Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 10, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-34820 | ||
Entity Registrant Name | KKR & CO. INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-0426107 | ||
Entity Address, Address Line One | 9 West 57th Street | ||
Entity Address, Address Line Two | Suite 4200 | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10019 | ||
City Area Code | 212 | ||
Local Phone Number | 750-8300 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 13.1 | ||
Entity Central Index Key | 0001404912 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | None | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 558,046,130 | ||
Trading Symbol | KKR | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1 | ||
Class C Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 290,381,345 | ||
Series A Preferred Stock | |||
Document Information [Line Items] | |||
Trading Symbol | KKR PR A | ||
Series B Preferred Stock | |||
Document Information [Line Items] | |||
Trading Symbol | KKR PR B | ||
NEW YORK STOCK EXCHANGE, INC. | Class A Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock | ||
Security Exchange Name | NYSE | ||
NEW YORK STOCK EXCHANGE, INC. | Series A Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 6.75% Series A Preferred Stock | ||
Security Exchange Name | NYSE | ||
NEW YORK STOCK EXCHANGE, INC. | Series B Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 6.50% Series B Preferred Stock | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and Cash Equivalents | $ 2,346,713 | $ 1,751,287 |
Cash and Cash Equivalents Held at Consolidated Entities | 816,441 | 693,860 |
Restricted Cash and Cash Equivalents | 74,262 | 196,365 |
Investments | 54,936,268 | 44,907,982 |
Due from Affiliates | 717,399 | 657,189 |
Other Assets | 2,008,236 | 2,536,692 |
Total Assets | 60,899,319 | 50,743,375 |
Liabilities and Equity | ||
Debt Obligations | 27,013,284 | 22,341,192 |
Due to Affiliates | 286,098 | 275,584 |
Accounts Payable, Accrued Expenses and Other Liabilities | 3,097,563 | 2,743,990 |
Total Liabilities | 30,396,945 | 25,360,766 |
Commitments and Contingencies | ||
Redeemable Noncontrolling Interests | 0 | 1,122,641 |
Stockholders' Equity | ||
Series A and B Preferred Stock, $0.01 par value. 13,800,000 and 6,200,000 shares, respectively, issued and outstanding as of December 31, 2019 and 2018. | 482,554 | 482,554 |
Additional Paid-In Capital | 8,565,919 | 8,106,408 |
Retained Earnings | 1,792,152 | 91,953 |
Accumulated Other Comprehensive Income (Loss) | (41,639) | (39,645) |
Total KKR & Co. Inc. Stockholders' Equity | 10,807,490 | 8,649,610 |
Noncontrolling Interests | 19,694,884 | 15,610,358 |
Total Equity | 30,502,374 | 24,259,968 |
Total Liabilities and Equity | 60,899,319 | 50,743,375 |
Consolidated VIEs | ||
Assets | ||
Cash and Cash Equivalents Held at Consolidated Entities | 746,151 | 605,114 |
Restricted Cash and Cash Equivalents | 34,849 | 174,057 |
Investments | 35,799,824 | 30,319,052 |
Due from Affiliates | 9,678 | 11,832 |
Other Assets | 279,113 | 371,275 |
Total Assets | 36,869,615 | 31,481,330 |
Liabilities and Equity | ||
Debt Obligations | 17,140,074 | 15,351,541 |
Accounts Payable, Accrued Expenses and Other Liabilities | 622,632 | 705,741 |
Total Liabilities | 17,762,706 | 16,057,282 |
Consolidated VIEs | Consolidated CFEs | ||
Assets | ||
Cash and Cash Equivalents Held at Consolidated Entities | 634,029 | 428,850 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Investments | 14,948,237 | 14,733,423 |
Due from Affiliates | 0 | 0 |
Other Assets | 100,221 | 148,221 |
Total Assets | 15,682,487 | 15,310,494 |
Liabilities and Equity | ||
Debt Obligations | 14,658,137 | 13,958,554 |
Accounts Payable, Accrued Expenses and Other Liabilities | 513,057 | 579,408 |
Total Liabilities | 15,171,194 | 14,537,962 |
Consolidated VIEs | Consolidated KKR Funds and Other Entities | ||
Assets | ||
Cash and Cash Equivalents Held at Consolidated Entities | 112,122 | 176,264 |
Restricted Cash and Cash Equivalents | 34,849 | 174,057 |
Investments | 20,851,587 | 15,585,629 |
Due from Affiliates | 9,678 | 11,832 |
Other Assets | 178,892 | 223,054 |
Total Assets | 21,187,128 | 16,170,836 |
Liabilities and Equity | ||
Debt Obligations | 2,481,937 | 1,392,987 |
Accounts Payable, Accrued Expenses and Other Liabilities | 109,575 | 126,333 |
Total Liabilities | 2,591,512 | 1,519,320 |
Class A Common Stock | ||
Stockholders' Equity | ||
Common Stock | 5,600 | 5,349 |
Class B Common Stock | ||
Stockholders' Equity | ||
Common Stock | 0 | 0 |
Class C Common Stock | ||
Stockholders' Equity | ||
Common Stock | $ 2,904 | $ 2,991 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Series A Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 13,800,000 | 13,800,000 |
Preferred stock, shares outstanding (in shares) | 13,800,000 | 13,800,000 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 6,200,000 | 6,200,000 |
Preferred stock, shares outstanding (in shares) | 6,200,000 | 6,200,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,500,000,000 | 3,500,000,000 |
Common stock, shares issued (in shares) | 560,007,579 | 534,857,237 |
Common stock, shares outstanding (in shares) | 560,007,579 | 534,857,237 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1 | 1 |
Common stock, shares issued (in shares) | 1 | 1 |
Common stock, shares outstanding (in shares) | 1 | 1 |
Class C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 499,999,999 | 499,999,999 |
Common stock, shares issued (in shares) | 290,381,345 | 299,081,239 |
Common stock, shares outstanding (in shares) | 290,381,345 | 299,081,239 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Fees and Other | $ 1,790,475 | $ 1,841,326 | $ 1,541,604 |
Capital Allocation-Based Income | 2,430,425 | 554,510 | 2,015,676 |
Total Revenues | 4,220,900 | 2,395,836 | 3,557,280 |
Expenses | |||
Compensation and Benefits | 2,116,890 | 1,374,363 | 1,695,490 |
Occupancy and Related Charges | 62,728 | 59,706 | 58,722 |
General, Administrative and Other | 728,813 | 655,408 | 582,480 |
Total Expenses | 2,908,431 | 2,089,477 | 2,336,692 |
Investment Income (Loss) | |||
Net Gains (Losses) from Investment Activities | 3,161,884 | 1,254,832 | 928,144 |
Dividend Income | 318,972 | 175,154 | 202,115 |
Interest Income | 1,418,516 | 1,396,532 | 1,242,419 |
Interest Expense | (1,043,551) | (876,029) | (808,898) |
Total Investment Income (Loss) | 3,855,821 | 1,950,489 | 1,563,780 |
Income (Loss) Before Taxes | 5,168,290 | 2,256,848 | 2,784,368 |
Income Tax Expense (Benefit) | 528,750 | (194,098) | 224,326 |
Net Income (Loss) | 4,639,540 | 2,450,946 | 2,560,042 |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | 0 | (37,352) | 73,972 |
Net Income (Loss) Attributable to Noncontrolling Interests | 2,634,491 | 1,357,235 | 1,467,765 |
Net Income (Loss) Attributable to KKR & Co. Inc. | 2,005,049 | 1,131,063 | 1,018,305 |
Preferred Dividends | 33,364 | 33,364 | 33,364 |
Series A Preferred Stock Dividends | |||
Investment Income (Loss) | |||
Preferred Dividends | 23,288 | 23,288 | 23,288 |
Series B Preferred Stock Dividends | |||
Investment Income (Loss) | |||
Preferred Dividends | 10,076 | 10,076 | 10,076 |
Class A Common Stock | |||
Investment Income (Loss) | |||
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders | $ 1,971,685 | $ 1,097,699 | $ 984,941 |
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock | |||
Basic (in dollars per share) | $ 3.62 | $ 2.14 | $ 2.10 |
Diluted (in dollars per share) | $ 3.54 | $ 2.06 | $ 1.95 |
Weighted Average Shares of Class A Common Stock Outstanding | |||
Basic (in shares) | 545,096,999 | 514,102,571 | 468,282,642 |
Diluted (in shares) | 557,687,512 | 533,707,039 | 506,288,971 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 4,639,540 | $ 2,450,946 | $ 2,560,042 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Foreign Currency Translation Adjustments | (3,398) | (48,764) | 54,654 |
Comprehensive Income (Loss) | 4,636,142 | 2,402,182 | 2,614,696 |
Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests | 0 | (37,352) | 73,972 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 2,632,151 | 1,326,164 | 1,498,861 |
Comprehensive Income (Loss) Attributable to KKR & Co. Inc. | $ 2,003,991 | $ 1,113,370 | $ 1,041,863 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Class A Common Stock | Class A Common StockCommon Stock | Class A Common StockAdditional Paid-In Capital | Class B Common StockCommon Stock | Class C Common StockCommon Stock | Series A Preferred StockRetained Earnings | Series B Preferred StockRetained Earnings | Common Stock | Capital - Common Unitholders | Accumulated Other Comprehensive Income (Loss) | Total Capital - Common Units | Series A Preferred Stock Dividends | Series B Preferred Stock Dividends | Noncontrolling Interests | Redeemable Noncontrolling Interest | Preferred Stock | |||||||
KKR & Co. L.P. Partners' Capital - beginning balance at Dec. 31, 2016 | $ 16,485,735 | $ 5,506,375 | $ (49,096) | $ 5,457,279 | $ 332,988 | $ 149,566 | $ 10,545,902 | $ 632,348 | ||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - beginning balance (in units) at Dec. 31, 2016 | 452,380,335 | |||||||||||||||||||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||||||||||||
Net Income (Loss) | 2,486,070 | 984,941 | 984,941 | 23,288 | 10,076 | 1,467,765 | 73,972 | |||||||||||||||||||||
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax) | 54,654 | 23,558 | 23,558 | 31,096 | ||||||||||||||||||||||||
Changes in Consolidation | (1,682) | (1,682) | (315,057) | |||||||||||||||||||||||||
Transfers of interests under common control and Other | 16,139 | 7,359 | 23,498 | (23,498) | ||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units | 291,040 | (1,979) | 289,061 | (289,061) | ||||||||||||||||||||||||
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other | (2,792) | (3,469) | 677 | (2,792) | ||||||||||||||||||||||||
Net Delivery of Common Units - Equity Incentive Plans | (58,679) | (58,679) | (58,679) | |||||||||||||||||||||||||
Equity-Based and Other Non-Cash Compensation | 346,035 | 204,308 | 204,308 | 141,727 | ||||||||||||||||||||||||
Capital Contributions | 3,119,917 | 3,119,917 | 220,167 | |||||||||||||||||||||||||
Capital Distributions | (2,471,179) | (311,973) | [1] | (311,973) | [1] | (23,288) | [1] | (10,076) | [1] | (2,125,842) | [1] | (890) | [1] | |||||||||||||||
KKR & Co. L.P. Partners' Capital - ending balance at Dec. 31, 2017 | 20,052,260 | 6,722,863 | (19,481) | 6,703,382 | 332,988 | 149,566 | 12,866,324 | 610,540 | ||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - ending balance (in units) at Dec. 31, 2017 | 486,174,736 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||||
Class A Common Stock Issued in Connection with the Purchase of Investments | 94,181 | 94,181 | 94,181 | |||||||||||||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 1,018,305 | |||||||||||||||||||||||||||
Net Income (Loss) | 2,161,632 | 850,483 | 850,483 | 11,644 | 5,038 | 1,294,467 | 7,658 | |||||||||||||||||||||
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax) | (23,913) | (9,237) | (9,237) | (14,676) | ||||||||||||||||||||||||
Changes in Consolidation | 370,307 | 370,307 | ||||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units | 507,470 | (1,998) | 505,472 | (505,472) | ||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units (in units) | 32,722,098 | |||||||||||||||||||||||||||
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other | 6,465 | 6,448 | 17 | 6,465 | ||||||||||||||||||||||||
Net Delivery of Common Units - Equity Incentive Plan (in units) | 7,652,340 | |||||||||||||||||||||||||||
Net Delivery of Common Units - Equity Incentive Plans | (53,439) | (53,439) | (53,439) | |||||||||||||||||||||||||
Equity-Based and Other Non-Cash Compensation | 187,936 | 125,994 | 125,994 | 61,942 | ||||||||||||||||||||||||
Units Repurchases | (52,212) | (52,212) | (52,212) | |||||||||||||||||||||||||
Unit Repurchases (in units) | (2,207,300) | |||||||||||||||||||||||||||
Capital Contributions | 2,410,722 | 2,410,722 | 349,451 | |||||||||||||||||||||||||
Capital Distributions | [1] | (1,734,715) | (167,078) | (167,078) | (11,644) | (5,038) | (1,550,955) | (5,502) | ||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - ending balance at Jun. 30, 2018 | 23,325,043 | 7,940,529 | (30,699) | 7,909,830 | 332,988 | 149,566 | 14,932,659 | 962,147 | ||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - ending balance (in units) at Jun. 30, 2018 | 524,341,874 | |||||||||||||||||||||||||||
Stockholders' equity, ending balance at Jun. 30, 2018 | $ 0 | $ 0 | $ 0 | $ (30,699) | $ 0 | $ 0 | $ 0 | $ 7,940,529 | $ 482,554 | |||||||||||||||||||
Shares outstanding, ending balance (in shares) at Jun. 30, 2018 | 0 | 0 | 0 | 0 | 524,341,874 | 20,000,000 | ||||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - beginning balance at Dec. 31, 2017 | 20,052,260 | $ 6,722,863 | (19,481) | 6,703,382 | 332,988 | 149,566 | 12,866,324 | 610,540 | ||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - beginning balance (in units) at Dec. 31, 2017 | 486,174,736 | |||||||||||||||||||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax) | (48,764) | |||||||||||||||||||||||||||
Changes in Consolidation | 593,172 | |||||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units (in units) | 20,086,963 | |||||||||||||||||||||||||||
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other | (4,833) | |||||||||||||||||||||||||||
Net Delivery of Common Units - Equity Incentive Plan (in units) | 8,979,472 | |||||||||||||||||||||||||||
Capital Contributions | 4,359,615 | |||||||||||||||||||||||||||
Capital Distributions | (3,015,655) | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||||
Class A Common Stock Issued in Connection with the Purchase of an Investment (in shares) | 4,727,966 | |||||||||||||||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 1,131,063 | |||||||||||||||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2018 | 8,649,610 | $ 482,554 | 8,106,408 | 91,953 | (39,645) | $ 5,349 | $ 0 | $ 2,991 | $ 0 | $ 0 | ||||||||||||||||||
Shares outstanding, ending balance (in shares) at Dec. 31, 2018 | 20,000,000 | 534,857,237 | 1 | 299,081,239 | 0 | 0 | ||||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - beginning balance at Jun. 30, 2018 | 23,325,043 | $ 7,940,529 | $ (30,699) | $ 7,909,830 | 332,988 | 149,566 | 14,932,659 | $ 962,147 | ||||||||||||||||||||
KKR & Co. L.P. Partners' Capital - beginning balance (in units) at Jun. 30, 2018 | 524,341,874 | |||||||||||||||||||||||||||
Increase (Decrease) in Partners' Capital | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax) | (8,395) | |||||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units | 114,958 | (551) | $ 65 | |||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units (in units) | 6,428,323 | |||||||||||||||||||||||||||
Net Delivery of Class A Common Stock (in units) | 4,181,402 | |||||||||||||||||||||||||||
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other | (11,359) | |||||||||||||||||||||||||||
Net Delivery of Common Units - Equity Incentive Plans | (45,399) | $ 42 | ||||||||||||||||||||||||||
Stockholders' equity, beginning balance at Jun. 30, 2018 | $ 0 | 0 | 0 | (30,699) | $ 0 | $ 0 | $ 0 | $ 7,940,529 | $ 482,554 | |||||||||||||||||||
Shares outstanding, beginning balance (in shares) at Jun. 30, 2018 | 0 | 0 | 0 | 0 | 524,341,874 | 20,000,000 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||||
Reclassifications resulting from the Conversion | $ 482,554 | 7,932,245 | $ 5,243 | $ 0 | $ 3,041 | $ (7,940,529) | $ (482,554) | |||||||||||||||||||||
Reclassifications resulting from the Conversion (in shares) | 20,000,000 | 524,341,874 | 1 | 304,107,762 | (524,341,874) | (20,000,000) | ||||||||||||||||||||||
Repurchases of Class A Common Stock | 120,877 | $ 53 | ||||||||||||||||||||||||||
Repurchases of Class A Common Stock (in shares) | (5,333,251) | |||||||||||||||||||||||||||
Class A Common Stock Issued in Connection with the Purchase of Investments | 120,023 | $ 52 | ||||||||||||||||||||||||||
Class A Common Stock Issued in Connection with the Purchase of an Investment (in shares) | 5,238,889 | |||||||||||||||||||||||||||
Cancellation of Class C Common Stock | $ (50) | |||||||||||||||||||||||||||
Cancellation of Class C Common Stock (in shares) | (5,026,523) | |||||||||||||||||||||||||||
Equity-Based Compensation | 116,817 | |||||||||||||||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 263,898 | |||||||||||||||||||||||||||
Preferred Stock Dividends | $ (11,644) | $ (5,038) | ||||||||||||||||||||||||||
Common Stock Dividends | (155,263) | |||||||||||||||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2018 | 8,649,610 | $ 482,554 | 8,106,408 | 91,953 | (39,645) | $ 5,349 | $ 0 | $ 2,991 | $ 0 | $ 0 | ||||||||||||||||||
Shares outstanding, ending balance (in shares) at Dec. 31, 2018 | 20,000,000 | 534,857,237 | 1 | 299,081,239 | 0 | 0 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||||
Noncontrolling Interests (See Note 15 Equity) | 15,610,358 | |||||||||||||||||||||||||||
Total Equity | 24,259,968 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax) | (3,398) | (1,058) | ||||||||||||||||||||||||||
Changes in Consolidation | 23,123 | |||||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units | 162,761 | (936) | $ 87 | |||||||||||||||||||||||||
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units (in units) | 8,699,894 | |||||||||||||||||||||||||||
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other | 4,190 | 4,190 | ||||||||||||||||||||||||||
Net Delivery of Common Units - Equity Incentive Plan (in units) | 10,135,649 | |||||||||||||||||||||||||||
Net Delivery of Common Units - Equity Incentive Plans | $ 101 | |||||||||||||||||||||||||||
Equity-Based and Other Non-Cash Compensation | $ (91,067) | |||||||||||||||||||||||||||
Capital Contributions | 4,669,756 | |||||||||||||||||||||||||||
Capital Distributions | $ (3,169,976) | |||||||||||||||||||||||||||
Repurchases of Class A Common Stock | $ 29 | $ (72,095) | ||||||||||||||||||||||||||
Repurchases of Class A Common Stock (in shares) | (2,859,452) | |||||||||||||||||||||||||||
Class A Common Stock Issued in Connection with the Purchase of Investments | 247,933 | $ 92 | ||||||||||||||||||||||||||
Class A Common Stock Issued in Connection with the Purchase of an Investment (in shares) | 9,174,251 | |||||||||||||||||||||||||||
Cancellation of Class C Common Stock | $ (87) | |||||||||||||||||||||||||||
Cancellation of Class C Common Stock (in shares) | (8,699,894) | |||||||||||||||||||||||||||
Equity-Based Compensation | 207,789 | |||||||||||||||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 2,005,049 | 2,005,049 | ||||||||||||||||||||||||||
Preferred Stock Dividends | $ (23,288) | $ (10,076) | ||||||||||||||||||||||||||
Common Stock Dividends | (271,486) | |||||||||||||||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2019 | 10,807,490 | $ 482,554 | $ 8,565,919 | $ 1,792,152 | $ (41,639) | $ 5,600 | $ 0 | $ 2,904 | ||||||||||||||||||||
Shares outstanding, ending balance (in shares) at Dec. 31, 2019 | 20,000,000 | 560,007,579 | 1 | 290,381,345 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||||
Noncontrolling Interests (See Note 15 Equity) | 19,694,884 | |||||||||||||||||||||||||||
Total Equity | $ 30,502,374 | |||||||||||||||||||||||||||
[1] | $0.34 per common unit, $0.843750 per Series A preferred unit, and $0.812500 per Series B preferred unit. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Dividend declared (in dollars per share) | $ 0.295 | $ 0.34 | $ 0.50 | $ 0.67 |
Series A Preferred Stock | ||||
Dividend declared (in dollars per share) | 0.843750 | 0.843750 | 1.687500 | 1.687500 |
Series B Preferred Stock | ||||
Dividend declared (in dollars per share) | $ 0.812500 | $ 0.812500 | $ 1.625000 | $ 1.625000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net Income (Loss) | $ 4,639,540 | $ 2,450,946 | $ 2,560,042 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities: | |||
Equity-Based and Other Non-Cash Compensation | 297,708 | 331,708 | 334,820 |
Net Realized (Gains) Losses on Investments | (497,346) | (534,652) | (38,316) |
Change in Unrealized (Gains) Losses on Investments | (2,664,538) | (720,180) | (889,828) |
Capital Allocation-Based Income | (2,430,425) | (554,510) | (2,015,676) |
Other Non-Cash Amounts | (45,250) | (23,211) | (51,129) |
Cash Flows Due to Changes in Operating Assets and Liabilities: | |||
Change in Consolidation and Other | (137,498) | 45,914 | 1,831 |
Change in Due from / to Affiliates | (82,508) | (201,196) | (285,562) |
Change in Other Assets | 954,554 | 24,226 | 86,545 |
Change in Accounts Payable, Accrued Expenses and Other Liabilities | 327,431 | 93,536 | 1,581,967 |
Investments Purchased | (36,678,379) | (35,663,033) | (39,616,120) |
Proceeds from Investments | 30,634,556 | 27,143,977 | 34,799,260 |
Net Cash Provided (Used) by Operating Activities | (5,682,155) | (7,606,475) | (3,532,166) |
Investing Activities | |||
Purchases of Fixed Assets | (194,569) | (102,664) | (97,070) |
Development of Oil and Natural Gas Properties | (12,793) | (2,563) | (1,052) |
Proceeds from Sale of Oil and Natural Gas Properties | 0 | 26,630 | 0 |
Net Cash Provided (Used) by Investing Activities | (207,362) | (78,597) | (98,122) |
Financing Activities | |||
Preferred Stock Dividends | (33,364) | (33,364) | (33,364) |
Common Stock Dividends | (271,486) | (322,341) | (311,973) |
Distributions to Redeemable Noncontrolling Interests | 0 | (16,100) | (890) |
Contributions from Redeemable Noncontrolling Interests | 0 | 565,553 | 220,167 |
Distributions to Noncontrolling Interests | (3,169,975) | (3,015,655) | (2,125,842) |
Contributions from Noncontrolling Interests | 4,669,756 | 4,359,615 | 3,116,722 |
Net Delivery of Class A Common Stock (Equity Incentive Plans) | (90,966) | (98,796) | (58,679) |
Repurchases of Class A Common Stock | (72,124) | (173,142) | 0 |
Proceeds from Debt Obligations | 14,811,703 | 17,117,987 | 11,657,948 |
Repayment of Debt Obligations | (9,310,771) | (11,712,014) | (9,514,558) |
Financing Costs Paid | (47,784) | (55,812) | (9,448) |
Net Cash Provided (Used) by Financing Activities | 6,484,989 | 6,615,931 | 2,940,083 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 432 | (24,708) | 79,751 |
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash | 595,904 | (1,093,849) | (610,454) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 2,641,512 | 3,735,361 | 4,345,815 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 3,237,416 | 2,641,512 | 3,735,361 |
Supplemental Disclosures of Cash Flow Information | |||
Payments for Interest | 1,032,818 | 788,220 | 773,882 |
Payments for Income Taxes | 129,929 | 148,141 | 55,216 |
Payments for Operating Lease Liabilities | 50,574 | 0 | 0 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities | |||
Equity-Based and Other Non-Cash Contributions | 299,087 | 343,443 | 346,035 |
Class A Common Stock Issued in Connection with the Purchase of an Investment | 248,025 | 120,075 | 94,181 |
Non-Cash Distributions to Noncontrolling Interests | 0 | 0 | 3,195 |
Debt Obligations - Net Gains (Losses), Translation and Other | (262,512) | 779,529 | (512,745) |
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other | 4,190 | (4,833) | (2,792) |
Gain on Sale of Oil and Natural Gas Properties | 0 | 15,224 | 0 |
Right-of-Use Assets obtained in Exchange for new Operating Lease Liabilities | 10,669 | 0 | 0 |
Change in Consolidation and Other | |||
Investments | (2,038,205) | (2,251,865) | (75,827) |
Due From Affiliates | 1,642 | 0 | 15,379 |
Other Assets | (19,703) | (94,853) | (298,097) |
Debt Obligations | (1,046,515) | (3,427,070) | 46,809 |
Due to Affiliates | 0 | 8,857 | 5,021 |
Accounts Payable, Accrued Expenses and Other Liabilities | (47,731) | 198,270 | (114,309) |
Noncontrolling Interests | 23,123 | 593,172 | (1,682) |
Redeemable Noncontrolling Interests | (1,122,641) | 0 | (315,057) |
Gain on Asset Contribution | 0 | 312,644 | 0 |
Reconciliation to the Consolidated Statements of Financial Condition | |||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 2,641,512 | $ 3,735,361 | $ 3,735,361 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION KKR & Co. Inc. (NYSE: KKR), together with its subsidiaries ("KKR"), is a leading global investment firm that manages multiple alternative asset classes including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR's portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. On July 1, 2018, KKR & Co. L.P. converted from a Delaware limited partnership to a Delaware corporation named KKR & Co. Inc. (the "Conversion"). Because the Conversion became effective on July 1, 2018, the prior period amounts in the accompanying consolidated financial statements for the six months ended June 30, 2018 and for the year ended December 31, 2017 reflect KKR as a limited partnership and not a corporation. In this report, references to KKR & Co. Inc. for periods prior to the Conversion mean KKR & Co. L.P., and references to KKR's Class A common stock, Series A Preferred Stock and Series B Preferred Stock for periods prior to the Conversion mean common units, Series A preferred units and Series B preferred units of KKR & Co. L.P., respectively, in each case, except where the context requires otherwise. As a result of the Conversion, the financial impact to the consolidated financial statements contained herein consisted of (i) reclassifications from partnership equity accounts to equity accounts reflective of a corporation and (ii) a partial step-up in the tax basis of certain assets resulting in the recognition of a net income tax benefit. KKR & Co. Inc. is the parent company of KKR Group Holdings Corp., which is (i) a general partner of KKR Fund Holdings L.P. ("Fund Holdings") and KKR International Holdings L.P. ("International Holdings") and (ii) the sole stockholder of KKR Management Holdings Corp. (the general partner of KKR Management Holdings L.P. ("Management Holdings")) and KKR Fund Holdings GP Limited (the other general partner of Fund Holdings and International Holdings). Fund Holdings, Management Holdings and International Holdings are collectively referred to as the "KKR Group Partnerships." KKR & Co. Inc. both indirectly controls the KKR Group Partnerships and indirectly holds Class A partner units in each KKR Group Partnership (collectively, "KKR Group Partnership Units") representing economic interests in KKR's business. The remaining KKR Group Partnership Units are held by KKR Holdings L.P. ("KKR Holdings"), which is not a subsidiary of KKR & Co. Inc. As of December 31, 2019 , KKR & Co. Inc. held approximately 65.9% of the KKR Group Partnership Units and KKR Holdings held approximately 34.1% of the KKR Group Partnership Units. The percentage ownership in the KKR Group Partnerships will continue to change as KKR Holdings exchange units in the KKR Group Partnerships for shares of Class A common stock of KKR & Co. Inc. or when KKR & Co. Inc. otherwise issues or repurchases shares of Class A common stock of KKR & Co. Inc. The KKR Group Partnerships also have outstanding equity interests that provide for the carry pool and preferred units with economic terms that mirror the preferred stock issued by KKR & Co. Inc. The following table presents the effect of changes in the ownership interest in the KKR Group Partnerships on KKR: For the Years Ended December 31, 2019 2018 2017 Net income (loss) attributable to KKR & Co. Inc. $ 2,005,049 $ 1,131,063 $ 1,018,305 Transfers from noncontrolling interests: Exchange of KKR Group Partnership shares held by KKR Holdings L.P. (1) 161,270 570,898 247,946 Change from net income (loss) attributable to KKR & Co. Inc. and transfers from noncontrolling interests held by KKR Holdings $ 2,166,319 $ 1,701,961 $ 1,266,251 (1) Increase in KKR's stockholders' equity for exchange of 8,699,894 , 36,890,095 , and 17,786,064 KKR Group Partnerships units for the years ended December 31, 2019, 2018, and 2017, respectively, held by KKR Holdings L.P., inclusive of deferred taxes. Reorganization and Acquisition of KKR Capstone On January 1, 2020, KKR completed an internal reorganization (the "Reorganization"), in which (i) Management Holdings and International Holdings were combined with Fund Holdings, which changed its name to KKR Group Partnership L.P. ("KKR Group Partnership") and became the sole intermediate holding company for KKR's business, (ii) the issuers of each series of KKR’s outstanding senior notes were contributed to KKR Group Partnership and the guarantees by International Holdings and Management Holdings under the senior notes were automatically and unconditionally released and discharged pursuant to the terms of the indentures governing such senior notes, with KKR Group Partnership remaining as a guarantor, and (iii) the ownership interests of certain operating subsidiaries of KKR Group Partnership were reorganized. References to "KKR Group Partnerships" for periods prior to the Reorganization mean Fund Holdings, Management Holdings and International Holdings, collectively, and references to "KKR Group Partnership" for periods following the Reorganization mean KKR Group Partnership L.P. References to a "KKR Group Partnership Unit" mean (i) one Class A partner interest in each of Fund Holdings, Management Holdings and International Holdings, collectively, for periods prior to the Reorganization and (ii) one Class A partner interest in KKR Group Partnership for periods following the Reorganization. Contemporaneously with the Reorganization, KKR acquired KKR Capstone Americas LLC and its affiliates ("KKR Capstone") on January 1, 2020. KKR Capstone was consolidated prior to January 1, 2020 and consequently, this transaction will be accounted for as an equity transaction in the first quarter of 2020. The consolidated financial statements and the accompanying notes do not reflect the Reorganization or the acquisition of KKR Capstone on January 1, 2020. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements (referred to hereafter as the "financial statements") have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). KKR consolidates the financial results of the KKR Group Partnerships and their consolidated entities, which include the accounts of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds and certain other entities including CFEs. References in the accompanying financial statements to "principals" are to KKR's senior employees and non-employee operating consultants who hold interests in KKR's business through KKR Holdings. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and investment income (loss) during the reporting periods. Such estimates include but are not limited to (i) the determination of the income tax provision and (ii) the valuation of investments and financial instruments. Actual results could differ from those estimates, and such differences could be material to the financial statements. Principles of Consolidation The types of entities KKR assesses for consolidation include (i) subsidiaries, including management companies, broker-dealers and general partners of investment funds that KKR manages, (ii) entities that have all the attributes of an investment company, like investment funds, (iii) CFEs and (iv) other entities, including entities that employ non-employee operating consultants. Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity. Pursuant to its consolidation policy, KKR first considers whether an entity is considered a VIE and therefore whether to apply the consolidation guidance under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities ("VOEs") under the voting interest model. KKR's funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their investments in portfolio companies even if majority-owned and controlled. Rather, the consolidated funds and vehicles reflect their investments at fair value as described below in "Fair Value Measurements." An entity in which KKR holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity's activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both and substantially all of the legal entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Limited partnerships and other similar entities where unaffiliated limited partners have not been granted (i) substantive participatory rights or (ii) substantive rights to either dissolve the partnership or remove the general partner ("kick-out rights") are VIEs under condition (b) above. KKR's investment funds that are not CFEs (i) are generally limited partnerships, (ii) generally provide KKR with operational discretion and control, and (iii) generally have fund investors with no substantive rights to impact ongoing governance and operating activities of the fund, including the ability to remove the general partner, and, as such, the limited partners do not hold kick-out rights. Accordingly, most of KKR's investment funds are categorized as VIEs. KKR consolidates all VIEs in which it is the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (i) whether an entity in which KKR holds a variable interest is a VIE and (ii) whether KKR's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Fees earned by KKR that are customary and commensurate with the level of effort required to provide those services, and where KKR does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered variable interests. KKR factors in all economic interests including interests held through related parties, to determine if it holds a variable interest. KKR determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion when facts and circumstances change. For entities that are determined not to be VIEs, these entities are generally considered VOEs and are evaluated under the voting interest model. KKR consolidates VOEs it controls through a majority voting interest or through other means. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE depends on the facts and circumstances surrounding each entity and therefore certain of KKR's investment funds may qualify as VIEs whereas others may qualify as VOEs. With respect to CLOs (which are generally VIEs), in its role as collateral manager, KKR generally has the power to direct the activities of the CLO that most significantly impact the economic performance of the entity. In some, but not all cases, KKR, through its residual interest in the CLO may have variable interests that represent an obligation to absorb losses of, or a right to receive benefits from, the CLO that could potentially be significant to the CLO. In cases where KKR has both the power to direct the activities of the CLO that most significantly impact the CLO's economic performance and the obligation to absorb losses of the CLO or the right to receive benefits from the CLO that could potentially be significant to the CLO, KKR is deemed to be the primary beneficiary and consolidates the CLO. With respect to CMBS vehicles (which are generally VIEs), KKR holds unrated and non-investment grade rated securities issued by the CMBS, which are the most subordinate tranche of the CMBS vehicle. The economic performance of the CMBS is most significantly impacted by the performance of the underlying assets. Thus, the activities that most significantly impact the CMBS economic performance are the activities that most significantly impact the performance of the underlying assets. The special servicer has the ability to manage the CMBS assets that are delinquent or in default to improve the economic performance of the CMBS. KKR generally has the right to unilaterally appoint and remove the special servicer for the CMBS and as such is considered the controlling class of the CMBS vehicle. These rights give KKR the ability to direct the activities that most significantly impact the economic performance of the CMBS. Additionally, as the holder of the most subordinate tranche, KKR is in a first loss position and has the right to receive benefits, including the actual residual returns of the CMBS, if any. In these cases, KKR is deemed to be the primary beneficiary and consolidates the CMBS vehicle. Investments Investments consist primarily of private equity, credit, investments of consolidated CFEs, real assets, equity method and other investments. Investments denominated in currencies other than the entity's functional currency are valued based on the spot rate of the respective currency at the end of the reporting period with changes related to exchange rate movements reflected in the consolidated statements of operations. Security and loan transactions are recorded on a trade date basis. Further disclosure on investments is presented in Note 4 "Investments." The following describes the types of securities held within each investment class. Private Equity - Consists primarily of equity investments in operating businesses, including growth equity investments. Credit - Consists primarily of investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans), originated, distressed and opportunistic credit, real estate mortgage loans, and interests in unconsolidated CLOs. Investments of Consolidated CFEs - Consists primarily of (i) investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans) held directly by the consolidated CLOs and (ii) investments in originated, fixed-rate real estate mortgage loans held directly by the consolidated CMBS vehicles. Real Assets - Consists primarily of investments in (i) energy related assets, principally oil and natural gas properties, (ii) infrastructure assets, and (iii) real estate, principally residential and commercial real estate assets and businesses. Equity Method - Other - Consists primarily of (i) certain direct interests in operating companies in which KKR is deemed to exert significant influence under GAAP and (ii) certain interests in partnerships and joint ventures that hold private equity and real assets investments. Equity Method - Capital Allocation-Based Income - Consists primarily of (i) the capital interest KKR holds as the general partner in certain investment funds, which are not consolidated and (ii) the carried interest component of the general partner interest, which are accounted for as a single unit of account. Other - Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit or investments of consolidated CFEs. Investments held by Consolidated Investment Funds The consolidated investment funds are, for GAAP purposes, investment companies and reflect their investments and other financial instruments, including portfolio companies that are majority-owned and controlled by KKR's investment funds, at fair value. KKR has retained this specialized accounting for the consolidated investment funds in consolidation. Accordingly, the unrealized gains and losses resulting from changes in fair value of the investments and other financial instruments held by the consolidated investment funds are reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Certain energy investments are made through consolidated investment funds, including investments in working and royalty interests in oil and natural gas properties as well as investments in operating companies that operate in the energy industry. Since these investments are held through consolidated investment funds, such investments are reflected at fair value as of the end of the reporting period. Investments in operating companies that are held through KKR's consolidated investment funds are generally classified within private equity investments and investments in working and royalty interests in oil and natural gas properties are generally classified as real asset investments. Energy Investments held by KKR KKR directly holds certain working and royalty interests in oil and natural gas properties that are not held through investment funds. Oil and natural gas activities are accounted for under the successful efforts method of accounting and such working interests are consolidated based on the proportion of the working interests held by KKR. Accordingly, KKR reflects its proportionate share of these interests on a gross basis and changes in the value of these interests are not reflected as unrealized gains and losses in the consolidated statements of operations. Under the successful efforts method, exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. Costs that are associated with the drilling of successful exploration wells are capitalized if proved reserves are found. Lease acquisition costs are capitalized when incurred. Costs associated with the drilling of exploratory wells that do not find proved reserves, geological and geophysical costs and costs of certain nonproducing leasehold costs are charged to expense as incurred. Expenditures for repairs and maintenance, including workovers, are charged to expense as incurred. The capitalized costs of producing oil and natural gas properties are depleted on a field-by-field basis using the units-of production method based on the ratio of current production to estimated total net proved oil, natural gas and natural gas liquid reserves. Proved developed reserves are used in computing depletion rates for drilling and development costs and total proved reserves are used for depletion rates of leasehold costs. Estimated dismantlement and abandonment costs for oil and natural gas properties, net of salvage value, are capitalized at their estimated net present value and amortized on a unit-of-production basis over the remaining life of the related proved developed reserves. Whenever events or changes in circumstances indicate that the carrying amounts of oil and natural gas properties may not be recoverable, KKR evaluates oil and natural gas properties and related equipment and facilities for impairment on a field-by-field basis. The determination of recoverability is made based upon estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related asset. Any impairment in value is recognized when incurred and is recorded in General, Administrative, and Other expense in the consolidated statements of operations. Fair Value Option For certain investments and other financial instruments, KKR has elected the fair value option. Such election is irrevocable and is applied on a financial instrument by financial instrument basis at initial recognition. KKR has elected the fair value option for certain private equity, real assets, credit, investments of consolidated CFEs, equity method - other and other financial instruments not held through a consolidated investment fund. Accounting for these investments at fair value is consistent with how KKR accounts for its investments held through consolidated investment funds. Changes in the fair value of such instruments are recognized in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Interest income on interest bearing credit securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest Income in the consolidated statements of operations. Equity Method For certain investments in entities over which KKR exercises significant influence but which do not meet the requirements for consolidation and for which KKR has not elected the fair value option, KKR uses the equity method of accounting. The carrying value of equity method investments, for which KKR has not elected the fair value option, is determined based on the amounts invested by KKR, adjusted for the equity in earnings or losses of the investee allocated based on KKR's respective ownership percentage, less distributions. For equity method investments for which KKR has not elected the fair value option, KKR records its proportionate share of the investee's earnings or losses based on the most recently available financial information of the investee, which in certain cases may lag the date of KKR's financial statements by no more than three calendar months. As of December 31, 2019 , equity method investees for which KKR reports financial results on a lag include Marshall Wace LLP ("Marshall Wace"). KKR evaluates its equity method investments for which KKR has not elected the fair value option for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The carrying value of investments classified as Equity Method - Capital Allocation-Based Income approximates fair value, because the underlying investments of the unconsolidated investment funds are reported at fair value. Financial Instruments held by Consolidated CFEs KKR measures both the financial assets and financial liabilities of the consolidated CFEs in its financial statements using the more observable of the fair value of the financial assets and the fair value of the financial liabilities which results in KKR's consolidated net income (loss) reflecting KKR's own economic interests in the consolidated CFEs including (i) changes in the fair value of the beneficial interests retained by KKR and (ii) beneficial interests that represent compensation for services rendered. For the consolidated CLOs, KKR has determined that the fair value of the financial assets of the consolidated CLOs is more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are being measured at fair value and the financial liabilities are being measured in consolidation as: (1) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (2) the sum of the fair value of any beneficial interests retained by KKR (other than those that represent compensation for services) and KKR's carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interests retained by KKR). For the consolidated CMBS vehicles, KKR has determined that the fair value of the financial liabilities of the consolidated CMBS vehicles is more observable than the fair value of the financial assets of the consolidated CMBS vehicles. As a result, the financial liabilities of the consolidated CMBS vehicles are being measured at fair value and the financial assets are being measured in consolidation as: (1) the sum of the fair value of the financial liabilities (other than the beneficial interests retained by KKR), the fair value of the beneficial interests retained by KKR and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CMBS vehicles less (2) the carrying value of any nonfinancial assets that are incidental to the operations of the CMBS vehicles. The resulting amount is allocated to the individual financial assets. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for certain of KKR's equity method investments (see "Equity Method" above) and debt obligations (as described in Note 10 "Debt Obligations"), KKR's investments and other financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation techniques are applied. These valuation techniques involve varying levels of management estimation and judgment, the degree of which is dependent on a variety of factors. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: Level I - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities and securities sold short. Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities and certain over-the-counter derivatives such as foreign currency option and forward contracts. Level III - Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, credit investments, equity method investments for which the fair value option was elected and investments and debt obligations of consolidated CMBS entities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. KKR's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset. A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by KKR in determining fair value is greatest for instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may cause transfers between Levels I, II, and III, which KKR recognizes at the beginning of the reporting period. Investments and other financial instruments that have readily observable market prices (such as those traded on a securities exchange) are stated at the last quoted sales price as of the reporting date. KKR does not adjust the quoted price for these investments, even in situations where KKR holds a large position and a sale could reasonably affect the quoted price. Management's determination of fair value is based upon the methodologies and processes described below and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors. Level II Valuation Methodologies Credit Investments: These financial instruments generally have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that KKR and others are willing to pay for an instrument. Ask prices represent the lowest price that KKR and others are willing to accept for an instrument. For financial instruments whose inputs are based on bid-ask prices obtained from third party pricing services, fair value may not always be a predetermined point in the bid-ask range. KKR's policy is generally to allow for mid-market pricing and adjusting to the point within the bid-ask range that meets KKR's best estimate of fair value. Investments and Debt Obligations of Consolidated CLO Vehicles: Investments of consolidated CLO vehicles are reported within Investments of Consolidated CFEs and are valued using the same valuation methodology as described above for credit investments. Under ASU 2014-13, KKR measures CLO debt obligations on the basis of the fair value of the financial assets of the CLO. Securities Indexed to Publicly-Listed Securities: These securities are typically valued using standard convertible security pricing models. The key inputs into these models that require some amount of judgment are the credit spreads utilized and the volatility assumed. To the extent the company being valued has other outstanding debt securities that are publicly-traded, the implied credit spread on the company's other outstanding debt securities would be utilized in the valuation. To the extent the company being valued does not have other outstanding debt securities that are publicly-traded, the credit spread will be estimated based on the implied credit spreads observed in comparable publicly-traded debt securities. In certain cases, an additional spread will be added to reflect an illiquidity discount due to the fact that the security being valued is not publicly-traded. The volatility assumption is based upon the historically observed volatility of the underlying equity security into which the convertible debt security is convertible and/or the volatility implied by the prices of options on the underlying equity security. Equity Securities: The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction or leverage that collateralized the equity securities. Derivatives: The valuation incorporates observable inputs comprising yield curves, foreign currency rates and credit spreads. Level III Valuation Methodologies Private Equity Investments: KKR generally employs two valuation methodologies when determining the fair value of a private equity investment. The first methodology is typically a market comparables analysis that considers key financial inputs and recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. In certain cases the results of the discounted cash flow approach can be significantly impacted by these estimates. Other inputs are also used in both methodologies. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement. Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement. When determining the weighting ascribed to each valuation methodology, KKR considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis, the expected hold period and manner of realization for the investment, and in the case of investments being sold pursuant to an executed definitive agreement, an estimated probability of such sale being completed. These factors can result in different weightings among investments in the portfolio and in certain instances may result in up to a 100% weighting to a single methodology. When an illiquidity discount is to be applied, KKR seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments. KKR then evaluates such private equity investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include (i) whether KKR is unable to freely sell the portfolio company or conduct an initial public offering of the portfolio company due to the consent rights of a third party or similar factors, (ii) whether the portfolio company is undergoing significant restructuring activity or similar factors, and (iii) characteristics about the portfolio company regarding its size and/or whether the portfolio company is experiencing, or expected to experience, a significant decline in earnings. These factors generally make it less likely that a portfolio company would be sold or publicly offered in the near term at a price indicated by using just a market multiples and/or discounted cash flow analysis, and these factors tend to reduce the number of opportunities to sell an investment and/or increase the time horizon over which an investment may be monetized. Depending on the applicability of these factors, KKR determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time KKR holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by KKR in its valuations. In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted |
