 2.55
$ 1.46
$ 1.77
$ 1.57
$ 0.67
$ 0.77
Supplemental Information
Income (loss) before provision for taxes margin5
(8.8)%
105.8 %
22.7 %
40.1 %
46.0 %
47.8 %
46.3 %
42.8 %
45.5 %
47.0 %
28.6 %
32.9 %
Effective tax rate
(0.2)%
10.1 %
20.4 %
19.9 %
20.4 %
23.5 %
24.4 %
21.9 %
27.4 %
19.9 %
17.0 %
21.2 %
Net performance revenues6
$ 44.9
$ (495.1)
$ 656.2
$ 226.8
$ 468.9
$ 919.5
$ 1,086.7
$ 479.3
$ 638.1
$ 339.5
$ 130.9
$ 134.6
Note: Fund management fees increased 32% and 30% in 3Q'22 and YTD 3Q'22, respectively, from the comparable periods in 2021, reflecting the activation of fees on our latest vintage U.S. Buyout, U.S. real estate and Europe Technology carry funds, the impact of investment activity in funds on which management fees are based on invested capital, as well as management fees from the CBAM acquisition in 1Q'22, the Fortitude strategic advisory services agreement, which was effective April 1, 2022, and the Abingworth acquisition in 3Q'22. These increases were partially offset by the impacts of realizations in funds on which management fees are based on invested capital and basis stepdowns from commitments to invested capital on prior vintage funds.
Note: Investment income (loss), including performance allocations, YTD 3Q'22 reflects 10% appreciation in our carry portfolio, compared to 33% in YTD 3Q'21. Investment income in YTD 3Q'22 also includes an investment loss of $177 million related to the dilution of our ownership in Fortitude in connection with its recent capital raise and initial drawdown (see Note 2 for additional information).
Equity-based compensation in 3Q'22 and YTD 3Q'22 include approximately $15 million of net expense related to the modification of, and accelerated expense associated with, certain restricted stock awards in connection with the departure of our former chief executive officer.
Note: General, administrative and other expenses ("G&A") in 3Q'21 includes $15 million in currency translation loss previously recorded in accumulated other comprehensive income and related to the sale of our local Brazilian management entity on August 31, 2021. 2Q'21 G&A also include $27 million in right-of-use asset impairment related to the sublease of a portion of our office space in New York. The currency translation loss and impairment charges are excluded from our Non-GAAP financial metrics. In 1Q'20, G&A includes the positive impact of a $30 million recovery of litigation costs (a contra expense). Excluding this, G&A would have been $100 million in 1Q'20.
Note: Provision for (benefit) for income taxes in 3Q'21 reflects higher pre-tax income. Provision (benefit) for income taxes in 1Q'20 reflects a tax benefit of $170 million related to the net loss during the quarter, net of $90 million in expense related to a reduction in the net deferred tax asset resulting from the Company's conversion from a partnership to a corporation on January 1, 2020 (the "Conversion").
(1) On January 1, 2020, The Carlyle Group L.P. (the "Partnership") completed its conversion from a Delaware limited partnership to a Delaware corporation, The Carlyle Group Inc. Information reported for periods prior to the Conversion on January 1, 2020 reflect the results of the Partnership. References to The Carlyle Group Inc., our common stock and our dividends in periods prior to the Conversion refer to The Carlyle Group L.P., its common units and distributions. For periods subsequent to the Conversion, Net income (loss) attributable to Carlyle Holdings, refers to Net income (loss) of The Carlyle Group Inc. and its consolidated subsidiaries, net of non-controlling interests in consolidated entities.
(2) In connection with the initial drawdown of the Fortitude capital raise in Q2 2022, our indirect ownership was diluted from 19.9% to 13.5%, resulting in a $177 million investment loss in our GAAP results, which is excluded from our Total Segment results. At the time the remaining capital is called by Fortitude, our indirect ownership will further decrease to 10.5% and we expect to record an additional reduction in carrying value and related loss.
(3) Income (loss) before provision for income taxes is the GAAP measure that is most directly comparable to Distributable Earnings, which management uses to measure the performance of the business. In the earnings presentation attached as an exhibit to our Form 8-K for the quarter ended September 30, 2022 and furnished to the SEC on November 8, 2022, a full reconciliation is included starting on page 30. In that document, see "Non-GAAP Financial Measures" for additional information.
(4) Prior to the Conversion on January 1, 2020, Net income (loss) attributable to non-controlling interests includes the non-controlling interests in Carlyle Holdings.
(5) Income (loss) before provision for taxes margin is equal to Income (loss) before provision for taxes, divided by Total revenues.
(6) Net performance revenues are equal to Performance revenues less Performance revenues related compensation expense.
