v3.24.0.1
Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segments
22. Segments

The Company conducts its business through three reportable segments: (i) Asset Management, (ii) Retirement Services and (iii) Principal Investing. Segment information is utilized by the Company’s chief operating decision maker to assess performance and to allocate resources.

The performance is measured by the Company’s chief operating decision maker on an unconsolidated basis because the chief operating decision maker makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the affiliated funds.

Segment Income

Segment Income is the key performance measure used by management in evaluating the performance of the asset management, retirement services, and principal investing segments. Management uses Segment Income to make key operating decisions such as the following:
•decisions related to the allocation of resources such as staffing decisions, including hiring and locations for deployment of the new hires;
•decisions related to capital deployment such as providing capital to facilitate growth for the business and/or to facilitate expansion into new businesses;
•decisions related to expenses, such as determining annual discretionary bonuses and equity-based compensation awards to its employees. With respect to compensation, management seeks to align the interests of certain professionals and selected other individuals with those of the investors in the funds and those of Apollo’s stockholders by providing such individuals a profit sharing interest in the performance fees earned in relation to the funds. To achieve that objective, a certain amount of compensation is based on Apollo’s performance and growth for the year; and
•decisions related to the amount of earnings available for dividends to common stockholders and holders of equity-based awards that participate in dividends.
Segment Income is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. Segment Income is the sum of (i) Fee Related Earnings, (ii) Spread Related Earnings and (iii) Principal Investing Income. Segment Income excludes the effects of the consolidation of any of the related funds and SPACs, interest and other financing costs related to AGM not attributable to any specific segment, taxes and related payables, transaction-related charges and any acquisitions. Transaction-related charges includes equity-based compensation charges, the amortization of intangible assets, contingent consideration, and certain other charges associated with acquisitions, and
restructuring charges. In addition, Segment Income excludes non-cash revenue and expense related to equity awards granted by unconsolidated related parties to employees of the Company, compensation and administrative related expense reimbursements, as well as the assets, liabilities and operating results of the funds and VIEs that are included in the consolidated financial statements.

Segment Income may not be comparable to similarly titled measures used by other companies and is not a measure of performance calculated in accordance with U.S. GAAP. We use Segment Income as a measure of operating performance, not as a measure of liquidity. Segment Income should not be considered in isolation or as a substitute for net income or other income data prepared in accordance with U.S. GAAP. The use of Segment Income without consideration of related U.S. GAAP measures is not adequate due to the adjustments described above. Management compensates for these limitations by using Segment Income as a supplemental measure to U.S. GAAP results, to provide a more complete understanding of our performance as management measures it. A reconciliation of Segment Income to its most directly comparable U.S. GAAP measure of income (loss) before income tax provision can be found in this footnote.

Fee Related Earnings

Fee Related Earnings (“FRE”) is a component of Segment Income that is used to assess the performance of the Asset Management segment. FRE is the sum of (i) management fees, (ii) capital solutions and other related fees, (iii) fee-related performance fees from indefinite term vehicles, that are measured and received on a recurring basis and not dependent on realization events of the underlying investments, excluding performance fees from Athene and performance fees from origination platforms dependent on capital appreciation, and (iv) other income, net, less (a) fee-related compensation, excluding equity-based compensation, (b) non-compensation expenses incurred in the normal course of business, (c) placement fees and (d) non-controlling interests in the management companies of certain funds the Company manages.

Spread Related Earnings

Spread Related Earnings (“SRE”) is a component of Segment Income that is used to assess the performance of the Retirement Services segment, excluding certain market volatility, which consists of investment gains (losses), net of offsets, and non-operating change in insurance liabilities and related derivatives, and certain expenses related to integration, restructuring, equity-based compensation, and other expenses. For the Retirement Services segment, SRE equals the sum of (i) the net investment earnings on Athene’s net invested assets and (ii) management fees received on business managed for others, primarily the ADIP portion of Athene’s business ceded to ACRA, less (x) cost of funds, (y) operating expenses excluding equity-based compensation and (z) financing costs, including interest expense and preferred dividends, if any, paid to Athene preferred stockholders.

Principal Investing Income

Principal Investing Income (“PII”) is a component of Segment Income that is used to assess the performance of the Principal Investing segment. For the Principal Investing segment, PII is the sum of (i) realized performance fees, including certain realizations received in the form of equity, and (ii) realized investment income, less (x) realized principal investing compensation expense, excluding expense related to equity-based compensation, and (y) certain corporate compensation and non-compensation expenses.
The following presents financial data for the Company’s reportable segments.
Years ended December 31,
(In millions)202320222021
Asset Management
Management fees1
$2,480 $2,134 $1,878 
Capital solutions fees and other, net538 414 298 
Fee-related performance fee146 72 57 
Fee-related compensation (835)(754)(653)
Other operating expenses(561)(456)(313)
Fee Related Earnings1,768 1,410 1,267 
Retirement Services
Fixed income and other net investment income8,739 5,706 — 
Alternative net investment income864 1,206 — 
Strategic capital management fees72 53 — 
Cost of funds(5,650)(3,755)— 
Other operating expenses(481)(462)— 
Interest and other financing costs(436)(279)— 
Spread Related Earnings 3,108 2,469 — 
Principal Investing
Realized performance fees2
742 595 1,589 
Realized investment income(2)330 437 
Principal investing compensation(601)(585)(876)
Other operating expenses(56)(56)(43)
Principal Investing Income 83 284 1,107 
Segment Income$4,959 $4,163 $2,374 
Segment Assets:December 31, 2023December 31, 2022
Asset Management$1,938 $1,918 
Retirement Services294,730 240,483 
Principal Investing9,573 8,099 
Total Assets3
$306,241 $250,500 
1 Includes intersegment management fees from Retirement Services of $955 million and $764 million for the years ended December 31, 2023 and 2022, respectively.
2 Includes intersegment realized performance fees from Retirement Services of $20 million for the year ended December 31, 2023.
3 Refer below for a reconciliation of total assets for Apollo’s total reportable segments to total consolidated assets.