NET GAINS (LOSSES) FROM INVESTM
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES | NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES Net Gains (Losses) from Investment Activities in the consolidated statements of operations consist primarily of the realized and unrealized gains and losses on investments (including foreign exchange gains and losses attributable to foreign denominated investments and related activities) and other financial instruments, including those for which the fair value option has been elected. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments during a period. Upon disposition of an investment or financial instrument, previously recognized unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period. The following table summarizes total Net Gains (Losses) from Investment Activities for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 261,920 $ 2,849,031 $ 3,110,951 Credit (1) (92,114 ) (150,881 ) (242,995 ) Investments of Consolidated CFEs (1) (57,230 ) 270,268 213,038 Real Assets (1) 93,848 (128,393 ) (34,545 ) Equity Method - Other (1) 70,385 540,775 611,160 Other Investments (1) 53,688 (240,548 ) (186,860 ) Foreign Exchange Forward Contracts and Options (2) 161,175 20,309 181,484 Securities Sold Short (2) 54,707 (53,483 ) 1,224 Other Derivatives (2) (19,584 ) (36,918 ) (56,502 ) Debt Obligations and Other (3) (29,449 ) (405,622 ) (435,071 ) Net Gains (Losses) From Investment Activities $ 497,346 $ 2,664,538 $ 3,161,884 For the Year Ended December 31, 2018 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 184,784 $ 708,600 $ 893,384 Credit (1) (354,090 ) (420,434 ) (774,524 ) Investments of Consolidated CFEs (1) (83,719 ) (452,331 ) (536,050 ) Real Assets (1) 92,885 67,999 160,884 Equity Method - Other (1) (3,991 ) 339,027 335,036 Other Investments (1) (239,081 ) (434,537 ) (673,618 ) Foreign Exchange Forward Contracts and Options (2) (90,625 ) 266,938 176,313 Securities Sold Short (2) 750,007 26,465 776,472 Other Derivatives (2) (13,273 ) 1,037 (12,236 ) Debt Obligations and Other (3) 291,755 617,416 909,171 Net Gains (Losses) From Investment Activities $ 534,652 $ 720,180 $ 1,254,832 For the Year Ended December 31, 2017 Net Realized Net Unrealized Total Private Equity (1) $ 223,568 $ 338,720 $ 562,288 Credit (1) (470,487 ) 423,603 (46,884 ) Investments of Consolidated CFEs (1) (97,129 ) 352 (96,777 ) Real Assets (1) (18,722 ) 218,728 200,006 Equity Method - Other (1) 34,190 95,968 130,158 Other Investments (1) (796,348 ) 65,516 (730,832 ) Foreign Exchange Forward Contracts and Options (2) (31,772 ) (342,849 ) (374,621 ) Securities Sold Short (2) 1,116,325 97,811 1,214,136 Other Derivatives (2) (7,129 ) (23,687 ) (30,816 ) Debt Obligations and Other (3) 85,820 15,666 101,486 Net Gains (Losses) From Investment Activities $ 38,316 $ 889,828 $ 928,144 (1) See Note 4 "Investments." (2) See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." (3) |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investments consist of the following: December 31, 2019 December 31, 2018 Private Equity $ 12,923,600 $ 7,349,559 Credit 10,538,139 9,099,135 Investments of Consolidated CFEs 14,948,237 14,733,423 Real Assets 3,567,944 3,157,954 Equity Method - Other 4,846,949 4,212,874 Equity Method - Capital Allocation-Based Income 5,329,368 3,584,415 Other Investments 2,782,031 2,770,622 Total Investments $ 54,936,268 $ 44,907,982 As of December 31, 2019 and December 31, 2018, there were no investments which represented greater than 5% of total investments. The majority of the securities underlying private equity investments represent equity securities. Equity Method Investment in Marshall Wace On November 2, 2015, KKR entered into a long-term strategic relationship with Marshall Wace and acquired a 24.9% interest in Marshall Wace through a combination of cash and Class A common stock. Subject to the exercise of a put option by Marshall Wace or a call option by KKR, at subsequent closings to occur in the second, third, and fourth years following the initial closing described above, and subject to satisfaction or waiver of certain closing conditions, including regulatory approvals, KKR may at each such closing subscribe (or be required to subscribe) for an incremental 5% equity interest. The exercise of such options would require the use of cash and/or KKR Class A common stock. On each of November 30, 2017 and 2018 and November 22, 2019, KKR acquired an additional 5.0% interest in Marshall Wace after the exercise of the options agreed to between Marshall Wace and KKR, bringing KKR's total ownership of Marshall Wace to 39.6% , after giving effect to certain equity dilution. These acquisitions in 2017, 2018 and 2019 were funded through a combination of cash and 4,727,966 , 5,238,889 and 5,674,251 shares of Class A common stock, respectively. KKR's investment in Marshall Wace is accounted for using the equity method of accounting. Summarized Financial Information KKR evaluates each of its equity method investments to determine if any are significant as defined in the regulations promulgated by the U.S. Securities and Exchange Commission (the "SEC"). As of and for the years ended December 31, 2019, 2018, and 2017, no individual equity method investment held by KKR met the significance criteria. As such, KKR is not required to present separate financial statements for any of its equity method investments. The following table shows summarized financial information relating to the statements of financial condition for all of KKR's equity method investments assuming 100% ownership as of December, 31, 2019 and 2018: December 31, 2019 December 31, 2018 Total Assets $ 112,688,482 $ 93,577,773 Total Liabilities $ 22,622,609 $ 21,296,194 Total Equity $ 90,065,873 $ 72,281,579 The following table shows summarized financial information relating to the statements of operations for all of KKR's equity method investments assuming 100% ownership for the years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, 2019 2018 2017 Investment Related Revenues $ 2,552,266 $ 1,679,950 $ 1,167,038 Other Revenues 5,132,796 5,304,634 3,002,987 Investment Related Expenses 1,385,870 1,258,782 482,336 Other Expenses 4,066,713 3,602,612 2,392,965 Net Realized and Unrealized Gain/(Loss) from Investments 10,532,988 1,818,861 9,217,912 Net Income (Loss) $ 12,765,467 $ 3,942,051 $ 10,512,636 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize the valuation of assets and liabilities measured and reported at fair value by the fair value hierarchy. Investments classified as Equity Method - Other, for which the fair value option has not been elected, and Equity Method - Capital Allocation-Based Income have been excluded from the tables below. Assets, at fair value: December 31, 2019 Level I Level II Level III Total Private Equity $ 1,393,654 $ 1,658,264 $ 9,871,682 $ 12,923,600 Credit — 1,320,380 9,217,759 10,538,139 Investments of Consolidated CFEs — 14,948,237 — 14,948,237 Real Assets — — 3,567,944 3,567,944 Equity Method - Other 228,999 49,511 1,656,045 1,934,555 Other Investments 431,084 196,192 2,154,755 2,782,031 Total Investments 2,053,737 18,172,584 26,468,185 46,694,506 Foreign Exchange Contracts and Options — 188,572 — 188,572 Other Derivatives — 1,333 21,806 (1) 23,139 Total Assets $ 2,053,737 $ 18,362,489 $ 26,489,991 $ 46,906,217 December 31, 2018 Level I Level II Level III Total Private Equity $ 1,156,977 $ 63,999 $ 6,128,583 $ 7,349,559 Credit — 2,334,405 6,764,730 9,099,135 Investments of Consolidated CFEs — 12,650,878 2,082,545 14,733,423 Real Assets — — 3,157,954 3,157,954 Equity Method - Other 245,225 43,943 1,503,022 1,792,190 Other Investments 480,192 173,844 2,116,586 2,770,622 Total Investments 1,882,394 15,267,069 21,753,420 38,902,883 Foreign Exchange Contracts and Options — 177,264 — 177,264 Other Derivatives — 3,879 37,116 (1) 40,995 Total Assets $ 1,882,394 $ 15,448,212 $ 21,790,536 $ 39,121,142 (1) Includes derivative assets that were valued using a third-party valuation firm. The approach used to estimate the fair value of these derivative assets was generally the discounted cash flow method, which includes consideration of the current portfolio, projected portfolio construction, projected portfolio realizations, portfolio volatility (based on the volatility, correlation, and size of each underlying asset class), and the discounting of future cash flows to the reporting date. Liabilities, at fair value: December 31, 2019 Level I Level II Level III Total Securities Sold Short $ 251,223 $ — $ — $ 251,223 Foreign Exchange Contracts and Options — 39,364 — 39,364 Unfunded Revolver Commitments — — 75,842 (1) 75,842 Other Derivatives — 34,174 — 34,174 Debt Obligations of Consolidated CFEs — 14,658,137 — 14,658,137 Total Liabilities $ 251,223 $ 14,731,675 $ 75,842 $ 15,058,740 December 31, 2018 Level I Level II Level III Total Securities Sold Short $ 344,124 $ — $ — $ 344,124 Foreign Exchange Contracts and Options — 60,749 — 60,749 Unfunded Revolver Commitments — — 52,066 (1) 52,066 Other Derivatives — 18,440 17,200 (2) 35,640 Debt Obligations of Consolidated CFEs — 12,081,771 1,876,783 13,958,554 Total Liabilities $ 344,124 $ 12,160,960 $ 1,946,049 $ 14,451,133 (1) These unfunded revolver commitments are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (2) Includes options issued in connection with the acquisition of the equity interest in Marshall Wace and its affiliates in November 2015 to increase KKR's ownership interest in periodic increments. The options are valued using a Monte-Carlo simulation valuation methodology. Key inputs used in this methodology that require estimates include Marshall Wace's dividend yield, assets under management volatility and equity volatility. See Note 4 "Investments." The following tables summarize changes in investments and debt obligations measured and reported at fair value for which Level III inputs have been used to determine fair value for the years ended December 31, 2019 and 2018, respectively: For the Year Ended December 31, 2019 Level III Investments Level III Private Credit Investments of Real Assets Equity Method - Other Other Investments Total Debt Balance, Beg. of Period $ 6,128,583 $ 6,764,730 $ 2,082,545 $ 3,157,954 $ 1,503,022 $ 2,116,586 $ 21,753,420 $ 1,876,783 Transfers In / (Out) Due to Changes in Consolidation 23,123 956,402 (2,015,130 ) — — (42,864 ) (1,078,469 ) (1,849,206 ) Transfers In 26,045 149,804 — 18,429 26,520 — 220,798 — Transfers Out (491,723 ) (10,248 ) — — (143,620 ) (36,018 ) (681,609 ) — Asset Purchases / Debt Issuances 3,179,376 4,600,626 — 927,477 414,393 829,992 9,951,864 — Sales / Paydowns (353,684 ) (3,032,887 ) (62,334 ) (501,371 ) (303,196 ) (516,346 ) (4,769,818 ) — Settlements — 39,424 — — — — 39,424 (26,770 ) Net Realized Gains (Losses) 114,812 (55,948 ) (2,759 ) 93,848 17,496 52,757 220,206 — Net Unrealized Gains (Losses) 1,245,150 (177,954 ) (2,322 ) (128,393 ) 141,430 (249,352 ) 828,559 (807 ) Change in Other Comprehensive Income — (16,190 ) — — — — (16,190 ) — Balance, End of Period $ 9,871,682 $ 9,217,759 $ — $ 3,567,944 $ 1,656,045 $ 2,154,755 $ 26,468,185 $ — Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date $ 1,316,857 $ (208,744 ) $ — $ (90,583 ) $ 149,519 $ (230,726 ) $ 936,323 $ — For the Year Ended December 31, 2018 Level III Investments Level III Private Equity Credit Investments of Consolidated CFEs Real Assets Equity Method - Other Other Investments Total Debt Obligations of Consolidated CFEs Balance, Beg. of Period $ 2,172,290 $ 5,138,937 $ 5,353,090 $ 2,251,267 $ 1,076,709 $ 1,760,011 $ 17,752,304 $ 5,238,236 Transfers In / (Out) Due to Changes in Consolidation 928,217 770,677 (4,153,641 ) — — 1,065 (2,453,682 ) (4,045,957 ) Transfers In — 154,255 1,000,000 — — 38,782 1,193,037 — Transfers Out (52,568 ) (1,030,072 ) — — — — (1,082,640 ) — Asset Purchases / Debt Issuances 2,383,277 4,265,569 — 1,309,390 657,332 814,407 9,429,975 800,350 Sales / Paydowns (142,067 ) (1,932,299 ) (31,280 ) (545,686 ) (141,806 ) (350,484 ) (3,143,622 ) — Settlements — (1,350 ) — — — — (1,350 ) (20,722 ) Net Realized Gains (Losses) 41,614 (236,595 ) 13,000 55,966 (149,825 ) 20,745 (255,095 ) — Net Unrealized Gains (Losses) 797,820 (294,417 ) (98,624 ) 87,017 60,612 (167,940 ) 384,468 (95,124 ) Change in Other Comprehensive Income — (69,975 ) — — — — (69,975 ) — Balance, End of Period $ 6,128,583 $ 6,764,730 $ 2,082,545 $ 3,157,954 $ 1,503,022 $ 2,116,586 $ 21,753,420 $ 1,876,783 Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date $ 808,637 $ (197,159 ) $ (98,624 ) $ 68,215 $ (86,009 ) $ (120,413 ) $ 374,647 $ (95,124 ) Total realized and unrealized gains and losses recorded for Level III assets and liabilities are reported in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. The following table presents additional information about valuation methodologies and significant unobservable inputs used for investments that are measured and reported at fair value and categorized within Level III as of December 31, 2019 : Fair Value December 31, 2019 Valuation Methodologies Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) Private Equity $ 9,871,682 Private Equity $ 7,608,566 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 6.7% 5.0% - 15.0% Decrease Weight Ascribed to Market Comparables 25.2% 0.0% - 75.0% (4) Weight Ascribed to Discounted Cash Flow 60.0% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 14.8% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 14.7x 8.0x - 26.0x Increase Enterprise Value/Forward EBITDA Multiple 15.0x 8.7x - 23.9x Increase Discounted cash flow Weighted Average Cost of Capital 9.5% 6.7% - 15.4% Decrease Enterprise Value/LTM EBITDA Exit Multiple 12.7x 6.0x - 15.0x Increase Growth Equity $ 2,263,116 Inputs to market comparables, discounted cash flow and milestones Illiquidity Discount 11.7% 10.0% - 40.0% Decrease Weight Ascribed to Market Comparables 37.6% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 0.4% 0.0% - 37.5% (5) Weight Ascribed to Milestones 62.0% 0.0% - 100.0% (6) Scenario Weighting Base 60.8% 40.0% - 70.0% Increase Downside 14.0% 5.0% - 45.0% Decrease Upside 25.2% 5.0% - 45.0% Increase Credit $ 9,217,759 Yield Analysis Yield 6.3% 5.3% - 25.2% Decrease Net Leverage 5.5x 1.2x - 14.1x Decrease EBITDA Multiple 10.5x 0.2x - 27.4x Increase Real Assets $ 3,567,944 (9) Energy $ 1,686,783 Discounted cash flow Weighted Average Cost of Capital 11.6% 8.5% - 17.6% Decrease Average Price Per BOE (8) $38.73 $35.21 - $40.70 Increase Real Estate $ 1,671,221 Inputs to direct income capitalization and discounted cash flow Weight Ascribed to Direct Income Capitalization 33.9% 0.0% - 100.0% (7) Weight Ascribed to Discounted Cash Flow 66.1% 0.0% - 100.0% (5) Direct income capitalization Current Capitalization Rate 5.9% 4.9% - 11.0% Decrease Discounted cash flow Unlevered Discount Rate 7.6% 4.9% - 18.0% Decrease Equity Method - Other $ 1,656,045 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 8.2% 5.0% - 15.0% Decrease Weight Ascribed to Market Comparables 37.4% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 37.9% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 24.7% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 12.3x 8.0x - 17.0x Increase Enterprise Value/Forward EBITDA Multiple 11.3x 10.2x - 14.4x Increase Discounted cash flow Weighted Average Cost of Capital 8.8% 5.6% - 13.1% Decrease Enterprise Value/LTM EBITDA Exit Multiple 10.5x 6.0x - 12.5x Increase Other Investments $ 2,154,755 (10) Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 9.5% 0.0% - 20.0% Decrease Weight Ascribed to Market Comparables 29.6% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 41.0% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 29.4% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 12.6x 1.8x - 27.4x Increase Enterprise Value/Forward EBITDA Multiple 11.3x 0.2x - 13.5x Increase Discounted cash flow Weighted Average Cost of Capital 14.9% 7.7% - 43.8% Decrease Enterprise Value/LTM EBITDA Exit Multiple 9.7x 3.7x - 12.7x Increase (1) In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the investments and debt obligations. LTM means last twelve months and EBITDA means earnings before interest, taxes, depreciation and amortization. (2) Inputs were weighted based on the fair value of the investments included in the range. (3) Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. (4) The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price. (5) The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III investments if the discounted cash flow approach results in a higher valuation than the market comparables approach, transaction price and direct income capitalization approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach, transaction price and direct income capitalization approach. (6) The directional change from an increase in the weight ascribed to the transaction price or milestones would increase the fair value of the Level III investments if the transaction price or milestones results in a higher valuation than the market comparables and discounted cash flow approach. The opposite would be true if the transaction price or milestones results in a lower valuation than the market comparables approach and discounted cash flow approach. (7) The directional change from an increase in the weight ascribed to the direct income capitalization approach would increase the fair value of the Level III investments if the direct income capitalization approach results in a higher valuation than the discounted cash flow approach. The opposite would be true if the direct income capitalization approach results in a lower valuation than the discounted cash flow approach. (8) The total energy fair value amount includes multiple investments (in multiple locations throughout North America) that are held in multiple investment funds and produce varying quantities of oil, condensate, natural gas liquids, and natural gas. Commodity price may be measured using a common volumetric equivalent where one barrel of oil equivalent ("BOE"), is determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids. The price per BOE is provided to show the aggregate of all price inputs for the various investments over a common volumetric equivalent although the valuations for specific investments may use price inputs specific to the asset for purposes of our valuations. The discounted cash flows include forecasted production of liquids (oil, condensate, and natural gas liquids) and natural gas with a forecasted revenue ratio of approximately 89% liquids and 11% natural gas. (9) Includes one Infrastructure investment for $209.9 million that was valued using a market comparables and discounted cash flow analysis; weights ascribed were 25% and 75% , respectively. The significant inputs used in the market comparables approach included the Forward EBITDA multiple 11.7 x. The significant inputs used in the discounted cash flow approach included the weighted average cost of capital 7.0% and the enterprise value/LTM EBITDA exit multiple 10.0 x. (10) Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit, equity method - other or investments of consolidated CFEs. In the table above, certain private equity investments may be valued at cost for a period of time after an acquisition as the best indicator of fair value. In addition, certain valuations of private equity investments may be entirely or partially derived by reference to observable valuation measures for a pending or consummated transaction. The various unobservable inputs used to determine the Level III valuations may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurements as noted in the table above. |
FAIR VALUE OPTION
FAIR VALUE OPTION | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OPTION | FAIR VALUE OPTION The following table summarizes the financial instruments for which the fair value option has been elected: December 31, 2019 December 31, 2018 Assets Private Equity $ — $ 2,977 Credit 6,451,765 4,950,819 Investments of Consolidated CFEs 14,948,237 14,733,423 Real Assets 222,488 310,399 Equity Method - Other 1,934,555 1,792,190 Other Investments 395,637 235,012 Total $ 23,952,682 $ 22,024,820 Liabilities Debt Obligations of Consolidated CFEs $ 14,658,137 $ 13,958,554 Total $ 14,658,137 $ 13,958,554 The following table presents the net realized and unrealized gains (losses) on financial instruments for which the fair value option was elected for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 Net Realized Net Unrealized Total Assets Private Equity $ — $ 194 $ 194 Credit (67,279 ) (203,666 ) (270,945 ) Investments of Consolidated CFEs (57,230 ) 270,268 213,038 Real Assets 737 (2,038 ) (1,301 ) Equity Method - Other 17,373 157,291 174,664 Other Investments 2,652 (24,130 ) (21,478 ) Total $ (103,747 ) $ 197,919 $ 94,172 Liabilities Debt Obligations of Consolidated CFEs $ (2,368 ) $ (362,783 ) $ (365,151 ) Total $ (2,368 ) $ (362,783 ) $ (365,151 ) For the Year Ended December 31, 2018 Net Realized Net Unrealized Gains (Losses) Total Assets Private Equity $ (4,907 ) $ 5,355 $ 448 Credit (245,737 ) (148,150 ) (393,887 ) Investments of Consolidated CFEs (83,719 ) (452,331 ) (536,050 ) Real Assets 11,184 (11,446 ) (262 ) Equity Method - Other (150,225 ) 16,916 (133,309 ) Other Investments (13,838 ) (19,468 ) (33,306 ) Total $ (487,242 ) $ (609,124 ) $ (1,096,366 ) Liabilities Debt Obligations of Consolidated CFEs $ 4,371 $ 521,101 $ 525,472 Total $ 4,371 $ 521,101 $ 525,472 For the Year Ended December 31, 2017 Net Realized Net Unrealized Total Assets Private Equity $ (1,386 ) $ 38,791 $ 37,405 Credit (464,512 ) 78,282 (386,230 ) Investments of Consolidated CFEs (97,129 ) 352 (96,777 ) Real Assets 13,112 44,136 57,248 Equity Method - Other 18,883 (2,635 ) 16,248 Other (32,217 ) 24,923 (7,294 ) Total $ (563,249 ) $ 183,849 $ (379,400 ) Liabilities Debt Obligations of Consolidated CFEs $ 83,146 $ 11,768 $ 94,914 Total $ 83,146 $ 11,768 $ 94,914 |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK | NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK For the years ended December 31, 2019 , 2018 , and 2017, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of Class A common stock were calculated as follows: For the Years Ended December 31, 2019 2018 2017 Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders $ 1,971,685 $ 1,097,699 $ 984,941 Excess of carrying value over consideration transferred on redemption of KFN 7.375% Series A LLC Preferred Shares — 3,102 — Net Income (Loss) Available to KKR & Co. Inc. Class A Common Stockholders $ 1,971,685 $ 1,100,801 $ 984,941 Basic Net Income (Loss) Per Share of Class A Common Stock Weighted Average Shares of Class A Common Stock Outstanding - Basic 545,096,999 514,102,571 468,282,642 Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Basic $ 3.62 $ 2.14 $ 2.10 Diluted Net Income (Loss) Per Share of Class A Common Stock Weighted Average Shares of Class A Common Stock Outstanding - Basic 545,096,999 514,102,571 468,282,642 Weighted Average Unvested Shares of Class A Common Stock and Other Exchangeable Securities 12,590,513 19,604,468 38,006,329 Weighted Average Shares of Class A Common Stock Outstanding - Diluted 557,687,512 533,707,039 506,288,971 Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted $ 3.54 $ 2.06 $ 1.95 Weighted Average Shares of Class A Common Stock Outstanding - Diluted primarily includes unvested equity awards that have been granted under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive Plan") and the KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan" and, together with the 2010 Equity Incentive Plan, the "Equity Incentive Plans"), as well as exchangeable equity securities issued in connection with the acquisition of Avoca. Vesting or exchanges of these equity interests dilute KKR & Co. Inc. and KKR Holdings pro rata in accordance with their respective ownership interests in the KKR Group Partnerships. For the years ended December 31, 2019 , 2018 , and 2017, KKR Holdings units have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted since the exchange of these units would not dilute KKR's respective ownership interests in the KKR Group Partnerships. For the Years Ended December 31, 2019 2018 2017 Weighted Average KKR Holdings Units 296,445,196 314,458,757 344,422,095 Additionally, for the years ended December 31, 2019 , 2018 and 2017, 5.0 million shares of KKR Class A common stock subject to a market price-based vesting condition were excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted since the vesting conditions have not been satisfied. See Note 12 "Equity Based Compensation." |
OTHER ASSETS AND ACCOUNTS PAYAB
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES Other Assets consist of the following: December 31, 2019 December 31, 2018 Unsettled Investment Sales (1) $ 86,033 $ 101,789 Receivables 26,893 27,258 Due from Broker (2) 65,154 396,512 Oil & Gas Assets, net (3) 215,243 225,256 Deferred Tax Assets, net 158,574 538,161 Interest Receivable 156,026 241,547 Fixed Assets, net (4) 633,025 451,206 Foreign Exchange Contracts and Options (5) 188,572 177,264 Goodwill (6) 83,500 83,500 Derivative Assets 23,139 40,995 Prepaid Taxes 84,462 69,165 Prepaid Expenses 14,596 23,551 Operating Lease Right of Use Assets (7) 121,101 — Deferred Financing Costs 12,374 13,871 Other 139,544 146,617 Total $ 2,008,236 $ 2,536,692 (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) Includes proved and unproved oil and natural gas properties under the successful efforts method of accounting, which is net of impairment write-downs, accumulated depreciation, depletion and amortization. Depreciation, depletion and amortization of $31.4 million , $22.3 million and $24.7 million for the years ended December 31, 2019 , 2018, and 2017, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. (4) Net of accumulated depreciation and amortization of $132.7 million and $113.5 million as of December 31, 2019 and 2018, respectively. Depreciation and amortization expense of $17.7 million , $15.0 million and $15.3 million for the years ended December 31, 2019 , 2018, and 2017, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. (5) 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 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments. (6) As of December 31, 2019 , the carrying value of goodwill is recorded and assessed for impairment at the reporting unit. (7) KKR’s 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. For the year ended December 31, 2019 , the operating lease cost was $48.0 million . Accounts Payable, Accrued Expenses and Other Liabilities consist of the following: December 31, 2019 December 31, 2018 Amounts Payable to Carry Pool (1) $ 1,448,879 $ 922,977 Unsettled Investment Purchases (2) 481,337 541,165 Securities Sold Short (3) 251,223 344,124 Derivative Liabilities 34,174 35,640 Accrued Compensation and Benefits 131,719 107,887 Interest Payable 234,165 212,969 Foreign Exchange Contracts and Options (4) 39,364 60,749 Accounts Payable and Accrued Expenses 118,454 130,554 Taxes Payable 32,682 24,453 Uncertain Tax Positions 65,716 66,775 Unfunded Revolver Commitments 75,842 52,066 Operating Lease Liabilities (5) 125,086 — Other Liabilities 58,922 244,631 Total $ 3,097,563 $ 2,743,990 (1) Represents the amount of carried interest payable to principals, professionals and other individuals with respect to KKR's active 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 3 "Net Gains (Losses) from Investment Activities" 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 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments. (5) KKR’s operating leases have remaining lease terms that range from approximately one year to 14 years, some of which include options to extend the leases for up to three years . As of December 31, 2019 , the weighted average remaining lease term and weighted average discount rate were 4.46 years and 2.53% , respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Consolidated VIEs KKR consolidates certain VIEs in which it is determined that KKR is the primary beneficiary as described in Note 2 "Summary of Significant Accounting Policies". The consolidated VIEs are predominately CFEs and certain investment funds sponsored by KKR. The primary purpose of these VIEs is to provide strategy specific investment opportunities to earn investment gains, current income or both in exchange for management and performance based fees or carried interest. KKR's investment strategies differ for these VIEs; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR does not provide performance guarantees and has no other financial obligation to provide funding to these consolidated VIEs, beyond amounts previously committed, if any. Unconsolidated VIEs KKR holds variable interests in certain VIEs which are not consolidated as it has been determined that KKR is not the primary beneficiary. VIEs that are not consolidated predominantly include certain investment funds sponsored by KKR. KKR's investment strategies differ by investment fund; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR's maximum exposure to loss as a result of its investments in the unconsolidated investment funds is the carrying value of such investments, including KKR's capital interest and any unrealized carried interest. Accordingly, disaggregation of KKR's involvement by type of unconsolidated investment fund would not provide more useful information. For these unconsolidated investment funds in which KKR is the sponsor, KKR may have an obligation as general partner to provide commitments to such investment funds. As of December 31, 2019 , KKR's commitments to these unconsolidated investment funds was $2.9 billion . KKR has not provided any financial support other than its obligated amount as of December 31, 2019 . As of December 31, 2019 and 2018, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has a variable interest is as follows: December 31, 2019 December 31, 2018 Investments $ 5,329,368 $ 3,610,502 Due from (to) Affiliates, net 439,374 410,489 Maximum Exposure to Loss $ 5,768,742 $ 4,020,991 |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS KKR enters into credit agreements and issues debt for its general operating and investment purposes. KKR consolidates and reports debt obligations of KKR Financial Holdings LLC ("KFN"), which are non-recourse to KKR beyond the assets of KFN. Certain of KKR's consolidated investment funds borrow to meet financing needs of their operating and investing activities. Fund financing facilities have been established for the benefit of certain investment funds. When an investment fund borrows from the facility in which it participates, the proceeds from the borrowings are limited for their intended use by the borrowing investment fund. KKR's obligations with respect to these financing arrangements are generally limited to KKR's pro rata equity interest in such investment funds. In certain other cases, KKR has majority-owned consolidated investment vehicles that make investments and purchase other assets with borrowings that are collateralized only by the investments and assets they own. In addition, consolidated CFE vehicles issue debt securities to third-party investors which are collateralized by assets held by the CFE vehicle. Debt securities issued by CFEs are supported solely by the assets held at the CFEs and are not collateralized by assets of any other KKR entity. CFEs also may have warehouse facilities with banks to provide liquidity to the CFE. The CFE's debt obligations are non-recourse to KKR beyond the assets of the CFE. KKR's borrowings consisted of the following: December 31, 2019 December 31, 2018 Financing Available Borrowing Outstanding Fair Value Financing Available Borrowing Outstanding Fair Value Revolving Credit Facilities: Corporate Credit Agreement $ 1,000,000 $ — $ — $ 1,000,000 $ — $ — KCM Credit Agreement 444,904 — — 451,338 — — KCM Short-Term Credit Agreement 750,000 — — 750,000 — — Notes Issued: KKR Issued 6.375% Notes Due 2020 (1) — — — — 498,975 523,500 (13) KKR Issued 3.750% Notes Due 2029 (2) — 493,962 533,505 (13) — — — KKR Issued 5.500% Notes Due 2043 (3) — 492,175 613,415 (13) — 491,836 508,615 (13) KKR Issued 5.125% Notes Due 2044 (4) — 991,106 1,186,670 (13) — 990,740 974,320 (13) KKR Issued 0.509% Notes Due 2023 (5) — 228,280 228,026 (13) — 226,895 227,298 (13) KKR Issued 0.764% Notes Due 2025 (6) — 45,255 45,856 (13) — 44,923 45,161 (13) KKR Issued 1.595% Notes Due 2038 (7) — 93,325 98,524 (13) — 92,817 94,568 (13) KKR Issued 1.625% Notes Due 2029 (8) — 718,478 758,903 (14) — — — KFN Issued 5.500% Notes Due 2032 (9) — 494,054 504,807 — 493,568 496,359 KFN Issued 5.200% Notes Due 2033 (10) — 118,411 117,834 — 118,291 115,582 KFN Issued 5.400% Notes Due 2033 (11) — 68,774 70,059 — 68,683 68,780 KFN Issued Junior Subordinated Notes (12) — 233,473 185,485 — 232,142 203,135 2,194,904 3,977,293 4,343,084 2,201,338 3,258,870 3,257,318 Other Debt Obligations 3,865,495 23,035,991 23,035,991 3,840,877 19,082,322 19,082,322 $ 6,060,399 $ 27,013,284 $ 27,379,075 $ 6,042,215 $ 22,341,192 $ 22,339,640 (1) $500 million aggregate principal amount of 6.375% senior notes of KKR due 2020. These senior notes were redeemed in full in July 2019. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $0.7 million as of December 31, 2018. (2) $500 million aggregate principal amount of 3.750% senior notes of KKR due 2029. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.7 million as of December 31, 2019 . (3) $500 million aggregate principal amount of 5.500% senior notes of KKR due 2043. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $3.4 million and $3.6 million as of December 31, 2019 and 2018 , respectively. (4) $1.0 billion aggregate principal amount of 5.125% senior notes of KKR due 2044. Borrowing outstanding is presented net of (i) unamortized note discount (net of premium) and (ii) unamortized debt issuance costs of $7.7 million and $8.0 million as of December 31, 2019 and 2018 , respectively. (5) ¥25 billion (or $229.3 million ) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.0 million and $1.3 million as of December 31, 2019 and 2018 , respectively. These senior notes are denominated in Japanese Yen ("JPY"). (6) ¥5.0 billion (or $45.9 million ) aggregate principal amount of 0.764% senior notes of KKR due 2025. Borrowing outstanding is presented net of unamortized debt issuance costs of $0.6 million and $0.7 million as of December 31, 2019 and 2018 , respectively. These senior notes are denominated in JPY. (7) ¥10.3 billion (or $94.5 million ) aggregate principal amount of 1.595% senior notes of KKR due 2038. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.1 million and $1.2 million as of December 31, 2019 and 2018 , respectively. These senior notes are denominated in JPY. (8) €650 million (or $727.9 million ) aggregate principal amount of 1.625% senior notes of KKR due 2029. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $6.3 million as of December 31, 2019 . These senior notes are denominated in euro. (9) KKR consolidates KFN and thus reports KFN's outstanding $500.0 million aggregate principal amount of 5.500% senior notes due 2032. