OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2019

OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

Other Assets consist of the following:



	June 30, 2019		December 31, 2018
Unsettled Investment Sales ⁽¹⁾	$	59,433	$	101,789
Receivables	77,814		27,258
Due from Broker ⁽²⁾	224,932		396,512
Oil & Gas Assets, net ⁽³⁾	205,267		225,256
Deferred Tax Assets, net	286,728		538,161
Interest Receivable	261,186		241,547
Fixed Assets, net ⁽⁴⁾	588,195		451,206
Foreign Exchange Contracts and Options ⁽⁵⁾	204,629		177,264
Intangible Assets, net ⁽⁶⁾	8,867		9,863
Goodwill ⁽⁷⁾	83,500		83,500
Derivative Assets	31,617		40,995
Deposits	7,356		7,299
Prepaid Taxes	95,938		69,165
Prepaid Expenses	25,860		23,551
Operating Lease Right of Use Assets ⁽⁸⁾	138,053		—
Deferred Financing Costs	13,978		13,871
Other	101,114		129,455
Total	$	2,414,467	$	2,536,692


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


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

(3)

Includes proved and unproved oil and natural gas properties under the successful efforts method of accounting, which is net of impairment write-downs, accumulated depreciation, depletion and amortization. Depreciation, depletion and amortization amounted to $6.2 million and $6.5 million for the three months ended June 30, 2019 and 2018, respectively, and $20.0 million and $13.5 million for the six months ended June 30, 2019 and 2018, respectively.

(4)

Net of accumulated depreciation and amortization of $123.2 million and $113.5 million as of June 30, 2019 and December 31, 2018, respectively. Depreciation and amortization expense of $4.3 million and $3.8 million for the three months ended June 30, 2019 and 2018, respectively, and $8.7 million and $7.5 million for the six months ended June 30, 2019 and 2018, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations.

(5)

Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(6)

Net of accumulated amortization of $64.3 million and $63.5 million as of June 30, 2019 and December 31, 2018, respectively. Amortization expense of $0.4 million and $1.3 million for the three months ended June 30, 2019 and 2018, respectively, and $0.9 million and $6.3 million for the six months ended June 30, 2019 and 2018, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations.


(7)	As of June 30, 2019, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.

(8)

KKR’s non-cancelable operating leases consist of leases for office space around the world. KKR is the lessee under the terms of the operating leases. For the three and six months ended June 30, 2019, the operating lease cost was $12.0 million and $23.8 million, respectively.

Schedule of accounts payable, accrued expenses and other liabilities

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



	June 30, 2019		December 31, 2018
Amounts Payable to Carry Pool ⁽¹⁾	$	1,299,091	$	922,977
Unsettled Investment Purchases ⁽²⁾	500,371		541,165
Securities Sold Short ⁽³⁾	356,038		344,124
Derivative Liabilities	49,201		35,640
Accrued Compensation and Benefits	322,855		107,887
Interest Payable	216,085		212,969
Foreign Exchange Contracts and Options ⁽⁴⁾	18,235		60,749
Accounts Payable and Accrued Expenses	116,389		130,554
Taxes Payable	23,973		24,453
Uncertain Tax Positions	67,612		66,775
Unfunded Revolver Commitments	67,722		52,066
Operating Lease Liabilities ⁽⁵⁾	139,448		—
Other Liabilities	102,757		244,631
Total	$	3,279,777	$	2,743,990


(1)	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.


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

(3)

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

(4)

(5)

KKR’s operating leases have remaining lease terms that range from approximately one year to 14 years, some of which include options to extend the leases for up to three years. As of June 30, 2019, the weighted average remaining lease term and weighted average discount rate were 4.68 years and 2.67%, respectively.