OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
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OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other assets | Other Assets consist of the following:
(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.
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Schedule of accounts payable, accrued expenses and other liabilities | Accrued Expenses and Other Liabilities consist of the following:
(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.
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