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.0 million and $4.4 million as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (10) KKR consolidates KFN and thus reports KFN's outstanding $120.0 million aggregate principal amount of 5.200% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.6 million and $1.7 million as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (11) KKR consolidates KFN and thus reports KFN's outstanding $70.0 million aggregate principal amount of 5.400% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.3 million as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (12) KKR consolidates KFN and thus reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 4.4% and 5.0% and the weighted average years to maturity is 16.8 years and 17.8 years as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (13) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes. (14) The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly listed. Revolving Credit Facilities Corporate Credit Agreement On December 7, 2018, Kohlberg Kravis Roberts & Co. L.P. and the KKR Group Partnerships, as borrowers, entered into and closed on an Amended and Restated Credit Agreement (the "Corporate Credit Agreement") by and among the borrowers, the other borrowers from time to time party thereto, the guarantors from time to time party thereto, the lending institutions from time to time party thereto and HSBC Bank USA, National Association, as Administrative Agent, which amended and restated in its entirety the credit agreement dated as of October 22, 2014. The Corporate Credit Agreement provides the borrowers with a senior unsecured multicurrency revolving credit facility in an aggregate principal amount of $1.0 billion , as of the closing date, with the option to request an increase in the facility amount of up to an additional $500 million , for an aggregate principal amount of $1.5 billion , subject to certain conditions, including obtaining new or increased commitments from new or existing lenders. The credit facility is a five -year facility, scheduled to mature on December 7, 2023, with the borrowers’ option to extend the maturity date, subject to the consent of the applicable lenders, and the borrowers may prepay, terminate or reduce the commitments under the credit facility at any time without penalty. Borrowings under the credit facility are available for general corporate purposes. Interest on borrowings under the credit facility will be based on either London Interbank Offered Rate (LIBOR) or Alternate Base Rate, with the applicable margin per annum based on a corporate ratings-based pricing grid ranging from 56.5 basis points to 110 basis points (for LIBOR borrowings). The borrowers have agreed to pay a facility fee on the total commitments (whether used or unused) at a rate per annum also based on a corporate ratings-based pricing grid ranging from 6 basis points to 15 basis points. Borrowings under the credit facility are guaranteed by (i) KKR & Co. Inc., (ii) any other entity (other than the borrowers) that guarantees the 2020 Senior Notes, the 2043 Senior Notes or the 2044 Senior Notes (each as defined below), and (iii) any other entity (other than the borrowers) that guarantees the JPY Notes (as defined below). KCM Credit Agreement KKR Capital Markets maintains a revolving credit agreement with a major financial institution (the "KCM Credit Agreement") for use in KKR's capital markets business, which provides for revolving borrowings of up to $500 million with a $500 million sublimit for letters of credit. On March 30, 2016, the KCM Credit Agreement was amended and restated to extend the maturity date from March 30, 2017 to March 30, 2021. If a borrowing is made on the KCM Credit Agreement, the interest rate will vary depending on the type of drawdown requested. If the loan is a Eurocurrency loan, it will be based on LIBOR plus the applicable margin which ranges initially between 1.25% and 2.50% , depending on the amount and nature of the loan. If the loan is an ABR Loan, it will be based on the prime rate plus the applicable margin which ranges initially between 0.25% and 1.50% depending on the amount and nature of the loan. Borrowings under this facility may only be used for KKR's capital markets business, and its only obligors are entities involved in KKR's capital markets business, and its liabilities are non-recourse to other parts of KKR's business. A facility fee ranging between 0.20% and 0.40% is also payable on the entire facility amount. As of December 31, 2019 and 2018, no amounts were outstanding under the KCM Credit Agreement, however various letters of credit were outstanding in the amount of $55.1 million and $48.7 million , respectively, which reduce the overall borrowing capacity of the KCM Credit Agreement. KCM Short-Term Credit Agreement On June 27, 2019, KKR Capital Markets Holdings L.P. and certain other capital market subsidiaries of KKR & Co. Inc. (collectively, the “KCM Borrowers”) entered into a 364 -day revolving credit agreement (the “KCM Revolver Agreement”) with the same financial institution that provides the KCM Credit Agreement, as administrative agent. The KCM Revolver Agreement provides for revolving borrowings of up to $750 million , expires on June 26, 2020, and ranks pari passu with the existing $500 million credit facility provided by them for KKR's capital markets business. The prior 364 -day revolving credit agreement, dated as of June 28, 2018, expired according to its terms on June 27, 2019. Borrowings under the KCM Revolver Agreement may only be used to facilitate the settlement of debt transactions syndicated by KKR’s capital markets business. Obligations under the KCM Revolver Agreement are limited to the KCM Borrowers, which are solely entities involved in KKR’s capital markets business, and liabilities under the KCM Revolver Agreement are non-recourse to other parts of KKR. If a borrowing is made under the KCM Revolver Agreement, the interest rate will vary depending on the type of drawdown requested. If the borrowing is a Eurocurrency loan, it will be based on a LIBOR rate plus an applicable margin ranging between 1.25% and 2.50% , depending on the duration of the loan. If the borrowing is an ABR loan, it will be based on a base rate plus an applicable margin ranging between 0.25% and 1.50% , depending on the duration of the loan. The KCM Revolver Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including a financial covenant providing for a maximum debt to equity ratio for the KCM Borrowers. The KCM Borrowers’ obligations under the KCM Revolver Agreement are secured by certain assets of the KCM Borrowers, including a pledge of equity interests of certain subsidiaries of the KCM Borrowers. Notes Issuances and Redemptions KKR Redeemed 6.375% Senior Notes Due 2020 On July 31, 2019, KKR Group Finance Co. LLC, an indirect subsidiary of KKR & Co. Inc., redeemed in full its $500 million aggregate principal amount of 6.375% Senior Notes due 2020 (the “2020 Senior Notes”) in accordance with the optional redemption provisions set forth in the indenture governing the 2020 Senior Notes. In connection with this redemption, KKR paid a make-whole premium of $22.8 million . This make-whole premium payment was recorded as a realized loss within Net Gains (Losses) from Investment Activities on the consolidated statements of operations. KKR Issued 5.500% Notes Due 2043 On February 1, 2013, KKR Group Finance Co. II LLC, an indirect subsidiary of KKR & Co. Inc., issued $500 million aggregate principal amount of 5.50% Senior Notes due 2043 (the "2043 Senior Notes"). The 2043 Senior Notes are unsecured and unsubordinated obligations of KKR Group Finance Co. II LLC and will mature on February 1, 2043, unless earlier redeemed or repurchased. The 2043 Senior Notes are fully and unconditionally guaranteed, jointly and severally, by KKR & Co. Inc. and the KKR Group Partnerships. The guarantees are unsecured and unsubordinated obligations of the guarantors. The 2043 Senior Notes bear interest at a rate of 5.50% per annum, accruing from February 1, 2013. Interest is payable semi‑annually in arrears on February 1 and August 1 of each year. The indenture, as supplemented by a first supplemental indenture, relating to the 2043 Senior Notes includes covenants, including limitations on the issuer's and the guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indenture, as supplemented, also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding 2043 Senior Notes may declare the 2043 Senior Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the 2043 Senior Notes and any accrued and unpaid interest on the 2043 Senior Notes automatically becomes due and payable. All or a portion of the 2043 Senior Notes may be redeemed at the issuer's option in whole or in part, at any time, and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the 2043 Senior Notes. If a change of control repurchase event occurs, the 2043 Senior Notes are subject to repurchase by the issuer at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2043 Senior Notes repurchased plus any accrued and unpaid interest on the 2043 Senior Notes repurchased to, but not including, the date of repurchase. KKR Issued 5.125% Notes Due 2044 On May 29, 2014, KKR Group Finance Co. III LLC, an indirect subsidiary of KKR & Co. Inc., issued $500 million aggregate principal amount of 5.125% Senior Notes due 2044 (the "2044 Senior Notes"). The 2044 Senior Notes are unsecured and unsubordinated obligations of the issuer and will mature on June 1, 2044, unless earlier redeemed or repurchased. The 2044 Senior Notes are fully and unconditionally guaranteed, jointly and severally, by KKR & Co. Inc. and the KKR Group Partnerships. The guarantees are unsecured and unsubordinated obligations of the guarantors. The 2044 Senior Notes bear interest at a rate of 5.125% per annum, accruing from May 29, 2014. Interest is payable semi‑annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2014. On March 18, 2015, KKR Group Finance Co. III LLC issued an additional $500 million aggregate principal amount of its 2044 Senior Notes. The 2044 Notes issued in March 2015 form a single series with the 2044 Notes issued in May 2014, and the terms are identical to each other except for the issue date, issue price, the first payment date, June 1, 2015, and the date from which interest begins to accrue for the 2044 Notes issued in March 2015. The indenture, as supplemented by a first supplemental indenture, relating to the 2044 Senior Notes includes covenants, including limitations on the issuer's and the guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indenture, as supplemented, also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding 2044 Senior Notes may declare the 2044 Senior Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the 2044 Senior Notes and any accrued and unpaid interest on the 2044 Senior Notes automatically becomes due and payable. All or a portion of the 2044 Senior Notes may be redeemed at the issuer's option in whole or in part, at any time, and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the 2044 Senior Notes. If a change of control repurchase event occurs, the 2044 Senior Notes are subject to repurchase by the issuer at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2044 Senior Notes repurchased plus any accrued and unpaid interest on the 2044 Senior Notes repurchased to, but not including, the date of repurchase. KKR Issued 0.509% Senior Notes Due 2023, 0.764% Senior Notes Due 2025, and 1.595% Senior Notes Due 2038 On March 23, 2018, KKR Group Finance Co. IV LLC, an indirect subsidiary of KKR & Co. Inc., issued ¥40.3 billion aggregate principal amount of its (i) ¥25.0 billion 0.509% Senior Notes due 2023 (the "2023 Notes"), (ii) ¥5.0 billion 0.764% Senior Notes due 2025 (the "2025 Notes") and (iii) ¥10.3 billion 1.595% Senior Notes due 2038 (the "2038 Notes" and, together with the 2023 Notes and the 2025 Notes, the "JPY Notes"). The JPY Notes are fully and unconditionally guaranteed, jointly and severally, by KKR & Co. Inc. and the KKR Group Partnerships. The guarantees are unsecured and unsubordinated obligations of the Guarantors. The 2023 Notes bear interest at a rate of 0.509% per annum and will mature on March 23, 2023 unless earlier redeemed. The 2025 Notes bear interest at a rate of 0.764% per annum and will mature on March 21, 2025 unless earlier redeemed. The 2038 Notes bear interest at a rate of 1.595% per annum and will mature on March 23, 2038 unless earlier redeemed. Interest on the JPY Notes accrues from March 23, 2018 and is payable semiannually in arrears on March 23 and September 23 of each year, commencing on September 23, 2018 and ending on the applicable maturity date. The JPY Notes are unsecured and unsubordinated obligations of the issuer. The indenture, as supplemented by the first supplemental indenture, related to the JPY Notes includes covenants, including limitations on the issuer's and the guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indenture, as supplemented, also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding JPY Notes may declare the JPY Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the JPY Notes and any accrued and unpaid interest on the JPY Notes automatically become due and payable. The issuer may redeem the JPY Notes at its option, in whole but not in part, at a redemption price equal to 100% of the principal amount of the JPY Notes to be redeemed, together with interest accrued and unpaid to, but excluding, the date fixed for redemption, at any time, in the event of certain changes affecting taxation as provided in the JPY Indenture. KKR Issued 1.625% Senior Notes Due 2029 On May 22, 2019, KKR Group Finance Co. V LLC, an indirect subsidiary of KKR & Co. Inc., issued €650 million aggregate principal amount of its 1.625% Senior Notes due 2029 (the "2029 Senior Notes"). The 2029 Senior Notes are guaranteed by KKR & Co. Inc. and the KKR Group Partnership. The 2029 Senior Notes bear interest at a rate of 1.625% per annum and will mature on May 22, 2029, unless earlier redeemed. Interest on the 2029 Senior Notes accrues from May 22, 2019 and is payable annually in arrears on May 22 of each year, commencing on May 22, 2020 and ending on the applicable maturity date. The 2029 Senior Notes are unsecured and unsubordinated obligations of the issuer. The 2029 Senior Notes are fully and unconditionally guaranteed, jointly and severally, by each of the Guarantors. The guarantees are unsecured and unsubordinated obligations of the Guarantors. The indenture, as supplemented by the first supplemental indenture, related to the 2029 Senior Notes includes covenants, including limitations on the issuer's and the Guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indenture, as supplemented, also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding 2029 Senior Notes may declare the 2029 Senior Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the 2029 Senior Notes and any accrued and unpaid interest on the 2029 Senior Notes automatically become due and payable. Prior to February 22, 2029, the issuer may redeem the 2029 Senior Notes at its option, in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the 2029 Senior Notes. On or after February 22, 2029, the issuer may redeem the 2029 Senior Notes at its option, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the 2029 Senior Notes to be redeemed, together with interest accrued and unpaid to, but excluding, the date of redemption. If a change of control repurchase event occurs, the 2029 Senior Notes are subject to repurchase by the issuer at a repurchase price in cash equal to 101% of the aggregate principle amount of the 2029 Senior Notes repurchased plus any accrued and unpaid interest on the 2029 Senior Notes repurchased to, but not including, the date of repurchase. In the event of certain changes affecting taxation as provided in the 2029 Senior Notes, the issuer may redeem the 2029 Senior Notes in whole but not in part, at any time at 100% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. KKR Issued 3.750% Senior Notes Due 2029 On July 1, 2019, KKR Group Finance Co. VI LLC, an indirect subsidiary of KKR & Co. Inc., issued $500 million aggregate principal amount of its 3.750% Senior Notes due 2029 (the "KKR 3.750% Senior Notes"). The KKR 3.750% Senior Notes are guaranteed by the Guarantors. The KKR 3.750% Senior Notes bear interest at a rate of 3.750% per annum and will mature on July 1, 2029, unless earlier redeemed. Interest on the KKR 3.750% Senior Notes accrues from July 1, 2019 and is payable semi-annually in arrears on January 1 and July 1 of each year, commencing on January 1, 2020 and ending on the maturity date. The KKR 3.750% Senior Notes are unsecured and unsubordinated obligations of the issuer. The KKR 3.750% Senior Notes are fully and unconditionally guaranteed, jointly and severally, by each of the Guarantors. The guarantees are unsecured and unsubordinated obligations of the Guarantors. The Indenture includes covenants, including limitations on the issuer's and the Guarantors’ ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or convey all or substantially all of their assets. The Indenture also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding KKR 3.750% Senior Notes may declare the KKR 3.750% Senior Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the KKR 3.750% Senior Notes and any accrued and unpaid interest on the KKR 3.750% Senior Notes automatically become due and payable. Prior to April 1, 2029, all or a portion of the KKR 3.750% Senior Notes may be redeemed at the issuer’s option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the KKR 3.750% Senior Notes. On or after April 1, 2029, the issuer may redeem the KKR 3.750% Senior Notes at its option, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the KKR 3.750% Senior Notes to be redeemed, together with interest accrued and unpaid to, but excluding, the date of redemption. If a change of control repurchase event occurs, the KKR 3.750% Senior Notes are subject to repurchase by the issuer at a repurchase price in cash equal to 101% of the aggregate principal amount of the KKR 3.750% Senior Notes repurchased plus any accrued and unpaid interest on the KKR 3.750% Senior Notes repurchased to, but not including, the date of repurchase. KFN Issued 5.500% Notes Due 2032 On March 30, 2017, KFN issued $375.0 million aggregate principal amount of 5.500% Senior Notes due 2032 (the "KFN 2032 Senior Notes"), resulting in net proceeds to KFN of $368.6 million . The KFN 2032 Senior Notes are unsecured and unsubordinated obligations of KFN and will mature on March 30, 2032, unless earlier redeemed or repurchased. The KFN 2032 Senior Notes bear interest at a rate of 5.500% per annum, accruing from March 30, 2017. Interest is payable semi-annually in arrears on March 30 and September 30 of each year. The indenture, as supplemented by a first supplemental indenture, relating to the KFN 2032 Senior Notes includes covenants, including (i) limitations on KFN's ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of certain of its subsidiaries or merge, consolidate or sell, transfer or lease assets, (ii) requirements that KFN maintain a minimum Consolidated Net Worth (as defined in the indenture) and (iii) requirements that KFN maintain a minimum Cash and Liquid Investments (as defined in the indenture). The indenture, as supplemented, also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding KFN 2032 Senior Notes may declare the KFN 2032 Senior Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the KFN 2032 Senior Notes and any accrued and unpaid interest on the KFN 2032 Senior Notes automatically becomes due and payable. Beginning on March 30, 2022, KFN may redeem the KFN 2032 Senior Notes in whole, but not in part, at KFN's option, at a redemption price equal to 100% of the outstanding principal amount plus accrued and unpaid interest to, but excluding, the date of redemption. At any time prior to March 30, 2022, KFN may redeem the KFN 2032 Senior Notes in whole, but not in part, at KFN's option at any time, at a "make-whole" redemption price set forth in the KFN 2032 Senior Notes. If a change of control occurs, the KFN 2032 Senior Notes are subject to repurchase by the issuer at a repurchase price in cash equal to 101% of the aggregate principal amount of the KFN 2032 Senior Notes repurchased plus any accrued and unpaid interest on the KFN 2032 Senior Notes repurchased to, but not including, the date of repurchase. On November 17, 2017, KFN issued an additional $125.0 million aggregate principal amount of the KFN 2032 Senior Notes, resulting in the total outstanding aggregate principal amount of $500.0 million . The additional KFN 2032 Senior Notes, which were issued under the indenture related to the existing KFN 2032 Senior Notes as supplemented by a second supplemental indenture, constitute a further issuance of and are part of the same series as the KFN 2032 Senior Notes first issued on March 30, 2017. KFN Issued 5.200% Notes Due 2033 On February 12, 2018, KFN issued $120.0 million aggregate principal amount of 5.200% Senior Notes due 2033 (the "KFN 2033 Senior Notes"). The KFN 2033 Senior Notes are unsecured and unsubordinated obligations of KFN, which do not provide for recourse to KKR beyond the assets of KFN. The KFN 2033 Senior Notes are not guaranteed by KKR & Co. Inc. or the KKR Group Partnerships. The KFN 2033 Senior Notes will mature on February 12, 2033, unless earlier redeemed or repurchased. The KFN 2033 Senior Notes bear interest at a rate of 5.200% per annum, accruing from February 12, 2018. Interest is payable semi-annually in arrears on February 12 and August 12 of each year. The indenture, as supplemented by a first supplemental indenture, relating to the KFN 2033 Senior Notes includes covenants, including (i) limitations on KFN's ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of certain of its subsidiaries or merge, consolidate or sell, transfer or lease assets, (ii) requirements that KFN maintain a minimum Consolidated Net Worth (as defined in the indenture) and (iii) requirements that KFN maintain a minimum Cash and Liquid Investments (as defined in the indenture). The indenture, as supplemented, also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding KFN 2033 Senior Notes may declare the KFN 2033 Senior Notes immediately due and payable upon the occurrence and during the continuance of any |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision (benefit) for income taxes consists of the following: For the Years Ended December 31, 2019 2018 2017 Current Federal Income Tax $ 56,046 $ 105,245 $ (34,611 ) State and Local Income Tax 10,925 16,997 5,229 Foreign Income Tax (1) 38,238 41,716 79,371 Subtotal 105,209 163,958 49,989 Deferred Federal Income Tax 428,110 (300,536 ) 178,449 State and Local Income Tax 49,148 (52,240 ) (424 ) Foreign Income Tax (1) (53,717 ) (5,280 ) (3,688 ) Subtotal 423,541 (358,056 ) 174,337 Total Income Taxes $ 528,750 $ (194,098 ) $ 224,326 (1) The foreign income tax provision was calculated on $126.0 million , $141.0 million , and $171.6 million of pre-tax income generated in foreign jurisdictions in the years 2019, 2018, and 2017, respectively. KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income. In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions. These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes. Prior to the Conversion on July 1, 2018, KKR & Co. L.P.’s investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all income earned by KKR & Co. Inc. is subject to U.S. corporate income taxes, which we believe will result in an overall higher income tax expense (or benefit) when compared to periods prior to the Conversion. The Conversion resulted in KKR obtaining a partial step-up in the tax basis of certain assets that will be recovered as those assets are sold or the basis is amortized. KKR's overall tax provision is based on, among other things, the amount of such partial step-up in tax basis that is derived from an analysis of the basis of its former unitholders in their ownership of KKR common units at June 30, 2018. On the date of the Conversion, based on the information available to KKR at that time, KKR recorded an estimated net tax benefit and estimated net deferred tax asset of $257.1 million relating to this partial step-up in tax basis. Upon analysis of the basis of KKR's former unitholders in their ownership of KKR common units at June 30, 2018, based on the additional information made available to KKR after December 31, 2018, the final determination of the amount of partial step-up in tax basis resulted in an additional tax benefit of approximately $45.0 million during 2019. The following table reconciles the U.S. Federal Statutory Tax Rate to the Effective Income Tax Rate: For the Years Ended December 31, 2019 2018 2017 Statutory U.S. Federal Income Tax Rate 21.00 % 21.00 % 35.00 % Income not attributable to KKR & Co. Inc. (1) (10.57 )% (20.13 )% (38.64 )% Foreign Income Taxes (0.28 )% 1.66 % 2.62 % State and Local Income Taxes 0.85 % (0.16 )% 0.05 % Compensation Charges Borne by KKR Holdings 2.75 % 1.69 % 6.29 % Conversion Benefit (0.90 )% (11.19 )% — % Change in Valuation Allowance — % (0.53 )% — % Impact of the 2017 Tax Act — % — % 3.52 % Other (2.62 )% (0.94 )% (0.78 )% Effective Income Tax Rate 10.23 % (8.60 )% 8.06 % (1) Represents primarily income attributable to (i) redeemable noncontrolling interests for all periods and (ii) noncontrolling interests for all periods. This item also includes investment income of certain entities and net carried interest of certain general partners of KKR investment funds that were not subject to U.S. federal income taxes prior to the Conversion. Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences is as follows: December 31, 2019 December 31, 2018 Deferred Tax Assets Fund Management Fee Credits & Refunds $ 65,168 $ 60,740 Equity Based Compensation 28,731 21,949 KKR Holdings Unit Exchanges (1) 152,759 127,275 Depreciation and Amortization (2) 300,851 293,481 Operating Lease Deferred Liability 19,152 — Investment Basis Differences / Net Unrealized Gains & Losses (2) — 16,613 Net Operating Loss Carryforwards 13,381 3,607 Other 11,732 14,496 Total Deferred Tax Assets before Valuation Allowance 591,774 538,161 Valuation Allowance — — Total Deferred Tax Assets 591,774 538,161 Deferred Tax Liabilities Investment Basis Differences / Net Unrealized Gains & Losses (2) 414,048 — Operating Lease Right-of-Use Asset 19,152 — Total Deferred Tax Liabilities 433,200 — Total Deferred Taxes, Net $ 158,574 $ 538,161 (1) In connection with exchanges of KKR Holdings units into Class A common stock of KKR & Co. Inc., KKR records a deferred tax asset associated with an increase in KKR & Co. Inc.'s share of the tax basis of the tangible and intangible assets of the KKR Group Partnerships. This amount is offset by an adjustment to record amounts due to KKR Holdings and principals under the tax receivable agreement, which is included within Due to Affiliates in the consolidated statements of financial condition. The net impact of these adjustments was recorded as an adjustment to equity at the time of the exchanges. (2) This deferred tax item includes a portion of the tax benefit KKR recognized as a result of the step-up in tax basis generated by the Conversion. Future realization of the above deferred tax assets is dependent on KKR generating sufficient taxable income within the period of time that the tax benefits are expected to reverse. KKR considers projections of taxable income in evaluating its ability to utilize those deferred tax assets. In projecting its taxable income, KKR begins with historical results and incorporates assumptions concerning the amount and timing of future pretax operating income. Those assumptions require significant judgment and are consistent with the plans and estimates that KKR uses to manage its business. KKR has determined that it is more likely than not that all deferred tax assets will be realized and that a valuation allowance is not needed as of December 31, 2019 and 2018. As of December 31, 2019, KKR has a cumulative state and local NOL carryforward of $162.2 million that will begin to expire in 2036. KKR has elected to treat taxes paid in foreign jurisdictions as a deduction in lieu of a Foreign Tax Credit (“FTC”), because of U.S. federal limitations on FTC utilization. Tax Contingencies KKR files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, KKR is subject to examination by U.S. federal and certain state, local and foreign tax regulators. As of December 31, 2019, tax returns of KKR and its predecessor entities for the years 2016 through 2018 for U.S. federal purposes and 2011 through 2018 for state and local tax purposes are open under general statute of limitations provisions and therefore subject to examination. At December 31, 2019, 2018 and 2017, KKR's unrecognized tax benefits relating to uncertain tax positions, excluding related interest and penalties, consisted of the following: For the Years Ended December 31, 2019 2018 2017 Unrecognized Tax Benefits, beginning of period $ 53,598 $ 48,170 $ 43,996 Gross increases in tax positions in prior periods — — — Gross decreases in tax positions in prior periods (2,443 ) — — Gross increases in tax positions in current period 4,107 5,542 4,406 Lapse of statute of limitations (1,890 ) (114 ) (232 ) Unrecognized Tax Benefits, end of period $ 53,372 $ 53,598 $ 48,170 If the above tax benefits were recognized it would reduce the effective income tax rate. KKR believes that there will not be a significant increase or decrease to the tax positions within 12 months of the reporting date. The unrecognized tax benefits are recorded in Accounts Payable, Accrued Expenses and Other Liabilities. KKR recognizes interest and penalties accrued related to unrecognized tax benefits as income tax expense. Related to the unrecognized tax benefits, KKR had a net reversal of accrued penalties of $(0.4) million and interest of $(0.4) million during 2019 and in total, as of December 31, 2019, recognized a liability for penalties of $2.2 million and interest of $10.2 million . During 2018, penalties of $0.3 million and interest of $2.6 million were accrued and in total, as of December 31, 2018, recognized a liability for penalties of $2.6 million and interest of $10.6 million . |
EQUITY BASED COMPENSATION
EQUITY BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY BASED COMPENSATION | EQUITY BASED COMPENSATION The following table summarizes the expense associated with equity-based compensation for the years ended December 31, 2019 , 2018 and 2017, respectively. For the Years Ended December 31, 2019 2018 2017 Equity Incentive Plans $ 207,789 $ 242,811 $ 204,308 KKR Holdings Principal Awards 91,123 104,625 143,204 Total (1) $ 298,912 $ 347,436 $ 347,512 (1) Includes $1.4 million , $11.7 million and $11.2 million of equity based compensation for the years ended December 31, 2019 , 2018, and 2017 respectively, related to employees of equity method investees. Such amounts are included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Equity Incentive Plans On March 29, 2019, the 2019 Equity Incentive Plan became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR will not make any further grants under the 2010 Equity Incentive Plan, and the 2019 Equity Incentive Plan became KKR's only plan for providing new equity-based awards. Outstanding awards under the 2010 Equity Incentive Plan will remain outstanding, unchanged and subject to the terms of the 2010 Equity Incentive Plan and their respective equity award agreements, until the vesting, expiration or lapse of such awards in accordance with their terms. There are no significant differences in the expense recognition between the 2010 Equity Incentive Plan and the 2019 Equity Incentive Plan. Under the 2019 Equity Incentive Plan, KKR is permitted to grant equity awards representing ownership interests in KKR & Co. Inc. Class A common stock. The total number of shares of Class A common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15% of the aggregate number of the shares of Class A common stock and KKR Group Partnership Units (excluding KKR Group Partnership Units held by KKR & Co. Inc. or its wholly-owned subsidiaries), subject to annual adjustment. Vested awards under the Equity Incentive Plans dilute KKR & Co. Inc. common stockholders and KKR Holdings pro rata in accordance with their respective percentage interests in the KKR Group Partnerships. Equity awards have been granted under the Equity Incentive Plans and are generally subject to service-based vesting, typically over a three to five year period from the date of grant. In certain cases, these awards are subject to transfer restrictions and/or minimum retained ownership requirements. The transfer restriction period, if applicable, lasts for (i) one year with respect to one-half of the interests vesting on any vesting date and (ii) two years with respect to the other one-half of the interests vesting on such vesting date. While providing services to KKR, if applicable, certain of these awards are also subject to minimum retained ownership rules requiring the award recipient to continuously hold shares of Class A common stock equivalents equal to at least 15% of their cumulatively vested awards that have the minimum retained ownership requirement. Expense associated with the vesting of these awards is based on the closing price of the KKR & Co. Inc. Class A common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested shares. The following table presents information regarding the discount for the lack of participation rights in the expected dividends by grant date: Date of Grant Discount per share (1) January 1, 2016 to December 31, 2016 $ 0.64 January 1, 2017 to December 31, 2017 $ 0.68 January 1, 2018 to June 30, 2018 $ 0.68 July 1, 2018 to December 31, 2019 $ 0.50 (1) Represents the annual discount for the lack of participation rights on expected dividends. The total discount on any given tranche of unvested shares is calculated as the discount per share multiplied by the number of years in the applicable vesting period. Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based upon expected turnover by class of recipient. Market Condition Awards On November 2, 2017, KKR's Co-Presidents and Co-Chief Operating Officers were each granted equity awards representing 2.5 million shares of KKR Class A common stock subject to a market price-based vesting condition ("Market Condition Awards"). These awards were granted under the 2010 Equity Incentive Plan. All of such awards will vest upon the market price of KKR Class A common stock reaching and maintaining a closing market price of $40 per share for 10 consecutive trading days on or prior to December 31, 2022, subject to the employee's continued service to the time of such vesting. If the $40 price target is not achieved by the close of business on December 31, 2022, the unvested Market Condition Awards will be automatically canceled and forfeited. These Market Condition Awards are subject to additional transfer restrictions and minimum retained ownership requirements after vesting. Due to the existence of the market condition, the vesting period for the Market Condition Awards is not explicit, and as such, compensation expense will be recognized over the period derived from the valuation technique used to estimate the grant-date fair value of the award (the "Derived Vesting Period"). The fair value of the Market Condition Awards at the date of grant was $4.02 per share based on a Monte-Carlo simulation valuation model due to the existence of the market condition described above. Below is a summary of the significant assumptions used to estimate the grant date fair value of the Market Condition Awards: Closing KKR share price as of valuation date $19.90 Risk Free Rate 2.02 % Volatility 25.00 % Dividend Yield 3.42 % Expected Cost of Equity 11.02 % In addition, the grant date fair value assumes that holders of the Market Condition Awards will not participate in dividends until such awards have met their vesting requirements. Compensation expense is recognized over the Derived Vesting Period, which was estimated to be 3 years from the date of grant, on a straight-line basis. As of December 31, 2019 , there was approximately $5.6 million of estimated unrecognized compensation expense related to unvested Market Condition Awards and such awards did not meet their market-price based vesting condition. As of December 31, 2019 , there was approximately $295.9 million of total estimated unrecognized expense related to unvested awards, including Market Condition Awards. That cost is expected to be recognized as follows: Year Unrecognized Expense 2020 $ 162.8 2021 86.4 2022 36.9 2023 7.8 2024 1.7 2025 0.3 Total $ 295.9 A summary of the status of unvested awards granted under the Equity Incentive Plans, excluding Market Condition Awards as described above, from January 1, 2019 through December 31, 2019 is presented below: Shares Weighted Average Grant Date Fair Value Balance, January 1, 2019 33,400,183 $ 16.23 Granted 4,742,836 25.98 Vested (13,816,158 ) 15.79 Forfeitures (1,629,216 ) 17.23 Balance, December 31, 2019 22,697,645 $ 18.46 The weighted average remaining vesting period over which unvested awards are expected to vest is 1.2 years . A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plans is presented below: Vesting Date Shares April 1, 2020 6,897,566 October 1, 2020 4,161,077 April 1, 2021 4,765,284 October 1, 2021 2,611,618 April 1, 2022 1,665,568 October 1, 2022 1,309,649 April 1, 2023 841,805 October 1, 2023 130,649 April 1, 2024 182,585 October 1, 2024 5,133 April 1, 2025 126,711 22,697,645 KKR Holdings Awards KKR Holdings units are exchangeable for KKR Group Partnership Units and allow for their exchange into Class A common stock of KKR & Co. Inc. on a one -for-one basis. As of December 31, 2019 and 2018, KKR Holdings owned approximately 34.1% or 290,381,345 units and 35.9% or 299,081,239 units, respectively, of outstanding KKR Group Partnership Units. Awards for KKR Holdings units that have been granted are generally subject to service based vesting, typically over a three to five year period from the date of grant. They are also generally subject to transfer restrictions which last for (i) one year with respect to one -half of the interests vesting on any vesting date and (ii) two years with respect to the other one-half of the interests vesting on such vesting date. While providing services to KKR, the recipients are also subject to minimum retained ownership rules requiring them to continuously hold 25% of their vested interests. Upon separation from KKR, award recipients are subject to the terms of a confidentiality and restrictive covenants agreement that would require the forfeiture of certain vested and unvested units should the terms of the agreement be violated. Holders of KKR Holdings units are not entitled to participate in distributions made on KKR Group Partnership Units underlying their KKR Holdings units until such units are vested. All of the KKR Holdings units (except for less than 1.0% of the outstanding KKR Holdings units) have been granted as of December 31, 2019 , and certain Holdings units remain subject to vesting. The fair value of awards granted out of KKR Holdings is generally based on the closing price of KKR & Co. Inc. Class A common stock on the date of grant discounted for the lack of participation rights in the expected distributions on unvested units. KKR determined this to be the best evidence of fair value as KKR & Co. Inc. Class A common stock is traded in an active market and has an observable market price. Additionally, a KKR Holdings unit is an instrument with terms and conditions similar to those of KKR & Co. Inc. Class A common stock. Specifically, units in KKR Holdings and shares of KKR & Co. Inc. represent ownership interests in KKR Group Partnership Units and, subject to any vesting, minimum retained ownership requirements and transfer restrictions, each KKR Holdings unit is exchangeable into a KKR Group Partnership Unit and then into a share of KKR & Co. Inc. Class A common stock on a one -for-one basis. In February 2016, approximately 28.9 million KKR Holdings units were granted that were originally subject to market condition and service-based vesting that were subsequently modified in November 2016 to eliminate the market condition vesting and instead require only service-based vesting in equal annual installments over a five year period. At the date of modification, total future compensation expense amounted to $320.9 million , net of estimated forfeitures, to be recognized over the remaining vesting period of the modified awards. The awards described above were granted from outstanding but previously unallocated units of KKR Holdings, and consequently these grants did not increase the number of KKR Holdings units outstanding or outstanding KKR & Co. Inc. Class A common stock on a fully-diluted basis. If and when vested, these awards will not dilute KKR's respective ownership interests in the KKR Group Partnerships. KKR Holdings awards give rise to equity-based compensation in the consolidated statements of operations based on the grant-date fair value of the award discounted for the lack of participation rights in the expected distributions on unvested units. This discount is consistent with that noted above for shares issued under the Equity Incentive Plans. Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based on expected turnover by class of recipient. As of December 31, 2019 , there was approximately $153.3 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows: Year Unrecognized Expense 2020 $ 82.0 2021 45.7 2022 25.6 Total $ 153.3 A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2019 through December 31, 2019 is presented below: Units Weighted Average Grant Date Fair Value Balance, January 1, 2019 24,123,993 $ 14.42 Granted — — Vested (6,162,014 ) 14.86 Forfeitures (1,392,500 ) 12.25 Balance, December 31, 2019 16,569,479 $ 14.43 The weighted average remaining vesting period over which unvested awards are expected to vest is 1.5 years. A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below: Vesting Date Units April 1, 2020 124,479 May 1, 2020 3,085,000 October 1, 2020 2,940,000 May 1, 2021 3,085,000 October 1, 2021 3,425,000 October 1, 2022 3,910,000 16,569,479 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Due from Affiliates consists of: December 31, 2019 December 31, 2018 Amounts due from portfolio companies $ 120,391 $ 82,204 Amounts due from unconsolidated investment funds 594,184 568,211 Amounts due from related entities 2,824 6,774 Due from Affiliates $ 717,399 $ 657,189 Due to Affiliates consists of: December 31, 2019 December 31, 2018 Amounts due to KKR Holdings in connection with the tax receivable agreement $ 131,288 $ 117,862 Amounts due to unconsolidated investment funds 154,810 157,722 Due to Affiliates $ 286,098 $ 275,584 Tax Receivable Agreement KKR is required to acquire KKR Group Partnership Units from time to time pursuant to the exchange agreement with KKR Holdings. The KKR Group Partnerships have each made an election under Section 754 of the Internal Revenue Code of 1986, as amended, that will remain in effect for each taxable year in which an exchange of KKR Group Partnership Units for Class A common stock occurs, which may result in an increase in KKR's tax basis of the assets of the KKR Group Partnerships at the time of an exchange of KKR Group Partnership Units. Certain of these exchanges are expected to result in an increase in KKR's share of the tax basis of the tangible and intangible assets of the KKR Group Partnerships, primarily attributable to a portion of the goodwill inherent in KKR's business that would not otherwise have been available. This increase in tax basis may increase depreciation and amortization deductions for tax purposes and therefore reduce the amount of income tax KKR otherwise would be required to pay in the future. This increase in tax basis may also decrease gain (or increase loss) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. KKR has entered into a tax receivable agreement with KKR Holdings, which requires KKR to pay to KKR Holdings, or to current and former principals who have exchanged KKR Holdings units for shares of Class A common stock (as transferees of KKR Group Partnership Units), 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that KKR realizes as a result of the increase in tax basis described above, as well as 85% of the amount of any such savings KKR actually realizes as a result of increases in tax basis that arise due to future payments under the agreement. KKR expects to benefit from the remaining 15% of cash savings, if any, in income tax that it realizes. A termination of the agreement or a change of control could give rise to similar payments based on tax savings that KKR would be deemed to realize in connection with such events. These payment obligations are obligations of KKR & Co. Inc. and certain of its intermediate holding companies and not of any KKR Group Partnership and are recorded within Due to Affiliates in the accompanying consolidated statements of financial condition. Payments made under the tax receivable agreement are required to be made within 90 days of the filing of KKR's tax returns, which may result in a timing difference between the tax savings received by KKR and the cash payments made to the exchanging holders of KKR Group Partnership Units. As a result of the 2017 Tax Act, which lowered the U.S. federal corporate tax rate from 35% to 21% , expected future cash savings generated as a result of KKR Holdings exchanges are expected to decrease. Accordingly, KKR has decreased the liability associated with the tax receivable agreement to reflect lower future payments to individuals who exchanged KKR Holdings units for shares of Class A common stock. The amount of this reduction was $67.2 million and is included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations for the year ended December 31, 2017. Effective July 1, 2018, we amended the tax receivable agreement to reflect the Conversion. The amendment also provides that, in the event the maximum U.S. federal corporate income tax rate is increased to a rate higher than 21.0% within the five-year period following the Conversion, for exchanges pursuant to the exchange agreement that take place within that five-year period (other than exchanges following the death of an individual), payments of cash tax savings realized as a result of such exchanges shall be calculated by applying a U.S. federal corporate income tax rate not to exceed 21.0%. The amendment also clarifies that the tax benefit payments with respect to exchanges completed at any time prior to the Conversion will be calculated without taking into account the step-up in tax basis in our underlying assets that we generated in 2018 as a result of the Conversion. For the year ended December 31, 2019, cash payments that have been made under the tax receivable agreement were $11.8 million . For the years ended December 31, 2018 and 2017, no cash payments have been made under the tax receivable agreement. KKR expects its intermediate holding companies to benefit from the remaining 15% of cash savings, if any, in income tax that they realize. As of December 31, 2019, $6.3 million of cumulative income tax savings have been realized. Discretionary Investments Certain of KKR's current and former employees and other qualifying personnel are permitted to invest, and have invested, their own capital in KKR's funds, in side-by-side investments with these funds and the firm, as well as in funds managed by its strategic manager partnerships. Side-by-side investments are made on the same terms and conditions as those acquired by the applicable fund or the firm, except that the side-by-side investments do not subject the investor to management fees or a carried interest. The cash contributed by these individuals aggregated $433.0 million , $415.0 million , and $505.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Aircraft and Other Services Certain of the senior employees own aircraft that KKR uses for business purposes in the ordinary course of its operations. These senior employees paid for the purchase of these aircraft with personal funds and bear all operating, personnel and maintenance costs associated with their operation. The hourly rates that KKR pays for the use of these aircraft are based on current market rates for chartering private aircraft of the same type. KKR incurred $3.8 million , $3.6 million , and $ 3.9 million for the use of these aircraft for the years ended December 31, 2019, 2018 and 2017, respectively. Facilities Certain trusts, whose beneficiaries include children of Mr. Kravis and Mr. Roberts, and certain other senior employees who are not executive officers of KKR, are partners in a real-estate based partnership that maintains an ownership interest in KKR's Menlo Park location. Payments made to this partnership were $8.1 million , $7.9 million , and $7.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING KKR operates through one |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
