What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to update investors on modifications to Apollo Global Management's Non-GAAP financial measures before the release of their Q1 2022 financial results. It also provides supplemental pro forma financial statements reflecting the merger with Athene.

How does the change from 'Distributable Earnings' to 'Adjusted Net Income' affect my understanding of Apollo's profitability?

The renaming of 'Distributable Earnings' to 'Adjusted Net Income' (ANI) is primarily a nomenclature change to align with industry standards and better reflect the company's dividend policy. Crucially, the underlying components used to calculate ANI remain the same as the previous 'Distributable Earnings,' so the measure's fundamental calculation and what it represents in terms of earnings available for distribution are unchanged.

What is the significance of the new 'Normalized SRE' measure?

The new 'Normalized SRE' measure is designed to provide investors with a clearer perspective on the recurring nature of income generated from alternative investments managed for Athene. It aims to smooth out short-term fluctuations and exclude certain one-time or variable items that can impact the reported SRE, offering a view that better reflects long-term investment performance trends.

Do these Non-GAAP measure changes impact Apollo's official U.S. GAAP financial statements?

No, the filing explicitly states that these modifications to Non-GAAP measures have no impact on Apollo's historical consolidated U.S. GAAP financial results. These are adjustments to how certain performance metrics are presented for analytical purposes, not changes to the foundational accounting principles.

Apollo Global Management, Inc. 8-K: Regulation FD

Summary

This 8-K filing from Apollo Global Management, Inc. (APO) primarily serves to update investors on changes to their Non-GAAP financial measures ahead of their Q1 2022 earnings release. The key changes include renaming "Distributable Earnings" to "Adjusted Net Income" (ANI) to align with industry standards and reflect a revised dividend policy. Importantly, the components of this measure remain the same. The filing also introduces modifications to how "Principal Investing Income" (PII) and "Spread Related Earnings" (SRE) are reported. PII will now exclude interest and financing costs for better segment profitability representation. A new supplemental measure, "Normalized SRE," is being introduced to smooth out quarterly volatility in alternative investment income, particularly from Athene, and present a more recurring view of performance. Fee Related Earnings (FRE) definition is enhanced for clarity on performance fees from indefinite-term vehicles. Additionally, the report supplements previous filings by providing unaudited pro forma combined financial statements reflecting the merger with Athene. These updates aim to provide investors with clearer, more consistent, and potentially more representative financial metrics for understanding Apollo's performance, especially in light of recent strategic actions.

Key Highlights

1Renamed "Distributable Earnings" to "Adjusted Net Income" (ANI) to align with industry practice and updated dividend policy; components of the measure remain unchanged.
2Modified "Principal Investing Income" (PII) definition to exclude interest and financing costs, aiming for a more accurate representation of segment profitability.
3Introduced a new supplemental Non-GAAP measure, "Normalized SRE," to provide a smoother, more recurring view of income from alternative investments managed for Athene by adjusting for short-term volatility and specific items.
4Enhanced the definition of "Fee Related Earnings" (FRE) to clarify the inclusion of fee-related performance fees from indefinite-term vehicles, without impacting prior results.
5Provided supplemental unaudited pro forma condensed combined financial statements for the year ended December 31, 2021, reflecting the merger with Athene.
6Reiterates forward-looking statements and associated risks, highlighting the importance of reviewing risk factors in prior SEC filings.
7The modifications to Non-GAAP measures do not impact Apollo's historical consolidated U.S. GAAP financial results.

Apollo Global Management, Inc. 8-K Report, Regulation FD Disclosure (May 2, 2022)

Summary

Key Highlights

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