Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 03, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Kennedy-Wilson Holdings, Inc. | |
Entity Central Index Key | 1,408,100 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 114,218,250 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and cash equivalents | $ 569.2 | $ 260.2 | |
Cash held by consolidated investments | 695.6 | 625.5 | |
Accounts receivable (including $40.5 and $30.4 of related party) | 93.4 | 71.3 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 6,062.1 | 5,814.2 | |
Loan purchases and originations | 87.2 | 87.7 | |
Unconsolidated investments (including $330.8 and $329.4 at fair value) | 499 | 555.6 | |
Other assets | 277.8 | 244.6 | |
Total assets | [1] | 8,284.3 | 7,659.1 |
Liabilities | |||
Accounts payable | 20.8 | 11.2 | |
Accrued expenses and other liabilities | 431.4 | 412.1 | |
Line of credit | 350 | 0 | |
Total liabilities | [1] | 5,932.6 | 5,316 |
Equity | |||
Common stock, 114,218,250 and 115,740,906 shares issued and outstanding as of June 30, 2017 and December 31, 2016 | 0 | 0 | |
Additional paid-in capital | 1,215.9 | 1,231.4 | |
Accumulated deficit | (132) | (112.2) | |
Accumulated other comprehensive loss | (56.4) | (71.2) | |
Total Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,027.5 | 1,048 | |
Noncontrolling interests | 1,324.2 | 1,295.1 | |
Total equity | 2,351.7 | 2,343.1 | |
Total liabilities and equity | 8,284.3 | 7,659.1 | |
Investment Debt [Member] | |||
Liabilities | |||
Long-term debt | 4,192.8 | 3,956.1 | |
Senior Notes [Member] | |||
Liabilities | |||
Long-term debt | $ 937.6 | $ 936.6 | |
[1] | The assets and liabilities as of June 30, 2017 include $4.8 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.8 billion) and $2.9 billion (including investment debt of $2.6 billion), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2016 include $4.5 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.6 billion) and $2.7 billion (including investment debt of $2.4 billion), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Related party accounts receivable | $ 40.5 | $ 30.4 | |
Fair value of unconsolidated investments | 330.8 | 329.4 | |
Assets | [1] | 8,284.3 | 7,659.1 |
Cash held by consolidated investments | 695.6 | 625.5 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 6,062.1 | 5,814.2 | |
Liabilities | |||
Liabilities | [1] | $ 5,932.6 | $ 5,316 |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Common stock, shares issued (in shares) | 114,218,250 | 115,740,906 | |
Common stock, shares outstanding (in shares) | 114,218,250 | 115,740,906 | |
Investment Debt [Member] | |||
Liabilities | |||
Long-term debt | $ 4,192.8 | $ 3,956.1 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Assets | |||
Assets | 4,800 | 4,500 | |
Cash held by consolidated investments | 600 | 600 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 3,800 | 3,600 | |
Liabilities | |||
Liabilities | 2,900 | 2,700 | |
Variable Interest Entity, Primary Beneficiary [Member] | Investment Debt [Member] | |||
Liabilities | |||
Long-term debt | $ 2,600 | $ 2,400 | |
[1] | The assets and liabilities as of June 30, 2017 include $4.8 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.8 billion) and $2.9 billion (including investment debt of $2.6 billion), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2016 include $4.5 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.6 billion) and $2.7 billion (including investment debt of $2.4 billion), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | ||||
Rental | $ 123.8 | $ 120.3 | $ 248.1 | $ 240.2 |
Hotel | 29 | 26.8 | 58.5 | 55.9 |
Sale of real estate | 12.8 | 12.3 | 13.6 | 14.2 |
Investment management, property services and research fees (includes $0.3, $6.5, $10.0, and $17.5 of related party fees) | 7.7 | 13.5 | 25.2 | 32.6 |
Loan purchases, loan originations and other | 4.5 | 3.6 | 6.5 | 5.8 |
Total revenue | 177.8 | 176.5 | 351.9 | 348.7 |
Operating expenses | ||||
Rental operating | 36.6 | 32.8 | 72.6 | 63.8 |
Hotel operating | 22.8 | 23.6 | 47.2 | 48.1 |
Cost of real estate sold | 9.6 | 9.2 | 10.3 | 10.6 |
Commission and marketing | 1.7 | 1.8 | 3.7 | 3.5 |
Compensation and related | 45.5 | 40.5 | 78.2 | 86.2 |
General and administrative | 10 | 11.8 | 19.9 | 22 |
Depreciation and amortization | 52.1 | 48.9 | 101.8 | 97.3 |
Total operating expenses | 178.3 | 168.6 | 333.7 | 331.5 |
Income from unconsolidated investments | 13.4 | 8.4 | 35.9 | 27.6 |
Operating income | 12.9 | 16.3 | 54.1 | 44.8 |
Non-operating income (expense) | ||||
Gain on sale of real estate | 66.3 | 16.1 | 71.7 | 54.5 |
Acquisition-related gains | 0 | 8.6 | 0 | 8.6 |
Acquisition-related expenses | (0.9) | (6.3) | (1.2) | (8.4) |
Interest expense-investment | (35.5) | (33.6) | (69.9) | (66.1) |
Interest expense-corporate | (16.6) | (12.2) | (32.2) | (24.3) |
Other income | 4.4 | 5 | 4.9 | 5.7 |
Income (loss) before (provision for) benefit from income taxes | 30.6 | (6.1) | 27.4 | 14.8 |
(Provision for) benefit from income taxes | (8.8) | 3.9 | (4.6) | 3.4 |
Net income (loss) | 21.8 | (2.2) | 22.8 | 18.2 |
Net (income) loss attributable to the noncontrolling interests | (12.4) | 1.1 | (12.6) | (26.2) |
Preferred dividends and accretion of preferred stock issuance costs | 0 | (0.5) | 0 | (1.1) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ 9.4 | $ (1.6) | $ 10.2 | $ (9.1) |
Basic income (loss) per share | ||||
Income (loss) per basic (in dollars per share) | $ 0.08 | $ (0.02) | $ 0.09 | $ (0.09) |
Weighted average shares outstanding for basic (in shares) | 111,723,952 | 109,056,941 | 111,945,354 | 109,136,241 |
Diluted income (loss) per share | ||||
Income (loss) per diluted (in dollars per share) | $ 0.08 | $ (0.02) | $ 0.09 | $ (0.09) |
Weighted average shares outstanding for diluted (in shares) | 111,723,952 | 109,056,941 | 111,945,354 | 109,136,241 |
Dividends declared per common share (in dollars per share) | $ 0.17 | $ 0.14 | $ 0.34 | $ 0.28 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Investment management, property services, and research fees— related party | $ 0.3 | $ 6.5 | $ 10 | $ 175 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21.8 | $ (2.2) | $ 22.8 | $ 18.2 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized foreign currency translation gain (loss) | 99.6 | (82.8) | 120.8 | (60.6) |
Unrealized gain on marketable securities | 0.1 | 0 | 0.1 | 0.1 |
Amounts reclassified out of AOCI during the period | 0 | 2.7 | 0 | 2.7 |
Unrealized currency derivative contracts loss | (41.5) | (39.4) | (32.8) | (89.4) |
Total other comprehensive income (loss) for the period | 58.2 | (119.5) | 88.1 | (147.2) |
Comprehensive income (loss) | 80 | (121.7) | 110.9 | (129) |
Comprehensive (income) loss attributable to noncontrolling interests | (61) | 110.6 | (85.9) | 112.1 |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ 19 | $ (11.1) | $ 25 | $ (16.9) |
Consolidated Statement of Equit
Consolidated Statement of Equity - 6 months ended Jun. 30, 2017 - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] | |
Beginning balance outstanding (in shares) at Dec. 31, 2016 | 115,740,906 | ||||||
Balance beginning of period at Dec. 31, 2016 | $ 2,343.1 | $ 0 | $ 1,231.4 | $ (112.2) | $ (71.2) | $ 1,295.1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares forfeited (in shares) | (57,000) | ||||||
Restricted stock grants (RSG) (in shares) | 71,750 | ||||||
Shares retired due to RSG vesting (in shares) | (1,460,251) | ||||||
Shares retired due to RSG vesting | (34) | (34) | |||||
Shares retired due to common stock repurchase program (in shares) | (77,155) | ||||||
Shares retired due to common stock repurchase program | (1.6) | (1.4) | (0.2) | ||||
Stock based compensation | 19.9 | 19.9 | |||||
Other comprehensive income (loss): | |||||||
Unrealized foreign currency translation gain, net of tax | 120.8 | 28.1 | 92.7 | ||||
Unrealized foreign currency derivative contract loss, net of tax | (32.8) | (13.4) | (19.4) | ||||
Unrealized gain on marketable securities | 0.1 | 0.1 | |||||
Common stock dividends | (39.1) | (39.1) | |||||
Net income | 22.8 | 10.2 | 12.6 | ||||
Acquisition of Kennedy Wilson Europe (KWE) shares from noncontrolling interest holders | (3.3) | (3.3) | |||||
Contributions from noncontrolling interests | 22.7 | 22.7 | |||||
Distributions to noncontrolling interests | (76.2) | (76.2) | |||||
Ending balance outstanding (in shares) at Jun. 30, 2017 | 114,218,250 | ||||||
Balance end of period at Jun. 30, 2017 | 2,351.7 | $ 0 | $ 1,215.9 | (132) | $ (56.4) | $ 1,324.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of ASU 2016-09 adoption | [1] | $ 9.3 | $ 9.3 | ||||
[1] | See Note 2 for further discussion. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash flows from operating activities: | |||
Net income | $ 22.8 | $ 18.2 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Net gain from sale of real estate | (75) | (58.1) | |
Acquisition-related gain | 0 | (8.6) | |
Depreciation and amortization | 101.8 | 97.3 | |
Provision for deferred income taxes | (0.4) | (6.6) | |
Amortization of deferred loan costs | 4.1 | 5.2 | |
Accretion of interest income on loans | (3.6) | (4.6) | |
Amortization of discount and accretion of premium on issuance of the senior notes and investment debt | (0.6) | (0.5) | |
Unrealized net loss (gain) on derivatives | 7 | (6.3) | |
Income from unconsolidated investments | (35.9) | (28.1) | |
Operating distributions from unconsolidated investments | 57.3 | 17.9 | |
Operating distributions from loan purchases and originations | 2.6 | 9.1 | |
Share-based compensation | 19.9 | 32.2 | |
Change in assets and liabilities: | |||
Accounts receivable | (11.6) | (29.7) | |
Other assets | (13.1) | (14.3) | |
Accounts payable, accrued expenses and other liabilities | (7.1) | (12.6) | |
Net cash provided by operating activities | 68.2 | 10.5 | |
Cash flows from investing activities: | |||
Additions to loans | 0 | (5.3) | |
Collections of loans | 6.4 | 138.8 | |
Net proceeds from sale of real estate | 243 | 183.4 | |
Purchases of and additions to real estate | (284.9) | (447.5) | |
Proceeds from settlement of foreign derivative contracts | 3 | 25.7 | |
Purchases of foreign derivative contracts | (0.5) | (3.4) | |
Investment in marketable securities | (0.4) | (0.7) | |
Proceeds from sale of marketable securities | 0.2 | 0 | |
Distributions from unconsolidated investments | 69 | 35.2 | |
Contributions to unconsolidated investments | (36.7) | (45.6) | |
Net cash used in investing activities | (0.9) | (119.4) | |
Cash flows from financing activities: | |||
Borrowings under line of credit | 400 | 100 | |
Repayment of lines of credit | (50) | 0 | |
Borrowings under investment debt | 166.8 | 476.5 | |
Repayment of investment debt | (100.6) | (97.5) | |
Debt issue costs | (0.1) | (3.7) | |
Repurchase and retirement of common stock | (35.6) | (42.8) | |
Dividends paid | (37.9) | (31) | |
Costs associated with KWE transaction | (5.5) | 0 | |
Acquisition of KWE shares from noncontrolling interest holders | (3.3) | (67.9) | |
Contributions from noncontrolling interests, excluding KWE | 22.7 | 12.9 | |
Distributions to noncontrolling interests | (76.2) | (73.5) | |
Net cash provided by financing activities | 280.3 | 273 | |
Effect of currency exchange rate changes on cash and cash equivalents | 31.5 | (39.7) | |
Net change in cash and cash equivalents | [1] | 379.1 | 124.4 |
Cash and cash equivalents, beginning of period | 885.7 | 731.6 | |
Cash and cash equivalents, end of period | 1,264.8 | 856 | |
Supplemental cash flow information: | |||
Interest | [2] | 99.3 | 80.2 |
Income taxes | [3] | 9 | 7.7 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Accrued capital expenditures | 9.3 | 19.1 | |
Dividends declared but not paid on common stock | $ 19.5 | $ 15.8 | |
[1] | See discussion of non-cash effects in notes to statement of cash flows. | ||
[2] | $30.5 million and $28.1 million attributable to noncontrolling interests | ||
[3] | $7.0 million and $6.1 million attributable to noncontrolling interests |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Interest paid attributable to noncontrolling interest | $ 30.5 | $ 28.1 |
Income taxes paid attributable to noncontrolling interest | 7 | 6.1 |
Acquisition-related gains | $ 0 | $ 8.6 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION KW Group's unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") may have been condensed or omitted pursuant to SEC rules and regulations, although the Company believes that the disclosures are adequate to make their presentation not misleading. In the Company's opinion, all adjustments, consisting of only normal and recurring items, necessary for a fair presentation of the results of operations for the three and six months ended June 30, 2017 and 2016 have been included. The results of operations for these periods are not necessarily indicative of results that might be expected for the full year ending December 31, 2017 . For further information, your attention is directed to the footnote disclosures found in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . Throughout these unaudited interim consolidated financial statements “KW Group,” is referenced which is defined as the Company and its subsidiaries that are consolidated in its financial statements under U.S. GAAP (including KWE as defined below). All significant intercompany balances and transactions have been eliminated in consolidation. "KW," “KWH,” “Kennedy Wilson,” the “Company,” “we,” “our,” or “us” are also referred to which are defined as Kennedy-Wilson Holdings, Inc. and its wholly-owned subsidiaries. In addition, throughout these unaudited interim consolidated financial statements, “equity partners” is referred to which is defined as the non-wholly owned subsidiaries that are consolidated in the Company's financial statements under U.S. GAAP, including KWE, and third-party equity providers. Kennedy Wilson evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") as defined in the ASC Subtopic 810-10, as amended by Accounting Standards Update ("ASU") 2015-02, and to assess whether it is the primary beneficiary of such entities. If the determination is made that Kennedy Wilson is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with the ASC Subtopic 810-10. The preparation of the accompanying consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosure about contingent assets and liabilities, and reported amounts of revenues and expenses. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. See comment in Note 4 about the preliminary nature of the estimates used in relation to acquisitions. KWE Kennedy Wilson Europe Real Estate Plc (“KWE,” LSE: KWE), a public limited company registered in Jersey formed to invest in real estate and real estate-related assets in Europe, closed its initial public offering ("IPO") on the London Stock Exchange during the quarter ended March 31, 2014. KWE is externally managed by a wholly-owned subsidiary of Kennedy Wilson incorporated in Jersey pursuant to an investment management agreement. Due to the terms provided in the investment management agreement and Kennedy Wilson's equity ownership interest in KWE, pursuant to the guidance set forth in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Subtopic 810 - Consolidation (“Subtopic 810”), the Company is required to consolidate KWE’s results in its consolidated financial statements. As of June 30, 2017 , the Company invested $492.6 million and owned approximately 23.8% of KWE’s total issued share capital. Prior to KWE's formation and for investments that do not meet KWE's investment guidelines, the Company (along with its equity partners) has directly invested in 17 properties and a servicing platform in Europe which had total assets of $934.2 million included in the Company's consolidated balance sheet and $264.2 million of equity as of June 30, 2017 . As of June 30, 2017 , the Company's weighted average ownership in these investments was 65% . On April 24, 2017, the Company issued an announcement pursuant to Rule 2.7 of the United Kingdom City Code on Takeovers and Mergers disclosing the terms of a recommended offer by the Company to acquire all of the outstanding shares (other than shares owned by the Company or its subsidiaries or held in treasury) of KWE. Under the terms of the transaction, KWE shareholders would be entitled to receive, for each KWE ordinary share, 0.667 shares of the Company’s common stock (the “Original Offer”) by means of a court sanctioned scheme of arrangement between the Company and KWE shareholders under Article 125 of the Jersey Companies Law (the “Transaction”). On June 13, 2017, the Company issued a further announcement (the “New Offer Announcement”) pursuant to Rule 2.7 of the United Kingdom City Code on Takeovers and Mergers (the “Code”) disclosing an agreement between the Company and KWE, to make available a new alternative proposal in connection with the Transaction. Under the terms of the New Offer Announcement, KWE shareholders would have the option of electing to receive either: (i) the Original Offer; or (ii) a mixed consideration (the “New Offer”) consisting of (a) 300 pence in cash, to be paid by the Company (the “KWH Cash Component”); (b) 250 pence in cash, to be paid by KWE as a special distribution on or around closing of the Transaction (the “KWE Special Distribution”); and (c) 0.3854 shares of the Company’s common stock. The availability of the New Offer to KWE shareholders would be conditional upon, among other things, the publication of and approval by the UK Listing Authority of a Prospectus to be published by the Company. The Company will provide a mix and match facility (the “Mix and Match Facility”) under which KWE shareholders (other than certain overseas KWE shareholders) who elect to receive the New Offer may, subject to off-setting elections made by other KWE shareholders, elect to vary the proportion of shares of the Company’s common stock and cash (but not the KWE Special Distribution) received pursuant to the Transaction. Based on the terms of the New Offer Announcement, if all KWE shareholders elected to receive the New Offer, KWE shareholders (other than the Company and its affiliates) would own approximately 25% and existing KWH shareholders would own approximately 75% of the combined group following the completion of the Transaction. If all KWE shareholders elected to receive the Original Offer, KWE shareholders (other than the Company and its affiliates) would own approximately 36% and existing KWH shareholders would own approximately 64% of the combined group following the completion of the Transaction. In connection with the Transaction, on June 9, 2017, the Company drew $350 million on its revolving credit facility. The funds along with $18.0 million of existing corporate cash were deposited into an escrow account, in accordance with the funds certain requirement of the UK Takeover Code, and such funds will be used to fulfill the KWH Cash Component described above. In connection with the Transaction, the Company has announced that its Board of Directors intends to increase the first quarterly dividend payable following the effective date of the Transaction from $0.17 per share of KWH common stock to $0.19 per share of KWH common stock. |
Summary of Significant Accounti
Summary of Significant Accounting Polices and Adoption of New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS REVENUE RECOGNITION—Performance fees or carried interests are allocated to the general partner, special limited partner or asset manager of the Company's real estate funds and loan pool participations based on the cumulative performance of the funds and loan pools and are subject to preferred return thresholds of the limited partners and participants. At the end of each reporting period, the Company calculates the performance fee that would be due to the general partner, special limited partner or asset manager's interests for a fund or loan pool, pursuant to the fund agreement or participation 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 performance fees to reflect either (a) positive performance resulting in an increase in the performance fee allocated to the general partner or asset manager or (b) negative performance that would cause the amount due to the Company to be less than the amount previously recognized as revenue, resulting in a negative adjustment to performance fees allocated to the general partner or asset manager. A majority of the performance fees are recognized in investment management revenue in the Company's consolidated statements of operations. Total performance fees recognized from inception through June 30, 2017 that may be reversed in future periods if there is negative fund performance totaled $31.1 million . Net performance fees recognized during the six months ended June 30, 2017 and 2016 were $3.8 million and $9.1 million , respectively, and the amounts that have not been received are included in accounts receivable - related parties in the accompanying consolidated balance sheet. REAL ESTATE ACQUISITIONS—The purchase price of acquired properties is recorded to land, buildings and building improvements and intangible lease value (value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any) based on their respective estimated fair values in accordance with ASC Subtopic 805-10, Business Combinations . Acquisition-related costs are expensed as incurred. The ownership of the other interest holders in consolidated subsidiaries is reflected as noncontrolling interests. The valuations of real estate are based on management estimates of the real estate assets using income and market approaches. The indebtedness securing the real estate is valued, in part, based on third party valuations and management estimates also using an income approach. NONCONTROLLING INTERESTS—Noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly to the Company. These amounts are reported within equity as a separate component in accordance with ASC Subtopic 810-10, Noncontrolling Interests in Consolidated Financial Statements . Revenues, expenses, gains, losses, net income (loss), and other comprehensive income (loss) are reported in the consolidated statements of operations at the consolidated amounts and net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are separately stated. The largest component of noncontrolling interest relates to the Company's investment in KWE, which had a corresponding noncontrolling interest balance of $1.1 billion as of June 30, 2017 . FOREIGN CURRENCIES—The financial statements of KW Group's subsidiaries located outside the United States are measured using the local currency as this is their functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly rate. The foreign currencies include the euro, the British pound sterling, and the Japanese yen. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in the consolidated statement of equity as a component of accumulated other comprehensive income. Investment level debt is generally incurred in local currencies. Fluctuations in foreign exchanges rates may have a significant impact on the results of our operations. In order to manage the effect of these fluctuations, the Company enters into hedging transactions, in the form of currency derivative contracts, that are designed to reduce its book equity exposure to foreign currencies. See note 6 for a complete discussion on currency derivative contracts. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES—All derivative instruments are recognized as either assets or liabilities in the balance sheet at their respective fair values. For derivatives designated in hedging relationships, changes in fair value of cash flow hedges or net investment hedges are recognized in accumulated other comprehensive income, to the extent the derivative is effective at offsetting the changes in the item being hedged until the hedged item affects earnings. Changes in fair value for fair value hedges are recognized in earnings. Fluctuations in foreign exchanges rates may have a significant impact on the Company's results of operations. In order to manage the potential exposure from adverse changes in foreign exchange rates arising from the Company’s net investments in foreign operations, the Company may enter into currency derivative contracts to hedge all or portions of the net investments in the Company’s non-U.S. dollar denominated foreign operations. INCOME TAXES—Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In accordance with ASC Subtopic 740-10, Accounting for Uncertainty in Income Taxes , the effect of income tax positions is recognized only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. RECENT ACCOUNTING PRONOUNCEMENTS—In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, a five step model to recognize revenue from customer contracts in an effort to increase consistency and comparability throughout global capital markets and across industries. The model will identify the contract, identify any separate performance obligations in the contract, determine the transaction price, allocate the transaction price and recognize revenue when the performance obligation is satisfied. The new standard will apply to KW Group’s management and leasing fees (including performance fees), commissions, rental and hotel income. Management is evaluating the impact of the five step model and does not expect it to have a significant impact on the financial statements. ASU 2014-09 will also impact how sales of real estate are reported, which will become subject to ASC Subtopic 610-20 Other Income- Gains and Losses from the Derecognition of Nonfinancial Assets ("Subtopic 610-20") . After review of Subtopic 610-20, management concluded that the new standard is not expected to have a significant impact on the amount, timing or classification of real estate sales in the financial statements or related disclosures based on the Company's current business mix. The new standard will replace most existing revenue recognition in GAAP when it becomes effective for the Company on January 1, 2018. The Company is planning on adopting a modified retrospective transition method when the guidance becomes effective. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 is required to be adopted for fiscal years beginning after December 15, 2018. Because KW Group's existing operating lease commitments are not material and the accounting for leases by the lessor is substantially unchanged, the Company does not expect the ASU to have a significant impact on its results of operations or financial position. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. ASU 2016-07 is effective for all entities in fiscal years beginning after December 15, 2016. The adoption of this standard did not have a material impact on KW Group's consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). ASU 2016-09 requires excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. An excess tax benefit (windfall) arises when the value of the share-based award on the vesting date is higher than the fair value on the grant date. A tax deficiency (shortfall) arises when the fair value on vesting date is lower than the fair value on the grant date. In addition, ASU 2016-09 eliminated the requirement for excess tax benefits from share-based compensation to reduce current taxes payable prior to being recognized in the financial statement. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within the Company’s tax provision for income taxes as the amount of excess tax benefits or deficiencies from stock-based compensation awards is from now on dependent upon the Company’s stock price on the date the awards vest. On January 1, 2017, KW Group adopted ASU 2016-09 under the modified retrospective approach and recorded the cumulative impact of the accounting change through a reduction to the accumulated deficit of $9.3 million . This amount represents the cumulative excess tax benefits related to share-based compensation as of December 31, 2016 which had not been reflected as a deferred tax asset. As a result of adoption of ASU 2016-09, the excess tax benefits were reclassified to net operating loss carryover, resulting in an increase in our deferred tax asset by $9.3 million as of January 1, 2017. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , which addresses eight classification issues related to the statement of cash flows: (a) debt prepayment or debt extinguishment costs, (b) settlement of zero-coupon bonds, (c) contingent consideration payments made after a business combination (d) proceeds from the settlement of insurance claims, (e) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (f) distributions received from equity method investees, (g) beneficial interests in securitization transactions, and (h) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is required to be adopted for public entities for fiscal years beginning after December 15, 2017. The Company does not expect the ASU to have a significant impact on KW Group's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU clarifies the definition of a business. The three elements of a business (inputs, processes, and outputs) has not changed, however, the amendment provides a framework to assist entities in evaluating whether these elements are present. The amended framework is not expected to materially impact the Company’s financial statements. However, the amendment also includes a provision that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. Therefore, real estate acquisitions generally will no longer be considered a business and consequently not be accounted for under Topic 805. The Company has evaluated the likely impacts noting that (1) acquisition related costs will no longer be expensed as incurred and (2) regardless of the market value of a property at the acquisition date, acquisition related gains will no longer be recorded. ASU 2017-01 is required to be adopted for public entities for fiscal years beginning after December 15, 2017. The Company does not expect the ASU to have a significant impact on KW Group's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 is required to be adopted for public entities that are SEC filers, for annual and interim periods in fiscal years beginning after December 15, 2019. T he Company does not expect the ASU to have a significant impact on KW Group's consolidated financial statements. The FASB did not issue any other ASUs during the first six months of 2017 that the Company expects to be applicable and have a material impact on the Company's financial position or results of operations. RECLASSIFICATIONS - Certain balances included in prior year's financial statements have been reclassified to conform to the current year's presentation. |
