Schedule of other assets |
Other Assets consist of the following: | | | | | | | | | | September 30, 2020 | | December 31, 2019 | Unsettled Investment Sales (1) | $ | 684,163 |
| | $ | 86,033 |
| Receivables | 58,785 |
| | 26,893 |
| Due from Broker (2) | 255,871 |
| | 65,154 |
| Oil & Gas Assets, net (3) | — |
| | 215,243 |
| Deferred Tax Assets, net | 176,950 |
| | 158,574 |
| Interest Receivable | 188,476 |
| | 156,026 |
| Fixed Assets, net (4) | 722,735 |
| | 633,025 |
| Foreign Exchange Contracts and Options (5) | 234,358 |
| | 188,572 |
| Goodwill (6) | 83,500 |
| | 83,500 |
| Derivative Assets | 41,718 |
| | 23,139 |
| Prepaid Taxes | 78,527 |
| | 84,462 |
| Prepaid Expenses | 29,303 |
| | 14,596 |
| Operating Lease Right of Use Assets (7) | 160,139 |
| | 121,101 |
| Deferred Financing Costs | 18,520 |
| | 12,374 |
| Other | 275,312 |
| | 139,544 |
| Total | $ | 3,008,357 |
| | $ | 2,008,236 |
|
| | (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 of $5.7 million and $4.7 million for the three months ended September 30, 2020 and 2019, respectively, and $18.1 million and $24.7 million for the nine months ended September 30, 2020 and 2019, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. As discussed in Note 2 "Summary of Significant Accounting Policies", all the working and royalty interests in oil and natural gas properties, which were directly held by KKR, were transferred into a consolidated investment fund. |
| | (4) | Net of accumulated depreciation and amortization of $146.6 million and $132.7 million as of September 30, 2020 and December 31, 2019, respectively. Depreciation and amortization expense of $4.6 million and $4.3 million for the three months ended September 30, 2020 and 2019, respectively, and $14.2 million and $13.0 million for the nine months ended September 30, 2020 and 2019, 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) | As of September 30, 2020, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit. |
(7) KKR’s non-cancelable operating leases consist of leases for office space in North America, Europe, Asia and Australia. KKR is the lessee under the terms of the operating leases. The operating lease cost was $13.9 million and $12.0 million for the three months ended September 30, 2020 and 2019, respectively, and $39.7 million and $35.7 million for the nine months ended September 30, 2020 and 2019, respectively.
|
Schedule of accounts payable, accrued expenses and other liabilities |
Accounts Payable, Accrued Expenses and Other Liabilities consist of the following: | | | | | | | | | | September 30, 2020 | | December 31, 2019 | Amounts Payable to Carry Pool (1) | $ | 1,393,381 |
| | $ | 1,448,879 |
| Unsettled Investment Purchases (2) | 1,352,482 |
| | 481,337 |
| Securities Sold Short (3) | 434,598 |
| | 251,223 |
| Derivative Liabilities | 115,221 |
| | 34,174 |
| Accrued Compensation and Benefits | 558,179 |
| | 131,719 |
| Interest Payable | 177,434 |
| | 234,165 |
| Foreign Exchange Contracts and Options (4) | 263,927 |
| | 39,364 |
| Accounts Payable and Accrued Expenses | 156,963 |
| | 118,454 |
| Taxes Payable | 36,484 |
| | 32,682 |
| Uncertain Tax Positions | 68,665 |
| | 65,716 |
| Unfunded Revolver Commitments | 56,085 |
| | 75,842 |
| Operating Lease Liabilities (5) | 161,165 |
| | 125,086 |
| Other Liabilities | 86,534 |
| | 58,922 |
| Total | $ | 4,861,118 |
| | $ | 3,097,563 |
|
| | (1) | Represents the amount of carried interest payable to current and former KKR employees 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) | 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. |
(5) KKR’s operating leases have remaining lease terms that range from approximately one year to 15 years, some of which include options to extend the leases for up to three years. The weighted average remaining lease terms were 8.78 years and 4.46 years as of September 30, 2020 and December 31, 2019, respectively. The weighted average discount rates were 1.33% and 2.53% as of September 30, 2020 and December 31, 2019, respectively.
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