SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

Revenues from Contracts with Customers

The following table summarizes KKR's revenues from contracts with customers:

Revenue Type

Customer

Performance Obligation

Performance Obligation Satisfied Over Time or

Point In Time (1)

Variable or
Fixed Consideration

Payment Terms

Subject to Return Once Recognized

Classification of Uncollected Amounts (2)

Management Fees

Investment funds, CLOs and other vehicles

Investment management services

Over time as services are rendered

Variable consideration since varies based on fluctuations in the basis of the management fee over time

Typically quarterly or annually in arrears

Due from Affiliates

Transaction Fees

Portfolio companies and third party companies

Advisory services and debt and equity arranging and underwriting

Point in time when the transaction (e.g. underwriting) is completed

Fixed consideration

Typically paid on or shortly after transaction closes

Due from Affiliates (portfolio companies)

Other Assets (third parties)

Monitoring Fees

Recurring Fees

Portfolio companies

Monitoring services

Over time as services are rendered

Variable consideration since varies based on fluctuations in the basis of the recurring fee

Typically quarterly in arrears

Due from Affiliates

Termination Fees

Portfolio companies

Monitoring services

Point in time when the termination is completed

Fixed consideration

Typically paid on or shortly after termination occurs

Due from Affiliates

Incentive Fees

Investment funds and other vehicles

Investment management services that result in achievement of minimum investment return levels

Over time as services are rendered

Variable consideration since contingent upon the investment fund and other vehicles achieving more than stipulated investment return hurdles

Typically paid shortly after the end of the performance measurement period

Due from Affiliates

Expense Reimbursements

Investment funds and portfolio companies

Investment management and monitoring services

Point in time when the related expense is incurred

Fixed consideration

Typically shortly after expense is incurred

Due from Affiliates

Consulting Fees

Portfolio companies and other companies

Consulting and other services

Over time as services are rendered

Fixed consideration

Typically quarterly in arrears

Due from Affiliates

(1)For performance obligations satisfied at a point in time, there were no significant judgments made in evaluating when a customer obtains control of the promised service.

(2)For amounts classified in Other Assets, see Note 14 "Other Assets and Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 20 "Related Party Transactions."

Accounting Standards Update and Change in Accounting Principle

The following table summarizes the balance of, and changes in, the liability for future policy benefits as of February 1, 2021 due to the adoption of LDTI.


Liability for future policy benefits	Payout annuities		Other		Total
Balance, as of February 1, 2021	$	12,785,557	$	592,242	$	13,377,799
Change in discount rate assumptions	151,651		20,930		172,581
Adjusted balance, as of February 1, 2021	$	12,937,208	$	613,172	$	13,550,380

The following table summarizes the balance of, and changes in, the net liability position of market risk benefits (previously recorded as product guarantees included within policy liabilities in the consolidated statement of financial condition) as of February 1, 2021 due to the adoption of LDTI.


Market risk benefits	Fixed-indexed annuities		Variable- and other annuities		Total
Balance, as of February 1, 2021(1)	$	895,114	$	325,311	$	1,220,425
Adjustment for the difference between prior carrying amount and market risk benefit value	282,354		87,733		370,087
Adjusted balance, as of February 1, 2021	$	1,177,468	$	413,044	$	1,590,512

(1)The $1,220.4 million balance associated with market risk benefits prior to transition was previously recorded as product guarantees either as an embedded derivative in contractholder deposits of $236.0 million, or as an additional liability for insurance benefits of $984.4 million under policy liabilities extinguished at transition, and remeasured as market risk benefits.

The following table summarizes the balance of, and changes in, reinsurance recoverable as of February 1, 2021 due to the adoption of LDTI.


Reinsurance recoverable	Fixed indexed annuities		Payout annuities		Other		Total
Balance, as of February 1, 2021	$	4,487,850	$	7,100,198	$	4,164,982	$	15,753,030
Change in discount rate assumptions	—		75,708		—		75,708
Adjusted balance, as of February 1, 2021, net of reinsurance	$	4,487,850	$	7,175,906	$	4,164,982	$	15,828,738

The following table summarizes the balance of, and changes in, value of business acquired, net as of February 1, 2021 due to the adoption of LDTI.


VOBA	Fixed indexed annuities		Fixed-rate annuities		Payout annuities		Interest-sensitive life		Variable annuities		Other		Total
Balance, as of February 1, 2021	$	474,165	$	56,563	$	—	$	307,216	$	186,576	$	—	$	1,024,520
Adjustment to reflect transition impact to balance established as part of purchase accounting upon the 2021 GA Acquisition	282,354		—		101,338		692		108,411		—		492,795
Adjusted balance, as of February 1, 2021	$	756,519	$	56,563	$	101,338	$	307,908	$	294,987	$	—	$	1,517,315

The following table summarizes the balance of, and changes in, negative value of business acquired, net as of February 1, 2021 due to the adoption of LDTI.


Negative VOBA	Fixed indexed annuities		Fixed-rate annuities		Payout annuities		Interest-sensitive life		Variable annuities		Other		Total
Balance, as of February 1, 2021	$	222,135	$	180,769	$	—	$	549,983	$	119,122	$	201,405	$	1,273,414
Adjustment to reflect transition impact to balance established as part of purchase accounting upon the 2021 GA Acquisition	—		—		25,395		755		—		(315)		25,835
Adjusted balance, as of February 1, 2021	$	222,135	$	180,769	$	25,395	$	550,738	$	119,122	$	201,090	$	1,299,249

The following table presents the effect of transition adjustments on the value of business acquired assets and liabilities due to the adoption of LDTI.