Loan Purchases and Originations
Loan Purchases and Originations | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
LOAN PURCHASES AND ORIGINATIONS | LOAN PURCHASES AND ORIGINATIONS KW Group's investment in loan purchases and originations was $87.2 million and $87.7 million at June 30, 2017 and December 31, 2016 , respectively. During the first quarter of 2017, Kennedy Wilson collected, in full, approximately $6.4 million on a loan secured by an office property in San Diego, CA. KW Group recognized interest income on loans of $4.5 million and $6.5 million during the three and six months ended June 30, 2017 , respectively, and $3.6 million and $5.8 million during the three and six months ended June 30, 2016 , respectively. |
Real Estate and In-Place Lease
Real Estate and In-Place Lease Value | 6 Months Ended |
Jun. 30, 2017 | |
Real Estate [Abstract] | |
REAL ESTATE AND IN-PLACE LEASE VALUE | REAL ESTATE AND IN-PLACE LEASE VALUE The following table summarizes KW Group's investment in consolidated real estate properties at June 30, 2017 and December 31, 2016 : June 30, December 31, (Dollars in millions) 2017 2016 Land $ 1,429.3 $ 1,383.2 Buildings 4,228.4 4,048.7 Building improvements 461.4 373.5 In-place lease values 409.0 383.1 6,528.1 6,188.5 Less accumulated depreciation and amortization (466.0 ) (374.3 ) Real estate and acquired in place lease values, net of accumulated depreciation and amortization $ 6,062.1 $ 5,814.2 Real property, including land, buildings, and building improvements, are included in real estate and are generally stated at cost. Buildings and building improvements are depreciated on a straight-line method over their estimated lives not to exceed 40 years . Acquired in-place lease values are recorded at their estimated fair value and depreciated over their respective weighted-average lease term which was 8.2 years at June 30, 2017 . Consolidated Acquisitions The purchase of property is recorded to land, buildings, building improvements, and intangible lease value (including the value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any) based on their respective estimated fair values. The purchase price generally approximates the fair value of the properties as acquisitions are generally transacted with third-party willing sellers. During the six months ended June 30, 2017 , KW Group acquired the following consolidated properties: (Dollars in millions) Preliminary Purchase Price Allocation at Acquisition (1) Location Description Land Building Acquired in place lease values (2) Investment debt NCI KWH Shareholders' Equity Western U.S. One retail center and one commercial property $ 32.9 $ 115.3 $ 16.4 $ 77.0 $ 0.2 $ 79.8 $ 32.9 $ 115.3 $ 16.4 $ 77.0 $ 0.2 $ 79.8 (1) Excludes acquisition expenses and net other assets. The purchase price allocations for properties acquired during the six months ended June 30, 2017 are based on preliminary measurements of fair value that are subject to change. These allocations represent the Company's current best estimates of fair value and will be finalized within one year. (2) Includes above and below market leases in this table. Above and below market leases are part of other assets and accrued expenses and other liabilities. Gains on real estate During the six months ended June 30, 2017 , KW Group recognized the following gains on sale of real estate: (Dollars in millions) Gain on sale of real estate Description Consolidated (1) NCI Net of NCI KW Two multifamily properties and one retail center in the Western U.S., one commercial development in Ireland and one residential property in the United Kingdom $ 62.1 $ 5.8 $ 56.3 KWE 15 commercial properties in the United Kingdom and two condo unit sales in Spain 12.9 9.9 3.0 KW Group $ 75.0 $ 15.7 $ 59.3 (1) Includes both the sale of real estate as a business, which is recognized through gain on sale of real estate, and the sale of real estate as assets, which is the net of sale of real estate and cost of real estate sold. Guarantees Kennedy Wilson has certain guarantees associated with loans secured by consolidated assets. As of June 30, 2017 , the maximum potential amount of future payments (undiscounted) Kennedy Wilson could be required to make under the guarantees was approximately $50.9 million which is approximately 1% of investment level debt of Kennedy Wilson and its equity partners. The guarantees expire through 2026 , and Kennedy Wilson’s performance under the guarantees would be required to the extent there is a shortfall upon liquidation between the principal amount of the loan and the net sale proceeds from the property. Based on the Company's evaluation of guarantees under FASB ASC Subtopic 460-10 Estimated Fair Value of Guarantees, the estimated fair value of guarantees made as of June 30, 2017 and December 31, 2016 were immaterial. Pro forma results of operations The results of operations of the assets acquired have been included in our consolidated financial statements since the date of their acquisition. KW Group's unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations that would have occurred had this acquisition been consummated at the beginning of the periods presented. The pro forma data presented below assumes that the acquisitions during the three and six months ended June 30, 2017 occurred as of January 1, 2016. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except for per share data) 2017 2016 2017 2016 Pro forma revenues $ 178.6 $ 180.7 $ 354.2 $ 356.6 Pro forma net income 22.4 1.2 24.1 24.8 Pro forma net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders 9.9 1.8 11.6 (2.5 ) Pro forma net income (loss) per share: Basic $ 0.09 $ 0.02 $ 0.10 $ (0.02 ) Diluted $ 0.09 $ 0.02 $ 0.10 $ (0.02 ) |
Unconsolidated Investments
Unconsolidated Investments | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
UNCONSOLIDATED INVESTMENTS | UNCONSOLIDATED INVESTMENTS Kennedy Wilson has a number of joint venture interests, generally ranging from 5% to 50% , that were formed to acquire, manage, develop, service and/or sell real estate and invest in loan pools and discounted loan portfolios. Kennedy Wilson has significant influence over these entities, but not control, and accordingly, these investments are accounted for under the equity method. Joint Venture Holdings The following table details the Company's unconsolidated investments by investment type and geographic location as of June 30, 2017 : (Dollars in millions) Multifamily Commercial Residential and Other Total Western U.S. $ 204.1 $ 58.7 $ 201.3 $ 464.1 United Kingdom — 11.1 — 11.1 Spain — — 17.5 17.5 Japan 6.4 — — 6.4 Total $ 210.5 $ 69.8 $ 218.8 $ 499.1 The following table details the Company's unconsolidated investments by investment type and geographic location as of December 31, 2016 : (Dollars in millions) Multifamily Commercial Residential and Other Total Western U.S. $ 192.9 $ 65.3 $ 261.6 $ 519.8 United Kingdom — 13.8 — 13.8 Spain — — 15.9 15.9 Japan 6.1 — — 6.1 Total $ 199.0 $ 79.1 $ 277.5 $ 555.6 During the six months ended June 30, 2017, multifamily investments increased due to investments in four new multifamily properties, which was offset by the sale of one property. Commercial investments decreased due to the sale of two properties. Residential and Other investments decreased due to a land sale, collections on receivables, and condominium unit and lot sales. Vintage Housing Holdings ("VHH") The Company owns noncontrolling interests in VHH, a joint venture that holds controlling interests in over 30 syndicated limited partnerships ("LPs") that own multifamily properties via a traditional low-income housing tax credit ("LIHTC") structure in the Western United States. The Company accounts for its investment under the equity method as it does not control the investment. As of June 30, 2017 and December 31, 2016 , the carrying value in VHH was $95.5 million and $84.2 million , respectively. The LPs generate cash flow through their controlling interests in entities owning multifamily housing that is predominantly structured with LIHTCs. The Company has elected the fair value option on its unconsolidated investment in VHH. No fair value gains and $12.4 million were recognized through equity income during the three and six months ended June 30, 2017 , respectively. The Company recognized $3.8 million and $13.3 million of fair value gains through equity income during the three and six months ended June 30, 2016 , respectively. Fair value gains are primarily generated from resyndications in which VHH dissolves an existing partnership and recapitalizes into a new partnership with tax exempt bonds and tax credits which are sold to a new tax credit LP partner and, in many cases, yields cash back to VHH. Upon resyndication, VHH retains a GP interest in the partnership and receives various future streams of cash flows including; development fees, asset management fees, other GP management fees and distributions from operations. Since the investment is accounted for under the fair value option, operating distributions are recorded as equity income. See Note 6 for additional details. The Company has recognized $1.5 million and $3.2 million in equity income related to operating distributions for the three and six months ended June 30, 2017 . The Company has recognized $1.5 million and $3.1 million in equity income related to operating distributions for the three and six months ended June 30, 2016 . Contributions to Joint Ventures During the six months ended June 30, 2017 , Kennedy Wilson contributed $11.5 million to new joint ventures. Kennedy Wilson contributed $25.2 million to existing joint ventures during the six months ended June 30, 2017 to fund the Company's share of development projects, capital expenditures and working capital needs. Distributions from Joint Ventures During the six months ended June 30, 2017 , Kennedy Wilson received $126.3 million in operating and investing distributions from its joint ventures. Operating distributions resulted from operating cash flow generated by the joint venture investments. Investing distributions resulted from the refinancing of property level debt and asset sales. The following table details cash distributions by investment type and geographic location for the six months ended June 30, 2017 : Multifamily Commercial Residential and Other Total (Dollars in millions) Operating Investing Operating Investing Operating Investing Operating Investing Western U.S. $ 15.0 $ 8.6 $ 24.3 $ 16.1 $ 15.7 $ 44.3 $ 55.0 $ 69.0 United Kingdom — — 2.3 — — — 2.3 — Total $ 15.0 $ 8.6 $ 26.6 $ 16.1 $ 15.7 $ 44.3 $ 57.3 $ 69.0 Investing distributions resulted primarily from recapitalizations and the sale of multifamily and commercial properties in the Western United States. Operating distributions resulted from sales distributions in excess of invested basis and operating cash flow generated by the joint venture investments. Consolidation Considerations The Company determines the appropriate accounting method with respect to all investments that are not VIEs based on the control-based framework (controlled entities are consolidated) provided by the consolidations guidance in FASB ASC Topic 810. The Company accounts for joint ventures where it is deemed that the Company does not have control through the equity method of accounting while entities the Company controls are consolidated in KW Group's financial statements. Capital Commitments As of June 30, 2017 , Kennedy Wilson had unfulfilled capital commitments totaling $70.0 million to four of its joint ventures under the respective operating agreements, including $50.0 million relating to Kennedy Wilson Real Estate Fund VI, LP. The Company may be called upon to contribute additional capital to joint ventures in satisfaction of such capital commitment obligations. |
Fair Value Measurements and the
Fair Value Measurements and the Fair Value Option | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND THE FAIR VALUE OPTION | FAIR VALUE MEASUREMENTS AND THE FAIR VALUE OPTION The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of June 30, 2017 : (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 330.8 $ 330.8 Marketable securities 7.9 — — 7.9 Currency derivative contracts — (85.5 ) — (85.5 ) Total $ 7.9 $ (85.5 ) $ 330.8 $ 253.2 The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2016 : (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 329.4 $ 329.4 Marketable securities 7.5 — — 7.5 Currency derivative contracts — (47.2 ) — (47.2 ) Total $ 7.5 $ (47.2 ) $ 329.4 $ 289.7 Unconsolidated Investments Kennedy Wilson elected to use the fair value option ("FV Option") for seventeen unconsolidated investments to more accurately reflect the timing of the value created in the underlying investments and report those results in current operations. Kennedy Wilson's investment balance in the FV Option investments was $282.6 million and $282.4 million at June 30, 2017 and December 31, 2016 , respectively, which is included in unconsolidated investments in the accompanying balance sheets. Additionally, Kennedy Wilson records its investments in KW Property Fund III, L.P., Kennedy Wilson Real Estate Fund IV, and Kennedy Wilson Real Estate Fund V, LP (the "Funds") based upon the net assets that would be allocated to its interests in the Funds assuming the Funds were to liquidate their investments at fair value as of the reporting date. Kennedy Wilson’s investment balance in the Funds was $48.2 million and $47.0 million at June 30, 2017 and December 31, 2016 , respectively, which is included in unconsolidated investments in the accompanying consolidated balance sheets. As of June 30, 2017 , Kennedy Wilson had unfunded capital commitments to the Funds in the amount of $16.2 million . In estimating fair value of real estate held by the Funds and the seventeen FV Option investments, the Company considers significant unobservable inputs such as capitalization and discount rates. The following table summarizes the Company's investments in unconsolidated investments held at fair value by type: (Dollars in millions) June 30, 2017 December 31, 2016 FV Option $ 282.6 $ 282.4 Funds 48.2 47.0 Total $ 330.8 $ 329.4 The following table presents changes in Level 3 investments, investments in investment companies and investments in joint ventures that elected the fair value option for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Beginning balance $ 375.8 $ 234.8 $ 329.4 $ 223.8 Unrealized and realized gains 5.7 9.0 27.8 26.6 Unrealized and realized losses (0.1 ) — (1.0 ) — Contributions 5.0 4.3 25.2 20.1 Distributions (55.2 ) (12.0 ) (74.5 ) (34.9 ) Other (0.4 ) 0.5 23.9 1.0 Ending balance $ 330.8 $ 236.6 $ 330.8 $ 236.6 Unobservable inputs for real estate The table below describes the range of unobservable inputs for real estate assets: Estimated Rates Used for Capitalization Rates Discount Rates Office 4.75% - 8.60% 7.25% - 9.75% Retail 5.50% - 9.00% 7.25% - 11.00% Multifamily 4.75% - 7.75% 8.00% - 9.75% Land and condominium units N/A 8.00% - 15.00% In valuing indebtedness the Company considers significant inputs such as the term of the debt, value of collateral, market loan-to-value ratios, market interest rates and spreads, and credit quality of investment entities. The credit spreads used for these types of investments range from 1.53% to 3.46% . The accuracy of estimating fair value for investments utilizing unobservable inputs cannot be determined with precision and cannot be substantiated by comparison to quoted prices in active markets. As such, estimated fair value may not be realized in a current sale or immediate settlement of the asset or liability. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including capitalization rates, discount rates, liquidity risks, and estimates of future cash flows, could significantly affect the fair value measurement amounts. Marketable Securities Marketable securities include Kennedy Wilson's investment in publicly traded equity securities and fixed income investments. The fixed income portfolio consists mainly of U.S. government and investment grade corporate bonds. The carrying value of marketable securities is a level 1 valuation as the fair value is based off of unadjusted quoted market prices in active markets for identical securities. The amount above excludes Kennedy Wilson's 30.0 million shares in KWE as the investment is eliminated due to the consolidation of KWE's results in KW Group's consolidated financial statements. Kennedy Wilson's investment in KWE had a market value of approximately $434.0 million (cost basis of $454.9 million , net of realized and unrealized hedging activity) based on a per share price of $14.46 at June 30, 2017 . As of June 30, 2017 , the Company had fully hedged the foreign currency rate risk of its net investment in KWE through using currency forward contracts and options, with a notional amount of £356.0 million . Currency derivative contracts KW Group uses foreign currency derivative contracts such as forward contracts and options to manage its foreign currency risk exposure against the effects of a portion of its certain non-U.S. dollar denominated currency net investments. Foreign currency options are valued using a variant of the Black-Scholes model tailored for currency derivatives and the foreign currency forward contracts are valued based on the difference between the contract rate and the forward rate at maturity of the underlying currency applied to the notional value in the underlying currency discounted at a market rate for similar risks. Although the Company has determined that the majority of the inputs used to value its currency derivative contracts fall within Level 2 of the fair value hierarchy, the counterparty risk adjustments associated with the currency derivative contracts utilize Level 3 inputs. However, as of June 30, 2017 , KW Group assessed the significance of the impact of the counterparty valuation adjustments on the overall valuation of its derivative positions and determined that the counterparty valuation adjustments are not significant to the overall valuation of its derivative. As a result, the Company has determined that its derivative valuation in its entirety be classified in Level 2 of the fair value hierarchy. If the derivative applies for hedge accounting, changes in fair value are recorded in other comprehensive income in the accompanying consolidated statements of comprehensive income (loss) as the portion of the currency derivative contracts used to hedge foreign currency exposure of its certain net investments in foreign operations qualifies as a net investment hedge under FASB ASC Topic 815. Ineffective portions of currency derivative contracts and contracts that do not quality for net investment hedges are recognized in the statement of operations within other income. The fair value of the currency derivative contracts held as of June 30, 2017 and December 31, 2016 are reported in other assets for hedge assets and included in accrued expenses and other liabilities for hedge liabilities on the balance sheet. See note 11 for a complete discussion on other comprehensive income including currency derivative contracts and foreign currency translations. The table below details the currency derivative contracts KW Group held as of June 30, 2017 and the activity during the six months ended June 30, 2017 : (Dollars in millions) June 30, 2017 Six Months Ended June 30, 2017 Currency Hedged Underlying Currency Notional Hedge Asset Hedge Liability Change in Unrealized Gains (Losses) Realized Gains (Losses) Cash Received (Paid) Outstanding EUR USD € 130.0 $ 0.3 $ (2.8 ) $ (6.2 ) $ — $ — EUR (1) GBP € 360.0 — (79.8 ) (11.0 ) — — EUR (1)(2) GBP — — (14.5 ) — — GBP USD £ 356.0 6.7 (3.0 ) (10.2 ) — (0.5 ) GBP (3) USD £ 259.7 — (6.8 ) — (6.8 ) — Yen USD ¥ 757.0 0.2 (0.3 ) (0.1 ) — — Total Outstanding 7.2 (92.7 ) (42.0 ) (6.8 ) (0.5 ) Settled GBP USD — — 0.2 0.2 3.0 Total Settled — — 0.2 0.2 3.0 Total 7.2 (92.7 ) (41.8 ) (6.6 ) 2.5 Noncontrolling interests — 60.8 19.4 — — Total - Kennedy Wilson share $ 7.2 $ (31.9 ) $ (22.4 ) $ (6.6 ) $ 2.5 (1) Hedge is held by KWE on its wholly-owned subsidiaries. (2) Relates to KWE's Euro Medium Term Note. See discussion in Note 8. (3) Relates to hedges on GBP escrow cash that is held by Kennedy Wilson relating to the proposed acquisition of KWE. Derivative losses are offset by realized foreign currency exchange gains on translation of cash. The gains recognized through other comprehensive income will remain in accumulated other comprehensive income until the underlying investments they were hedging are substantially liquidated by KW Group. Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable including related party receivables, accounts payable, accrued expenses and other liabilities, accrued salaries and benefits, and deferred and accrued income taxes approximate fair value due to their short-term maturities. The carrying value of loans (excluding related party loans as they are presumed not to be an arm’s length transaction) approximates fair value as the terms are similar to loans with similar characteristics available in the market. Debt liabilities are accounted for at face value plus net unamortized debt premiums and any fair value adjustments as part of business combinations. The fair value as of June 30, 2017 and December 31, 2016 for the senior notes payable and investment debt were estimated to be approximately $5.5 billion and $5.0 billion , respectively, based on a comparison of the yield that would be required in a current transaction, taking into consideration the risk of the underlying collateral and the Company's credit risk to the current yield of a similar security, compared to their carrying value of $ 5.5 billion and $4.9 billion at June 30, 2017 and December 31, 2016 , respectively. The inputs used to value the Company's senior notes payable and mortgage loans payable are based on observable inputs for similar assets and quoted prices in markets that are not active and are therefore determined to be level 2 inputs. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following: (Dollars in millions) June 30, 2017 December 31, 2016 Above-market leases, net of accumulated amortization of $37.1 and $28.1 at June 30, 2017 and December 31, 2016, respectively $ 68.7 $ 72.4 Development project asset 34.1 — Deferred tax asset, net 28.4 28.4 VAT receivable 27.0 23.2 Goodwill 23.9 23.9 Other, net of accumulated amortization of $6.8 and $5.4 at June 30, 2017 and December 31, 2016, respectively 23.8 19.9 Office furniture and equipment net of accumulated depreciation of $30.9 and $24.4 at June 30, 2017 and December 31, 2016, respectively 23.5 25.4 Straight line rent 18.6 11.7 Prepaid expenses 12.9 10.2 Marketable securities (1) 7.9 20.2 Hedge assets 7.2 7.5 Deposits 1.8 1.8 Other Assets $ 277.8 $ 244.6 (1) The amount above excludes Kennedy Wilson's 30.0 million shares in KWE as the investment is eliminated due to the consolidation of KWE's results. Kennedy Wilson's investment in KWE had a market value of approximately $ 434.0 million (cost basis of $454.9 million , net of realized and unrealized hedging activity) based on a per share price of $14.46 at June 30, 2017 . Development Project Asset On May 12, 2017, Kennedy Wilson and its equity partners (the “Capital Dock JV”) sold 200 Capital Dock, a 130,000 ft. office building under construction in Dublin, Ireland. Concurrent with the transaction, the Capital Dock JV entered into a development agreement with the buyer to complete the construction of 200 Capital Dock. The development agreement provides that upon certain events (including the insolvency of the Capital Dock JV and certain delivery deadlines not being met), the buyer may exercise a right to take over the construction of the project. The transaction was evaluated based on ASC Topic 360-20. Because adequate initial investment by the buyer was not collected at June 30, 2017, the transaction has been recorded under the installment method. The installment method apportions each cash receipt between cost recovered and profit. The apportionment is in the same ratio as total cost and total profit bear to the sales value. During the quarter ended June 30, 2017, there was $11.8 million of sale of real estate and $8.9 million of cost of real estate sold in the consolidated statement of operations related to the sale of 200 Capital Dock. Consequently the "development project asset" represents the basis which has not yet been relieved under the installment method. Additional payments from the buyer are due upon completion of certain milestones and when adequate initial and continuing investment requirements have been met, the transaction will be reported under the full accrual method. Because this requirement is expected to be satisfied before construction is completed, continuing involvement associated with construction completion will continue to defer profit recognition related to the construction of the building and which will be recognized in earnings under the percentage of completion basis through completion of the project. The requirements for meeting the full accrual method are expected to be completed before December 31, 2017 while the construction is expected to be completed in the third quarter 2018. In the event that the buyer exercises its right to take over the construction of the project, the Capital Dock JV will receive a reduced amount of proceeds from this transaction. |
Investment Debt
Investment Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