EQUITY | EQUITY Stockholders' Equity Class A, Class B and Class C Common Stock Class A common stock is entitled to vote as provided by our certificate of incorporation, Delaware law and the rules of the NYSE. Class B common stock is entitled to vote on any other matter that is submitted to a vote of the stockholders. For matters on which our Class A common stock is entitled to vote, so long as the ratio at which KKR Group Partnership Units are exchangeable for Class A common stock remains on a one -for- one basis, Class C common stock will vote together with Class A common stock as a single class and on an equivalent basis unless required otherwise by Delaware law, except Class C common stock will vote separately as a class on any amendment to the certificate of incorporation that changes certain terms, rights or preferences of Class C common stock. The holder of Class B common stock and holders of Class C common stock do not have any economic rights to receive dividends or receive distributions upon the dissolution, liquidation or winding up of KKR. Class A common stock, Class B common stock and Class C common stock are not entitled to preemptive rights, and, except in the case of impermissible transfers of the Class B common stock, which would result in KKR’s redemption of such Class B common stock, are not subject to conversion, redemption or sinking fund provisions. Series A and Series B Preferred Stock The board of directors is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers (including voting powers), preferences and rights of the shares of each series and any of its qualifications, limitations or restrictions, in each case without further vote or action by the stockholders (except as may be required by the terms of any preferred stock then outstanding). KKR & Co. Inc. has outstanding 13,800,000 shares of Series A Preferred Stock and 6,200,000 shares of Series B Preferred Stock. Series A Preferred Stock and Series B Preferred Stock trade on the NYSE under the symbols "KKR PR A" and "KKR PR B", respectively, and were originally issued on March 17, 2016 and June 20, 2016, respectively. The terms of the preferred stock are set forth in our certificate of incorporation. If declared, dividends on the Series A Preferred Stock and Series B Preferred Stock are payable quarterly on March 15, June 15, September 15 and December 15 of each year, at a rate per annum equal to 6.75% , in the case of Series A Preferred Stock, and 6.50% , in the case of Series B Preferred Stock. Dividends on the Series A Preferred Stock and Series B Preferred Stock are discretionary and non-cumulative. Holders of the Series A Preferred Stock and Series B Preferred Stock will only receive dividends on such shares when, as and if declared by the board of directors. KKR has no obligation to declare or pay any dividends for any dividend period, whether or not dividends on any series of preferred stock are declared or paid for any other dividend period. Unless dividends have been declared and paid (or declared and set apart for payment) on Series A Preferred Stock and Series B Preferred Stock for a quarterly distribution period, KKR & Co. Inc. may not declare or pay dividends on, or repurchase, any of its shares that are junior to Series A Preferred Stock and Series B Preferred Stock, including Class A common stock, during such dividend period. A dividend period begins on a dividend payment date and extends to, but excludes, the next dividend payment date. If KKR & Co. Inc. dissolves, then the holders of the Series A Preferred Stock and Series B Preferred Stock are entitled to receive payment of a $25.00 liquidation preference per share, plus declared and unpaid dividends, if any, to the extent that KKR has sufficient gross income (excluding any gross income attributable to the sale or exchange of capital assets) such that holders of such preferred stock have capital account balances equal to such liquidation preference, plus declared and unpaid dividends, if any. The Series A Preferred Stock and Series B Preferred Stock do not have a maturity date. However, Series A Preferred Stock may be redeemed at KKR & Co. Inc.’s option, in whole or in part, at any time on or after June 15, 2021, at a price of $25.00 per share, plus declared and unpaid dividends, if any. Series B Preferred Stock may be redeemed at KKR & Co. Inc.’s option, in whole or in part, at any time on or after September 15, 2021, at a price of $25.00 per share, plus declared and unpaid dividends, if any. Holders of Series A Preferred Stock and Series B Preferred Stock have no right to require the redemption of such stock. If a certain change of control event with a ratings downgrade occurs prior to June 15, 2021, in the case of Series A Preferred Stock, and September 15, 2021, in the case of Series B Preferred Stock, then Series A Preferred Stock or Series B Preferred Stock, as applicable, may be redeemed at KKR & Co. Inc.’s option, in whole but not in part, upon at least 30 days' notice, within 60 days of the occurrence of such change of control event, at a price of $25.25 per share, plus declared and unpaid dividends, if any. If such a change of control event occurs (whether before, on or after June 15, 2021, in the case of the Series A Preferred Stock, or September 15, 2021, in the case of the Series B Preferred Stock) and we do not give such notice, the dividend rate per annum on the applicable series of preferred stock will increase by 5.00% , beginning on the 31st day following such change of control event. Series A Preferred Stock and Series B Preferred Stock are not convertible into common stock of KKR & Co. Inc. and have no voting rights, except that holders of Series A Preferred Stock and Series B Preferred Stock have certain voting rights in limited circumstances relating to the election of directors following the failure to declare and pay dividends, certain amendments to the terms of the preferred stock, and the creation of preferred stock that are senior to the Series A Preferred Stock and Series B Preferred Stock. In connection with the issuance of the Series A Preferred Stock and Series B Preferred Stock, the KKR Group Partnerships issued for the benefit of KKR & Co. Inc. corresponding series of preferred units with economic terms that mirror those of the Series A Preferred Stock and Series B Preferred Stock, as applicable. Share Repurchase Program In the first quarter of 2019, KKR increased the available amount under its repurchase program to $500 million , which may be used for the repurchase of its shares of Class A common stock of KKR & Co. Inc. and retirement of equity awards granted pursuant to the Equity Incentive Plans. Under this repurchase program, shares of Class A common stock of KKR & Co. Inc. may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. In addition to the repurchases of Class A common stock, the repurchase program will be used for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity awards granted pursuant to our Equity Incentive Plans representing the right to receive Class A common stock. KKR expects that the program, which has no expiration date, will be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase or retire any specific number of shares of Class A common stock or equity awards, respectively, and the program may be suspended, extended, modified or discontinued at any time. The following table presents KKR & Co. Inc. Class A common stock that has been repurchased or equity awards retired under the repurchase program: For the Years Ended December 31, 2019 2018 2017 Shares of Class A common stock repurchased 2,859,452 7,540,551 — Equity Awards for Class A common stock retired (1) 3,670,019 1,675,306 — (1) Amounts exclude retirements of equity awards prior to May 3, 2018, the date on which retirements of equity awards became included under the repurchase program. Noncontrolling Interests Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings. Noncontrolling Interests in Consolidated Entities Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by: (i) third party fund investors in KKR's consolidated funds and certain other entities; (ii) third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015; (iii) certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009; (iv) certain principals and former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; and (v) third parties in KKR's capital markets business line. Noncontrolling Interests held by KKR Holdings Noncontrolling interests held by KKR Holdings include economic interests held by principals indirectly in the KKR Group Partnership Units. Such principals receive financial benefits from KKR's business in the form of distributions received from KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings. These financial benefits are not paid by KKR & Co. Inc. and are borne by KKR Holdings. The following tables present the calculation of total noncontrolling interests: For the Year Ended December 31, 2019 Noncontrolling Interests in Consolidated Entities Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 10,984,910 $ 4,625,448 $ 15,610,358 Net income (loss) attributable to noncontrolling interests (1) 1,264,820 1,369,671 2,634,491 Other comprehensive income (loss), net of tax (2) (1,803 ) (537 ) (2,340 ) Exchange of KKR Holdings Units to Class A Common Stock (3) — (161,825 ) (161,825 ) Equity-based and other non-cash compensation — 91,297 91,297 Capital contributions 4,668,114 1,642 4,669,756 Capital distributions (2,972,914 ) (197,062 ) (3,169,976 ) Changes in consolidation 23,123 — 23,123 Balance at the end of the period $ 13,966,250 $ 5,728,634 $ 19,694,884 For the Year Ended December 31, 2018 Noncontrolling Interests in Consolidated Entities Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 8,072,849 $ 4,793,475 $ 12,866,324 Net income (loss) attributable to noncontrolling interests (1) 796,183 561,052 1,357,235 Other comprehensive income (loss), net of tax (2) (18,512 ) (12,559 ) (31,071 ) Exchange of KKR Holdings Units to Class A Common Stock and Other (3) (52,585 ) (567,309 ) (619,894 ) Equity-based and other non-cash compensation — 100,632 100,632 Capital contributions 4,357,219 2,396 4,359,615 Capital distributions (2,763,416 ) (252,239 ) (3,015,655 ) Changes in consolidation 593,172 — 593,172 Balance at the end of the period $ 10,984,910 $ 4,625,448 $ 15,610,358 For the Year Ended December 31, 2017 Noncontrolling Interests in Consolidated Entities Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 6,252,565 $ 4,293,337 $ 10,545,902 Net income (loss) attributable to noncontrolling interests (1) 676,744 791,021 1,467,765 Other comprehensive income (loss), net of tax (2) 9,192 21,904 31,096 Exchange of KKR Holdings Units to Class A Common Stock and Other (3) (50,120 ) (238,941 ) (289,061 ) Equity-based and other non-cash compensation — 141,727 141,727 Capital contributions 3,116,889 3,028 3,119,917 Capital distributions (1,890,232 ) (235,610 ) (2,125,842 ) Changes in consolidation (1,682 ) — (1,682 ) Transfers of interests under common control and Other (40,507 ) 17,009 (23,498 ) Balance at the end of the period $ 8,072,849 $ 4,793,475 $ 12,866,324 (1) Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests held by KKR Holdings. (2) With respect to noncontrolling interests held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units held by KKR Holdings during the reporting period. (3) For the year ended December 31, 2019, calculated based on the proportion of KKR Holdings units exchanged for KKR & Co. Inc. Class A common stock. For the years ended December 31, 2018 and 2017, calculated based on the proportion of KKR Holdings units and other exchangeable securities exchanged for KKR & Co. Inc. Class A common stock. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. Class A common stock. Net income (loss) attributable to each of KKR & Co. Inc. Class A common stockholders and KKR Holdings, with the exception of certain tax assets and liabilities that are directly allocable to KKR & Co. Inc., is attributed based on the percentage of the weighted average KKR Group Partnership Units directly or indirectly held by KKR & Co. Inc. and KKR Holdings, each of which directly or indirectly holds equity of the KKR Group Partnerships. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings, (ii) the periodic exchange of KKR Holdings units for KKR & Co. Inc. Class A common stock pursuant to the exchange agreement and (iii) the contribution of certain expenses borne entirely by KKR associated with the Equity Incentive Plans, equity allocations shown in the consolidated statement of changes in equity differ from their respective pro rata ownership interests in KKR's net assets. The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings: For the Years Ended December 31, 2019 2018 2017 Net income (loss) $ 4,639,540 $ 2,450,946 $ 2,560,042 (-) Net income (loss) attributable to Redeemable Noncontrolling Interests — (37,352 ) 73,972 (-) Net income (loss) attributable to Noncontrolling Interests in consolidated entities 1,264,820 796,183 676,744 (-) Preferred Stock Dividends 33,364 33,364 33,364 (+) Income tax expense (benefit) attributable to KKR & Co. Inc. 539,466 (229,232 ) 150,812 (-) Gain from remeasurement of tax receivable agreement liability attributable to KKR & Co. Inc. (1) — — 67,221 Net income (loss) attributable to KKR & Co. Inc. Class A Common Stockholders and KKR Holdings $ 3,880,822 $ 1,429,519 $ 1,859,553 Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings $ 1,369,671 $ 561,052 $ 791,021 (1) Represents the impacts of the remeasurement of the tax receivable agreement which arises from changes in the associated deferred tax balance, including the impacts related to the 2017 Tax Act. Redeemable Noncontrolling Interests Redeemable Noncontrolling Interests represent noncontrolling interests of certain investment funds and vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time (typically one year), or may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn. Fund investors interests subject to redemption as described above are presented as Redeemable Noncontrolling Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. When redeemable amounts become legally payable to fund investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. For all consolidated investment vehicles and funds in which redemption rights have not been granted, noncontrolling interests are presented within Stockholders' Equity in the accompanying consolidated statements of financial condition as noncontrolling interests. The following table presents the rollforward of Redeemable Noncontrolling Interests: For the Years Ended December 31, 2019 2018 2017 Balance at the beginning of the period $ 1,122,641 $ 610,540 $ 632,348 Net income (loss) attributable to Redeemable Noncontrolling Interests — (37,352 ) 73,972 Capital contributions — 565,553 220,167 Capital distributions — (16,100 ) (890 ) Changes in consolidation (1,122,641 ) — (315,057 ) Balance at the end of the period $ — $ 1,122,641 $ 610,540 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Funding Commitments As of December 31, 2019 , KKR had unfunded commitments consisting of $5,241.2 million to its active investment vehicles. In addition to the uncalled commitments to KKR's investment funds, KKR has entered into contractual commitments with respect to (i) the purchase of investments and other assets in its Principal Activities business line and (ii) underwriting transactions, debt financing, and syndications in KKR's Capital Markets business line. As of December 31, 2019 , these commitments amounted to $0.8 million and $1,089.4 million , respectively. Whether these amounts are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. The unfunded commitments shown for KKR's Capital Markets business line are shown without reflecting arrangements that may reduce the actual amount of contractual commitments shown. KKR's capital markets business has an arrangement with a third party, which reduces its risk when underwriting certain debt transactions, and thus our unfunded commitments as of December 31, 2019 are reduced to reflect the amount to be funded by such third party. In the case of purchases of investments or assets in KKR's Principal Activities business line, the amount to be funded includes amounts that are intended to be syndicated to third parties, and the actual amounts to be funded may be less than shown. Non-cancelable Operating Leases KKR's non-cancelable operating leases consist of leases of office space around the world. There are no material rent holidays, contingent rent, rent concessions or leasehold improvement incentives associated with any of these property leases. In addition to base rentals, certain lease agreements are subject to escalation provisions and rent expense is recognized on a straight‑line basis over the term of the lease agreement. As of December 31, 2019 , the approximate aggregate future lease payments required on the operating leases are as follows: 2020 $ 52,811 2021 24,954 2022 20,720 2023 14,570 2024 4,491 Thereafter 14,762 Total lease payments required 132,308 Less: Imputed Interest (7,222 ) Total operating lease liabilities $ 125,086 As of December 31, 2019 , KKR has an additional operating lease for office space that has not yet commenced with future lease payments of approximately £66.9 million (or $88.9 million ) over a lease term of 15 years . This operating lease is denominated in Pound Sterling. Contingent Repayment Guarantees The partnership documents governing KKR's carry-paying investment funds and vehicles generally include a "clawback" provision that, if triggered, may give rise to a contingent obligation requiring the general partner to return amounts to the fund for distribution to the fund investors at the end of the life of the fund. Under a clawback obligation, upon the liquidation of a fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, including the effects of any performance thresholds. As of December 31, 2019 , $36.9 million of carried interest was subject to this clawback obligation, assuming that all applicable carry-paying funds were liquidated at their December 31, 2019 fair values. Had the investments in such funds been liquidated at zero value, the clawback obligation would have been approximately $2.5 billion . Carried interest is recognized in the consolidated statements of operations based on the contractual conditions set forth in the agreements governing the fund as if the fund were terminated and liquidated at the reporting date and the fund's investments were realized at the then estimated fair values. Amounts earned pursuant to carried interest are earned by the general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred return thresholds have been met. If these investment amounts earned decrease or turn negative in subsequent periods, recognized carried interest will be reversed and to the extent that the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, a clawback obligation would be recorded. For funds that are consolidated, this clawback obligation, if any, is reflected as an increase in noncontrolling interests in the consolidated statements of financial condition. For funds that are not consolidated, this clawback obligation, if any, is reflected as a reduction of KKR's investment balance as this is where carried interest is initially recorded. Indemnifications and Other Guarantees KKR may incur contingent liabilities for claims that may be made against it in the future. KKR enters into contracts that contain a variety of representations, warranties and covenants, including indemnifications. For example, KKR, certain of KKR's investment funds and KFN have provided certain indemnities relating to environmental and other matters and have provided non-recourse carve-out guarantees for fraud, willful misconduct and other customary wrongful acts, each in connection with the financing of KKR's corporate real estate and certain real estate investments and for certain investment vehicles that KKR manages. In addition, KKR has also provided credit support to certain of its subsidiaries' obligations in connection with a limited number of investment vehicles that KKR manages. For example, KKR has guaranteed the obligations of a general partner to post collateral on behalf of its investment vehicle in connection with such vehicle's derivative transactions, and KKR has also agreed to be liable for certain investment losses and/or for providing liquidity in the events specified in the governing documents of other investment vehicles. However, KKR is not a guarantor for any borrowings, credit facilities or debt securities of its Indian debt financing company. KKR has also provided credit support regarding repayment obligations to third-party lenders to certain of its employees, excluding its executive officers, in connection with their personal investments in KKR investment funds and to a hedge fund partnership regarding the ownership of its business. KKR also may become liable for certain fees payable to sellers of businesses or assets if a transaction does not close, subject to certain conditions, if any, specified in the acquisition agreements for such businesses or assets. KKR's maximum exposure under these arrangements is currently unknown and KKR's liabilities for these matters would require a claim to be made against KKR in the future. Litigation From time to time, KKR is involved in various legal proceedings, lawsuits and claims incidental to the conduct of KKR's business. KKR's business is also subject to extensive regulation, which may result in regulatory proceedings against it. In December 2017, KKR & Co. L.P. and its Co-Chief Executive Officers were named as defendants in a lawsuit pending in Kentucky state court alleging, among other things, the violation of fiduciary and other duties in connection with certain separately managed accounts that Prisma Capital Partners LP, a former subsidiary of KKR, manages for the Kentucky Retirement Systems. Also named as defendants in the lawsuit are certain current and former trustees and officers of the Kentucky Retirement Systems, Prisma Capital Partners LP, and various other service providers to the Kentucky Retirement Systems and their related persons. KKR and other defendants’ motions to dismiss were denied by the trial court in November 2018, but in April 2019 the Kentucky Court of Appeals vacated the trial court's opinion and order denying the motions to dismiss the case for lack of standing. The decision of the Court of Appeals has been appealed by plaintiffs to the Supreme Court of Kentucky, whose decision is pending. KKR currently is and expects to continue to become, from time to time, subject to examinations, inquiries and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to the SEC, Department of Justice, state attorney generals, Financial Industry Regulatory Authority, or FINRA, and the U.K. Financial Conduct Authority. Such examinations, inquiries and investigations may result in the commencement of civil, criminal or administrative proceedings or fines against KKR or its personnel. Moreover, in the ordinary course of business, KKR is and can be both the defendant and the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy, insolvency and other types of proceedings. Such lawsuits may involve claims that adversely affect the value of certain investments owned by KKR's funds. KKR establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. No loss contingency is recorded for matters where such losses are either not probable or reasonably estimable (or both) at the time of determination. Such matters may be subject to many uncertainties, including among others: (i) the proceedings may be in early stages; (ii) damages sought may be unspecified, unsupportable, unexplained or uncertain; (iii) discovery may not have been started or is incomplete; (iv) there may be uncertainty as to the outcome of pending appeals or motions; (v) there may be significant factual issues to be resolved or (vi) there may be novel legal issues or unsettled legal theories to be presented or a large number of parties. Consequently, management is unable to estimate a range of potential loss, if any, related to these matters. In addition, loss contingencies may be, in part or in whole, subject to insurance or other payments such as contributions and/or indemnity, which may reduce any ultimate loss. It is not possible to predict the ultimate outcome of all pending legal proceedings, and some of the matters discussed above seek or may seek potentially large and/or indeterminate amounts. As of such date, based on information known by management, management has not concluded that the final resolutions of the matters above will have a material effect upon the financial statements. However, given the potentially large and/or indeterminate amounts sought or may be sought in certain of these matters and the inherent unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on KKR's financial results in any particular period. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) For the Three Months Ended, March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Statement of Operations Data: Total Revenues $ 1,187,480 $ 1,179,864 $ 790,485 $ 1,063,071 Total Expenses 728,767 808,811 619,533 751,320 Total Investment Income (Loss) 1,335,926 1,156,076 218,792 1,145,027 Income (Loss) Before Taxes 1,794,639 1,527,129 389,744 1,456,778 Income Tax Expense / (Benefit) 167,593 165,399 53,132 142,626 Net Income (Loss) 1,627,046 1,361,730 336,612 1,314,152 Net Income (Loss) Attributable to Redeemable Noncontrolling Interests — — — — Net Income (Loss) Attributable to Noncontrolling Interests 917,727 838,996 87,058 790,710 Net Income (Loss) Attributable to KKR & Co. Inc. 709,319 522,734 249,554 523,442 Series A Preferred Stock Dividends 5,822 5,822 5,822 5,822 Series B Preferred Stock Dividends 2,519 2,519 2,519 2,519 Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders $ 700,978 $ 514,393 $ 241,213 $ 515,101 Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock Basic $ 1.31 $ 0.94 $ 0.44 $ 0.93 Diluted $ 1.27 $ 0.93 $ 0.43 $ 0.91 Weighted Average Shares of Class A Common Stock Outstanding Basic 533,892,474 544,528,863 546,336,936 555,379,973 Diluted 550,046,440 554,643,810 559,532,065 566,277,984 For the Three Months Ended, March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Statement of Operations Data: Total Revenues $ 472,606 $ 971,620 $ 1,129,666 $ (178,056 ) Total Expenses 436,601 675,050 740,090 237,736 Total Investment Income (Loss) 584,530 1,330,786 833,288 (798,115 ) Income (Loss) Before Taxes 620,535 1,627,356 1,222,864 (1,213,907 ) Income Tax Expense / (Benefit) 17,641 60,960 (129,405 ) (143,294 ) Net Income (Loss) 602,894 1,566,396 1,352,269 (1,070,613 ) Net Income (Loss) Attributable to Redeemable Noncontrolling Interests 25,674 (18,016 ) 12,236 (57,246 ) Net Income (Loss) Attributable to Noncontrolling Interests 398,777 895,690 691,494 (628,726 ) Net Income (Loss) Attributable to KKR & Co. Inc. 178,443 688,722 648,539 (384,641 ) Series A Preferred Stock Dividends 5,822 5,822 5,822 5,822 Series B Preferred Stock Dividends 2,519 2,519 2,519 2,519 Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders $ 170,102 $ 680,381 $ 640,198 $ (392,982 ) Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock Basic $ 0.36 $ 1.33 $ 1.22 $ (0.74 ) Diluted $ 0.32 $ 1.24 $ 1.17 $ (0.74 ) Weighted Average Shares of Class A Common Stock Outstanding Basic 487,704,838 510,586,631 525,240,214 532,266,521 Diluted 535,918,274 548,745,498 545,672,953 532,266,521 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Common Stock Dividend A dividend of $0.125 per share of Class A common stock of KKR & Co. Inc. was announced on January 31, 2020 , and will be paid on February 25, 2020 to Class A common stockholders of record as of the close of business on February 10, 2020 . KKR Holdings will receive its pro rata share of the distribution from the KKR Group Partnership. Preferred Stock Dividend A dividend of $0.421875 per share of Series A Preferred Stock has been declared as announced on January 31, 2020 and set aside for payment on March 16, 2020 to holders of record of Series A Preferred Stock as of the close of business on March 1, 2020 . A dividend of $0.406250 per share of Series B Preferred Stock has been declared as announced on January 31, 2020 and set aside for payment on March 16, 2020 to holders of record of Series B Preferred Stock as of the close of business on March 1, 2020 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Valuation Allowance for Deferred Tax Assets (in thousands) Balance at Beginning of Period Tax Valuation Allowance Charged to Income Tax Provision Tax Valuation Allowance Credited to Income Tax Provision Balance at End of Period Year Ended: December 31, 2017 $ 9,768 $ 2,104 $ — $ 11,872 December 31, 2018 $ 11,872 $ — $ 11,872 (1) $ — December 31, 2019 $ — $ — $ — $ — (1) The valuation allowance related to a deferred tax asset for foreign tax credit carryovers is no longer applicable because KKR elected to deduct its foreign tax credit carryovers in lieu of taking a tax credit. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements (referred to hereafter as the "financial statements") have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). KKR consolidates the financial results of the KKR Group Partnerships and their consolidated entities, which include the accounts of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds and certain other entities including CFEs. References in the accompanying financial statements to "principals" are to KKR's senior employees and non-employee operating consultants who hold interests in KKR's business through KKR Holdings. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and investment income (loss) during the reporting periods. Such estimates include but are not limited to (i) the determination of the income tax provision and (ii) the valuation of investments and financial instruments. Actual results could differ from those estimates, and such differences could be material to the financial statements. |
Principles of Consolidation | Principles of Consolidation The types of entities KKR assesses for consolidation include (i) subsidiaries, including management companies, broker-dealers and general partners of investment funds that KKR manages, (ii) entities that have all the attributes of an investment company, like investment funds, (iii) CFEs and (iv) other entities, including entities that employ non-employee operating consultants. Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity. Pursuant to its consolidation policy, KKR first considers whether an entity is considered a VIE and therefore whether to apply the consolidation guidance under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities ("VOEs") under the voting interest model. KKR's funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their investments in portfolio companies even if majority-owned and controlled. Rather, the consolidated funds and vehicles reflect their investments at fair value as described below in "Fair Value Measurements." An entity in which KKR holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity's activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both and substantially all of the legal entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Limited partnerships and other similar entities where unaffiliated limited partners have not been granted (i) substantive participatory rights or (ii) substantive rights to either dissolve the partnership or remove the general partner ("kick-out rights") are VIEs under condition (b) above. KKR's investment funds that are not CFEs (i) are generally limited partnerships, (ii) generally provide KKR with operational discretion and control, and (iii) generally have fund investors with no substantive rights to impact ongoing governance and operating activities of the fund, including the ability to remove the general partner, and, as such, the limited partners do not hold kick-out rights. Accordingly, most of KKR's investment funds are categorized as VIEs. KKR consolidates all VIEs in which it is the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (i) whether an entity in which KKR holds a variable interest is a VIE and (ii) whether KKR's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Fees earned by KKR that are customary and commensurate with the level of effort required to provide those services, and where KKR does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered variable interests. KKR factors in all economic interests including interests held through related parties, to determine if it holds a variable interest. KKR determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion when facts and circumstances change. For entities that are determined not to be VIEs, these entities are generally considered VOEs and are evaluated under the voting interest model. KKR consolidates VOEs it controls through a majority voting interest or through other means. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE depends on the facts and circumstances surrounding each entity and therefore certain of KKR's investment funds may qualify as VIEs whereas others may qualify as VOEs. With respect to CLOs (which are generally VIEs), in its role as collateral manager, KKR generally has the power to direct the activities of the CLO that most significantly impact the economic performance of the entity. In some, but not all cases, KKR, through its residual interest in the CLO may have variable interests that represent an obligation to absorb losses of, or a right to receive benefits from, the CLO that could potentially be significant to the CLO. In cases where KKR has both the power to direct the activities of the CLO that most significantly impact the CLO's economic performance and the obligation to absorb losses of the CLO or the right to receive benefits from the CLO that could potentially be significant to the CLO, KKR is deemed to be the primary beneficiary and consolidates the CLO. With respect to CMBS vehicles (which are generally VIEs), KKR holds unrated and non-investment grade rated securities issued by the CMBS, which are the most subordinate tranche of the CMBS vehicle. The economic performance of the CMBS is most significantly impacted by the performance of the underlying assets. Thus, the activities that most significantly impact the CMBS economic performance are the activities that most significantly impact the performance of the underlying assets. The special servicer has the ability to manage the CMBS assets that are delinquent or in default to improve the economic performance of the CMBS. KKR generally has the right to unilaterally appoint and remove the special servicer for the CMBS and as such is considered the controlling class of the CMBS vehicle. These rights give KKR the ability to direct the activities that most significantly impact the economic performance of the CMBS. Additionally, as the holder of the most subordinate tranche, KKR is in a first loss position and has the right to receive benefits, including the actual residual returns of the CMBS, if any. In these cases, KKR is deemed to be the primary beneficiary and consolidates the CMBS vehicle. |
Investments | Investments Investments consist primarily of private equity, credit, investments of consolidated CFEs, real assets, equity method and other investments. Investments denominated in currencies other than the entity's functional currency are valued based on the spot rate of the respective currency at the end of the reporting period with changes related to exchange rate movements reflected in the consolidated statements of operations. Security and loan transactions are recorded on a trade date basis. Further disclosure on investments is presented in Note 4 "Investments." The following describes the types of securities held within each investment class. Private Equity - Consists primarily of equity investments in operating businesses, including growth equity investments. Credit - Consists primarily of investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans), originated, distressed and opportunistic credit, real estate mortgage loans, and interests in unconsolidated CLOs. Investments of Consolidated CFEs - Consists primarily of (i) investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans) held directly by the consolidated CLOs and (ii) investments in originated, fixed-rate real estate mortgage loans held directly by the consolidated CMBS vehicles. Real Assets - Consists primarily of investments in (i) energy related assets, principally oil and natural gas properties, (ii) infrastructure assets, and (iii) real estate, principally residential and commercial real estate assets and businesses. Equity Method - Other - Consists primarily of (i) certain direct interests in operating companies in which KKR is deemed to exert significant influence under GAAP and (ii) certain interests in partnerships and joint ventures that hold private equity and real assets investments. Equity Method - Capital Allocation-Based Income - Consists primarily of (i) the capital interest KKR holds as the general partner in certain investment funds, which are not consolidated and (ii) the carried interest component of the general partner interest, which are accounted for as a single unit of account. Other - Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit or investments of consolidated CFEs. Investments held by Consolidated Investment Funds The consolidated investment funds are, for GAAP purposes, investment companies and reflect their investments and other financial instruments, including portfolio companies that are majority-owned and controlled by KKR's investment funds, at fair value. KKR has retained this specialized accounting for the consolidated investment funds in consolidation. Accordingly, the unrealized gains and losses resulting from changes in fair value of the investments and other financial instruments held by the consolidated investment funds are reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Certain energy investments are made through consolidated investment funds, including investments in working and royalty interests in oil and natural gas properties as well as investments in operating companies that operate in the energy industry. Since these investments are held through consolidated investment funds, such investments are reflected at fair value as of the end of the reporting period. Investments in operating companies that are held through KKR's consolidated investment funds are generally classified within private equity investments and investments in working and royalty interests in oil and natural gas properties are generally classified as real asset investments. |
Energy Investments held by KKR | Energy Investments held by KKR KKR directly holds certain working and royalty interests in oil and natural gas properties that are not held through investment funds. Oil and natural gas activities are accounted for under the successful efforts method of accounting and such working interests are consolidated based on the proportion of the working interests held by KKR. Accordingly, KKR reflects its proportionate share of these interests on a gross basis and changes in the value of these interests are not reflected as unrealized gains and losses in the consolidated statements of operations. Under the successful efforts method, exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. Costs that are associated with the drilling of successful exploration wells are capitalized if proved reserves are found. Lease acquisition costs are capitalized when incurred. Costs associated with the drilling of exploratory wells that do not find proved reserves, geological and geophysical costs and costs of certain nonproducing leasehold costs are charged to expense as incurred. Expenditures for repairs and maintenance, including workovers, are charged to expense as incurred. The capitalized costs of producing oil and natural gas properties are depleted on a field-by-field basis using the units-of production method based on the ratio of current production to estimated total net proved oil, natural gas and natural gas liquid reserves. Proved developed reserves are used in computing depletion rates for drilling and development costs and total proved reserves are used for depletion rates of leasehold costs. Estimated dismantlement and abandonment costs for oil and natural gas properties, net of salvage value, are capitalized at their estimated net present value and amortized on a unit-of-production basis over the remaining life of the related proved developed reserves. Whenever events or changes in circumstances indicate that the carrying amounts of oil and natural gas properties may not be recoverable, KKR evaluates oil and natural gas properties and related equipment and facilities for impairment on a field-by-field basis. The determination of recoverability is made based upon estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related asset. Any impairment in value is recognized when incurred and is recorded in General, Administrative, and Other expense in the consolidated statements of operations. |
Fair Value Option | Fair Value Option For certain investments and other financial instruments, KKR has elected the fair value option. Such election is irrevocable and is applied on a financial instrument by financial instrument basis at initial recognition. KKR has elected the fair value option for certain private equity, real assets, credit, investments of consolidated CFEs, equity method - other and other financial instruments not held through a consolidated investment fund. Accounting for these investments at fair value is consistent with how KKR accounts for its investments held through consolidated investment funds. Changes in the fair value of such instruments are recognized in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Interest income on interest bearing credit securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest Income in the consolidated statements of operations. |
Equity Method | Equity Method For certain investments in entities over which KKR exercises significant influence but which do not meet the requirements for consolidation and for which KKR has not elected the fair value option, KKR uses the equity method of accounting. The carrying value of equity method investments, for which KKR has not elected the fair value option, is determined based on the amounts invested by KKR, adjusted for the equity in earnings or losses of the investee allocated based on KKR's respective ownership percentage, less distributions. For equity method investments for which KKR has not elected the fair value option, KKR records its proportionate share of the investee's earnings or losses based on the most recently available financial information of the investee, which in certain cases may lag the date of KKR's financial statements by no more than three calendar months. As of December 31, 2019 , equity method investees for which KKR reports financial results on a lag include Marshall Wace LLP ("Marshall Wace"). KKR evaluates its equity method investments for which KKR has not elected the fair value option for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The carrying value of investments classified as Equity Method - Capital Allocation-Based Income approximates fair value, because the underlying investments of the unconsolidated investment funds are reported at fair value. |
