Item 6. Selected Financial Data

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Item 6. Selected Financial Data

The following tables present selected consolidated financial information and other data of the Company. The Company, which was formed on November 15, 2013 as a partnership and converted to a Delaware corporation effective November 26, 2018, was formed to serve as a holding company for our businesses. See “Item 1. Business—Organizational Structure.”

We derived the following selected consolidated financial data of the Company as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 from the audited consolidated financial statements included elsewhere in this Annual Report on Form 10‑K. The selected consolidated financial data of the Company as of and for the years ended December 31, 2015 and 2014 were derived from the audited consolidated financial statements of the Company, which are not included in this Annual Report on Form 10-K. The consolidated financial statements were prepared on substantially the same basis as the audited consolidated financial statements and include all adjustments that we consider necessary for a fair presentation of the Company’s consolidated financial position and results of operations. The selected historical financial data is not indicative of the expected future operating results of the Company.

The entities comprising our Consolidated Funds are not the same entities for all periods presented primarily due to the adoption of new consolidation guidance. Pursuant to revised consolidation guidance that became effective for us on January 1, 2015, we consolidated entities where we hold a controlling financial interest. The consolidation of funds during the periods generally has the effect of grossing up reported assets, liabilities and cash flow, and has no effect on net income attributable to the Company. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Consolidation and Deconsolidation of Ares Funds” and “—Critical Accounting Estimates—Principles of Consolidation” and Note 2, “Summary of Significant Accounting Policies,” to our consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K.

The following selected historical consolidated financial data should be read together with “Item 1. Business—Organizational Structure,” “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our historical consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10‑K (in thousands).



	For the Year Ended December 31,
Statements of operations data	2018			2017			2016			2015			2014
				As Adjusted			As Adjusted			As Adjusted			As Adjusted
Revenues
Management fees (includes ARCC Part I Fees of $128,805, $105,467, $121,181, $121,491 and $118,537 for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively)	$	802,502		$	722,419		$	642,068		$	634,399		$	486,477
Carried interest allocation	42,410			620,454			494,580			146,038			63,884
Incentive fees	63,380			16,220			23,272			4,577			27,528
Principal investment income (loss)	(1,455		)	64,444			55,168			11,290			6,527
Administrative, transaction and other fees	51,624			56,406			39,285			29,428			26,000
Total revenues	958,461			1,479,943			1,254,373			825,732			610,416
Expenses
Compensation and benefits	570,380			514,109			447,725			414,454			456,372
Performance related compensation	30,254			479,722			387,846			111,683			170,028
General, administrative and other expenses	215,964			196,730			159,776			224,798			166,839
Transaction support expense	—			275,177			—			—			—
Expenses of Consolidated Funds	53,764			39,020			21,073			18,105			66,800
Total expenses	870,362			1,504,758			1,016,420			769,040			860,039
Other income (expense)
Net realized and unrealized gain (loss) on investments	(1,884		)	8,262			(7,629		)	12,913			26,206
Interest and dividend income	7,028			7,043			4,493			6,851			6,639
Interest expense	(21,448		)	(21,219		)	(17,981		)	(18,949		)	(8,617		)
Debt extinguishment expense	—			—			—			(11,641		)	—
Other income (expense), net	(851		)	19,470			35,650			21,680			(2,422		)
Net realized and unrealized gain (loss) on investments of Consolidated Funds	(1,583		)	100,124			(2,057		)	(24,616		)	513,270
Interest and other income of Consolidated Funds	337,875			187,721			138,943			117,373			937,835
Interest expense of Consolidated Funds	(222,895		)	(126,727		)	(91,452		)	(78,819		)	(666,373		)
Total other income	96,242			174,674			59,967			24,792			806,538
Income before taxes	184,341			149,859			297,920			81,484			556,915
Income tax expense (benefit)	32,202			(23,052		)	11,019			19,064			11,253
Net income	152,139			172,911			286,901			62,420			545,662
Less: Net income attributable to redeemable interests in Consolidated Funds	—			—			—			—			2,565
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds	20,512			60,818			3,386			(5,686		)	417,793
Less: Net income attributable to redeemable interests in Ares Operating Group entities	—			—			456			338			731
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	74,607			35,915			171,251			48,390			89,585
Net income attributable to Ares Management Corporation	57,020			76,178			111,808			19,378			34,988
Less: Series A Preferred Stock dividends paid	21,700			21,700			12,176			—			—
Net income attributable to Ares Management Corporation Class A common stockholders	$	35,320		$	54,478		$	99,632		$	19,378		$	34,988



	As of December 31,
	2018		2017		2016		2015		2014
			As Adjusted		As Adjusted		As Adjusted		As Adjusted
Statements of financial condition data
Cash and cash equivalents	$	110,247	$	118,929	$	342,861	$	121,483	$	148,858
Cash and cash equivalents of Consolidated Funds	384,644		556,500		455,280		159,507		1,314,397
Investments	1,326,137		1,724,571		1,209,793		974,101		336,159
Investments, at fair value, of Consolidated Funds	7,673,165		5,582,842		3,330,203		2,559,783		19,123,950
Total assets	10,154,692		8,563,522		5,829,712		4,321,408		21,638,992
Debt obligations	480,952		616,176		305,784		389,120		243,491
CLO loan obligations of Consolidated Funds	6,678,091		4,963,194		3,031,112		2,174,352		12,049,170
Consolidated Funds’ borrowings	209,284		138,198		55,070		11,734		777,600
Mezzanine debt of Consolidated Funds	—		—		—		—		378,365
Total liabilities	8,760,351		7,103,230		4,452,450		3,329,497		14,879,619
Redeemable interest in Consolidated Funds	—		—		—		—		1,037,450
Redeemable interest in Ares Operating Group entities	—		—		—		23,505		23,988
Non‑controlling interest in Consolidated Funds	503,637		528,488		338,035		323,606		4,950,803
Non‑controlling interest in Ares Operating Group entities	302,780		358,186		447,615		397,883		463,493
Total stockholders' equity	587,924		573,618		591,612		246,917		283,639
Total equity	1,394,341		1,460,292		1,377,262		968,406		5,697,935
Total liabilities, redeemable interest, non‑controlling interests and equity	10,154,692		8,563,522		5,829,712		4,321,408		21,638,992

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