INVESTMENT DEBT | INVESTMENT DEBT Investment debt at June 30, 2017 and December 31, 2016 consists of the following: (Dollars in millions) Carrying Amount of Investment Debt as of (1) Investment Debt by Product Type Region June 30, December 31, Mortgage debt Multifamily (1) Western U.S. $ 1,131.4 $ 1,180.8 Commercial Western U.S. 363.9 290.2 Residential, Hotel and Other Western U.S. 49.5 49.8 Commercial (1)(2) Ireland 422.5 331.5 Multifamily (1)(2) Ireland 142.6 131.3 Residential and Other (1)(2) Ireland 39.8 28.0 Hotel Ireland 82.3 75.7 Commercial (2) Spain 91.3 84.4 Commercial (1)(2) United Kingdom 621.5 616.9 Secured investment debt 2,944.8 2,788.6 Unsecured investment debt (1)(2) United Kingdom 1,275.4 1,192.4 Investment debt (excluding loan fees) $ 4,220.2 $ 3,981.0 Unamortized loan fees (27.4 ) (24.9 ) Total Investment debt $ 4,192.8 $ 3,956.1 (1) The investment debt payable balances include unamortized debt premiums (discounts). Debt premiums (discounts) represent the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan premium (discount) as of June 30, 2017 and December 31, 2016 was $0.1 million and $0.9 million , respectively. (2) Kennedy Wilson owned approximately 23.8% and 23.6% of the total issued share capital of KWE as of June 30, 2017 and December 31, 2016 , respectively. See the table below for a detailed breakout. (Dollars in millions) Carrying amount of investment debt as of (1) Types of Property Pledged as Collateral (KWE) Region June 30, December 31, Commercial (1)(2) Ireland 276.3 254.7 Commercial (1)(2) Spain 91.3 84.4 Commercial (1)(2) United Kingdom 552.4 551.4 Investment debt $ 920.0 $ 890.5 Unsecured (1)(2) United Kingdom 1,275.4 1,192.4 Investment debt (excluding loan fees) $ 2,195.4 $ 2,082.9 Unamortized loan fees (12.4 ) (13.3 ) Total Investment debt $ 2,183.0 $ 2,069.6 (1) The mortgage loan payable balances include unamortized debt premiums (discounts). Debt premiums (discounts) represent the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan discount as of June 30, 2017 and December 31, 2016 was $4.3 million and $4.1 million , respectively. (2) Kennedy Wilson owned approximately 23.80% and 23.6% of the total issued share capital of KWE as of June 30, 2017 and December 31, 2016 , respectively. The investment debt had a weighted average interest rate of 3.37% and 3.33% per annum at June 30, 2017 and December 31, 2016 , respectively. As of June 30, 2017 , 68% of KW Group's investment level debt is fixed rate, 14% is floating rate with interest caps and 18% is floating rate without interest caps, compared to 75% fixed rate, 15% floating rate with interest caps and 10% floating rate without interest caps, as of December 31, 2016 . During the second quarter of 2015, KWE completed its inaugural bond offering of approximately $390.8 million (based on June 30, 2017 rates) ( £300 million ) in 3.95% fixed-rate senior unsecured bonds due 2022. During the third quarter of 2016, KWE completed an additional offering of approximately $260.5 million (based on June 30, 2017 rates) ( £200 million ) in 3.95% fixed-rate senior unsecured bonds due 2022. KWE effectively reduced the interest rate to 3.35% as a result of it entering into swap arrangements to convert 50% of the proceeds into Euros. In addition, during the fourth quarter of 2015, KWE established a £2.0 billion (approximately $2.6 billion based on June 30, 2017 rates) Euro Medium Term Note ("EMTN") Programme. Under the EMTN Programme, KWE may issue, from time to time, up to £2.0 billion of various types of debt securities in certain markets and currencies. During the fourth quarter of 2015 and second quarter of 2016, KWE drew down under its EMTN Programme, with the issuances of senior unsecured notes for an aggregate principal amount of approximately $628.4 million (based on June 30, 2017 rates) ( €550 million ) (the "KWE Notes"). The KWE Notes were issued at a discount and have a carrying value of $624.3 million with an annual fixed coupon of 3.25% , and mature in 2025 . As KWE invests proceeds from the KWE Notes to fund equity investments in new euro denominated assets KWE designates the KWE Notes as net investment hedges under FASB ASC Topic 815. Subsequent fluctuations in foreign currency rates that impact the carrying value of the KWE Notes are recorded to accumulated other comprehensive income. During the six months ended June 30, 2017 , KW Group recognized a loss of $14.5 million in accumulated other comprehensive income due to the strengthening of the euro against the GBP during the period. The KWE Notes rank pari passu with the KWE Bonds (as defined below), and are subject to the same restrictive covenants. The trust deed that governs the bonds contains various restrictive covenants for KWE, including, among others, limitations on KWE’s and its material subsidiaries’ ability to provide certain negative pledges. The trust deed limits the ability of KWE and its subsidiaries to incur additional indebtedness if, on the date of such incurrence and after giving effect to the incurrence of the new indebtedness, (1) KWE’s consolidated net indebtedness (as defined in the trust deed) would exceed 60% of KWE’s total assets (as calculated pursuant to the terms of the trust deed); and (2) KWE’s consolidated secured indebtedness (as defined in the trust deed) would exceed 50% of KWE’s total assets (as calculated pursuant to the terms of the trust deed). The trust deed also requires KWE, as of each reporting date, to maintain an interest coverage ratio (as defined in the trust deed) of at least 1.50 to 1.00 and have unencumbered assets of no less than 125% of its unsecured indebtedness (as defined in the trust deed). As of June 30, 2017 , KWE was in compliance with these covenants. In August 2014, KWE entered into a three -year unsecured floating rate revolving debt facility ("KWE Facility") with Bank of America Merrill Lynch, Deutsche Bank, and J.P. Morgan Chase of approximately $293.1 million ( £225 million ) based on rates as of June 30, 2017 . As of June 30, 2017 , the unsecured credit facility was undrawn, with $293.1 million ( £225 million ) still available based on rates as of June 30, 2017 . On July 11, 2017, KWE secured an extension to the terms of the KWE Facility. The KWE Facility, which was due to expire on August 29, 2017, has been extended to the earlier of the date in which the Company acquires all of the outstanding shares (other than shares owned by the Company or its subsidiaries or held in treasury) of KWE and February 28th, 2018 (see Note 1 for further details). During the six months ended June 30, 2017 , one existing mortgage was refinanced, one acquisition was partially financed with a mortgage, and one investment acquired supplemental financing. The aggregate maturities of investment debt subsequent to June 30, 2017 are as follows: (Dollars in millions) Aggregate Maturities 2017 $ 64.7 2018 168.3 2019 617.6 2020 256.5 2021 103.0 Thereafter 3,010.0 4,220.1 Debt premium 0.1 Unamortized loan fees (27.4 ) $ 4,192.8 |
Senior Notes
Senior Notes | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
SENIOR NOTES | SENIOR NOTES June 30, 2017 December 31, 2016 (Dollars in millions) Unamortized Unamortized Interest Rate Maturity Date Face Value Net Premium/(Discount) Carrying Value Face Value Net Premium/(Discount) Carrying Value 2042 Notes 7.75% 12/1/2042 $ 55.0 $ — $ 55.0 $ 55.0 $ — $ 55.0 2024 Notes 5.88% 4/1/2024 900.0 (2.1 ) 897.9 900.0 (2.2 ) 897.8 Senior Notes $ 955.0 $ (2.1 ) $ 952.9 $ 955.0 $ (2.2 ) $ 952.8 Unamortized loan fees (15.3 ) (16.2 ) Total Senior Notes $ 937.6 $ 936.6 In August 2016, Kennedy Wilson, Inc., (the "Issuer") completed an additional public offering of $250.0 million aggregate principal amount of 5.875% Senior Notes due 2024 (the "Notes"). The Notes were issued as additional notes under the indenture pursuant to which the Issuer previously issued $650 million aggregate principal amount of its 5.875% Senior Notes due 2024 (the “Initial Notes"). The Notes have substantially identical terms as the Initial Notes and will be treated as a single series with the Initial Notes under the indenture. The Notes were issued and sold at a public offering price of 100.0% of their principal amount, plus accrued interest from, and including, April 1, 2016. The indentures governing the 2024 Notes and 2042 Notes contain various restrictive covenants, including, among others, limitations on the Company's ability and the ability of certain of the Company's subsidiaries to incur or guarantee additional indebtedness, to make restricted payments, pay dividends or make any other distributions from restricted subsidiaries, redeem or repurchase capital stock, sell assets or subsidiary stock, engage in transactions with affiliates, create or permit liens on assets, enter into sale/leaseback transactions, and enter into consolidations or mergers. The indentures governing the 2024 and 2042 Notes limit the ability of Kennedy Wilson and its restricted subsidiaries to incur additional indebtedness if, on the date of such incurrence and after giving effect to the new indebtedness, the maximum balance sheet leverage ratio (as defined in the indenture) is greater than 1.50 to 1.00. This ratio is measured at the time of incurrence of additional indebtedness. As of June 30, 2017 , the maximum balance sheet leverage ratio was 1.27 to 1.00. See Note 15 for the guarantor and non-guarantor financial statements. |
Borrowings Under Lines of Credi
Borrowings Under Lines of Credit | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS UNDER LINES OF CREDIT | BORROWINGS UNDER LINES OF CREDIT KW Revolving Facility During the six months ended June 30, 2017 , Kennedy-Wilson, Inc. (the “Borrower”), drew $400.0 million and repaid $50.0 million on the $475 million unsecured revolving credit facility (the “KW Revolving Facility”). As of June 30, 2017 , there was $350.0 million outstanding under the KW Revolving Facility, and $125.0 million was still available. As of December 31, 2016 , the KW Revolving Facility was undrawn, and $475.0 million was still available. Refer to Note 1 for the use of the funds. On December 10, 2015, the Borrower, a wholly-owned subsidiary of Kennedy-Wilson Holdings, Inc. ("KWH") entered into the KW Revolving Facility with a syndicate of lenders including Bank of America, N.A., JP Morgan Chase Bank, N.A., Deutsche Bank AG New York Branch, U.S. Bank N.A., East West Bank, Fifth Third Bank, The Governor and Company of the Bank of Ireland, Compass Bank and City National Bank with Bank of America, N.A., as administrative agent and letter of credit issuer. Loans under the KW Revolving Facility bear interest at a rate equal to LIBOR plus 2.50% or 3.00% , depending on the consolidated leverage ratio as of the applicable measurement date, and have a maturity date of December 10, 2018. Subject to certain conditions precedent and at the Borrower’s option, the maturity date of the KW Revolving Facility may be extended by one year . The KW Revolving Facility has certain covenants that, among other things, limit the Borrower and certain of its subsidiaries’ ability to incur additional indebtedness, repurchase capital stock or debt, sell assets or subsidiary stock, create or permit liens on assets, engage in transactions with affiliates, enter into sale/leaseback transactions, issue subsidiary equity and enter into consolidations or mergers. The credit agreement that governs the KW Revolving Facility requires the Borrower to maintain (i) a maximum consolidated leverage ratio (as defined in the credit agreement) of not greater than 65% , measured as of the last day of each fiscal quarter, (ii) a minimum fixed charge coverage ratio (as defined in the credit agreement) of not less than 1.60 to 1.00, measured as of the last day of each fiscal quarter for the period of four full fiscal quarters then ended, (iii) a minimum consolidated tangible net worth equal to or greater than the sum of $920,660,504.65 plus an amount equal to fifty percent ( 50% ) of net equity proceeds received by the Borrower after September 30, 2015, measured as of the last day of each fiscal quarter, (iv) a maximum recourse leverage ratio (as defined in the credit agreement) of not greater than an amount equal to consolidated tangible net worth as of the measurement date multiplied by 1.5 , measured as of the last day of each fiscal quarter, (v) a maximum secured recourse leverage ratio (as defined in the credit agreement) of not greater than an amount equal to the greater of 3.5% of consolidated total asset value (as defined in the credit agreement) and $138,187,197 , (vi) a maximum adjusted secured leverage ratio (as defined in the credit agreement) of not greater than 55% , measured as of the last day of each fiscal quarter, and (vii) liquidity (as defined in the credit agreement) of at least $250 million . As of June 30, 2017 , the Borrower’s consolidated leverage ratio was 60.8% , its fixed charge coverage ratio was 3.1 to 1.00, its consolidated tangible net worth was $1,306.5 million , its adjusted secured leverage ratio was 35.4% , its secured recourse leverage ratio was 1.0% , its recourse leverage ratio was 1.04 , and liquidity was $1,114.3 million . The obligations of the Borrower pursuant to the Credit Agreement are guaranteed by KWH and certain of its wholly-owned subsidiaries. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock Repurchase Program On February 25, 2016, Kennedy Wilson announced the authorization of a stock repurchase program for up to $100 million . Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases depending on market conditions and subject to the Company's discretion. During the six months ended June 30, 2017 , Kennedy Wilson repurchased and retired 77,155 shares for $1.6 million under the stock repurchase program. During the six months ended June 30, 2016 , Kennedy Wilson repurchased and retired 1,421,252 shares for $28.0 million under the stock repurchase program. Dividend Distributions During the following periods, Kennedy Wilson declared and paid the following cash distributions on its common and preferred stock: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (Dollars in millions) Declared Paid Declared Paid Preferred Stock Series B (1) — — 1.1 1.1 Total Preferred Stock — — 1.1 1.1 Common Stock 39.1 37.9 32.0 29.9 Total (2) $ 39.1 $ 37.9 $ 33.1 $ 31.0 (1) The decrease in Series B dividends during the current year is due to the early conversion of the Series B preferred stock into common shares during the fourth quarter of 2016. (2) The difference between declared and paid is the amount accrued on the consolidated balance sheets. Share-based Compensation During the three months ended June 30, 2017 and 2016 , KW Group recognized $9.4 million and $14.7 million of compensation expense related to the vesting of restricted stock grants. During the six months ended June 30, 2017 and 2016 , KW Group recognized $20.1 million and $32.2 million of compensation expense related to the vesting of restricted stock grants. The decrease for the three and six months ended June 30, 2017 is mainly due to restricted stock that was granted in 2012 under the Company’s Amended and Restated 2009 Equity Participation Plan being fully vested as of December 31, 2016. Upon vesting, the restricted stock granted to employees discussed directly above is net share-settled to cover the withholding tax. Shares that vested during the six months ended June 30, 2017 and 2016 were net-share settled such that the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld during the six months ended June 30, 2017 and 2016 were 1,460,251 shares and 634,692 shares, respectively. During the six months ended June 30, 2017 and 2016 , total payments for the employees’ tax obligations to the taxing authorities were $34.0 million and $14.6 million , respectively. These activities are reflected as a financing activity within KW Group's consolidated statements of cash flows. On April 28, 2017, the Board of Director of the Company adopted the Second Amended and Restated 2009 Equity Participation Plan (the “Second Amended and Restated Plan”), subject to approval by the Company’s stockholders. On June 15, 2017, the Company’s stockholders approved the Second Amended and Restated Plan and the Second Amended and Restated Plan became effective. The Second Amended and Restated Plan amends and restates the Company’s Amended and Restated 2009 Equity Participation Plan (the “First Amended and Restated Plan”) in its entirety. The Second Amended and Restated Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, distribution equivalent units, performance stock awards, performance unit awards and stock appreciation rights to eligible employees, directors and consultants of the Company and its affiliates, including awards that are intended to constitute “qualified performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended. A description of the material terms of the Second Amended and Restated Plan was included in the Company’s definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission on April 28, 2017. Accumulated Other Comprehensive Income The following table summarizes the changes in each component of accumulated other comprehensive income (loss), net of taxes: Foreign Currency Translation Currency Derivative Contracts Marketable Securities Total Accumulated Other Comprehensive Income (Dollars in millions) Balance at December 31, 2016 $ (98.6 ) $ 27.5 $ (0.1 ) $ (71.2 ) Unrealized gains (losses), arising during the period 139.6 (41.8 ) 0.2 98.0 Noncontrolling interest (92.7 ) 19.4 — (73.3 ) Taxes on unrealized gains (losses), arising during the period (18.8 ) 9.0 (0.1 ) (9.9 ) Balance at June 30, 2017 $ (70.5 ) $ 14.1 $ — $ (56.4 ) As discussed throughout this report, the Company is required under U.S. GAAP to consolidate certain non-wholly owned subsidiaries or investments that it controls. As such, the Company's financial statements reflect currency translation adjustments and related hedging activities on a gross basis. In many instances, these fluctuations are not reflective of the actual foreign currency exposure of the underlying consolidated subsidiary. For example, the Company is required to translate the activities of KWE into U.S. dollars even though KWE does not invest in U.S. dollar denominated assets. Therefore, it is important to look at the provided currency translation and currency derivative adjustment information net of noncontrolling interests to get a more accurate understanding of the actual currency exposure for the Company . The local currencies for the Company's interests in foreign operations include the euro, the British pound sterling, and the Japanese yen. The related amounts on KW Group's balance sheets are translated into U.S. dollars at the exchange rates at the respective financial statement date, while amounts on its statements of operations are translated at the average exchange rates during the respective period. The decrease in the unrealized losses on foreign currency translation is a result of the weakening of the U.S. dollar against the euro, the British pound and the Japanese yen during the six months ended June 30, 2017 . In order to manage currency fluctuations, KW Group entered into currency derivative contracts to manage its exposure to currency fluctuations between its functional currency (U.S. dollar) and the functional currency (Euro, GBP and Yen) of certain of its wholly-owned and consolidated subsidiaries. See note 6 for a more detailed discussion of KW Group's currency derivative contracts. Noncontrolling Interests Noncontrolling interests consist of the ownership interests of noncontrolling shareholders in consolidated subsidiaries, and are presented separately on KW Group's balance sheet. As of June 30, 2017 and December 31, 2016 KW Group had noncontrolling interest of $1.3 billion and $1.3 billion , respectively. Kennedy Wilson owned approximately 23.8% and 23.6% of KWE’s total issued share capital as of June 30, 2017 and December 31, 2016, respectively. The noncontrolling interest holders in KWE had an equity balance of $1.1 billion and $1.3 billion as of June 30, 2017 and December 31, 2016, respectively. Due to the terms provided in the investment management agreement between KWE and a wholly-owned subsidiary of Kennedy Wilson, the results of KWE are consolidated in KW Group's financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared (“distributed earnings”) and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. Participating securities, which include unvested restricted stock, are included in the computation of earnings per share pursuant to the two-class method. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding securities. Basic earnings per common share and participating securities represent the summation of the distributed and undistributed earnings per common share and participating security divided by the total weighted average number of common shares outstanding and the total weighted average number of participating securities outstanding during the respective periods. The Company only presents the earnings per share attributable to the common shareholders. Net losses, after deducting the dividends to participating securities, are allocated in full to the common shares since the participating security holders do not have an obligation to share in the losses, based on the contractual rights and obligations of the participating securities. The following is a summary of the elements used in calculating basic and diluted income (loss) per share for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except share and per share amounts) 2017 2016 2017 2016 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 9.4 $ (1.6 ) $ 10.2 $ (9.1 ) Dividends allocated to participating securities (0.2 ) (0.5 ) (0.5 ) (1.0 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities 9.2 (2.1 ) 9.7 (10.1 ) Dividends declared on common shares (19.3 ) (15.4 ) (38.6 ) (31.0 ) Undistributed losses attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities $ (10.1 ) $ (17.5 ) $ (28.9 ) $ (41.1 ) Distributed earnings per share $ 0.17 $ 0.14 $ 0.34 $ 0.28 Undistributed losses per share (0.09 ) (0.16 ) (0.25 ) (0.37 ) Income (loss) per basic 0.08 (0.02 ) 0.09 (0.09 ) Income (loss) per diluted $ 0.08 $ (0.02 ) $ 0.09 $ (0.09 ) Weighted average shares outstanding for basic 111,723,952 109,056,941 111,945,354 109,136,241 Weighted average shares outstanding for diluted (1) 111,723,952 109,056,941 111,945,354 109,136,241 Dividends declared per common share $ 0.17 $ 0.14 $ 0.34 $ 0.28 (1) For the three and six months ended June 30, 2017 , a total of 1,040,003 and 989,495 potentially dilutive securities have not been included in the diluted weight average shares as they are anti-dilutive. For the three and six months ended June 30, 2016 , a total of 3,388,573 and 3,332,013 potentially dilutive securities have not been included in the diluted weighted average shares as they are anti-dilutive. Potentially anti-dilutive securities include preferred stock and unvested restricted stock grants. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Kennedy Wilson is a global real estate investment company. The Company owns, operates, and invests in real estate both on its own and through our investment management platform. To complement its investment business, the Company also provides real estate services primarily to financial services clients. Kennedy Wilson’s segment disclosure with respect to the determination of segment profit or loss and segment assets is based on these two core segments: KW Investments and KW Investment Management and Real Estate Services (IMRES). KW Investments KW Investments invests in multifamily, office, retail, and residential properties as well as loans secured by real estate in the Western U.S., United Kingdom, Ireland, Spain, Italy and Japan. The Company has an average ownership interest across all investments of approximately 39% as of June 30, 2017 . When it has partners, those partners include public shareholders, financial institutions, foundations, endowments, high net worth individuals and other institutional investors. In these instances, the Company is typically the general partner in the arrangement with a promoted interests in the profits of its investments beyond the Company's ownership percentage. These promoted interest are typically fees earned by IMRES as described below. KW Investment Management and Real Estate Services (IMRES) IMRES encompasses the Company fee generating businesses which includes both the Company's investment management platform as well as the Company's third-party services business. The Company's clients include shareholders of KWE, financial institutions, institutional investors, insurance companies, developers, builders and government agencies. IMRES has five main lines of business: investment management, property services, research, brokerage, and auction and conventional sales. These five business lines generate revenue for the Company's through fees and commissions. The Company manages approximately 59 million square feet of properties for the Company and its investment partners (including KWE) in the United States, Europe, and Asia, which includes assets the Company has ownership interests in and third party owned assets. With 27 offices throughout the United States, the United Kingdom, Ireland, Jersey, Spain, Italy and Japan, the Company has the capabilities and resources to provide investment management and property services to real estate owners as well as the experience, as a real estate investor, to understand client concerns. The managers of IMRES have an extensive track record in their respective lines of business and in the real estate community as a whole. Additionally, IMRES plays a critical role in supporting the Company's investment strategy by providing local market intelligence and real-time data for evaluating investments, generating proprietary transaction flow and creating value through efficient implementation of asset management or repositioning strategies. The following tables summarize income activity by segment and corporate for the three and six months ended June 30, 2017 and 2016 and balance sheet data as of June 30, 2017 and December 31, 2016 : Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Investments Rental $ 123.8 $ 120.3 $ 248.1 $ 240.2 Hotel 29.0 26.8 58.5 55.9 Sale of real estate 12.8 12.3 13.6 14.2 Loan purchases, loan originations and other 4.4 3.6 6.5 5.8 Total revenue 170.0 163.0 326.7 316.1 Operating expenses (95.4 ) (86.1 ) (173.7 ) (161.3 ) Depreciation and amortization (52.1 ) (48.9 ) (101.8 ) (97.3 ) Income from unconsolidated investments 12.6 7.2 34.2 25.3 Operating income 35.1 35.2 85.4 82.8 Gain on sale of real estate 66.3 16.1 71.7 54.5 Acquisition-related gains — 8.6 — 8.6 Acquisition-related expenses (0.9 ) (6.3 ) (1.2 ) (8.4 ) Interest expense-investments (35.5 ) (33.6 ) (69.9 ) (66.1 ) Other (0.3 ) 5.0 0.5 5.7 Income before provision for income taxes 64.7 25.0 86.5 77.1 Provision for income taxes (1.3 ) (3.2 ) (2.3 ) (4.2 ) Net income 63.4 21.8 84.2 72.9 Net (income) loss attributable to the noncontrolling interests (12.4 ) 1.2 (12.6 ) (26.2 ) Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 51.0 $ 23.0 $ 71.6 $ 46.7 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Investment Management and Real Estate Services Investment management, property services and research fees (includes $0.3, $6.5, $10.0, and $17.5 of related party fees) $ 7.7 $ 13.5 $ 25.2 $ 32.6 Total revenue 7.7 13.5 25.2 32.6 Operating expenses (13.1 ) (13.5 ) (26.4 ) (29.4 ) Income from unconsolidated investments 0.9 1.2 1.7 2.3 Operating (loss) income (4.5 ) 1.2 0.5 5.5 Net income attributable to the noncontrolling interests — — — — Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (4.5 ) $ 1.2 $ 0.5 $ 5.5 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Corporate Operating expenses $ (17.7 ) $ (20.1 ) $ (31.8 ) $ (43.5 ) Operating loss (17.7 ) (20.1 ) (31.8 ) (43.5 ) Interest expense-corporate (16.6 ) (12.2 ) (32.2 ) (24.3 ) Other 4.6 — 4.4 — Loss before provision for income taxes (29.7 ) (32.3 ) (59.6 ) (67.8 ) (Provision for) benefit from income taxes (7.4 ) 7.1 (2.3 ) 7.6 Net loss (37.1 ) (25.2 ) (61.9 ) (60.2 ) Preferred dividends and accretion of preferred stock issuance costs — (0.5 ) — (1.1 ) Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (37.1 ) $ (25.7 ) $ (61.9 ) $ (61.3 ) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Consolidated Rental $ 123.8 $ 120.3 $ 248.1 $ 240.2 Hotel 29.0 26.8 58.5 55.9 Sale of real estate 12.8 12.3 13.6 14.2 Investment management, property services and research fees (includes $0.3, $6.5, $10.0, and $17.5 of related party fees) 7.7 13.5 25.2 32.6 Loans and other 4.5 3.6 6.5 5.8 Total revenue 177.8 176.5 351.9 348.7 Operating expenses (126.2 ) (119.7 ) (231.9 ) (234.2 ) Depreciation and amortization (52.1 ) (48.9 ) (101.8 ) (97.3 ) Total operating expenses (178.3 ) (168.6 ) (333.7 ) (331.5 ) Income from unconsolidated investments 13.4 8.4 35.9 27.6 Operating income 12.9 16.3 54.1 44.8 Gain on sale of real estate 66.3 16.1 71.7 54.5 Acquisition-related gain — 8.6 — 8.6 Acquisition-related expenses (0.9 ) (6.3 ) (1.2 ) (8.4 ) Interest expense-investment (35.5 ) (33.6 ) (69.9 ) (66.1 ) Interest expense-corporate (16.6 ) (12.2 ) (32.2 ) (24.3 ) Other 4.4 5.0 4.9 5.7 Income before benefit from income taxes 30.6 (6.1 ) 27.4 14.8 Provision for income taxes (8.8 ) 3.9 (4.6 ) 3.4 Net income (loss) 21.8 (2.2 ) 22.8 18.2 Net (income) loss attributable to the noncontrolling interests (12.4 ) 1.1 (12.6 ) (26.2 ) Preferred dividends and accretion of preferred stock issuance costs — (0.5 ) — (1.1 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 9.4 $ (1.6 ) $ 10.2 $ (9.1 ) (Dollars in millions) June 30, 2017 December 31, 2016 Total Assets Investments $ 7,667.9 $ 7,375.5 Investment management and real estate services 101.3 78.1 Corporate 515.1 205.5 Total assets $ 8,284.3 $ 7,659.1 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In determining the quarterly provisions for income taxes, the Company calculates income tax expense based on actual year-to-date income and statutory tax rates. The year-to-date income tax expense reflects the impact of income allocated to noncontrolling interest which is generally not subject to corporate tax as well as the Company's tax adjustments associated with uncertain tax positions. During the six months ended June 30, 2017 , KW Group generated pretax book income of $27.4 million related to its global operations, and recorded a tax provision of $4.6 million . On January 1, 2017, the Company adopted ASU 2016-09 Improvements to Share Based Accounting. As a result of the adoption of ASU 2016-09, the Company recorded an adjustment to opening retained earnings of $9.3 million for excess tax benefits from share awards which had not been recognized under the prior accounting standard. In addition, as a result of the adoption of ASU 2016-09, the Company recorded a tax benefit of $3.8 million through June 30, 2017 related to excess tax benefits realized from the vesting of restricted stock awards and dividend equivalents on restricted stock. During the quarter ended June 30, 2017 , the Company generated pretax book income of $30.6 million and recorded a tax provision of $8.8 million primarily due to the generation of worldwide pre-tax book income. The difference between the U.S. federal rate of 35% and the Company's effective rate is primarily attributable to excess tax benefit from vesting of restricted stock awards, income earned by noncontrolling interests and non-deductible deprecation in the United Kingdom. The Company has subsidiaries in the United Kingdom, Ireland, Luxembourg, Spain and Jersey which manage the Company's European real estate investments as well as subsidiaries in Ireland and Scotland that operate hotel businesses. As of June 30, 2017 , two of the Company's subsidiaries foreign subsidiaries have positive, accumulated earnings of $7.3 million . U.S. domestic taxes have not been provided on amounts earned by such foreign companies since it is the Company's plan to indefinitely reinvest amounts earned by these foreign subsidiaries. If this amount was repatriated to the United States, additional U.S. domestic taxes of $1.7 million would be incurred. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Statements | 6 Months Ended |