12|Yr-Total GAAP
Carlyle U.S. GAAP Results1 by Year
(Dollars in millions, except per share amounts)
FY'16
FY'17
FY'18
FY'19
FY'20
FY'21
YTD 3Q'22
REVENUES
Fund management fees
$ 1,076.1
$ 1,026.9
$ 1,272.0
$ 1,476.2
$ 1,486.0
$ 1,667.5
$ 1,532.9
Incentive fees
36.4
35.3
30.2
35.9
37.0
48.8
42.6
Investment income (loss), including performance allocations2
875.9
2,290.6
809.2
1,568.4
1,095.2
6,721.9
1,846.7
Revenue from consolidated entities
262.0
286.7
214.5
199.2
226.8
253.2
204.6
All other revenues
23.9
36.7
101.3
97.3
89.6
90.7
92.5
Total Revenues
$ 2,274.3
$ 3,676.2
$ 2,427.2
$ 3,377.0
$ 2,934.6
$ 8,782.1
$ 3,719.3
EXPENSES
Cash-based compensation and benefits
$ 647.1
$ 652.7
$ 746.7
$ 833.4
$ 849.6
$ 908.0
$ 779.7
Equity-based compensation
334.6
320.3
239.9
140.0
105.0
163.1
139.3
Performance allocations and incentive fee related compensation
353.1
988.3
376.3
436.7
779.1
2,961.0
741.2
General, administrative and other expenses
521.1
276.8
460.7
494.4
349.3
431.7
387.2
Expenses from consolidated entities
336.1
400.1
164.6
131.8
163.5
178.5
137.1
Interest and other non-operating expenses (income)
50.1
(5.9)
83.3
83.4
86.8
114.8
82.8
Total Expenses
$ 2,242.1
$ 2,632.3
$ 2,071.5
$ 2,119.7
$ 2,333.3
$ 4,757.1
$ 2,267.3
Net investment gains (losses) of consolidated funds
$ 13.1
$ 88.4
$ 4.5
$ (23.9)
$ (21.3)
$ 2.5
$ (51.0)
Income (loss) before provision for income taxes3
45.3
1,132.3
360.2
1,233.4
580.0
4,027.5
1,401.0
Provision (benefit) for income taxes
30.0
124.9
31.3
49.0
197.2
982.3
274.9
Net income (loss)
15.3
1,007.4
328.9
1,184.4
382.8
3,045.2
1,126.1
Net income (loss) attributable to non-controlling interests in consolidated entities4
8.9
763.3
212.4
803.5
34.6
70.5
28.3
Net income (loss) attributable to The Carlyle Group Inc.
6.4
244.1
116.5
380.9
348.2
2,974.7
1,097.8
Net income attributable to Series A Preferred Unitholders
-
6.0
23.6
19.1
-
-
-
Series A Preferred Units redemption premium
-
-
-
16.5
-
-
-
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders
$ 6.4
$ 238.1
$ 92.9
$ 345.3
$ 348.2
$ 2,974.7
$ 1,097.8
Net income (loss) attributable to The Carlyle Group Inc. per common share
Basic
$ 0.08
$ 2.58
$ 0.89
$ 3.05
$ 0.99
$ 8.37
$ 3.04
Diluted
$ (0.08)
$ 2.38
$ 0.82
$ 2.82
$ 0.97
$ 8.20
$ 3.00
Supplemental Information
Income (loss) before provision for taxes margin5
2.0 %
30.8 %
14.8 %
36.5 %
19.8 %
45.9 %
37.7 %
Effective tax rate
66.2 %
11.0 %
8.7 %
4.0 %
34.0 %
24.4 %
19.6 %
Net performance revenues6
$ 393.7
$ 1,177.8
$ 246.6
$ 362.4
$ 856.8
$ 3,123.6
$ 605.0
Note: Fund management fees increased 32% and 30% in 3Q'22 and YTD 3Q'22, respectively, from the comparable periods in 2021, reflecting the activation of fees on our latest vintage U.S. Buyout, U.S. real estate and Europe Technology carry funds, the impact of investment activity in funds on which management fees are based on invested capital, as well as management fees from the CBAM acquisition in 1Q'22, the Fortitude strategic advisory services agreement, which was effective April 1, 2022, and the Abingworth acquisition in 3Q'22. These increases were partially offset by the impacts of realizations in funds on which management fees are based on invested capital and basis stepdowns from commitments to invested capital on prior vintage funds.
Note: Investment income (loss), including performance allocations, YTD 3Q'22 reflects 10% appreciation in our carry portfolio, compared to 33% in YTD 3Q'21. Investment income in YTD 3Q'22 also includes an investment loss of $177 million related to the dilution of our ownership in Fortitude in connection with its recent capital raise and initial drawdown (see Note 2 for additional information).
Note: General, administrative and other expenses ("G&A") in FY'21 include $15 million in currency translation loss previously recorded in accumulated other comprehensive income and related to the sale of our local Brazilian management entity, as well as $27 million in right-of-use asset impairment related to the sublease of a portion of our office space in New York. These amounts are excluded from our Non-GAAP financial metrics. In FY'20, G&A includes the positive impact of a $30 million recovery of litigation costs (a contra expense). Excluding this, G&A would have been $379 million in FY'20.
Note: Provision (benefit) for income taxes for FY'20 includes $86 million as a provision for income taxes as a result of a reduction in our net deferred tax asset related to our conversion from a partnership to a corporation on January 1, 2020. Excluding this impact from Conversion, our effective income tax rate for the FY'20 would have been approximately 19%.
