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EQUITY BASED COMPENSATION (Tables)
9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of expense associated with equity based compensation
The following table summarizes the expense associated with equity-based compensation for the three and nine months ended September 30, 2020 and 2019, respectively.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2020
 
2019
 
2020
 
2019
Equity Incentive Plans
$
42,488

 
$
54,395

 
$
133,424

 
$
157,891

KKR Holdings Principal Awards
21,759

 
22,539

 
63,358

 
69,008

Total (1)
$
64,247

 
$
76,934

 
$
196,782

 
$
226,899


(1)
Includes approximately $26.4 thousand and $0.4 million of equity based compensation for the three and nine months ended September 30, 2020, respectively, and $0.6 million and $1.1 million of equity based compensation for the three and nine months ended September 30, 2019, respectively, related to employees of equity method investees. Such amounts are included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations.
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 by grant date:
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 December 31, 2019
 
$
0.50

January 1, 2020 to Present
 
$
0.54

(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.
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
%

Schedule of unrecognized expense of equity incentive plan awards expected to be recognized
As of September 30, 2020, there was approximately $168.8 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)
Remainder of 2020
 
$
31.6

2021
 
86.4

2022
 
39.7

2023
 
9.1

2024
 
1.7

2025
 
0.3

Total
 
$
168.8


Schedule of unvested awards granted under equity incentive plan
A summary of the status of unvested awards granted under the Equity Incentive Plans, excluding Market Condition Awards as described above, from January 1, 2020 through September 30, 2020 is presented below:
 
Shares
 
Weighted
Average Grant
Date Fair Value
Balance, January 1, 2020
22,697,645

 
$
18.46

Granted
437,942

 
25.91

Vested
(6,687,215
)
 
15.57

Forfeitures
(798,170
)
 
19.21

Balance, September 30, 2020
15,650,202

 
$
19.87

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 Plans is presented below:
Vesting Date
 
Shares
October 1, 2020
 
4,013,270

April 1, 2021
 
4,639,350

October 1, 2021
 
2,648,552

April 1, 2022
 
1,620,660

October 1, 2022
 
1,402,618

April 1, 2023
 
837,401

October 1, 2023
 
168,537

April 1, 2024
 
187,970

October 1, 2024
 
5,133

April 1, 2025
 
126,711

 
 
15,650,202


Schedule of unrecognized expense of unvested KKR Holdings awards expected to be recognized
As of September 30, 2020, there was approximately $87.1 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)
Remainder of 2020
 
$
16.5

2021
 
44.8

2022
 
25.8

Total
 
$
87.1


Schedule of unvested holding awards granted
A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2020 through September 30, 2020 is presented below:
 
Units
 
Weighted
Average Grant
Date Fair Value
Balance, January 1, 2020
16,569,479

 
$
14.43

Granted

 

Vested
(3,029,479
)
 
11.86

Forfeitures
(360,000
)
 
11.19

Balance, September 30, 2020
13,180,000

 
$
15.12


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
October 1, 2020
 
2,940,000

May 1, 2021
 
2,905,000

October 1, 2021
 
3,425,000

October 1, 2022
 
3,910,000

 
 
13,180,000