Jun. 30, 2017 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | |
GUARANTOR AND NON-GARANTOR FINANCIAL STATEMENTS | GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS The following consolidating financial information and condensed consolidating financial information include: (1) Condensed consolidating balance sheets as of June 30, 2017 and December 31, 2016 ; consolidating statements of operations for the three and six months ended June 30, 2017 and 2016 ; consolidating statements of comprehensive income for the three and six months ended June 30, 2017 and 2016 ; and condensed consolidating statements of cash flows for the six months ended June 30, 2017 and 2016 , of (a) Kennedy-Wilson Holdings, Inc., as the parent, (b) Kennedy-Wilson, Inc., as the subsidiary issuer, (c) the guarantor subsidiaries, (d) the non-guarantor subsidiaries and (e) Kennedy-Wilson Holdings, Inc. on a consolidated basis; and (2) Elimination entries necessary to consolidate Kennedy-Wilson Holdings, Inc., as the parent, with Kennedy-Wilson, Inc. and its guarantor and non-guarantor subsidiaries. Kennedy Wilson owns 100% of all of the guarantor subsidiaries, and, as a result, in accordance with Rule 3-10(d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for these subsidiaries as of and for the three and six months ended June 30, 2017 or 2016 . CONDENSED CONSOLIDATING BALANCE SHEET AS OF JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 410.4 $ 45.6 $ 113.2 $ — $ 569.2 Cash held by consolidated investments — — — 695.6 — 695.6 Accounts receivable — 0.1 47.9 45.4 — 93.4 Loan purchases and originations — 0.3 5.7 81.2 — 87.2 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,456.2 4,605.9 — 6,062.1 Unconsolidated investments — 19.5 314.4 165.1 — 499.0 Investments in and advances to consolidated subsidiaries 1,046.9 1,936.3 1,138.4 — (4,121.6 ) — Other assets — 1.9 44.1 231.8 — 277.8 Total assets $ 1,046.9 $ 2,368.5 $ 3,052.3 $ 5,938.2 $ (4,121.6 ) $ 8,284.3 Liabilities and equity Liabilities Accounts payable $ — $ 0.2 $ 1.6 $ 19.0 $ — $ 20.8 Accrued expenses and other liabilities 19.4 33.8 135.5 242.7 — 431.4 Investment debt — — 978.9 3,213.9 — 4,192.8 Senior notes payable — 937.6 — — — 937.6 Line of credit — 350.0 — — — 350.0 Total liabilities 19.4 1,321.6 1,116.0 3,475.6 — 5,932.6 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,027.5 1,046.9 1,936.3 1,138.4 (4,121.6 ) 1,027.5 Noncontrolling interests — — — 1,324.2 — 1,324.2 Total equity 1,027.5 1,046.9 1,936.3 2,462.6 (4,121.6 ) 2,351.7 Total liabilities and equity $ 1,046.9 $ 2,368.5 $ 3,052.3 $ 5,938.2 $ (4,121.6 ) $ 8,284.3 CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 106.0 $ 45.4 $ 108.8 $ — $ 260.2 Cash held by consolidated investments — — — 625.5 — 625.5 Accounts receivable — — 37.5 33.8 — 71.3 Loan purchases and originations — 0.3 12.1 75.3 — 87.7 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,482.5 4,331.7 — 5,814.2 Unconsolidated investments — 18.8 380.0 156.8 — 555.6 Investments in and advances to consolidated subsidiaries 1,063.8 2,073.2 1,171.6 — (4,308.6 ) — Other assets — 2.6 39.7 202.3 — 244.6 Total assets $ 1,063.8 $ 2,200.9 $ 3,168.8 $ 5,534.2 $ (4,308.6 ) $ 7,659.1 Liabilities Accounts payable $ — $ 0.5 $ 1.6 $ 9.1 $ — 11.2 Accrued expense and other liabilities 15.8 200.0 157.2 39.1 — 412.1 Senior notes payable — 936.6 — — — 936.6 Investment debt — — 936.8 3,019.3 — 3,956.1 Total liabilities 15.8 1,137.1 1,095.6 3,067.5 — 5,316.0 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,048.0 1,063.8 2,073.2 1,171.6 (4,308.6 ) 1,048.0 Noncontrolling interests — — — 1,295.1 — 1,295.1 Total equity 1,048.0 1,063.8 2,073.2 2,466.7 (4,308.6 ) 2,343.1 Total liabilities and equity $ 1,063.8 $ 2,200.9 $ 3,168.8 $ 5,534.2 $ (4,308.6 ) $ 7,659.1 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 35.2 $ 88.6 $ — $ 123.8 Hotel — — — 29.0 — 29.0 Sale of real estate — — — 12.8 — 12.8 Investment management, property services and research fees — — 5.6 2.1 — 7.7 Loan purchases, loan originations and other — — — 4.5 — 4.5 Total revenue — — 40.8 137.0 — 177.8 Operating expenses Rental operating — — 13.6 23.0 — 36.6 Hotel operating — — — 22.8 — 22.8 Cost of real estate sold — — — 9.6 — 9.6 Commission and marketing — — 1.7 — — 1.7 Compensation and related 9.4 20.6 13.6 1.9 — 45.5 General and administrative — 3.6 3.3 3.1 — 10.0 Depreciation and amortization — 0.3 12.0 39.8 — 52.1 Total operating expenses 9.4 24.5 44.2 100.2 — 178.3 Income from unconsolidated subsidiaries — 0.4 3.4 9.6 — 13.4 Income from consolidated subsidiaries 31.2 76.1 39.7 — (147.0 ) — Operating income (loss) 21.8 52.0 39.7 46.4 (147.0 ) 12.9 Non-operating income (expense) Acquisition-related expenses — (0.1 ) (0.7 ) (0.1 ) — (0.9 ) Interest expense-corporate — (16.6 ) — — — (16.6 ) Interest expense-investment — — (9.5 ) (26.0 ) — (35.5 ) Gain on sale of real estate — — 46.6 19.7 — 66.3 Other income / (expense) — 3.4 0.1 0.9 — 4.4 Income (loss) before benefit from income taxes 21.8 38.7 76.2 40.9 (147.0 ) 30.6 (Provision for) benefit from income taxes — (7.5 ) (0.1 ) (1.2 ) — (8.8 ) Net income (loss) 21.8 31.2 76.1 39.7 (147.0 ) 21.8 Net (income) loss attributable to the noncontrolling interests — — — (12.4 ) — (12.4 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. 21.8 31.2 76.1 27.3 (147.0 ) 9.4 Preferred dividends and accretion of preferred stock issuance costs — — — — — — Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 21.8 $ 31.2 $ 76.1 $ 27.3 $ (147.0 ) $ 9.4 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 68.3 $ 179.8 $ — $ 248.1 Hotel — — — 58.5 — 58.5 Sale of real estate — — — 13.6 — 13.6 Investment management, property services and research fees — — 21.1 4.1 — 25.2 Loan purchases, loan originations and other — — 0.3 6.2 — 6.5 Total revenue — — 89.7 262.2 — 351.9 Operating expenses Rental operating — — 26.8 45.8 — 72.6 Hotel operating — — — 47.2 — 47.2 Cost of real estate sold — — — 10.3 — 10.3 Commission and marketing — — 3.6 0.1 — 3.7 Compensation and related 20.1 27.8 26.3 4.0 — 78.2 General and administrative — 6.5 7.8 5.6 — 19.9 Depreciation and amortization — 0.7 23.6 77.5 — 101.8 Total operating expenses 20.1 35.0 88.1 190.5 — 333.7 Income from unconsolidated subsidiaries — 1.6 10.3 24.0 — 35.9 Income from consolidated subsidiaries 42.9 107.7 66.3 — (216.9 ) — Operating income (loss) 22.8 74.3 78.2 95.7 (216.9 ) 54.1 Non-operating income (expense) Acquisition-related expenses — (0.1 ) (0.7 ) (0.4 ) — (1.2 ) Interest expense-corporate — (32.2 ) — — — (32.2 ) Interest expense-investment — — (17.9 ) (52.0 ) — (69.9 ) Gain on sale of real estate — — 46.6 25.1 — 71.7 Other income / (expense) — 3.2 0.1 1.6 — 4.9 Income (loss) before benefit from income taxes 22.8 45.2 106.3 70.0 (216.9 ) 27.4 (Provision for) benefit from income taxes — (2.3 ) 1.4 (3.7 ) — (4.6 ) Net income (loss) 22.8 42.9 107.7 66.3 (216.9 ) 22.8 Net (income) loss attributable to the noncontrolling interests — — — (12.6 ) — (12.6 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. 22.8 42.9 107.7 53.7 (216.9 ) 10.2 Preferred dividends and accretion of preferred stock issuance costs — — — — — — Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 22.8 $ 42.9 $ 107.7 $ 53.7 $ (216.9 ) $ 10.2 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 26.3 $ 94.0 $ — $ 120.3 Hotel — — — 26.8 — 26.8 Sale of real estate — — 9.7 2.6 — 12.3 Investment management, property services, and research fees — — 12.9 0.6 — 13.5 Loan purchases, loan originations and other — — 0.3 3.3 — 3.6 Total revenue — — 49.2 127.3 — 176.5 Operating expenses Rental operating — — 12.2 20.6 — 32.8 Hotel operating — — — 23.6 — 23.6 Cost of real estate sold — — 7.2 2.0 — 9.2 Commission and marketing — — 1.5 0.3 — 1.8 Compensation and related 14.8 11.7 12.3 1.7 — 40.5 General and administrative — 3.6 3.9 4.3 — 11.8 Depreciation and amortization — 0.3 8.8 39.8 — 48.9 Total operating expenses 14.8 15.6 45.9 92.3 — 168.6 Income from unconsolidated investments, net of depreciation and amortization — 0.7 3.0 4.7 — 8.4 Income from consolidated subsidiaries 12.6 30.4 28.8 — (71.8 ) — Operating income (loss) (2.2 ) 15.5 35.1 39.7 (71.8 ) 16.3 Non-operating income (expense) Acquisition-related gains — — — 8.6 — 8.6 Acquisition-related expenses — — (1.1 ) (5.2 ) — (6.3 ) Interest expense-corporate — (12.2 ) — — — (12.2 ) Interest expense-investment — — (5.6 ) (28.0 ) — (33.6 ) Gain (loss) on sale of real estate — — — 16.1 — 16.1 Other income / (expense) — 6.0 (0.1 ) (0.9 ) — 5.0 Income (loss) before benefit from income taxes (2.2 ) 9.3 28.3 30.3 (71.8 ) (6.1 ) (Provision for) benefit from income taxes — 3.3 2.1 (1.5 ) — 3.9 Net income (loss) (2.2 ) 12.6 30.4 28.8 (71.8 ) (2.2 ) Net (income) loss attributable to the noncontrolling interests — — — 1.1 — 1.1 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. (2.2 ) 12.6 30.4 29.9 (71.8 ) (1.1 ) Preferred dividends and accretion of preferred stock issuance costs (0.5 ) — — — — (0.5 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (2.7 ) $ 12.6 $ 30.4 $ 29.9 $ (71.8 ) $ (1.6 ) CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 51.2 $ 189.0 $ — $ 240.2 Hotel — — — 55.9 — 55.9 Sale of real estate — — 9.7 4.5 — 14.2 Investment management, property services, and research fees — — 31.1 1.5 — 32.6 Loan purchases, loan originations and other — — 0.6 5.2 — 5.8 Total revenue — — 92.6 256.1 — 348.7 Operating expenses Rental operating — — 22.1 41.7 — 63.8 Hotel operating — — — 48.1 — 48.1 Cost of real estate sold — — 7.2 3.4 — 10.6 Commission and marketing — — 3.2 0.3 — 3.5 Compensation and related 32.3 25.6 24.5 3.8 — 86.2 General and administrative — 7.0 7.7 7.3 — 22.0 Depreciation and amortization — 0.6 17.5 79.2 — 97.3 Total operating expenses 32.3 33.2 82.2 183.8 — 331.5 Income from unconsolidated investments, net of depreciation and amortization — 3.1 8.5 16.0 — 27.6 Income from consolidated subsidiaries 50.5 93.8 88.3 — (232.6 ) — Operating income (loss) 18.2 63.7 107.2 88.3 (232.6 ) 44.8 Non-operating income (expense) Acquisition-related gains — — — 8.6 — 8.6 Acquisition-related expenses — — (1.2 ) (7.2 ) — (8.4 ) Interest expense-corporate — (24.3 ) — — — (24.3 ) Interest expense-investment — — (11.0 ) (55.1 ) — (66.1 ) Gain (loss) on sale of real estate — — 0.4 54.1 — 54.5 Other income / (expense) — 7.3 (2.6 ) 1.0 — 5.7 Income (loss) before benefit from income taxes 18.2 46.7 92.8 89.7 (232.6 ) 14.8 (Provision for) benefit from income taxes — 3.8 1.0 (1.4 ) — 3.4 Net income (loss) 18.2 50.5 93.8 88.3 (232.6 ) 18.2 Net (income) loss attributable to the noncontrolling interests — — — (26.2 ) — (26.2 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. 18.2 50.5 93.8 62.1 (232.6 ) (8.0 ) Preferred dividends and accretion of preferred stock issuance costs (1.1 ) — — — — (1.1 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 17.1 $ 50.5 $ 93.8 $ 62.1 $ (232.6 ) $ (9.1 ) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net (loss) income $ 21.8 $ 31.2 $ 76.1 $ 39.7 $ (147.0 ) $ 21.8 Other comprehensive (loss) income, net of tax: Unrealized foreign currency translation (loss) gain 99.6 99.6 14.6 92.9 (207.1 ) 99.6 Unrealized loss on marketable securities 0.1 0.1 — — (0.1 ) 0.1 Amounts reclassified out of AOCI during the period — — — — — — Unrealized currency derivative contracts gain (loss) (41.5 ) (41.5 ) (7.8 ) (33.7 ) 83.0 (41.5 ) Total other comprehensive (loss) income for the period $ 58.2 $ 58.2 $ 6.8 $ 59.2 $ (124.2 ) $ 58.2 Comprehensive (loss) income $ 80.0 $ 89.4 $ 82.9 $ 98.9 $ (271.2 ) $ 80.0 Comprehensive loss attributable to noncontrolling interests — — — (61.0 ) — (61.0 ) Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ 80.0 $ 89.4 $ 82.9 $ 37.9 $ (271.2 ) $ 19.0 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net (loss) income $ 22.8 $ 42.9 $ 107.7 $ 66.3 $ (216.9 ) $ 22.8 Other comprehensive (loss) income, net of tax: Unrealized foreign currency translation (loss) gain 120.8 120.8 18.5 112.2 (251.5 ) 120.8 Unrealized loss on marketable securities 0.1 0.1 — — (0.1 ) 0.1 Unrealized currency derivative contracts gain (loss) (32.8 ) (32.8 ) (9.8 ) (23.0 ) 65.6 (32.8 ) Total other comprehensive (loss) income for the period $ 88.1 $ 88.1 $ 8.7 $ 89.2 $ (186.0 ) $ 88.1 Comprehensive (loss) income $ 110.9 $ 131.0 $ 116.4 $ 155.5 $ (402.9 ) $ 110.9 Comprehensive loss attributable to noncontrolling interests — — — (85.9 ) — (85.9 ) Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ 110.9 $ 131.0 $ 116.4 $ 69.6 $ (402.9 ) $ 25.0 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net income (loss) $ (2.2 ) $ 12.6 $ 30.4 $ 28.8 $ (71.8 ) $ (2.2 ) Other comprehensive income (loss), net of tax: Unrealized foreign currency translation (loss) gains (82.8 ) (82.8 ) (10.9 ) (82.5 ) 176.2 (82.8 ) Amounts reclassified out of AOCI during the period 2.7 2.7 — 2.7 (5.4 ) 2.7 Unrealized currency derivative contracts (loss) gain (39.3 ) (39.3 ) 10.9 (50.2 ) 78.5 (39.4 ) Total other comprehensive income for the period $ (119.4 ) $ (119.4 ) $ — $ (130.0 ) $ 249.3 $ (119.5 ) Comprehensive (loss) income $ (121.6 ) $ (106.8 ) $ 30.4 $ (101.2 ) $ 177.5 $ (121.7 ) Comprehensive (income) loss attributable to noncontrolling interests — — — 110.6 — 110.6 Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ (121.6 ) $ (106.8 ) $ 30.4 $ 9.4 $ 177.5 $ (11.1 ) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net income (loss) $ 18.2 $ 50.5 $ 93.8 $ 88.3 $ (232.6 ) $ 18.2 Other comprehensive income (loss), net of tax: Unrealized foreign currency translation (loss) gains (60.6 ) (60.6 ) (6.4 ) (64.2 ) 131.2 (60.6 ) Unrealized loss on marketable securities 0.1 0.1 — — (0.1 ) 0.1 Amounts reclassified out of AOCI during the period 2.7 2.7 — 2.7 (5.4 ) 2.7 Unrealized currency derivative contracts (loss) gain (89.4 ) (89.4 ) 10.4 (99.8 ) 178.8 (89.4 ) Total other comprehensive income for the period $ (147.2 ) $ (147.2 ) $ 4.0 $ (161.3 ) $ 304.5 $ (147.2 ) Comprehensive (loss) income $ (129.0 ) $ (96.7 ) $ 97.8 $ (73.0 ) $ 71.9 $ (129.0 ) Comprehensive (income) loss attributable to noncontrolling interests — — — 112.1 — 112.1 Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ (129.0 ) $ (96.7 ) $ 97.8 $ 39.1 $ 71.9 $ (16.9 ) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidated Total Net cash (used in) provided by operating activities $ 2.3 $ (223.7 ) $ 19.1 $ 270.5 $ 68.2 Cash flows from investing activities: Additions to loans — — — — — Collections of loans — — 6.4 — 6.4 Net proceeds from sale of real estate — — 108.4 134.6 243.0 Purchases of and additions to real estate — — (166.8 ) (118.1 ) (284.9 ) Proceeds from settlement of foreign derivative contracts — 3.0 — — 3.0 Purchases of foreign derivative contracts — (0.5 ) — — (0.5 ) Investment in marketable securities — — (0.4 ) — (0.4 ) Proceeds from sale of marketable securities — — 0.2 — 0.2 Distributions from unconsolidated investments — — 53.6 15.4 69.0 Contributions to unconsolidated investments — — (30.2 ) (6.5 ) (36.7 ) (Investments in) distributions from consolidated subsidiaries, net 76.7 175.7 (32.8 ) (219.6 ) — Net cash provided by investing activities 76.7 178.2 (61.6 ) (194.2 ) (0.9 ) Cash flows from financing activities: Borrowings under line of credit — 400.0 — — 400.0 Repayment of line of credit — (50.0 ) — — (50.0 ) Borrowings under investment debt — — 77.0 89.8 166.8 Repayment of investment debt — — (34.4 ) (66.2 ) (100.6 ) Debt issue costs — (0.1 ) — — (0.1 ) Costs associated with KWE transaction (5.5 ) — — — (5.5 ) Repurchase and retirement of common stock (35.6 ) — — — (35.6 ) Dividends paid (37.9 ) — — — (37.9 ) Acquisition of KWE shares from noncontrolling interest holders — — — (3.3 ) (3.3 ) Contributions from noncontrolling interests, excluding KWE — — — 22.7 22.7 Distributions to noncontrolling interests — — — (76.2 ) (76.2 ) Net cash (used in) provided by financing activities (79.0 ) 349.9 42.6 (33.2 ) 280.3 Effect of currency exchange rate changes on cash and cash equivalents — — — 31.5 31.5 Net change in cash and cash equivalents — 304.4 0.1 74.6 379.1 Cash and cash equivalents, beginning of period — 106.0 45.4 734.3 885.7 Cash and cash equivalents, end of period $ — $ 410.4 $ 45.5 $ 808.9 $ 1,264.8 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidated Total Net cash provided (used in) by operating activities $ (0.2 ) $ (138.3 ) $ 56.3 $ 92.7 $ 10.5 Cash flows from investing activities: Additions to loans — (0.8 ) (4.5 ) — (5.3 ) Collections of loans — — 4.9 133.9 138.8 Net proceeds from sale of real estate — — 3.4 180.0 183.4 Purchases of and additions to real estate — — (51.5 ) (396.0 ) (447.5 ) Proceeds from settlement of foreign derivative contracts — 25.7 — — 25.7 Purchases of foreign derivative contracts — (3.4 ) — — (3.4 ) Investment in marketable securities — — (0.7 ) — (0.7 ) Distributions from unconsolidated investments — — 13.5 21.7 35.2 Contributions to unconsolidated investments — (1.0 ) (32.7 ) (11.9 ) (45.6 ) (Investments in) distributions from consolidated subsidiaries, net 74.0 8.9 (44.4 ) (38.5 ) — Net cash (used in) provided by investing activities 74.0 29.4 (112.0 ) (110.8 ) (119.4 ) Cash flows from financing activities: Borrowings under line of credit — 100.0 — — 100.0 Borrowings under investment debt — — 66.4 410.1 476.5 Repayment of investment debt — — (18.4 ) (79.1 ) (97.5 ) Debt issue costs — (0.2 ) (0.6 ) (2.9 ) (3.7 ) Repurchase and retirement of common stock (42.8 ) — — — (42.8 ) Dividends paid (31.0 ) — — — (31.0 ) Acquisition of KWE shares from noncontrolling interest holders — — — (67.9 ) (67.9 ) Contributions from noncontrolling interests, excluding KWE — — — 12.9 12.9 Distributions to noncontrolling interests — — — (73.5 ) (73.5 ) Net cash provided by (used in) financing activities (73.8 ) 99.8 47.4 199.6 273.0 Effect of currency exchange rate changes on cash and cash equivalents — — — (39.7 ) (39.7 ) Net change in cash and cash equivalents — (9.1 ) (8.3 ) 141.8 124.4 Cash and cash equivalents, beginning of period — 80.2 37.0 614.4 731.6 Cash and cash equivalents, end of period $ — $ 71.1 $ 28.7 $ 756.2 $ 856.0 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluated subsequent events through the date these financial statements were issued, noting none that required disclosure in the consolidated financial statements. |
Summary of Significant Accoun26
Summary of Significant Accounting Polices and Adoption of New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
REVENUE RECOGNITION | Performance fees or carried interests are allocated to the general partner, special limited partner or asset manager of the Company's real estate funds and loan pool participations based on the cumulative performance of the funds and loan pools and are subject to preferred return thresholds of the limited partners and participants. At the end of each reporting period, the Company calculates the performance fee that would be due to the general partner, special limited partner or asset manager's interests for a fund or loan pool, pursuant to the fund agreement or participation 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 performance fees to reflect either (a) positive performance resulting in an increase in the performance fee allocated to the general partner or asset manager or (b) negative performance that would cause the amount due to the Company to be less than the amount previously recognized as revenue, resulting in a negative adjustment to performance fees allocated to the general partner or asset manager. A majority of the performance fees are recognized in investment management revenue in the Company's consolidated statements of operations. |
REAL ESTATE ACQUISITIONS | The purchase price of acquired properties is recorded to land, buildings and building improvements and intangible lease value (value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any) based on their respective estimated fair values in accordance with ASC Subtopic 805-10, Business Combinations . Acquisition-related costs are expensed as incurred. The ownership of the other interest holders in consolidated subsidiaries is reflected as noncontrolling interests. The valuations of real estate are based on management estimates of the real estate assets using income and market approaches. The indebtedness securing the real estate is valued, in part, based on third party valuations and management estimates also using an income approach. |
NONCONTROLLING INTERESTS | Noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly to the Company. These amounts are reported within equity as a separate component in accordance with ASC Subtopic 810-10, Noncontrolling Interests in Consolidated Financial Statements . Revenues, expenses, gains, losses, net income (loss), and other comprehensive income (loss) are reported in the consolidated statements of operations at the consolidated amounts and net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are separately stated. |
FOREIGN CURRENCIES | The financial statements of KW Group's subsidiaries located outside the United States are measured using the local currency as this is their functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly rate. The foreign currencies include the euro, the British pound sterling, and the Japanese yen. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in the consolidated statement of equity as a component of accumulated other comprehensive income. Investment level debt is generally incurred in local currencies. Fluctuations in foreign exchanges rates may have a significant impact on the results of our operations. In order to manage the effect of these fluctuations, the Company enters into hedging transactions, in the form of currency derivative contracts, that are designed to reduce its book equity exposure to foreign currencies. |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | All derivative instruments are recognized as either assets or liabilities in the balance sheet at their respective fair values. For derivatives designated in hedging relationships, changes in fair value of cash flow hedges or net investment hedges are recognized in accumulated other comprehensive income, to the extent the derivative is effective at offsetting the changes in the item being hedged until the hedged item affects earnings. Changes in fair value for fair value hedges are recognized in earnings. Fluctuations in foreign exchanges rates may have a significant impact on the Company's results of operations. In order to manage the potential exposure from adverse changes in foreign exchange rates arising from the Company’s net investments in foreign operations, the Company may enter into currency derivative contracts to hedge all or portions of the net investments in the Company’s non-U.S. dollar denominated foreign operations. |
INCOME TAXES | Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In accordance with ASC Subtopic 740-10, Accounting for Uncertainty in Income Taxes , the effect of income tax positions is recognized only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. |
RECENT ACCOUNTING PRONOUNCEMENTS | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, a five step model to recognize revenue from customer contracts in an effort to increase consistency and comparability throughout global capital markets and across industries. The model will identify the contract, identify any separate performance obligations in the contract, determine the transaction price, allocate the transaction price and recognize revenue when the performance obligation is satisfied. The new standard will apply to KW Group’s management and leasing fees (including performance fees), commissions, rental and hotel income. Management is evaluating the impact of the five step model and does not expect it to have a significant impact on the financial statements. ASU 2014-09 will also impact how sales of real estate are reported, which will become subject to ASC Subtopic 610-20 Other Income- Gains and Losses from the Derecognition of Nonfinancial Assets ("Subtopic 610-20") . After review of Subtopic 610-20, management concluded that the new standard is not expected to have a significant impact on the amount, timing or classification of real estate sales in the financial statements or related disclosures based on the Company's current business mix. The new standard will replace most existing revenue recognition in GAAP when it becomes effective for the Company on January 1, 2018. The Company is planning on adopting a modified retrospective transition method when the guidance becomes effective. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 is required to be adopted for fiscal years beginning after December 15, 2018. Because KW Group's existing operating lease commitments are not material and the accounting for leases by the lessor is substantially unchanged, the Company does not expect the ASU to have a significant impact on its results of operations or financial position. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. ASU 2016-07 is effective for all entities in fiscal years beginning after December 15, 2016. The adoption of this standard did not have a material impact on KW Group's consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). ASU 2016-09 requires excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. An excess tax benefit (windfall) arises when the value of the share-based award on the vesting date is higher than the fair value on the grant date. A tax deficiency (shortfall) arises when the fair value on vesting date is lower than the fair value on the grant date. In addition, ASU 2016-09 eliminated the requirement for excess tax benefits from share-based compensation to reduce current taxes payable prior to being recognized in the financial statement. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within the Company’s tax provision for income taxes as the amount of excess tax benefits or deficiencies from stock-based compensation awards is from now on dependent upon the Company’s stock price on the date the awards vest. On January 1, 2017, KW Group adopted ASU 2016-09 under the modified retrospective approach and recorded the cumulative impact of the accounting change through a reduction to the accumulated deficit of $9.3 million . This amount represents the cumulative excess tax benefits related to share-based compensation as of December 31, 2016 which had not been reflected as a deferred tax asset. As a result of adoption of ASU 2016-09, the excess tax benefits were reclassified to net operating loss carryover, resulting in an increase in our deferred tax asset by $9.3 million as of January 1, 2017. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , which addresses eight classification issues related to the statement of cash flows: (a) debt prepayment or debt extinguishment costs, (b) settlement of zero-coupon bonds, (c) contingent consideration payments made after a business combination (d) proceeds from the settlement of insurance claims, (e) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (f) distributions received from equity method investees, (g) beneficial interests in securitization transactions, and (h) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is required to be adopted for public entities for fiscal years beginning after December 15, 2017. The Company does not expect the ASU to have a significant impact on KW Group's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU clarifies the definition of a business. The three elements of a business (inputs, processes, and outputs) has not changed, however, the amendment provides a framework to assist entities in evaluating whether these elements are present. The amended framework is not expected to materially impact the Company’s financial statements. However, the amendment also includes a provision that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. Therefore, real estate acquisitions generally will no longer be considered a business and consequently not be accounted for under Topic 805. The Company has evaluated the likely impacts noting that (1) acquisition related costs will no longer be expensed as incurred and (2) regardless of the market value of a property at the acquisition date, acquisition related gains will no longer be recorded. ASU 2017-01 is required to be adopted for public entities for fiscal years beginning after December 15, 2017. The Company does not expect the ASU to have a significant impact on KW Group's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 is required to be adopted for public entities that are SEC filers, for annual and interim periods in fiscal years beginning after December 15, 2019. T he Company does not expect the ASU to have a significant impact on KW Group's consolidated financial statements. The FASB did not issue any other ASUs during the first six months of 2017 that the Company expects to be applicable and have a material impact on the Company's financial position or results of operations. |
RECLASSIFICATIONS | Certain balances included in prior year's financial statements have been reclassified to conform to the current year's presentation. |
