SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 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 Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Segment Revenues
Fees and Other, Net
Management Fees	$	276,595		$	232,954		$	789,630		$	670,807
Transaction Fees	289,030			179,167			609,800			578,667
Monitoring Fees	20,176			14,342			63,100			58,072
Fee Credits	(82,187		)	(70,747		)	(178,982		)	(211,148		)
Total Fees and Other, Net	503,614			355,716			1,283,548			1,096,398

Realized Performance Income (Loss)
Carried Interest	414,609			419,438			959,253			890,310
Incentive Fees	18,001			4,074			52,059			8,384
Total Realized Performance Income (Loss)	432,610			423,512			1,011,312			898,694

Realized Investment Income (Loss)
Net Realized Gains (Losses) ⁽¹⁾	181,026			76,053			286,381			162,684
Interest Income and Dividends	61,717			70,557			205,522			195,275
Total Realized Investment Income (Loss)	242,743			146,610			491,903			357,959
Total Segment Revenues	$	1,178,967		$	925,838		$	2,786,763		$	2,353,051

Segment Expenses
Compensation and Benefits ⁽²⁾	469,107			363,247			1,138,149			933,107
Occupancy and Related Charges	14,571			14,672			42,819			42,448
Other Operating Expenses ⁽³⁾	73,402			70,517			194,868			177,084
Total Segment Expenses	$	557,080		$	448,436		$	1,375,836		$	1,152,639

Segment Operating Earnings	621,887			477,402			1,410,927			1,200,412

Interest Expense	44,696			45,613			140,362			134,348
Preferred Dividends	8,341			8,341			25,023			25,023
Income (Loss) Attributable to Noncontrolling Interests	2,272			1,046			4,557			3,810
Income Taxes Paid	69,880			12,869			103,868			54,228
After-tax Distributable Earnings	$	496,698		$	409,533		$	1,137,117		$	983,003

Total Segment Assets	$	18,772,875		$	15,347,999		$	18,772,875		$	15,347,999


(1)	Given the extraordinary nature of the Conversion, the reported segment financial results for the nine months ended September 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 $59,801 and $54,921 for the three months ended September 30, 2018 and 2017, respectively, and $185,795 and $149,840 for the nine months ended September 30, 2018 and 2017, respectively.


(3)	For the nine months ended September 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 nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30, 2018
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	176,071		$	100,524		$	—	$	—	$	276,595
Transaction Fees	93,866			8,666			186,498		—		289,030
Monitoring Fees	20,176			—			—		—		20,176
Fee Credits	(73,571		)	(8,616		)	—		—		(82,187		)
Total Fees and Other, Net	216,542			100,574			186,498		—		503,614

Realized Performance Income (Loss)
Carried Interest	404,709			9,900			—		—		414,609
Incentive Fees	—			18,001			—		—		18,001
Total Realized Performance Income (Loss)	404,709			27,901			—		—		432,610

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		181,026		181,026
Interest Income and Dividends	—			—			—		61,717		61,717
Total Realized Investment Income (Loss)	—			—			—		242,743		242,743
Total	$	621,251		$	128,475		$	186,498	$	242,743	$	1,178,967



	Three Months Ended September 30, 2017
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	153,841		$	79,113		$	—	$	—	$	232,954
Transaction Fees	82,258			11,469			85,440		—		179,167
Monitoring Fees	14,342			—			—		—		14,342
Fee Credits	(59,854		)	(10,893		)	—		—		(70,747		)
Total Fees and Other, Net	190,587			79,689			85,440		—		355,716

Realized Performance Income (Loss)
Carried Interest	419,438			—			—		—		419,438
Incentive Fees	—			4,074			—		—		4,074
Total Realized Performance Income (Loss)	419,438			4,074			—		—		423,512

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		76,053		76,053
Interest Income and Dividends	—			—			—		70,557		70,557
Total Realized Investment Income (Loss)	—			—			—		146,610		146,610
Total	$	610,025		$	83,763		$	85,440	$	146,610	$	925,838



	Nine Months Ended September 30, 2018
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	490,556		$	299,074		$	—	$	—	$	789,630
Transaction Fees	189,122			21,897			398,781		—		609,800
Monitoring Fees	63,100			—			—		—		63,100
Fee Credits	(158,163		)	(20,819		)	—		—		(178,982		)
Total Fees and Other, Net	584,615			300,152			398,781		—		1,283,548

Realized Performance Income (Loss)
Carried Interest	949,353			9,900			—		—		959,253
Incentive Fees	—			52,059			—		—		52,059
Total Realized Performance Income (Loss)	949,353			61,959			—		—		1,011,312