	February 1, 2021
	VOBA		Negative VOBA
Reinsurance recoverable	$	(75,708)	$	—
Liability for future policy benefits	198,416		(25,835)
Market risk benefits	370,087		—
Total transition adjustments	$	492,795	$	(25,835)

As a result of the retrospective application of the LDTI adoption, KKR adjusted certain previously reported amounts in its consolidated statements of financial condition, consolidated statements of operations, consolidated statements of comprehensive income, and consolidated statements of cash flows, as follows:


Consolidated statement of financial condition as of December 31, 2022	As previously reported		Adjustment		As revised
Reinsurance recoverable	$	27,919,591	$	(1,897,510)	$	26,022,081
Insurance intangible assets	1,722,681		608,813		2,331,494
Other assets	6,483,187		(441,858)		6,041,329
Total assets	277,077,191		(1,730,555)		275,346,636
Policy liabilities	141,223,287		(3,442,358)		137,780,929
Accrued expenses and other liabilities	4,600,377		(2)		4,600,375
Total liabilities	223,418,306		(3,442,360)		219,975,946
Additional paid-in capital	16,190,407		93,650		16,284,057
Retained earnings	6,315,711		385,396		6,701,107
Accumulated other comprehensive income (loss)	(5,901,701)		599,901		(5,301,800)
Noncontrolling interests	35,778,000		632,858		36,410,858
Total equity	53,506,820		1,711,805		55,218,625


Consolidated statement of operations for the year ended December 31, 2022	As previously reported		Adjustment		As revised
Policy fees	$	1,278,736	$	(17,015)	$	1,261,721
Net policy benefits and claims(1)	3,184,427		(826,189)		2,358,238
Amortization of policy acquisition costs	10,990		44,359		55,349
Insurance expenses	565,304		(2,719)		562,585
General, administrative and other	718,422		555		718,977
Income tax expense (benefit)	(35,672)		161,065		125,393
Net Income (Loss)	(1,023,528)		605,914		(417,614)
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders	(910,130)		319,466		(590,664)
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Basic	(1.21)		0.42		(0.79)
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted	(1.21)		0.42		(0.79)

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(1)Includes adjustment for market risk benefit gain for the year ended December 31, 2022 of $(673.4) million.


Consolidated statement of operations for the year ended December 31, 2021	As previously reported		Adjustment		As revised
Policy fees	$	1,147,913	$	(10,108)	$	1,137,805
Net policy benefits and claims(1)	5,055,709		(238,830)		4,816,879
Amortization of policy acquisition costs	(65,949)		30,572		(35,377)


Income tax expense (benefit)	1,353,270		41,612		1,394,882
Net Income (Loss)	12,295,179		156,538		12,451,717
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders	4,560,829		65,930		4,626,759
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Basic	7.83		0.12		7.95
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted	7.31		0.11		7.42

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(1)Includes adjustment for market risk benefit gain for the year ended December 31, 2021 of $(152.4) million.


Consolidated statement of comprehensive loss for the year ended December 31, 2022	As previously reported		Adjustment		As revised
Unrealized Gains (Losses) on Available-For-Sale Securities and Other	$	(8,777,181)	$	(458,534)	$	(9,235,715)
Net effect of changes in discount rates and instrument-specific credit risk on policy liabilities	—		1,383,193		1,383,193
Comprehensive Income (Loss)	(9,803,382)		1,530,573		(8,272,809)
Comprehensive Income (Loss) Attributable to KKR & Co. Inc.	(5,191,511)		734,459		(4,457,052)


Consolidated statement of comprehensive income for the year ended December 31, 2021	As previously reported		Adjustment		As revised
Unrealized Gains (Losses) on Available-For-Sale Securities and Other	$	(387,338)	$	(63,293)	$	(450,631)
Net effect of changes in discount rates and instrument-specific credit risk on policy liabilities	—		88,759		88,759
Comprehensive Income (Loss)	11,868,320		182,004		12,050,324
Comprehensive Income (Loss) Attributable to KKR & Co. Inc.	4,483,018		76,271		4,559,289


Consolidated statement of cash flow for the year ended December 31, 2022	As previously reported		Adjustment		As revised
Net realized (gains) losses on insurance operations	$	1,035,879	$	(673,399)	$	362,480
Other non-cash amounts	77,780		48,154		125,934
Change in policy liabilities and accruals, net	(160,765)		(139,567)		(300,332)
Change in other assets	874,463		161,066		1,035,529
Change in accrued expenses and other liabilities	(3,122,805)		(2,168)		(3,124,973)


Consolidated statement of cash flow for the year ended December 31, 2021	As previously reported		Adjustment		As revised
Net realized (gains) losses on insurance operations	$	860,165	$	(153,985)	$	706,180
Other non-cash amounts	(102,871)		42,553		(60,318)
Change in Premiums, Notes Receivable and Reinsurance Recoverable, Net of Reinsurance Premiums Payable - Insurance	685,802		(5)		685,797
Change in Deferred Policy Acquisition Costs - Insurance	(412,671)		1,608		(411,063)
Change in policy liabilities and accruals, net	(1,166,726)		(86,824)		(1,253,550)
Change in other assets	465,288		41,743		507,031
Change in accrued expenses and other liabilities	2,143,039		(1,628)		2,141,411