EARNINGS PER SHARE | In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared (“distributed earnings”) and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. Participating securities, which include unvested restricted stock, are included in the computation of earnings per share pursuant to the two-class method. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding securities. Basic earnings per common share and participating securities represent the summation of the distributed and undistributed earnings per common share and participating security divided by the total weighted average number of common shares outstanding and the total weighted average number of participating securities outstanding during the respective periods. The Company only presents the earnings per share attributable to the common shareholders. |
Real Estate and In-Place Leas27
Real Estate and In-Place Lease Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Real Estate [Abstract] | |
Schedule of Investment in Consolidated Real Estate Properties | The following table summarizes KW Group's investment in consolidated real estate properties at June 30, 2017 and December 31, 2016 : June 30, December 31, (Dollars in millions) 2017 2016 Land $ 1,429.3 $ 1,383.2 Buildings 4,228.4 4,048.7 Building improvements 461.4 373.5 In-place lease values 409.0 383.1 6,528.1 6,188.5 Less accumulated depreciation and amortization (466.0 ) (374.3 ) Real estate and acquired in place lease values, net of accumulated depreciation and amortization $ 6,062.1 $ 5,814.2 During the six months ended June 30, 2017 , KW Group recognized the following gains on sale of real estate: (Dollars in millions) Gain on sale of real estate Description Consolidated (1) NCI Net of NCI KW Two multifamily properties and one retail center in the Western U.S., one commercial development in Ireland and one residential property in the United Kingdom $ 62.1 $ 5.8 $ 56.3 KWE 15 commercial properties in the United Kingdom and two condo unit sales in Spain 12.9 9.9 3.0 KW Group $ 75.0 $ 15.7 $ 59.3 (1) Includes both the sale of real estate as a business, which is recognized through gain on sale of real estate, and the sale of real estate as assets, which is the net of sale of real estate and cost of real estate sold. |
Schedule of Business Acquisitions, by Acquisition | During the six months ended June 30, 2017 , KW Group acquired the following consolidated properties: (Dollars in millions) Preliminary Purchase Price Allocation at Acquisition (1) Location Description Land Building Acquired in place lease values (2) Investment debt NCI KWH Shareholders' Equity Western U.S. One retail center and one commercial property $ 32.9 $ 115.3 $ 16.4 $ 77.0 $ 0.2 $ 79.8 $ 32.9 $ 115.3 $ 16.4 $ 77.0 $ 0.2 $ 79.8 (1) Excludes acquisition expenses and net other assets. The purchase price allocations for properties acquired during the six months ended June 30, 2017 are based on preliminary measurements of fair value that are subject to change. These allocations represent the Company's current best estimates of fair value and will be finalized within one year. (2) Includes above and below market leases in this table. Above and below market leases are part of other assets and accrued expenses and other liabilities. |
Business Acquisition, Pro Forma Information | The pro forma data presented below assumes that the acquisitions during the three and six months ended June 30, 2017 occurred as of January 1, 2016. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except for per share data) 2017 2016 2017 2016 Pro forma revenues $ 178.6 $ 180.7 $ 354.2 $ 356.6 Pro forma net income 22.4 1.2 24.1 24.8 Pro forma net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders 9.9 1.8 11.6 (2.5 ) Pro forma net income (loss) per share: Basic $ 0.09 $ 0.02 $ 0.10 $ (0.02 ) Diluted $ 0.09 $ 0.02 $ 0.10 $ (0.02 ) |
Unconsolidated Investments (Tab
Unconsolidated Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Joint Ventures by Location and Investment Type | The following table details the Company's unconsolidated investments by investment type and geographic location as of June 30, 2017 : (Dollars in millions) Multifamily Commercial Residential and Other Total Western U.S. $ 204.1 $ 58.7 $ 201.3 $ 464.1 United Kingdom — 11.1 — 11.1 Spain — — 17.5 17.5 Japan 6.4 — — 6.4 Total $ 210.5 $ 69.8 $ 218.8 $ 499.1 The following table details the Company's unconsolidated investments by investment type and geographic location as of December 31, 2016 : (Dollars in millions) Multifamily Commercial Residential and Other Total Western U.S. $ 192.9 $ 65.3 $ 261.6 $ 519.8 United Kingdom — 13.8 — 13.8 Spain — — 15.9 15.9 Japan 6.1 — — 6.1 Total $ 199.0 $ 79.1 $ 277.5 $ 555.6 |
Schedule of Joint Venture Cash Distributions by Investment Type and Geographic Location | The following table details cash distributions by investment type and geographic location for the six months ended June 30, 2017 : Multifamily Commercial Residential and Other Total (Dollars in millions) Operating Investing Operating Investing Operating Investing Operating Investing Western U.S. $ 15.0 $ 8.6 $ 24.3 $ 16.1 $ 15.7 $ 44.3 $ 55.0 $ 69.0 United Kingdom — — 2.3 — — — 2.3 — Total $ 15.0 $ 8.6 $ 26.6 $ 16.1 $ 15.7 $ 44.3 $ 57.3 $ 69.0 |
Fair Value Measurements and t29
Fair Value Measurements and the Fair Value Option (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of June 30, 2017 : (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 330.8 $ 330.8 Marketable securities 7.9 — — 7.9 Currency derivative contracts — (85.5 ) — (85.5 ) Total $ 7.9 $ (85.5 ) $ 330.8 $ 253.2 The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2016 : (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 329.4 $ 329.4 Marketable securities 7.5 — — 7.5 Currency derivative contracts — (47.2 ) — (47.2 ) Total $ 7.5 $ (47.2 ) $ 329.4 $ 289.7 |
Schedule of Investments in Joint Ventures Held at Fair Value | The following table summarizes the Company's investments in unconsolidated investments held at fair value by type: (Dollars in millions) June 30, 2017 December 31, 2016 FV Option $ 282.6 $ 282.4 Funds 48.2 47.0 Total $ 330.8 $ 329.4 |
Schedule of Changes in Level 3 Investments | The following table presents changes in Level 3 investments, investments in investment companies and investments in joint ventures that elected the fair value option for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Beginning balance $ 375.8 $ 234.8 $ 329.4 $ 223.8 Unrealized and realized gains 5.7 9.0 27.8 26.6 Unrealized and realized losses (0.1 ) — (1.0 ) — Contributions 5.0 4.3 25.2 20.1 Distributions (55.2 ) (12.0 ) (74.5 ) (34.9 ) Other (0.4 ) 0.5 23.9 1.0 Ending balance $ 330.8 $ 236.6 $ 330.8 $ 236.6 |
Schedule of the Funds and Fair Value Option Investments, Significant Inputs | The table below describes the range of unobservable inputs for real estate assets: Estimated Rates Used for Capitalization Rates Discount Rates Office 4.75% - 8.60% 7.25% - 9.75% Retail 5.50% - 9.00% 7.25% - 11.00% Multifamily 4.75% - 7.75% 8.00% - 9.75% Land and condominium units N/A 8.00% - 15.00% |
Schedule of Currency Forward Contracts | The table below details the currency derivative contracts KW Group held as of June 30, 2017 and the activity during the six months ended June 30, 2017 : (Dollars in millions) June 30, 2017 Six Months Ended June 30, 2017 Currency Hedged Underlying Currency Notional Hedge Asset Hedge Liability Change in Unrealized Gains (Losses) Realized Gains (Losses) Cash Received (Paid) Outstanding EUR USD € 130.0 $ 0.3 $ (2.8 ) $ (6.2 ) $ — $ — EUR (1) GBP € 360.0 — (79.8 ) (11.0 ) — — EUR (1)(2) GBP — — (14.5 ) — — GBP USD £ 356.0 6.7 (3.0 ) (10.2 ) — (0.5 ) GBP (3) USD £ 259.7 — (6.8 ) — (6.8 ) — Yen USD ¥ 757.0 0.2 (0.3 ) (0.1 ) — — Total Outstanding 7.2 (92.7 ) (42.0 ) (6.8 ) (0.5 ) Settled GBP USD — — 0.2 0.2 3.0 Total Settled — — 0.2 0.2 3.0 Total 7.2 (92.7 ) (41.8 ) (6.6 ) 2.5 Noncontrolling interests — 60.8 19.4 — — Total - Kennedy Wilson share $ 7.2 $ (31.9 ) $ (22.4 ) $ (6.6 ) $ 2.5 (1) Hedge is held by KWE on its wholly-owned subsidiaries. (2) Relates to KWE's Euro Medium Term Note. See discussion in Note 8. (3) Relates to hedges on GBP escrow cash that is held by Kennedy Wilson relating to the proposed acquisition of KWE. Derivative losses are offset by realized foreign currency exchange gains on translation of cash. |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: (Dollars in millions) June 30, 2017 December 31, 2016 Above-market leases, net of accumulated amortization of $37.1 and $28.1 at June 30, 2017 and December 31, 2016, respectively $ 68.7 $ 72.4 Development project asset 34.1 — Deferred tax asset, net 28.4 28.4 VAT receivable 27.0 23.2 Goodwill 23.9 23.9 Other, net of accumulated amortization of $6.8 and $5.4 at June 30, 2017 and December 31, 2016, respectively 23.8 19.9 Office furniture and equipment net of accumulated depreciation of $30.9 and $24.4 at June 30, 2017 and December 31, 2016, respectively 23.5 25.4 Straight line rent 18.6 11.7 Prepaid expenses 12.9 10.2 Marketable securities (1) 7.9 20.2 Hedge assets 7.2 7.5 Deposits 1.8 1.8 Other Assets $ 277.8 $ 244.6 (1) The amount above excludes Kennedy Wilson's 30.0 million shares in KWE as the investment is eliminated due to the consolidation of KWE's results. Kennedy Wilson's investment in KWE had a market value of approximately $ 434.0 million (cost basis of $454.9 million , net of realized and unrealized hedging activity) based on a per share price of $14.46 at June 30, 2017 . |
Investment Debt (Tables)
Investment Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgage Loans and Notes Payable | Investment debt at June 30, 2017 and December 31, 2016 consists of the following: (Dollars in millions) Carrying Amount of Investment Debt as of (1) Investment Debt by Product Type Region June 30, December 31, Mortgage debt Multifamily (1) Western U.S. $ 1,131.4 $ 1,180.8 Commercial Western U.S. 363.9 290.2 Residential, Hotel and Other Western U.S. 49.5 49.8 Commercial (1)(2) Ireland 422.5 331.5 Multifamily (1)(2) Ireland 142.6 131.3 Residential and Other (1)(2) Ireland 39.8 28.0 Hotel Ireland 82.3 75.7 Commercial (2) Spain 91.3 84.4 Commercial (1)(2) United Kingdom 621.5 616.9 Secured investment debt 2,944.8 2,788.6 Unsecured investment debt (1)(2) United Kingdom 1,275.4 1,192.4 Investment debt (excluding loan fees) $ 4,220.2 $ 3,981.0 Unamortized loan fees (27.4 ) (24.9 ) Total Investment debt $ 4,192.8 $ 3,956.1 (1) The investment debt payable balances include unamortized debt premiums (discounts). Debt premiums (discounts) represent the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan premium (discount) as of June 30, 2017 and December 31, 2016 was $0.1 million and $0.9 million , respectively. (2) Kennedy Wilson owned approximately 23.8% and 23.6% of the total issued share capital of KWE as of June 30, 2017 and December 31, 2016 , respectively. See the table below for a detailed breakout. (Dollars in millions) Carrying amount of investment debt as of (1) Types of Property Pledged as Collateral (KWE) Region June 30, December 31, Commercial (1)(2) Ireland 276.3 254.7 Commercial (1)(2) Spain 91.3 84.4 Commercial (1)(2) United Kingdom 552.4 551.4 Investment debt $ 920.0 $ 890.5 Unsecured (1)(2) United Kingdom 1,275.4 1,192.4 Investment debt (excluding loan fees) $ 2,195.4 $ 2,082.9 Unamortized loan fees (12.4 ) (13.3 ) Total Investment debt $ 2,183.0 $ 2,069.6 (1) The mortgage loan payable balances include unamortized debt premiums (discounts). Debt premiums (discounts) represent the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan discount as of June 30, 2017 and December 31, 2016 was $4.3 million and $4.1 million , respectively. (2) Kennedy Wilson owned approximately 23.80% and 23.6% of the total issued share capital of KWE as of June 30, 2017 and December 31, 2016 , respectively. June 30, 2017 December 31, 2016 (Dollars in millions) Unamortized Unamortized Interest Rate Maturity Date Face Value Net Premium/(Discount) Carrying Value Face Value Net Premium/(Discount) Carrying Value 2042 Notes 7.75% 12/1/2042 $ 55.0 $ — $ 55.0 $ 55.0 $ — $ 55.0 2024 Notes 5.88% 4/1/2024 900.0 (2.1 ) 897.9 900.0 (2.2 ) 897.8 Senior Notes $ 955.0 $ (2.1 ) $ 952.9 $ 955.0 $ (2.2 ) $ 952.8 Unamortized loan fees (15.3 ) (16.2 ) Total Senior Notes $ 937.6 $ 936.6 |
Schedule of Maturities of Mortgage Loans and Notes Payable | The aggregate maturities of investment debt subsequent to June 30, 2017 are as follows: (Dollars in millions) Aggregate Maturities 2017 $ 64.7 2018 168.3 2019 617.6 2020 256.5 2021 103.0 Thereafter 3,010.0 4,220.1 Debt premium 0.1 Unamortized loan fees (27.4 ) $ 4,192.8 |
Senior Notes (Tables)
Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | Investment debt at June 30, 2017 and December 31, 2016 consists of the following: (Dollars in millions) Carrying Amount of Investment Debt as of (1) Investment Debt by Product Type Region June 30, December 31, Mortgage debt Multifamily (1) Western U.S. $ 1,131.4 $ 1,180.8 Commercial Western U.S. 363.9 290.2 Residential, Hotel and Other Western U.S. 49.5 49.8 Commercial (1)(2) Ireland 422.5 331.5 Multifamily (1)(2) Ireland 142.6 131.3 Residential and Other (1)(2) Ireland 39.8 28.0 Hotel Ireland 82.3 75.7 Commercial (2) Spain 91.3 84.4 Commercial (1)(2) United Kingdom 621.5 616.9 Secured investment debt 2,944.8 2,788.6 Unsecured investment debt (1)(2) United Kingdom 1,275.4 1,192.4 Investment debt (excluding loan fees) $ 4,220.2 $ 3,981.0 Unamortized loan fees (27.4 ) (24.9 ) Total Investment debt $ 4,192.8 $ 3,956.1 (1) The investment debt payable balances include unamortized debt premiums (discounts). Debt premiums (discounts) represent the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan premium (discount) as of June 30, 2017 and December 31, 2016 was $0.1 million and $0.9 million , respectively. (2) Kennedy Wilson owned approximately 23.8% and 23.6% of the total issued share capital of KWE as of June 30, 2017 and December 31, 2016 , respectively. See the table below for a detailed breakout. (Dollars in millions) Carrying amount of investment debt as of (1) Types of Property Pledged as Collateral (KWE) Region June 30, December 31, Commercial (1)(2) Ireland 276.3 254.7 Commercial (1)(2) Spain 91.3 84.4 Commercial (1)(2) United Kingdom 552.4 551.4 Investment debt $ 920.0 $ 890.5 Unsecured (1)(2) United Kingdom 1,275.4 1,192.4 Investment debt (excluding loan fees) $ 2,195.4 $ 2,082.9 Unamortized loan fees (12.4 ) (13.3 ) Total Investment debt $ 2,183.0 $ 2,069.6 (1) The mortgage loan payable balances include unamortized debt premiums (discounts). Debt premiums (discounts) represent the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan discount as of June 30, 2017 and December 31, 2016 was $4.3 million and $4.1 million , respectively. (2) Kennedy Wilson owned approximately 23.80% and 23.6% of the total issued share capital of KWE as of June 30, 2017 and December 31, 2016 , respectively. June 30, 2017 December 31, 2016 (Dollars in millions) Unamortized Unamortized Interest Rate Maturity Date Face Value Net Premium/(Discount) Carrying Value Face Value Net Premium/(Discount) Carrying Value 2042 Notes 7.75% 12/1/2042 $ 55.0 $ — $ 55.0 $ 55.0 $ — $ 55.0 2024 Notes 5.88% 4/1/2024 900.0 (2.1 ) 897.9 900.0 (2.2 ) 897.8 Senior Notes $ 955.0 $ (2.1 ) $ 952.9 $ 955.0 $ (2.2 ) $ 952.8 Unamortized loan fees (15.3 ) (16.2 ) Total Senior Notes $ 937.6 $ 936.6 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Dividends Declared and Paid | During the following periods, Kennedy Wilson declared and paid the following cash distributions on its common and preferred stock: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (Dollars in millions) Declared Paid Declared Paid Preferred Stock Series B (1) — — 1.1 1.1 Total Preferred Stock — — 1.1 1.1 Common Stock 39.1 37.9 32.0 29.9 Total (2) $ 39.1 $ 37.9 $ 33.1 $ 31.0 (1) The decrease in Series B dividends during the current year is due to the early conversion of the Series B preferred stock into common shares during the fourth quarter of 2016. (2) The difference between declared and paid is the amount accrued on the consolidated balance sheets. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in each component of accumulated other comprehensive income (loss), net of taxes: Foreign Currency Translation Currency Derivative Contracts Marketable Securities Total Accumulated Other Comprehensive Income (Dollars in millions) Balance at December 31, 2016 $ (98.6 ) $ 27.5 $ (0.1 ) $ (71.2 ) Unrealized gains (losses), arising during the period 139.6 (41.8 ) 0.2 98.0 Noncontrolling interest (92.7 ) 19.4 — (73.3 ) Taxes on unrealized gains (losses), arising during the period (18.8 ) 9.0 (0.1 ) (9.9 ) Balance at June 30, 2017 $ (70.5 ) $ 14.1 $ — $ (56.4 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a summary of the elements used in calculating basic and diluted income (loss) per share for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except share and per share amounts) 2017 2016 2017 2016 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 9.4 $ (1.6 ) $ 10.2 $ (9.1 ) Dividends allocated to participating securities (0.2 ) (0.5 ) (0.5 ) (1.0 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities 9.2 (2.1 ) 9.7 (10.1 ) Dividends declared on common shares (19.3 ) (15.4 ) (38.6 ) (31.0 ) Undistributed losses attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities $ (10.1 ) $ (17.5 ) $ (28.9 ) $ (41.1 ) Distributed earnings per share $ 0.17 $ 0.14 $ 0.34 $ 0.28 Undistributed losses per share (0.09 ) (0.16 ) (0.25 ) (0.37 ) Income (loss) per basic 0.08 (0.02 ) 0.09 (0.09 ) Income (loss) per diluted $ 0.08 $ (0.02 ) $ 0.09 $ (0.09 ) Weighted average shares outstanding for basic 111,723,952 109,056,941 111,945,354 109,136,241 Weighted average shares outstanding for diluted (1) 111,723,952 109,056,941 111,945,354 109,136,241 Dividends declared per common share $ 0.17 $ 0.14 $ 0.34 $ 0.28 (1) For the three and six months ended June 30, 2017 , a total of 1,040,003 and 989,495 potentially dilutive securities have not been included in the diluted weight average shares as they are anti-dilutive. For the three and six months ended June 30, 2016 , a total of 3,388,573 and 3,332,013 potentially dilutive securities have not been included in the diluted weighted average shares as they are anti-dilutive. Potentially anti-dilutive securities include preferred stock and unvested restricted stock grants. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize income activity by segment and corporate for the three and six months ended June 30, 2017 and 2016 and balance sheet data as of June 30, 2017 and December 31, 2016 : Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Investments Rental $ 123.8 $ 120.3 $ 248.1 $ 240.2 Hotel 29.0 26.8 58.5 55.9 Sale of real estate 12.8 12.3 13.6 14.2 Loan purchases, loan originations and other 4.4 3.6 6.5 5.8 Total revenue 170.0 163.0 326.7 316.1 Operating expenses (95.4 ) (86.1 ) (173.7 ) (161.3 ) Depreciation and amortization (52.1 ) (48.9 ) (101.8 ) (97.3 ) Income from unconsolidated investments 12.6 7.2 34.2 25.3 Operating income 35.1 35.2 85.4 82.8 Gain on sale of real estate 66.3 16.1 71.7 54.5 Acquisition-related gains — 8.6 — 8.6 Acquisition-related expenses (0.9 ) (6.3 ) (1.2 ) (8.4 ) Interest expense-investments (35.5 ) (33.6 ) (69.9 ) (66.1 ) Other (0.3 ) 5.0 0.5 5.7 Income before provision for income taxes 64.7 25.0 86.5 77.1 Provision for income taxes (1.3 ) (3.2 ) (2.3 ) (4.2 ) Net income 63.4 21.8 84.2 72.9 Net (income) loss attributable to the noncontrolling interests (12.4 ) 1.2 (12.6 ) (26.2 ) Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 51.0 $ 23.0 $ 71.6 $ 46.7 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Investment Management and Real Estate Services Investment management, property services and research fees (includes $0.3, $6.5, $10.0, and $17.5 of related party fees) $ 7.7 $ 13.5 $ 25.2 $ 32.6 Total revenue 7.7 13.5 25.2 32.6 Operating expenses (13.1 ) (13.5 ) (26.4 ) (29.4 ) Income from unconsolidated investments 0.9 1.2 1.7 2.3 Operating (loss) income (4.5 ) 1.2 0.5 5.5 Net income attributable to the noncontrolling interests — — — — Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (4.5 ) $ 1.2 $ 0.5 $ 5.5 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Corporate Operating expenses $ (17.7 ) $ (20.1 ) $ (31.8 ) $ (43.5 ) Operating loss (17.7 ) (20.1 ) (31.8 ) (43.5 ) Interest expense-corporate (16.6 ) (12.2 ) (32.2 ) (24.3 ) Other 4.6 — 4.4 — Loss before provision for income taxes (29.7 ) (32.3 ) (59.6 ) (67.8 ) (Provision for) benefit from income taxes (7.4 ) 7.1 (2.3 ) 7.6 Net loss (37.1 ) (25.2 ) (61.9 ) (60.2 ) Preferred dividends and accretion of preferred stock issuance costs — (0.5 ) — (1.1 ) Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (37.1 ) $ (25.7 ) $ (61.9 ) $ (61.3 ) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2017 2016 2017 2016 Consolidated Rental $ 123.8 $ 120.3 $ 248.1 $ 240.2 Hotel 29.0 26.8 58.5 55.9 Sale of real estate 12.8 12.3 13.6 14.2 Investment management, property services and research fees (includes $0.3, $6.5, $10.0, and $17.5 of related party fees) 7.7 13.5 25.2 32.6 Loans and other 4.5 3.6 6.5 5.8 Total revenue 177.8 176.5 351.9 348.7 Operating expenses (126.2 ) (119.7 ) (231.9 ) (234.2 ) Depreciation and amortization (52.1 ) (48.9 ) (101.8 ) (97.3 ) Total operating expenses (178.3 ) (168.6 ) (333.7 ) (331.5 ) Income from unconsolidated investments 13.4 8.4 35.9 27.6 Operating income 12.9 16.3 54.1 44.8 Gain on sale of real estate 66.3 16.1 71.7 54.5 Acquisition-related gain — 8.6 — 8.6 Acquisition-related expenses (0.9 ) (6.3 ) (1.2 ) (8.4 ) Interest expense-investment (35.5 ) (33.6 ) (69.9 ) (66.1 ) Interest expense-corporate (16.6 ) (12.2 ) (32.2 ) (24.3 ) Other 4.4 5.0 4.9 5.7 Income before benefit from income taxes 30.6 (6.1 ) 27.4 14.8 Provision for income taxes (8.8 ) 3.9 (4.6 ) 3.4 Net income (loss) 21.8 (2.2 ) 22.8 18.2 Net (income) loss attributable to the noncontrolling interests (12.4 ) 1.1 (12.6 ) (26.2 ) Preferred dividends and accretion of preferred stock issuance costs — (0.5 ) — (1.1 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 9.4 $ (1.6 ) $ 10.2 $ (9.1 ) (Dollars in millions) June 30, 2017 December 31, 2016 Total Assets Investments $ 7,667.9 $ 7,375.5 Investment management and real estate services 101.3 78.1 Corporate 515.1 205.5 Total assets $ 8,284.3 $ 7,659.1 |
Guarantor and Non-Guarantor F36
Guarantor and Non-Guarantor Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET AS OF JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 410.4 $ 45.6 $ 113.2 $ — $ 569.2 Cash held by consolidated investments — — — 695.6 — 695.6 Accounts receivable — 0.1 47.9 45.4 — 93.4 Loan purchases and originations — 0.3 5.7 81.2 — 87.2 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,456.2 4,605.9 — 6,062.1 Unconsolidated investments — 19.5 314.4 165.1 — 499.0 Investments in and advances to consolidated subsidiaries 1,046.9 1,936.3 1,138.4 — (4,121.6 ) — Other assets — 1.9 44.1 231.8 — 277.8 Total assets $ 1,046.9 $ 2,368.5 $ 3,052.3 $ 5,938.2 $ (4,121.6 ) $ 8,284.3 Liabilities and equity Liabilities Accounts payable $ — $ 0.2 $ 1.6 $ 19.0 $ — $ 20.8 Accrued expenses and other liabilities 19.4 33.8 135.5 242.7 — 431.4 Investment debt — — 978.9 3,213.9 — 4,192.8 Senior notes payable — 937.6 — — — 937.6 Line of credit — 350.0 — — — 350.0 Total liabilities 19.4 1,321.6 1,116.0 3,475.6 — 5,932.6 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,027.5 1,046.9 1,936.3 1,138.4 (4,121.6 ) 1,027.5 Noncontrolling interests — — — 1,324.2 — 1,324.2 Total equity 1,027.5 1,046.9 1,936.3 2,462.6 (4,121.6 ) 2,351.7 Total liabilities and equity $ 1,046.9 $ 2,368.5 $ 3,052.3 $ 5,938.2 $ (4,121.6 ) $ 8,284.3 CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 106.0 $ 45.4 $ 108.8 $ — $ 260.2 Cash held by consolidated investments — — — 625.5 — 625.5 Accounts receivable — — 37.5 33.8 — 71.3 Loan purchases and originations — 0.3 12.1 75.3 — 87.7 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,482.5 4,331.7 — 5,814.2 Unconsolidated investments — 18.8 380.0 156.8 — 555.6 Investments in and advances to consolidated subsidiaries 1,063.8 2,073.2 1,171.6 — (4,308.6 ) — Other assets — 2.6 39.7 202.3 — 244.6 Total assets $ 1,063.8 $ 2,200.9 $ 3,168.8 $ 5,534.2 $ (4,308.6 ) $ 7,659.1 Liabilities Accounts payable $ — $ 0.5 $ 1.6 $ 9.1 $ — 11.2 Accrued expense and other liabilities 15.8 200.0 157.2 39.1 — 412.1 Senior notes payable — 936.6 — — — 936.6 Investment debt — — 936.8 3,019.3 — 3,956.1 Total liabilities 15.8 1,137.1 1,095.6 3,067.5 — 5,316.0 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,048.0 1,063.8 2,073.2 1,171.6 (4,308.6 ) 1,048.0 Noncontrolling interests — — — 1,295.1 — 1,295.1 Total equity 1,048.0 1,063.8 2,073.2 2,466.7 (4,308.6 ) 2,343.1 Total liabilities and equity $ 1,063.8 $ 2,200.9 $ 3,168.8 $ 5,534.2 $ (4,308.6 ) $ 7,659.1 |
Consolidating Statement of Operations | CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 35.2 $ 88.6 $ — $ 123.8 Hotel — — — 29.0 — 29.0 Sale of real estate — — — 12.8 — 12.8 Investment management, property services and research fees — — 5.6 2.1 — 7.7 Loan purchases, loan originations and other — — — 4.5 — 4.5 Total revenue — — 40.8 137.0 — 177.8 Operating expenses Rental operating — — 13.6 23.0 — 36.6 Hotel operating — — — 22.8 — 22.8 Cost of real estate sold — — — 9.6 — 9.6 Commission and marketing — — 1.7 — — 1.7 Compensation and related 9.4 20.6 13.6 1.9 — 45.5 General and administrative — 3.6 3.3 3.1 — 10.0 Depreciation and amortization — 0.3 12.0 39.8 — 52.1 Total operating expenses 9.4 24.5 44.2 100.2 — 178.3 Income from unconsolidated subsidiaries — 0.4 3.4 9.6 — 13.4 Income from consolidated subsidiaries 31.2 76.1 39.7 — (147.0 ) — Operating income (loss) 21.8 52.0 39.7 46.4 (147.0 ) 12.9 Non-operating income (expense) Acquisition-related expenses — (0.1 ) (0.7 ) (0.1 ) — (0.9 ) Interest expense-corporate — (16.6 ) — — — (16.6 ) Interest expense-investment — — (9.5 ) (26.0 ) — (35.5 ) Gain on sale of real estate — — 46.6 19.7 — 66.3 Other income / (expense) — 3.4 0.1 0.9 — 4.4 Income (loss) before benefit from income taxes 21.8 38.7 76.2 40.9 (147.0 ) 30.6 (Provision for) benefit from income taxes — (7.5 ) (0.1 ) (1.2 ) — (8.8 ) Net income (loss) 21.8 31.2 76.1 39.7 (147.0 ) 21.8 Net (income) loss attributable to the noncontrolling interests — — — (12.4 ) — (12.4 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. 21.8 31.2 76.1 27.3 (147.0 ) 9.4 Preferred dividends and accretion of preferred stock issuance costs — — — — — — Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 21.8 $ 31.2 $ 76.1 $ 27.3 $ (147.0 ) $ 9.4 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 68.3 $ 179.8 $ — $ 248.1 Hotel — — — 58.5 — 58.5 Sale of real estate — — — 13.6 — 13.6 Investment management, property services and research fees — — 21.1 4.1 — 25.2 Loan purchases, loan originations and other — — 0.3 6.2 — 6.5 Total revenue — — 89.7 262.2 — 351.9 Operating expenses Rental operating — — 26.8 45.8 — 72.6 Hotel operating — — — 47.2 — 47.2 Cost of real estate sold — — — 10.3 — 10.3 Commission and marketing — — 3.6 0.1 — 3.7 Compensation and related 20.1 27.8 26.3 4.0 — 78.2 General and administrative — 6.5 7.8 5.6 — 19.9 Depreciation and amortization — 0.7 23.6 77.5 — 101.8 Total operating expenses 20.1 35.0 88.1 190.5 — 333.7 Income from unconsolidated subsidiaries — 1.6 10.3 24.0 — 35.9 Income from consolidated subsidiaries 42.9 107.7 66.3 — (216.9 ) — Operating income (loss) 22.8 74.3 78.2 95.7 (216.9 ) 54.1 Non-operating income (expense) Acquisition-related expenses — (0.1 ) (0.7 ) (0.4 ) — (1.2 ) Interest expense-corporate — (32.2 ) — — — (32.2 ) Interest expense-investment — — (17.9 ) (52.0 ) — (69.9 ) Gain on sale of real estate — — 46.6 25.1 — 71.7 Other income / (expense) — 3.2 0.1 1.6 — 4.9 Income (loss) before benefit from income taxes 22.8 45.2 106.3 70.0 (216.9 ) 27.4 (Provision for) benefit from income taxes — (2.3 ) 1.4 (3.7 ) — (4.6 ) Net income (loss) 22.8 42.9 107.7 66.3 (216.9 ) 22.8 Net (income) loss attributable to the noncontrolling interests — — — (12.6 ) — (12.6 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. 22.8 42.9 107.7 53.7 (216.9 ) 10.2 Preferred dividends and accretion of preferred stock issuance costs — — — — — — Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 22.8 $ 42.9 $ 107.7 $ 53.7 $ (216.9 ) $ 10.2 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 26.3 $ 94.0 $ — $ 120.3 Hotel — — — 26.8 — 26.8 Sale of real estate — — 9.7 2.6 — 12.3 Investment management, property services, and research fees — — 12.9 0.6 — 13.5 Loan purchases, loan originations and other — — 0.3 3.3 — 3.6 Total revenue — — 49.2 127.3 — 176.5 Operating expenses Rental operating — — 12.2 20.6 — 32.8 Hotel operating — — — 23.6 — 23.6 Cost of real estate sold — — 7.2 2.0 — 9.2 Commission and marketing — — 1.5 0.3 — 1.8 Compensation and related 14.8 11.7 12.3 1.7 — 40.5 General and administrative — 3.6 3.9 4.3 — 11.8 Depreciation and amortization — 0.3 8.8 39.8 — 48.9 Total operating expenses 14.8 15.6 45.9 92.3 — 168.6 Income from unconsolidated investments, net of depreciation and amortization — 0.7 3.0 4.7 — 8.4 Income from consolidated subsidiaries 12.6 30.4 28.8 — (71.8 ) — Operating income (loss) (2.2 ) 15.5 35.1 39.7 (71.8 ) 16.3 Non-operating income (expense) Acquisition-related gains — — — 8.6 — 8.6 Acquisition-related expenses — — (1.1 ) (5.2 ) — (6.3 ) Interest expense-corporate — (12.2 ) — — — (12.2 ) Interest expense-investment — — (5.6 ) (28.0 ) — (33.6 ) Gain (loss) on sale of real estate — — — 16.1 — 16.1 Other income / (expense) — 6.0 (0.1 ) (0.9 ) — 5.0 Income (loss) before benefit from income taxes (2.2 ) 9.3 28.3 30.3 (71.8 ) (6.1 ) (Provision for) benefit from income taxes — 3.3 2.1 (1.5 ) — 3.9 Net income (loss) (2.2 ) 12.6 30.4 28.8 (71.8 ) (2.2 ) Net (income) loss attributable to the noncontrolling interests — — — 1.1 — 1.1 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. (2.2 ) 12.6 30.4 29.9 (71.8 ) (1.1 ) Preferred dividends and accretion of preferred stock issuance costs (0.5 ) — — — — (0.5 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (2.7 ) $ 12.6 $ 30.4 $ 29.9 $ (71.8 ) $ (1.6 ) CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Revenue Rental $ — $ — $ 51.2 $ 189.0 $ — $ 240.2 Hotel — — — 55.9 — 55.9 Sale of real estate — — 9.7 4.5 — 14.2 Investment management, property services, and research fees — — 31.1 1.5 — 32.6 Loan purchases, loan originations and other — — 0.6 5.2 — 5.8 Total revenue — — 92.6 256.1 — 348.7 Operating expenses Rental operating — — 22.1 41.7 — 63.8 Hotel operating — — — 48.1 — 48.1 Cost of real estate sold — — 7.2 3.4 — 10.6 Commission and marketing — — 3.2 0.3 — 3.5 Compensation and related 32.3 25.6 24.5 3.8 — 86.2 General and administrative — 7.0 7.7 7.3 — 22.0 Depreciation and amortization — 0.6 17.5 79.2 — 97.3 Total operating expenses 32.3 33.2 82.2 183.8 — 331.5 Income from unconsolidated investments, net of depreciation and amortization — 3.1 8.5 16.0 — 27.6 Income from consolidated subsidiaries 50.5 93.8 88.3 — (232.6 ) — Operating income (loss) 18.2 63.7 107.2 88.3 (232.6 ) 44.8 Non-operating income (expense) Acquisition-related gains — — — 8.6 — 8.6 Acquisition-related expenses — — (1.2 ) (7.2 ) — (8.4 ) Interest expense-corporate — (24.3 ) — — — (24.3 ) Interest expense-investment — — (11.0 ) (55.1 ) — (66.1 ) Gain (loss) on sale of real estate — — 0.4 54.1 — 54.5 Other income / (expense) — 7.3 (2.6 ) 1.0 — 5.7 Income (loss) before benefit from income taxes 18.2 46.7 92.8 89.7 (232.6 ) 14.8 (Provision for) benefit from income taxes — 3.8 1.0 (1.4 ) — 3.4 Net income (loss) 18.2 50.5 93.8 88.3 (232.6 ) 18.2 Net (income) loss attributable to the noncontrolling interests — — — (26.2 ) — (26.2 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. 18.2 50.5 93.8 62.1 (232.6 ) (8.0 ) Preferred dividends and accretion of preferred stock issuance costs (1.1 ) — — — — (1.1 ) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 17.1 $ 50.5 $ 93.8 $ 62.1 $ (232.6 ) $ (9.1 ) |
