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OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES
6 Months Ended
Jun. 30, 2014
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:

 

 

 

June 30,
2014

 

December 31,
2013

 

Oil & Gas Assets, net

 

$

785,797

 

$

187,448

 

Due from Broker (a)

 

543,311

 

720,245

 

Unsettled Investment Sales (b)

 

482,907

 

85,097

 

Interest, Dividend and Notes Receivable (c)

 

300,550

 

380,099

 

Intangible Assets, net (d)

 

229,969

 

177,545

 

Deferred Tax Assets, net

 

209,148

 

165,699

 

Goodwill (d)

 

89,000

 

89,000

 

Fixed Assets, net (e)

 

78,663

 

80,565

 

Receivables

 

71,181

 

19,455

 

Foreign Exchange Contracts and Options (f)

 

62,505

 

89,090

 

Deferred Financing Costs

 

30,511

 

22,773

 

Prepaid Taxes

 

26,705

 

26,901

 

Prepaid Expenses

 

13,648

 

9,846

 

Other

 

44,124

 

40,867

 

Total

 

$

2,968,019

 

$

2,094,630

 

 

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

 

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

 

(c)          Represents interest and dividend receivables 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.

 

(d)         See Note 15 “Goodwill and Intangible Assets.”

 

(e)          Net of accumulated depreciation and amortization of $116,749 and $100,724 as of June 30, 2014 and December 31, 2013, respectively. Depreciation and amortization expense totaled $4,155 and $3,726 for the three months ended June 30, 2014 and 2013, respectively, and $8,202 and $7,423 for the six months ended June 30, 2014 and 2013, respectively.

 

(f)          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 condensed consolidated statements of operations. See Note 3 “Net Gains (Losses) from Investment Activities” for the net changes in fair value associated with these instruments.

 

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

 

 

 

June 30,
2014

 

December 31,
2013

 

Amounts Payable to Carry Pool (a)

 

$

1,060,094

 

$

1,062,643

 

Unsettled Investment Purchases (b)

 

565,348

 

260,164

 

Securities Sold Short (c) 

 

470,927

 

676,144

 

Foreign Exchange Contracts and Options (d)

 

356,107

 

414,782

 

Accounts Payable and Accrued Expenses

 

206,950

 

165,092

 

Contingent Consideration Obligation (e)

 

160,000

 

122,800

 

Accrued Compensation and Benefits

 

124,319

 

21,531

 

Interest Payable

 

57,917

 

23,700

 

Due to Broker (f)

 

42,524

 

28,669

 

Deferred Rent and Income

 

32,145

 

28,029

 

Redemptions Payable

 

26,908

 

13,618

 

Taxes Payable

 

5,948

 

5,742

 

Other Liabilities

 

83,348

 

17,012

 

Total

 

$

3,192,535

 

$

2,839,926

 

 

(a)         Represents the amount of carried interest payable to principals, professionals and other individuals with respect to KKR’s active funds and co-investment vehicles that provide for carried interest.

 

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

 

(c)          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 condensed 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 June 30, 2014 and December 31, 2013 were $455,869 and $650,026, respectively.

 

(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 condensed 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 the fair value of the contingent consideration related to the acquisition of Prisma.

 

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