SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of financial data of the entity's reportable segments

The following tables set forth information regarding KKR's segment results.




	As of and for the Three Months Ended						As of and for the Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Segment Revenues
Fees and Other, Net
Management Fees	$	261,450		$	229,569		$	513,035		$	437,853
Transaction Fees	163,925			156,465			320,770			399,500
Monitoring Fees	25,394			30,510			42,924			43,730
Fee Credits	(53,021		)	(51,384		)	(96,795		)	(140,401		)
Total Fees and Other, Net	397,748			365,160			779,934			740,682

Realized Performance Income (Loss)
Carried Interest	342,089			264,668			544,644			470,872
Incentive Fees	17,651			2,624			34,058			4,310
Total Realized Performance Income (Loss)	359,740			267,292			578,702			475,182

Realized Investment Income (Loss)
Net Realized Gains (Losses) ⁽¹⁾	97,480			7,180			105,355			86,631
Interest Income and Dividends	71,228			67,836			143,805			124,718
Total Realized Investment Income (Loss)	168,708			75,016			249,160			211,349
Total Segment Revenues	$	926,196		$	707,468		$	1,607,796		$	1,427,213

Segment Expenses
Compensation and Benefits ⁽²⁾	368,562			292,415			669,042			569,860
Occupancy and Related Charges	14,665			13,407			28,248			27,776
Other Operating Expenses ⁽³⁾	63,561			53,069			121,466			106,567
Total Segment Expenses	$	446,788		$	358,891		$	818,756		$	704,203

Segment Operating Earnings	479,408			348,577			789,040			723,010

Interest Expense	45,474			47,026			95,666			88,735
Preferred Dividends	8,341			8,341			16,682			16,682
Income (Loss) Attributable to Noncontrolling Interests	1,082			1,180			2,285			2,764
Income Taxes Paid	19,820			15,084			33,988			41,359
After-tax Distributable Earnings	$	404,691		$	276,946		$	640,419		$	573,470

Total Segment Assets	$	17,476,683		$	15,000,669		$	17,476,683		$	15,000,669


(1)	Given the extraordinary nature of the Conversion, the reported segment financial results for the three and six months ended June 30, 2018 exclude approximately $729.4 million of losses on certain investments which were realized in the second quarter in advance of the Conversion.


(2)	Includes equity-based compensation of $58,198 and $44,976 for the three months ended June 30, 2018 and 2017, respectively, and $125,994 and $94,919 for the six months ended June 30, 2018 and 2017, respectively.


(3)	For the three and six months ended June 30, 2018, excludes approximately $11.5 million of non-recurring costs in connection with the Conversion.

Segment revenues disaggregated by business line

The following tables provide KKR's segment revenues on a disaggregated basis by business line for the three and six months ended June 30, 2018 and 2017:



	Three Months Ended June 30, 2018
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	156,295		$	105,155		$	—	$	—	$	261,450
Transaction Fees	48,567			10,673			104,685		—		163,925
Monitoring Fees	25,394			—			—		—		25,394
Fee Credits	(43,249		)	(9,772		)	—		—		(53,021		)
Total Fees and Other, Net	187,007			106,056			104,685		—		397,748

Realized Performance Income (Loss)
Carried Interest	342,089			—			—		—		342,089
Incentive Fees	—			17,651			—		—		17,651
Total Realized Performance Income (Loss)	342,089			17,651			—		—		359,740

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		97,480		97,480
Interest Income and Dividends	—			—			—		71,228		71,228
Total Realized Investment Income (Loss)	—			—			—		168,708		168,708
Total	$	529,096		$	123,707		$	104,685	$	168,708	$	926,196



	Three Months Ended June 30, 2017
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	142,253		$	87,316		$	—	$	—	$	229,569
Transaction Fees	37,252			25,515			93,698		—		156,465
Monitoring Fees	30,510			—			—		—		30,510
Fee Credits	(31,750		)	(19,634		)	—		—		(51,384		)
Total Fees and Other, Net	178,265			93,197			93,698		—		365,160

Realized Performance Income (Loss)
Carried Interest	264,668			—			—		—		264,668
Incentive Fees	—			2,624			—		—		2,624
Total Realized Performance Income (Loss)	264,668			2,624			—		—		267,292

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		7,180		7,180
Interest Income and Dividends	—			—			—		67,836		67,836
Total Realized Investment Income (Loss)	—			—			—		75,016		75,016
Total	$	442,933		$	95,821		$	93,698	$	75,016	$	707,468



	Six Months Ended June 30, 2018
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	314,485		$	198,550		$	—	$	—	$	513,035
Transaction Fees	95,256			13,231			212,283		—		320,770
Monitoring Fees	42,924			—			—		—		42,924
Fee Credits	(84,592		)	(12,203		)	—		—		(96,795		)
Total Fees and Other, Net	368,073			199,578			212,283		—		779,934

Realized Performance Income (Loss)
Carried Interest	544,644			—			—		—		544,644
Incentive Fees	—			34,058			—		—		34,058
Total Realized Performance Income (Loss)	544,644			34,058			—		—		578,702

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		105,355		105,355
Interest Income and Dividends	—			—			—		143,805		143,805
Total Realized Investment Income (Loss)	—			—			—		249,160		249,160
Total	$	912,717		$	233,636		$	212,283	$	249,160	$	1,607,796



	Six Months Ended June 30, 2017
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	265,765		$	172,088		$	—	$	—	$	437,853
Transaction Fees	155,134			29,571			214,795		—		399,500
Monitoring Fees	43,730			—			—		—		43,730
Fee Credits	(117,400		)	(23,001		)	—		—		(140,401		)
Total Fees and Other, Net	347,229			178,658			214,795		—		740,682

Realized Performance Income (Loss)
Carried Interest	470,872			—			—		—		470,872
Incentive Fees	—			4,310			—		—		4,310
Total Realized Performance Income (Loss)	470,872			4,310			—		—		475,182

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		86,631		86,631
Interest Income and Dividends	—			—			—		124,718		124,718
Total Realized Investment Income (Loss)	—			—			—		211,349		211,349
Total	$	818,101		$	182,968		$	214,795	$	211,349	$	1,427,213

Schedule of reconciliation of financial information from total reportable segments to the most directly comparable financial measures calculated and presented in accordance with GAAP

The following tables reconcile the most directly comparable financial measures calculated and presented in accordance with GAAP to KKR's segment information:

Revenues



	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Total GAAP Revenues	$	971,620	$	1,015,800	$	1,444,226	$	1,783,555
Add: Management Fees - Consolidated Funds and Other	101,431		54,072		166,027		101,964
Deduct: Fee Credits - Consolidated Funds	18,174		2,707		32,895		3,646
Deduct: Capital Allocation-Based Income (GAAP)	557,774		635,015		635,986		1,022,591
Add: Segment Realized Carried Interest	342,089		264,668		544,644		470,872
Add: Segment Realized Investment Income (Loss)	168,708		75,016		249,160		211,349
Deduct: Revenue Earned by Other Consolidated Entities	31,128		28,290		56,593		54,665
Deduct: Expense Reimbursements	50,576		36,076		70,787		59,625
Total Segment Revenues	$	926,196	$	707,468	$	1,607,796	$	1,427,213

Expenses



	Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Total GAAP Expenses	$	675,050		$	629,728		$	1,111,651		$	1,169,742
Deduct: Equity-based and Other Compensation - KKR Holdings L.P.	29,247			42,964			61,942			104,057
Deduct: Segment Unrealized Performance Income Compensation	67,092			119,774			23,969			176,988
Deduct: Amortization of Intangibles	1,317			5,062			6,347			11,428
Deduct: Reimbursable Expenses	56,312			43,438			82,405			72,237
Deduct: Operating Expenses relating to Other Consolidated Entities	53,114			44,093			97,423			77,873
Deduct: One-time Non-recurring Costs ⁽¹⁾	11,501			—			11,501			—
Add: Other	(9,679		)	(15,506		)	(9,308		)	(22,956		)
Total Segment Expenses	$	446,788		$	358,891		$	818,756		$	704,203

(1) Represents non-recurring costs in connection with the Conversion.

Net Income (Loss) Attributable to KKR & Co. L.P. Common Unitholders



	Three Months Ended					Six Months Ended
	June 30, 2018			June 30, 2017		June 30, 2018			June 30, 2017
GAAP Net Income (Loss) Attributable to KKR & Co. L.P. Common Unitholders	$	680,381		$	405,646	$	850,483		$	664,989

Add: Net Income (Loss) Attributable to Noncontrolling Interests held by KKR Holdings L.P.	449,859			305,280		570,861			521,712
Add: Equity-based and Other Compensation - KKR Holdings L.P.	29,247			42,964		61,942			104,057
Add: Amortization of Intangibles and Other, net	(50,643		)	4,524		(2,934		)	37,361
Add: One-time Non-recurring Costs ⁽¹⁾	11,501			—		11,501			—
Add: Realized Losses on Certain Investments ⁽²⁾	729,425			—		729,425			—
Deduct: Unrealized Carried Interest	163,442			296,719		51,710			437,345
Deduct: Net Unrealized Gains (Losses)	1,389,869			307,977		1,597,731			512,013
Add: Unrealized Performance Income Compensation	67,092			119,774		23,969			176,988
Add: Income Tax Provision	60,960			18,538		78,601			59,080
Deduct: Income Taxes Paid	19,820			15,084		33,988			41,359

After-tax Distributable Earnings	$	404,691		$	276,946	$	640,419		$	573,470

(1)Represents non-recurring costs in connection with the Conversion.

(2) Represents losses on certain investments which were realized in the second quarter in advance of the Conversion.

Reconciliation of assets from segment to consolidated

Assets



	As of June 30,
	2018		2017
Total GAAP Assets	$	48,572,664	$	42,868,081
Less: Impact of Consolidation of Funds and Other Entities	29,701,863		26,412,562
Less: Carry Pool Reclassification from Liabilities	1,242,835		1,152,015
Less: Impact of KKR Management Holdings Corp.	151,283		302,835
Total Segment Assets	$	17,476,683	$	15,000,669