Financial Instruments held by Consolidated CFEs | Financial Instruments held by Consolidated CFEs KKR measures both the financial assets and financial liabilities of the consolidated CFEs in its financial statements using the more observable of the fair value of the financial assets and the fair value of the financial liabilities which results in KKR's consolidated net income (loss) reflecting KKR's own economic interests in the consolidated CFEs including (i) changes in the fair value of the beneficial interests retained by KKR and (ii) beneficial interests that represent compensation for services rendered. For the consolidated CLOs, KKR has determined that the fair value of the financial assets of the consolidated CLOs is more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are being measured at fair value and the financial liabilities are being measured in consolidation as: (1) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (2) the sum of the fair value of any beneficial interests retained by KKR (other than those that represent compensation for services) and KKR's carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interests retained by KKR). For the consolidated CMBS vehicles, KKR has determined that the fair value of the financial liabilities of the consolidated CMBS vehicles is more observable than the fair value of the financial assets of the consolidated CMBS vehicles. As a result, the financial liabilities of the consolidated CMBS vehicles are being measured at fair value and the financial assets are being measured in consolidation as: (1) the sum of the fair value of the financial liabilities (other than the beneficial interests retained by KKR), the fair value of the beneficial interests retained by KKR and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CMBS vehicles less (2) the carrying value of any nonfinancial assets that are incidental to the operations of the CMBS vehicles. The resulting amount is allocated to the individual financial assets. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for certain of KKR's equity method investments (see "Equity Method" above) and debt obligations (as described in Note 10 "Debt Obligations"), KKR's investments and other financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation techniques are applied. These valuation techniques involve varying levels of management estimation and judgment, the degree of which is dependent on a variety of factors. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: Level I - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities and securities sold short. Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities and certain over-the-counter derivatives such as foreign currency option and forward contracts. Level III - Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, credit investments, equity method investments for which the fair value option was elected and investments and debt obligations of consolidated CMBS entities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. KKR's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset. A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by KKR in determining fair value is greatest for instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may cause transfers between Levels I, II, and III, which KKR recognizes at the beginning of the reporting period. Investments and other financial instruments that have readily observable market prices (such as those traded on a securities exchange) are stated at the last quoted sales price as of the reporting date. KKR does not adjust the quoted price for these investments, even in situations where KKR holds a large position and a sale could reasonably affect the quoted price. Management's determination of fair value is based upon the methodologies and processes described below and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors. Level II Valuation Methodologies Credit Investments: These financial instruments generally have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that KKR and others are willing to pay for an instrument. Ask prices represent the lowest price that KKR and others are willing to accept for an instrument. For financial instruments whose inputs are based on bid-ask prices obtained from third party pricing services, fair value may not always be a predetermined point in the bid-ask range. KKR's policy is generally to allow for mid-market pricing and adjusting to the point within the bid-ask range that meets KKR's best estimate of fair value. Investments and Debt Obligations of Consolidated CLO Vehicles: Investments of consolidated CLO vehicles are reported within Investments of Consolidated CFEs and are valued using the same valuation methodology as described above for credit investments. Under ASU 2014-13, KKR measures CLO debt obligations on the basis of the fair value of the financial assets of the CLO. Securities Indexed to Publicly-Listed Securities: These securities are typically valued using standard convertible security pricing models. The key inputs into these models that require some amount of judgment are the credit spreads utilized and the volatility assumed. To the extent the company being valued has other outstanding debt securities that are publicly-traded, the implied credit spread on the company's other outstanding debt securities would be utilized in the valuation. To the extent the company being valued does not have other outstanding debt securities that are publicly-traded, the credit spread will be estimated based on the implied credit spreads observed in comparable publicly-traded debt securities. In certain cases, an additional spread will be added to reflect an illiquidity discount due to the fact that the security being valued is not publicly-traded. The volatility assumption is based upon the historically observed volatility of the underlying equity security into which the convertible debt security is convertible and/or the volatility implied by the prices of options on the underlying equity security. Equity Securities: The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction or leverage that collateralized the equity securities. Derivatives: The valuation incorporates observable inputs comprising yield curves, foreign currency rates and credit spreads. Level III Valuation Methodologies Private Equity Investments: KKR generally employs two valuation methodologies when determining the fair value of a private equity investment. The first methodology is typically a market comparables analysis that considers key financial inputs and recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. In certain cases the results of the discounted cash flow approach can be significantly impacted by these estimates. Other inputs are also used in both methodologies. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement. Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement. When determining the weighting ascribed to each valuation methodology, KKR considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis, the expected hold period and manner of realization for the investment, and in the case of investments being sold pursuant to an executed definitive agreement, an estimated probability of such sale being completed. These factors can result in different weightings among investments in the portfolio and in certain instances may result in up to a 100% weighting to a single methodology. When an illiquidity discount is to be applied, KKR seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments. KKR then evaluates such private equity investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include (i) whether KKR is unable to freely sell the portfolio company or conduct an initial public offering of the portfolio company due to the consent rights of a third party or similar factors, (ii) whether the portfolio company is undergoing significant restructuring activity or similar factors, and (iii) characteristics about the portfolio company regarding its size and/or whether the portfolio company is experiencing, or expected to experience, a significant decline in earnings. These factors generally make it less likely that a portfolio company would be sold or publicly offered in the near term at a price indicated by using just a market multiples and/or discounted cash flow analysis, and these factors tend to reduce the number of opportunities to sell an investment and/or increase the time horizon over which an investment may be monetized. Depending on the applicability of these factors, KKR determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time KKR holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by KKR in its valuations. In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted to assess the current level of progress towards value drivers that we have determined to be important, which involves significant assumptions and judgments. The enterprise value in each case may then be allocated across the investment's capital structure to reflect the terms of the security and subjected to probability weightings. In certain cases, the values of growth equity investments may be based on recent or expected financings. Real Asset Investments: Real asset investments in infrastructure, energy and real estate are valued using one or a combination of the discounted cash flow analysis, market comparables analysis and direct income capitalization, which in each case incorporates significant assumptions and judgments. Infrastructure investments are generally valued using the discounted cash flow analysis. Key inputs used in this methodology can include the weighted average cost of capital and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. Energy investments are generally valued using a discounted cash flow approach, and where applicable, a market approach using comparable companies and transactions. Key inputs used in our valuations include (i) the weighted average cost of capital, (ii) future commodity prices, as quoted on indices and long-term commodity price forecasts, and (iii) the asset’s future operating performance. Real estate investments are generally valued using a combination of direct income capitalization and discounted cash flow analysis. Certain real estate investments are valued by KKR based on ranges of valuations determined by an independent valuation firm. Key inputs used in such methodologies that require estimates include an unlevered discount rate and current capitalization rate. The valuations of real assets investments also use other inputs. Credit Investments: Credit investments are valued using values obtained from dealers or market makers, and where these values are not available, credit investments are generally valued by KKR based on ranges of valuations determined by an independent valuation firm. Valuation models are based on discounted cash flow analyses, for which the key inputs are determined based on market comparables, which incorporate similar instruments from similar issuers. Real Estate Mortgage Loans: Real estate mortgage loans are illiquid, structured investments that are specific to the property and its operating performance. KKR engages an independent valuation firm to estimate the fair value of each loan. KKR reviews the quarterly loan valuation estimates provided by the independent valuation firm. These loans are generally valued using a discounted cash flow model using discount rates derived from observable market data applied to the capital structure of the respective sponsor and estimated property value. In the event that KKR's estimate of fair value differs from the fair value estimate provided by the independent valuation firm, KKR ultimately relies solely upon the valuation prepared by the investment personnel of KKR. Other Investments: With respect to other investments including equity method investments for which the fair value election has been made, KKR generally employs the same valuation methodologies as described above for private equity and real assets investments when valuing these other investments. Investments and Debt Obligations of Consolidated CMBS Vehicles: Under ASU 2014-13, KKR measures CMBS investments, which are reported within Investments of Consolidated CFEs on the basis of the fair value of the financial liabilities of the CMBS. Debt obligations of consolidated CMBS vehicles are valued based on discounted cash flow analyses. The key input is the expected yield of each CMBS security using both observable and unobservable factors, which may include recently offered or completed trades and published yields of similar securities, security-specific characteristics (e.g. securities ratings issued by nationally recognized statistical rating organizations, credit support by other subordinate securities issued by the CMBS and coupon type) and other characteristics. Key unobservable inputs that have a significant impact on KKR's Level III investment valuations as described above are included in Note 5 "Fair Value Measurements." KKR utilizes several unobservable pricing inputs and assumptions in determining the fair value of its Level III investments. These unobservable pricing inputs and assumptions may differ by investment and in the application of KKR's valuation methodologies. KKR's reported fair value estimates could vary materially if KKR had chosen to incorporate different unobservable pricing inputs and other assumptions or, for applicable investments, if KKR only used either the discounted cash flow methodology or the market comparables methodology instead of assigning a weighting to both methodologies. |
Fees and Other | Fees and Other Fees and Other, as detailed above, are accounted for as contracts with customers. Under ASC 606, Revenue from Contracts with Customers ("ASC 606"), KKR is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) KKR satisfies its performance obligation. In determining the transaction price, KKR has included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. 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 No 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 No 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 No 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 No Due from Affiliates Incentive Fees Investment funds and other vehicles Investment management services that result in achievement of minimum investment return levels Point in time at the end of the performance measurement period (quarterly or annually) if investment performance is achieved 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 No 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 No Due from Affiliates Oil and Gas Revenues Oil and gas wholesalers Delivery of oil liquids and gas Point in time when delivery has occurred and title has transferred Fixed consideration Typically shortly after delivery No Other Assets Consulting Fees Portfolio companies and other companies Consulting and other services Over time as services are rendered Fixed consideration Typically quarterly in arrears No 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 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 13 "Related Party Transactions." Management Fees KKR provides investment management services to investment funds, CLOs, and other vehicles in exchange for a management fee. Management fees are determined quarterly based on an annual rate and are generally based upon a percentage of the capital committed or capital invested during the investment period. Thereafter, management fees are generally based on a percentage of remaining invested capital, net asset value, gross assets or as otherwise defined in the respective contractual agreements. Since some of the factors that cause the fees to fluctuate are outside of KKR's control, management fees are considered to be constrained and are therefore not included in the transaction price. Additionally, after the contract is established there are no significant judgments made when determining the transaction price. Management fees earned from private equity funds generally range from 1.0% to 2.0% of committed capital during the fund's investment period and are generally 0.75% to 1.25% of invested capital after the expiration of the fund's investment period with subsequent reductions over time. Typically, an investment period is defined as a period of up to six years. The actual length of the investment period is often shorter due to the earlier deployment of committed capital. Management fees earned from real asset funds generally range from 0.75% to 1.5% and are generally based on the investment fund's average net asset value, capital commitments, or invested capital. Management fees earned from alternative and liquid credit funds generally range from 0.10% to 1.75% . Such rates may be based on the investment fund's average net asset value, gross assets or invested capital. Management fees earned from CLOs include senior collateral management fees and subordinate collateral management fees. When combined, senior collateral management fees and subordinate collateral management fees are determined based on an annual rate ranging from 0.40% to 0.50% of collateral. If amounts distributable on any payment date are insufficient to pay the collateral management fees according to the priority of payments, any shortfall is deferred and payable on subsequent payment dates. For the purpose of calculating the collateral management fees, collateral, the payment dates, and the priority of payments are terms defined in the management agreements. Management fees earned from KKR's consolidated investment funds, CLOs, and other vehicles are eliminated in consolidation. However, because these amounts are funded by, and earned from, noncontrolling interests, KKR's allocated share of the net income from the consolidated investment funds, CLOs, and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not impact the net income (loss) attributable to KKR or KKR stockholders' equity. Fee Credits Under the terms of the management agreements with certain of its investment funds, KKR is required to share with such funds an agreed upon percentage of certain fees, including monitoring and transaction fees earned from portfolio companies ("Fee Credits"). Investment funds earn Fee Credits only with respect to monitoring and transaction fees that are allocable to the fund's investment in the portfolio company and not, for example, any fees allocable to capital invested through co-investment vehicles. Fee Credits are calculated after deducting certain costs incurred in connection with pursuing potential investments that do not result in completed transactions ("broken-deal expenses") and generally amount to 80% for older funds, or 100% for newer funds, of allocable monitoring and transaction fees after broken-deal expenses are recovered, although the actual percentage may vary from fund to fund. Fee Credits are recognized and owed to investment funds concurrently with the recognition of monitoring fees, transaction fees and broken-deal expenses. Since Fee Credits are payable to investment funds, amounts owed are generally applied as a reduction of the management fee that is otherwise billed to the investment fund. Fee credits are recorded as a reduction of revenues in the consolidated statement of operations. Fee Credits owed to investment funds are recorded in Due to Affiliates on the consolidated statements of financial condition. See Note 13 "Related Party Transactions." Transaction Fees KKR (i) arranges debt and equity financing, places and underwrites securities offerings, and provides other types of capital markets services for companies seeking financing in its Capital Markets business line and (ii) provides advisory services in connection with successful Private Markets and Public Markets business line portfolio company investment transactions, in each case, in exchange for a transaction fee. Transaction fees are separately negotiated for each transaction and are generally based on (i) for Capital Markets business line transactions, a percentage of the overall transaction size and (ii) for Private Markets and Public Markets business line transactions, a percentage of either total enterprise value of an investment or a percentage of the aggregate price paid for an investment. After the contract is established, there are no significant judgments made when determining the transaction price. Monitoring Fees KKR provides services in connection with monitoring portfolio companies in exchange for a fee. Recurring monitoring fees are separately negotiated for each portfolio company. In addition, certain monitoring fee arrangements may provide for a termination payment following an initial public offering or change of control as defined in the contractual terms of the related agreement. These termination payments are recognized in the period when the related transaction closes. After the contract is established, there are no significant judgments made when determining the transaction price. Incentive Fees KKR provides investment management services to certain investment funds, CLOs and other vehicles in exchange for a management fee as discussed above and, in some cases an incentive fee when KKR is not entitled to a carried interest. Incentive fee rates generally range from 5% to 20% of investment gains. Incentive fees are considered a form of variable consideration as these fees are subject to reversal, and therefore the recognition of such fees is deferred until the end of each fund's measurement period when the performance-based incentive fees become fixed and determinable. Incentive fees are generally paid within 90 days of the end of the investment vehicles' measurement period. After the contract is established, there are no significant judgments made when determining the transaction price. Incentive fees earned from KKR's consolidated investment funds, CLOs, and other vehicles are eliminated in consolidation. However, because these amounts are funded by, and earned from, noncontrolling interests, KKR's allocated share of the net income from the consolidated investment funds, CLOs, and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not impact the net income (loss) attributable to KKR or KKR stockholders' equity. Expense Reimbursements Providing investment management services to investment funds and monitoring KKR’s portfolio companies require KKR to arrange for services on behalf of them. In those situations where KKR is acting as an agent on behalf of its investment funds or portfolio companies, it presents the cost of services on a net basis as a reduction of Revenues. In all other situations, KKR is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements for accounting purposes. As a result, the expense and related reimbursement associated with those services is presented on a gross basis. Costs incurred are classified within Expenses and reimbursements of such costs are classified as Expense Reimbursements within Revenues on the consolidated statements of operations. After the contract is established, there are no significant judgments made when determining the transaction price. Oil and Gas Revenue KKR directly holds certain working and royalty interests in oil and natural gas properties that are not held through investment funds. Oil and gas revenue is recognized when the performance obligation is satisfied, which occurs at the point in time when control of the product transfers to the customer. Performance obligations are typically satisfied through the monthly delivery of production. Revenue is recognized based on KKR's proportionate share of production from non-operated properties as marketed by the operator. After the contract is established, there are no significant judgments made when determining the transaction price. Consulting Fees Certain consolidated entities that employ non-employee operating consultants provide consulting and other services to portfolio companies and other companies in exchange for a consulting fee. Consulting fees are separately negotiated with each portfolio company for which services are provided and are not shared with KKR. After the contract is established, there are no significant judgments made when determining the transaction price. Capital Allocation-Based Income Capital allocation-based income is earned from those arrangements where KKR has a general partner capital interest and is entitled to a disproportionate allocation of investment income (referred to hereafter as "carried interest"). KKR accounts for its general partner interests in capital allocation-based arrangements as financial instruments under ASC 323, Investments - Equity Method and Joint Ventures ("ASC 323") since the general partner has significant governance rights in the investment funds in which it invests, which demonstrates significant influence. In accordance with ASC 323, KKR records equity method income based on the proportionate share of the income of the investment fund, including carried interest, assuming the investment fund was liquidated as of each reporting date pursuant to each investment fund's governing agreements. Accordingly, these general partner interests are accounted for outside of the scope of ASC 606. Other arrangements surrounding contractual incentive fees through an advisory contract are separate and distinct and accounted for in accordance with ASC 606. In these incentive fee arrangements, accounted for in accordance with ASC 606, KKR’s economics in the entity do not involve an allocation of capital. See "Incentive Fees" above. Carried interest is allocated to the general partner based on cumulative fund performance to date, and where applicable, subject to a preferred return to the funds' limited partners. At the end of each reporting period, KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as carried interest to reflect either (a) positive performance resulting in an increase in the carried interest allocated to the general partner or (b) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the carried interest recorded to date and to make the required positive or negative adjustments. KKR ceases to record negative carried interest allocations once previously recognized carried interest allocations for an investment fund have been fully reversed. KKR is not obligated to make payments for guaranteed returns or hurdles and, therefore, cannot have negative carried interest over the life of an investment fund. Accrued but unpaid carried interest as of the reporting date is reflected in Investments in the consolidated statements of financial condition. KKR earns management fees, incentive fees and capital allocation-based income from investment funds, CLOs, and other vehicles whose primary focus is making investments in specified geographical locations and earns transaction, monitoring, and consulting fees from portfolio companies located in varying geographies. For the years ended December 31, 2019, 2018, and 2017, over 10% of consolidated revenues were earned in the United States. For the year ended December 31, 2019, 55.8% , 21.5% and 22.7% of consolidated revenues were generated in the Americas, Europe/Middle East, and Asia, respectively. For the year ended December 31, 2018, 62.4% , 24.7% and 12.9% of consolidated revenues were generated in the Americas, Europe/Middle East, and Asia, respectively. For the year ended December 31, 2017, 64.5% , 21.1% and 14.4% of consolidated revenues were generated in the Americas, Europe/Middle East, and Asia, respectively. The determination of the geographic region was based on the geographic focus of the associated investment vehicle or where the portfolio company is headquartered. Oil and gas revenue is included within Americas since all KKR’s oil and natural gas properties are located in the United States. For the year ended December 31, 2019, revenues from two of KKR’s flagship funds represented approximately $1.1 billion of total consolidated revenues. For the year ended December 31, 2018, none of KKR's flagship funds contributed more than 10% of KKR's total consolidated revenues. For the year ended December 31, 2017, revenues from one of KKR’s flagship funds represented approximately $0.9 billion of total consolidated revenues. |
Compensation and Benefits | Compensation and Benefits Compensation and Benefits expense includes (i) cash compensation consisting of salaries, bonuses, and benefits, (ii) equity based compensation consisting of charges associated with the vesting of equity-based awards (see Note 12 "Equity Based Compensation") and (iii) carry pool allocations. All KKR employees and employees of certain consolidated entities receive a base salary that is paid by KKR or its consolidated entities, and is accounted for as Compensation and Benefits expense in the consolidated statements of operations. These employees are also eligible to receive discretionary cash bonuses based on performance, overall profitability and other matters. While cash bonuses paid to most employees are borne by KKR and certain consolidated entities and result in customary compensation and benefits expense, certain cash bonuses that are paid to certain of KKR's principals can be borne by KKR Holdings. These bonuses are funded with distributions that KKR Holdings receives on KKR Group Partnership Units held by KKR Holdings but are not then passed on to holders of unvested units of KKR Holdings. Because KKR principals are not entitled to receive distributions on units that are unvested, any amounts allocated to principals in excess of a principal's vested equity interests are reflected as employee compensation and benefits expense. These compensation charges, if any, are currently recorded based on the amount of cash expected to be paid by KKR Holdings. Carry Pool Allocation With respect to KKR's active and future funds and co-investment vehicles that provide for carried interest, KKR allocates to its employees and employees of certain consolidated entities a portion of the carried interest earned in relation to these funds as part of its carry pool. KKR currently allocates 40% or 43% , as applicable, of the carry it earns from these funds and vehicles to its carry pool. These amounts are accounted for as compensatory profit‑sharing arrangements in Accounts Payable, Accrued Expenses and Other Liabilities within the accompanying consolidated statements of financial condition in conjunction with the related carried interest income and recorded as compensation expense. Profit Sharing Plan KKR provides certain profit sharing programs for KKR employees and other eligible personnel. In particular, KKR provides a 401(k) plan for eligible employees in the United States. For certain professionals who are participants in the 401(k) plan, KKR may, in its discretion, contribute an amount after the end of the plan year. For the years ended December 31, 2019, 2018 and 2017, KKR incurred expenses of $10.2 million , $9.5 million and $ 8.2 million , respectively, in connection with the 401(k) plan and other profit sharing programs. |
General, Administrative and Other | General, Administrative and Other General, administrative and other expense consists primarily of professional fees paid to legal advisors, accountants, advisors and consultants, insurance costs, travel and related expenses, communications and information services, depreciation and amortization charges, expenses (including impairment charges) incurred by oil and gas entities that are consolidated, broken-deal expenses, placement fees and other general operating expenses. A portion of these general administrative and other expenses, in particular broken-deal expenses, are borne by fund investors. |
Investment Income | Investment Income Investment income consists primarily of the net impact of: (i) Realized and unrealized gains and losses on investments, securities sold short, derivatives and debt obligations of consolidated CFEs which are recorded in Net Gains (Losses) from Investment Activities. Upon disposition of an investment, previously recognized unrealized gains or losses are reversed and a realized gain or loss is recognized. (ii) Foreign exchange gains and losses relating to mark‑to‑market activity on foreign exchange forward contracts, foreign currency options and foreign denominated debt which are recorded in Net Gains (Losses) from Investment Activities. (iii) Dividends, which are recognized on the ex‑dividend date, or, in the absence of a formal declaration of a record date, on the date it is received. (iv) Interest income, which is recognized as earned. (v) |
Income Taxes | Income Taxes KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income. In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions. These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes. Prior to the Conversion, KKR & Co. L.P.’s investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all net income earned by KKR & Co. Inc. is subject to U.S. corporate income taxes. Deferred Income Taxes Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period when the change is enacted. Deferred tax assets, which are recorded in Other Assets within the statement of financial condition, are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When evaluating the realizability of the deferred tax assets, all evidence, both positive and negative, is considered. Items considered when evaluating the need for a valuation allowance include the ability to carry back losses, future reversals of existing temporary differences, tax planning strategies, and expectations of future earnings. For a particular tax‑paying component of an entity and within a particular tax jurisdiction, deferred tax assets and liabilities are offset and presented as a single amount within Other Assets or Accounts Payable, Accrued and Other Liabilities, as applicable, in the accompanying statements of financial condition. Uncertain Tax Positions KKR analyzes its tax filing positions in all of the U.S. federal, state and local tax jurisdictions and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, KKR determines that uncertainties in tax positions exist, a reserve is established. The reserve for uncertain tax positions is recorded in Accounts Payable, Accrued and Other Liabilities in the accompanying statements of financial condition. KKR recognizes accrued interest and penalties related to uncertain tax positions within the provision for income taxes in the consolidated statements of operations. KKR records uncertain tax positions on the basis of a two‑step process: (a) determination is made whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (b) those tax positions that meet the more‑likely‑than‑not threshold are recognized as the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Cash and Cash Equivalents | Cash and Cash Equivalents KKR considers all highly liquid short‑term investments with original maturities of 90 days or less when purchased to be cash equivalents. Cash and Cash Equivalents Held at Consolidated Entities Cash and cash equivalents held at consolidated entities represents cash that, although not legally restricted, is not available to fund general liquidity needs of KKR as the use of such funds is generally limited to the investment activities of KKR's investment funds and CFEs. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents primarily represent amounts that are held by third parties under certain of KKR's financing and derivative transactions. The duration of this restricted cash generally matches the duration of the related financing or derivative transaction. |
Due from and Due to Affiliates | Due from and Due to Affiliates KKR considers its principals and their related entities, unconsolidated investment funds and the portfolio companies of its funds to be affiliates for accounting purposes. Receivables from and payables to affiliates are recorded at their current settlement amount. |
Fixed Assets, Depreciation and Amortization | Fixed Assets, Depreciation and Amortization |
Freestanding Derivatives | Freestanding Derivatives Freestanding derivatives are instruments that KKR and certain of its consolidated funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include forward, swap and option contracts related to foreign currencies and interest rates to manage foreign exchange risk and interest rate risk arising from certain assets and liabilities. All derivatives are recognized in Other Assets or Accounts Payable, Accrued Expenses and Other Liabilities and are presented on a gross basis in the consolidated statements of financial condition and measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. KKR's derivative financial instruments contain credit risk to the extent that its counterparties may be unable to meet the terms of the agreements. KKR attempts to reduce this risk by limiting its counterparties to major financial institutions with strong credit ratings. |
Goodwill | Goodwill Goodwill represents the excess of acquisition cost over the fair value of net tangible and intangible assets acquired in connection with an acquisition. Goodwill is assessed for impairment annually in the third quarter of each fiscal year or more frequently if circumstances indicate impairment may have occurred. Goodwill is recorded in Other Assets in the accompanying consolidated statements of financial condition. |
Securities Sold Short | Securities Sold Short Whether part of a hedging transaction or a transaction in its own right, securities sold short represent obligations of KKR to deliver the specified security at the contracted price at a future point in time, and thereby create a liability to repurchase the security in the market at the prevailing prices. The liability for such securities sold short, which is recorded in Accounts Payable, Accrued Expenses and Other Liabilities in the statement of financial condition, is marked to market based on the current fair value of the underlying security at the reporting date with changes in fair value recorded as unrealized gains or losses in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. These transactions may involve market risk in excess of the amount currently reflected in the accompanying consolidated statements of financial condition. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from contributions from and distributions to owners. In the accompanying consolidated financial statements, comprehensive income is comprised of (i) Net Income (Loss), as presented in the consolidated statements of operations and (ii) net foreign currency translation. |
Foreign Currency | Foreign Currency Consolidated entities which have a functional currency that differs from KKR's reporting currency are primarily KKR's investment management and capital markets companies located outside the United States and certain CFEs. Foreign currency denominated assets and liabilities are translated using the exchange rates prevailing at the end of each reporting period. Results of foreign operations are translated at the weighted average exchange rate for each reporting period. Translation adjustments are included as a component of accumulated other comprehensive income (loss) until realized. Foreign currency income or expenses resulting from transactions outside of the functional currency of a consolidated entity are recorded as incurred in general, administrative and other expense in the consolidated statements of operations. |
Leases | Leases At contract inception, KKR determines if an arrangement contains a lease by evaluating whether (i) the identified asset has been deployed in the contract explicitly or implicitly and (ii) KKR obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. Additionally, at contract inception KKR will evaluate whether the lease is an operating or finance lease. Right-of-use (“ROU”) assets represent KKR’s right to use an underlying asset for the lease term and lease liabilities represent KKR’s obligation to make lease payments arising from the lease. ROU assets and the associated lease liabilities are recognized at the commencement date based on the present value of the future minimum lease payments over the lease term. The discount rate implicit in the lease is generally not readily determinable. Consequently, KKR uses its incremental borrowing rate based on the information available including, but not limited to, collateral assumptions, the term of the lease, and the economic environment in which the lease is denominated at the commencement date in determining the present value of the future lease payments. The ROU assets are recognized as the initial measurement of the lease liabilities plus any initial direct costs and any prepaid lease payments less lease incentives received, if any. The lease terms may include options to extend or terminate the lease which are accounted for when it is reasonably certain that KKR will exercise that option. Certain leases that include lease and non-lease components are accounted for as one single lease component. In addition to contractual rent payments, occupancy lease agreements generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these are fixed or determinable, they are included as part of the lease payments used to measure the Operating Lease Liability. Operating lease expense is recognized on a straight-line basis over the lease term and is recorded within Occupancy and Related Charges in the accompanying consolidated statements of operations. The ROU assets are included in Other Assets and the lease liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted in 2019 Leases In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASC 842") which has subsequently been amended. This guidance, among other items: (i) requires recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP, ASC 840; (ii) retains a distinction between finance leases and operating leases; and (iii) includes the classification criteria for distinguishing between finance leases and operating leases that are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under ASC 840. The only material lease activity KKR is engaged in is the leasing of office space where KKR is the lessee under the terms of lease agreements, which have been determined to be operating leases. For operating leases, a lessee is required to: (a) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the consolidated statement of financial condition; (b) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis, and (c) classify all cash payments within operating activities in the consolidated statement of cash flows. KKR adopted this guidance on the effective date, January 1, 2019, using the modified retrospective approach and electing the "Comparatives Under ASC 840 Approach." The Comparatives Under ASC 840 Approach allows an entity to elect not to recast its comparative periods in the period of adoption when transitioning to ASC 842. In doing so, KKR has provided the disclosures required by ASC 840 for the comparative periods. Additionally, KKR has elected the practical expedient package transition election for all leases. The practical expedient package under the new standard allows an entity not to have to reassess its prior conclusions about lease identification, lease classification and initial direct costs. KKR also has made the election under ASC 842 to account for lease and non-lease components as a single lease component. Upon adoption, KKR recorded ROU assets of $153.3 million and lease liabilities of $162.9 million , resulting in no cumulative-effect adjustment to retained earnings as of January 1, 2019. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"). This guidance amends the amortization period for certain purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. The guidance does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years and interim periods beginning after December 15, 2018. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). Under ASC 740-10-45-15, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of tax expense for the period in which the law was enacted, even if the assets and liabilities related to items of accumulated other comprehensive income ("OCI"). ASU 2018-02 allows entities to elect to reclassify from accumulated OCI to retained earnings stranded tax effects that relate to the Tax Cuts and Jobs Act, which was enacted in December 2017 (the "2017 Tax Act") from the change in federal tax rate for all items accounted for in OCI. Entities can also elect to reclassify other stranded tax effects that relate to the 2017 Tax Act, but do not directly relate to the change in the federal tax rate. Tax effects that are stranded in OCI for other reasons may not be reclassified. In the period of adoption, entities that elect to reclassify the income tax effects of the 2017 Tax Act from accumulated OCI to retained earnings must disclose that they made such an election. Entities must also disclose a description of other income tax effects related to the 2017 Tax Act that are reclassified from accumulated OCI to retained earnings, if any. The guidance is effective for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR. KKR did not elect to reclassify stranded tax effects that relate to the 2017 Tax Act from accumulated OCI to retained earnings for all items accounted for in OCI. KKR's policy for releasing income tax effects from accumulated OCI is when all related units of account are liquidated, sold or extinguished. Effective on January 1, 2020 Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which has subsequently been amended by ASU No. 2018-19, ASU No. 2019-04, ASU No. 2019-05, and ASU No. 2019-11. The objective of the guidance in ASU 2016-13 is to allow entities to recognize estimated credit losses in the period that the change in valuation occurs. ASU 2016-13 requires an entity to present financial assets measured on an amortized cost basis on the balance sheet net of an allowance for credit losses. Available for sale and held to maturity debt securities are also required to be held net of an allowance for credit losses. The guidance is effective for fiscal periods beginning after December 15, 2019. The guidance should be applied using a modified retrospective approach. KKR is currently evaluating the impact of this guidance on the financial statements. Goodwill In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance simplifies the accounting for goodwill impairments by eliminating the second step from the goodwill impairment test. The ASU requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit's carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. The ASU also (i) clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and (ii) clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is allowed for entities as of January 1, 2017, for annual and any interim impairment tests occurring after January 1, 2017. KKR is currently evaluating the impact of this guidance on the financial statements. Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU No. 2018-15, which addresses a customer’s accounting for implementation costs incurred in a cloud computing arrangement ("CCA") that is a service contract. The ASU aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is permitted and this ASU can be applied on either a retrospective or prospective basis. KKR is currently evaluating the impact of this guidance on the financial statements. Effective on January 1, 2021 Simplifying the Accounting for Income Taxes |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Redeemable Noncontrolling Interests represent noncontrolling interests of certain investment funds and vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time (typically one year), or may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn. Fund investors interests subject to redemption as described above are presented as Redeemable Noncontrolling Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. |
Noncontrolling Interests | Net income (loss) attributable to each of KKR & Co. Inc. Class A common stockholders and KKR Holdings, with the exception of certain tax assets and liabilities that are directly allocable to KKR & Co. Inc., is attributed based on the percentage of the weighted average KKR Group Partnership Units directly or indirectly held by KKR & Co. Inc. and KKR Holdings, each of which directly or indirectly holds equity of the KKR Group Partnerships. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings, (ii) the periodic exchange of KKR Holdings units for KKR & Co. Inc. Class A common stock pursuant to the exchange agreement and (iii) the contribution of certain expenses borne entirely by KKR associated with the Equity Incentive Plans, equity allocations shown in the consolidated statement of changes in equity differ from their respective pro rata ownership interests in KKR's net assets. Noncontrolling Interests Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings. Noncontrolling Interests in Consolidated Entities Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by: (i) third party fund investors in KKR's consolidated funds and certain other entities; (ii) third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015; (iii) certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009; (iv) certain principals and former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; and (v) third parties in KKR's capital markets business line. Noncontrolling Interests held by KKR Holdings |
ORGANIZATION ORGANIZATION (Tabl
ORGANIZATION ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effect of Changes in Ownership Interest | The following table presents the effect of changes in the ownership interest in the KKR Group Partnerships on KKR: For the Years Ended December 31, 2019 2018 2017 Net income (loss) attributable to KKR & Co. Inc. $ 2,005,049 $ 1,131,063 $ 1,018,305 Transfers from noncontrolling interests: Exchange of KKR Group Partnership shares held by KKR Holdings L.P. (1) 161,270 570,898 247,946 Change from net income (loss) attributable to KKR & Co. Inc. and transfers from noncontrolling interests held by KKR Holdings $ 2,166,319 $ 1,701,961 $ 1,266,251 (1) Increase in KKR's stockholders' equity for exchange of 8,699,894 , 36,890,095 , and 17,786,064 KKR Group Partnerships units for the years ended December 31, 2019, 2018, and 2017, respectively, held by KKR Holdings L.P., inclusive of deferred taxes. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of fees | For the years ended December 31, 2019 , 2018 , and 2017 respectively, revenues consisted of the following: For the Years Ended December 31, 2019 2018 2017 Management Fees $ 824,903 $ 724,558 $ 700,245 Fee Credits (340,900 ) (231,943 ) (257,401 ) Transaction Fees 914,329 988,954 783,952 Monitoring Fees 106,289 87,545 82,238 Incentive Fees — 14,038 4,601 Expense Reimbursements 169,415 146,989 121,927 Oil and Gas Revenue 47,153 51,465 63,460 Consulting Fees 69,286 59,720 42,582 Total Fees and Other 1,790,475 1,841,326 1,541,604 Carried Interest 2,041,847 441,529 1,740,661 General Partner Capital Interest 388,578 112,981 275,015 Total Capital Allocation-Based Income 2,430,425 554,510 2,015,676 Total Revenues $ 4,220,900 $ 2,395,836 $ 3,557,280 |
Revenue from External Customers by Products and Services | 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 No 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 No 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 No 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 No Due from Affiliates Incentive Fees Investment funds and other vehicles Investment management services that result in achievement of minimum investment return levels Point in time at the end of the performance measurement period (quarterly or annually) if investment performance is achieved 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 No 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 No Due from Affiliates Oil and Gas Revenues Oil and gas wholesalers Delivery of oil liquids and gas Point in time when delivery has occurred and title has transferred Fixed consideration Typically shortly after delivery No Other Assets Consulting Fees Portfolio companies and other companies Consulting and other services Over time as services are rendered Fixed consideration Typically quarterly in arrears No 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 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 13 "Related Party Transactions." |