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		286,381		286,381
Interest Income and Dividends	—			—			—		205,522		205,522
Total Realized Investment Income (Loss)	—			—			—		491,903		491,903
Total	$	1,533,968		$	362,111		$	398,781	$	491,903	$	2,786,763



	Nine Months Ended September 30, 2017
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	419,606		$	251,201		$	—	$	—	$	670,807
Transaction Fees	237,392			41,040			300,235		—		578,667
Monitoring Fees	58,072			—			—		—		58,072
Fee Credits	(177,254		)	(33,894		)	—		—		(211,148		)
Total Fees and Other, Net	537,816			258,347			300,235		—		1,096,398

Realized Performance Income (Loss)
Carried Interest	890,310			—			—		—		890,310
Incentive Fees	—			8,384			—		—		8,384
Total Realized Performance Income (Loss)	890,310			8,384			—		—		898,694

Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		162,684		162,684
Interest Income and Dividends	—			—			—		195,275		195,275
Total Realized Investment Income (Loss)	—			—			—		357,959		357,959
Total	$	1,428,126		$	266,731		$	300,235	$	357,959	$	2,353,051

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				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Total GAAP Revenues	$	1,129,666	$	749,652	$	2,573,892	$	2,533,207
Add: Management Fees - Consolidated Funds and Other	104,356		53,454		270,383		155,418
Deduct: Fee Credits - Consolidated Funds	8,283		106		41,178		3,752
Deduct: Capital Allocation-Based Income (GAAP)	638,163		394,234		1,274,149		1,416,825
Add: Segment Realized Carried Interest	414,609		419,438		959,253		890,310
Add: Segment Realized Investment Income (Loss)	242,743		146,610		491,903		357,959
Deduct: Revenue Earned by Other Consolidated Entities	27,749		21,470		84,342		76,135
Deduct: Expense Reimbursements	38,212		27,506		108,999		87,131
Total Segment Revenues	$	1,178,967	$	925,838	$	2,786,763	$	2,353,051

Expenses



	Three Months Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Total GAAP Expenses	$	740,090		$	530,247		$	1,851,741		$	1,699,989
Deduct: Equity-based and Other Compensation - KKR Holdings L.P.	25,327			23,807			87,269			127,864
Deduct: Segment Unrealized Performance Income Compensation	57,407			(19,826		)	81,376			157,162
Deduct: Amortization of Intangibles	681			2,473			7,028			13,901
Deduct: Reimbursable Expenses	43,382			35,098			125,787			107,335
Deduct: Operating Expenses relating to Other Consolidated Entities	37,845			43,818			135,268			121,691
Deduct: One-time Non-recurring Costs ⁽¹⁾	—			—			11,501			—
Add: Other	(18,368		)	3,559			(27,676		)	(19,397		)
Total Segment Expenses	$	557,080		$	448,436		$	1,375,836		$	1,152,639


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

Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders



	Three Months Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
GAAP Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	640,198		$	153,563		$	1,490,681		$	818,552

Add: Net Income (Loss) Attributable to Noncontrolling Interests held by KKR Holdings L.P.	293,659			115,434			864,520			637,146
Add: Equity-based and Other Compensation - KKR Holdings L.P.	25,537			23,807			87,479			127,864
Add: Amortization of Intangibles and Other, net	60,948			20,464			58,014			57,825
Add: One-time Non-recurring Costs ⁽¹⁾	—			—			11,501			—
Add: Realized Losses on Certain Investments ⁽²⁾	—			—			729,425			—
Deduct: Unrealized Carried Interest	130,420			(59,638		)	182,130			377,707
Deduct: Net Unrealized Gains (Losses)	251,346			(50,902		)	1,849,077			461,111
Add: Unrealized Performance Income Compensation	57,407			(19,826		)	81,376			157,162
Add: Income Tax Provision	(129,405		)	18,420			(50,804		)	77,500
Deduct: Income Taxes Paid	69,880			12,869			103,868			54,228

After-tax Distributable Earnings	$	496,698		$	409,533		$	1,137,117		$	983,003


(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 September 30,
	2018		2017
Total GAAP Assets	$	50,343,948	$	44,305,639
Deduct: Impact of Consolidation of Funds and Other Entities	30,354,674		27,524,641
Deduct: Carry Pool Reclassification from Liabilities	1,300,165		1,131,071
Add: Tax Reclassifications	83,766		—
Deduct: Impact of KKR Management Holdings Corp.	—		301,928
Total Segment Assets	$	18,772,875	$	15,347,999