Consolidated Statement of Comprehensive Income | CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net (loss) income $ 21.8 $ 31.2 $ 76.1 $ 39.7 $ (147.0 ) $ 21.8 Other comprehensive (loss) income, net of tax: Unrealized foreign currency translation (loss) gain 99.6 99.6 14.6 92.9 (207.1 ) 99.6 Unrealized loss on marketable securities 0.1 0.1 — — (0.1 ) 0.1 Amounts reclassified out of AOCI during the period — — — — — — Unrealized currency derivative contracts gain (loss) (41.5 ) (41.5 ) (7.8 ) (33.7 ) 83.0 (41.5 ) Total other comprehensive (loss) income for the period $ 58.2 $ 58.2 $ 6.8 $ 59.2 $ (124.2 ) $ 58.2 Comprehensive (loss) income $ 80.0 $ 89.4 $ 82.9 $ 98.9 $ (271.2 ) $ 80.0 Comprehensive loss attributable to noncontrolling interests — — — (61.0 ) — (61.0 ) Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ 80.0 $ 89.4 $ 82.9 $ 37.9 $ (271.2 ) $ 19.0 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net (loss) income $ 22.8 $ 42.9 $ 107.7 $ 66.3 $ (216.9 ) $ 22.8 Other comprehensive (loss) income, net of tax: Unrealized foreign currency translation (loss) gain 120.8 120.8 18.5 112.2 (251.5 ) 120.8 Unrealized loss on marketable securities 0.1 0.1 — — (0.1 ) 0.1 Unrealized currency derivative contracts gain (loss) (32.8 ) (32.8 ) (9.8 ) (23.0 ) 65.6 (32.8 ) Total other comprehensive (loss) income for the period $ 88.1 $ 88.1 $ 8.7 $ 89.2 $ (186.0 ) $ 88.1 Comprehensive (loss) income $ 110.9 $ 131.0 $ 116.4 $ 155.5 $ (402.9 ) $ 110.9 Comprehensive loss attributable to noncontrolling interests — — — (85.9 ) — (85.9 ) Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ 110.9 $ 131.0 $ 116.4 $ 69.6 $ (402.9 ) $ 25.0 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net income (loss) $ (2.2 ) $ 12.6 $ 30.4 $ 28.8 $ (71.8 ) $ (2.2 ) Other comprehensive income (loss), net of tax: Unrealized foreign currency translation (loss) gains (82.8 ) (82.8 ) (10.9 ) (82.5 ) 176.2 (82.8 ) Amounts reclassified out of AOCI during the period 2.7 2.7 — 2.7 (5.4 ) 2.7 Unrealized currency derivative contracts (loss) gain (39.3 ) (39.3 ) 10.9 (50.2 ) 78.5 (39.4 ) Total other comprehensive income for the period $ (119.4 ) $ (119.4 ) $ — $ (130.0 ) $ 249.3 $ (119.5 ) Comprehensive (loss) income $ (121.6 ) $ (106.8 ) $ 30.4 $ (101.2 ) $ 177.5 $ (121.7 ) Comprehensive (income) loss attributable to noncontrolling interests — — — 110.6 — 110.6 Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ (121.6 ) $ (106.8 ) $ 30.4 $ 9.4 $ 177.5 $ (11.1 ) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Net income (loss) $ 18.2 $ 50.5 $ 93.8 $ 88.3 $ (232.6 ) $ 18.2 Other comprehensive income (loss), net of tax: Unrealized foreign currency translation (loss) gains (60.6 ) (60.6 ) (6.4 ) (64.2 ) 131.2 (60.6 ) Unrealized loss on marketable securities 0.1 0.1 — — (0.1 ) 0.1 Amounts reclassified out of AOCI during the period 2.7 2.7 — 2.7 (5.4 ) 2.7 Unrealized currency derivative contracts (loss) gain (89.4 ) (89.4 ) 10.4 (99.8 ) 178.8 (89.4 ) Total other comprehensive income for the period $ (147.2 ) $ (147.2 ) $ 4.0 $ (161.3 ) $ 304.5 $ (147.2 ) Comprehensive (loss) income $ (129.0 ) $ (96.7 ) $ 97.8 $ (73.0 ) $ 71.9 $ (129.0 ) Comprehensive (income) loss attributable to noncontrolling interests — — — 112.1 — 112.1 Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc. $ (129.0 ) $ (96.7 ) $ 97.8 $ 39.1 $ 71.9 $ (16.9 ) |
Condensed Consolidated Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidated Total Net cash (used in) provided by operating activities $ 2.3 $ (223.7 ) $ 19.1 $ 270.5 $ 68.2 Cash flows from investing activities: Additions to loans — — — — — Collections of loans — — 6.4 — 6.4 Net proceeds from sale of real estate — — 108.4 134.6 243.0 Purchases of and additions to real estate — — (166.8 ) (118.1 ) (284.9 ) Proceeds from settlement of foreign derivative contracts — 3.0 — — 3.0 Purchases of foreign derivative contracts — (0.5 ) — — (0.5 ) Investment in marketable securities — — (0.4 ) — (0.4 ) Proceeds from sale of marketable securities — — 0.2 — 0.2 Distributions from unconsolidated investments — — 53.6 15.4 69.0 Contributions to unconsolidated investments — — (30.2 ) (6.5 ) (36.7 ) (Investments in) distributions from consolidated subsidiaries, net 76.7 175.7 (32.8 ) (219.6 ) — Net cash provided by investing activities 76.7 178.2 (61.6 ) (194.2 ) (0.9 ) Cash flows from financing activities: Borrowings under line of credit — 400.0 — — 400.0 Repayment of line of credit — (50.0 ) — — (50.0 ) Borrowings under investment debt — — 77.0 89.8 166.8 Repayment of investment debt — — (34.4 ) (66.2 ) (100.6 ) Debt issue costs — (0.1 ) — — (0.1 ) Costs associated with KWE transaction (5.5 ) — — — (5.5 ) Repurchase and retirement of common stock (35.6 ) — — — (35.6 ) Dividends paid (37.9 ) — — — (37.9 ) Acquisition of KWE shares from noncontrolling interest holders — — — (3.3 ) (3.3 ) Contributions from noncontrolling interests, excluding KWE — — — 22.7 22.7 Distributions to noncontrolling interests — — — (76.2 ) (76.2 ) Net cash (used in) provided by financing activities (79.0 ) 349.9 42.6 (33.2 ) 280.3 Effect of currency exchange rate changes on cash and cash equivalents — — — 31.5 31.5 Net change in cash and cash equivalents — 304.4 0.1 74.6 379.1 Cash and cash equivalents, beginning of period — 106.0 45.4 734.3 885.7 Cash and cash equivalents, end of period $ — $ 410.4 $ 45.5 $ 808.9 $ 1,264.8 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidated Total Net cash provided (used in) by operating activities $ (0.2 ) $ (138.3 ) $ 56.3 $ 92.7 $ 10.5 Cash flows from investing activities: Additions to loans — (0.8 ) (4.5 ) — (5.3 ) Collections of loans — — 4.9 133.9 138.8 Net proceeds from sale of real estate — — 3.4 180.0 183.4 Purchases of and additions to real estate — — (51.5 ) (396.0 ) (447.5 ) Proceeds from settlement of foreign derivative contracts — 25.7 — — 25.7 Purchases of foreign derivative contracts — (3.4 ) — — (3.4 ) Investment in marketable securities — — (0.7 ) — (0.7 ) Distributions from unconsolidated investments — — 13.5 21.7 35.2 Contributions to unconsolidated investments — (1.0 ) (32.7 ) (11.9 ) (45.6 ) (Investments in) distributions from consolidated subsidiaries, net 74.0 8.9 (44.4 ) (38.5 ) — Net cash (used in) provided by investing activities 74.0 29.4 (112.0 ) (110.8 ) (119.4 ) Cash flows from financing activities: Borrowings under line of credit — 100.0 — — 100.0 Borrowings under investment debt — — 66.4 410.1 476.5 Repayment of investment debt — — (18.4 ) (79.1 ) (97.5 ) Debt issue costs — (0.2 ) (0.6 ) (2.9 ) (3.7 ) Repurchase and retirement of common stock (42.8 ) — — — (42.8 ) Dividends paid (31.0 ) — — — (31.0 ) Acquisition of KWE shares from noncontrolling interest holders — — — (67.9 ) (67.9 ) Contributions from noncontrolling interests, excluding KWE — — — 12.9 12.9 Distributions to noncontrolling interests — — — (73.5 ) (73.5 ) Net cash provided by (used in) financing activities (73.8 ) 99.8 47.4 199.6 273.0 Effect of currency exchange rate changes on cash and cash equivalents — — — (39.7 ) (39.7 ) Net change in cash and cash equivalents — (9.1 ) (8.3 ) 141.8 124.4 Cash and cash equivalents, beginning of period — 80.2 37.0 614.4 731.6 Cash and cash equivalents, end of period $ — $ 71.1 $ 28.7 $ 756.2 $ 856.0 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ / shares in Units, $ in Millions | Jun. 13, 2017£ / sharesshares | Jun. 09, 2017USD ($) | Jun. 30, 2017USD ($)property$ / shares | Jun. 30, 2016USD ($) | Dec. 31, 2017$ / shares | Apr. 24, 2017shares | Dec. 31, 2016USD ($) | |
Noncontrolling Interest [Line Items] | ||||||||
Assets | [1] | $ 8,284.3 | $ 7,659.1 | |||||
Borrowings under line of credit | $ 400 | $ 100 | ||||||
Dividends payable (per share) | $ / shares | $ 0.17 | |||||||
Forecast [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Dividends payable (per share) | $ / shares | $ 0.19 | |||||||
Unsecured Debt [Member] | Revolving Credit Facility [Member] | KW Revolving Facility [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Borrowings under line of credit | $ 350 | $ 400 | ||||||
KWE [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Cash consideration (per share) | £ / shares | £ 2.50 | |||||||
Properties, Loans and Servicing Platform in Europe [Member] | Europe [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Assets | $ 934.2 | |||||||
KWE [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Ownership percentage by parent | 75.00% | 23.80% | 64.00% | 23.60% | ||||
Shares issued per outstanding share | shares | 0.3854 | 0.667 | ||||||
Cash consideration to shareholders (per share) | £ / shares | £ 3 | |||||||
Ownership percentage by noncontrolling owners | 25.00% | 36.00% | ||||||
Escrow deposit | $ 18 | |||||||
Properties, Loans and Servicing Platform in Europe [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Number of real estate investment properties in Europe | property | 17 | |||||||
Properties, Loans and Servicing Platform in Europe [Member] | Europe [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Ownership percentage by parent | 65.00% | |||||||
Equity in consolidated investments | $ 264.2 | |||||||
Equity Securities [Member] | KWE [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Investment, gross cash basis | $ 492.6 | |||||||
[1] | The assets and liabilities as of June 30, 2017 include $4.8 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.8 billion) and $2.9 billion (including investment debt of $2.6 billion), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2016 include $4.5 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.6 billion) and $2.7 billion (including investment debt of $2.4 billion), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Summary of Significant Accoun38
Summary of Significant Accounting Polices and Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | 114 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Negative fund performance that would cause reversal of performance fees | $ 31.1 | |||
Accrued performance fees | 3.8 | $ 9.1 | ||
Noncontrolling interests | 1,324.2 | $ 1,295.1 | ||
Cumulative effect of ASU 2016-09 adoption | [1] | 9.3 | ||
Retained Earnings (Accumulated Deficit) [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Cumulative effect of ASU 2016-09 adoption | [1] | 9.3 | ||
Accounting Standards Update 2016-09 [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Increase in deferred tax asset | 9.3 | |||
Accounting Standards Update 2016-09 [Member] | Retained Earnings (Accumulated Deficit) [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Cumulative effect of ASU 2016-09 adoption | 9.3 | 9.3 | ||
KWE [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Noncontrolling interests | $ 1,100 | $ 1,300 | ||
[1] | See Note 2 for further discussion. |
Loan Purchases and Originatio39
Loan Purchases and Originations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||
Loan purchases and originations | $ 87.2 | $ 87.2 | $ 87.7 | |||
Interest income on loans | 4.5 | $ 3.6 | 6.5 | $ 5.8 | ||
Office Property in San Diego, California [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from collection of loans receivable | $ 6.4 | |||||
Notes Receivable [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Loan purchases and originations | $ 87.2 | $ 87.2 | $ 87.7 |
Real Estate and In-Place Leas40
Real Estate and In-Place Lease Value - Schedule of Investments in Consolidated Properties (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Real Estate [Abstract] | ||
Land | $ 1,429.3 | $ 1,383.2 |
Buildings | 4,228.4 | 4,048.7 |
Building improvements | 461.4 | 373.5 |
In-place lease values | 409 | 383.1 |
Real estate, gross | 6,528.1 | 6,188.5 |
Less accumulated depreciation and amortization | (466) | (374.3) |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | $ 6,062.1 | $ 5,814.2 |
Real Estate and In-Place Leas41
Real Estate and In-Place Lease Value - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Business Acquisition [Line Items] | |
Guarantor obligations, maximum exposure, percentage of property level debt | 1.00% |
Performance Guarantee [Member] | Loans Payable [Member] | |
Business Acquisition [Line Items] | |
Guarantor obligations, maximum exposure | $ 50.9 |
Leases, Acquired-in-Place [Member] | |
Business Acquisition [Line Items] | |
Acquired in-place lease estimated useful life | 8 years 2 months 12 days |
Building and Building Improvements [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Buildings and building improvements estimated lives | 40 years |
Real Estate and In-Place Leas42
Real Estate and In-Place Lease Value - Schedule of Acquisitions (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)property | |
Business Acquisition [Line Items] | |
Land | $ 32.9 |
Building | 115.3 |
Acquired in place lease values | 16.4 |
Investment debt | 77 |
NCI | 0.2 |
KWH Shareholders' Equity | 79.8 |
Retail Centers and Commercial Property Acquired in the Western U.S. [Member] | |
Business Acquisition [Line Items] | |
Land | 32.9 |
Building | 115.3 |
Acquired in place lease values | 16.4 |
Investment debt | 77 |
NCI | 0.2 |
KWH Shareholders' Equity | $ 79.8 |
Retail [Member] | Retail Centers and Commercial Property Acquired in the Western U.S. [Member] | |
Business Acquisition [Line Items] | |
Number of properties acquired | property | 1 |
Commercial [Member] | Retail Centers and Commercial Property Acquired in the Western U.S. [Member] | |
Business Acquisition [Line Items] | |
Number of properties acquired | property | 1 |
Real Estate and In-Place Leas43
Real Estate and In-Place Lease Value - Schedule of Gains on Real Estate (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($)property | Jun. 30, 2016USD ($) | |
Gain on sale of real estate | ||
Consolidated | $ 75 | $ 58.1 |
NCI | 15.7 | |
Net of NCI | 59.3 | |
KW [Member] | ||
Gain on sale of real estate | ||
Consolidated | 62.1 | |
NCI | 5.8 | |
Net of NCI | 56.3 | |
KWE [Member] | ||
Gain on sale of real estate | ||
Consolidated | 12.9 | |
NCI | 9.9 | |
Net of NCI | $ 3 | |
Multifamily [Member] | KW [Member] | Western U.S. [Member] | ||
Gain on sale of real estate | ||
Number of real estate properties sold | property | 2 | |
Retail Site [Member] | KW [Member] | Western U.S. [Member] | ||
Gain on sale of real estate | ||
Number of real estate properties sold | property | 1 | |
Commercial Development Property [Member] | KW [Member] | Ireland [Member] | ||
Gain on sale of real estate | ||
Number of real estate properties sold | property | 1 | |
Residential Property [Member] | KW [Member] | United Kingdom [Member] | ||
Gain on sale of real estate | ||
Number of real estate properties sold | property | 1 | |
Commercial [Member] | KWE [Member] | United Kingdom [Member] | ||
Gain on sale of real estate | ||
Number of real estate properties sold | property | 15 | |
Condominium Unit [Member] | KW [Member] | Spain [Member] | ||
Gain on sale of real estate | ||
Number of real estate properties sold | property | 2 |
Real Estate and In-Place Leas44
Real Estate and In-Place Lease Value - Schedule of Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Real Estate [Abstract] | ||||
Pro forma revenues | $ 178.6 | $ 180.7 | $ 354.2 | $ 356.6 |
Pro forma net income | 22.4 | 1.2 | 24.1 | 24.8 |
Pro forma net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ 9.9 | $ 1.8 | $ 11.6 | $ (2.5) |
Pro forma net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.09 | $ 0.02 | $ 0.10 | $ (0.02) |
Diluted (in dollars per share) | $ 0.09 | $ 0.02 | $ 0.10 | $ (0.02) |
Unconsolidated Investments - Na
Unconsolidated Investments - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)joint_venturepropertylimited_partnership | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Payments to acquire equity method investments | $ 36,700,000 | $ 45,600,000 | |||
Equity method investment distribution received | 57,300,000 | ||||
Payments to acquire new equity method investments | 11,500,000 | ||||
Contributions to existing joint ventures | 25,200,000 | ||||
Proceeds from equity method investments | $ 126,300,000 | ||||
Number of joint ventures with unfulfilled capital commitments | joint_venture | 4 | ||||
Multifamily [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of properties acquired | property | 4 | ||||
Number of real estate properties sold | property | 1 | ||||
Equity method investment distribution received | $ 15,000,000 | ||||
Commercial [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of real estate properties sold | property | 2 | ||||
Equity method investment distribution received | $ 26,600,000 | ||||
Equity Method Investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Unfunded capital commitments | $ 70,000,000 | $ 70,000,000 | |||
Vintage Housing Holdings [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of syndicated limited partnerships (over) | limited_partnership | 30 | ||||
Equity method investments | 95,500,000 | $ 95,500,000 | $ 84,200,000 | ||
Gain on fair value through equity income | 0 | $ 3,800,000 | 12,400,000 | 13,300,000 | |
Equity method investment distribution received | 1,500,000 | $ 1,500,000 | 3,200,000 | $ 3,100,000 | |
Kennedy Wilson Real Estate Fund VI, LP [Member] | Equity Method Investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Unfunded capital commitments | $ 50,000,000 | $ 50,000,000 | |||
Minimum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 5.00% | 5.00% | |||
Maximum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% |
Unconsolidated Investments - Sc
Unconsolidated Investments - Schedule of Joint Ventures (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | $ 499.1 | $ 555.6 |
Western U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 464.1 | 519.8 |
United Kingdom [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 11.1 | 13.8 |
Spain [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 17.5 | 15.9 |
Japan [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 6.4 | 6.1 |
Multifamily [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 210.5 | 199 |
Multifamily [Member] | Western U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 204.1 | 192.9 |
Multifamily [Member] | United Kingdom [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Multifamily [Member] | Spain [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Multifamily [Member] | Japan [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 6.4 | 6.1 |
Commercial [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 69.8 | 79.1 |
Commercial [Member] | Western U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 58.7 | 65.3 |
Commercial [Member] | United Kingdom [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 11.1 | 13.8 |
Commercial [Member] | Spain [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Commercial [Member] | Japan [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Residential and Other [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 218.8 | 277.5 |
Residential and Other [Member] | Western U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 201.3 | 261.6 |
Residential and Other [Member] | United Kingdom [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Residential and Other [Member] | Spain [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 17.5 | 15.9 |
Residential and Other [Member] | Japan [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | $ 0 | $ 0 |
Unconsolidated Investments - Ca
Unconsolidated Investments - Cash Distributions by Investment Type and Location (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Operating | $ 57.3 | |
Investing | 69 | $ 35.2 |
Multifamily [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 15 | |
Investing | 8.6 | |
Commercial [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 26.6 | |
Investing | 16.1 | |
Residential and Other [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 15.7 | |
Investing | 44.3 | |
Western U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 55 | |
Investing | 69 | |
Western U.S. [Member] | Multifamily [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 15 | |
Investing | 8.6 | |
Western U.S. [Member] | Commercial [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 24.3 | |
Investing | 16.1 | |
Western U.S. [Member] | Residential and Other [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 15.7 | |
Investing | 44.3 | |
United Kingdom [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 2.3 | |
Investing | 0 | |
United Kingdom [Member] | Multifamily [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
United Kingdom [Member] | Commercial [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 2.3 | |
Investing | 0 | |
United Kingdom [Member] | Residential and Other [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | $ 0 |
Fair Value Measurements and t48
Fair Value Measurements and the Fair Value Option - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | $ 330.8 | $ 329.4 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 330.8 | 329.4 |
Marketable securities | 7.9 | 7.5 |
Total | 253.2 | 289.7 |
Recurring [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency derivative contracts | (85.5) | (47.2) |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 0 | 0 |
Marketable securities | 7.9 | 7.5 |
Total | 7.9 | 7.5 |
Recurring [Member] | Level 1 [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency derivative contracts | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 0 | 0 |
Marketable securities | 0 | 0 |
Total | (85.5) | (47.2) |
Recurring [Member] | Level 2 [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency derivative contracts | (85.5) | (47.2) |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 330.8 | 329.4 |
Marketable securities | 0 | 0 |
Total | 330.8 | 329.4 |
Recurring [Member] | Level 3 [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency derivative contracts | $ 0 | $ 0 |
Fair Value Measurements and t49
Fair Value Measurements and the Fair Value Option - Unconsolidated Investments, Narrative (Details) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($)investment | Dec. 31, 2016USD ($) | |
Equity Method Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value option | $ 282.6 | $ 282.4 |
Funds | 48.2 | $ 47 |
Unfunded capital commitments | 70 | |
Recurring [Member] | Level 3 [Member] | Real Estate Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded capital commitments | $ 16.2 | |
Funds [Member] | Equity Method Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Number of unconsolidated investments with fair value option election | investment | 17 |
Fair Value Measurements and t50
Fair Value Measurements and the Fair Value Option - Unconsolidated Investments (Details) - Equity Method Investments [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
FV Option | $ 282.6 | $ 282.4 |
Funds | 48.2 | 47 |
Total | $ 330.8 | $ 329.4 |
Fair Value Measurements and t51
Fair Value Measurements and the Fair Value Option - Schedule of Changes in Level 3 Investments (Details) - Equity Method Investments [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 375.8 | $ 234.8 | $ 329.4 | $ 223.8 |
Unrealized and realized gains | 5.7 | 9 | 27.8 | 26.6 |
Unrealized and realized losses | (0.1) | 0 | (1) | 0 |
Contributions | 5 | 4.3 | 25.2 | 20.1 |
Distributions | (55.2) | (12) | (74.5) | (34.9) |
Other | (0.4) | 0.5 | 23.9 | 1 |
Ending balance | $ 330.8 | $ 236.6 | $ 330.8 | $ 236.6 |
Fair Value Measurements and t52
Fair Value Measurements and the Fair Value Option - Schedule of Significant Inputs (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Entity credit risk percentage | 1.53% |
Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Entity credit risk percentage | 3.46% |
Office [Member] | Minimum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Capitalization Rates | 4.75% |
Discount Rates | 7.25% |
Office [Member] | Maximum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Capitalization Rates | 8.60% |
Discount Rates | 9.75% |
Retail [Member] | Minimum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Capitalization Rates | 5.50% |
Discount Rates | 7.25% |
Retail [Member] | Maximum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Capitalization Rates | 9.00% |
Discount Rates | 11.00% |
Multifamily [Member] | Minimum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Capitalization Rates | 4.75% |
Discount Rates | 8.00% |
Multifamily [Member] | Maximum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Capitalization Rates | 7.75% |
Discount Rates | 9.75% |
Land and condominium units [Member] | Minimum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount Rates | 8.00% |
Land and condominium units [Member] | Maximum [Member] | Income and Market Approach Technique [Member] | Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount Rates | 15.00% |
Fair Value Measurements and t53
Fair Value Measurements and the Fair Value Option - Marketable Securities, Narrative (Details) $ / shares in Units, £ in Millions, shares in Millions, $ in Millions | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2017GBP (£)shares | Dec. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in and advances to consolidated subsidiaries | $ 0 | $ 0 | |
KWE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Shares in KWE (in shares) | shares | 30 | 30 | |
Share price (in dollars per share) | $ / shares | $ 14.46 | ||
KWE [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in and advances to consolidated subsidiaries | $ 434 | ||
Investment cost basis | $ 454.9 | ||
Foreign Exchange Contract [Member] | KWE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount | £ | £ 356 |
Fair Value Measurements and t54
Fair Value Measurements and the Fair Value Option - Derivatives Financial Instruments (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£) | Jun. 30, 2017JPY (¥) | Jun. 30, 2017EUR (€) | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||||
Hedge Asset | $ 7.2 | $ 7.5 | |||
Foreign Exchange Contract, One [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 130 | ||||
Foreign Exchange Contract, Four [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | £ | £ 356 | ||||
Foreign Exchange Contract, Five [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | £ | £ 259.7 | ||||
Foreign Exchange Contract, Six [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | ¥ | ¥ 757 | ||||
KWE [Member] | Foreign Exchange Contract, Two [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 360 | ||||
Level 2 [Member] | Foreign Exchange Contract, One [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0.3 | ||||
Hedge Liability | (2.8) | ||||
Change in Unrealized Gains (Losses) | (6.2) | ||||
Realized Gains (Losses) | 0 | ||||
Cash Received (Paid) | |||||
Cash Paid | 0 | ||||
Level 2 [Member] | Foreign Exchange Contract, Four [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 6.7 | ||||
Hedge Liability | (3) | ||||
Change in Unrealized Gains (Losses) | (10.2) | ||||
Realized Gains (Losses) | 0 | ||||
Cash Received (Paid) | |||||
Cash Paid | (0.5) | ||||
Level 2 [Member] | Foreign Exchange Contract, Five [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0 | ||||
Hedge Liability | (6.8) | ||||
Change in Unrealized Gains (Losses) | 0 | ||||
Realized Gains (Losses) | (6.8) | ||||
Cash Received (Paid) | |||||
Cash Paid | 0 | ||||
Level 2 [Member] | Foreign Exchange Contract, Six [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0.2 | ||||
Hedge Liability | (0.3) | ||||
Change in Unrealized Gains (Losses) | (0.1) | ||||
Realized Gains (Losses) | 0 | ||||
Cash Received (Paid) | |||||
Cash Paid | 0 | ||||
Level 2 [Member] | Derivatives Outstanding [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 7.2 | ||||
Hedge Liability | (92.7) | ||||
Change in Unrealized Gains (Losses) | (42) | ||||
Realized Gains (Losses) | (6.8) | ||||
Cash Received (Paid) | |||||
Cash Paid | (0.5) | ||||
Level 2 [Member] | Foreign Exchange Contract, Seven [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0 | ||||
Hedge Liability | 0 | ||||
Change in Unrealized Gains (Losses) | 0.2 | ||||
Realized Gains (Losses) | 0.2 | ||||
Cash Received (Paid) | |||||
Cash Received | 3 | ||||
Level 2 [Member] | Derivative Settled [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0 | ||||
Hedge Liability | 0 | ||||
Change in Unrealized Gains (Losses) | 0.2 | ||||
Realized Gains (Losses) | 0.2 | ||||
Cash Received (Paid) | |||||
Cash Received | 3 | ||||
Level 2 [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 7.2 | ||||
Hedge Liability | (92.7) | ||||
Change in Unrealized Gains (Losses) | (41.8) | ||||
Realized Gains (Losses) | (6.6) | ||||
Cash Received (Paid) | |||||
Total | 2.5 | ||||
Level 2 [Member] | Noncontrolling Interest [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0 | ||||
Hedge Liability | 60.8 | ||||
Change in Unrealized Gains (Losses) | 19.4 | ||||
Realized Gains (Losses) | 0 | ||||
Cash Received (Paid) | |||||
Total | 0 | ||||
Level 2 [Member] | Net of NCI [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 7.2 | ||||
Hedge Liability | (31.9) | ||||
Change in Unrealized Gains (Losses) | (22.4) | ||||
Realized Gains (Losses) | (6.6) | ||||
Cash Received (Paid) | |||||
Total | 2.5 | ||||
Level 2 [Member] | KWE [Member] | Foreign Exchange Contract, Two [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0 | ||||
Hedge Liability | (79.8) | ||||
Change in Unrealized Gains (Losses) | (11) | ||||
Realized Gains (Losses) | 0 | ||||
Cash Received (Paid) | |||||
Cash Paid | 0 | ||||
Level 2 [Member] | KWE [Member] | Foreign Exchange Contract, Three [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Hedge Asset | 0 | ||||
Hedge Liability | 0 | ||||
Change in Unrealized Gains (Losses) | (14.5) | ||||
Realized Gains (Losses) | 0 | ||||
Cash Received (Paid) | |||||
Cash Paid | $ 0 |
Fair Value Measurements and t55
Fair Value Measurements and the Fair Value Option - Fair Value of Financial Instruments, Narrative (Details) - USD ($) $ in Billions | Jun. 30, 2017 | Dec. 31, 2016 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt fair value | $ 5.5 | $ 4.9 |
Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt fair value | $ 5.5 | $ 5 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Development project asset | $ 34.1 | $ 0 |
Deferred tax asset, net | 28.4 | 28.4 |
VAT receivable | 27 | 23.2 |
Goodwill | 23.9 | 23.9 |
Other, net of accumulated amortization of $6.8 and $5.4 at June 30, 2017 and December 31, 2016, respectively | 23.8 | 19.9 |
Straight line rent | 18.6 | 11.7 |
Prepaid expenses | 12.9 | 10.2 |
Marketable securities | 7.9 | 20.2 |
Hedge assets | 7.2 | 7.5 |
Deposits | 1.8 | 1.8 |
Other Assets | 277.8 | 244.6 |
Accumulated amortization, other | 6.8 | 5.4 |
Investments in and advances to consolidated subsidiaries | $ 0 | 0 |
KWE [Member] | ||
Other Assets [Abstract] | ||
Shares in KWE (in shares) | 30 | |
Share price (in dollars per share) | $ 14.46 | |
KWE [Member] | Equity Securities [Member] | ||
Other Assets [Abstract] | ||
Investments in and advances to consolidated subsidiaries | $ 434 | |
Investment cost basis | 454.9 | |
Furniture and Fixtures [Member] | ||
Other Assets [Abstract] | ||
Office furniture and equipment net of accumulated depreciation of $30.9 and $24.4 at June 30, 2017 and December 31, 2016, respectively | 23.5 | 25.4 |
Accumulated amortization, office furniture and equipment | 30.9 | 24.4 |
Above Market Leases [Member] | ||
Other Assets [Abstract] | ||
Above-market leases, net of accumulated amortization of $37.1 and $28.1 at June 30, 2017 and December 31, 2016, respectively | 68.7 | 72.4 |
Accumulated amortization, above-market leases | $ 37.1 | $ 28.1 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) ft² in Thousands, $ in Millions | May 12, 2017ft² | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Real Estate [Line Items] | |||||
Sale of real estate | $ 12.8 | $ 12.3 | $ 13.6 | $ 14.2 | |
Cost of real estate sold | 9.6 | $ 9.2 | $ 10.3 | $ 10.6 | |
Office Building [Member] | Ireland [Member] | |||||
Real Estate [Line Items] | |||||
Square feet of property sold | ft² | 130 | ||||
Sale of real estate | 11.8 | ||||
Cost of real estate sold | $ 8.9 |
Investment Debt - Mortgage Loan
Investment Debt - Mortgage Loans (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 13, 2017 | Apr. 24, 2017 | Dec. 31, 2016 |
KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage by parent | 23.80% | 75.00% | 64.00% | 23.60% |
KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized premium (discount) | $ 4.3 | $ 4.1 | ||
Investment Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 4,220.2 | 3,981 | ||
Unamortized loan fees | (27.4) | (24.9) | ||
Total debt | 4,192.8 | 3,956.1 | ||
Investment Debt [Member] | KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 2,195.4 | 2,082.9 | ||
Unamortized loan fees | (12.4) | (13.3) | ||
Total debt | 2,183 | 2,069.6 | ||
Secured Investment Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 2,944.8 | 2,788.6 | ||
Unamortized premium (discount) | (0.1) | (0.9) | ||
Secured Investment Debt [Member] | KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 920 | 890.5 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Multi-Family Properties [Member] | Western U.S. [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 1,131.4 | 1,180.8 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Multi-Family Properties [Member] | Ireland [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 142.6 | 131.3 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Commercial Properties [Member] | Western U.S. [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 363.9 | 290.2 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Commercial Properties [Member] | Ireland [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 422.5 | 331.5 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Commercial Properties [Member] | Ireland [Member] | KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 276.3 | 254.7 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Commercial Properties [Member] | Spain [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 91.3 | 84.4 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Commercial Properties [Member] | Spain [Member] | KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 91.3 | 84.4 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Commercial Properties [Member] | United Kingdom [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 621.5 | 616.9 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Commercial Properties [Member] | United Kingdom [Member] | KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 552.4 | 551.4 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Residential, Hotel and Other [Member] | Western U.S. [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 49.5 | 49.8 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Residential and Other [Member] | Ireland [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 39.8 | 28 | ||
Secured Investment Debt [Member] | Mortgage Loans Secured by Hotel [Member] | Ireland [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 82.3 | 75.7 | ||
Unsecured Debt [Member] | Mortgage Loans, Unsecured [Member] | United Kingdom [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | 1,275.4 | 1,192.4 | ||
Unsecured Debt [Member] | Mortgage Loans, Unsecured [Member] | United Kingdom [Member] | KWE [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment debt (excluding loan fees) | $ 1,275.4 | $ 1,192.4 |
Investment Debt - Narrative (De
Investment Debt - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||||
Aug. 31, 2014USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)investmentacquisition | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Jun. 30, 2017GBP (£) | Dec. 31, 2016 | Sep. 30, 2016GBP (£) | Dec. 31, 2015USD ($) | Dec. 31, 2015GBP (£) | Jun. 30, 2015USD ($) | Jun. 30, 2015GBP (£) | Aug. 31, 2014GBP (£) | |
Debt Instrument [Line Items] | ||||||||||||||||
Unrealized foreign currency translation gain (loss) | $ 99.6 | $ (82.8) | $ 120.8 | $ (60.6) | ||||||||||||
Number of investments partially financed with mortgages | investment | 1 | |||||||||||||||
Number of Acquisitions Partially Financed with Mortgages | acquisition | 1 | |||||||||||||||
Number of Properties That Acquired Supplemental Financing | investment | 1 | |||||||||||||||
Euro Member Countries, Euro [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Unrealized foreign currency translation gain (loss) | $ (14.5) | |||||||||||||||
Secured Investment Debt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Weighted-average interest rate of investment debt | 3.37% | 3.37% | 3.37% | 3.33% | ||||||||||||
Percent of property level debt with fixed rate | 68.00% | 68.00% | 68.00% | 75.00% | ||||||||||||
Percent of property level debt with floating rate and interest caps | 14.00% | 14.00% | 14.00% | 15.00% | ||||||||||||
Percent of property level debt with floating rate, without interest caps | 18.00% | 18.00% | 18.00% | 10.00% | ||||||||||||
Secured Investment Debt [Member] | KWE [Member] | Revolving Credit Facility [Member] | KWE Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument term | 3 years | |||||||||||||||
Maximum borrowing capacity | $ 293.1 | £ 225,000,000 | ||||||||||||||
Remaining borrowing capacity | $ 293.1 | $ 293.1 | £ 225,000,000 | |||||||||||||
Secured Investment Debt [Member] | KWE [Member] | United Kingdom [Member] | Mortgage Loans, Unsecured [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt face value | $ 260.5 | £ 200,000,000 | $ 390.8 | £ 300,000,000 | ||||||||||||
Stated interest rate | 3.95% | 3.95% | 3.95% | 3.95% | ||||||||||||
Effective interest rate | 3.35% | 3.35% | ||||||||||||||
Percentage of proceeds converted to Euros with swaps | 50.00% | |||||||||||||||
Maximum percentage of total assets | 60.00% | 60.00% | 60.00% | |||||||||||||
Maximum ratio of consolidated secured indebtedness to total assets | 50.00% | 50.00% | 50.00% | |||||||||||||
Interest coverage ratio | 1.50 | 1.50 | 1.50 | |||||||||||||
Maximum ratio of unencumbered assets to unsecured indebtedness | 125.00% | 125.00% | 125.00% | |||||||||||||
Secured Investment Debt [Member] | KWE [Member] | United Kingdom [Member] | Euro Medium Term Note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt face value | $ 2,600 | £ 2,000,000,000 | ||||||||||||||
Proceeds from issuance of debt | $ 628.4 | € 550,000,000 | ||||||||||||||
Long-term debt | $ 624.3 | $ 624.3 | $ 624.3 | |||||||||||||
Annual fixed coupon rate | 3.25% | 3.25% | 3.25% |
Investment Debt - Schedule of M
Investment Debt - Schedule of Maturities (Details) - Investment Debt [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,017 | $ 64.7 | |
2,018 | 168.3 | |
2,019 | 617.6 | |
2,020 | 256.5 | |
2,021 | 103 | |
Thereafter | 3,010 | |
Long-term debt, gross | 4,220.1 | |
Debt premium | 0.1 | |
Unamortized loan fees | (27.4) | $ (24.9) |
Total debt | $ 4,192.8 | $ 3,956.1 |
Senior Notes - Schedule of Seni
Senior Notes - Schedule of Senior Notes (Details) - Senior Notes [Member] - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Aug. 31, 2016 |
Debt Instrument [Line Items] | |||
Face Value | $ 955,000,000 | $ 955,000,000 | |
Unamortized Net Premium/(Discount) | (2,100,000) | (2,200,000) | |
Carrying Value | 952,900,000 | 952,800,000 | |
Unamortized loan fees | (15,300,000) | (16,200,000) | |
Total debt | $ 937,600,000 | 936,600,000 | |
7.75% Senior Notes Due 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 7.75% | ||
Face Value | $ 55,000,000 | 55,000,000 | |
Unamortized Net Premium/(Discount) | 0 | 0 | |
Carrying Value | $ 55,000,000 | 55,000,000 | |
5.875% Senior Notes Dues April 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.875% | 5.875% | |
Face Value | $ 900,000,000 | 900,000,000 | |
Unamortized Net Premium/(Discount) | (2,100,000) | (2,200,000) | |
Carrying Value | $ 897,900,000 | $ 897,800,000 |
Senior Notes - Narrative (Detai
Senior Notes - Narrative (Details) - Senior Notes [Member] | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Debt face value | $ 955,000,000 | $ 955,000,000 | |
Balance sheet leverage ratio | 1.50 | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Maximum balance sheet leverage ratio | 1.27 | ||
5.875% Senior Notes Due April 2024 Issued August 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Debt face value | $ 250,000,000 | ||
5.875% Senior Notes Dues April 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt face value | $ 900,000,000 | $ 900,000,000 | |
Stated interest rate | 5.875% | 5.875% | |
Public offering price, percentage of principal amount | 100.00% | ||
5.875% Senior Notes Due April 2024 Issued Under Indenture [Member] | |||
Debt Instrument [Line Items] | |||
Debt face value | $ 650,000,000 |
Borrowings Under Lines of Cre63
Borrowings Under Lines of Credit (Details) - USD ($) | Jun. 09, 2017 | Dec. 10, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | |||||
Borrowings under line of credit | $ 400,000,000 | $ 100,000,000 | |||
Repayments of lines of credit | 50,000,000 | $ 0 | |||
Outstanding unsecured facility line of credit | $ 350,000,000 | $ 0 | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Fixed charge coverage ratio | 3.1 | ||||
Covenant, tangible net worth | $ 1,306,500,000 | ||||
Secured recourse leverage ratio | 1.00% | ||||
Liquidity covenant | $ 1,114,300,000 | ||||
Adjusted secured leverage ratio | 35.40% | ||||
Consolidated leverage ratio | 60.80% | ||||
Recourse leverage ratio | 1.04 | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | KW Revolving Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Period of extension | 1 year | ||||
Maximum consolidated leverage ratio | 65.00% | ||||
Rolling average basis period | 12 months | ||||
Covenant, percent of new equity offerings | 50.00% | ||||
Maximum secured recourse leverage multiplier | 1.5 | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | KW Revolving Facility [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Fixed charge coverage ratio | 1.60 | ||||
Covenant, tangible net worth | $ 920,660,504.65 | ||||
Liquidity covenant | $ 250,000,000 | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | KW Revolving Facility [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Secured recourse leverage ratio | 3.50% | ||||
Liquidity covenant | $ 138,187,197 | ||||
Adjusted secured leverage ratio | 55.00% | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | KW Revolving Facility [Member] | LIBOR [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | KW Revolving Facility [Member] | LIBOR [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Unsecured Debt [Member] | Revolving Credit Facility [Member] | KW Revolving Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Borrowings under line of credit | $ 350,000,000 | $ 400,000,000 | |||
Repayments of lines of credit | 50,000,000 | ||||
Maximum borrowing capacity | 475,000,000 | $ 475,000,000 | |||
Remaining borrowing capacity | 125,000,000 | ||||
Outstanding unsecured facility line of credit | $ 350,000,000 |
Equity - Common Stock (Details)
Equity - Common Stock (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Feb. 25, 2016 | |
Equity [Abstract] | |||
Authorized amount of stock to repurchase | $ 100,000,000 | ||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period, value | $ 1,600,000 | $ 28,000,000 | |
Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares retired due to common stock repurchase program (in shares) | 77,155 | 1,421,252 |
Equity - Dividend Distributions
Equity - Dividend Distributions (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Declared | ||
Preferred Stock, Declared | $ 0 | $ 1.1 |
Common stock, Declared | 39.1 | 32 |
Total, Declared | 39.1 | 33.1 |
Paid | ||
Preferred Stock, Paid | 0 | 1.1 |
Common Stock, Paid | 37.9 | 29.9 |
Total, Paid | 37.9 | 31 |
Series B Preferred Stock [Member] | ||
Declared | ||
Preferred Stock, Declared | 0 | 1.1 |
Paid | ||
Preferred Stock, Paid | $ 0 | $ 1.1 |
Equity - Share-Based Compensati
Equity - Share-Based Compensation (Details) - Restricted Stock [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 9.4 | $ 14.7 | $ 20.1 | $ 32.2 |
Shares paid for tax withholding for share based compensation | 1,460,251 | 634,692 | ||
Payments related to tax withholding for share-based compensation | $ 34 | $ 14.6 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance beginning of period | $ 2,343.1 |
Unrealized gains (losses), arising during the period | 98 |
Noncontrolling interest | (73.3) |
Taxes on unrealized gains (losses), arising during the period | (9.9) |
Balance end of period | 2,351.7 |
Total Accumulated Other Comprehensive Income [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance beginning of period | (71.2) |
Balance end of period | (56.4) |
Foreign Currency Translation [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance beginning of period | (98.6) |
Unrealized gains (losses), arising during the period | 139.6 |
Noncontrolling interest | (92.7) |
Taxes on unrealized gains (losses), arising during the period | (18.8) |
Balance end of period | (70.5) |
Currency Derivative Contracts [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance beginning of period | 27.5 |
Unrealized gains (losses), arising during the period | (41.8) |
Noncontrolling interest | 19.4 |
Taxes on unrealized gains (losses), arising during the period | 9 |
Balance end of period | 14.1 |
Marketable Securities [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance beginning of period | (0.1) |
Unrealized gains (losses), arising during the period | 0.2 |
Noncontrolling interest | 0 |
Taxes on unrealized gains (losses), arising during the period | (0.1) |
Balance end of period | $ 0 |
Equity - Noncontrolling Interes
Equity - Noncontrolling Interests (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 13, 2017 | Apr. 24, 2017 | Dec. 31, 2016 |
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interests | $ 1,324.2 | $ 1,295.1 | ||
KWE [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interests | $ 1,100 | $ 1,300 | ||
Ownership percentage by parent | 23.80% | 75.00% | 64.00% | 23.60% |
Noncontrolling Interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interests | $ 1,300 | $ 1,300 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ 9.4 | $ (1.6) | $ 10.2 | $ (9.1) |
Dividends allocated to participating securities | (0.2) | (0.5) | (0.5) | (1) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities | 9.2 | (2.1) | 9.7 | (10.1) |
Dividends declared on common shares | (19.3) | (15.4) | (38.6) | (31) |
Undistributed losses attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities | $ (10.1) | $ (17.5) | $ (28.9) | $ (41.1) |
Distributed earnings per share (in dollars per share) | $ 0.17 | $ 0.14 | $ 0.34 | $ 0.28 |
Undistributed losses per share (in dollars per share) | (0.09) | (0.16) | (0.25) | (0.37) |
Income (loss) per basic (in dollars per share) | 0.08 | (0.02) | 0.09 | (0.09) |
Income (loss) per diluted (in dollars per share) | $ 0.08 | $ (0.02) | $ 0.09 | $ (0.09) |
Weighted average shares outstanding for basic (in shares) | 111,723,952 | 109,056,941 | 111,945,354 | 109,136,241 |
Weighted average shares outstanding for diluted (in shares) | 111,723,952 | 109,056,941 | 111,945,354 | 109,136,241 |
Dividends declared per common share (in dollars per share) | $ 0.17 | $ 0.14 | $ 0.34 | $ 0.28 |
Potentially dilutive securities (in shares) | 1,040,003 | 3,388,573 | 989,495 | 3,332,013 |
Segment Information (Details)
Segment Information (Details) ft² in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($)ft²office | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)ft²line_of_businesssegmentoffice | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of core operating segments | segment | 2 | |||||
Number of main lines of businesses | line_of_business | 5 | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Rental | $ 123.8 | $ 120.3 | $ 248.1 | $ 240.2 | ||
Hotel | 29 | 26.8 | 58.5 | 55.9 | ||
Sale of real estate | 12.8 | 12.3 | 13.6 | 14.2 | ||
Investment management, property services and research fees | 7.7 | 13.5 | 25.2 | 32.6 | ||
Property service and research fees | 0.3 | 6.5 | 10 | 17.5 | ||
Loan purchases, loan originations and other | 4.5 | 3.6 | 6.5 | 5.8 | ||
Total revenue | 177.8 | 176.5 | 351.9 | 348.7 | ||
Operating expenses | (126.2) | (119.7) | (231.9) | (234.2) | ||
Depreciation and amortization | (52.1) | (48.9) | (101.8) | (97.3) | ||
Total operating expenses | (178.3) | (168.6) | (333.7) | (331.5) | ||
Income from unconsolidated investments | 13.4 | 8.4 | 35.9 | 27.6 | ||
Operating income | 12.9 | 16.3 | 54.1 | 44.8 | ||
Gain on sale of real estate | 66.3 | 16.1 | 71.7 | 54.5 | ||
Acquisition-related gains | 0 | 8.6 | 0 | 8.6 | ||
Acquisition-related expenses | (0.9) | (6.3) | (1.2) | (8.4) | ||
Interest expense-investments | (35.5) | (33.6) | (69.9) | (66.1) | ||
Interest expense-corporate | (16.6) | (12.2) | (32.2) | (24.3) | ||
Other | (4.4) | (5) | (4.9) | (5.7) | ||
Income (loss) before (provision for) benefit from income taxes | 30.6 | (6.1) | 27.4 | 14.8 | ||
(Provision for) benefit from income taxes | (8.8) | 3.9 | (4.6) | 3.4 | ||
Net income (loss) | 21.8 | (2.2) | 22.8 | 18.2 | ||
Net income attributable to the noncontrolling interests | (12.4) | 1.1 | (12.6) | (26.2) | ||
Preferred dividends and accretion of preferred stock issuance costs | 0 | (0.5) | 0 | (1.1) | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 9.4 | (1.6) | 10.2 | (9.1) | ||
Segment Reporting Information, Assets [Abstract] | ||||||
Total assets | [1] | $ 8,284.3 | $ 8,284.3 | $ 7,659.1 | ||
Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Average ownership interest in investments | 39.00% | |||||
IMRES [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Area of real estate property | ft² | 59 | 59 | ||||
Number of offices | office | 27 | 27 | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Property service and research fees | $ 0.3 | 6.5 | $ 10 | 17.5 | ||
Operating Segments [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Sale of real estate | 12.8 | 12.3 | ||||
Operating Segments [Member] | Investments [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Rental | 123.8 | 120.3 | 248.1 | 240.2 | ||
Hotel | 29 | 26.8 | 58.5 | 55.9 | ||
Sale of real estate | 13.6 | 14.2 | ||||
Loan purchases, loan originations and other | 4.4 | 3.6 | 6.5 | 5.8 | ||
Total revenue | 170 | 163 | 326.7 | 316.1 | ||
Operating expenses | (95.4) | (86.1) | (173.7) | (161.3) | ||
Depreciation and amortization | (52.1) | (48.9) | (101.8) | (97.3) | ||
Income from unconsolidated investments | 12.6 | 7.2 | 34.2 | 25.3 | ||
Operating income | 35.1 | 35.2 | 85.4 | 82.8 | ||
Gain on sale of real estate | 66.3 | 16.1 | 71.7 | 54.5 | ||
Acquisition-related gains | 0 | 8.6 | 0 | 8.6 | ||
Acquisition-related expenses | (0.9) | (6.3) | (1.2) | (8.4) | ||
Interest expense-investments | (35.5) | (33.6) | (69.9) | (66.1) | ||
Other | 0.3 | (5) | (0.5) | (5.7) | ||
Income (loss) before (provision for) benefit from income taxes | 64.7 | 25 | 86.5 | 77.1 | ||
(Provision for) benefit from income taxes | (1.3) | (3.2) | (2.3) | (4.2) | ||
Net income (loss) | 63.4 | 21.8 | 84.2 | 72.9 | ||
Net income attributable to the noncontrolling interests | (12.4) | 1.2 | (12.6) | (26.2) | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 51 | 23 | 71.6 | 46.7 | ||
Segment Reporting Information, Assets [Abstract] | ||||||
Total assets | 7,667.9 | 7,667.9 | 7,375.5 | |||
Operating Segments [Member] | IMRES [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Investment management, property services and research fees | 7.7 | 13.5 | 25.2 | 32.6 | ||
Total revenue | 7.7 | 13.5 | 25.2 | 32.6 | ||
Operating expenses | (13.1) | (13.5) | (26.4) | (29.4) | ||
Income from unconsolidated investments | 0.9 | 1.2 | 1.7 | 2.3 | ||
Operating income | (4.5) | 1.2 | 0.5 | 5.5 | ||
Net income attributable to the noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | (4.5) | 1.2 | 0.5 | 5.5 | ||
Segment Reporting Information, Assets [Abstract] | ||||||
Total assets | 101.3 | 101.3 | 78.1 | |||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Operating expenses | (17.7) | (20.1) | (31.8) | (43.5) | ||
Operating income | (17.7) | (20.1) | (31.8) | (43.5) | ||
Interest expense-corporate | (16.6) | (12.2) | (32.2) | (24.3) | ||
Other | 4.6 | 0 | 4.4 | 0 | ||
Income (loss) before (provision for) benefit from income taxes | (29.7) | (32.3) | (59.6) | (67.8) | ||
(Provision for) benefit from income taxes | (7.4) | 7.1 | (2.3) | 7.6 | ||
Net income (loss) | (37.1) | (25.2) | (61.9) | (60.2) | ||
Preferred dividends and accretion of preferred stock issuance costs | 0 | (0.5) | 0 | (1.1) | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | (37.1) | $ (25.7) | (61.9) | $ (61.3) | ||
Segment Reporting Information, Assets [Abstract] | ||||||
Total assets | $ 515.1 | $ 515.1 | $ 205.5 | |||
[1] | The assets and liabilities as of June 30, 2017 include $4.8 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.8 billion) and $2.9 billion (including investment debt of $2.6 billion), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2016 include $4.5 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.6 billion) and $2.7 billion (including investment debt of $2.4 billion), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Income Taxes [Line Items] | ||||||
Income before income taxes | $ 30.6 | $ (6.1) | $ 27.4 | $ 14.8 | ||
Income tax expense | 8.8 | $ (3.9) | 4.6 | $ (3.4) | ||
Cumulative effect of ASU 2016-09 adoption | [1] | 9.3 | 9.3 | |||
Tax benefit from share-based compensation cost | 3.8 | |||||
US domestic taxes would be incurred if repatriated to the United States | 1.7 | 1.7 | ||||
Ireland and Jersey [Member] | ||||||
Income Taxes [Line Items] | ||||||
Undistributed earnings of foreign subsidiaries | 7.3 | $ 7.3 | ||||
U.S. Federal [Member] | ||||||
Income Taxes [Line Items] | ||||||
Federal statutory rate | 35.00% | |||||
Retained Earnings (Accumulated Deficit) [Member] | ||||||
Income Taxes [Line Items] | ||||||
Cumulative effect of ASU 2016-09 adoption | [1] | 9.3 | $ 9.3 | |||
Accounting Standards Update 2016-09 [Member] | Retained Earnings (Accumulated Deficit) [Member] | ||||||
Income Taxes [Line Items] | ||||||
Cumulative effect of ASU 2016-09 adoption | $ 9.3 | $ 9.3 | $ 9.3 | |||
[1] | See Note 2 for further discussion. |
Guarantor and Non-Guarantor F72
Guarantor and Non-Guarantor Financial Statements - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | ||||
Consolidated entity ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Guarantor and Non-Guarantor F73
Guarantor and Non-Guarantor Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and cash equivalents | $ 569.2 | $ 260.2 | |
Cash held by consolidated investments | 695.6 | 625.5 | |
Accounts receivable | 93.4 | 71.3 | |
Loan purchases and originations | 87.2 | 87.7 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 6,062.1 | 5,814.2 | |
Unconsolidated investments | 499 | 555.6 | |
Investments in and advances to consolidated subsidiaries | 0 | 0 | |
Other assets | 277.8 | 244.6 | |
Total assets | [1] | 8,284.3 | 7,659.1 |
Liabilities | |||
Accounts payable | 20.8 | 11.2 | |
Accrued expenses and other liabilities | 431.4 | 412.1 | |
Total liabilities | [1] | 5,932.6 | 5,316 |
Equity | |||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,027.5 | 1,048 | |
Noncontrolling interests | 1,324.2 | 1,295.1 | |
Total equity | 2,351.7 | 2,343.1 | |
Total liabilities and equity | 8,284.3 | 7,659.1 | |
Investment Debt [Member] | |||
Liabilities | |||
Long-term debt | 4,192.8 | 3,956.1 | |
Senior Notes [Member] | |||
Liabilities | |||
Long-term debt | 937.6 | 936.6 | |
Line of Credit [Member] | |||
Liabilities | |||
Long-term debt | 350 | ||
Reportable Legal Entities [Member] | Parent [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Cash held by consolidated investments | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Loan purchases and originations | 0 | 0 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 0 | 0 | |
Unconsolidated investments | 0 | 0 | |
Investments in and advances to consolidated subsidiaries | 1,046.9 | 1,063.8 | |
Other assets | 0 | 0 | |
Total assets | 1,046.9 | 1,063.8 | |
Liabilities | |||
Accounts payable | 0 | 0 | |
Accrued expenses and other liabilities | 19.4 | 15.8 | |
Total liabilities | 19.4 | 15.8 | |
Equity | |||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,027.5 | 1,048 | |
Noncontrolling interests | 0 | 0 | |
Total equity | 1,027.5 | 1,048 | |
Total liabilities and equity | 1,046.9 | 1,063.8 | |
Reportable Legal Entities [Member] | Kennedy-Wilson, Inc. [Member] | |||
Assets | |||
Cash and cash equivalents | 410.4 | 106 | |
Cash held by consolidated investments | 0 | 0 | |
Accounts receivable | 0.1 | 0 | |
Loan purchases and originations | 0.3 | 0.3 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 0 | 0 | |
Unconsolidated investments | 19.5 | 18.8 | |
Investments in and advances to consolidated subsidiaries | 1,936.3 | 2,073.2 | |
Other assets | 1.9 | 2.6 | |
Total assets | 2,368.5 | 2,200.9 | |
Liabilities | |||
Accounts payable | 0.2 | 0.5 | |
Accrued expenses and other liabilities | 33.8 | 200 | |
Total liabilities | 1,321.6 | 1,137.1 | |
Equity | |||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,046.9 | 1,063.8 | |
Noncontrolling interests | 0 | 0 | |
Total equity | 1,046.9 | 1,063.8 | |
Total liabilities and equity | 2,368.5 | 2,200.9 | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||
Assets | |||
Cash and cash equivalents | 45.6 | 45.4 | |
Cash held by consolidated investments | 0 | 0 | |
Accounts receivable | 47.9 | 37.5 | |
Loan purchases and originations | 5.7 | 12.1 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 1,456.2 | 1,482.5 | |
Unconsolidated investments | 314.4 | 380 | |
Investments in and advances to consolidated subsidiaries | 1,138.4 | 1,171.6 | |
Other assets | 44.1 | 39.7 | |
Total assets | 3,052.3 | 3,168.8 | |
Liabilities | |||
Accounts payable | 1.6 | 1.6 | |
Accrued expenses and other liabilities | 135.5 | 157.2 | |
Total liabilities | 1,116 | 1,095.6 | |
Equity | |||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,936.3 | 2,073.2 | |
Noncontrolling interests | 0 | 0 | |
Total equity | 1,936.3 | 2,073.2 | |
Total liabilities and equity | 3,052.3 | 3,168.8 | |
Reportable Legal Entities [Member] | Non-guarantor Subsidiaries [Member] | |||
Assets | |||
Cash and cash equivalents | 113.2 | 108.8 | |
Cash held by consolidated investments | 695.6 | 625.5 | |
Accounts receivable | 45.4 | 33.8 | |
Loan purchases and originations | 81.2 | 75.3 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 4,605.9 | 4,331.7 | |
Unconsolidated investments | 165.1 | 156.8 | |
Investments in and advances to consolidated subsidiaries | 0 | 0 | |
Other assets | 231.8 | 202.3 | |
Total assets | 5,938.2 | 5,534.2 | |
Liabilities | |||
Accounts payable | 19 | 9.1 | |
Accrued expenses and other liabilities | 242.7 | 39.1 | |
Total liabilities | 3,475.6 | 3,067.5 | |
Equity | |||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,138.4 | 1,171.6 | |
Noncontrolling interests | 1,324.2 | 1,295.1 | |
Total equity | 2,462.6 | 2,466.7 | |
Total liabilities and equity | 5,938.2 | 5,534.2 | |
Reportable Legal Entities [Member] | Investment Debt [Member] | Parent [Member] | |||
Liabilities | |||
Long-term debt | 0 | 0 | |
Reportable Legal Entities [Member] | Investment Debt [Member] | Kennedy-Wilson, Inc. [Member] | |||
Liabilities | |||
Long-term debt | 0 | 0 | |
Reportable Legal Entities [Member] | Investment Debt [Member] | Guarantor Subsidiaries [Member] | |||
Liabilities | |||
Long-term debt | 978.9 | 936.8 | |
Reportable Legal Entities [Member] | Investment Debt [Member] | Non-guarantor Subsidiaries [Member] | |||
Liabilities | |||
Long-term debt | 3,213.9 | 3,019.3 | |
Reportable Legal Entities [Member] | Senior Notes [Member] | Parent [Member] | |||
Liabilities | |||
Long-term debt | 0 | 0 | |
Reportable Legal Entities [Member] | Senior Notes [Member] | Kennedy-Wilson, Inc. [Member] | |||
Liabilities | |||
Long-term debt | 937.6 | 936.6 | |
Reportable Legal Entities [Member] | Senior Notes [Member] | Guarantor Subsidiaries [Member] | |||
Liabilities | |||
Long-term debt | 0 | 0 | |
Reportable Legal Entities [Member] | Senior Notes [Member] | Non-guarantor Subsidiaries [Member] | |||
Liabilities | |||
Long-term debt | 0 | 0 | |
Reportable Legal Entities [Member] | Line of Credit [Member] | Parent [Member] | |||
Liabilities | |||
Long-term debt | 0 | ||
Reportable Legal Entities [Member] | Line of Credit [Member] | Kennedy-Wilson, Inc. [Member] | |||
Liabilities | |||
Long-term debt | 350 | ||
Reportable Legal Entities [Member] | Line of Credit [Member] | Guarantor Subsidiaries [Member] | |||
Liabilities | |||
Long-term debt | 0 | ||
Reportable Legal Entities [Member] | Line of Credit [Member] | Non-guarantor Subsidiaries [Member] | |||
Liabilities | |||
Long-term debt | 0 | ||
Elimination [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Cash held by consolidated investments | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Loan purchases and originations | 0 | 0 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 0 | 0 | |
Unconsolidated investments | 0 | 0 | |
Investments in and advances to consolidated subsidiaries | (4,121.6) | (4,308.6) | |
Other assets | 0 | 0 | |
Total assets | (4,121.6) | (4,308.6) | |
Liabilities | |||
Accounts payable | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Equity | |||
Kennedy-Wilson Holdings, Inc. shareholders' equity | (4,121.6) | (4,308.6) | |
Noncontrolling interests | 0 | 0 | |
Total equity | (4,121.6) | (4,308.6) | |
Total liabilities and equity | (4,121.6) | (4,308.6) | |
Elimination [Member] | Investment Debt [Member] | |||
Liabilities | |||
Long-term debt | 0 | 0 | |
Elimination [Member] | Senior Notes [Member] | |||
Liabilities | |||
Long-term debt | 0 | $ 0 | |
Elimination [Member] | Line of Credit [Member] | |||
Liabilities | |||
Long-term debt | $ 0 | ||
[1] | The assets and liabilities as of June 30, 2017 include $4.8 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.8 billion) and $2.9 billion (including investment debt of $2.6 billion), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2016 include $4.5 billion (including cash held by consolidated investments of $0.6 billion and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $3.6 billion) and $2.7 billion (including investment debt of $2.4 billion), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Guarantor and Non-Guarantor F74
Guarantor and Non-Guarantor Financial Statements - Consolidating Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | ||||
Rental | $ 123.8 | $ 120.3 | $ 248.1 | $ 240.2 |
Hotel | 29 | 26.8 | 58.5 | 55.9 |
Sale of real estate | 12.8 | 12.3 | 13.6 | 14.2 |
Investment management, property services and research fees | 7.7 | 13.5 | 25.2 | 32.6 |
Loan purchases, loan originations and other | 4.5 | 3.6 | 6.5 | 5.8 |
Total revenue | 177.8 | 176.5 | 351.9 | 348.7 |
Operating expenses | ||||
Rental operating | 36.6 | 32.8 | 72.6 | 63.8 |
Hotel operating | 22.8 | 23.6 | 47.2 | 48.1 |
Cost of real estate sold | 9.6 | 9.2 | 10.3 | 10.6 |
Commission and marketing | 1.7 | 1.8 | 3.7 | 3.5 |
Compensation and related | 45.5 | 40.5 | 78.2 | 86.2 |
General and administrative | 10 | 11.8 | 19.9 | 22 |
Depreciation and amortization | 52.1 | 48.9 | 101.8 | 97.3 |
Total operating expenses | 178.3 | 168.6 | 333.7 | 331.5 |
Income from unconsolidated investments | 13.4 | 8.4 | 35.9 | 27.6 |
Income from consolidated subsidiaries | 0 | 0 | 0 | 0 |
Operating income | 12.9 | 16.3 | 54.1 | 44.8 |
Non-operating income (expense) | ||||
Acquisition-related gains | 0 | 8.6 | 0 | 8.6 |
Acquisition-related expenses | (0.9) | (6.3) | (1.2) | (8.4) |
Interest expense-corporate | (16.6) | (12.2) | (32.2) | (24.3) |
Interest expense-investment | (35.5) | (33.6) | (69.9) | (66.1) |
Gain on sale of real estate | 66.3 | 16.1 | 71.7 | 54.5 |
Other income / (expense) | 4.4 | 5 | 4.9 | 5.7 |
Income (loss) before (provision for) benefit from income taxes | 30.6 | (6.1) | 27.4 | 14.8 |
(Provision for) benefit from income taxes | (8.8) | 3.9 | (4.6) | 3.4 |
Net income (loss) | 21.8 | (2.2) | 22.8 | 18.2 |
Net (income) loss attributable to the noncontrolling interests | (12.4) | 1.1 | (12.6) | (26.2) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. | 9.4 | (1.1) | 10.2 | (8) |
Preferred dividends and accretion of preferred stock issuance costs | 0 | (0.5) | 0 | (1.1) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 9.4 | (1.6) | 10.2 | (9.1) |
Reportable Legal Entities [Member] | Parent [Member] | ||||
Revenue | ||||
Rental | 0 | 0 | 0 | 0 |
Hotel | 0 | 0 | 0 | 0 |
Sale of real estate | 0 | 0 | 0 | 0 |
Investment management, property services and research fees | 0 | 0 | 0 | 0 |
Loan purchases, loan originations and other | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Rental operating | 0 | 0 | 0 | 0 |
Hotel operating | 0 | 0 | 0 | 0 |
Cost of real estate sold | 0 | 0 | 0 | 0 |
Commission and marketing | 0 | 0 | 0 | 0 |
Compensation and related | 9.4 | 14.8 | 20.1 | 32.3 |
General and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating expenses | 9.4 | 14.8 | 20.1 | 32.3 |
Income from unconsolidated investments | 0 | 0 | 0 | 0 |
Income from consolidated subsidiaries | 31.2 | 12.6 | 42.9 | 50.5 |
Operating income | 21.8 | (2.2) | 22.8 | 18.2 |
Non-operating income (expense) | ||||
Acquisition-related gains | 0 | 0 | ||
Acquisition-related expenses | 0 | 0 | 0 | 0 |
Interest expense-corporate | 0 | 0 | 0 | 0 |
Interest expense-investment | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | 0 | 0 |
Other income / (expense) | 0 | 0 | 0 | 0 |
Income (loss) before (provision for) benefit from income taxes | 21.8 | (2.2) | 22.8 | 18.2 |
(Provision for) benefit from income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 21.8 | (2.2) | 22.8 | 18.2 |
Net (income) loss attributable to the noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. | 21.8 | (2.2) | 22.8 | 18.2 |
Preferred dividends and accretion of preferred stock issuance costs | 0 | (0.5) | 0 | (1.1) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 21.8 | (2.7) | 22.8 | 17.1 |
Reportable Legal Entities [Member] | Kennedy-Wilson, Inc. [Member] | ||||
Revenue | ||||
Rental | 0 | 0 | 0 | 0 |
Hotel | 0 | 0 | 0 | 0 |
Sale of real estate | 0 | 0 | 0 | 0 |
Investment management, property services and research fees | 0 | 0 | 0 | 0 |
Loan purchases, loan originations and other | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Rental operating | 0 | 0 | 0 | 0 |
Hotel operating | 0 | 0 | 0 | 0 |
Cost of real estate sold | 0 | 0 | 0 | 0 |
Commission and marketing | 0 | 0 | 0 | 0 |
Compensation and related | 20.6 | 11.7 | 27.8 | 25.6 |
General and administrative | 3.6 | 3.6 | 6.5 | 7 |
Depreciation and amortization | 0.3 | 0.3 | 0.7 | 0.6 |
Total operating expenses | 24.5 | 15.6 | 35 | 33.2 |
Income from unconsolidated investments | 0.4 | 0.7 | 1.6 | 3.1 |
Income from consolidated subsidiaries | 76.1 | 30.4 | 107.7 | 93.8 |
Operating income | 52 | 15.5 | 74.3 | 63.7 |
Non-operating income (expense) | ||||
Acquisition-related gains | 0 | 0 | ||
Acquisition-related expenses | (0.1) | 0 | (0.1) | 0 |
Interest expense-corporate | (16.6) | (12.2) | (32.2) | (24.3) |
Interest expense-investment | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | 0 | 0 |
Other income / (expense) | 3.4 | 6 | 3.2 | 7.3 |
Income (loss) before (provision for) benefit from income taxes | 38.7 | 9.3 | 45.2 | 46.7 |
(Provision for) benefit from income taxes | (7.5) | 3.3 | (2.3) | 3.8 |
Net income (loss) | 31.2 | 12.6 | 42.9 | 50.5 |
Net (income) loss attributable to the noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. | 31.2 | 12.6 | 42.9 | 50.5 |
Preferred dividends and accretion of preferred stock issuance costs | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 31.2 | 12.6 | 42.9 | 50.5 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Revenue | ||||
Rental | 35.2 | 26.3 | 68.3 | 51.2 |
Hotel | 0 | 0 | 0 | 0 |
Sale of real estate | 0 | 9.7 | 0 | 9.7 |
Investment management, property services and research fees | 5.6 | 12.9 | 21.1 | 31.1 |
Loan purchases, loan originations and other | 0 | 0.3 | 0.3 | 0.6 |
Total revenue | 40.8 | 49.2 | 89.7 | 92.6 |
Operating expenses | ||||
Rental operating | 13.6 | 12.2 | 26.8 | 22.1 |
Hotel operating | 0 | 0 | 0 | 0 |
Cost of real estate sold | 0 | 7.2 | 0 | 7.2 |
Commission and marketing | 1.7 | 1.5 | 3.6 | 3.2 |
Compensation and related | 13.6 | 12.3 | 26.3 | 24.5 |
General and administrative | 3.3 | 3.9 | 7.8 | 7.7 |
Depreciation and amortization | 12 | 8.8 | 23.6 | 17.5 |
Total operating expenses | 44.2 | 45.9 | 88.1 | 82.2 |
Income from unconsolidated investments | 3.4 | 3 | 10.3 | 8.5 |
Income from consolidated subsidiaries | 39.7 | 28.8 | 66.3 | 88.3 |
Operating income | 39.7 | 35.1 | 78.2 | 107.2 |
Non-operating income (expense) | ||||
Acquisition-related gains | 0 | 0 | ||
Acquisition-related expenses | (0.7) | (1.1) | (0.7) | (1.2) |
Interest expense-corporate | 0 | 0 | 0 | 0 |
Interest expense-investment | (9.5) | (5.6) | (17.9) | (11) |
Gain on sale of real estate | 46.6 | 0 | 46.6 | 0.4 |
Other income / (expense) | 0.1 | (0.1) | 0.1 | (2.6) |
Income (loss) before (provision for) benefit from income taxes | 76.2 | 28.3 | 106.3 | 92.8 |
(Provision for) benefit from income taxes | (0.1) | 2.1 | 1.4 | 1 |
Net income (loss) | 76.1 | 30.4 | 107.7 | 93.8 |
Net (income) loss attributable to the noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. | 76.1 | 30.4 | 107.7 | 93.8 |
Preferred dividends and accretion of preferred stock issuance costs | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 76.1 | 30.4 | 107.7 | 93.8 |
Reportable Legal Entities [Member] | Non-guarantor Subsidiaries [Member] | ||||
Revenue | ||||
Rental | 88.6 | 94 | 179.8 | 189 |
Hotel | 29 | 26.8 | 58.5 | 55.9 |
Sale of real estate | 12.8 | 2.6 | 13.6 | 4.5 |
Investment management, property services and research fees | 2.1 | 0.6 | 4.1 | 1.5 |
Loan purchases, loan originations and other | 4.5 | 3.3 | 6.2 | 5.2 |
Total revenue | 137 | 127.3 | 262.2 | 256.1 |
Operating expenses | ||||
Rental operating | 23 | 20.6 | 45.8 | 41.7 |
Hotel operating | 22.8 | 23.6 | 47.2 | 48.1 |
Cost of real estate sold | 9.6 | 2 | 10.3 | 3.4 |
Commission and marketing | 0 | 0.3 | 0.1 | 0.3 |
Compensation and related | 1.9 | 1.7 | 4 | 3.8 |
General and administrative | 3.1 | 4.3 | 5.6 | 7.3 |
Depreciation and amortization | 39.8 | 39.8 | 77.5 | 79.2 |
Total operating expenses | 100.2 | 92.3 | 190.5 | 183.8 |
Income from unconsolidated investments | 9.6 | 4.7 | 24 | 16 |
Income from consolidated subsidiaries | 0 | 0 | 0 | 0 |
Operating income | 46.4 | 39.7 | 95.7 | 88.3 |
Non-operating income (expense) | ||||
Acquisition-related gains | 8.6 | 8.6 | ||
Acquisition-related expenses | (0.1) | (5.2) | (0.4) | (7.2) |
Interest expense-corporate | 0 | 0 | 0 | 0 |
Interest expense-investment | (26) | (28) | (52) | (55.1) |
Gain on sale of real estate | 19.7 | 16.1 | 25.1 | 54.1 |
Other income / (expense) | 0.9 | (0.9) | 1.6 | 1 |
Income (loss) before (provision for) benefit from income taxes | 40.9 | 30.3 | 70 | 89.7 |
(Provision for) benefit from income taxes | (1.2) | (1.5) | (3.7) | (1.4) |
Net income (loss) | 39.7 | 28.8 | 66.3 | 88.3 |
Net (income) loss attributable to the noncontrolling interests | (12.4) | 1.1 | (12.6) | (26.2) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. | 27.3 | 29.9 | 53.7 | 62.1 |
Preferred dividends and accretion of preferred stock issuance costs | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 27.3 | 29.9 | 53.7 | 62.1 |
Elimination [Member] | ||||
Revenue | ||||
Rental | 0 | 0 | 0 | 0 |
Hotel | 0 | 0 | 0 | 0 |
Sale of real estate | 0 | 0 | 0 | 0 |
Investment management, property services and research fees | 0 | 0 | 0 | 0 |
Loan purchases, loan originations and other | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Rental operating | 0 | 0 | 0 | 0 |
Hotel operating | 0 | 0 | 0 | 0 |
Cost of real estate sold | 0 | 0 | 0 | 0 |
Commission and marketing | 0 | 0 | 0 | 0 |
Compensation and related | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Income from unconsolidated investments | 0 | 0 | 0 | 0 |
Income from consolidated subsidiaries | (147) | (71.8) | (216.9) | (232.6) |
Operating income | (147) | (71.8) | (216.9) | (232.6) |
Non-operating income (expense) | ||||
Acquisition-related gains | 0 | 0 | ||
Acquisition-related expenses | 0 | 0 | 0 | 0 |
Interest expense-corporate | 0 | 0 | 0 | 0 |
Interest expense-investment | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | 0 | 0 |
Other income / (expense) | 0 | 0 | 0 | 0 |
Income (loss) before (provision for) benefit from income taxes | (147) | (71.8) | (216.9) | (232.6) |
(Provision for) benefit from income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (147) | (71.8) | (216.9) | (232.6) |
Net (income) loss attributable to the noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. | (147) | (71.8) | (216.9) | (232.6) |
Preferred dividends and accretion of preferred stock issuance costs | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ (147) | $ (71.8) | $ (216.9) | $ (232.6) |
Guarantor and Non-Guarantor F75
Guarantor and Non-Guarantor Financial Statements - Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 21.8 | $ (2.2) | $ 22.8 | $ 18.2 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized foreign currency translation (loss) gain | 99.6 | (82.8) | 120.8 | (60.6) |
Unrealized gain on marketable securities | 0.1 | 0 | 0.1 | 0.1 |
Amounts reclassified out of AOCI during the period | 0 | 2.7 | 0 | 2.7 |
Unrealized currency derivative contracts loss | (41.5) | (39.4) | (32.8) | (89.4) |
Total other comprehensive income (loss) for the period | 58.2 | (119.5) | 88.1 | (147.2) |
Comprehensive income (loss) | 80 | (121.7) | 110.9 | (129) |
Comprehensive (income) loss attributable to noncontrolling interests | (61) | 110.6 | (85.9) | 112.1 |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 19 | (11.1) | 25 | (16.9) |
Reportable Legal Entities [Member] | Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 21.8 | (2.2) | 22.8 | 18.2 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized foreign currency translation (loss) gain | 99.6 | (82.8) | 120.8 | (60.6) |
Unrealized gain on marketable securities | 0.1 | 0.1 | 0.1 | |
Amounts reclassified out of AOCI during the period | 0 | 2.7 | 2.7 | |
Unrealized currency derivative contracts loss | (41.5) | (39.3) | (32.8) | (89.4) |
Total other comprehensive income (loss) for the period | 58.2 | (119.4) | 88.1 | (147.2) |
Comprehensive income (loss) | 80 | (121.6) | 110.9 | (129) |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 80 | (121.6) | 110.9 | (129) |
Reportable Legal Entities [Member] | Kennedy-Wilson, Inc. [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 31.2 | 12.6 | 42.9 | 50.5 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized foreign currency translation (loss) gain | 99.6 | (82.8) | 120.8 | (60.6) |
Unrealized gain on marketable securities | 0.1 | 0.1 | 0.1 | |
Amounts reclassified out of AOCI during the period | 0 | 2.7 | 2.7 | |
Unrealized currency derivative contracts loss | (41.5) | (39.3) | (32.8) | (89.4) |
Total other comprehensive income (loss) for the period | 58.2 | (119.4) | 88.1 | (147.2) |
Comprehensive income (loss) | 89.4 | (106.8) | 131 | (96.7) |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 89.4 | (106.8) | 131 | (96.7) |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 76.1 | 30.4 | 107.7 | 93.8 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized foreign currency translation (loss) gain | 14.6 | (10.9) | 18.5 | (6.4) |
Unrealized gain on marketable securities | 0 | 0 | 0 | |
Amounts reclassified out of AOCI during the period | 0 | 0 | 0 | |
Unrealized currency derivative contracts loss | (7.8) | 10.9 | (9.8) | 10.4 |
Total other comprehensive income (loss) for the period | 6.8 | 0 | 8.7 | 4 |
Comprehensive income (loss) | 82.9 | 30.4 | 116.4 | 97.8 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 82.9 | 30.4 | 116.4 | 97.8 |
Reportable Legal Entities [Member] | Non-guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 39.7 | 28.8 | 66.3 | 88.3 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized foreign currency translation (loss) gain | 92.9 | (82.5) | 112.2 | (64.2) |
Unrealized gain on marketable securities | 0 | 0 | 0 | |
Amounts reclassified out of AOCI during the period | 0 | 2.7 | 2.7 | |
Unrealized currency derivative contracts loss | (33.7) | (50.2) | (23) | (99.8) |
Total other comprehensive income (loss) for the period | 59.2 | (130) | 89.2 | (161.3) |
Comprehensive income (loss) | 98.9 | (101.2) | 155.5 | (73) |
Comprehensive (income) loss attributable to noncontrolling interests | (61) | 110.6 | (85.9) | 112.1 |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 37.9 | 9.4 | 69.6 | 39.1 |
Elimination [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (147) | (71.8) | (216.9) | (232.6) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized foreign currency translation (loss) gain | (207.1) | 176.2 | (251.5) | 131.2 |
Unrealized gain on marketable securities | (0.1) | (0.1) | (0.1) | |
Amounts reclassified out of AOCI during the period | 0 | (5.4) | (5.4) | |
Unrealized currency derivative contracts loss | 83 | 78.5 | 65.6 | 178.8 |
Total other comprehensive income (loss) for the period | (124.2) | 249.3 | (186) | 304.5 |
Comprehensive income (loss) | (271.2) | 177.5 | (402.9) | 71.9 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ (271.2) | $ 177.5 | $ (402.9) | $ 71.9 |
Guarantor and Non-Guarantor F76
Guarantor and Non-Guarantor Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash from (used in) operating activities | $ 68.2 | $ 10.5 | |
Cash flows from investing activities: | |||
Additions to loans | 0 | (5.3) | |
Collections of loans | 6.4 | 138.8 | |
Net proceeds from sale of real estate | 243 | 183.4 | |
Purchases of and additions to real estate | (284.9) | (447.5) | |
Proceeds from settlement of foreign derivative contracts | 3 | 25.7 | |
Purchases of foreign derivative contracts | (0.5) | (3.4) | |
Investment in marketable securities | (0.4) | (0.7) | |
Proceeds from sale of marketable securities | 0.2 | 0 | |
Distributions from unconsolidated investments | 69 | 35.2 | |
Contributions to unconsolidated investments | (36.7) | (45.6) | |
(Investments in) distributions from consolidated subsidiaries, net | 0 | 0 | |
Net cash used in investing activities | (0.9) | (119.4) | |
Cash flows from financing activities: | |||
Borrowings under line of credit | 400 | 100 | |
Repayment of lines of credit | (50) | 0 | |
Borrowings under investment debt | 166.8 | 476.5 | |
Repayment of investment debt | (100.6) | (97.5) | |
Debt issue costs | (0.1) | (3.7) | |
Costs associated with KWE transaction | (5.5) | 0 | |
Repurchase and retirement of common stock | (35.6) | (42.8) | |
Dividends paid | (37.9) | (31) | |
Acquisition of KWE shares from noncontrolling interest holders | (3.3) | (67.9) | |
Contributions from noncontrolling interests, excluding KWE | 22.7 | 12.9 | |
Distributions to noncontrolling interests | (76.2) | (73.5) | |
Net cash provided by financing activities | 280.3 | 273 | |
Effect of currency exchange rate changes on cash and cash equivalents | 31.5 | (39.7) | |
Net change in cash and cash equivalents | [1] | 379.1 | 124.4 |
Cash and cash equivalents, beginning of period | 885.7 | 731.6 | |
Cash and cash equivalents, end of period | 1,264.8 | 856 | |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash from (used in) operating activities | 2.3 | (0.2) | |
Cash flows from investing activities: | |||
Additions to loans | 0 | 0 | |
Collections of loans | 0 | 0 | |
Net proceeds from sale of real estate | 0 | 0 | |
Purchases of and additions to real estate | 0 | 0 | |
Proceeds from settlement of foreign derivative contracts | 0 | 0 | |
Purchases of foreign derivative contracts | 0 | 0 | |
Investment in marketable securities | 0 | 0 | |
Proceeds from sale of marketable securities | 0 | ||
Distributions from unconsolidated investments | 0 | 0 | |
Contributions to unconsolidated investments | 0 | 0 | |
(Investments in) distributions from consolidated subsidiaries, net | 76.7 | 74 | |
Net cash used in investing activities | 76.7 | 74 | |
Cash flows from financing activities: | |||
Borrowings under line of credit | 0 | 0 | |
Repayment of lines of credit | 0 | ||
Borrowings under investment debt | 0 | 0 | |
Repayment of investment debt | 0 | 0 | |
Debt issue costs | 0 | 0 | |
Costs associated with KWE transaction | (5.5) | ||
Repurchase and retirement of common stock | (35.6) | (42.8) | |
Dividends paid | (37.9) | (31) | |
Acquisition of KWE shares from noncontrolling interest holders | 0 | 0 | |
Contributions from noncontrolling interests, excluding KWE | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | |
Net cash provided by financing activities | (79) | (73.8) | |
Effect of currency exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net change in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents, beginning of period | 0 | 0 | |
Cash and cash equivalents, end of period | 0 | 0 | |
Kennedy-Wilson, Inc. [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash from (used in) operating activities | (223.7) | (138.3) | |
Cash flows from investing activities: | |||
Additions to loans | 0 | (0.8) | |
Collections of loans | 0 | 0 | |
Net proceeds from sale of real estate | 0 | 0 | |
Purchases of and additions to real estate | 0 | 0 | |
Proceeds from settlement of foreign derivative contracts | 3 | 25.7 | |
Purchases of foreign derivative contracts | (0.5) | (3.4) | |
Investment in marketable securities | 0 | 0 | |
Proceeds from sale of marketable securities | 0 | ||
Distributions from unconsolidated investments | 0 | 0 | |
Contributions to unconsolidated investments | 0 | (1) | |
(Investments in) distributions from consolidated subsidiaries, net | 175.7 | 8.9 | |
Net cash used in investing activities | 178.2 | 29.4 | |
Cash flows from financing activities: | |||
Borrowings under line of credit | 400 | 100 | |
Repayment of lines of credit | (50) | ||
Borrowings under investment debt | 0 | 0 | |
Repayment of investment debt | 0 | 0 | |
Debt issue costs | (0.1) | (0.2) | |
Costs associated with KWE transaction | 0 | ||
Repurchase and retirement of common stock | 0 | 0 | |
Dividends paid | 0 | 0 | |
Acquisition of KWE shares from noncontrolling interest holders | 0 | 0 | |
Contributions from noncontrolling interests, excluding KWE | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | |
Net cash provided by financing activities | 349.9 | 99.8 | |
Effect of currency exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net change in cash and cash equivalents | 304.4 | (9.1) | |
Cash and cash equivalents, beginning of period | 106 | 80.2 | |
Cash and cash equivalents, end of period | 410.4 | 71.1 | |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash from (used in) operating activities | 19.1 | 56.3 | |
Cash flows from investing activities: | |||
Additions to loans | 0 | (4.5) | |
Collections of loans | 6.4 | 4.9 | |
Net proceeds from sale of real estate | 108.4 | 3.4 | |
Purchases of and additions to real estate | (166.8) | (51.5) | |
Proceeds from settlement of foreign derivative contracts | 0 | 0 | |
Purchases of foreign derivative contracts | 0 | 0 | |
Investment in marketable securities | (0.4) | (0.7) | |
Proceeds from sale of marketable securities | 0.2 | ||
Distributions from unconsolidated investments | 53.6 | 13.5 | |
Contributions to unconsolidated investments | (30.2) | (32.7) | |
(Investments in) distributions from consolidated subsidiaries, net | (32.8) | (44.4) | |
Net cash used in investing activities | (61.6) | (112) | |
Cash flows from financing activities: | |||
Borrowings under line of credit | 0 | 0 | |
Repayment of lines of credit | 0 | ||
Borrowings under investment debt | 77 | 66.4 | |
Repayment of investment debt | (34.4) | (18.4) | |
Debt issue costs | 0 | (0.6) | |
Costs associated with KWE transaction | 0 | ||
Repurchase and retirement of common stock | 0 | 0 | |
Dividends paid | 0 | 0 | |
Acquisition of KWE shares from noncontrolling interest holders | 0 | 0 | |
Contributions from noncontrolling interests, excluding KWE | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | |
Net cash provided by financing activities | 42.6 | 47.4 | |
Effect of currency exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net change in cash and cash equivalents | 0.1 | (8.3) | |
Cash and cash equivalents, beginning of period | 45.4 | 37 | |
Cash and cash equivalents, end of period | 45.5 | 28.7 | |
Non-guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash from (used in) operating activities | 270.5 | 92.7 | |
Cash flows from investing activities: | |||
Additions to loans | 0 | 0 | |
Collections of loans | 0 | 133.9 | |
Net proceeds from sale of real estate | 134.6 | 180 | |
Purchases of and additions to real estate | (118.1) | (396) | |
Proceeds from settlement of foreign derivative contracts | 0 | 0 | |
Purchases of foreign derivative contracts | 0 | 0 | |
Investment in marketable securities | 0 | 0 | |
Proceeds from sale of marketable securities | 0 | ||
Distributions from unconsolidated investments | 15.4 | 21.7 | |
Contributions to unconsolidated investments | (6.5) | (11.9) | |
(Investments in) distributions from consolidated subsidiaries, net | (219.6) | (38.5) | |
Net cash used in investing activities | (194.2) | (110.8) | |
Cash flows from financing activities: | |||
Borrowings under line of credit | 0 | 0 | |
Repayment of lines of credit | 0 | ||
Borrowings under investment debt | 89.8 | 410.1 | |
Repayment of investment debt | (66.2) | (79.1) | |
Debt issue costs | 0 | (2.9) | |
Costs associated with KWE transaction | 0 | ||
Repurchase and retirement of common stock | 0 | 0 | |
Dividends paid | 0 | 0 | |
Acquisition of KWE shares from noncontrolling interest holders | (3.3) | (67.9) | |
Contributions from noncontrolling interests, excluding KWE | 22.7 | 12.9 | |
Distributions to noncontrolling interests | (76.2) | (73.5) | |
Net cash provided by financing activities | (33.2) | 199.6 | |
Effect of currency exchange rate changes on cash and cash equivalents | 31.5 | (39.7) | |
Net change in cash and cash equivalents | 74.6 | 141.8 | |
Cash and cash equivalents, beginning of period | 734.3 | 614.4 | |
Cash and cash equivalents, end of period | $ 808.9 | $ 756.2 | |
[1] | See discussion of non-cash effects in notes to statement of cash flows. |