{ "docId": "019de071-bcf2-7009-98d3-8640af11579d", "docSlug": "8c743203cdb2dfea09af80b974b7db17", "documentTitle": "Carlyle | Investor Conference Presentation Deck | 44 slides", "authorId": "carlyle", "authorName": "Carlyle", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2021-11-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.6466552, "pageNumber": 42, "pageCount": 44, "prevPage": 41, "nextPage": 43, "slideType": "appendix_disclosure", "function": "appendix", "density": "dense", "nDataPoints": 0, "notes": "Standard financial disclosure slide defining non-GAAP metrics.", "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de071-bcf2-7009-98d3-8640af11579d/42", "deckHref": "/decks/019de071-bcf2-7009-98d3-8640af11579d", "deckJsonHref": "/decks/019de071-bcf2-7009-98d3-8640af11579d.json", "deckAnchorHref": "/decks/019de071-bcf2-7009-98d3-8640af11579d#slide-42", "components": [ { "bbox": { "h": 0.12, "w": 0.91, "x": 0.045, "y": 0.66 }, "kind": "paragraph", "text": "Fee Related Earnings (“FRE”)\nFee Related Earnings, or “FRE”, is a component of DE and is used to assess the ability of the business to cover direct base compensation and operating expenses from total fee revenues. FRE differs from income (loss) before provision for income taxes computed in accordance with U.S. GAAP in that it adjusts for the items included in the calculation of DE and also adjusts DE to exclude net realized performance revenues, realized principal investment income from investments in Carlyle funds, net interest (interest income less interest expense), and certain general, administrative and other expenses when the timing of any future payment is uncertain.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3e2e1c4e-047c-474d-b8cb-f9e0002cb8bd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.91, "x": 0.045, "y": 0.22 }, "kind": "paragraph", "text": "Distributable Earnings (“DE”)\nDistributable Earnings, or “DE”, is a key performance benchmark used in our industry and is evaluated regularly by management in making resource deployment and compensation decisions, and in assessing the performance of our three segments. We also use DE in our budgeting, forecasting, and the overall management of our segments. We believe that reporting DE is helpful to understanding our business and that investors should review the same supplemental financial measure that management uses to analyze our segment performance. DE is intended to show the amount of net realized earnings without the effects of consolidation of the Consolidated Funds. DE is derived from our segment reported results and is an additional measure to assess performance.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61402b20-8c9f-48e5-bb82-4567b1e11c6b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.91, "x": 0.045, "y": 0.79 }, "kind": "paragraph", "text": "Distributable Earnings per Common Share After Tax\nDE per common share after tax represents DE less estimated current corporate, foreign, state and local taxes, divided by shares eligible for the dividend in each period. Estimated current corporate, foreign state and local taxes represents the total GAAP Provision (benefit) for income taxes adjusted to include only the current tax provision (benefit) applied to Net income (loss) attributable to The Carlyle Group Inc. This adjustment used to calculate Distributable Earnings, Net attributable to common stockholders reflects the benefit of deductions available to the company on certain expense items that are excluded from the underlying calculation of Distributable Earnings, such as equity-based compensation expense and charges (credits) related to corporate actions and non-recurring items. Management believes that using the estimated tax provision (benefit) in this manner more accurately reflects earnings that are available to be distributed to common stockholders.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "babb6f52-7a23-40de-985c-7be3dcea0286", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.91, "x": 0.045, "y": 0.405 }, "kind": "paragraph", "text": "Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance with U.S. GAAP in that it includes certain tax expenses associated with performance revenues (comprised of performance allocations and incentive fees), and does not include unrealized performance allocations and related compensation expense, unrealized principal investment income, equity-based compensation expense, net income (loss) attributable to non-Carlyle interest in consolidated entities, or charges (credits) related to Carlyle corporate actions and non-recurring items. Charges (credits) related to Carlyle corporate actions and non-recurring items include: charges associated with acquisitions or strategic investments, changes in the tax receivable agreement liability, corporate conversion costs, amortization and any impairment charges associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions, charges associated with earnouts and contingent consideration including gains and losses associated with the estimated fair value of contingent consideration issued in conjunction with acquisitions or strategic investments, impairment charges associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated with contract terminations and employee severance. We believe the inclusion or exclusion of these items provides investors with a meaningful indication of our core operating performance.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ef749f82-6613-4f3e-bf1d-b5bf59a9e812", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.21, "x": 0.045, "y": 0.105 }, "kind": "title", "text": "Definitions", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "26d17bdc-791b-47fd-8c36-e4468d6c016c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }