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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING KKR operates through two reportable segments which are presented below and reflect how its chief operating decision-makers allocate resources and assess performance: •Asset Management - the asset management business offers a broad range of investment management services to investment funds, vehicles and accounts (including Global Atlantic) and provides capital markets services to portfolio companies and third parties. This reportable segment also reflects how its business lines operate collaboratively with predominantly a single expense pool. •Insurance - the insurance business is operated by Global Atlantic, which is a leading U.S. retirement and life insurance company that provides a broad suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic primarily generates income by earning a spread between its investment income and the cost of policyholder benefits. KKR’s segment profitability measure used to make operating decisions and assess performance across KKR’s reportable segments is presented prior to giving effect to the allocation of income (loss) among KKR & Co. Inc. and holders of any exchangeable securities, and the consolidation of the investment funds, vehicles and accounts that KKR advises, manages or sponsors (including CFEs). KKR's segment profitability measure excludes: (i) equity-based compensation charges, (ii) amortization of acquired intangibles, (iii) strategic transaction-related charges and (iv) non-recurring items, if any. Strategic transaction-related items arise from corporate actions and consist primarily of (i) impairments, (ii) non-monetary gains or losses on divestitures, (iii) transaction costs from strategic acquisitions, and (iv) depreciation on real estate that KKR owns and occupies. Inter-segment transactions are not eliminated from segment results when management considers those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned by KKR as the investment adviser for Global Atlantic insurance companies and (ii) interest income and expense based on lending arrangements where one or more KKR subsidiaries borrow from a Global Atlantic insurance subsidiary. Inter-segment transactions are recorded by each segment based on the definitive documents that contain arms' length terms and comply with applicable regulatory requirements. Segment operating earnings for the asset management and insurance segments is further defined as follows: •Asset Management Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the Asset Management segment and is comprised of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized Investment Income, and (v) Realized Investment Income Compensation. Asset Management Segment Operating Earnings excludes the impact of: (i) unrealized carried interest, (ii) net unrealized gains (losses) on investments, and (iii) related unrealized carried interest compensation. Management fees earned by KKR as the adviser, manager or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies, are included in Asset Management Segment Operating Earnings. •Insurance Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the Insurance segment and is comprised of: (i) Net Investment Income, (ii) Net Cost of Insurance, (iii) General, Administrative, and Other Expenses, (iv) Income Taxes, and (v) Net Income Attributable to Noncontrolling Interests. The non-operating adjustments made to derive Insurance Segment Operating Earnings excludes the impact of: (i) realized (gains) losses related to asset/liability matching investments strategies, (ii) unrealized investment (gains) losses, (iii) changes in the fair value of derivatives, embedded derivatives, and fair value liabilities for fixed-indexed annuities, indexed universal life contracts and variable annuities, and (iv) the associated income tax effects of all exclusions from Insurance Segment Operating Earnings except for equity-based compensation expense. Insurance Segment Operating Earnings includes (i) realized gains and losses not related to asset/liability matching investments strategies and (ii) the investment management fee expenses that are earned by KKR as the investment adviser of the Global Atlantic insurance companies. Segment Presentation The following tables set forth information regarding KKR's segment results:
|  |  | For the Years Ended December 31,
|  |  |  |  | 2022 |  | 2021 |  | 2020
Asset Management |  |  |  |  |  |  |  |  |
