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OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES
12 Months Ended
Dec. 31, 2012
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES  
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

7. OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

        Other assets consist of the following:

 
  December 31,
2012
  December 31,
2011
 

Interest and Notes Receivable(a)

  $ 469,456   $ 319,402  

Receivables

    267,126     30,060  

Intangible Assets, net(b)

    197,484     24,310  

Due from Broker(c)

    189,202      

Foreign Exchange Forward Contracts(d)

    137,786     114,224  

Deferred Tax Assets, net

    105,654     34,125  

Unsettled Investment Sales(e)

    90,666     230,970  

Goodwill(f)

    89,000      

Fixed Assets, net(g)

    79,570     59,619  

Deferred Financing Costs

    20,918     17,691  

Deferred Transaction Costs

    14,633     8,987  

Prepaid Expenses

    12,079     10,709  

Refundable Security Deposits

    7,428     8,242  

Foreign Currency Options(h)

    4,992      

Other

    15,061     10,366  
           

 

  $ 1,701,055   $ 868,705  
           

(a)
Represents interest receivable and promissory notes due from third parties. The promissory notes bear interest at rates ranging from 1.5% - 3.0% per annum and mature between 2015 and 2016.

(b)
Net of accumulated amortization of $21,402 and $13,576 as of December 31, 2012 and 2011, respectively. Amortization expense totaled $7,826 for the year ended December 31, 2012 and $3,788 for the years ended December 31, 2011 and 2010.

(c)
Represents amounts held at clearing brokers resulting from securities transactions.

(d)
Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(e)
Represents amounts due from third parties for investments sold for which cash settlement has not occurred.

(f)
See Note 14 "Goodwill and Intangible Assets."

(g)
Net of accumulated depreciation and amortization of $92,467 and $80,501 as of December 31, 2012 and December 31, 2011, respectively. Depreciation and amortization expense totaled $12,573, $10,073 and $11,664 for the years ended December 31, 2012, 2011 and 2010, respectively.

(h)
Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. The instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments. The cost bases for these instruments at December 31, 2012 was $2,332.

        Accounts Payable, Accrued Expenses and Other Liabilities consist of the following:

 
  December 31,
2012
  December 31,
2011
 

Amounts Payable to Carry Pool(a)

  $ 776,750   $ 448,818  

Securities Sold Short(b)

    350,353     202,908  

Foreign Exchange Forward Contracts(c)

    229,314      

Unsettled Investment Purchases(d)

    172,583     49,668  

Accounts Payable and Accrued Expenses

    97,389     105,453  

Contingent Consideration Obligation(e)

    71,300      

Due to Broker(f)

    49,204     33,103  

Deferred Rent and Income

    19,228     6,141  

Accrued Compensation and Benefits

    17,265     12,744  

Interest Payable

    11,746     119,337  

Taxes Payable

    9,250     27,259  

Foreign Currency Options(g)

    3,362     11,736  

Fund Subscriptions Received in Advance

        68,050  

Other Liabilities

    16,911      
           

 

  $ 1,824,655   $ 1,085,217  
           

(a)
Represents the amount of carried interest payable to KKR's principals, professionals and other individuals with respect to KKR's active funds and co-investment vehicles that provide for carried interest. See Note 2 "Summary of Significant Accounting Policies."

(b)
Represents the obligations of KKR to deliver a specified security at a future point in time. Such securities are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments. The cost bases for these instruments at December 31, 2012 and 2011 were $343,440 and $200,973, respectively.

(c)
Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(d)
Represents amounts owed to third parties for investment purchases for which cash settlement has not occurred.

(e)
See Note 13 "Acquisitions."

(f)
Represents amounts owed for securities transactions initiated at clearing brokers.

(g)
Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. The instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments. The cost bases for these instruments at December 31, 2012 and 2011 was $0 and $18,791, respectively.