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:
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December 31,
2012 |
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December 31,
2011 |
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Interest and Notes Receivable(a) |
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$ |
469,456 |
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$ |
319,402 |
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Receivables |
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267,126 |
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30,060 |
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Intangible Assets, net(b) |
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197,484 |
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24,310 |
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Due from Broker(c) |
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189,202 |
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— |
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Foreign Exchange Forward Contracts(d) |
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137,786 |
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114,224 |
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Deferred Tax Assets, net |
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105,654 |
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34,125 |
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Unsettled Investment Sales(e) |
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90,666 |
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230,970 |
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Goodwill(f) |
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89,000 |
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— |
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Fixed Assets, net(g) |
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79,570 |
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59,619 |
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Deferred Financing Costs |
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20,918 |
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17,691 |
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Deferred Transaction Costs |
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14,633 |
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8,987 |
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Prepaid Expenses |
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12,079 |
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10,709 |
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Refundable Security Deposits |
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7,428 |
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8,242 |
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Foreign Currency Options(h) |
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4,992 |
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— |
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Other |
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15,061 |
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10,366 |
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$ |
1,701,055 |
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$ |
868,705 |
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- (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 $2,332.
Accounts Payable, Accrued Expenses and Other Liabilities consist of the following:
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December 31,
2012 |
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December 31,
2011 |
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Amounts Payable to Carry Pool(a) |
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$ |
776,750 |
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$ |
448,818 |
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Securities Sold Short(b) |
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350,353 |
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202,908 |
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Foreign Exchange Forward Contracts(c) |
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229,314 |
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— |
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Unsettled Investment Purchases(d) |
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172,583 |
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49,668 |
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Accounts Payable and Accrued Expenses |
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97,389 |
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105,453 |
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Contingent Consideration Obligation(e) |
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71,300 |
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— |
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Due to Broker(f) |
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49,204 |
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33,103 |
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Deferred Rent and Income |
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19,228 |
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6,141 |
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Accrued Compensation and Benefits |
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17,265 |
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12,744 |
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Interest Payable |
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11,746 |
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119,337 |
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Taxes Payable |
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9,250 |
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27,259 |
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Foreign Currency Options(g) |
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3,362 |
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11,736 |
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Fund Subscriptions Received in Advance |
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— |
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68,050 |
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Other Liabilities |
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16,911 |
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— |
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$ |
1,824,655 |
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$ |
1,085,217 |
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- (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.
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