The following reconciles total consolidated revenues to total asset management fee related revenues:
Years ended December 31,
(In millions)202320222021
Total Consolidated Revenues$32,644 $10,968 $5,951 
Retirement services GAAP revenue(29,137)(8,199)— 
Equity awards granted by unconsolidated related parties, reimbursable expenses and other1
(339)(182)(137)
Adjustments related to consolidated funds and VIEs1
(3)74 146 
Performance fees(868)(598)(3,055)
Principal investment income(108)(207)(672)
Retirement services management and performance fees975764 — 
Total Asset Management Fee Related Revenues$3,164 $2,620 $2,233 
1 Represents advisory fees, management fees and performance fees earned from consolidated VIEs which are eliminated in consolidation. Includes non-cash revenues related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative related expense reimbursements.
The following presents the reconciliation of income before income tax provision reported in the consolidated statements of operations to Segment Income:
Years ended December 31,
(In millions)202320222021
Income (loss) before income tax provision (benefit)$5,586 $(4,246)$4,861 
Asset Management Adjustments:
Equity-based profit sharing expense and other1
239 276 146 
Equity-based compensation236 185 80 
Special equity-based compensation and other charges2
438 — — 
Preferred dividends— — (37)
Transaction-related charges3
32 (42)35 
Merger-related transaction and integration costs4
27 70 67 
(Gains) losses from change in tax receivable agreement liability13 26 (10)
Net (income) loss attributable to non-controlling interests in consolidated entities(1,556)1,499 (418)
Unrealized performance fees(127)(2)(1,465)
Unrealized profit sharing expense179 20 649 
One-time equity-based compensation and other charges5
— — 949 
HoldCo interest and other financing costs6
88 122 170 
Unrealized principal investment income (loss)(88)176 (222)
Unrealized net (gains) losses from investment activities and other26 (144)(2,431)
Retirement Services Adjustments:
Investment (gains) losses, net of offsets(170)7,467 — 
Non-operating change in insurance liabilities and related derivatives7
(182)(1,433)— 
Integration, restructuring and other non-operating expenses130 133 — 
Equity-based compensation88 56 — 
Segment Income$4,959 $4,163 $2,374 
1 Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are required to be used by employees of Apollo to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under the Equity Plan. Equity-based profit sharing expense and other also includes performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense.
2 Special equity-based compensation and other charges includes equity-based compensation expense and associated taxes related to the previously announced special fully vested equity grants to certain senior leaders.
3 Transaction-related charges include contingent consideration, equity-based compensation charges and the amortization of intangible assets and certain other charges associated with acquisitions, and restructuring charges.
4 Merger-related transaction and integration costs includes advisory services, technology integration, equity-based compensation charges and other costs associated with the Mergers.
5 Includes one-time equity-based compensation expense and associated taxes related to the Company’s compensation reset.
6 Represents interest and other financing costs related to AGM not attributable to any specific segment.
7 Includes change in fair values of derivatives and embedded derivatives, non-operating change in funding agreements, change in fair value of market risk benefits, and non-operating change in liability for future policy benefits.

The following table presents the reconciliation of the Company’s total reportable segment assets to total assets:

(In millions)December 31, 2023December 31, 2022
Total reportable segment assets$306,241 $250,500 
Adjustments1
7,247 6,717 
Total assets$313,488 $257,217 
1 Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments.
23. Product and Geographic Information

Athene conducts its business through the Retirement Services segment. Athene markets annuity products, primarily fixed rate and fixed indexed annuities. Deposits, which are generally not included in revenues on the consolidated statements of operations, and premiums collected are as follows:

(In millions)Year ended December 31, 2023Year ended December 31, 2022
Indexed annuities$12,012 $11,212 
Fixed rate annuities34,594 15,322 
Payout annuities without life contingencies188 490 
Funding agreements6,893 7,770 
Other deposits2 2 
Total deposits53,689 34,796 
Payout annuities with life contingencies10,504 11,606 
Whole life and other premiums2,245 32 
Total premiums12,749 11,638 
Total premiums and deposits, net of ceded$66,438 $46,434 

Deposits and premiums by the geographical location are primarily attributed to individual countries based on the jurisdiction of the subsidiary that directly issued or assumed the business and are as follows:

(In millions)Year ended December 31, 2023Year ended December 31, 2022
United States$45,207 $34,646 
Bermuda21,231 11,788 
Total premiums and deposits, net of ceded$66,438 $46,434 
The Company does not disaggregate its Asset Management and Principal Investing segments by geography as it does not believe it provides a meaningful depiction of the nature of its revenue.