(1) On January 1, 2020, The Carlyle Group L.P. (the "Partnership") completed its conversion from a Delaware limited partnership to a Delaware corporation, The Carlyle Group Inc. Information reported for periods prior to the Conversion on January 1, 2020 reflect the results of the Partnership. References to The Carlyle Group Inc., our common stock and our dividends in periods prior to the Conversion refer to The Carlyle Group L.P., its common units and distributions. For periods subsequent to the Conversion, Net income (loss) attributable to Carlyle Holdings, refers to Net income (loss) of The Carlyle Group Inc. and its consolidated subsidiaries, net of non-controlling interests in consolidated entities.
(2) In connection with the initial drawdown of the Fortitude capital raise in Q2 2022, our indirect ownership was diluted from 19.9% to 13.5%, resulting in a $177 million investment loss in our GAAP results, which is excluded from our Total Segment results. At the time the remaining capital is called by Fortitude, our indirect ownership will further decrease to 10.5% and we expect to record an additional reduction in carrying value and related loss.
(3) Income (loss) before provision for income taxes is the GAAP measure that is most directly comparable to Distributable Earnings, which management uses to measure the performance of the business. In the earnings presentation attached as an exhibit to our Form 8-K for the quarter ended September 30, 2022 and furnished to the SEC on November 8, 2022, a full reconciliation is included starting on page 30. In that document, see "Non-GAAP Financial Measures" for additional information.
(4) Prior to the Conversion on January 1, 2020, Net income (loss) attributable to non-controlling interests includes the non-controlling interests in Carlyle Holdings.
(5) Income (loss) before provision for taxes margin is equal to Income (loss) before provision for Taxes, divided by Total revenues.
(6) Net performance revenues are equal to Performance revenues less Performance revenues related compensation expense.
13|Qtr-Rec-GAAP to Non-GAAP
Carlyle Reconciliation of U.S. GAAP to Non-GAAP Results by Quarter
(Dollars in millions, except per share amounts)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
2Q'22
3Q'22
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES
$ (40.3)
$ (789.0)
$ 256.8
$ 415.1
$ 697.1
$ 1,164.3
$ 1,252.7
$ 701.3
$ 909.2
$ 742.7
$ 299.7
$ 358.6
Adjustments:
Net unrealized performance revenues
69.7
528.9
(587.4)
(180.3)
(359.9)
(846.4)
(844.0)
44.8
39.4
(466.6)
(70.8)
152.2
Unrealized principal investment (income) loss1
81.3
264.7
459.5
(81.0)
(87.0)
(131.3)
(78.8)
(70.4)
(71.3)
(23.7)
27.1
29.9
Principal investment loss from dilution of indirect investment in Fortitude2
-
-
-
-
-
-
-
-
-
-
176.9
-
Adjusted unrealized principal investment income from investment in Fortitude
(5.7)
22.8
81.6
-
-
-
-
-
-
-
-
-
Equity-based compensation3
34.9
31.7
34.6
21.1
29.2
34.9
50.3
44.3
43.4
40.7
48.3
56.0
Acquisition or disposition related charges, including amortization of intangibles and impairment
13.4
3.0
7.1
18.5
9.5
19.0
11.3
24.4
(17.0)
29.1
53.4
42.4
Tax (expense) benefit associated with certain foreign performance revenues
(1.0)
11.2
0.7
(7.8)
(12.0)
(6.0)
(3.4)
(2.4)
(5.3)
(0.8)
-
3.8
Net (income) loss attributable to non-controlling interests in consolidated entities
9.2
97.0
(58.6)
(37.2)
(35.8)
(21.6)
(21.5)
(14.6)
(12.8)
(23.2)
(3.5)
(1.6)
Lease assignment and termination costs / Right-of-use asset impairment
-
-
-
-
-
-
26.8
-
-
-
-
-
Debt extinguishment costs
-
-
-
-
-
-
-
-
10.2
-
-
-
Other adjustments, including severance and Conversion costs in 2020
10.2
4.7
4.1
3.4
(4.2)
2.0
2.0
3.2
7.0
4.6
(2.3)
3.1
DISTRIBUTABLE EARNINGS
$ 171.7
$ 175.0
$ 198.4
$ 151.8
$ 236.9
$ 214.9
$ 395.4
$ 730.6
$ 902.8
$ 302.8
$ 528.8
$ 644.4
Realized net performance revenues
78.6
48.2
70.9
39.9
87.3
76.0
237.4
533.5
682.7
118.0
270.9
391.1
Realized principal investment income (loss)
1.7
15.9
22.1
12.8
22.2
30.0
37.8
71.3
70.4
26.3
43.8
56.7
Net interest
16.6
17.9
21.9
19.6
17.5
20.1
23.0
25.6
24.8
24.8
22.3
16.0
FEE RELATED EARNINGS
$ 108.0
$ 128.8
$ 127.3
$ 118.7
$ 144.9
$ 129.0
$ 143.2
$ 151.4
$ 174.5
$ 183.3
$ 236.4
$ 212.6
(1) The U.S. GAAP results for FY'20 include a loss in principal investment income (loss) of $(621) million related to the closing of the transaction in which a Carlyle-affiliated investment fund purchased additional interests in Fortitude from AIG. The loss was driven by the contribution of our existing 19.9% investment in Fortitude into the fund, and the subsequent accounting for our investment which is based on the net asset value of our limited partnership interest in the fund rather than a direct investment in Fortitude.
