XML 39 R23.htm IDEA: XBRL DOCUMENT v3.22.1
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES
3 Months Ended
Mar. 31, 2022
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES  
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES
Other Assets consist of the following:
 March 31, 2022December 31, 2021
Asset Management
Unsettled Investment Sales (1)
$200,402 $182,267 
Receivables82,966 81,133 
Due from Broker (2)
28,899 365,053 
Deferred Tax Assets, net (See Note 18)95,533 85,770 
Interest Receivable147,124 144,221 
Fixed Assets, net (3)
819,069 820,143 
Foreign Exchange Contracts and Options (4)
367,079 590,637 
Goodwill (5)
83,500 83,500 
Derivative Assets5,294 491 
Prepaid Taxes65,692 93,296 
Prepaid Expenses37,127 29,290 
Operating Lease Right of Use Assets (6)
220,458 228,363 
Deferred Financing Costs15,989 17,953 
Other238,582 164,196 
Total Asset Management$2,407,714 $2,886,313 
Insurance
Unsettled Investment Sales(1)
$1,613,094 $941,427 
Deferred Tax Assets, net 1,536,986 755,876 
Derivative Assets1,024,589 1,295,950 
Accrued Investment Income898,120 817,486 
Goodwill (8)
501,496 501,496 
Intangible Assets and Deferred Sales Inducements(7)
289,412 293,824 
Operating Lease Right of Use Assets(6)
171,344 160,888 
Premiums and Other Account Receivables117,997 86,524 
Other96,576 96,093 
Current Income Tax Recoverable53,161 103,954 
Total Insurance$6,302,775 $5,053,518 
Total Other Assets$8,710,489 $7,939,831 
(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 $153.5 million and $141.6 million as of March 31, 2022 and December 31, 2021, respectively. Depreciation and amortization expense of $12.7 million and $11.0 million for the three months ended March 31, 2022 and 2021, 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 5 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments.
(5)As of March 31, 2022, 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 $12.2 million and $11.5 million for the three months ended March 31, 2022 and 2021, respectively. For Insurance, non-cancelable operating leases consist of leases for office space and land in the U.S. For the three months ended March 31, 2022 and 2021, the operating lease cost was $5.9 million and $2.6 million, respectively. Insurance lease right-of-use assets are reported net of $22.2 million and $22.7 million in deferred rent and lease incentives as of March 31, 2022 and December 31, 2021, respectively. The weighted average remaining lease term was 26.9 years and 27.9 years as of March 31, 2022 and December 31, 2021, respectively.
(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 16 years. The indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million and $2.5 million for the three months ended March 31, 2022 and 2021, respectively.
(8)The amounts include approximately $4.5 million of goodwill related to an immaterial acquisition of a residential mortgage platform, which Global Atlantic acquired in October 2021 for a purchase price consideration of $4.6 million.
Accrued Expenses and Other Liabilities consist of the following:
 March 31, 2022December 31, 2021
Asset Management
Amounts Payable to Carry Pool (1)
$3,138,465 $3,650,312 
Unsettled Investment Purchases (2)
1,138,357 1,315,163 
Securities Sold Short (3) 
136,128 249,383 
Derivative Liabilities28,077 45,003 
Accrued Compensation and Benefits438,550 210,789 
Interest Payable161,358 162,801 
Foreign Exchange Contracts and Options (4)
239,875 319,511 
Accounts Payable and Accrued Expenses170,398 187,564 
Taxes Payable104,796 42,745 
Uncertain Tax Positions 54,975 78,226 
Unfunded Revolver Commitments64,556 64,276 
Operating Lease Liabilities (5)
223,652 230,995 
Deferred Tax Liabilities, net (See Note 18)791,575 900,436 
Other Liabilities551,024 439,693 
Total Asset Management$7,241,786 $7,896,897 
Insurance
Unsettled Investment Purchases(2)
$1,138,365 $395,722 
Collateral on Derivative Instruments894,687 1,086,061 
Accrued Expenses753,160 747,237 
Securities Sold Under Agreements to Repurchase810,535 300,446 
Derivative Liabilities462,202 145,163 
Accrued Employee Related Expenses248,861 280,668 
Operating Lease Liabilities(5)
190,855 180,574 
Tax Payable to Former Parent Company64,886 74,423 
Interest Payable32,353 12,930 
Accounts and Commissions Payable15,196 26,054 
Other Tax Related Liabilities4,741 14,288 
Total Insurance$4,615,841 $3,263,566 
Total Accrued Expenses and Other Liabilities$11,857,627 $11,160,463 
(1)Represents the amount of carried interest payable to current and former KKR employees arising from 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 5 "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 5 "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 9.4 years and 9.5 years as of March 31, 2022 and December 31, 2021, respectively. The weighted average discount rates were 1.2% and 1.2% as of March 31, 2022 and December 31, 2021, 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 7.6 years and 7.8 years as of March 31, 2022 and December 31, 2021, respectively. The weighted average discount rate was 2.9% as of both March 31, 2022 and December 31, 2021.