NET GAINS (LOSSES) FROM INVES_2
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of total net gains (losses) from investment activities | The following table summarizes total Net Gains (Losses) from Investment Activities for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 261,920 $ 2,849,031 $ 3,110,951 Credit (1) (92,114 ) (150,881 ) (242,995 ) Investments of Consolidated CFEs (1) (57,230 ) 270,268 213,038 Real Assets (1) 93,848 (128,393 ) (34,545 ) Equity Method - Other (1) 70,385 540,775 611,160 Other Investments (1) 53,688 (240,548 ) (186,860 ) Foreign Exchange Forward Contracts and Options (2) 161,175 20,309 181,484 Securities Sold Short (2) 54,707 (53,483 ) 1,224 Other Derivatives (2) (19,584 ) (36,918 ) (56,502 ) Debt Obligations and Other (3) (29,449 ) (405,622 ) (435,071 ) Net Gains (Losses) From Investment Activities $ 497,346 $ 2,664,538 $ 3,161,884 For the Year Ended December 31, 2018 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 184,784 $ 708,600 $ 893,384 Credit (1) (354,090 ) (420,434 ) (774,524 ) Investments of Consolidated CFEs (1) (83,719 ) (452,331 ) (536,050 ) Real Assets (1) 92,885 67,999 160,884 Equity Method - Other (1) (3,991 ) 339,027 335,036 Other Investments (1) (239,081 ) (434,537 ) (673,618 ) Foreign Exchange Forward Contracts and Options (2) (90,625 ) 266,938 176,313 Securities Sold Short (2) 750,007 26,465 776,472 Other Derivatives (2) (13,273 ) 1,037 (12,236 ) Debt Obligations and Other (3) 291,755 617,416 909,171 Net Gains (Losses) From Investment Activities $ 534,652 $ 720,180 $ 1,254,832 For the Year Ended December 31, 2017 Net Realized Net Unrealized Total Private Equity (1) $ 223,568 $ 338,720 $ 562,288 Credit (1) (470,487 ) 423,603 (46,884 ) Investments of Consolidated CFEs (1) (97,129 ) 352 (96,777 ) Real Assets (1) (18,722 ) 218,728 200,006 Equity Method - Other (1) 34,190 95,968 130,158 Other Investments (1) (796,348 ) 65,516 (730,832 ) Foreign Exchange Forward Contracts and Options (2) (31,772 ) (342,849 ) (374,621 ) Securities Sold Short (2) 1,116,325 97,811 1,214,136 Other Derivatives (2) (7,129 ) (23,687 ) (30,816 ) Debt Obligations and Other (3) 85,820 15,666 101,486 Net Gains (Losses) From Investment Activities $ 38,316 $ 889,828 $ 928,144 (1) See Note 4 "Investments." (2) See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." (3) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Summary of investments | Investments consist of the following: December 31, 2019 December 31, 2018 Private Equity $ 12,923,600 $ 7,349,559 Credit 10,538,139 9,099,135 Investments of Consolidated CFEs 14,948,237 14,733,423 Real Assets 3,567,944 3,157,954 Equity Method - Other 4,846,949 4,212,874 Equity Method - Capital Allocation-Based Income 5,329,368 3,584,415 Other Investments 2,782,031 2,770,622 Total Investments $ 54,936,268 $ 44,907,982 |
Equity Method Investments | The following table shows summarized financial information relating to the statements of financial condition for all of KKR's equity method investments assuming 100% ownership as of December, 31, 2019 and 2018: December 31, 2019 December 31, 2018 Total Assets $ 112,688,482 $ 93,577,773 Total Liabilities $ 22,622,609 $ 21,296,194 Total Equity $ 90,065,873 $ 72,281,579 The following table shows summarized financial information relating to the statements of operations for all of KKR's equity method investments assuming 100% ownership for the years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, 2019 2018 2017 Investment Related Revenues $ 2,552,266 $ 1,679,950 $ 1,167,038 Other Revenues 5,132,796 5,304,634 3,002,987 Investment Related Expenses 1,385,870 1,258,782 482,336 Other Expenses 4,066,713 3,602,612 2,392,965 Net Realized and Unrealized Gain/(Loss) from Investments 10,532,988 1,818,861 9,217,912 Net Income (Loss) $ 12,765,467 $ 3,942,051 $ 10,512,636 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities at fair value | The following tables summarize the valuation of assets and liabilities measured and reported at fair value by the fair value hierarchy. Investments classified as Equity Method - Other, for which the fair value option has not been elected, and Equity Method - Capital Allocation-Based Income have been excluded from the tables below. Assets, at fair value: December 31, 2019 Level I Level II Level III Total Private Equity $ 1,393,654 $ 1,658,264 $ 9,871,682 $ 12,923,600 Credit — 1,320,380 9,217,759 10,538,139 Investments of Consolidated CFEs — 14,948,237 — 14,948,237 Real Assets — — 3,567,944 3,567,944 Equity Method - Other 228,999 49,511 1,656,045 1,934,555 Other Investments 431,084 196,192 2,154,755 2,782,031 Total Investments 2,053,737 18,172,584 26,468,185 46,694,506 Foreign Exchange Contracts and Options — 188,572 — 188,572 Other Derivatives — 1,333 21,806 (1) 23,139 Total Assets $ 2,053,737 $ 18,362,489 $ 26,489,991 $ 46,906,217 December 31, 2018 Level I Level II Level III Total Private Equity $ 1,156,977 $ 63,999 $ 6,128,583 $ 7,349,559 Credit — 2,334,405 6,764,730 9,099,135 Investments of Consolidated CFEs — 12,650,878 2,082,545 14,733,423 Real Assets — — 3,157,954 3,157,954 Equity Method - Other 245,225 43,943 1,503,022 1,792,190 Other Investments 480,192 173,844 2,116,586 2,770,622 Total Investments 1,882,394 15,267,069 21,753,420 38,902,883 Foreign Exchange Contracts and Options — 177,264 — 177,264 Other Derivatives — 3,879 37,116 (1) 40,995 Total Assets $ 1,882,394 $ 15,448,212 $ 21,790,536 $ 39,121,142 (1) Includes derivative assets that were valued using a third-party valuation firm. The approach used to estimate the fair value of these derivative assets was generally the discounted cash flow method, which includes consideration of the current portfolio, projected portfolio construction, projected portfolio realizations, portfolio volatility (based on the volatility, correlation, and size of each underlying asset class), and the discounting of future cash flows to the reporting date. Liabilities, at fair value: December 31, 2019 Level I Level II Level III Total Securities Sold Short $ 251,223 $ — $ — $ 251,223 Foreign Exchange Contracts and Options — 39,364 — 39,364 Unfunded Revolver Commitments — — 75,842 (1) 75,842 Other Derivatives — 34,174 — 34,174 Debt Obligations of Consolidated CFEs — 14,658,137 — 14,658,137 Total Liabilities $ 251,223 $ 14,731,675 $ 75,842 $ 15,058,740 December 31, 2018 Level I Level II Level III Total Securities Sold Short $ 344,124 $ — $ — $ 344,124 Foreign Exchange Contracts and Options — 60,749 — 60,749 Unfunded Revolver Commitments — — 52,066 (1) 52,066 Other Derivatives — 18,440 17,200 (2) 35,640 Debt Obligations of Consolidated CFEs — 12,081,771 1,876,783 13,958,554 Total Liabilities $ 344,124 $ 12,160,960 $ 1,946,049 $ 14,451,133 (1) These unfunded revolver commitments are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (2) Includes options issued in connection with the acquisition of the equity interest in Marshall Wace and its affiliates in November 2015 to increase KKR's ownership interest in periodic increments. The options are valued using a Monte-Carlo simulation valuation methodology. Key inputs used in this methodology that require estimates include Marshall Wace's dividend yield, assets under management volatility and equity volatility. See Note 4 "Investments." |
Summary of changes in assets and liabilities reported at fair value for which Level III inputs have been used to determine fair value | The following tables summarize changes in investments and debt obligations measured and reported at fair value for which Level III inputs have been used to determine fair value for the years ended December 31, 2019 and 2018, respectively: For the Year Ended December 31, 2019 Level III Investments Level III Private Credit Investments of Real Assets Equity Method - Other Other Investments Total Debt Balance, Beg. of Period $ 6,128,583 $ 6,764,730 $ 2,082,545 $ 3,157,954 $ 1,503,022 $ 2,116,586 $ 21,753,420 $ 1,876,783 Transfers In / (Out) Due to Changes in Consolidation 23,123 956,402 (2,015,130 ) — — (42,864 ) (1,078,469 ) (1,849,206 ) Transfers In 26,045 149,804 — 18,429 26,520 — 220,798 — Transfers Out (491,723 ) (10,248 ) — — (143,620 ) (36,018 ) (681,609 ) — Asset Purchases / Debt Issuances 3,179,376 4,600,626 — 927,477 414,393 829,992 9,951,864 — Sales / Paydowns (353,684 ) (3,032,887 ) (62,334 ) (501,371 ) (303,196 ) (516,346 ) (4,769,818 ) — Settlements — 39,424 — — — — 39,424 (26,770 ) Net Realized Gains (Losses) 114,812 (55,948 ) (2,759 ) 93,848 17,496 52,757 220,206 — Net Unrealized Gains (Losses) 1,245,150 (177,954 ) (2,322 ) (128,393 ) 141,430 (249,352 ) 828,559 (807 ) Change in Other Comprehensive Income — (16,190 ) — — — — (16,190 ) — Balance, End of Period $ 9,871,682 $ 9,217,759 $ — $ 3,567,944 $ 1,656,045 $ 2,154,755 $ 26,468,185 $ — Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date $ 1,316,857 $ (208,744 ) $ — $ (90,583 ) $ 149,519 $ (230,726 ) $ 936,323 $ — For the Year Ended December 31, 2018 Level III Investments Level III Private Equity Credit Investments of Consolidated CFEs Real Assets Equity Method - Other Other Investments Total Debt Obligations of Consolidated CFEs Balance, Beg. of Period $ 2,172,290 $ 5,138,937 $ 5,353,090 $ 2,251,267 $ 1,076,709 $ 1,760,011 $ 17,752,304 $ 5,238,236 Transfers In / (Out) Due to Changes in Consolidation 928,217 770,677 (4,153,641 ) — — 1,065 (2,453,682 ) (4,045,957 ) Transfers In — 154,255 1,000,000 — — 38,782 1,193,037 — Transfers Out (52,568 ) (1,030,072 ) — — — — (1,082,640 ) — Asset Purchases / Debt Issuances 2,383,277 4,265,569 — 1,309,390 657,332 814,407 9,429,975 800,350 Sales / Paydowns (142,067 ) (1,932,299 ) (31,280 ) (545,686 ) (141,806 ) (350,484 ) (3,143,622 ) — Settlements — (1,350 ) — — — — (1,350 ) (20,722 ) Net Realized Gains (Losses) 41,614 (236,595 ) 13,000 55,966 (149,825 ) 20,745 (255,095 ) — Net Unrealized Gains (Losses) 797,820 (294,417 ) (98,624 ) 87,017 60,612 (167,940 ) 384,468 (95,124 ) Change in Other Comprehensive Income — (69,975 ) — — — — (69,975 ) — Balance, End of Period $ 6,128,583 $ 6,764,730 $ 2,082,545 $ 3,157,954 $ 1,503,022 $ 2,116,586 $ 21,753,420 $ 1,876,783 Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date $ 808,637 $ (197,159 ) $ (98,624 ) $ 68,215 $ (86,009 ) $ (120,413 ) $ 374,647 $ (95,124 ) |
Summary of valuation methodologies used for assets, measured at fair value and categorized within Level III | The following table presents additional information about valuation methodologies and significant unobservable inputs used for investments that are measured and reported at fair value and categorized within Level III as of December 31, 2019 : Fair Value December 31, 2019 Valuation Methodologies Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) Private Equity $ 9,871,682 Private Equity $ 7,608,566 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 6.7% 5.0% - 15.0% Decrease Weight Ascribed to Market Comparables 25.2% 0.0% - 75.0% (4) Weight Ascribed to Discounted Cash Flow 60.0% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 14.8% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 14.7x 8.0x - 26.0x Increase Enterprise Value/Forward EBITDA Multiple 15.0x 8.7x - 23.9x Increase Discounted cash flow Weighted Average Cost of Capital 9.5% 6.7% - 15.4% Decrease Enterprise Value/LTM EBITDA Exit Multiple 12.7x 6.0x - 15.0x Increase Growth Equity $ 2,263,116 Inputs to market comparables, discounted cash flow and milestones Illiquidity Discount 11.7% 10.0% - 40.0% Decrease Weight Ascribed to Market Comparables 37.6% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 0.4% 0.0% - 37.5% (5) Weight Ascribed to Milestones 62.0% 0.0% - 100.0% (6) Scenario Weighting Base 60.8% 40.0% - 70.0% Increase Downside 14.0% 5.0% - 45.0% Decrease Upside 25.2% 5.0% - 45.0% Increase Credit $ 9,217,759 Yield Analysis Yield 6.3% 5.3% - 25.2% Decrease Net Leverage 5.5x 1.2x - 14.1x Decrease EBITDA Multiple 10.5x 0.2x - 27.4x Increase Real Assets $ 3,567,944 (9) Energy $ 1,686,783 Discounted cash flow Weighted Average Cost of Capital 11.6% 8.5% - 17.6% Decrease Average Price Per BOE (8) $38.73 $35.21 - $40.70 Increase Real Estate $ 1,671,221 Inputs to direct income capitalization and discounted cash flow Weight Ascribed to Direct Income Capitalization 33.9% 0.0% - 100.0% (7) Weight Ascribed to Discounted Cash Flow 66.1% 0.0% - 100.0% (5) Direct income capitalization Current Capitalization Rate 5.9% 4.9% - 11.0% Decrease Discounted cash flow Unlevered Discount Rate 7.6% 4.9% - 18.0% Decrease Equity Method - Other $ 1,656,045 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 8.2% 5.0% - 15.0% Decrease Weight Ascribed to Market Comparables 37.4% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 37.9% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 24.7% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 12.3x 8.0x - 17.0x Increase Enterprise Value/Forward EBITDA Multiple 11.3x 10.2x - 14.4x Increase Discounted cash flow Weighted Average Cost of Capital 8.8% 5.6% - 13.1% Decrease Enterprise Value/LTM EBITDA Exit Multiple 10.5x 6.0x - 12.5x Increase Other Investments $ 2,154,755 (10) Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 9.5% 0.0% - 20.0% Decrease Weight Ascribed to Market Comparables 29.6% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 41.0% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 29.4% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 12.6x 1.8x - 27.4x Increase Enterprise Value/Forward EBITDA Multiple 11.3x 0.2x - 13.5x Increase Discounted cash flow Weighted Average Cost of Capital 14.9% 7.7% - 43.8% Decrease Enterprise Value/LTM EBITDA Exit Multiple 9.7x 3.7x - 12.7x Increase (1) In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the investments and debt obligations. LTM means last twelve months and EBITDA means earnings before interest, taxes, depreciation and amortization. (2) Inputs were weighted based on the fair value of the investments included in the range. (3) Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. (4) The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price. (5) The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III investments if the discounted cash flow approach results in a higher valuation than the market comparables approach, transaction price and direct income capitalization approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach, transaction price and direct income capitalization approach. (6) The directional change from an increase in the weight ascribed to the transaction price or milestones would increase the fair value of the Level III investments if the transaction price or milestones results in a higher valuation than the market comparables and discounted cash flow approach. The opposite would be true if the transaction price or milestones results in a lower valuation than the market comparables approach and discounted cash flow approach. (7) The directional change from an increase in the weight ascribed to the direct income capitalization approach would increase the fair value of the Level III investments if the direct income capitalization approach results in a higher valuation than the discounted cash flow approach. The opposite would be true if the direct income capitalization approach results in a lower valuation than the discounted cash flow approach. (8) The total energy fair value amount includes multiple investments (in multiple locations throughout North America) that are held in multiple investment funds and produce varying quantities of oil, condensate, natural gas liquids, and natural gas. Commodity price may be measured using a common volumetric equivalent where one barrel of oil equivalent ("BOE"), is determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids. The price per BOE is provided to show the aggregate of all price inputs for the various investments over a common volumetric equivalent although the valuations for specific investments may use price inputs specific to the asset for purposes of our valuations. The discounted cash flows include forecasted production of liquids (oil, condensate, and natural gas liquids) and natural gas with a forecasted revenue ratio of approximately 89% liquids and 11% natural gas. (9) Includes one Infrastructure investment for $209.9 million that was valued using a market comparables and discounted cash flow analysis; weights ascribed were 25% and 75% , respectively. The significant inputs used in the market comparables approach included the Forward EBITDA multiple 11.7 x. The significant inputs used in the discounted cash flow approach included the weighted average cost of capital 7.0% and the enterprise value/LTM EBITDA exit multiple 10.0 x. (10) Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit, equity method - other or investments of consolidated CFEs. |
FAIR VALUE OPTION (Tables)
FAIR VALUE OPTION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of disclosures of financial instruments for which the fair value option was elected | The following table summarizes the financial instruments for which the fair value option has been elected: December 31, 2019 December 31, 2018 Assets Private Equity $ — $ 2,977 Credit 6,451,765 4,950,819 Investments of Consolidated CFEs 14,948,237 14,733,423 Real Assets 222,488 310,399 Equity Method - Other 1,934,555 1,792,190 Other Investments 395,637 235,012 Total $ 23,952,682 $ 22,024,820 Liabilities Debt Obligations of Consolidated CFEs $ 14,658,137 $ 13,958,554 Total $ 14,658,137 $ 13,958,554 The following table presents the net realized and unrealized gains (losses) on financial instruments for which the fair value option was elected for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 Net Realized Net Unrealized Total Assets Private Equity $ — $ 194 $ 194 Credit (67,279 ) (203,666 ) (270,945 ) Investments of Consolidated CFEs (57,230 ) 270,268 213,038 Real Assets 737 (2,038 ) (1,301 ) Equity Method - Other 17,373 157,291 174,664 Other Investments 2,652 (24,130 ) (21,478 ) Total $ (103,747 ) $ 197,919 $ 94,172 Liabilities Debt Obligations of Consolidated CFEs $ (2,368 ) $ (362,783 ) $ (365,151 ) Total $ (2,368 ) $ (362,783 ) $ (365,151 ) For the Year Ended December 31, 2018 Net Realized Net Unrealized Gains (Losses) Total Assets Private Equity $ (4,907 ) $ 5,355 $ 448 Credit (245,737 ) (148,150 ) (393,887 ) Investments of Consolidated CFEs (83,719 ) (452,331 ) (536,050 ) Real Assets 11,184 (11,446 ) (262 ) Equity Method - Other (150,225 ) 16,916 (133,309 ) Other Investments (13,838 ) (19,468 ) (33,306 ) Total $ (487,242 ) $ (609,124 ) $ (1,096,366 ) Liabilities Debt Obligations of Consolidated CFEs $ 4,371 $ 521,101 $ 525,472 Total $ 4,371 $ 521,101 $ 525,472 For the Year Ended December 31, 2017 Net Realized Net Unrealized Total Assets Private Equity $ (1,386 ) $ 38,791 $ 37,405 Credit (464,512 ) 78,282 (386,230 ) Investments of Consolidated CFEs (97,129 ) 352 (96,777 ) Real Assets 13,112 44,136 57,248 Equity Method - Other 18,883 (2,635 ) 16,248 Other (32,217 ) 24,923 (7,294 ) Total $ (563,249 ) $ 183,849 $ (379,400 ) Liabilities Debt Obligations of Consolidated CFEs $ 83,146 $ 11,768 $ 94,914 Total $ 83,146 $ 11,768 $ 94,914 |
NET INCOME (LOSS) ATTRIBUTABL_2
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted Net Income (Loss) attributable to KKR & Co. per share of Class A common stock | For the years ended December 31, 2019 , 2018 , and 2017, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of Class A common stock were calculated as follows: For the Years Ended December 31, 2019 2018 2017 Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders $ 1,971,685 $ 1,097,699 $ 984,941 Excess of carrying value over consideration transferred on redemption of KFN 7.375% Series A LLC Preferred Shares — 3,102 — Net Income (Loss) Available to KKR & Co. Inc. Class A Common Stockholders $ 1,971,685 $ 1,100,801 $ 984,941 Basic Net Income (Loss) Per Share of Class A Common Stock Weighted Average Shares of Class A Common Stock Outstanding - Basic 545,096,999 514,102,571 468,282,642 Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Basic $ 3.62 $ 2.14 $ 2.10 Diluted Net Income (Loss) Per Share of Class A Common Stock Weighted Average Shares of Class A Common Stock Outstanding - Basic 545,096,999 514,102,571 468,282,642 Weighted Average Unvested Shares of Class A Common Stock and Other Exchangeable Securities 12,590,513 19,604,468 38,006,329 Weighted Average Shares of Class A Common Stock Outstanding - Diluted 557,687,512 533,707,039 506,288,971 Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted $ 3.54 $ 2.06 $ 1.95 |
Schedule of KKR Holdings shares excluded from the calculation of diluted Net Income (Loss) attributable to KKR & Co. L.P. per share of Class A Common Stock - Diluted | For the years ended December 31, 2019 , 2018 , and 2017, KKR Holdings units have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted since the exchange of these units would not dilute KKR's respective ownership interests in the KKR Group Partnerships. For the Years Ended December 31, 2019 2018 2017 Weighted Average KKR Holdings Units 296,445,196 314,458,757 344,422,095 |
OTHER ASSETS AND ACCOUNTS PAY_2
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of other assets | Other Assets consist of the following: December 31, 2019 December 31, 2018 Unsettled Investment Sales (1) $ 86,033 $ 101,789 Receivables 26,893 27,258 Due from Broker (2) 65,154 396,512 Oil & Gas Assets, net (3) 215,243 225,256 Deferred Tax Assets, net 158,574 538,161 Interest Receivable 156,026 241,547 Fixed Assets, net (4) 633,025 451,206 Foreign Exchange Contracts and Options (5) 188,572 177,264 Goodwill (6) 83,500 83,500 Derivative Assets 23,139 40,995 Prepaid Taxes 84,462 69,165 Prepaid Expenses 14,596 23,551 Operating Lease Right of Use Assets (7) 121,101 — Deferred Financing Costs 12,374 13,871 Other 139,544 146,617 Total $ 2,008,236 $ 2,536,692 (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) Includes proved and unproved oil and natural gas properties under the successful efforts method of accounting, which is net of impairment write-downs, accumulated depreciation, depletion and amortization. Depreciation, depletion and amortization of $31.4 million , $22.3 million and $24.7 million for the years ended December 31, 2019 , 2018, and 2017, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. (4) Net of accumulated depreciation and amortization of $132.7 million and $113.5 million as of December 31, 2019 and 2018, respectively. Depreciation and amortization expense of $17.7 million , $15.0 million and $15.3 million for the years ended December 31, 2019 , 2018, and 2017, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. (5) 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 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments. (6) As of December 31, 2019 , the carrying value of goodwill is recorded and assessed for impairment at the reporting unit. (7) KKR’s 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. For the year ended December 31, 2019 , the operating lease cost was $48.0 million . |
Schedule of accounts payable, accrued expenses and other liabilities | Accounts Payable, Accrued Expenses and Other Liabilities consist of the following: December 31, 2019 December 31, 2018 Amounts Payable to Carry Pool (1) $ 1,448,879 $ 922,977 Unsettled Investment Purchases (2) 481,337 541,165 Securities Sold Short (3) 251,223 344,124 Derivative Liabilities 34,174 35,640 Accrued Compensation and Benefits 131,719 107,887 Interest Payable 234,165 212,969 Foreign Exchange Contracts and Options (4) 39,364 60,749 Accounts Payable and Accrued Expenses 118,454 130,554 Taxes Payable 32,682 24,453 Uncertain Tax Positions 65,716 66,775 Unfunded Revolver Commitments 75,842 52,066 Operating Lease Liabilities (5) 125,086 — Other Liabilities 58,922 244,631 Total $ 3,097,563 $ 2,743,990 (1) Represents the amount of carried interest payable to principals, professionals and other individuals with respect to KKR's active 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 3 "Net Gains (Losses) from Investment Activities" 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 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments. (5) KKR’s operating leases have remaining lease terms that range from approximately one year to 14 years, some of which include options to extend the leases for up to three years . As of December 31, 2019 , the weighted average remaining lease term and weighted average discount rate were 4.46 years and 2.53% , respectively. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of maximum exposure to loss, before allocations to the carry pool, if any, for VIEs | As of December 31, 2019 and 2018, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has a variable interest is as follows: December 31, 2019 December 31, 2018 Investments $ 5,329,368 $ 3,610,502 Due from (to) Affiliates, net 439,374 410,489 Maximum Exposure to Loss $ 5,768,742 $ 4,020,991 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | KKR's borrowings consisted of the following: December 31, 2019 December 31, 2018 Financing Available Borrowing Outstanding Fair Value Financing Available Borrowing Outstanding Fair Value Revolving Credit Facilities: Corporate Credit Agreement $ 1,000,000 $ — $ — $ 1,000,000 $ — $ — KCM Credit Agreement 444,904 — — 451,338 — — KCM Short-Term Credit Agreement 750,000 — — 750,000 — — Notes Issued: KKR Issued 6.375% Notes Due 2020 (1) — — — — 498,975 523,500 (13) KKR Issued 3.750% Notes Due 2029 (2) — 493,962 533,505 (13) — — — KKR Issued 5.500% Notes Due 2043 (3) — 492,175 613,415 (13) — 491,836 508,615 (13) KKR Issued 5.125% Notes Due 2044 (4) — 991,106 1,186,670 (13) — 990,740 974,320 (13) KKR Issued 0.509% Notes Due 2023 (5) — 228,280 228,026 (13) — 226,895 227,298 (13) KKR Issued 0.764% Notes Due 2025 (6) — 45,255 45,856 (13) — 44,923 45,161 (13) KKR Issued 1.595% Notes Due 2038 (7) — 93,325 98,524 (13) — 92,817 94,568 (13) KKR Issued 1.625% Notes Due 2029 (8) — 718,478 758,903 (14) — — — KFN Issued 5.500% Notes Due 2032 (9) — 494,054 504,807 — 493,568 496,359 KFN Issued 5.200% Notes Due 2033 (10) — 118,411 117,834 — 118,291 115,582 KFN Issued 5.400% Notes Due 2033 (11) — 68,774 70,059 — 68,683 68,780 KFN Issued Junior Subordinated Notes (12) — 233,473 185,485 — 232,142 203,135 2,194,904 3,977,293 4,343,084 2,201,338 3,258,870 3,257,318 Other Debt Obligations 3,865,495 23,035,991 23,035,991 3,840,877 19,082,322 19,082,322 $ 6,060,399 $ 27,013,284 $ 27,379,075 $ 6,042,215 $ 22,341,192 $ 22,339,640 (1) $500 million aggregate principal amount of 6.375% senior notes of KKR due 2020. These senior notes were redeemed in full in July 2019. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $0.7 million as of December 31, 2018. (2) $500 million aggregate principal amount of 3.750% senior notes of KKR due 2029. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.7 million as of December 31, 2019 . (3) $500 million aggregate principal amount of 5.500% senior notes of KKR due 2043. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $3.4 million and $3.6 million as of December 31, 2019 and 2018 , respectively. (4) $1.0 billion aggregate principal amount of 5.125% senior notes of KKR due 2044. Borrowing outstanding is presented net of (i) unamortized note discount (net of premium) and (ii) unamortized debt issuance costs of $7.7 million and $8.0 million as of December 31, 2019 and 2018 , respectively. (5) ¥25 billion (or $229.3 million ) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.0 million and $1.3 million as of December 31, 2019 and 2018 , respectively. These senior notes are denominated in Japanese Yen ("JPY"). (6) ¥5.0 billion (or $45.9 million ) aggregate principal amount of 0.764% senior notes of KKR due 2025. Borrowing outstanding is presented net of unamortized debt issuance costs of $0.6 million and $0.7 million as of December 31, 2019 and 2018 , respectively. These senior notes are denominated in JPY. (7) ¥10.3 billion (or $94.5 million ) aggregate principal amount of 1.595% senior notes of KKR due 2038. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.1 million and $1.2 million as of December 31, 2019 and 2018 , respectively. These senior notes are denominated in JPY. (8) €650 million (or $727.9 million ) aggregate principal amount of 1.625% senior notes of KKR due 2029. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $6.3 million as of December 31, 2019 . These senior notes are denominated in euro. (9) KKR consolidates KFN and thus reports KFN's outstanding $500.0 million aggregate principal amount of 5.500% senior notes due 2032. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.0 million and $4.4 million as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (10) KKR consolidates KFN and thus reports KFN's outstanding $120.0 million aggregate principal amount of 5.200% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.6 million and $1.7 million as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (11) KKR consolidates KFN and thus reports KFN's outstanding $70.0 million aggregate principal amount of 5.400% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.3 million as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (12) KKR consolidates KFN and thus reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 4.4% and 5.0% and the weighted average years to maturity is 16.8 years and 17.8 years as of December 31, 2019 and 2018 , respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (13) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes. (14) The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly listed. |
Schedule of debt obligations of consolidated CLOs | As of December 31, 2019 , other debt obligations consisted of the following: Financing Available Borrowing Outstanding Fair Value Weighted Average Interest Rate Weighted Average Remaining Maturity in Years Financing Facilities of Consolidated Funds and Other $ 3,865,495 $ 8,377,854 $ 8,377,854 4.0% 4.4 Debt Obligations of Consolidated CLOs — 14,658,137 14,658,137 (1) 11.0 $ 3,865,495 $ 23,035,991 $ 23,035,991 (1) The senior notes of the consolidated CLOs had a weighted average interest rate of 3.0% . The subordinated notes of the consolidated CLOs do not have contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle. Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any. |
Schedule of maturities of long-term debt | Scheduled principal payments for debt obligations at December 31, 2019 are as follows: Revolving Credit Facilities Notes Issued Other Debt Obligations Total 2020 $ — $ — $ 1,053,418 $ 1,053,418 2021 — — 2,458,087 2,458,087 2022 — — 1,389,542 1,389,542 2023 — 229,250 1,408,859 1,638,109 2024 — — 267,616 267,616 Thereafter — 3,816,727 16,528,211 20,344,938 $ — $ 4,045,977 $ 23,105,733 $ 27,151,710 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consists of the following: For the Years Ended December 31, 2019 2018 2017 Current Federal Income Tax $ 56,046 $ 105,245 $ (34,611 ) State and Local Income Tax 10,925 16,997 5,229 Foreign Income Tax (1) 38,238 41,716 79,371 Subtotal 105,209 163,958 49,989 Deferred Federal Income Tax 428,110 (300,536 ) 178,449 State and Local Income Tax 49,148 (52,240 ) (424 ) Foreign Income Tax (1) (53,717 ) (5,280 ) (3,688 ) Subtotal 423,541 (358,056 ) 174,337 Total Income Taxes $ 528,750 $ (194,098 ) $ 224,326 (1) The foreign income tax provision was calculated on $126.0 million , $141.0 million , and $171.6 million of pre-tax income generated in foreign jurisdictions in the years 2019, 2018, and 2017, respectively. |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the U.S. Federal Statutory Tax Rate to the Effective Income Tax Rate: For the Years Ended December 31, 2019 2018 2017 Statutory U.S. Federal Income Tax Rate 21.00 % 21.00 % 35.00 % Income not attributable to KKR & Co. Inc. (1) (10.57 )% (20.13 )% (38.64 )% Foreign Income Taxes (0.28 )% 1.66 % 2.62 % State and Local Income Taxes 0.85 % (0.16 )% 0.05 % Compensation Charges Borne by KKR Holdings 2.75 % 1.69 % 6.29 % Conversion Benefit (0.90 )% (11.19 )% — % Change in Valuation Allowance — % (0.53 )% — % Impact of the 2017 Tax Act — % — % 3.52 % Other (2.62 )% (0.94 )% (0.78 )% Effective Income Tax Rate 10.23 % (8.60 )% 8.06 % (1) Represents primarily income attributable to (i) redeemable noncontrolling interests for all periods and (ii) noncontrolling interests for all periods. This item also includes investment income of certain entities and net carried interest of certain general partners of KKR investment funds that were not subject to U.S. federal income taxes prior to the Conversion. |
Schedule of Deferred Tax Assets and Liabilities | A summary of the tax effects of the temporary differences is as follows: December 31, 2019 December 31, 2018 Deferred Tax Assets Fund Management Fee Credits & Refunds $ 65,168 $ 60,740 Equity Based Compensation 28,731 21,949 KKR Holdings Unit Exchanges (1) 152,759 127,275 Depreciation and Amortization (2) 300,851 293,481 Operating Lease Deferred Liability 19,152 — Investment Basis Differences / Net Unrealized Gains & Losses (2) — 16,613 Net Operating Loss Carryforwards 13,381 3,607 Other 11,732 14,496 Total Deferred Tax Assets before Valuation Allowance 591,774 538,161 Valuation Allowance — — Total Deferred Tax Assets 591,774 538,161 Deferred Tax Liabilities Investment Basis Differences / Net Unrealized Gains & Losses (2) 414,048 — Operating Lease Right-of-Use Asset 19,152 — Total Deferred Tax Liabilities 433,200 — Total Deferred Taxes, Net $ 158,574 $ 538,161 (1) In connection with exchanges of KKR Holdings units into Class A common stock of KKR & Co. Inc., KKR records a deferred tax asset associated with an increase in KKR & Co. Inc.'s share of the tax basis of the tangible and intangible assets of the KKR Group Partnerships. This amount is offset by an adjustment to record amounts due to KKR Holdings and principals under the tax receivable agreement, which is included within Due to Affiliates in the consolidated statements of financial condition. The net impact of these adjustments was recorded as an adjustment to equity at the time of the exchanges. (2) This deferred tax item includes a portion of the tax benefit KKR recognized as a result of the step-up in tax basis generated by the Conversion. |
Summary of Income Tax Contingencies | At December 31, 2019, 2018 and 2017, KKR's unrecognized tax benefits relating to uncertain tax positions, excluding related interest and penalties, consisted of the following: For the Years Ended December 31, 2019 2018 2017 Unrecognized Tax Benefits, beginning of period $ 53,598 $ 48,170 $ 43,996 Gross increases in tax positions in prior periods — — — Gross decreases in tax positions in prior periods (2,443 ) — — Gross increases in tax positions in current period 4,107 5,542 4,406 Lapse of statute of limitations (1,890 ) (114 ) (232 ) Unrecognized Tax Benefits, end of period $ 53,372 $ 53,598 $ 48,170 |
EQUITY BASED COMPENSATION (Tabl
EQUITY BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of expense associated with equity based compensation | The following table summarizes the expense associated with equity-based compensation for the years ended December 31, 2019 , 2018 and 2017, respectively. For the Years Ended December 31, 2019 2018 2017 Equity Incentive Plans $ 207,789 $ 242,811 $ 204,308 KKR Holdings Principal Awards 91,123 104,625 143,204 Total (1) $ 298,912 $ 347,436 $ 347,512 (1) Includes $1.4 million , $11.7 million and $11.2 million of equity based compensation for the years ended December 31, 2019 , 2018, and 2017 respectively, related to employees of equity method investees. Such amounts are included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. |
Summary of information regarding the discount for the lack of participation rights in the expected dividends for shares granted | The following table presents information regarding the discount for the lack of participation rights in the expected dividends by grant date: Date of Grant Discount per share (1) January 1, 2016 to December 31, 2016 $ 0.64 January 1, 2017 to December 31, 2017 $ 0.68 January 1, 2018 to June 30, 2018 $ 0.68 July 1, 2018 to December 31, 2019 $ 0.50 (1) Represents the annual discount for the lack of participation rights on expected dividends. The total discount on any given tranche of unvested shares is calculated as the discount per share multiplied by the number of years in the applicable vesting period. |
Summary of significant assumptions used to estimate grant date fair value of Market Condition Awards | Below is a summary of the significant assumptions used to estimate the grant date fair value of the Market Condition Awards: Closing KKR share price as of valuation date $19.90 Risk Free Rate 2.02 % Volatility 25.00 % Dividend Yield 3.42 % Expected Cost of Equity 11.02 % |
Schedule of unrecognized expense of equity incentive plan awards expected to be recognized | As of December 31, 2019 , there was approximately $295.9 million of total estimated unrecognized expense related to unvested awards, including Market Condition Awards. That cost is expected to be recognized as follows: Year Unrecognized Expense 2020 $ 162.8 2021 86.4 2022 36.9 2023 7.8 2024 1.7 2025 0.3 Total $ 295.9 |
Schedule of unvested awards granted under equity incentive plan | A summary of the status of unvested awards granted under the Equity Incentive Plans, excluding Market Condition Awards as described above, from January 1, 2019 through December 31, 2019 is presented below: Shares Weighted Average Grant Date Fair Value Balance, January 1, 2019 33,400,183 $ 16.23 Granted 4,742,836 25.98 Vested (13,816,158 ) 15.79 Forfeitures (1,629,216 ) 17.23 Balance, December 31, 2019 22,697,645 $ 18.46 |
Schedule of remaining vesting tranches of awards granted under the equity incentive plan | A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plans is presented below: Vesting Date Shares April 1, 2020 6,897,566 October 1, 2020 4,161,077 April 1, 2021 4,765,284 October 1, 2021 2,611,618 April 1, 2022 1,665,568 October 1, 2022 1,309,649 April 1, 2023 841,805 October 1, 2023 130,649 April 1, 2024 182,585 October 1, 2024 5,133 April 1, 2025 126,711 22,697,645 |
Schedule of unrecognized expense of unvested KKR Holdings awards expected to be recognized | As of December 31, 2019 , there was approximately $153.3 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows: Year Unrecognized Expense 2020 $ 82.0 2021 45.7 2022 25.6 Total $ 153.3 |
Schedule of unvested holding awards granted | A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2019 through December 31, 2019 is presented below: Units Weighted Average Grant Date Fair Value Balance, January 1, 2019 24,123,993 $ 14.42 Granted — — Vested (6,162,014 ) 14.86 Forfeitures (1,392,500 ) 12.25 Balance, December 31, 2019 16,569,479 $ 14.43 |
Schedule of remaining vesting tranches of holding awards granted | A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below: Vesting Date Units April 1, 2020 124,479 May 1, 2020 3,085,000 October 1, 2020 2,940,000 May 1, 2021 3,085,000 October 1, 2021 3,425,000 October 1, 2022 3,910,000 16,569,479 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of due from and to affiliates | Due from Affiliates consists of: December 31, 2019 December 31, 2018 Amounts due from portfolio companies $ 120,391 $ 82,204 Amounts due from unconsolidated investment funds 594,184 568,211 Amounts due from related entities 2,824 6,774 Due from Affiliates $ 717,399 $ 657,189 Due to Affiliates consists of: December 31, 2019 December 31, 2018 Amounts due to KKR Holdings in connection with the tax receivable agreement $ 131,288 $ 117,862 Amounts due to unconsolidated investment funds 154,810 157,722 Due to Affiliates $ 286,098 $ 275,584 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accelerated Share Repurchases | The following table presents KKR & Co. Inc. Class A common stock that has been repurchased or equity awards retired under the repurchase program: For the Years Ended December 31, 2019 2018 2017 Shares of Class A common stock repurchased 2,859,452 7,540,551 — Equity Awards for Class A common stock retired (1) 3,670,019 1,675,306 — (1) Amounts exclude retirements of equity awards prior to May 3, 2018, the date on which retirements of equity awards became included under the repurchase program. |
Schedule of calculation of noncontrolling interests | The following tables present the calculation of total noncontrolling interests: For the Year Ended December 31, 2019 Noncontrolling Interests in Consolidated Entities Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 10,984,910 $ 4,625,448 $ 15,610,358 Net income (loss) attributable to noncontrolling interests (1) 1,264,820 1,369,671 2,634,491 Other comprehensive income (loss), net of tax (2) (1,803 ) (537 ) (2,340 ) Exchange of KKR Holdings Units to Class A Common Stock (3) — (161,825 ) (161,825 ) Equity-based and other non-cash compensation — 91,297 91,297 Capital contributions 4,668,114 1,642 4,669,756 Capital distributions (2,972,914 ) (197,062 ) (3,169,976 ) Changes in consolidation 23,123 — 23,123 Balance at the end of the period $ 13,966,250 $ 5,728,634 $ 19,694,884 For the Year Ended December 31, 2018 Noncontrolling Interests in Consolidated Entities Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 8,072,849 $ 4,793,475 $ 12,866,324 Net income (loss) attributable to noncontrolling interests (1) 796,183 561,052 1,357,235 Other comprehensive income (loss), net of tax (2) (18,512 ) (12,559 ) (31,071 ) Exchange of KKR Holdings Units to Class A Common Stock and Other (3) (52,585 ) (567,309 ) (619,894 ) Equity-based and other non-cash compensation — 100,632 100,632 Capital contributions 4,357,219 2,396 4,359,615 Capital distributions (2,763,416 ) (252,239 ) (3,015,655 ) Changes in consolidation 593,172 — 593,172 Balance at the end of the period $ 10,984,910 $ 4,625,448 $ 15,610,358 For the Year Ended December 31, 2017 Noncontrolling Interests in Consolidated Entities Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 6,252,565 $ 4,293,337 $ 10,545,902 Net income (loss) attributable to noncontrolling interests (1) 676,744 791,021 1,467,765 Other comprehensive income (loss), net of tax (2) 9,192 21,904 31,096 Exchange of KKR Holdings Units to Class A Common Stock and Other (3) (50,120 ) (238,941 ) (289,061 ) Equity-based and other non-cash compensation — 141,727 141,727 Capital contributions 3,116,889 3,028 3,119,917 Capital distributions (1,890,232 ) (235,610 ) (2,125,842 ) Changes in consolidation (1,682 ) — (1,682 ) Transfers of interests under common control and Other (40,507 ) 17,009 (23,498 ) Balance at the end of the period $ 8,072,849 $ 4,793,475 $ 12,866,324 (1) Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests held by KKR Holdings. (2) With respect to noncontrolling interests held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units held by KKR Holdings during the reporting period. (3) For the year ended December 31, 2019, calculated based on the proportion of KKR Holdings units exchanged for KKR & Co. Inc. Class A common stock. For the years ended December 31, 2018 and 2017, calculated based on the proportion of KKR Holdings units and other exchangeable securities exchanged for KKR & Co. Inc. Class A common stock. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. Class A common stock. |
Schedule of net income (loss) attributable to noncontrolling interests held by KKR Holdings | The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings: For the Years Ended December 31, 2019 2018 2017 Net income (loss) $ 4,639,540 $ 2,450,946 $ 2,560,042 (-) Net income (loss) attributable to Redeemable Noncontrolling Interests — (37,352 ) 73,972 (-) Net income (loss) attributable to Noncontrolling Interests in consolidated entities 1,264,820 796,183 676,744 (-) Preferred Stock Dividends 33,364 33,364 33,364 (+) Income tax expense (benefit) attributable to KKR & Co. Inc. 539,466 (229,232 ) 150,812 (-) Gain from remeasurement of tax receivable agreement liability attributable to KKR & Co. Inc. (1) — — 67,221 Net income (loss) attributable to KKR & Co. Inc. Class A Common Stockholders and KKR Holdings $ 3,880,822 $ 1,429,519 $ 1,859,553 Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings $ 1,369,671 $ 561,052 $ 791,021 (1) Represents the impacts of the remeasurement of the tax receivable agreement which arises from changes in the associated deferred tax balance, including the impacts related to the 2017 Tax Act. |
Redeemable noncontrolling interests | The following table presents the rollforward of Redeemable Noncontrolling Interests: For the Years Ended December 31, 2019 2018 2017 Balance at the beginning of the period $ 1,122,641 $ 610,540 $ 632,348 Net income (loss) attributable to Redeemable Noncontrolling Interests — (37,352 ) 73,972 Capital contributions — 565,553 220,167 Capital distributions — (16,100 ) (890 ) Changes in consolidation (1,122,641 ) — (315,057 ) Balance at the end of the period $ — $ 1,122,641 $ 610,540 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future lease payments | As of December 31, 2019 , the approximate aggregate future lease payments required on the operating leases are as follows: 2020 $ 52,811 2021 24,954 2022 20,720 2023 14,570 2024 4,491 Thereafter 14,762 Total lease payments required 132,308 Less: Imputed Interest (7,222 ) Total operating lease liabilities $ 125,086 |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | For the Three Months Ended, March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Statement of Operations Data: Total Revenues $ 1,187,480 $ 1,179,864 $ 790,485 $ 1,063,071 Total Expenses 728,767 808,811 619,533 751,320 Total Investment Income (Loss) 1,335,926 1,156,076 218,792 1,145,027 Income (Loss) Before Taxes 1,794,639 1,527,129 389,744 1,456,778 Income Tax Expense / (Benefit) 167,593 165,399 53,132 142,626 Net Income (Loss) 1,627,046 1,361,730 336,612 1,314,152 Net Income (Loss) Attributable to Redeemable Noncontrolling Interests — — — — Net Income (Loss) Attributable to Noncontrolling Interests 917,727 838,996 87,058 790,710 Net Income (Loss) Attributable to KKR & Co. Inc. 709,319 522,734 249,554 523,442 Series A Preferred Stock Dividends 5,822 5,822 5,822 5,822 Series B Preferred Stock Dividends 2,519 2,519 2,519 2,519 Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders $ 700,978 $ 514,393 $ 241,213 $ 515,101 Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock Basic $ 1.31 $ 0.94 $ 0.44 $ 0.93 Diluted $ 1.27 $ 0.93 $ 0.43 $ 0.91 Weighted Average Shares of Class A Common Stock Outstanding Basic 533,892,474 544,528,863 546,336,936 555,379,973 Diluted 550,046,440 554,643,810 559,532,065 566,277,984 For the Three Months Ended, March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Statement of Operations Data: Total Revenues $ 472,606 $ 971,620 $ 1,129,666 $ (178,056 ) Total Expenses 436,601 675,050 740,090 237,736 Total Investment Income (Loss) 584,530 1,330,786 833,288 (798,115 ) Income (Loss) Before Taxes 620,535 1,627,356 1,222,864 (1,213,907 ) Income Tax Expense / (Benefit) 17,641 60,960 (129,405 ) (143,294 ) Net Income (Loss) 602,894 1,566,396 1,352,269 (1,070,613 ) Net Income (Loss) Attributable to Redeemable Noncontrolling Interests 25,674 (18,016 ) 12,236 (57,246 ) Net Income (Loss) Attributable to Noncontrolling Interests 398,777 895,690 691,494 (628,726 ) Net Income (Loss) Attributable to KKR & Co. Inc. 178,443 688,722 648,539 (384,641 ) Series A Preferred Stock Dividends 5,822 5,822 5,822 5,822 Series B Preferred Stock Dividends 2,519 2,519 2,519 2,519 Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders $ 170,102 $ 680,381 $ 640,198 $ (392,982 ) Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock Basic $ 0.36 $ 1.33 $ 1.22 $ (0.74 ) Diluted $ 0.32 $ 1.24 $ 1.17 $ (0.74 ) Weighted Average Shares of Class A Common Stock Outstanding Basic 487,704,838 510,586,631 525,240,214 532,266,521 Diluted 535,918,274 548,745,498 545,672,953 532,266,521 |
