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SEGMENT REPORTING
9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
KKR operates through two reportable segments which are presented below and reflect how its chief operating decision-makers allocate resources and assess performance:
Asset Management - the asset management business offers a broad range of investment management services to investment funds, vehicles and accounts (including Global Atlantic) and provides capital markets services to portfolio companies and third parties. This reportable segment also reflects how its business lines operate collaboratively with predominantly a single expense pool.
Insurance - the insurance business is operated by Global Atlantic, which is a leading U.S. retirement and life insurance company that provides a broad suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic primarily generates income by earning a spread between its investment income and the cost of policyholder benefits.
KKR’s segment profitability measure used to make operating decisions and assess performance across KKR’s reportable segments is presented prior to giving effect to the allocation of income (loss) among KKR & Co. Inc. and holders of any exchangeable securities, and the consolidation of the investment funds, vehicles and accounts that KKR advises, manages or sponsors (including CFEs). KKR's segment profitability measure excludes: (i) equity-based compensation charges, (ii) amortization of acquired intangibles, (iii) strategic transaction-related charges and (iv) non-recurring items, if any. Strategic transaction-related items arise from corporate actions and consist primarily of (i) impairments, (ii) non-monetary gains or losses on divestitures, (iii) transaction costs from strategic acquisitions, and (iv) depreciation on real estate that KKR owns and occupies. Inter-segment transactions are not eliminated from segment results when management considers those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned by KKR as the investment adviser for Global Atlantic insurance companies and (ii) interest income and expense based on lending arrangements where one or more KKR subsidiaries borrow from a Global Atlantic insurance subsidiary. Inter-segment transactions are recorded by each segment based on the definitive documents that contain arms' length terms and comply with applicable regulatory requirements. Segment operating earnings for the asset management and insurance segments is further defined as follows:

Asset Management Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the asset management segment and is comprised of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized Investment Income, and (v) Realized Investment Income Compensation. Asset Management Segment Operating Earnings excludes the impact of: (i) unrealized carried interest, (ii) net unrealized gains (losses) on investments, and (iii) related unrealized performance income compensation. Management fees earned by KKR as the adviser, manager, or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies and Ivy Vehicles are included in Asset Management Segment Operating Earnings.
Insurance Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the insurance segment and is comprised of: (i) Net Investment Income, (ii) Net Cost of Insurance, (iii) General, Administrative, and Other Expenses, (iv) Income Taxes, and (v) Net Income Attributable to Noncontrolling Interests. The non-operating adjustments made to derive Insurance Segment Operating Earnings eliminate the impact of: (i) realized (gains) losses related to asset/liability matching investments strategies, (ii) unrealized investment (gains) losses, (iii) changes in the fair value of derivatives, embedded derivatives, and fair value liabilities for fixed-indexed annuities, indexed universal life contracts and variable annuities, and (iv) the associated income tax effects of all exclusions from Insurance Segment Operating Earnings except for equity-based compensation expense. Insurance Segment Operating Earnings includes (i) realized gains and losses not related to asset/liability matching investments strategies and (ii) the investment management fee expenses that are earned by KKR as the investment adviser of the Global Atlantic insurance companies.
Segment Presentation

The following tables set forth information regarding KKR's segment results:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Asset Management
Management Fees (1)
$670,534 $559,016 $1,950,389 $1,478,878 
Transaction and Monitoring Fees, Net167,455 249,670 580,794 645,108 
Fee Related Performance Revenues49,924 9,897 71,974 34,760 
Fee Related Compensation(199,780)(184,224)(585,748)(485,760)
Other Operating Expenses(146,370)(104,772)(409,489)(309,483)
Fee Related Earnings541,763 529,587 1,607,920 1,363,503 
Realized Performance Income497,860 432,784 1,837,925 1,222,403 
Realized Performance Income Compensation(322,927)(274,955)(1,180,990)(797,965)
Realized Investment Income (2)
284,979 447,565 911,221 1,277,701 
Realized Investment Income Compensation(42,747)(67,142)(136,683)(191,663)
Asset Management Segment Operating Earnings958,928 1,067,839 3,039,393 2,873,979 
Insurance
Net Investment Income (1) (2)
1,054,757 771,982 2,881,567 1,977,383 
Net Cost of Insurance(642,443)(436,415)(1,664,664)(1,076,566)
General, Administrative and Other(161,242)(139,489)(472,795)(338,325)
  Pre-tax Insurance Operating Earnings251,072 196,078 744,108 562,492 
Income Taxes(44,468)(9,046)(125,927)(63,148)
Net Income Attributable to Noncontrolling Interest(79,582)(72,043)(238,118)(193,570)
Insurance Segment Operating Earnings127,022 114,989 380,063 305,774 
Total Segment Operating Earnings$1,085,950 $1,182,828 $3,419,456 $3,179,753 
(1) Includes intersegment management fees of $83.0 million and $46.7 million, for the three months ended September 30, 2022 and 2021, respectively, and $211.3 million and $108.5 million for the nine months ended September 30, 2022 and 2021, respectively.