(2) In connection with the initial drawdown of the March 2022 capital raise from Fortitude, the Company's indirect ownership of Fortitude decreased from 19.9% to 13.5%. As a result of the dilution, the Company recorded a reduction in the carrying value of its equity method investment and corresponding loss of $177 million. At the time the remaining capital is called by Fortitude, the Company's indirect ownership will further decrease to 10.5% and the Company expects to record an additional reduction in carrying value and related loss. These amounts are excluded from the total segment results.
(3) Equity-based compensation includes amounts reflected in principal investment income and general, administrative and other expense in our U.S. GAAP statement of operations, as well as amounts related to shares issued in conjunction with a previous acquisition.
Information reported for periods prior to January 1, 2020 reflect the results of the Partnership.
14|Yr-Rec-GAAP to Non-GAAP
Carlyle Reconciliation of U.S. GAAP to Non-GAAP Results by Year
(Dollars in millions, except per share amounts)
FY'16
FY'17
FY'18
FY'19
FY'20
FY'21
YTD 3Q'22
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES
$ 45.3
$ 1,132.3
$ 360.2
$ 1,233.4
$ 580.0
$ 4,027.5
$ 1,401.0
Adjustments:
Net unrealized performance revenues
231.6
(625.2)
50.2
(42.3)
(598.7)
(1,606.2)
(385.2)
Unrealized principal investment (income) loss1
(5.4)
(73.0)
(48.8)
(590.9)
556.2
(351.8)
33.3
Principal investment loss from dilution of indirect investment in Forritude2
-
-
-
-
-
-
176.9
Adjusted unrealized principal investment income from investment in Fortitude
-
-
(11.7)
(140.9)
104.4
-
-
Equity-based compensation3
343.0
365.1
252.2
151.5
116.6
172.9
145.0
Acquisition or disposition related charges, including amortization of intangibles
94.2
35.7
22.3
52.0
38.1
37.7
124.9
Tax (expense) benefit associated with certain foreign performance revenues
(15.1)
(9.2)
(1.5)
(14.3)
(7.9)
(17.1)
3.0
Net (income) loss attributable to non-controlling interests in consolidated entities
(41.0)
(72.5)
(33.9)
(36.6)
(34.6)
(70.5)
(28.3)
Lease assignment and termination costs / Right-of-use asset impairment
-
-
66.9
-
-
26.8
-
Reserve for litigation and contingencies
-
(25.0)
-
-
-
-
-
Debt extinguishment costs
-
-
7.8
0.1
-
10.2
-
Other adjustments, including severance and Conversion costs in 2019 and 20204
(0.9)
(58.2)
10.2
34.6
8.0
14.2
5.4
DISTRIBUTABLE EARNINGS
$ 651.7
$ 670.0
$ 673.9
$ 646.6
$ 762.1
$ 2,243.7
$ 1,476.0
Realized net performance revenues
625.3
552.6
319.7
164.1
246.3
1,529.6
780.0
Realized principal investment income (loss)
44.9
(25.8)
48.1
87.0
73.0
209.5
126.8
Net interest
51.1
48.8
44.3
57.3
76.9
93.5
63.1
FEE RELATED EARNINGS
$ 32.6
$ 192.0
$ 350.4
$ 452.8
$ 519.7
$ 598.1
$ 632.3
(1) The U.S. GAAP results for FY'20 include a loss in principal investment income (loss) of $(621) million related to the closing of the transaction in which a Carlyle-affiliated investment fund purchased additional interests in Fortitude from AIG. The loss was driven by the contribution of our existing 19.9% investment in Fortitude into the fund, and the subsequent accounting for our investment which is based on the net asset value of our limited partnership interest in the fund rather than a direct investment in Fortitude.
(2) In connection with the initial drawdown of the March 2022 capital raise from Fortitude, the Company's indirect ownership of Fortitude decreased from 19.9% to 13.5%. As a result of the dilution, the Company recorded a reduction in the carrying value of its equity method investment and corresponding loss of $177 million. At the time the remaining capital is called by Fortitude, the Company's indirect ownership will further decrease to 10.5% and the Company expects to record an additional reduction in carrying value and related loss. These amounts are excluded from the total segment results.
(3) Equity-based compensation includes amounts reflected in principal investment income and general, administrative and other expense in our U.S. GAAP statement of operations, as well as amounts related to shares issued in conjunction with a previous acquisition.
(4) Included in other non-operating (income) expense for the year ended December 31, 2017 is a $71.5 million adjustment for the revaluation of the tax receivable agreement liability as result of the passage of the Tax Cuts and Job Act of 2017.
Information reported for periods prior to January 1, 2020 reflect the results of the Partnership.