ORGANIZATION (Details)
ORGANIZATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | $ 523,442 | $ 249,554 | $ 522,734 | $ 709,319 | $ (384,641) | $ 648,539 | $ 688,722 | $ 178,443 | $ 2,005,049 | $ 1,131,063 | $ 1,018,305 |
Exchange of KKR Group Partnership Shares Held By KKR Holdings L.P. | 161,270 | 570,898 | 247,946 | ||||||||
Change from net income (loss) attributable to KKR & Co. Inc. and transfers from noncontrolling interests held by KKR Holdings | $ 2,166,319 | $ 1,701,961 | $ 1,266,251 | ||||||||
Units of Partnership Interest (in shares) | 8,699,894 | 36,890,095 | 8,699,894 | 36,890,095 | 17,786,064 | ||||||
KKR group partnerships | |||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||||
Percentage of economic interest held by parent entity | 65.90% | ||||||||||
KKR group partnerships | KKR Holdings | |||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||||
Percentage owned by KKR Holdings L.P. | 34.10% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurement (Details) | 12 Months Ended |
Dec. 31, 2019methodology | |
Accounting Policies [Abstract] | |
Number of valuation methodologies used to determine fair value of investments (in methodologies) | 2 |
Maximum | |
Fair Value Measurements | |
Weighting percentage of methodology used to determine fair value of investments (up to 100%) | 100.00% |
Illiquidity Discount | Minimum | |
Fair Value Measurements | |
Private equity, measurement input | 0.05 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenues (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | $ 1,790,475,000 | $ 1,841,326,000 | $ 1,541,604,000 | ||||||||
Carried Interest | 2,041,847,000 | 441,529,000 | 1,740,661,000 | ||||||||
General Partner Capital Interest | 388,578,000 | 112,981,000 | 275,015,000 | ||||||||
Total Capital Allocation-Based Income | 2,430,425,000 | 554,510,000 | 2,015,676,000 | ||||||||
Total Revenues | $ 1,063,071,000 | $ 790,485,000 | $ 1,179,864,000 | $ 1,187,480,000 | $ (178,056,000) | $ 1,129,666,000 | $ 971,620,000 | $ 472,606,000 | $ 4,220,900,000 | 2,395,836,000 | 3,557,280,000 |
Incentive fee, low end of range (as a percent) | 5.00% | ||||||||||
Incentive fee, high end of range (as a percent) | 20.00% | ||||||||||
Measurement period (in years) | 1 year | ||||||||||
Minimum | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fee Credits as a percentage of monitoring and transaction fees net of fund-related expenses | 80.00% | ||||||||||
Maximum | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fee Credits as a percentage of monitoring and transaction fees net of fund-related expenses | 100.00% | ||||||||||
Management Fees | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | $ 824,903,000 | 724,558,000 | 700,245,000 | ||||||||
Fee Credits | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | (340,900,000) | (231,943,000) | (257,401,000) | ||||||||
Transaction Fees | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | 914,329,000 | 988,954,000 | 783,952,000 | ||||||||
Monitoring Fees | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | 106,289,000 | 87,545,000 | 82,238,000 | ||||||||
Incentive Fees | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | 0 | 14,038,000 | 4,601,000 | ||||||||
Expense Reimbursements | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | 169,415,000 | 146,989,000 | 121,927,000 | ||||||||
Oil and Gas Revenue | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | 47,153,000 | 51,465,000 | 63,460,000 | ||||||||
Consulting Fees | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | 69,286,000 | 59,720,000 | 42,582,000 | ||||||||
Customer Concentration Risk | |||||||||||
Fees and Commissions [Line Items] | |||||||||||
Fees and Other | $ 1,100,000,000 | $ 0 | $ 900,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU assets | $ 121,101,000 | |
Total operating lease liabilities | $ 125,086,000 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU assets | $ 153,300,000 | |
Total operating lease liabilities | 162,900,000 | |
Accounting Standards Update 2016-02 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative-effect adjustment | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Management Fees (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,790,475,000 | $ 1,841,326,000 | $ 1,541,604,000 |
Maximum length of investment period | 6 years | ||
Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,100,000,000 | $ 0 | $ 900,000,000 |
Customer Concentration Risk | Americas | |||
Concentration Risk [Line Items] | |||
Percentage of revenue generated in the geographic region | 55.80% | 62.40% | 64.50% |
Customer Concentration Risk | EMEA | |||
Concentration Risk [Line Items] | |||
Percentage of revenue generated in the geographic region | 21.50% | 24.70% | 21.10% |
Customer Concentration Risk | Asia | |||
Concentration Risk [Line Items] | |||
Percentage of revenue generated in the geographic region | 22.70% | 12.90% | 14.40% |
Minimum | |||
Concentration Risk [Line Items] | |||
Asset management fees as a percentage of committed capital, low end of range | 1.00% | ||
Percentage used to derive management fees for separately managed accounts, low end of range | 0.75% | ||
Management fees earned from core investment strategy percentage, low end of range | 0.75% | ||
Asset management fees earned from credit funds and other investment vehicles percentage, low end of range | 0.10% | ||
Collateral management fee based on annual rate of percentage of collateral, low end of range | 0.40% | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Asset management fees as a percentage of committed capital, high end of range | 2.00% | ||
Percentage used to derive management fees for separately managed accounts, high end of range | 1.25% | ||
Management fees earned from core investment strategy percentage, high end of range | 1.50% | ||
Asset management fees earned from credit funds and other investment vehicles percentage, low end of range | 1.75% | ||
Collateral management fee based on annual rate of percentage of collateral, high end of range | 0.50% |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Compensation and Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Percent allocated to carry pool, low end of range | 40.00% | ||
Percent allocated to carry pool, high end of range | 43.00% | ||
Expenses incurred in connection with profit sharing plan | $ 10.2 | $ 9.5 | $ 8.2 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets, Depreciation and Amortization (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 7 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue from Contracts with Customers (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Revenue 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 No 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 No 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 No 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 No Due from Affiliates Incentive Fees Investment funds and other vehicles Investment management services that result in achievement of minimum investment return levels Point in time at the end of the performance measurement period (quarterly or annually) if investment performance is achieved 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 No 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 No Due from Affiliates Oil and Gas Revenues Oil and gas wholesalers Delivery of oil liquids and gas Point in time when delivery has occurred and title has transferred Fixed consideration Typically shortly after delivery No Other Assets Consulting Fees Portfolio companies and other companies Consulting and other services Over time as services are rendered Fixed consideration Typically quarterly in arrears No 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 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 13 "Related Party Transactions." |
NET GAINS (LOSSES) FROM INVES_3
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | $ 497,346 | $ 534,652 | $ 38,316 |
Net Unrealized Gains (Losses) | 2,664,538 | 720,180 | 889,828 |
Total | 3,161,884 | 1,254,832 | 928,144 |
Private Equity | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | 261,920 | 184,784 | 223,568 |
Net Unrealized Gains (Losses) | 2,849,031 | 708,600 | 338,720 |
Total | 3,110,951 | 893,384 | 562,288 |
Credit | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | (92,114) | (354,090) | (470,487) |
Net Unrealized Gains (Losses) | (150,881) | (420,434) | 423,603 |
Total | (242,995) | (774,524) | (46,884) |
Investments of Consolidated CFEs | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | (57,230) | (83,719) | (97,129) |
Net Unrealized Gains (Losses) | 270,268 | (452,331) | 352 |
Total | 213,038 | (536,050) | (96,777) |
Real Assets | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | 93,848 | 92,885 | (18,722) |
Net Unrealized Gains (Losses) | (128,393) | 67,999 | 218,728 |
Total | (34,545) | 160,884 | 200,006 |
Equity Method - Other | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | 70,385 | (3,991) | 34,190 |
Net Unrealized Gains (Losses) | 540,775 | 339,027 | 95,968 |
Total | 611,160 | 335,036 | 130,158 |
Other Investments | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | 53,688 | (239,081) | (796,348) |
Net Unrealized Gains (Losses) | (240,548) | (434,537) | 65,516 |
Total | (186,860) | (673,618) | (730,832) |
Foreign Exchange Forward Contracts and Options | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | 161,175 | (90,625) | (31,772) |
Net Unrealized Gains (Losses) | 20,309 | 266,938 | (342,849) |
Total | 181,484 | 176,313 | (374,621) |
Securities Sold Short | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | 54,707 | 750,007 | 1,116,325 |
Net Unrealized Gains (Losses) | (53,483) | 26,465 | 97,811 |
Total | 1,224 | 776,472 | 1,214,136 |
Other Derivatives | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | (19,584) | (13,273) | (7,129) |
Net Unrealized Gains (Losses) | (36,918) | 1,037 | (23,687) |
Total | (56,502) | (12,236) | (30,816) |
Debt Obligations and Other | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gains (Losses) | (29,449) | 291,755 | 85,820 |
Net Unrealized Gains (Losses) | (405,622) | 617,416 | 15,666 |
Total | $ (435,071) | $ 909,171 | $ 101,486 |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments | ||
Investments owned, at fair value | $ 54,936,268 | $ 44,907,982 |
Private Equity | ||
Investments | ||
Investments owned, at fair value | 12,923,600 | 7,349,559 |
Credit | ||
Investments | ||
Investments owned, at fair value | 10,538,139 | 9,099,135 |
Investments of Consolidated CFEs | ||
Investments | ||
Investments owned, at fair value | 14,948,237 | 14,733,423 |
Real Assets | ||
Investments | ||
Investments owned, at fair value | 3,567,944 | 3,157,954 |
Equity Method - Other | ||
Investments | ||
Investments owned, at fair value | 4,846,949 | 4,212,874 |
Equity Method - Capital Allocation-Based Income | ||
Investments | ||
Investments owned, at fair value | 5,329,368 | 3,584,415 |
Other Investments | ||
Investments | ||
Investments owned, at fair value | $ 2,782,031 | $ 2,770,622 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | Nov. 22, 2019shares | Nov. 30, 2018shares | Nov. 30, 2017shares | Dec. 31, 2019Investment | Dec. 31, 2018Investment | Dec. 31, 2017Investment | Nov. 02, 2015 |
Investments | |||||||
Number of significant individual equity method investments (in investments) | Investment | 0 | 0 | 0 | ||||
Equity method investment, additional ownership percentage to be acquired | 5.00% | 5.00% | 5.00% | 5.00% | 24.90% | ||
Equity Method Investment, Ownership Percentage | 39.60% | ||||||
Class A Common Stock Issued in Connection with the Purchase of an Investment (in shares) | shares | 5,674,251 | 5,238,889 | 4,727,966 | ||||
Investments | Investment Concentration Risk | |||||||
Investments | |||||||
Threshold percentage of total investments (greater than) | 5.00% | 5.00% |
INVESTMENTS - Equity Method Inv
INVESTMENTS - Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Abstract] | |||
Total Assets | $ 112,688,482 | $ 93,577,773 | |
Total Liabilities | 22,622,609 | 21,296,194 | |
Total Equity | 90,065,873 | 72,281,579 | |
Investment Related Revenues | 2,552,266 | 1,679,950 | $ 1,167,038 |
Other Revenues | 5,132,796 | 5,304,634 | 3,002,987 |
Investment Related Expenses | 1,385,870 | 1,258,782 | 482,336 |
Other Expenses | 4,066,713 | 3,602,612 | 2,392,965 |
Net Realized and Unrealized Gain/(Loss) from Investments | 10,532,988 | 1,818,861 | 9,217,912 |
Net Income (Loss) | $ 12,765,467 | $ 3,942,051 | $ 10,512,636 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities at Fair Value (Details) - Fair value measured on recurring basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets, at fair value: | ||
Total Investments | $ 46,694,506 | $ 38,902,883 |
Total Assets | 46,906,217 | 39,121,142 |
Liabilities, at fair value: | ||
Securities Sold Short | 251,223 | 344,124 |
Total Liabilities | 15,058,740 | 14,451,133 |
Unfunded Revolver Commitments | 75,842 | 52,066 |
Debt Obligations of Consolidated CFEs | ||
Liabilities, at fair value: | ||
Total Liabilities | 14,658,137 | 13,958,554 |
Foreign Exchange Forward Contracts | ||
Assets, at fair value: | ||
Total Assets | 188,572 | 177,264 |
Liabilities, at fair value: | ||
Total Liabilities | 39,364 | 60,749 |
Other Derivatives | ||
Assets, at fair value: | ||
Total Assets | 23,139 | 40,995 |
Liabilities, at fair value: | ||
Total Liabilities | 34,174 | 35,640 |
Private Equity | ||
Assets, at fair value: | ||
Total Investments | 12,923,600 | 7,349,559 |
Credit | ||
Assets, at fair value: | ||
Total Investments | 10,538,139 | 9,099,135 |
Investments of Consolidated CFEs | ||
Assets, at fair value: | ||
Total Investments | 14,948,237 | 14,733,423 |
Real Assets | ||
Assets, at fair value: | ||
Total Investments | 3,567,944 | 3,157,954 |
Equity Method - Other | ||
Assets, at fair value: | ||
Total Investments | 1,934,555 | 1,792,190 |
Other Investments | ||
Assets, at fair value: | ||
Total Investments | 2,782,031 | 2,770,622 |
Level I | ||
Assets, at fair value: | ||
Total Investments | 2,053,737 | 1,882,394 |
Total Assets | 2,053,737 | 1,882,394 |
Liabilities, at fair value: | ||
Securities Sold Short | 251,223 | 344,124 |
Total Liabilities | 251,223 | 344,124 |
Unfunded Revolver Commitments | 0 | 0 |
Level I | Debt Obligations of Consolidated CFEs | ||
Liabilities, at fair value: | ||
Total Liabilities | 0 | 0 |
Level I | Foreign Exchange Forward Contracts | ||
Assets, at fair value: | ||
Total Assets | 0 | 0 |
Liabilities, at fair value: | ||
Total Liabilities | 0 | 0 |
Level I | Other Derivatives | ||
Assets, at fair value: | ||
Total Assets | 0 | 0 |
Liabilities, at fair value: | ||
Total Liabilities | 0 | 0 |
Level I | Private Equity | ||
Assets, at fair value: | ||
Total Investments | 1,393,654 | 1,156,977 |
Level I | Credit | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Level I | Investments of Consolidated CFEs | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Level I | Real Assets | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Level I | Equity Method - Other | ||
Assets, at fair value: | ||
Total Investments | 228,999 | 245,225 |
Level I | Other Investments | ||
Assets, at fair value: | ||
Total Investments | 431,084 | 480,192 |
Level II | ||
Assets, at fair value: | ||
Total Investments | 18,172,584 | 15,267,069 |
Total Assets | 18,362,489 | 15,448,212 |
Liabilities, at fair value: | ||
Securities Sold Short | 0 | 0 |
Total Liabilities | 14,731,675 | 12,160,960 |
Unfunded Revolver Commitments | 0 | 0 |
Level II | Debt Obligations of Consolidated CFEs | ||
Liabilities, at fair value: | ||
Total Liabilities | 14,658,137 | 12,081,771 |
Level II | Foreign Exchange Forward Contracts | ||
Assets, at fair value: | ||
Total Assets | 188,572 | 177,264 |
Liabilities, at fair value: | ||
Total Liabilities | 39,364 | 60,749 |
Level II | Other Derivatives | ||
Assets, at fair value: | ||
Total Assets | 1,333 | 3,879 |
Liabilities, at fair value: | ||
Total Liabilities | 34,174 | 18,440 |
Level II | Private Equity | ||
Assets, at fair value: | ||
Total Investments | 1,658,264 | 63,999 |
Level II | Credit | ||
Assets, at fair value: | ||
Total Investments | 1,320,380 | 2,334,405 |
Level II | Investments of Consolidated CFEs | ||
Assets, at fair value: | ||
Total Investments | 14,948,237 | 12,650,878 |
Level II | Real Assets | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Level II | Equity Method - Other | ||
Assets, at fair value: | ||
Total Investments | 49,511 | 43,943 |
Level II | Other Investments | ||
Assets, at fair value: | ||
Total Investments | 196,192 | 173,844 |
Level III | ||
Assets, at fair value: | ||
Total Investments | 26,468,185 | 21,753,420 |
Total Assets | 26,489,991 | 21,790,536 |
Liabilities, at fair value: | ||
Securities Sold Short | 0 | 0 |
Total Liabilities | 75,842 | 1,946,049 |
Unfunded Revolver Commitments | 75,842 | 52,066 |
Level III | Debt Obligations of Consolidated CFEs | ||
Liabilities, at fair value: | ||
Total Liabilities | 0 | 1,876,783 |
Level III | Foreign Exchange Forward Contracts | ||
Assets, at fair value: | ||
Total Assets | 0 | 0 |
Liabilities, at fair value: | ||
Total Liabilities | 0 | 0 |
Level III | Other Derivatives | ||
Assets, at fair value: | ||
Total Assets | 21,806 | 37,116 |
Liabilities, at fair value: | ||
Total Liabilities | 0 | 17,200 |
Level III | Private Equity | ||
Assets, at fair value: | ||
Total Investments | 9,871,682 | 6,128,583 |
Level III | Credit | ||
Assets, at fair value: | ||
Total Investments | 9,217,759 | 6,764,730 |
Level III | Investments of Consolidated CFEs | ||
Assets, at fair value: | ||
Total Investments | 0 | 2,082,545 |
Level III | Real Assets | ||
Assets, at fair value: | ||
Total Investments | 3,567,944 | 3,157,954 |
Level III | Equity Method - Other | ||
Assets, at fair value: | ||
Total Investments | 1,656,045 | 1,503,022 |
Level III | Other Investments | ||
Assets, at fair value: | ||
Total Investments | $ 2,154,755 | $ 2,116,586 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level III Investments (Details) - Level III - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total Level III Investments | ||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | $ 21,753,420 | $ 17,752,304 |
Transfers In / (Out) Due to Changes in Consolidation | (1,078,469) | (2,453,682) |
Transfers In | 220,798 | 1,193,037 |
Transfers Out | (681,609) | (1,082,640) |
Asset Purchases / Debt Issuances | 9,951,864 | 9,429,975 |
Sales / Paydowns | (4,769,818) | (3,143,622) |
Settlements | 39,424 | (1,350) |
Net Realized Gains (Losses) | 220,206 | (255,095) |
Net Unrealized Gains (Losses) | 828,559 | 384,468 |
Change in Other Comprehensive Income | (16,190) | (69,975) |
Balance, End of Period | 26,468,185 | 21,753,420 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | 936,323 | 374,647 |
Private Equity | ||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | 6,128,583 | 2,172,290 |
Transfers In / (Out) Due to Changes in Consolidation | 23,123 | 928,217 |
Transfers In | 26,045 | 0 |
Transfers Out | (491,723) | (52,568) |
Asset Purchases / Debt Issuances | 3,179,376 | 2,383,277 |
Sales / Paydowns | (353,684) | (142,067) |
Settlements | 0 | 0 |
Net Realized Gains (Losses) | 114,812 | 41,614 |
Net Unrealized Gains (Losses) | 1,245,150 | 797,820 |
Change in Other Comprehensive Income | 0 | 0 |
Balance, End of Period | 9,871,682 | 6,128,583 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | 1,316,857 | 808,637 |
Credit | ||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | 6,764,730 | 5,138,937 |
Transfers In / (Out) Due to Changes in Consolidation | 956,402 | 770,677 |
Transfers In | 149,804 | 154,255 |
Transfers Out | (10,248) | (1,030,072) |
Asset Purchases / Debt Issuances | 4,600,626 | 4,265,569 |
Sales / Paydowns | (3,032,887) | (1,932,299) |
Settlements | 39,424 | (1,350) |
Net Realized Gains (Losses) | (55,948) | (236,595) |
Net Unrealized Gains (Losses) | (177,954) | (294,417) |
Change in Other Comprehensive Income | (16,190) | (69,975) |
Balance, End of Period | 9,217,759 | 6,764,730 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | (208,744) | (197,159) |
Investments of Consolidated CFEs | ||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | 2,082,545 | 5,353,090 |
Transfers In / (Out) Due to Changes in Consolidation | (2,015,130) | (4,153,641) |
Transfers In | 0 | 1,000,000 |
Transfers Out | 0 | 0 |
Asset Purchases / Debt Issuances | 0 | 0 |
Sales / Paydowns | (62,334) | (31,280) |
Settlements | 0 | 0 |
Net Realized Gains (Losses) | (2,759) | 13,000 |
Net Unrealized Gains (Losses) | (2,322) | (98,624) |
Change in Other Comprehensive Income | 0 | 0 |
Balance, End of Period | 0 | 2,082,545 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | (98,624) |
Real Assets | ||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | 3,157,954 | 2,251,267 |
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 |
Transfers In | 18,429 | 0 |
Transfers Out | 0 | 0 |
Asset Purchases / Debt Issuances | 927,477 | 1,309,390 |
Sales / Paydowns | (501,371) | (545,686) |
Settlements | 0 | 0 |
Net Realized Gains (Losses) | 93,848 | 55,966 |
Net Unrealized Gains (Losses) | (128,393) | 87,017 |
Change in Other Comprehensive Income | 0 | 0 |
Balance, End of Period | 3,567,944 | 3,157,954 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | (90,583) | 68,215 |
Equity Method - Other | ||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | 1,503,022 | 1,076,709 |
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 |
Transfers In | 26,520 | 0 |
Transfers Out | (143,620) | 0 |
Asset Purchases / Debt Issuances | 414,393 | 657,332 |
Sales / Paydowns | (303,196) | (141,806) |
Settlements | 0 | 0 |
Net Realized Gains (Losses) | 17,496 | (149,825) |
Net Unrealized Gains (Losses) | 141,430 | 60,612 |
Change in Other Comprehensive Income | 0 | 0 |
Balance, End of Period | 1,656,045 | 1,503,022 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | 149,519 | (86,009) |
Other Investments | ||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | 2,116,586 | 1,760,011 |
Transfers In / (Out) Due to Changes in Consolidation | (42,864) | 1,065 |
Transfers In | 0 | 38,782 |
Transfers Out | (36,018) | 0 |
Asset Purchases / Debt Issuances | 829,992 | 814,407 |
Sales / Paydowns | (516,346) | (350,484) |
Settlements | 0 | 0 |
Net Realized Gains (Losses) | 52,757 | 20,745 |
Net Unrealized Gains (Losses) | (249,352) | (167,940) |
Change in Other Comprehensive Income | 0 | 0 |
Balance, End of Period | 2,154,755 | 2,116,586 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | $ (230,726) | $ (120,413) |
FAIR VALUE MEASUREMENTS - Cha_2
FAIR VALUE MEASUREMENTS - Changes in Level III Debt Obligations (Details) - Level III - Debt Obligations of Consolidated CFEs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||
Balance, Beg. of Period | $ 1,876,783 | $ 5,238,236 |
Transfers Out Due to Deconsolidation of Funds | (1,849,206) | (4,045,957) |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Asset Purchases / Debt Issuances | 0 | 800,350 |
Sales | 0 | 0 |
Settlements | (26,770) | (20,722) |
Net Realized Gains (Losses) | 0 | 0 |
Net Unrealized Gains (Losses) | (807) | (95,124) |
Change in Other Comprehensive Income | 0 | 0 |
Balance, End of Period | 0 | 1,876,783 |
Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date | $ 0 | $ (95,124) |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation Methodologies and Significant Unobservable Inputs (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)$ / barrel | |
Level III | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, fair value | $ 9,871,682,000 |
Credit, fair value | 9,217,759,000 |
Real assets, fair value | 3,567,944,000 |
Equity method - other, fair value | 1,656,045,000 |
Other investments, fair value | 2,154,755,000 |
Private Equity | Level III | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, fair value | 7,608,566,000 |
Growth Equity | Level III | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, fair value | 2,263,116,000 |
Energy | Level III | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, fair value | 1,686,783,000 |
Real Estate | Level III | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, fair value | $ 1,671,221,000 |
Illiquidity Discount | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.05 |
Illiquidity Discount | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.082 |
Other investments, measurement input | 0.095 |
Illiquidity Discount | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.050 |
Other investments, measurement input | 0 |
Illiquidity Discount | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.150 |
Other investments, measurement input | 0.200 |
Illiquidity Discount | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.067 |
Illiquidity Discount | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.050 |
Illiquidity Discount | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.150 |
Illiquidity Discount | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.117 |
Illiquidity Discount | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.100 |
Illiquidity Discount | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.400 |
Weight Ascribed to Market Comparables | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.374 |
Other investments, measurement input | 0.296 |
Weight Ascribed to Market Comparables | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0 |
Other investments, measurement input | 0 |
Weight Ascribed to Market Comparables | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 1 |
Other investments, measurement input | 1 |
Weight Ascribed to Market Comparables | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.252 |
Weight Ascribed to Market Comparables | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0 |
Weight Ascribed to Market Comparables | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.750 |
Weight Ascribed to Market Comparables | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.376 |
Weight Ascribed to Market Comparables | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0 |
Weight Ascribed to Market Comparables | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 1 |
Weight Ascribed to Discounted Cash Flow | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.379 |
Other investments, measurement input | 0.410 |
Weight Ascribed to Discounted Cash Flow | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0 |
Other investments, measurement input | 0 |
Weight Ascribed to Discounted Cash Flow | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 1 |
Other investments, measurement input | 1 |
Weight Ascribed to Discounted Cash Flow | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.600 |
Weight Ascribed to Discounted Cash Flow | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0 |
Weight Ascribed to Discounted Cash Flow | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 1 |
Weight Ascribed to Discounted Cash Flow | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.004 |
Weight Ascribed to Discounted Cash Flow | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0 |
Weight Ascribed to Discounted Cash Flow | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.375 |
Weight Ascribed to Discounted Cash Flow | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.661 |
Weight Ascribed to Discounted Cash Flow | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0 |
Weight Ascribed to Discounted Cash Flow | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 1 |
Weight Ascribed to Transaction Price | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.247 |
Other investments, measurement input | 0.294 |
Weight Ascribed to Transaction Price | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0 |
Other investments, measurement input | 0 |
Weight Ascribed to Transaction Price | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 1 |
Other investments, measurement input | 1 |
Weight Ascribed to Transaction Price | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.148 |
Weight Ascribed to Transaction Price | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0 |
Weight Ascribed to Transaction Price | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 1 |
Enterprise Value/LTM EBITDA Multiple | Level III | Market comparables | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 12.3 |
Other investments, measurement input | 12.6 |
Enterprise Value/LTM EBITDA Multiple | Level III | Market comparables | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 8 |
Other investments, measurement input | 1.8 |
Enterprise Value/LTM EBITDA Multiple | Level III | Market comparables | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 17 |
Other investments, measurement input | 27.4 |
Enterprise Value/LTM EBITDA Multiple | Private Equity | Level III | Market comparables | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 14.7 |
Enterprise Value/LTM EBITDA Multiple | Private Equity | Level III | Market comparables | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 8 |
Enterprise Value/LTM EBITDA Multiple | Private Equity | Level III | Market comparables | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 26 |
Enterprise Value/Forward EBITDA Multiple | Level III | Market comparables | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 11.3 |
Other investments, measurement input | 11.3 |
Enterprise Value/Forward EBITDA Multiple | Level III | Market comparables | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 10.2 |
Other investments, measurement input | 0.2 |
Enterprise Value/Forward EBITDA Multiple | Level III | Market comparables | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 14.4 |
Other investments, measurement input | 13.5 |
Enterprise Value/Forward EBITDA Multiple | Private Equity | Level III | Market comparables | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 15 |
Enterprise Value/Forward EBITDA Multiple | Private Equity | Level III | Market comparables | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 8.7 |
Enterprise Value/Forward EBITDA Multiple | Private Equity | Level III | Market comparables | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 23.9 |
Weighted Average Cost of Capital | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.088 |
Other investments, measurement input | 0.149 |
Weighted Average Cost of Capital | Level III | Discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.056 |
Other investments, measurement input | 0.08 |
Weighted Average Cost of Capital | Level III | Discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 0.131 |
Other investments, measurement input | 0.438 |
Weighted Average Cost of Capital | Private Equity | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.095 |
Weighted Average Cost of Capital | Private Equity | Level III | Discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.067 |
Weighted Average Cost of Capital | Private Equity | Level III | Discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.154 |
Weighted Average Cost of Capital | Energy | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.116 |
Weighted Average Cost of Capital | Energy | Level III | Discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.085 |
Weighted Average Cost of Capital | Energy | Level III | Discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.176 |
Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 10.5 |
Other investments, measurement input | 9.7 |
Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 6 |
Other investments, measurement input | 3.7 |
Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Equity method - other, measurement input | 12.5 |
Other investments, measurement input | 12.7 |
Enterprise Value/LTM EBITDA Exit Multiple | Private Equity | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 12.7 |
Enterprise Value/LTM EBITDA Exit Multiple | Private Equity | Level III | Discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 6 |
Enterprise Value/LTM EBITDA Exit Multiple | Private Equity | Level III | Discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 15 |
Weight Ascribed to Milestones | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.620 |
Weight Ascribed to Milestones | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0 |
Weight Ascribed to Milestones | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 1 |
Base | Growth Equity | Level III | Scenario Weighting | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.608 |
Base | Growth Equity | Level III | Scenario Weighting | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.400 |
Base | Growth Equity | Level III | Scenario Weighting | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.700 |
Downside | Growth Equity | Level III | Scenario Weighting | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.140 |
Downside | Growth Equity | Level III | Scenario Weighting | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.050 |
Downside | Growth Equity | Level III | Scenario Weighting | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.450 |
Upside | Growth Equity | Level III | Scenario Weighting | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.252 |
Upside | Growth Equity | Level III | Scenario Weighting | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.050 |
Upside | Growth Equity | Level III | Scenario Weighting | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Private equity, measurement input | 0.450 |
Yield | Level III | Yield Analysis | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 0.063 |
Yield | Level III | Yield Analysis | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 0.053 |
Yield | Level III | Yield Analysis | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 0.252 |
Net Leverage | Level III | Yield Analysis | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 5.5 |
Net Leverage | Level III | Yield Analysis | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 1.2 |
Net Leverage | Level III | Yield Analysis | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 14.1 |
EBITDA Multiple | Level III | Yield Analysis | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 10.5 |
EBITDA Multiple | Level III | Yield Analysis | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 0.2 |
EBITDA Multiple | Level III | Yield Analysis | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Credit, measurement input | 27.4 |
Average Price Per BOE | Energy | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input, value | $ 38.73 |
Average Price Per BOE | Energy | Level III | Discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | $ / barrel | 35.21 |
Average Price Per BOE | Energy | Level III | Discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | $ / barrel | 40.70 |
Weight Ascribed to Direct Income Capitalization | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.339 |
Weight Ascribed to Direct Income Capitalization | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0 |
Weight Ascribed to Direct Income Capitalization | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 1 |
Current Capitalization Rate | Real Estate | Level III | Direct income capitalization | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.059 |
Current Capitalization Rate | Real Estate | Level III | Direct income capitalization | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.049 |
Current Capitalization Rate | Real Estate | Level III | Direct income capitalization | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.110 |
Unlevered Discount Rate | Real Estate | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.076 |
Unlevered Discount Rate | Real Estate | Level III | Discounted cash flow | Minimum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.049 |
Unlevered Discount Rate | Real Estate | Level III | Discounted cash flow | Maximum | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.180 |
Liquids | Energy | Level III | Discounted cash flow | |
Level III investments and other financial instruments by valuation methodologies | |
Revenue ratio of liquids | 89.00% |
Natural Gas | Energy | Level III | Discounted cash flow | |
Level III investments and other financial instruments by valuation methodologies | |
Revenue ratio of natural gas | 11.00% |
Infrastructure | Level III | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, fair value | $ 209,900,000 |
Infrastructure | Level III | Market comparables | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.25 |
Infrastructure | Level III | Discounted cash flow | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.75 |
Infrastructure | Enterprise Value/Forward EBITDA Multiple | Level III | Market comparables | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 11.7 |
Infrastructure | Weighted Average Cost of Capital | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 0.070 |
Infrastructure | Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Weighted Average | |
Level III investments and other financial instruments by valuation methodologies | |
Real assets, measurement input | 10 |
FAIR VALUE OPTION - Financial I
FAIR VALUE OPTION - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | $ 23,952,682 | $ 22,024,820 |
Liabilities | 14,658,137 | 13,958,554 |
Private Equity | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 0 | 2,977 |
Credit | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 6,451,765 | 4,950,819 |
Investments of Consolidated CFEs | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 14,948,237 | 14,733,423 |
Real Assets | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 222,488 | 310,399 |
Equity Method - Other | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 1,934,555 | 1,792,190 |
Other Investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 395,637 | 235,012 |
Debt Obligations of Consolidated CFEs | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Liabilities | $ 14,658,137 | $ 13,958,554 |
FAIR VALUE OPTION - Change in F
FAIR VALUE OPTION - Change in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, assets, net realized gains (losses) | $ (103,747) | $ (487,242) | $ (563,249) |
Fair value, option, liabilities, net realized gains (losses) | (2,368) | 4,371 | 83,146 |
Fair value, option, assets, net unrealized gains (losses) | 197,919 | (609,124) | 183,849 |
Fair value, option, liabilities, net unrealized gains (losses) | (362,783) | 521,101 | 11,768 |
Fair value, option, assets, total gains (losses) | 94,172 | (1,096,366) | (379,400) |
Fair value, option, liabilities, total gains (losses) | (365,151) | 525,472 | 94,914 |
Private Equity | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, assets, net realized gains (losses) | 0 | (4,907) | (1,386) |
Fair value, option, assets, net unrealized gains (losses) | 194 | 5,355 | 38,791 |
Fair value, option, assets, total gains (losses) | 194 | 448 | 37,405 |
Credit | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, assets, net realized gains (losses) | (67,279) | (245,737) | (464,512) |
Fair value, option, assets, net unrealized gains (losses) | (203,666) | (148,150) | 78,282 |
Fair value, option, assets, total gains (losses) | (270,945) | (393,887) | (386,230) |
Investments of Consolidated CFEs | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, assets, net realized gains (losses) | (57,230) | (83,719) | (97,129) |
Fair value, option, assets, net unrealized gains (losses) | 270,268 | (452,331) | 352 |
Fair value, option, assets, total gains (losses) | 213,038 | (536,050) | (96,777) |
Real Assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, assets, net realized gains (losses) | 737 | 11,184 | 13,112 |
Fair value, option, assets, net unrealized gains (losses) | (2,038) | (11,446) | 44,136 |
Fair value, option, assets, total gains (losses) | (1,301) | (262) | 57,248 |
Equity Method - Other | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, assets, net realized gains (losses) | 17,373 | (150,225) | 18,883 |
Fair value, option, assets, net unrealized gains (losses) | 157,291 | 16,916 | (2,635) |
Fair value, option, assets, total gains (losses) | 174,664 | (133,309) | 16,248 |
Other Investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, assets, net realized gains (losses) | 2,652 | (13,838) | (32,217) |
Fair value, option, assets, net unrealized gains (losses) | (24,130) | (19,468) | 24,923 |
Fair value, option, assets, total gains (losses) | (21,478) | (33,306) | (7,294) |
Debt Obligations of Consolidated CFEs | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value, option, liabilities, net realized gains (losses) | (2,368) | 4,371 | 83,146 |
Fair value, option, liabilities, net unrealized gains (losses) | (362,783) | 521,101 | 11,768 |
Fair value, option, liabilities, total gains (losses) | $ (365,151) | $ 525,472 | $ 94,914 |
NET INCOME (LOSS) ATTRIBUTABL_3
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK | |||||||||||
Preferred stock dividend rate (as a percent) | 7.375% | ||||||||||
Weighted Average KKR Holdings Units | |||||||||||
Weighted Average KKR Holdings Units (in shares) | 296,445,196 | 314,458,757 | 344,422,095 | ||||||||
Class A Common Stock | |||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK | |||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders | $ 515,101 | $ 241,213 | $ 514,393 | $ 700,978 | $ (392,982) | $ 640,198 | $ 680,381 | $ 170,102 | $ 1,971,685 | $ 1,097,699 | $ 984,941 |
Excess of carrying value over consideration transferred on redemption of KFN 7.375% Series A LLC Preferred Shares | 0 | 3,102 | 0 | ||||||||
Net Income (Loss) Available to KKR & Co. Inc. Class A Common Stockholders | $ 1,971,685 | $ 1,100,801 | $ 984,941 | ||||||||
Basic Net Income (Loss) Per Share of Class A Common Stock | |||||||||||
Weighted Average Shares of Class A Common Stock Outstanding - Basic (in shares) | 555,379,973 | 546,336,936 | 544,528,863 | 533,892,474 | 532,266,521 | 525,240,214 | 510,586,631 | 487,704,838 | 545,096,999 | 514,102,571 | 468,282,642 |
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Basic (in dollars per share) | $ 0.93 | $ 0.44 | $ 0.94 | $ 1.31 | $ (0.74) | $ 1.22 | $ 1.33 | $ 0.36 | $ 3.62 | $ 2.14 | $ 2.10 |
Diluted Net Income (Loss) Per Share of Class A Common Stock | |||||||||||
Weighted Average Shares of Class A Common Stock Outstanding - Basic (in shares) | 555,379,973 | 546,336,936 | 544,528,863 | 533,892,474 | 532,266,521 | 525,240,214 | 510,586,631 | 487,704,838 | 545,096,999 | 514,102,571 | 468,282,642 |
Weighted Average Unvested Shares of Class A Common Stock and Other Exchangeable Securities (in shares) | 12,590,513 | 19,604,468 | 38,006,329 | ||||||||
Weighted Average Shares of Class A Common Stock Outstanding - Diluted (in shares) | 566,277,984 | 559,532,065 | 554,643,810 | 550,046,440 | 532,266,521 | 545,672,953 | 548,745,498 | 535,918,274 | 557,687,512 | 533,707,039 | 506,288,971 |
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted (in dollars per share) | $ 0.91 | $ 0.43 | $ 0.93 | $ 1.27 | $ (0.74) | $ 1.17 | $ 1.24 | $ 0.32 | $ 3.54 | $ 2.06 | $ 1.95 |
Class A Common Stock | Market Condition Awards | |||||||||||
Weighted Average KKR Holdings Units | |||||||||||
Weighted Average KKR Holdings Units (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
OTHER ASSETS AND ACCOUNTS PAY_3
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES - Other Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |||
Unsettled Investment Sales | $ 86,033,000 | $ 101,789,000 | |
Receivables | 26,893,000 | 27,258,000 | |
Due from Broker | 65,154,000 | 396,512,000 | |
Oil & Gas Assets, net | 215,243,000 | 225,256,000 | |
Deferred Tax Assets, net | 158,574,000 | 538,161,000 | |
Interest Receivable | 156,026,000 | 241,547,000 | |
Fixed Assets, net | 633,025,000 | 451,206,000 | |
Foreign Exchange Contracts and Options | 188,572,000 | 177,264,000 | |
Goodwill | 83,500,000 | 83,500,000 | |
Derivative Assets | 23,139,000 | 40,995,000 | |
Prepaid Taxes | 84,462,000 | 69,165,000 | |
Prepaid Expenses | 14,596,000 | 23,551,000 | |
Operating Lease Right of Use Assets | 121,101,000 | ||
Deferred Financing Costs | 12,374,000 | 13,871,000 | |
Other | 139,544,000 | 146,617,000 | |
Total | 2,008,236,000 | 2,536,692,000 | |
Depreciation, depletion, and amortization of oil and natural gas properties | 31,400,000 | 22,300,000 | $ 24,700,000 |
Accumulated depreciation and amortization of fixed assets | 132,700,000 | 113,500,000 | |
Depreciation and amortization expense of fixed assets | 17,700,000 | 15,000,000 | 15,300,000 |
Operating lease cost | $ 48,000,000 | ||
Impairment of Oil and Gas Properties | $ 0 | $ 0 |
OTHER ASSETS AND ACCOUNTS PAY_4
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES - Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Amounts Payable to Carry Pool | $ 1,448,879 | $ 922,977 |
Unsettled Investment Purchases | 481,337 | 541,165 |
Securities Sold Short | 251,223 | 344,124 |
Derivative Liabilities | 34,174 | 35,640 |
Accrued Compensation and Benefits | 131,719 | 107,887 |
Interest Payable | 234,165 | 212,969 |
Foreign Exchange Contracts and Options | 39,364 | 60,749 |
