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OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)
9 Months Ended
Sep. 30, 2020
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES  
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.