EQUITY BASED COMPENSATION (Tables)
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12 Months Ended |
Dec. 31, 2018 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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Schedule of expense associated with equity based compensation |
The following table summarizes the expense associated with equity-based compensation for the years ended December 31, 2018, 2017 and 2016, respectively. | | | | | | | | | | | | | | For the Years Ended December 31, | | 2018 | | 2017 | | 2016 | Equity Incentive Plan | $ | 242,811 |
| | $ | 204,308 |
| | $ | 186,227 |
| KKR Holdings Principal Awards | 104,625 |
| | 143,204 |
| | 44,837 |
| Other Exchangeable Securities | — |
| | — |
| | 12,091 |
| Total (1) | $ | 347,436 |
| | $ | 347,512 |
| | $ | 243,155 |
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| | (1) | Includes $11,735 and $11,214 of equity based charges for the years ended December 31, 2018 and 2017 related to employees of equity method investees. Such amounts are included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. |
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Summary of information regarding the discount for the lack of participation rights in the expected dividends for shares granted |
The following table presents information regarding the discount for the lack of participation rights in the expected dividends for shares granted subsequent to December 31, 2015.
| | | | | | Date of Grant | | Discount per share (1) | January 1, 2016 to December 31, 2016 | | $ | 0.64 |
| January 1, 2017 to December 31, 2017 | | $ | 0.68 |
| January 1, 2018 to June 30, 2018 | | $ | 0.68 |
| July 1, 2018 to Present | | $ | 0.50 |
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| | (1) | Represents the annual discount for the lack of participation rights on expected dividends. The total discount on any given tranche of unvested shares is calculated as the discount per share multiplied by the number of years in the applicable vesting period. |
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Summary of significant assumptions used to estimate grant date fair value of Market Condition Awards |
Below is a summary of the significant assumptions used to estimate the grant date fair value of the Market Condition Awards:
| | | | | Closing KKR share price as of valuation date | | $19.90 | Risk Free Rate | | 2.02 | % | Volatility | | 25.00 | % | Dividend Yield | | 3.42 | % | Expected Cost of Equity | | 11.02 | % |
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Schedule of unrecognized expense of equity incentive plan awards expected to be recognized |
As of December 31, 2018, there was approximately $400.0 million of total estimated unrecognized expense related to unvested awards, including Market Condition Awards. That cost is expected to be recognized as follows: | | | | | | Year | | Unrecognized Expense (in millions) | 2019 | | $ | 191.9 |
| 2020 | | 133.7 |
| 2021 | | 57.7 |
| 2022 | | 15.8 |
| 2023 | | 0.9 |
| Total | | $ | 400.0 |
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Schedule of unvested awards granted under equity incentive plan |
A summary of the status of unvested awards granted under the Equity Incentive Plan, excluding Market Condition Awards as described above, from January 1, 2018 through December 31, 2018 is presented below: | | | | | | | | | Shares | | Weighted Average Grant Date Fair Value | Balance, January 1, 2018 | 46,422,733 |
| | $ | 14.98 |
| Granted | 5,489,046 |
| | 22.42 |
| Vested | (16,101,190 | ) | | 15.02 |
| Forfeitures | (2,410,406 | ) | | 14.37 |
| Balance, December 31, 2018 | 33,400,183 |
| | $ | 16.23 |
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Schedule of remaining vesting tranches of awards granted under the equity incentive plan |
A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plan is presented below: | | | | | Vesting Date | | Shares | April 1, 2019 | | 9,134,599 |
| October 1, 2019 | | 4,811,012 |
| April 1, 2020 | | 7,294,238 |
| October 1, 2020 | | 3,633,747 |
| April 1, 2021 | | 4,178,268 |
| October 1, 2021 | | 2,131,927 |
| April 1, 2022 | | 923,830 |
| October 1, 2022 | | 1,201,390 |
| October 1, 2023 | | 91,172 |
| | | 33,400,183 |
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Schedule of unrecognized expense of unvested KKR Holdings awards expected to be recognized |
As of December 31, 2018, there was approximately $257.2 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows: | | | | | | Year | | Unrecognized Expense (in millions) | 2019 | | $ | 96.2 |
| 2020 | | 88.1 |
| 2021 | | 47.5 |
| 2022 | | 25.4 |
| Total | | $ | 257.2 |
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Schedule of unvested holding awards granted |
A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2018 through December 31, 2018 is presented below: | | | | | | | | | Units | | Weighted Average Grant Date Fair Value | Balance, January 1, 2018 | 30,848,583 |
| | $ | 14.42 |
| Granted | 450,000 |
| | 20.90 |
| Vested | (6,494,590 | ) | | 15.15 |
| Forfeitures | (680,000 | ) | | 11.99 |
| Balance, December 31, 2018 | 24,123,993 |
| | $ | 14.42 |
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Schedule of remaining vesting tranches of holding awards granted |
A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below: | | | | | Vesting Date | | Units | April 1, 2019 | | 229,514 |
| May 1, 2019 | | 3,680,000 |
| October 1, 2019 | | 2,455,000 |
| April 1, 2020 | | 124,479 |
| May 1, 2020 | | 3,680,000 |
| October 1, 2020 | | 2,940,000 |
| May 1, 2021 | | 3,680,000 |
| October 1, 2021 | | 3,425,000 |
| October 1, 2022 | | 3,910,000 |
| | | 24,123,993 |
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