Accounts Payable and Accrued Expenses | 118,454 | 130,554 |
Taxes Payable | 32,682 | 24,453 |
Uncertain Tax Positions | 65,716 | 66,775 |
Unfunded Revolver Commitments | 75,842 | 52,066 |
Operating Lease Liabilities | 125,086 | |
Other Liabilities | 58,922 | 244,631 |
Total | $ 3,097,563 | $ 2,743,990 |
Lessee, Lease, Description [Line Items] | ||
Operating lease, maximum extension term (in years) | 3 years | |
Operating lease, weighted average remaining lease term (in years) | 4 years 5 months 15 days | |
Operating lease, weighted average discount rate (as a percentage) | 2.53% | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term (in years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term (in years) | 14 years |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Billions | Dec. 31, 2019USD ($) |
Investments in Unconsolidated Investment Funds | |
Variable Interest Entity [Line Items] | |
Commitment to unconsolidated investment funds | $ 2.9 |
VARIABLE INTEREST ENTITIES - Ma
VARIABLE INTEREST ENTITIES - Maximum Exposure to Loss (Details) - Investments in Unconsolidated CLO Vehicles - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Investments | $ 5,329,368 | $ 3,610,502 |
Due from (to) Affiliates, net | 439,374 | 410,489 |
Maximum Exposure to Loss | $ 5,768,742 | $ 4,020,991 |
DEBT OBLIGATIONS - KKR's Borrow
DEBT OBLIGATIONS - KKR's Borrowings (Details) | 12 Months Ended | |||||||||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019EUR (€) | Jul. 31, 2019 | Jul. 01, 2019USD ($) | May 22, 2019EUR (€) | May 23, 2018USD ($) | Mar. 23, 2018JPY (¥) | Feb. 12, 2018USD ($) | Nov. 18, 2017USD ($) | Nov. 17, 2017USD ($) | Mar. 30, 2017USD ($) | Mar. 18, 2015USD ($) | May 29, 2014USD ($) | Feb. 01, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||
Financing Available | $ 6,060,399,000 | $ 6,042,215,000 | ||||||||||||||
Borrowing Outstanding | 27,013,284,000 | 22,341,192,000 | ||||||||||||||
Fair Value | 27,379,075,000 | 22,339,640,000 | ||||||||||||||
Other Debt Obligations | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Financing Available | 3,865,495,000 | 3,840,877,000 | ||||||||||||||
Borrowing Outstanding | 23,035,991,000 | 19,082,322,000 | ||||||||||||||
Fair Value | 23,035,991,000 | 19,082,322,000 | ||||||||||||||
Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 3,977,293,000 | 3,258,870,000 | ||||||||||||||
Fair Value | 4,343,084,000 | 3,257,318,000 | ||||||||||||||
Aggregate principal amount | ¥ | ¥ 40,300,000,000 | |||||||||||||||
Senior Notes | KKR Issued 6.375% Notes Due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 0 | 498,975,000 | ||||||||||||||
Fair Value | 0 | 523,500,000 | ||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Interest rate, stated percentage | 6.375% | 6.375% | 6.375% | 6.375% | ||||||||||||
Unamortized debt issuance costs | (700,000) | |||||||||||||||
Senior Notes | KKR Issued 3.750% Notes Due 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | $ 493,962,000 | 0 | ||||||||||||||
Fair Value | 533,505,000 | 0 | ||||||||||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | ||||||||||||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||
Unamortized debt issuance costs | $ (4,700,000) | |||||||||||||||
Senior Notes | KKR Issued 5.500% Notes Due 2043 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 492,175,000 | 491,836,000 | ||||||||||||||
Fair Value | 613,415,000 | 508,615,000 | ||||||||||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | ||||||||||||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||||
Unamortized debt issuance costs | $ (3,400,000) | (3,600,000) | ||||||||||||||
Senior Notes | KKR Issued 5.125% Notes Due 2044 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 991,106,000 | 990,740,000 | ||||||||||||||
Fair Value | 1,186,670,000 | 974,320,000 | ||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | $ 500,000,000 | $ 500,000,000 | |||||||||||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% | ||||||||||||
Unamortized debt issuance costs | $ (7,700,000) | (8,000,000) | ||||||||||||||
Senior Notes | KKR Issued 0.509% Notes Due 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 228,280,000 | 226,895,000 | ||||||||||||||
Fair Value | 228,026,000 | 227,298,000 | ||||||||||||||
Aggregate principal amount | $ 229,300,000 | ¥ 25,000,000,000 | ¥ 25,000,000,000 | |||||||||||||
Interest rate, stated percentage | 0.509% | 0.509% | 0.509% | 0.509% | ||||||||||||
Unamortized debt issuance costs | $ (1,000,000) | (1,300,000) | ||||||||||||||
Senior Notes | KKR Issued 0.764% Notes Due 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 45,255,000 | 44,923,000 | ||||||||||||||
Fair Value | 45,856,000 | 45,161,000 | ||||||||||||||
Aggregate principal amount | $ 45,900,000 | ¥ 5,000,000,000 | ¥ 5,000,000,000 | |||||||||||||
Interest rate, stated percentage | 0.764% | 0.764% | 0.764% | 0.764% | ||||||||||||
Unamortized debt issuance costs | $ (600,000) | (700,000) | ||||||||||||||
Senior Notes | KKR Issued 1.595% Notes Due 2038 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 93,325,000 | 92,817,000 | ||||||||||||||
Fair Value | 98,524,000 | 94,568,000 | ||||||||||||||
Aggregate principal amount | $ 94,500,000 | ¥ 10,300,000,000 | ¥ 10,300,000,000 | |||||||||||||
Interest rate, stated percentage | 1.595% | 1.595% | 1.595% | 1.595% | ||||||||||||
Unamortized debt issuance costs | $ (1,100,000) | (1,200,000) | ||||||||||||||
Senior Notes | KKR Issued 1.625% Notes Due 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 718,478,000 | 0 | ||||||||||||||
Fair Value | 758,903,000 | 0 | ||||||||||||||
Aggregate principal amount | $ 727,900,000 | € 650,000,000 | € 650,000,000 | |||||||||||||
Interest rate, stated percentage | 1.625% | 1.625% | 1.625% | 1.625% | ||||||||||||
Unamortized debt issuance costs | $ (6,300,000) | |||||||||||||||
Senior Notes | KFN Issued 5.500% Notes Due 2032 | KFN | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 494,054,000 | 493,568,000 | ||||||||||||||
Fair Value | 504,807,000 | 496,359,000 | ||||||||||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | $ 125,000,000 | $ 375,000,000 | ||||||||||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||||
Unamortized debt issuance costs | $ (4,000,000) | (4,400,000) | ||||||||||||||
Senior Notes | KFN Issued 5.200% Notes Due 2033 | KFN | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 118,411,000 | 118,291,000 | ||||||||||||||
Fair Value | 117,834,000 | 115,582,000 | ||||||||||||||
Aggregate principal amount | $ 120,000,000 | $ 120,000,000 | ||||||||||||||
Interest rate, stated percentage | 5.20% | 5.20% | 5.20% | 5.20% | ||||||||||||
Unamortized debt issuance costs | $ (1,600,000) | (1,700,000) | ||||||||||||||
Senior Notes | KFN Issued 5.400% Notes Due 2033 | KFN | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 68,774,000 | 68,683,000 | ||||||||||||||
Fair Value | 70,059,000 | 68,780,000 | ||||||||||||||
Aggregate principal amount | $ 70,000,000 | $ 70,000,000 | ||||||||||||||
Interest rate, stated percentage | 5.40% | 5.40% | 5.40% | 5.40% | ||||||||||||
Unamortized debt issuance costs | $ (1,200,000) | (1,300,000) | ||||||||||||||
Senior Notes | KFN Issued Junior Subordinated Notes | KFN | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Outstanding | 233,473,000 | 232,142,000 | ||||||||||||||
Fair Value | 185,485,000 | $ 203,135,000 | ||||||||||||||
Aggregate principal amount | $ 258,500,000 | |||||||||||||||
Weighted average interest rate (percentage) | 4.40% | 5.00% | 4.40% | 4.40% | ||||||||||||
Weighted average remaining maturity (in years) | 16 years 9 months 18 days | 17 years 9 months 18 days | ||||||||||||||
Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Financing Available | $ 2,194,904,000 | $ 2,201,338,000 | ||||||||||||||
Revolving Credit Facility | Corporate Credit Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Financing Available | 1,000,000,000 | 1,000,000,000 | ||||||||||||||
Borrowing Outstanding | 0 | 0 | ||||||||||||||
Fair Value | 0 | 0 | ||||||||||||||
Revolving Credit Facility | KCM Credit Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Financing Available | 444,904,000 | 451,338,000 | ||||||||||||||
Borrowing Outstanding | 0 | 0 | ||||||||||||||
Fair Value | 0 | 0 | ||||||||||||||
Revolving Credit Facility | KCM Short-Term Credit Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Financing Available | 750,000,000 | 750,000,000 | ||||||||||||||
Borrowing Outstanding | 0 | 0 | ||||||||||||||
Fair Value | $ 0 | $ 0 |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) | Jul. 31, 2019USD ($) | Jul. 01, 2019USD ($) | Jun. 27, 2019USD ($) | May 22, 2019EUR (€) | Dec. 07, 2018USD ($) | Jun. 28, 2018USD ($) | May 23, 2018USD ($) | Mar. 23, 2018JPY (¥) | Feb. 12, 2018USD ($) | Mar. 30, 2017USD ($) | Mar. 30, 2016 | Feb. 01, 2013USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2007 | Dec. 31, 2019JPY (¥) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Nov. 18, 2017USD ($) | Nov. 17, 2017USD ($) | Mar. 18, 2015USD ($) | May 29, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 27,013,284,000 | $ 22,341,192,000 | |||||||||||||||||||
Assets | 60,899,319,000 | 50,743,375,000 | |||||||||||||||||||
Number of trusts established to issue trust preferred securities (in trusts) | 6 | ||||||||||||||||||||
Term of trusts (in years) | 30 years | ||||||||||||||||||||
Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | 3,977,293,000 | 3,258,870,000 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||
Aggregate principal amount | ¥ | ¥ 40,300,000,000 | ||||||||||||||||||||
Corporate Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||||||||||||||
Line of credit addition to maximum borrowing capacity | 500,000,000 | ||||||||||||||||||||
Line of credit facility optional expansion maximum borrowing capacity | $ 1,500,000,000 | ||||||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||||||
KCM Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | ||||||||||||||||||||
KCM Credit Agreement | Letter of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | ||||||||||||||||||||
Letters of credit outstanding | 55,100,000 | 48,700,000 | |||||||||||||||||||
KKR Issued 1.625% Notes Due 2029 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 718,478,000 | 0 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Interest rate, stated percentage | 1.625% | 1.625% | 1.625% | 1.625% | |||||||||||||||||
Aggregate principal amount | € 650,000,000 | $ 727,900,000 | € 650,000,000 | ||||||||||||||||||
KKR Issued 3.750% Notes Due 2029 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 493,962,000 | 0 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | 3.75% | |||||||||||||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||||||||
KKR Issued 5.500% Notes Due 2043 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 492,175,000 | 491,836,000 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Redemption price | 101.00% | ||||||||||||||||||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | 5.50% | |||||||||||||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||||||||
KKR Issued 5.125% Notes Due 2044 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 991,106,000 | 990,740,000 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Redemption price | 101.00% | ||||||||||||||||||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% | |||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||||||||||||
KKR Issued 0.509% Notes Due 2023 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 228,280,000 | 226,895,000 | |||||||||||||||||||
Interest rate, stated percentage | 0.509% | 0.509% | 0.509% | 0.509% | |||||||||||||||||
Aggregate principal amount | ¥ 25,000,000,000 | $ 229,300,000 | ¥ 25,000,000,000 | ||||||||||||||||||
KKR Issued 0.764% Notes Due 2025 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 45,255,000 | 44,923,000 | |||||||||||||||||||
Interest rate, stated percentage | 0.764% | 0.764% | 0.764% | 0.764% | |||||||||||||||||
Aggregate principal amount | ¥ 5,000,000,000 | $ 45,900,000 | ¥ 5,000,000,000 | ||||||||||||||||||
KKR Issued 1.595% Notes Due 2038 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 93,325,000 | 92,817,000 | |||||||||||||||||||
Interest rate, stated percentage | 1.595% | 1.595% | 1.595% | 1.595% | |||||||||||||||||
Aggregate principal amount | ¥ 10,300,000,000 | $ 94,500,000 | ¥ 10,300,000,000 | ||||||||||||||||||
KKR Issued 6.375% Notes Due 2020 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 0 | 498,975,000 | |||||||||||||||||||
Interest rate, stated percentage | 6.375% | 6.375% | 6.375% | 6.375% | |||||||||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||||||||||||
Principal amount redeemed | $ 500,000,000 | ||||||||||||||||||||
Payment of make-whole premium in connection with redemption | $ 22,800,000 | ||||||||||||||||||||
Revolving Credit Facility | Corporate Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | 0 | 0 | |||||||||||||||||||
Revolving Credit Facility | KCM Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | 0 | 0 | |||||||||||||||||||
Revolving Credit Facility | KCM Short-Term Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | 0 | 0 | |||||||||||||||||||
Revolving Credit Facility | KCM Short-Term Credit Agreement | Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | $ 500,000,000 | |||||||||||||||||||
Debt instrument, term | 364 days | 364 days | |||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | 17,140,074,000 | 15,351,541,000 | |||||||||||||||||||
Assets | 36,869,615,000 | 31,481,330,000 | |||||||||||||||||||
Consolidated VIEs | Consolidated CFEs | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | 14,658,137,000 | 13,958,554,000 | |||||||||||||||||||
Assets | 15,682,487,000 | 15,310,494,000 | |||||||||||||||||||
Minimum | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, fee amount | 0.0020 | ||||||||||||||||||||
Minimum | Corporate Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.06% | ||||||||||||||||||||
Minimum | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||||||||||||||||
Minimum | LIBOR | Corporate Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.565% | ||||||||||||||||||||
Minimum | LIBOR | Revolving Credit Facility | KCM Short-Term Credit Agreement | Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||||||||||||||||
Minimum | Base Rate | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.25% | ||||||||||||||||||||
Minimum | Base Rate | Revolving Credit Facility | KCM Short-Term Credit Agreement | Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.25% | ||||||||||||||||||||
Maximum | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, fee amount | 0.0040 | ||||||||||||||||||||
Maximum | Corporate Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.15% | ||||||||||||||||||||
Maximum | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||||||||||
Maximum | LIBOR | Corporate Credit Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.10% | ||||||||||||||||||||
Maximum | LIBOR | Revolving Credit Facility | KCM Short-Term Credit Agreement | Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||||||||||
Maximum | Base Rate | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||||||||||||||
Maximum | Base Rate | Revolving Credit Facility | KCM Short-Term Credit Agreement | Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||||||||||||||
On or after February 22, 2029 | KKR Issued 1.625% Notes Due 2029 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||
Redemption price in the event of a change of control repurchase | 101.00% | ||||||||||||||||||||
Redemption price in the event of certain changes affecting taxation | 100.00% | ||||||||||||||||||||
On or after April 1, 2029 | KKR Issued 3.750% Notes Due 2029 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||
Redemption price in the event of a change of control repurchase | 101.00% | ||||||||||||||||||||
KFN | KFN Issued 5.500% Notes Due 2032 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 494,054,000 | 493,568,000 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | 5.50% | |||||||||||||||||
Proceeds from issuance of debt | $ 368,600,000 | ||||||||||||||||||||
Aggregate principal amount | $ 375,000,000 | $ 500,000,000 | $ 500,000,000 | $ 125,000,000 | |||||||||||||||||
KFN | KFN Issued 5.200% Notes Due 2033 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 118,411,000 | 118,291,000 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Interest rate, stated percentage | 5.20% | 5.20% | 5.20% | 5.20% | |||||||||||||||||
Aggregate principal amount | $ 120,000,000 | $ 120,000,000 | |||||||||||||||||||
KFN | KFN Issued 5.400% Notes Due 2033 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | $ 68,774,000 | 68,683,000 | |||||||||||||||||||
Debt instrument, event of default minimum percentage of aggregate principal amount held to declare notes, due and payable | 25.00% | ||||||||||||||||||||
Redemption price | 101.00% | ||||||||||||||||||||
Interest rate, stated percentage | 5.40% | 5.40% | 5.40% | 5.40% | |||||||||||||||||
Aggregate principal amount | $ 70,000,000 | $ 70,000,000 | |||||||||||||||||||
KFN | KFN Issued Junior Subordinated Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||
KFN | KFN Issued Junior Subordinated Notes | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Borrowing Outstanding | 233,473,000 | $ 232,142,000 | |||||||||||||||||||
Aggregate principal amount | $ 258,500,000 | ||||||||||||||||||||
KFN | Minimum | LIBOR | KFN Issued Junior Subordinated Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.25% | ||||||||||||||||||||
KFN | Maximum | LIBOR | KFN Issued Junior Subordinated Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.65% | ||||||||||||||||||||
KFN | On or after March 30, 2022 | KFN Issued 5.500% Notes Due 2032 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Redemption price in the event of certain changes affecting taxation | 100.00% | 101.00% | |||||||||||||||||||
KFN | On or after February 12, 2023 | KFN Issued 5.200% Notes Due 2033 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Redemption price | 100.00% | 101.00% | |||||||||||||||||||
KFN | On or After May 23, 2023 | KFN Issued 5.400% Notes Due 2033 | Senior Notes | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||
Interest rate, stated percentage | 5.40% |
DEBT OBLIGATIONS - Obligations
DEBT OBLIGATIONS - Obligations of Consolidated CLOs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Financing Available | $ 6,060,399 | $ 6,042,215 |
Borrowing Outstanding | 27,013,284 | 22,341,192 |
Fair Value | 27,379,075 | $ 22,339,640 |
Debt Obligations of Consolidated CFEs | ||
Debt Instrument [Line Items] | ||
Financing Available | 3,865,495 | |
Borrowing Outstanding | 23,035,991 | |
Fair Value | 23,035,991 | |
Investment Financing Arrangements | ||
Debt Instrument [Line Items] | ||
Financing Available | 3,865,495 | |
Borrowing Outstanding | 8,377,854 | |
Fair Value | $ 8,377,854 | |
Weighted Average Interest Rate | 4.00% | |
Weighted Average Remaining Maturity in Years | 4 years 4 months 24 days | |
Subordinated Notes | Debt Obligations of Consolidated CFEs | ||
Debt Instrument [Line Items] | ||
Financing Available | $ 0 | |
Borrowing Outstanding | 14,658,137 | |
Fair Value | $ 14,658,137 | |
Weighted Average Interest Rate | 3.00% |
DEBT OBLIGATIONS - Debt Covenan
DEBT OBLIGATIONS - Debt Covenants (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 1,053,418 |
2021 | 2,458,087 |
2022 | 1,389,542 |
2023 | 1,638,109 |
2024 | 267,616 |
Thereafter | 20,344,938 |
Long-term Debt | 27,151,710 |
Revolving Credit Facilities | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Long-term Debt | 0 |
Notes Issued | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 229,250 |
2024 | 0 |
Thereafter | 3,816,727 |
Long-term Debt | 4,045,977 |
Other Debt Obligations | |
Debt Instrument [Line Items] | |
2020 | 1,053,418 |
2021 | 2,458,087 |
2022 | 1,389,542 |
2023 | 1,408,859 |
2024 | 267,616 |
Thereafter | 16,528,211 |
Long-term Debt | $ 23,105,733 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 01, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax asset related to partial step-up in disposal of assets | $ 257,100 | |||
Deferred tax asset related to partial step-up in disposal of assets, additional amount | $ 45,000 | |||
Effective income tax rate | 10.23% | (8.60%) | 8.06% | |
Decrease in uncertain tax positions within 12 months | $ 0 | |||
Unrecognized tax benefits, income tax penalties expense | (400) | $ 300 | ||
Unrecognized tax benefits, interest on income taxes expense | (400) | 2,600 | ||
Unrecognized tax benefits, income tax penalties accrued | 2,200 | 2,600 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 10,200 | 10,600 | ||
State and Local | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 162,200 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
Federal Income Tax | $ 56,046 | $ 105,245 | $ (34,611) | ||||||||
State and Local Income Tax | 10,925 | 16,997 | 5,229 | ||||||||
Foreign Income Tax | 38,238 | 41,716 | 79,371 | ||||||||
Subtotal | 105,209 | 163,958 | 49,989 | ||||||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Federal Income Tax | 428,110 | (300,536) | 178,449 | ||||||||
State and Local Income Tax | 49,148 | (52,240) | (424) | ||||||||
Foreign Income Tax | (53,717) | (5,280) | (3,688) | ||||||||
Subtotal | 423,541 | (358,056) | 174,337 | ||||||||
Total Income Taxes | $ 142,626 | $ 53,132 | $ 165,399 | $ 167,593 | $ (143,294) | $ (129,405) | $ 60,960 | $ 17,641 | 528,750 | (194,098) | 224,326 |
Pre-tax income generated in foreign jurisdictions | $ 126,000 | $ 141,000 | $ 171,600 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate to the U.S. Federal Statutory Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. Federal Income Tax Rate | 21.00% | 21.00% | 35.00% |
Income not attributable to KKR & Co. Inc. | (10.57%) | (20.13%) | (38.64%) |
Foreign Income Taxes | (0.28%) | 1.66% | 2.62% |
State and Local Income Taxes | 0.85% | (0.16%) | 0.05% |
Compensation Charges Borne by KKR Holdings | 2.75% | 1.69% | 6.29% |
Conversion Benefit | (0.90%) | (11.19%) | 0.00% |
Change in Valuation Allowance | 0.00% | (0.53%) | 0.00% |
Impact of 2017 Tax Act | 0 | 0 | 0.0352 |
Other | (2.62%) | (0.94%) | (0.78%) |
Effective Income Tax Rate | 10.23% | (8.60%) | 8.06% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets or Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets | ||
Fund Management Fee Credits & Refunds | $ 65,168 | $ 60,740 |
Equity Based Compensation | 28,731 | 21,949 |
KKR Holdings Unit Exchanges | 152,759 | 127,275 |
Depreciation and Amortization | 300,851 | 293,481 |
Federal Foreign Tax Credit | 19,152 | 0 |
Investment Basis Differences / Net Unrealized Gains & Losses | 0 | 16,613 |
Net Operating Loss Carryforwards | 13,381 | 3,607 |
Other | 11,732 | 14,496 |
Total Deferred Tax Assets before Valuation Allowance | 591,774 | 538,161 |
Valuation Allowance | 0 | 0 |
Total Deferred Tax Assets | 591,774 | 538,161 |
Deferred Tax Liabilities | ||
Investment Basis Differences / Net Unrealized Gains | 414,048 | 0 |
Operating Lease Right-of-Use Asset | 19,152 | |
Total Deferred Tax Liabilities | 433,200 | 0 |
Total Deferred Taxes, Net | $ 158,574 | $ 538,161 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, beginning of period | $ 53,598 | $ 48,170 | $ 43,996 |
Gross increases in tax positions in prior periods | 0 | 0 | 0 |
Gross decreases in tax positions in prior periods | (2,443) | 0 | 0 |
Gross increases in tax positions in current period | 4,107 | 5,542 | 4,406 |
Lapse of statute of limitations | (1,890) | (114) | (232) |
Unrecognized Tax Benefits, end of period | $ 53,372 | $ 53,598 | $ 48,170 |
EQUITY BASED COMPENSATION - Exp
EQUITY BASED COMPENSATION - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation and benefits | |||
Expense associated with equity based compensation | |||
Equity based expenses | $ 298,912 | $ 347,436 | $ 347,512 |
Compensation and benefits | KKR Holdings Principal Awards | |||
Expense associated with equity based compensation | |||
Equity based expenses | 91,123 | 104,625 | 143,204 |
Compensation and benefits | Equity incentive plan awards | |||
Expense associated with equity based compensation | |||
Equity based expenses | 207,789 | 242,811 | 204,308 |
Equity method investments | Net gains (losses) from investment activities | |||
Expense associated with equity based compensation | |||
Equity based expenses | $ 1,400 | $ 11,700 | $ 11,200 |
EQUITY BASED COMPENSATION - Nar
EQUITY BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 02, 2017 | Nov. 30, 2016 | Feb. 29, 2016 | Dec. 31, 2019 | Dec. 31, 2018 |
KKR group partnerships | |||||
Equity Based Payments | |||||
Percentage owned by KKR Holdings L.P. | 35.90% | ||||
KKR Holdings Principal Awards | |||||
Equity Based Payments | |||||
Vesting period (in years) | 5 years | ||||
Minimum transfer restriction period with respect to one-half awards vested (in years) | 1 year | ||||
Portion of awards vested having one-year transfer restriction period (as a percent) | 50.00% | ||||
Minimum transfer restriction period with respect to remaining one-half awards vested (in years) | 2 years | ||||
Portion of awards vested having two-year transfer restriction period (as a percent) | 50.00% | ||||
Minimum retained ownership required to continuously hold common share equivalents to as percentage of cumulatively vested interests | 25.00% | ||||
Forfeiture rate assumed (as a percent) | 7.00% | ||||
Estimated unrecognized equity-based payment expense | $ 320.9 | $ 153.3 | |||
Weighted average remaining vesting period over which unvested units are expected to vest (in years) | 1 year 6 months | ||||
Common units conversion basis | 1 | ||||
Number of common units owned in KKR Group Partnership Units (in shares) | 290,381,345 | 299,081,239 | |||
Percentage of outstanding units not granted (less than) | 1.00% | ||||
Modified awards granted (in shares) | 28,900,000 | ||||
KKR Holdings Principal Awards | Minimum | |||||
Equity Based Payments | |||||
Vesting period (in years) | 3 years | ||||
KKR Holdings Principal Awards | Maximum | |||||
Equity Based Payments | |||||
Vesting period (in years) | 5 years | ||||
Equity Incentive Plans | |||||
Equity Based Payments | |||||
Total awards issuable as a percentage of diluted common stock outstanding | 15.00% | ||||
Minimum retained ownership required to continuously hold common share equivalents to as percentage of cumulatively vested interests | 15.00% | ||||
Forfeiture rate assumed (as a percent) | 7.00% | ||||
Estimated unrecognized equity-based payment expense | $ 295.9 | ||||
Weighted average remaining vesting period over which unvested units are expected to vest (in years) | 1 year 2 months 12 days | ||||
Equity Incentive Plans | Minimum | |||||
Equity Based Payments | |||||
Vesting period (in years) | 3 years | ||||
Equity Incentive Plans | Maximum | |||||
Equity Based Payments | |||||
Vesting period (in years) | 5 years | ||||
Equity Incentive Plans | Market Condition Awards | |||||
Equity Based Payments | |||||
Awards granted per individual (in shares) | 2,500,000 | ||||
Performance condition, closing market price (in dollars per share) | $ 40 | ||||
Required term of performance condition (in days) | 10 days | ||||
Fair value of award at grant date (in dollars per share) | $ 4.02 | ||||
Compensation expense recognition period (in years) | 3 years | ||||
Estimated unrecognized equity-based payment expense | $ 5.6 | ||||
Equity Incentive Plans | KKR Holdings | |||||
Equity Based Payments | |||||
Minimum transfer restriction period with respect to one-half awards vested (in years) | 1 year | ||||
Portion of awards vested having one-year transfer restriction period (as a percent) | 50.00% | ||||
Minimum transfer restriction period with respect to remaining one-half awards vested (in years) | 2 years | ||||
Portion of awards vested having two-year transfer restriction period (as a percent) | 50.00% | ||||
KKR group partnerships | KKR Holdings | |||||
Equity Based Payments | |||||
Percentage owned by KKR Holdings L.P. | 34.10% |
EQUITY BASED COMPENSATION - Dis
EQUITY BASED COMPENSATION - Discount Per Share for Lack of Participation Rights in Expected Dividends (Details) - $ / shares | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |
Dividends Payable [Line Items] | ||||||
Annual discount per share (in dollars per share) | $ 0.295 | $ 0.34 | $ 0.50 | $ 0.67 | ||
Class A Common Stock | ||||||
Dividends Payable [Line Items] | ||||||
Annual discount per share (in dollars per share) | $ 0.68 | $ 0.68 | $ 0.64 | $ 0.50 |
EQUITY BASED COMPENSATION - Mar
EQUITY BASED COMPENSATION - Market Condition Awards (Details) - Equity Incentive Plans - Market Condition Awards | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | $ 19.90 |
Risk Free Rate | 2.02% |
Volatility | 25.00% |
Dividend Yield | 3.42% |
Expected Cost of Equity | 11.02% |
EQUITY BASED COMPENSATION - Est
EQUITY BASED COMPENSATION - Estimated Unrecognized Expense (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Nov. 30, 2016 |
Equity Incentive Plans | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | $ 295.9 | |
Equity Incentive Plans | 2020 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 162.8 | |
Equity Incentive Plans | 2021 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 86.4 | |
Equity Incentive Plans | 2022 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 36.9 | |
Equity Incentive Plans | 2023 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 7.8 | |
Equity Incentive Plans | 2024 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 1.7 | |
Equity Incentive Plans | 2025 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 0.3 | |
KKR Holdings Principal Awards | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 153.3 | $ 320.9 |
KKR Holdings Principal Awards | 2020 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 82 | |
KKR Holdings Principal Awards | 2021 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | 45.7 | |
KKR Holdings Principal Awards | 2022 | ||
Equity Based Payments | ||
Estimated unrecognized equity-based payment expense | $ 25.6 |
EQUITY BASED COMPENSATION - Awa
EQUITY BASED COMPENSATION - Awards Rollforward (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
KKR Holdings Principal Awards | |
Shares | |
Balance at the beginning of the period (in shares) | shares | 24,123,993 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (6,162,014) |
Forfeitures (in shares) | shares | (1,392,500) |
Balance at the end of the period (in shares) | shares | 16,569,479 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 14.42 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 14.86 |
Forfeitures (in dollars per share) | $ / shares | 12.25 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 14.43 |
Equity Incentive Plans | |
Shares | |
Balance at the beginning of the period (in shares) | shares | 33,400,183 |
Granted (in shares) | shares | 4,742,836 |
Vested (in shares) | shares | (13,816,158) |
Forfeitures (in shares) | shares | (1,629,216) |
Balance at the end of the period (in shares) | shares | 22,697,645 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 16.23 |
Granted (in dollars per share) | $ / shares | 25.98 |
Vested (in dollars per share) | $ / shares | 15.79 |
Forfeitures (in dollars per share) | $ / shares | 17.23 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 18.46 |
EQUITY BASED COMPENSATION - Rem
EQUITY BASED COMPENSATION - Remaining Vesting Tranches (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Incentive Plans | ||
Equity Based Payments | ||
Principal units (in shares) | 22,697,645 | 33,400,183 |
Equity Incentive Plans | April 1, 2020 | ||
Equity Based Payments | ||
Principal units (in shares) | 6,897,566 | |
Equity Incentive Plans | October 1, 2020 | ||
Equity Based Payments | ||
Principal units (in shares) | 4,161,077 | |
Equity Incentive Plans | April 1, 2021 | ||
Equity Based Payments | ||
Principal units (in shares) | 4,765,284 | |
Equity Incentive Plans | October 1, 2021 | ||
Equity Based Payments | ||
Principal units (in shares) | 2,611,618 | |
Equity Incentive Plans | April 1, 2022 | ||
Equity Based Payments | ||
Principal units (in shares) | 1,665,568 | |
Equity Incentive Plans | October 1, 2022 | ||
Equity Based Payments | ||
Principal units (in shares) | 1,309,649 | |
Equity Incentive Plans | April 1, 2023 | ||
Equity Based Payments | ||
Principal units (in shares) | 841,805 | |
Equity Incentive Plans | October 1, 2023 | ||
Equity Based Payments | ||
Principal units (in shares) | 130,649 | |
Equity Incentive Plans | April 1, 2024 | ||
Equity Based Payments | ||
Principal units (in shares) | 182,585 | |
Equity Incentive Plans | October 1, 2024 | ||
Equity Based Payments | ||
Principal units (in shares) | 5,133 | |
Equity Incentive Plans | April 1, 2025 | ||
Equity Based Payments | ||
Principal units (in shares) | 126,711 | |
KKR Holdings Principal Awards | ||
Equity Based Payments | ||
Principal units (in shares) | 16,569,479 | 24,123,993 |
KKR Holdings Principal Awards | April 1, 2020 | ||
Equity Based Payments | ||
Principal units (in shares) | 124,479 | |
KKR Holdings Principal Awards | May 1, 2020 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,085,000 | |
KKR Holdings Principal Awards | October 1, 2020 | ||
Equity Based Payments | ||
Principal units (in shares) | 2,940,000 | |
KKR Holdings Principal Awards | May 1, 2021 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,085,000 | |
KKR Holdings Principal Awards | October 1, 2021 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,425,000 | |
KKR Holdings Principal Awards | October 1, 2022 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,910,000 |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Summary of Due From and Due To Affiliates (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Due from Affiliates | $ 717,399 | $ 657,189 |
Due to Affiliates | 286,098 | 275,584 |
Portfolio Companies | ||
Related Party Transaction [Line Items] | ||
Due from Affiliates | 120,391 | 82,204 |
Unconsolidated Investment Funds | ||
Related Party Transaction [Line Items] | ||
Due from Affiliates | 594,184 | 568,211 |
Due to Affiliates | 154,810 | 157,722 |
Related Entities | ||
Related Party Transaction [Line Items] | ||
Due from Affiliates | 2,824 | 6,774 |
Due to KKR Holdings in connection with the tax receivable agreement | ||
Related Party Transaction [Line Items] | ||
Due to Affiliates | $ 131,288 | $ 117,862 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Amount required to be paid to transferees as percentage of cash savings in US federal, state and local income tax | 85.00% | ||
Expected benefit as percentage of cash savings in income tax | 15.00% | ||
Number of days within which payments required to be made under tax receivable agreement after filing of the tax return | 90 days | ||
Deduct: Gain from remeasurement of tax receivable agreement liability | $ 0 | $ 0 | $ 67,221,000 |
Cash payments made under tax receivable agreement | 11,800,000 | 0 | 0 |
Cumulative income tax savings realized | 6,300,000 | ||
Cash investments | 433,000,000 | 415,000,000 | 505,100,000 |
Expenses from transactions with related party | 3,800,000 | 3,600,000 | 3,900,000 |
Payments made to related party | $ 8,100,000 | $ 7,900,000 | $ 7,600,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 1 |
EQUITY - Repurchase Program (De
EQUITY - Repurchase Program (Details) - Share Repurchase Program - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 500,000,000 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Stock repurchased (in shares) | 2,859,452 | 7,540,551 | |
Stock retired (in shares) | 3,670,019 | 1,675,306 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Percentage of carried interest received by general partners (up to) | 1.00% | ||
Preferred stock dividend rate (as a percentage) | 7.375% | ||
Preferred stock redemption price (in dollars per share) | $ 25 | ||
Preferred stock change of control event redemption price (in dollars per share) | $ 25.25 | ||
Preferred stock increase in dividend rate (as a percentage) | 5.00% | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock shares authorized (in shares) | 13,800,000 | ||
Preferred stock dividend rate (as a percentage) | 6.75% | ||
Preferred stock redemption price (in dollars per share) | $ 25 | ||
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock shares authorized (in shares) | 6,200,000 | ||
Preferred stock dividend rate (as a percentage) | 6.50% | ||
Preferred stock redemption price (in dollars per share) | $ 25 |
EQUITY - Noncontrolling Interes
EQUITY - Noncontrolling Interests Held by KKR Holdings (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Capital contributions | $ 2,410,722 | $ 3,119,917 | ||||
Capital distributions | (1,734,715) | [1] | (2,471,179) | |||
Changes in consolidation | 370,307 | (1,682) | ||||
Noncontrolling Interests Held by KKR Holdings | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Net income (loss) attributable to noncontrolling interests | $ 1,369,671 | $ 561,052 | 791,021 | |||
Noncontrolling Interests | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balance at the beginning of the period | 12,866,324 | 15,610,358 | 12,866,324 | 10,545,902 | ||
Net income (loss) attributable to noncontrolling interests | 2,634,491 | 1,357,235 | 1,467,765 | |||
Other comprehensive income (loss), net of tax | (2,340) | (31,071) | 31,096 | |||
Exchange of KKR Holdings Units to Class A Common Stock and Other | (161,825) | (619,894) | (289,061) | |||
Equity-based and other non-cash compensation | 91,297 | 100,632 | 141,727 | |||
Capital contributions | 2,410,722 | 4,669,756 | 4,359,615 | 3,119,917 | ||
Capital distributions | (1,550,955) | [1] | (3,169,976) | (3,015,655) | (2,125,842) | [1] |
Changes in consolidation | 370,307 | 23,123 | 593,172 | (1,682) | ||
Transfers of interests under common control and Other | (23,498) | |||||
Balance at the end of the period | 19,694,884 | 15,610,358 | 12,866,324 | |||
Noncontrolling Interests | Noncontrolling Interests in Consolidated Entities | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balance at the beginning of the period | 8,072,849 | 10,984,910 | 8,072,849 | 6,252,565 | ||
Net income (loss) attributable to noncontrolling interests | 1,264,820 | 796,183 | 676,744 | |||
Other comprehensive income (loss), net of tax | (1,803) | (18,512) | 9,192 | |||
Exchange of KKR Holdings Units to Class A Common Stock and Other | 0 | (52,585) | (50,120) | |||
Equity-based and other non-cash compensation | 0 | 0 | 0 | |||
Capital contributions | 4,668,114 | 4,357,219 | 3,116,889 | |||
Capital distributions | (2,972,914) | (2,763,416) | (1,890,232) | |||
Changes in consolidation | 23,123 | 593,172 | (1,682) | |||
Transfers of interests under common control and Other | (40,507) | |||||
Balance at the end of the period | 13,966,250 | 10,984,910 | 8,072,849 | |||
Noncontrolling Interests | Noncontrolling Interests Held by KKR Holdings | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balance at the beginning of the period | $ 4,793,475 | 4,625,448 | 4,793,475 | 4,293,337 | ||
Net income (loss) attributable to noncontrolling interests | 1,369,671 | 561,052 | 791,021 | |||
Other comprehensive income (loss), net of tax | (537) | (12,559) | 21,904 | |||
Exchange of KKR Holdings Units to Class A Common Stock and Other | (161,825) | (567,309) | (238,941) | |||
Equity-based and other non-cash compensation | 91,297 | 100,632 | 141,727 | |||
Capital contributions | 1,642 | 2,396 | 3,028 | |||
Capital distributions | (197,062) | (252,239) | (235,610) | |||
Changes in consolidation | 0 | 0 | 0 | |||
Transfers of interests under common control and Other | 17,009 | |||||
Balance at the end of the period | $ 5,728,634 | $ 4,625,448 | $ 4,793,475 | |||
[1] | $0.34 per common unit, $0.843750 per Series A preferred unit, and $0.812500 per Series B preferred unit. |
EQUITY - Net Income (Loss) Attr
EQUITY - Net Income (Loss) Attributable To Noncontrolling Interests Held by KKR Holdings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Net income (loss) | $ (1,314,152) | $ (336,612) | $ (1,361,730) | $ (1,627,046) | $ 1,070,613 | $ (1,352,269) | $ (1,566,396) | $ (602,894) | $ (4,639,540) | $ (2,450,946) | $ (2,560,042) |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | $ 0 | $ 0 | $ 0 | $ 0 | $ (57,246) | $ 12,236 | $ (18,016) | $ 25,674 | 0 | (37,352) | 73,972 |
(-) Net income (loss) attributable to Noncontrolling Interests in consolidated entities | 1,264,820 | 796,183 | 676,744 | ||||||||
(-) Preferred Stock Dividends | 33,364 | 33,364 | 33,364 | ||||||||
() Income tax expense (benefit) attributable to KKR & Co. Inc. | 539,466 | (229,232) | 150,812 | ||||||||
Less: Gain from remeasurement of tax receivable agreement liability attributable to KKR & Co. Inc. | 0 | 0 | 67,221 | ||||||||
Net income (loss) attributable to KKR & Co. Inc. Class A Common Stockholders and KKR Holdings | 3,880,822 | 1,429,519 | 1,859,553 | ||||||||
KKR Holdings | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings | $ 1,369,671 | $ 561,052 | $ 791,021 |
EQUITY - Redeemable Noncontroll
EQUITY - Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Redeemable Noncontrolling Interests | |||||||||||
Balance at the beginning of the period | $ 1,122,641 | $ 610,540 | $ 1,122,641 | $ 610,540 | $ 632,348 | ||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | $ 0 | $ 0 | $ 0 | $ 0 | $ (57,246) | $ 12,236 | $ (18,016) | $ 25,674 | 0 | (37,352) | 73,972 |
Capital contributions | 0 | 565,553 | 220,167 | ||||||||
Capital distributions | 0 | (16,100) | (890) | ||||||||
Changes in consolidation | (1,122,641) | (315,057) | |||||||||
Balance at the end of the period | $ 0 | $ 1,122,641 | $ 0 | $ 1,122,641 | $ 610,540 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contingent Repayment Guarantees (Details) | Dec. 31, 2019USD ($) |
Contingent Repayment Guarantees | |
Private equity fund carried interest amount subject to clawback provision assuming liquidation at fair value | $ 36,900,000 |
Liquidation value for clawback obligation | 0 |
Clawback obligation amount if private equity vehicles liquidated at fair value | 2,500,000,000 |
KKR | |
Investment Commitments | |
Unfunded commitments | 5,241,200,000 |
Principal Activities | |
Investment Commitments | |
Unfunded commitments | 800,000 |
Capital Markets | |
Investment Commitments | |
Unfunded commitments | $ 1,089,400,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Minimum Future Lease Payments (Details) $ in Thousands, £ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 | $ 52,811 | |
2021 | 24,954 | |
2022 | 20,720 | |
2023 | 14,570 | |
2024 | 4,491 | |
Thereafter | 14,762 | |
Total lease payments required | 132,308 | |
Less: Imputed Interest | (7,222) | |
Total operating lease liabilities | 125,086 | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | ||
Future lease payments for lease not yet commenced | $ 88,900 | £ 66.9 |
Term of lease not yet commenced | 15 years | 15 years |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 1,063,071 | $ 790,485 | $ 1,179,864 | $ 1,187,480 | $ (178,056) | $ 1,129,666 | $ 971,620 | $ 472,606 | $ 4,220,900 | $ 2,395,836 | $ 3,557,280 |
Total Expenses | 751,320 | 619,533 | 808,811 | 728,767 | 237,736 | 740,090 | 675,050 | 436,601 | 2,908,431 | 2,089,477 | 2,336,692 |
Total Investment Income (Loss) | 1,145,027 | 218,792 | 1,156,076 | 1,335,926 | (798,115) | 833,288 | 1,330,786 | 584,530 | 3,855,821 | 1,950,489 | 1,563,780 |
Income (Loss) Before Taxes | 1,456,778 | 389,744 | 1,527,129 | 1,794,639 | (1,213,907) | 1,222,864 | 1,627,356 | 620,535 | 5,168,290 | 2,256,848 | 2,784,368 |
Income Tax Expense (Benefit) | 142,626 | 53,132 | 165,399 | 167,593 | (143,294) | (129,405) | 60,960 | 17,641 | 528,750 | (194,098) | 224,326 |
Net Income (Loss) | 1,314,152 | 336,612 | 1,361,730 | 1,627,046 | (1,070,613) | 1,352,269 | 1,566,396 | 602,894 | 4,639,540 | 2,450,946 | 2,560,042 |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | 0 | 0 | 0 | 0 | (57,246) | 12,236 | (18,016) | 25,674 | 0 | (37,352) | 73,972 |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 790,710 | 87,058 | 838,996 | 917,727 | (628,726) | 691,494 | 895,690 | 398,777 | 2,634,491 | 1,357,235 | 1,467,765 |
Net Income (Loss) Attributable to KKR & Co. Inc. | 523,442 | 249,554 | 522,734 | 709,319 | (384,641) | 648,539 | 688,722 | 178,443 | 2,005,049 | 1,131,063 | 1,018,305 |
Preferred Dividends | 33,364 | 33,364 | 33,364 | ||||||||
Series A Preferred Stock Dividends | |||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||
Preferred Dividends | 5,822 | 5,822 | 5,822 | 5,822 | 5,822 | 5,822 | 5,822 | 5,822 | 23,288 | 23,288 | 23,288 |
Series B Preferred Stock | |||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||
Preferred Dividends | 2,519 | 2,519 | 2,519 | 2,519 | 2,519 | 2,519 | 2,519 | 2,519 | 10,076 | 10,076 | 10,076 |
Class A Common Stock | |||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders | $ 515,101 | $ 241,213 | $ 514,393 | $ 700,978 | $ (392,982) | $ 640,198 | $ 680,381 | $ 170,102 | $ 1,971,685 | $ 1,097,699 | $ 984,941 |
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock | |||||||||||
Basic (in dollars per share) | $ 0.93 | $ 0.44 | $ 0.94 | $ 1.31 | $ (0.74) | $ 1.22 | $ 1.33 | $ 0.36 | $ 3.62 | $ 2.14 | $ 2.10 |
Diluted (in dollars per share) | $ 0.91 | $ 0.43 | $ 0.93 | $ 1.27 | $ (0.74) | $ 1.17 | $ 1.24 | $ 0.32 | $ 3.54 | $ 2.06 | $ 1.95 |
Weighted Average Shares of Class A Common Stock Outstanding | |||||||||||
Basic (in shares) | 555,379,973 | 546,336,936 | 544,528,863 | 533,892,474 | 532,266,521 | 525,240,214 | 510,586,631 | 487,704,838 | 545,096,999 | 514,102,571 | 468,282,642 |
Diluted (in shares) | 566,277,984 | 559,532,065 | 554,643,810 | 550,046,440 | 532,266,521 | 545,672,953 | 548,745,498 | 535,918,274 | 557,687,512 | 533,707,039 | 506,288,971 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Jan. 31, 2020 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2017 |
Subsequent Events | |||||
Dividend declared (in dollars per share) | $ 0.295 | $ 0.34 | $ 0.50 | $ 0.67 | |
Subsequent Event | Common Stock | |||||
Subsequent Events | |||||
Dividend declared (in dollars per share) | $ 0.125 | ||||
Subsequent Event | Series A Preferred Stock | |||||
Subsequent Events | |||||
Dividend declared (in dollars per share) | 0.421875 | ||||
Subsequent Event | Series B Preferred Stock | |||||
Subsequent Events | |||||
Dividend declared (in dollars per share) | $ 0.406250 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 0 | $ 11,872 | $ 9,768 |
Tax Valuation Allowance Charged to Income Tax Provision | 0 | 0 | 2,104 |
Tax Valuation Allowance Credited to Income Tax Provision | 0 | 11,872 | 0 |
Balance at End of Period | $ 0 | $ 0 | $ 11,872 |