(2) Includes intersegment interest expense and income of $44.0 million and $10.8 million, for the three months ended September 30, 2022 and 2021, respectively, and $104.3 million and $11.9 million for the nine months ended September 30, 2022 and 2021, respectively.
As of
September 30, 2022September 30, 2021
Segment Assets:
  Asset Management$31,244,274 $31,853,573 
  Insurance165,521,042 164,436,876 
Total Segment Assets$196,765,316 $196,290,449 
Three Months Ended September 30,Nine Months Ended September 30,
Noncash expenses excluded from Segment Operating Earnings2022202120222021
Equity Based Compensation and Other
  Asset Management$109,509 $62,510 $332,986 $188,269 
  Insurance41,102 40,086 94,711 64,061 
Total Non-cash expenses $150,611 $102,596 $427,697 $252,330 
Reconciliations of Total Segment Amounts
The following tables reconcile the Segment Revenues, Segment Operating Earnings, and Segment Assets to their equivalent GAAP measure:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Total GAAP Revenues$1,858,413 $4,483,365 $3,192,500 $12,182,552 
Impact of Consolidation and Other207,822 134,524 593,340 392,883 
Asset Management Adjustments:
Capital Allocation-Based Income (Loss) (GAAP)572,863 (1,526,667)2,442,080 (5,736,707)
Realized Carried Interest496,494 413,114 1,799,870 1,183,826 
Realized Investment Income284,979 447,565 911,221 1,277,701 
Capstone Fees(20,748)(25,178)(55,743)(66,286)
Expense Reimbursements(10,733)(34,857)(77,612)(122,642)
Insurance Adjustments:
Net Premiums(480,462)(974,903)(627,104)(1,698,912)
Policy Fees(320,206)(310,381)(964,349)(824,326)
Other Income(35,632)(31,938)(102,888)(82,160)
Investment Gains and Losses (11,584)(156,909)176,559 83,153 
Derivative Gains and Losses 184,303 53,179 945,996 47,151 
Total Segment Revenues (1)
$2,725,509 $2,470,914 $8,233,870 $6,636,233 
(1)Total Segment Revenues is comprised of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized Performance Income, (v) Realized Investment Income, and (vi) Net Investment Income.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Income (Loss) Before Tax (GAAP)$(52,153)$3,660,927 $(1,110,231)$12,621,574 
Impact of Consolidation and Other 97,699 (1,472,312)(168,246)(4,985,859)
Interest Expense83,335 63,446 229,414 185,100 
Equity-based compensation - KKR Holdings(1)
19,500 8,764 119,834 35,734 
Asset Management Adjustments:
Net Unrealized (Gains) Losses233,265 (598,304)1,734,293 (2,890,326)
Unrealized Carried Interest1,094,782 (911,156)3,946,182 (3,872,150)
Unrealized Carried Interest Compensation (Carry Pool)(468,785)397,449 (1,629,011)1,667,447 
Strategic Corporate Transaction-Related Charges(2)
17,925 7,362 88,129 17,497 
Equity-based compensation50,566 44,488 156,259 138,196 
Equity-based compensation - Performance based58,943 18,022 176,727 50,073 
Insurance Adjustments:(3)
Net (Gains) Losses from Investments and Derivatives (54,585)(75,241)(120,033)183,842 
Strategic Corporate Transaction-Related Charges 4,413 3,931 14,120 15,947 
Equity-based and Other Compensation 41,102 40,086 94,711 64,061 
Amortization of Acquired Intangibles 4,411 4,412 13,235 11,765 
Income Taxes(44,468)(9,046)(125,927)(63,148)
Total Segment Operating Earnings$1,085,950 $1,182,828 $3,419,456 $3,179,753 
(1)Represents equity-based compensation expense in connection with the allocation of units of KKR Holdings, which were not dilutive to common stockholders of KKR & Co. Inc.
(2)For the nine months ended September 30, 2022, strategic corporate transaction-related charges include a $40.7 million realized loss from foreign exchange derivatives that were entered in connection with the acquisition of KJRM and that were settled upon closing in the second quarter of 2022.
(3)Amounts include the portion allocable to noncontrolling interests (~39%).
As of
September 30, 2022September 30, 2021
Total GAAP Assets$266,248,640 $265,799,650 
Impact of Consolidation and Reclassifications(67,485,113)(65,946,515)
Carry Pool Reclassifications(1,998,211)(3,562,686)
Total Segment Assets$196,765,316 $196,290,449