GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2013

14. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill from the acquisition of KKR Prisma represents the excess of acquisition cost over the fair value of net tangible and intangible assets acquired. The carrying value of goodwill was $89.0 million as of December 31, 2013 and is recorded within Other Assets in the accompanying consolidated statements of financial condition. This goodwill has been allocated entirely to the Public Markets Segment. As of December 31, 2013, the fair value of KKR's reportable segments substantially exceeded their respective carrying values. All of the goodwill is currently expected to be deductible for tax purposes. See Note 7 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities."

Intangible Assets

Intangible Assets, Net consists of the following:

	December 31, 2013			December 31, 2012

Finite—Lived Intangible Assets	$	218,886		$	218,886
Accumulated Amortization		(41,341	)		(21,402	)


Intangible Assets, Net	$	177,545		$	197,484

Changes in Intangible Assets, Net consists of the following:

	December 31, 2013			December 31, 2012

Balance, Beginning of Year	$	197,484		$	24,310
Acquisitions		—			181,000
Amortization Expense		(19,939	)		(7,826	)


Intangible Assets, Net	$	177,545		$	197,484

Amortization expense relating to intangible assets held at December 31, 2013 is expected to be $19.9 million for each of the years ending December 31, 2014 through 2016, $19.4 million for the year ended December 31, 2017 and $15.5 million for the year ended December 31, 2018. The intangible assets as of December 31, 2013 are expected to amortize over a weighted-average period of 10.4 years.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details