Exhibit 99.2
KKR & CO. INC.
SEGMENT RESULTS (UNAUDITED)
(Amounts in thousands)
For the Years Ended December 31, | ||||||||||||
2015 | 2016 | 2017 | ||||||||||
Segment Revenues | ||||||||||||
Fees and Other, Net | ||||||||||||
Management Fees | $ | 732,033 | $ | 797,862 | $ | 905,188 | ||||||
Transaction Fees | 364,994 | 344,274 | 777,247 | |||||||||
Monitoring Fees | 264,643 | 64,354 | 81,021 | |||||||||
Fee Credits | (219,620 | ) | (131,628 | ) | (261,429 | ) | ||||||
Total Fees and Other, Net | 1,142,050 | 1,074,862 | 1,502,027 | |||||||||
Realized Performance Income (Loss) | ||||||||||||
Carried Interest | 1,027,154 | 1,256,208 | 1,198,981 | |||||||||
Incentive Fees | 19,647 | 33,346 | 73,395 | |||||||||
Total Realized Performance Income (Loss) | 1,046,801 | 1,289,554 | 1,272,376 | |||||||||
Realized Investment Income (Loss) | ||||||||||||
Net Realized Gains (Losses) | 337,023 | 371,563 | 194,020 | |||||||||
Interest Income and Dividends | 411,536 | 322,857 | 285,696 | |||||||||
Total Realized Investment Income (Loss) | 748,559 | 694,420 | 479,716 | |||||||||
Total Segment Revenues | 2,937,410 | 3,058,836 | 3,254,119 | |||||||||
Segment Expenses | ||||||||||||
Compensation and Benefits(1) | 1,015,056 | 1,119,564 | 1,282,745 | |||||||||
Occupancy and Related Charges | 62,657 | 62,400 | 56,410 | |||||||||
Other Operating Expenses | 233,618 | 234,348 | 243,772 | |||||||||
Total Segment Expenses | 1,311,331 | 1,416,312 | 1,582,927 | |||||||||
Segment Operating Earnings | 1,626,079 | 1,642,524 | 1,671,192 | |||||||||
Interest Expense | 203,085 | 188,761 | 181,612 | |||||||||
Preferred Dividends | - | 22,235 | 33,364 | |||||||||
Income (Loss) Attributable to Noncontrolling Interests | 16,007 | 2,336 | 6,551 | |||||||||
Income Taxes Paid | 140,677 | 87,723 | 94,065 | |||||||||
After-tax Distributable Earnings | $ | 1,266,310 | $ | 1,341,469 | $ | 1,355,600 |
(1) Includes equity-based compensation of $186,346, $186,227 and $204,308 for the years ended December 31, 2015, 2016 and 2017, respectively.
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RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. CLASS A COMMON STOCKHOLDERS (GAAP BASIS) TO AFTER-TAX DISTRIBUTABLE EARNINGS (UNAUDITED)
(Amounts in thousands)
For the Years Ended December 31, | ||||||||||||
2015 | 2016 | 2017 | ||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders | $ | 488,482 | $ | 287,072 | $ | 984,941 | ||||||
Add: Net Income (Loss) Attributable to Noncontrolling Interests held by KKR Holdings L.P. | 433,693 | 212,878 | 791,021 | |||||||||
Add: Equity-based and Other Compensation - KKR Holdings L.P. and Other | 75,233 | 78,663 | 141,727 | |||||||||
Add: Amortization of Intangibles and Other, net | 47,599 | (17,267 | ) | 122,870 | ||||||||
Deduct: Unrealized Carried Interest | 163,545 | (420,372 | ) | 600,242 | ||||||||
Deduct: Net Unrealized Gains (Losses) | (391,962 | ) | (584,423 | ) | 395,358 | |||||||
Add: Unrealized Performance Income Compensation | 66,927 | (161,510 | ) | 247,601 | ||||||||
Deduct: Gain from remeasurement of tax receivable agreement liability | - | - | 67,221 | |||||||||
Add: Income tax provision | 66,636 | 24,561 | 224,326 | |||||||||
Deduct: Income Taxes Paid | 140,677 | 87,723 | 94,065 | |||||||||
After-tax Distributable Earnings | $ | 1,266,310 | $ | 1,341,469 | $ | 1,355,600 |
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RECONCILIATION OF TOTAL GAAP REVENUES AND TOTAL GAAP EXPENSES TO TOTAL SEGMENT REVENUES AND TOTAL SEGMENT EXPENSES (UNAUDITED)
(Amounts in thousands)
For the Years Ended December 31, | ||||||||||||
2015 | 2016 | 2017 | ||||||||||
Total GAAP Revenues | $ | 1,043,768 | $ | 1,908,093 | $ | 3,282,265 | ||||||
Add: Management Fees - Consolidated Funds and Other | 538,986 | 196,375 | 267,032 | |||||||||
Deduct: Fee Credits - Consolidated Funds | 202,269 | 2,921 | 4,028 | |||||||||
Deduct: Capital Allocation-Based Income (GAAP) | - | 803,185 | 1,740,661 | |||||||||
Add: Segment Realized Carried Interest | 1,027,154 | 1,256,208 | 1,198,981 | |||||||||
Add: Segment Realized Investment Income (Loss) | 748,559 | 694,420 | 479,716 | |||||||||
Deduct: Revenue Earned by Other Consolidated Entities | 152,644 | 108,605 | 106,042 | |||||||||
Deduct: Expense Reimbursements | 66,144 | 81,549 | 123,144 | |||||||||
Total Segment Revenues | $ | 2,937,410 | $ | 3,058,836 | $ | 3,254,119 | ||||||
Total GAAP Expenses | $ | 1,871,225 | $ | 1,695,474 | $ | 2,336,692 | ||||||
Deduct: Equity-based and Other Compensation - KKR Holdings L.P. and Other | 75,233 | 78,663 | 141,727 | |||||||||
Deduct: Segment Unrealized Performance Income Compensation | 66,927 | (161,510 | ) | 247,601 | ||||||||
Deduct: Amortization of Intangibles | 46,362 | 41,803 | 17,821 | |||||||||
Deduct: Reimbursable Expenses | 80,712 | 111,016 | 155,173 | |||||||||
Deduct: Operating Expenses relating to Other Consolidated Entities | 264,661 | 216,958 | 172,920 | |||||||||
Add: Other | (25,999 | ) | 7,768 | (18,523 | ) | |||||||
Total Segment Expenses | $ | 1,311,331 | $ | 1,416,312 | $ | 1,582,927 |
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