Business Context and Reporting Period
This Form 8-K, filed on August 10, 2009, by The Blackstone Group L.P., serves as a current report summarizing amendments to the Annual Report on Form 10-K for the year ended December 31, 2008. The filing details the retrospective adoption of new accounting standards effective January 1, 2009, and updates to segment naming and financial disclosures.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it outlines changes to the presentation of financial data:
- Non-Controlling Interests: Reclassified from mezzanine equity to components of Partners' Capital for non-redeemable interests.
- Net Income Presentation: Now presented before non-controlling interests, with separate lines for net income attributable to specific non-controlling interest categories.
- Earnings Per Share (EPS): Unvested participating Blackstone Common Units are now included as a separate class of securities in the two-class method calculation.
- EBITDA-NFRE: Earnings Before Interest, Taxes, Depreciation, and Amortization from Net Fee Related Earnings from Operations was introduced as a segment performance measure in the June 30, 2009, 10-Q and is now referenced in the Liquidity and Capital Resources section.
Material Changes Versus Prior Period
The following material changes were made to the 2008 Form 10-K to align with current reporting standards:
- Adoption of SFAS No. 160: Non-controlling interests are now presented as equity rather than liabilities or mezzanine equity. The Consolidated Statements of Financial Condition, Operations, and Changes in Partners' Capital have been recasted retrospectively.
- Adoption of FSP EITF No. 03-6-1: Unvested share-based payment awards with non-forfeitable dividend rights are now treated as participating securities in EPS calculations.
- Segment Renaming: The "Marketable Alternative Asset Management" segment has been renamed "Credit and Marketable Alternatives" to better reflect the product mix, with no change to underlying business operations.
- Disclosure Enhancements: Clawback and goodwill disclosures have been enhanced, and financial statement balances have been reclassified to conform to the June 30, 2009, 10-Q presentation.
Guidance, Outlook, and Risks
The filing contains standard forward-looking statements regarding operations and financial performance, noting that actual results may differ materially due to various risks. Specific guidance or outlook figures are not provided in this text. The document directs investors to the "Risk Factors" section of the report and other periodic SEC filings for a comprehensive list of uncertainties. No unusual items or specific contingencies are detailed in the text provided.
Investor Verification Checklist
- Verify the impact of SFAS No. 160 on the reclassification of non-controlling interests in the amended 2008 Form 10-K.
- Review the revised EPS calculation methodology to confirm the inclusion of unvested participating securities.
- Examine the "Credit and Marketable Alternatives" segment data to ensure consistency with the renamed category.
- Check the Liquidity and Capital Resources section for the new EBITDA-NFRE metric and its reconciliation.
- Confirm that financial statement balances in the 2008 10-K have been reclassified to match the June 30, 2009, 10-Q presentation.