15|Qtr-Rec-Rev & Exp
Carlyle Reconciliation of Revenues and Expenses by Quarter
(Dollars in millions)
Total Reportable Segments
Consolidated Funds
Reconciling Items
Carlyle Consolidated 1
Total Reportable Segments
Consolidated Funds
Reconciling Items
Carlyle Consolidated 1
Total Reportable Segments
Consolidated Funds
Reconciling Items
Carlyle Consolidated 1
For the Three Months Ended March 31, 2020
For the Three Months Ended March 31, 2021
For the Three Months Ended March 31, 2022
Revenues
$ 581.1
$ 53.0
$ (1,379.8)
$ (745.7)
2
$ 612.5
$ 61.1
$ 1,763.6
$ 2,437.2
2
$ 779.5
$ 61.7
$ 740.6
$ 1,581.8
2
Expenses
406.1
53.8
(529.7)
(69.8)
2
397.6
56.5
831.1
1,285.2
2
$ 476.7
$ 52.9
$ 312.3
$ 841.9
2
Other income (loss)
-
(113.1)
-
(113.1)
3
-
12.3
-
12.3
3
$ -
$ 2.8
$ -
$ 2.8
3
Distributable earnings
175.0
(113.9)
(850.1)
(789.0)
4
214.9
16.9
932.5
1,164.3
4
$ 302.8
$ 11.6
$ 428.3
$ 742.7
4
For the Three Months Ended June 30, 2020
For the Three Months Ended June 30, 2021
For the Three Months Ended June 30, 2022
Revenues
$ 582.2
$ 55.2
$ 493.6
$ 1,131.0
2
$ 919.0
$ 62.1
$ 1,725.2
$ 2,706.3
2
$ 1,161.2
$ 63.2
$ (175.4)
$ 1,049.0
2
Expenses
383.8
47.1
493.6
924.5
2
523.6
54.2
873.2
1,451.0
2
$ 632.4
$ 51.1
$ 42.3
$ 725.8
2
Other income (loss)
-
50.3
-
50.3
3
-
(2.6)
-
(2.6)
3
$ -
$ (23.5)
$ -
$ (23.5)
3
Distributable earnings
198.4
58.4
-
256.8
4
395.4
5.3
852.0
1,252.7
4
$ 528.8
$ (11.4)
$ (217.7)
$ 299.7
4
For the Three Months Ended September 30, 2020
For the Three Months Ended September 30, 2021
For the Three Months Ended September 30, 2022
Revenues
$ 496.5
$ 56.3
$ 481.8
$ 1,034.6
2
$ 1,523.8
$ 62.1
$ 53.6
$ 1,639.5
2
$ 1,401.7
$ 79.7
$ (392.9)
$ 1,088.5
2
Expenses
344.7
47.9
250.8
643.4
2
793.2
51.9
93.0
938.1
2
$ 757.3
$ 62.0
$ (119.7)
$ 699.6
2
Other income (loss)
-
23.9
-
23.9
3
-
(0.1)
-
(0.1)
3
$ -
$ (30.3)
$ -
$ (30.3)
3
Distributable earnings
151.8
32.3
231.0
415.1
4
730.6
10.1
(39.4)
701.3
4
$ 644.4
$ (12.6)
$ (273.2)
$ 358.6
4
For the Three Months Ended December 31, 2020
For the Three Months Ended December 31, 2021
Revenues
$ 629.7
$ 62.3
$ 822.7
$ 1,514.7
2
$ 1,894.8
$ 67.9
$ 36.4
$ 1,999.1
2
Expenses
392.8
57.4
385.0
835.2
2
992.0
55.2
35.6
1,082.8
2
Other income (loss)
-
17.6
-
17.6
3
-
(7.1)
-
(7.1)
3
Distributable earnings
236.9
22.5
437.7
697.1
4
902.8
5.6
0.8
909.2
4
(1) The Distributable Earnings in the Carlyle Consolidated column is income before provision for income taxes, which is the GAAP measure that is most directly comparable to Distributable Earnings.
(2) See detailed breakdown of revenue and expense adjustments on page 19.
(3) The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at Carlyle's total Other Income (Loss).
(4) See the reconciliation for Distributable Earnings and Fee Related Earnings on page 13.
16|Yr-Rec-Rev & Exp
Carlyle Reconciliation of Revenues and Expenses by Year
(Dollars in millions)
Total Reportable Segments
Consolidated Funds
Reconciling Items
Carlyle Consolidated 1
Total Reportable Segments
Consolidated Funds
Reconciling Items
Carlyle Consolidated 1
For the Year Ended December 31, 2016
For the Year Ended December 31, 2019
Revenues
$ 2,417.3
$ 166.9
$ (309.9)
$ 2,274.3
2
$ 2,110.1
$ 199.2
$ 1,067.7
$ 3,377.0
2
Expenses
1,765.6
153.1
323.4
2,242.1
2
1,463.5
165.6
490.6
2,119.7
2
Other income
-
13.1
-
13.1
3
-
(23.9)
-
(23.9)
3
Distributable earnings
651.7
26.9
(633.3)
45.3
4
646.6
9.7
577.1
1,233.4
4
For the Year Ended December 31, 2017
For the Year Ended December 31, 2020
Revenues
$ 2,216.2
$ 177.7
$ 1,282.3
$ 3,676.2
2
$ 2,289.5
$ 226.8
$ 418.3
$ 2,934.6
2
Expenses
1,546.2
240.4
845.7
2,632.3
2
1,527.4
206.2
599.7
2,333.3
2
Other income
-
123.5
(35.1)
88.4
3
-
(21.3)
-
(21.3)
3
Distributable earnings
670.0
60.8
401.5
1,132.3
4
762.1
(0.7)
(181.4)
580.0
4
For the Year Ended December 31, 2018
For the Year Ended December 31, 2021
Revenues
$ 2,185.9
$ 214.5
$ 26.8
$ 2,427.2
2
$ 4,950.1
$ 253.2
$ 3,578.8
$ 8,782.1
2
Expenses
1,512.0
213.3
346.2
2,071.5
2
2,706.4
217.8
1,832.9
4,757.1
2
Other income
-
4.5
-
4.5
3
-
2.5
-
2.5
3
Distributable earnings
673.9
5.7
(319.4)
360.2
4
2,243.7
37.9
1,745.9
4,027.5
4
(1) The Distributable Earnings in the Carlyle Consolidated column is income before provision for income taxes, which is the GAAP measure that is most directly comparable to Distributable Earnings.
