XML 61 R46.htm IDEA: XBRL DOCUMENT v3.21.2
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)
9 Months Ended
Sep. 30, 2021
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES  
Schedule of other assets
Other Assets consist of the following:
 September 30, 2021December 31, 2020
Asset Management
Unsettled Investment Sales (1)
$500,507 $197,635 
Receivables39,789 75,697 
Due from Broker (2)
291,775 644,028 
Deferred Tax Assets, net (See Note 17)91,959 83,822 
Interest Receivable191,085 145,532 
Fixed Assets, net (3)
813,488 760,606 
Foreign Exchange Contracts and Options (4)
427,929 250,398 
Goodwill (5)
83,500 83,500 
Derivative Assets1,747 7,839 
Prepaid Taxes91,295 77,041 
Prepaid Expenses33,720 26,366 
Operating Lease Right of Use Assets (6)
224,855 190,758 
Deferred Financing Costs18,243 22,810 
Other144,438 99,304 
Total Asset Management$2,954,330 $2,665,336 
Insurance
Unsettled Investment Sales(1)
$2,272,772 $— 
Deferred Tax Assets, net 779,889 — 
Derivative Assets1,117,953 — 
Accrued Investment Income825,124 — 
Goodwill497,053 — 
Intangible Assets and Deferred Sales Inducements(7)
298,235 — 
Operating Lease Right of Use Assets(6)
162,435 — 
Other123,431 — 
Premiums and Other Account Receivables66,328 — 
Current Income Tax Recoverable5,151 — 
Total Insurance$6,148,371 $ 
Total Other Assets$9,102,701 $2,665,336 
(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)Net of accumulated depreciation and amortization of $130.1 million and $151.3 million as of September 30, 2021 and December 31, 2020, respectively. Depreciation and amortization expense of $11.3 million and $4.6 million for the three months ended September 30, 2021 and 2020, respectively, and $33.6 million and $14.2 million for the nine months ended September 30, 2021 and 2020, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations.
(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 4 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments.
(5)As of September 30, 2021, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.
(6)For Asset Management, 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 $11.9 million and $13.9 million for the three months ended September 30, 2021 and 2020, respectively, and $37.1 million and $39.7 million for the nine months ended September 30, 2021 and 2020, respectively. For Insurance, non-cancelable operating leases consist of leases for office space and renewable energy forward power purchase agreements in the U.S. For the three and nine months ended September 30, 2021 the operating lease costs were $3.9 million and $10.5 million, respectively. Insurance lease right-of-use assets are reported net of $21.1 million in deferred rent and lease incentives.
(7)The definite life intangible assets are amortized by using the straight-line method over the useful life of the assets which is an average of 17 years. The indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million and $11.8 million for the three and nine months ended September 30, 2021, respectively.
Schedule of accounts payable, accrued expenses and other liabilities
Accrued Expenses and Other Liabilities consist of the following:
 September 30, 2021December 31, 2020
Asset Management
Amounts Payable to Carry Pool (1)
$3,562,686 $1,916,669 
Unsettled Investment Purchases (2)
1,382,929 850,714 
Securities Sold Short (3) 
262,151 281,826 
Derivative Liabilities37,798 126,950 
Accrued Compensation and Benefits847,283 150,883 
Interest Payable159,129 182,044 
Foreign Exchange Contracts and Options (4)
444,713 551,728 
Accounts Payable and Accrued Expenses161,952 130,661 
Taxes Payable28,979 88,040 
Uncertain Tax Positions 76,643 76,643 
Unfunded Revolver Commitments50,910 46,340 
Operating Lease Liabilities (5)
227,624 191,564 
Deferred Tax Liabilities, net (See Note 17)1,091,098 199,425 
Other Liabilities580,844 464,326 
Total Asset Management$8,914,739 $5,257,813 
Insurance
Unsettled Investment Purchases(2)
$1,930,044 $— 
Collateral on Derivative Instruments967,632 
Accrued Expenses542,510 — 
Securities Sold Under Agreements to Repurchase317,938 — 
Derivative Liabilities174,786 — 
Operating Lease Liabilities(5)
181,302 — 
Accrued Employee Related Expenses189,471 — 
Tax Payable to Former Parent Company73,608 — 
Interest Payable36,086 — 
Accounts and Commissions Payable19,798 — 
Other Tax Related Liabilities9,787 — 
Total Insurance$4,442,962 $ 
Total Accrued Expenses and Other Liabilities$13,357,701 $5,257,813 
(1)Represents the amount of carried interest payable to current and former KKR employees with respect to KKR's investment 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 4 "Net Gains (Losses) from Investment Activities - Asset Management" 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 4 "Net Gains (Losses) from Investment Activities- Asset Management" for the net changes in fair value associated with these instruments.
(5)For Asset Management, operating leases have remaining lease terms that range from approximately 1 year to 14 years, some of which include options to extend the leases for up to 3 years. The weighted average remaining lease terms were 9.1 years and 9.8 years as of September 30, 2021 and December 31, 2020, respectively. The weighted average discount rates were 1.2% and 1.2% as of September 30, 2021 and December 31, 2020, respectively. For Insurance, operating leases for office space have remaining lease terms that range from approximately 1 year to 12 years, some of which include options to extend the leases for up to 10 years. The weighted average remaining lease terms was 8.0 years as of September 30, 2021. The weighted average discount rates was 2.9% as of September 30, 2021.