Management Fees (1) |  |  |  |  | $ | 2,656,487 |  |  | $ | 2,071,440 |  |  | $ | 1,441,578 |
Transaction and Monitoring Fees, Net |  |  |  |  | 775,933 |  |  | 1,004,241 |  |  | 632,433 |
Fee Related Performance Revenues |  |  |  |  | 90,665 |  |  | 45,852 |  |  | 39,555 |
Fee Related Compensation |  |  |  |  | (769,735) |  |  | (702,387) |  |  | (486,481) |
Other Operating Expenses |  |  |  |  | (585,999) |  |  | (449,155) |  |  | (346,558) |
Fee Related Earnings |  |  |  |  | 2,167,351 |  |  | 1,969,991 |  |  | 1,280,527 |
Realized Performance Income |  |  |  |  | 2,176,658 |  |  | 2,141,596 |  |  | 1,165,699 |
Realized Performance Income Compensation |  |  |  |  | (1,333,526) |  |  | (1,239,177) |  |  | (697,071) |
Realized Investment Income (2) |  |  |  |  | 1,134,419 |  |  | 1,613,244 |  |  | 644,659 |
Realized Investment Income Compensation |  |  |  |  | (159,003) |  |  | (241,994) |  |  | (106,830) |
Asset Management Segment Operating Earnings |  |  |  |  | $ | 3,985,899 |  |  | $ | 4,243,660 |  |  | $ | 2,286,984 |
Insurance |  |  |  |  |  |  |  |  |
Net Investment Income (1) (2) |  |  |  |  | $ | 4,112,244 |  |  | $ | 3,329,570 |  |  | $ | — |
Net Cost of Insurance |  |  |  |  | (2,415,996) |  |  | (1,566,681) |  |  | — |
General, Administrative and Other |  |  |  |  | (637,718) |  |  | (500,410) |  |  | — |
Pre-tax Insurance Operating Earnings |  |  |  |  | 1,058,530 |  |  | 1,262,479 |  |  | — |
Income Taxes |  |  |  |  | (171,744) |  |  | (199,095) |  |  | — |
Net Income Attributable to Noncontrolling Interest |  |  |  |  | (341,582) |  |  | (410,833) |  |  | — |
Insurance Segment Operating Earnings |  |  |  |  | $ | 545,204 |  |  | $ | 652,551 |  |  | $ | — |
Total Segment Operating Earnings |  |  |  |  | $ | 4,531,103 |  |  | $ | 4,896,211 |  |  | $ | 2,286,984 |
(1) Includes intersegment management fees of $301.3 million and $158.7 million for the years ended December 31, 2022 and 2021, respectively.
(2) Includes intersegment interest expense and income of $145.3 million and $31.0 million for the years ended December 31, 2022 and 2021, respectively.
|  |  |  |  | As of December 31, |  |
|  |  |  |  | 2022 |  | 2021 |  |
Segment Assets: |  |  |  |  |  |  |  |  |
Asset Management |  |  |  |  | $ | 30,373,666 |  |  | $ | 32,306,254 |  |  |
Insurance |  |  |  |  | 173,442,519 |  |  | 166,553,187 |  |  |
Total Segment Assets |  |  |  |  | $ | 203,816,185 |  |  | $ | 198,859,441 |  |  |
|  |  | For the Years Ended December 31,
Noncash expenses excluded from Segment Operating Earnings |  |  |  |  | 2022 |  | 2021 |  | 2020
Equity Based Compensation and Other |  |  |  |  |  |  |  |  |
Asset Management |  |  |  |  | $ | 449,685 |  |  | $ | 261,330 |  |  | $ | 246,395 |
Insurance |  |  |  |  | 152,083 |  |  | 95,344 |  |  | — |
Total Non-cash expenses |  |  |  |  | $ | 601,768 |  |  | $ | 356,674 |  |  | $ | 246,395 |
Reconciliations of Total Segment Amounts The following tables reconcile the Segment Revenues, Segment Operating Earnings, and Segment Assets to their equivalent GAAP measure:
|  |  | For the Years Ended December 31,
|  |  |  |  | 2022 |  | 2021 |  | 2020
Total GAAP Revenues |  |  |  |  | $ | 5,721,195 |  |  | $ | 16,236,148 |  |  | $ | 4,230,891 |
Impact of Consolidation and Other |  |  |  |  | 841,711 |  |  | 808,174 |  |  | 461,244 |
Asset Management Adjustments: |  |  |  |  |  |  |  |  |
Capital Allocation-Based Income (Loss) (GAAP) |  |  |  |  | 2,500,509 |  |  | (6,842,414) |  |  | (2,224,100) |
Realized Carried Interest |  |  |  |  | 1,993,860 |  |  | 1,752,130 |  |  | 1,042,204 |
Realized Investment Income |  |  |  |  | 1,134,419 |  |  | 1,613,244 |  |  | 644,659 |
Capstone Fees |  |  |  |  | (86,665) |  |  | (91,407) |  |  | (81,452) |
Expense Reimbursements |  |  |  |  | (102,927) |  |  | (178,572) |  |  | (149,522) |
Insurance Adjustments: |  |  |  |  |  |  |  |  |
Net Premiums |  |  |  |  | (1,182,461) |  |  | (2,226,078) |  |  | — |
Policy Fees |  |  |  |  | (1,278,736) |  |  | (1,147,913) |  |  | — |
Other Income |  |  |  |  | (139,124) |  |  | (120,213) |  |  | — |
Investment Gains and Losses |  |  |  |  | 472,053 |  |  | 544,357 |  |  | — |
Derivative Gains and Losses |  |  |  |  | 1,072,572 |  |  | (141,513) |  |  | — |
Total Segment Revenues (1) |  |  |  |  | $ | 10,946,406 |  |  | $ | 10,205,943 |  |  | $ | 3,923,924 |
(1)Total Segment Revenues is comprised of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized Performance Income, (v) Realized Investment Income, and (vi) Net Investment Income.