(2) See detailed breakdown of revenue and expense adjustments on page 20.
(3) The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at Carlyle's total Other Income (Loss).
(4) See the reconciliation for Distributable Earnings and Fee Related Earnings on page 14.
17|Qtr-Rec-Net Performance Rev
Carlyle Reconciliation of Net Performance Revenues by Quarter
(Dollars in millions)
Carlyle Consolidated
Reconciling Items 1
Total Reportable Segments
Carlyle Consolidated
Reconciling Items 1
Total Reportable Segments
Carlyle Consolidated
Reconciling Items 1
Total Reportable Segments
For the Three Months Ended March 31, 2020
For the Three Months Ended March 31, 2021
For the Three Months Ended March 31, 2022
Performance revenues
$ (937.6)
$ 1,109.2
$ 171.6
$ 1,786.1
$ (1,617.7)
$ 168.4
$ 710.2
$ (473.9)
$ 236.3
Performance revenues related compensation expense
(442.5)
565.9
123.4
866.6
(774.2)
92.4
$ 370.7
$ (252.4)
$ 118.3
Net performance revenues
$ (495.1)
$ 543.3
$ 48.2
$ 919.5
$ (843.5)
$ 76.0
$ 339.5
$ (221.5)
$ 118.0
Principal investment income (loss)
$ (253.3)
$ 269.2
$ 15.9
$ 179.1
$ (149.1)
$ 30.0
$ 319.6
$ (293.3)
$ 26.3
For the Three Months Ended June 30, 2020
For the Three Months Ended June 30, 2021
For the Three Months Ended June 30, 2022
Performance revenues
$ 1,191.8
$ (1,039.6)
$ 152.2
$ 2,080.7
$ (1,626.7)
$ 454.0
$ 337.9
$ 182.0
$ 519.9
Performance revenues related compensation expense
535.6
(454.3)
81.3
994.0
(777.4)
216.6
$ 207.0
$ 42.0
$ 249.0
Net performance revenues
$ 656.2
$ (585.3)
$ 70.9
$ 1,086.7
$ (849.3)
$ 237.4
$ 130.9
$ 140.0
$ 270.9
Principal investment income (loss)
$ (512.6)
$ 534.7
$ 22.1
$ 137.7
$ (99.9)
$ 37.8
$ 56.7
$ (12.9)
$ 43.8
For the Three Months Ended September 30, 2020
For the Three Months Ended September 30, 2021
For the Three Months Ended September 30, 2022
Performance revenues
$ 477.4
$ (390.6)
$ 86.8
$ 974.5
$ 36.4
$ 1,010.9
$ 298.1
$ 466.7
$ 764.8
Performance revenues related compensation expense
250.6
(203.7)
46.9
495.2
(17.8)
477.4
$ 163.5
$ 210.2
$ 373.7
Net performance revenues
$ 226.8
$ (186.9)
$ 39.9
$ 479.3
$ 54.2
$ 533.5
$ 134.6
$ 256.5
$ 391.1
Principal investment income (loss)
$ 106.7
$ (93.9)
$ 12.8
$ 160.4
$ (89.1)
$ 71.3
$ 124.2
$ (67.5)
$ 56.7
For the Three Months Ended December 31, 2020
For the Three Months Ended December 31, 2021
Performance revenues
$ 904.3
$ (728.8)
$ 175.5
$ 1,243.3
$ 62.0
$ 1,305.3
Performance revenues related compensation expense
435.4
(347.2)
88.2
605.2
17.4
622.6
Net performance revenues
$ 468.9
$ (381.6)
$ 87.3
$ 638.1
$ 44.6
$ 682.7
Principal investment income (loss)
$ 118.5
$ (96.3)
$ 22.2
$ 160.1
$ (89.7)
$ 70.4
(1) Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations net of related compensation expense and unrealized principal investment income, which are excluded from the segment results, (ii) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the segment results, (iv) the reclassification of NGP performance revenues, which are included in principal investment income in U.S. GAAP financial statements, (v) the reclassification of fee related performance revenues, which are included in fund level fee revenues in the segment results, and (vi) the reclassification of tax expenses associated with certain foreign performance revenues. Adjustments to principal 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 the exclusion of the principal investment loss from the dilution of the indirect investment in Fortitude.
