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OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES
9 Months Ended
Sep. 30, 2023
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:
 September 30, 2023December 31, 2022
Asset Management
Unsettled Investment Sales (1)
$192,162 $90,072 
Receivables43,273 26,119 
Due from Broker (2)
62,216 160,533 
Deferred Tax Assets, net (See Note 19)49,113 54,769 
Interest Receivable278,475 223,660 
Fixed Assets, net (3)
860,638 857,903 
Foreign Exchange Contracts and Options (4)
717,228 668,716 
Goodwill (5)
531,866 594,270 
Intangible Assets (6)
1,534,781 1,747,891 
Derivative Assets17,668 7,519 
Prepaid Taxes138,501 68,107 
Prepaid Expenses56,711 48,233 
Operating Lease Right of Use Assets (7)
363,485 344,022 
Deferred Financing Costs23,852 16,382 
Other236,482 289,430 
Total Asset Management$5,106,451 $5,197,626 
Insurance
Unsettled Investment Sales(1) and Derivative Collateral Receivables
$515,610 $663,280 
Deferred Tax Assets, net2,618,488 2,272,153 
Derivative Assets764,444 724,390 
Accrued Investment Income1,145,299 1,130,103 
Goodwill(9)
501,496 501,496 
Intangible Assets and Deferred Sales Inducements(8)
262,941 276,176 
Operating Lease Right of Use Assets(7)
175,009 175,035 
Premiums and Other Account Receivables164,427 141,551 
Other186,517 121,114 
Prepaid Taxes41,421 22,851 
Market risk benefit asset5,493 13,180 
Total Insurance$6,381,145 $6,041,329 
Total Other Assets$11,487,596 $11,238,955 
(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 $239.6 million and $188.8 million as of September 30, 2023 and December 31, 2022, respectively. Depreciation and amortization expense of $18.3 million and $14.2 million for the three months ended September 30, 2023 and 2022, respectively, and $50.7 million and $39.8 million for the nine months ended September 30, 2023 and 2022, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. Additionally, KKR’s fixed assets are predominantly located in the United States.
(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" in our financial statements for the net changes in fair value associated with these instruments.
(5)As of September 30, 2023, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit. As of September 30, 2023, there are approximately $(60.6) million of cumulative foreign currency translation adjustments included in AOCI related to the goodwill recorded as result of the acquisition of KJRM (see Note 3 "Acquisitions" in our financial statements).
(6)As of September 30, 2023, there are approximately $(206.7) million of cumulative foreign currency translation adjustments included in AOCI related to the intangible assets recorded as result of the acquisition of KJRM (see Note 3 "Acquisitions" in our financial statements).
(7)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 $17.6 million and $13.9 million for the three months ended September 30, 2023 and 2022, respectively, and $51.0 million and $39.3 million for the nine months ended September 30, 2023 and 2022, respectively. For Insurance, non-cancelable operating leases consist of leases for office space and land in the U.S. For the three months ended September 30, 2023 and 2022, the operating lease cost was $7.0 million and $6.4 million, respectively, and for the nine months ended September 30, 2023 and 2022, the operating lease cost was $20.6 million and $18.2 million, respectively. Insurance lease right-of-use assets are reported net of $21.7 million and $21.8 million in deferred rent and lease incentives as of September 30, 2023 and December 31, 2022, respectively.
(8)The definite life intangible assets are amortized using the straight-line method over the useful life of the assets which is an average of 14 years. The indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million for both the three months ended September 30, 2023 and 2022, and $13.2 million for both the nine months ended September 30, 2023 and 2022.
(9)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. The insurance segment reported a negative equity carrying amount as of September 30, 2023 and December 31, 2022 primarily due to unrealized losses on available-for-sale fixed maturity investment portfolio. Global Atlantic expects that substantially all of these unrealized losses will not be realized as it intends to hold these investments until recovery of the losses, which may be at maturity, as part of its asset liability cash-flow matching strategy. KKR evaluated qualitative factors, including market and economic conditions, industry-specific events and company-specific financial results, and determined that it was not more likely than not that goodwill was impaired.

Accrued Expenses and Other Liabilities consist of the following:
 September 30, 2023December 31, 2022
Asset Management
Amounts Payable to Carry Pool (1)
$2,462,593 $1,872,568 
Unsettled Investment Purchases (2)
584,332 416,822 
Securities Sold Short (3) 
129,600 158,752 
Derivative Liabilities— 11,018 
Accrued Compensation and Benefits603,650 265,712 
Interest Payable472,948 363,849 
Foreign Exchange Contracts and Options (4)
385,979 406,746 
Accounts Payable and Accrued Expenses197,886 216,688 
Taxes Payable42,960 136,245 
Uncertain Tax Positions 31,551 56,032 
Unfunded Revolver Commitments97,841 137,315 
Operating Lease Liabilities (5)
366,889 347,901 
Deferred Tax Liabilities, net (See Note 19)2,109,393 1,667,740 
Other Liabilities299,062 414,387 
Total Asset Management$7,784,684 $6,471,775 
Insurance
Unsettled Investment Purchases(2)
$410,915 $208,941 
Collateral on Derivative Instruments716,427 466,371 
Accrued Expenses534,288 600,633 
Insurance Operations Balances in Course of Settlement221,252 949,383 
Securities Sold Under Agreements to Repurchase320,282 805,316 
Derivative Liabilities1,137,258 934,107 
Accrued Employee Related Expenses419,197 322,698 
Operating Lease Liabilities(5)
195,757 195,001 
Tax Payable to Former Parent Company61,863 67,086 
Interest Payable47,543 13,329 
Accounts and Commissions Payable24,247 25,261 
Other Tax Related Liabilities9,012 12,249 
Total Insurance$4,098,041 $4,600,375 
Total Accrued Expenses and Other Liabilities$11,882,725 $11,072,150 
(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" in our financial statements 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" in our financial statements for the net changes in fair value associated with these instruments.
(5)For Asset Management, operating leases for office space have remaining lease terms that range from approximately 1 year to 17 years, some of which include options to extend the leases from 5 years to 10 years. The weighted average remaining lease terms were 10.4 years and 10.4 years as of September 30, 2023 and December 31, 2022, respectively. The weighted average discount rates were 2.9% and 2.5% as of September 30, 2023 and December 31, 2022, 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 were 7.6 years and 7.0 years as of September 30, 2023 and December 31, 2022, respectively. The weighted average discount rate was 4.3% and 3.6% as of September 30, 2023 and December 31, 2022, respectively. The weighted average remaining lease terms for land were 25.9 years and 26.9 years as of September 30, 2023 and December 31, 2022, respectively.