|  |  | For the Years Ended December 31,
|  |  |  |  | 2022 |  | 2021 |  | 2020
Income (Loss) Before Tax (GAAP) |  |  |  |  | $ | (1,059,200) |  |  | $ | 13,648,449 |  |  | $ | 5,726,695 |
Impact of Consolidation and Other |  |  |  |  | (84,554) |  |  | (5,165,795) |  |  | (1,696,897) |
Interest Expense |  |  |  |  | 315,189 |  |  | 250,183 |  |  | 211,037 |
Equity-based compensation - KKR Holdings(1) |  |  |  |  | 119,834 |  |  | 161,283 |  |  | 80,739 |
Asset Management Adjustments: |  |  |  |  |  |  |  |  |
Net Unrealized (Gains) Losses |  |  |  |  | 2,002,082 |  |  | (2,590,280) |  |  | (1,697,740) |
Unrealized Carried Interest |  |  |  |  | 4,231,359 |  |  | (4,043,135) |  |  | (1,070,803) |
Unrealized Carried Interest Compensation (Carry Pool) |  |  |  |  | (1,753,396) |  |  | 1,751,912 |  |  | 467,485 |
Strategic Corporate Transaction-Related Charges(2) |  |  |  |  | 94,629 |  |  | 25,153 |  |  | 20,073 |
Equity-based compensation |  |  |  |  | 210,756 |  |  | 183,100 |  |  | 236,199 |
Equity-based compensation - Performance based |  |  |  |  | 238,929 |  |  | 78,230 |  |  | 10,196 |
Insurance Adjustments:(3) |  |  |  |  |  |  |  |  |
Net (Gains) Losses from Investments and Derivatives |  |  |  |  | 192,743 |  |  | 658,975 |  |  | — |
Strategic Corporate Transaction-Related Charges |  |  |  |  | 24,746 |  |  | 25,711 |  |  | — |
Equity-based and Other Compensation |  |  |  |  | 152,083 |  |  | 95,344 |  |  | — |
Amortization of Acquired Intangibles |  |  |  |  | 17,647 |  |  | 16,176 |  |  | — |
Income Taxes |  |  |  |  | (171,744) |  |  | (199,095) |  |  | — |
Total Segment Operating Earnings |  |  |  |  | $ | 4,531,103 |  |  | $ | 4,896,211 |  |  | $ | 2,286,984 |
(1)Represents equity-based compensation expense in connection with the allocation of units of KKR Holdings, which were not dilutive to common stockholders of KKR & Co. Inc. (2)For the year ended December 31, 2022, strategic corporate transaction-related charges include a $40.7 million realized loss from foreign exchange derivatives that were entered in connection with the acquisition of KJRM and that were settled upon closing in the second quarter of 2022. (3)Amounts include the portion allocable to noncontrolling interests.
| As of
| December 31, 2022 |  | December 31, 2021 |  |
Total GAAP Assets | $ | 277,077,191 |  |  | $ | 264,285,440 |  |  |
Impact of Consolidation and Reclassifications | (71,388,438) |  |  | (61,775,687) |  |  |
Carry Pool Reclassifications | (1,872,568) |  |  | (3,650,312) |  |  |
Total Segment Assets | $ | 203,816,185 |  |  | $ | 198,859,441 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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