18|Yr-Rec-Net Performance Rev
Carlyle Reconciliation of Net Performance Revenues by Year
(Dollars in millions)
Carlyle Consolidated
Reconciling Items 1
Total Reportable Segments
Carlyle Consolidated
Reconciling Items 1
Total Reportable Segments
For the Year Ended December 31, 2016
For the Year Ended December 31, 2019
Performance revenues
$ 715.4
$ 500.4
$ 1,215.8
$ 799.1
$ (424.8)
$ 374.3
Performance revenues related compensation expense
353.1
237.4
590.5
436.7
(226.5)
210.2
Net performance revenues
$ 362.3
$ 263.0
$ 625.3
$ 362.4
$ (198.3)
$ 164.1
Principal investment income (loss)
$ 160.5
$ (115.6)
$ 44.9
$ 769.3
$ (682.3)
$ 87.0
For the Year Ended December 31, 2017
For the Year Ended December 31, 2020
Performance revenues
$ 2,058.6
$ (973.3)
$ 1,085.3
$ 1,635.9
$ (1,049.8)
$ 586.1
Performance revenues related compensation expense
988.3
(455.6)
532.7
779.1
(439.3)
339.8
Net performance revenues
$ 1,070.3
$ (517.7)
$ 552.6
$ 856.8
$ (610.5)
$ 246.3
Principal investment income (loss)
$ 232.0
$ (257.8)
$ (25.8)
$ (540.7)
$ 613.7
$ 73.0
For the Year Ended December 31, 2018
For the Year Ended December 31, 2021
Performance revenues
$ 622.9
$ 59.5
$ 682.4
$ 6,084.6
$ (3,146.0)
$ 2,938.6
Performance revenues related compensation expense
376.3
(13.6)
362.7
2,961.0
(1,552.0)
1,409.0
Net performance revenues
$ 246.6
$ 73.1
$ 319.7
$ 3,123.6
$ (1,594.0)
$ 1,529.6
Principal investment income (loss)
$ 186.3
$ (138.2)
$ 48.1
$ 637.3
$ (427.8)
$ 209.5
(1) Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations net of related compensation expense and unrealized principal investment income, which are excluded from the segment results, (ii) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the segment results, (iv) the reclassification of NGP performance revenues, which are included in principal investment income in U.S. GAAP financial statements, (v) the reclassification of fee related performance revenues, which are included in fund level fee revenues in the segment results, and (vi) the reclassification of tax expenses associated with certain foreign performance revenues. Adjustments to principal 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 the exclusion of the principal investment loss from the dilution of the indirect investment in Fortitude.
19|Qtr-Rec-Rev & Exp (Detail)
Carlyle Reconciliation of Revenues and Expenses (Detail) by Quarter
(Dollars in millions)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
2Q'22
3Q'22
REVENUE RECONCILING ITEMS
Unrealized performance revenues
(113.9)
(1,109.0)
1,037.1
387.6
715.3
1,621.8
1,620.7
(29.8)
(57.1)
698.8
12.2
(376.2)
Unrealized principal investment income (loss)
(81.3)
(264.7)
(459.5)
81.0
87.0
131.3
78.8
70.4
71.3
23.7
(27.1)
(29.9)
Principal investment loss from dilution of indirect investment in Fortitutde
-
-
-
-
-
-
-
-
-
-
(176.9)
-
Adjusted unrealized principal investment income (loss) from Fortitude
5.7
(22.8)
(81.6)
-
-
-
-
-
-
-
-
-
Adjustments related to expenses associated with NGP Management and its affiliates
(4.0)
(3.9)
(3.9)
(4.0)
(3.5)
(3.6)
(3.0)
(3.6)
(3.5)
(3.1)
(3.0)
(3.8)
Tax expense (benefit) associated with certain foreign performance revenues
0.1
-
0.1
(0.1)
0.5
(0.1)
0.3
0.1
(0.1)
(0.1)
-
0.1
Non-controlling interests and other adjustments to present certain costs on a net basis
25.1
(77.7)
56.8
57.6
59.9
45.3
41.1
33.2
40.0
17.9
13.7
28.4
Elimination of revenues of Consolidated Funds
(1.8)
98.3
(55.4)
(40.3)
(36.5)
(31.1)
(12.7)
(16.7)
(14.2)
3.4
5.7
(11.5)
TOTAL REVENUE RECONCILING ITEMS
$ (170.1)
$ (1,379.8)
$ 493.6
$ 481.8
$ 822.7
$ 1,763.6
$ 1,725.2
$ 53.6
$ 36.4
$ 740.6
$ (175.4)
$ (392.9)
EXPENSE RECONCILING ITEMS
Unrealized performance revenues related compensation
(44.2)
(580.1)
449.7
207.2
355.5
775.3
776.8
15.0
(17.7)
232.2
(58.6)
(224.0)
Equity-based compensation
34.9
31.7
34.6
21.1
29.2
34.9
50.3
44.3
43.4
40.7
48.3
56.0
Acquisition or disposition related charges (credits), including amortization of intangibles and impairment
13.4
3.0
7.1
18.5
9.5
19.0
11.3
24.4
(17.0)
29.1
53.4
42.4
Tax (expense) benefit associated with certain foreign performance revenues related compensation
