8-KEarnings & Results

Apollo Global Management, Inc. 8-K Report, Financial Results (Feb 27, 2024)

Filed February 27, 2024For Securities:APOAPOSAPO-PA

Summary

Apollo Global Management, Inc. (APO) filed this Form 8-K to provide an update on its financial results for the fourth quarter and full year ended December 31, 2023. The primary purpose of this filing is to revise a previously issued earnings presentation due to a change in the estimated deferred tax assets related to Bermuda's new Corporate Income Tax Act. This adjustment resulted in a reduction of the estimated deferred tax asset from $1.9 billion to $1.8 billion, impacting the income tax benefit and net income reported for the period. Specifically, Apollo's income tax benefit for Q4 2023 and full-year 2023 has been revised downwards by $129 million in total. Consequently, net income attributable to common stockholders for Q4 2023 is now reported as $2,732 million (down from $2,861 million), and for the full year 2023, it is $5,001 million (down from $5,130 million). It is important to note that this revision primarily impacts GAAP-based figures, and key non-GAAP metrics such as Adjusted Net Income, Fee Related Earnings, Spread Related Earnings, and Principal Investing Income remain unchanged from the original presentation.

Key Highlights

  • 1Revision of Q4 and full-year 2023 GAAP net income due to a change in estimated deferred tax assets related to Bermuda Corporate Income Tax.
  • 2Estimated deferred tax asset adjusted down from $1.9 billion to $1.8 billion.
  • 3Total income tax benefit reduced by $129 million for the reported periods.
  • 4Q4 2023 net income attributable to common stockholders revised to $2,732 million (from $2,861 million).
  • 5Full-year 2023 net income attributable to common stockholders revised to $5,001 million (from $5,130 million).
  • 6Key non-GAAP performance metrics including Adjusted Net Income and Fee Related Earnings are unaffected by this revision.
  • 7The filing serves to update a previous earnings presentation furnished on February 8, 2024.

Frequently Asked Questions

This 8-K filing is to update Apollo Global Management's previously issued earnings presentation for Q4 and full-year 2023. The update is necessary due to a revised estimate of deferred tax assets resulting from the enactment of the Corporate Income Tax Act in Bermuda.

The change in the estimated deferred tax asset reduced the company's income tax benefit by $129 million. Consequently, the reported net income attributable to common stockholders for Q4 2023 was revised to $2,732 million, and for the full year 2023, to $5,001 million. This represents a decrease from the original reported figures.

No, the filing explicitly states that other than the GAAP Income Statement line items based on the deferred tax asset adjustment, no other changes have been made to the original presentation. This means that important non-GAAP metrics such as Adjusted Net Income, Fee Related Earnings, Spread Related Earnings, and Principal Investing Income remain the same.

Based on the information provided, this revision appears to be an accounting adjustment related to tax law changes and estimate refinements. The core operational and non-GAAP financial metrics, which investors often focus on for performance assessment, have not been altered, suggesting it is not indicative of a change in the underlying business performance.