(1.0)
11.2
0.7
(7.8)
(12.5)
(5.9)
(3.7)
(2.5)
(5.2)
(0.7)
-
3.7
Non-controlling interests and other adjustments to present certain costs on a net basis
29.2
8.0
5.2
19.2
23.4
19.9
17.4
15.9
25.3
16.5
11.8
7.5
Debt extinguishment costs
-
-
-
-
-
-
-
-
10.2
-
-
-
Right-of-use asset impairment
-
-
-
-
-
-
26.8
-
-
-
-
-
Other, including severance and Conversion costs in 2019 and 2020
10.2
4.7
4.1
3.4
(4.2)
2.0
2.0
3.2
7.0
4.6
(2.3)
3.1
Elimination of expenses of Consolidated Funds
(8.9)
(8.2)
(7.8)
(10.8)
(15.9)
(14.1)
(7.7)
(7.3)
(10.4)
(10.1)
(10.3)
(8.4)
TOTAL EXPENSE RECONCILING ITEMS
$ 33.6
$ (529.7)
$ 493.6
$ 250.8
$ 385.0
$ 831.1
$ 873.2
$ 93.0
$ 35.6
$ 312.3
$ 42.3
$ (119.7)
20|Yr-Rec-Rev & Exp (Detail)
Carlyle Reconciliation of Revenues and Expenses (Detail) by Year
(Dollars in millions)
FY'16
FY'17
FY'18
FY'19
FY'20
FY'21
YTD 3Q'22
REVENUE RECONCILING ITEMS
Unrealized performance revenues
(464.1)
1,089.5
(42.7)
267.8
1,031.0
3,155.6
334.8
Unrealized principal investment income (loss)
5.4
73.0
48.8
590.9
(556.2)
351.8
(33.3)
Principal investment loss from dilution of indirect investment in Fortitutde
(176.9)
Adjusted unrealized principal investment income (loss) from Fortitude
-
-
11.7
140.9
(104.4)
-
-
Adjustments related to expenses associated with NGP Management and its affiliates
(71.2)
(62.5)
(18.9)
(16.2)
(15.3)
(13.7)
(9.9)
Tax expense (benefit) associated with certain foreign performance revenues
-
0.9
(4.9)
0.3
0.5
0.2
-
Non-controlling interests and other adjustments to present certain costs on a net basis
254.4
237.9
92.5
117.5
96.6
159.6
60.0
Elimination of revenues of Consolidated Funds
(34.4)
(56.5)
(59.7)
(33.5)
(33.9)
(74.7)
(2.4)
TOTAL REVENUE RECONCILING ITEMS
$ (309.9)
$ 1,282.3
$ 26.8
$ 1,067.7
$ 418.3
$ 3,578.8
$ 172.3
EXPENSE RECONCILING ITEMS
Unrealized performance revenues related compensation
(232.5)
464.4
7.4
225.5
432.3
1,549.4
(50.4)
Equity-based compensation
343.0
365.1
252.2
151.5
116.6
172.9
145.0
Acquisition or disposition related charges (credits), including amortization of intangibles and impairment
94.2
35.7
22.3
52.0
38.1
37.7
124.9
Tax (expense) benefit associated with certain foreign performance revenues related compensation
(15.1)
(8.4)
(6.2)
(14.3)
(8.4)
(17.3)
3.0
Non-controlling interests and other adjustments to present certain costs on a net basis
159.3
114.9
34.3
75.0
55.8
78.5
35.8
Reserve for litigation and contingencies
-
(25.0)
-
-
-
-
-
Lease assignment and termination costs / Right-of-use asset impairment
-
-
66.9
-
-
26.8
-
Debt extinguishment costs
7.8
0.1
7.8
0.1
-
10.2
-
Other, including severance and Conversion costs in 2019 and 2020
(0.9)
(58.2)
10.2
34.6
8.0
14.2
5.4
Elimination of expenses of Consolidated Funds
(24.6)
(42.8)
(48.7)
(33.8)
(42.7)
(39.5)
(28.8)
TOTAL EXPENSE RECONCILING ITEMS
$ 331.2
$ 845.8
$ 346.2
$ 490.6
$ 599.7
$ 1,832.9
$ 234.9
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The Carlyle Group LP published this content on 08 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2022 11:18:01 UTC.
The Carlyle Group Inc. is a global investment company. The Company operates through three segments: Global Private Equity, Global Credit, and Global Investment Solutions. The Global Private Equity segment advises the Companyâs buyout, middle market and growth capital funds, its U.S. and internationally focused real estate funds, and its infrastructure and natural resources funds. The segment also includes the NGP Carry Funds advised by NGP. The Global Credit segment advises funds and vehicles that pursue investment strategies including loans and structured credit, direct lending, opportunistic credit, distressed credit, aircraft financing and servicing, infrastructure debt, insurance solutions and global capital markets. The Global Investment Solutions segment advises global private equity programs and related co-investment and secondary activities. The Company has investment professionals in over 28 offices across four continents. It also focuses on private student loan portfolio.
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