XML 62 R33.htm IDEA: XBRL DOCUMENT
v3.22.4

EQUITY | 12 Months Ended
--- | ---
Dec. 31, 2022
Equity [Abstract] |
EQUITY | EQUITY Stockholders' Equity Common Stock The common stock of KKR & Co. Inc. is entitled to vote as provided by its certificate of incorporation, Delaware General Corporation Law and the rules of the NYSE. Subject to preferences that apply to shares of Series C Mandatory Convertible Preferred Stock and any other shares of preferred stock outstanding at the time on which dividends are payable, the holders of common stock are entitled to receive dividends out of funds legally available if the Board of Directors, in its discretion, determines to declare dividends and then only at the times and in the amounts that the Board of Directors may determine. The common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions. Series I and Series II Preferred Stock Except for any distribution required by Delaware law to be made upon a dissolution event, the holders of Series I preferred stock do not have any economic rights to receive dividends. Series I preferred stock is entitled to vote on various matters that may be submitted to vote of the stockholders and the other matters as set forth in the certificate of incorporation. Upon a dissolution event, each holder of Series I preferred stock will be entitled to a payment equal to $0.01 per share of Series I preferred stock. The Series I preferred stock will be eliminated on the Sunset Date (as defined in Note 1 "Organization"), which is scheduled to occur not later than December 31, 2026. The Series II preferred stock was eliminated upon the closing of the Reorganization Mergers. Prior to the Reorganization Mergers, for matters on which common stock was entitled to vote, so long as the ratio at which KKR Group Partnership Units was exchangeable for shares of common stock remains on a one-for-one basis, Series II preferred stock was entitled to vote together with common stock as a single class and on an equivalent basis, except Series II preferred stock was entitled to vote separately as a class on any amendment to the certificate of incorporation that changed certain terms, rights or preferences of Series II preferred stock. Prior to the Reorganization Mergers, each holder of Series II preferred stock was entitled to a payment equal to $0.000000001 per share of Series II preferred stock upon a dissolution event. Series C Mandatory Convertible Preferred Stock On August 14, 2020, KKR & Co. Inc. issued 23,000,000 shares, or $1.15 billion aggregate liquidation preference, of its 6.00% Series C Mandatory Convertible Preferred Stock (the "Series C Mandatory Convertible Preferred Stock"). Unless converted or redeemed earlier in accordance with the terms of the Series C Mandatory Convertible Preferred Stock, each share of Series C Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is expected to be September 15, 2023, into between 1.1662 shares and 1.4285 shares of common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations related to the Series C Mandatory Convertible Preferred Stock. The number of shares of common stock issuable upon conversion will be determined based on the average volume weighted average price per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to September 15, 2023. Dividends on the Series C Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if declared by our Board of Directors, or an authorized committee thereof, at an annual rate of 6.00% on the liquidation preference of $50.00 per share of Series C Mandatory Convertible Preferred Stock, and may be paid in cash or, subject to certain limitations, in shares of common stock or, subject to certain limitations, any combination of cash and shares of common stock. If declared, dividends on the Series C Mandatory Convertible Preferred Stock will be payable quarterly on March 15, June 15, September 15 and December 15 of each year to, and including, September 15, 2023, commencing on December 15, 2020. Upon KKR & Co. Inc.’s voluntary or involuntary liquidation, winding-up or dissolution, each holder of the Series C Mandatory Convertible Preferred Stock would be entitled to receive a liquidation preference in the amount of $50.00 per share of Series C Mandatory Convertible Preferred Stock, plus an amount equal to accumulated and unpaid dividends on such shares, whether or not declared, to, but excluding, the date fixed for liquidation, winding-up or dissolution, to be paid out of KKR & Co. Inc.’s assets legally available for distribution to its stockholders after satisfaction of debt and other liabilities owed to KKR & Co. Inc.’s creditors and holders of shares of its stock ranking senior to the Series C Mandatory Convertible Preferred Stock and before any payment or distribution is made to holders of any stock ranking junior to the Series C Mandatory Convertible Preferred Stock, including, without limitation, common stock. In connection with the issuance of the Series C Mandatory Convertible Preferred Stock, the limited partnership agreement of KKR Group Partnership was amended to provide for preferred units with economic terms designed to mirror those of the Series C Mandatory Convertible Preferred Stock. Share Repurchase Program On February 7, 2023, KKR announced an increase to the total available amount under its repurchase program to $500 million. Prior to this increase, there was approximately $78 million remaining under the program. Under KKR's repurchase program, shares of common stock of KKR & Co. Inc. may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. In addition to the repurchases of common stock, the repurchase program will be used for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity awards granted pursuant to our Equity Incentive Plans representing the right to receive common stock. KKR expects that the program, which has no expiration date, will be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase or retire any specific number of shares of common stock or equity awards, respectively, and the program may be suspended, extended, modified or discontinued at any time. The following table presents KKR & Co. Inc. common stock that has been repurchased or equity awards retired under the repurchase program:
|  |  | For the Years Ended December 31, |
|  |  |  |  | 2022 |  | 2021 |  | 2020 |  |  |  |  |
Shares of common stock repurchased |  |  |  |  | 5,191,174 |  |  | 4,462,533 |  |  | 10,209,673 |  |  |  |  |  |
Equity awards for common stock retired |  |  |  |  | 1,308,501 |  |  | 3,350,874 |  |  | 2,850,094 |  |  |  |  |  |
Change in KKR & Co. Inc.'s Ownership Interest Vesting of restricted holdings units into KKR common stock results in a change in ownership in KKR Group Partnership L.P., while KKR retains a controlling interest, and is accounted for as an equity transaction between the controlling and noncontrolling interests. Additionally, in December 2022, Global Atlantic completed a $500 million equity raise. KKR contributed approximately $423 million, increasing its ownership in Global Atlantic from 61.5% to 63.3%. The change in ownership interest in Global Atlantic, while KKR retained its controlling interest, was accounted for as an equity transaction, which resulted in (i) a reduction in the amount recorded as a noncontrolling interest and a corresponding increase in additional paid-in-capital of approximately $34 million and (ii) an increase in the participation of KKR to the accumulated other comprehensive loss balance for approximately $172 million. The impact of (i) the vesting of restricted holdings units and (ii) the change in ownership in Global Atlantic are included within "Change in KKR & Co. Inc.'s Ownership Interest." Noncontrolling Interests Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings before the closing of the Reorganization Mergers described in Note 1 "Organization." Noncontrolling Interests in Consolidated Entities and Other Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by: (i)third party fund investors in KKR's consolidated funds and certain other entities; (ii)third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015; (iii)certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009; (iv)certain former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; (v)third parties in KKR's Capital Markets business line; (vi)certain current and former employees who hold exchangeable securities; and (vii)third parties in KKR's insurance business including GA Rollover Investors, GA Co-Investors and third party investors in Global Atlantic's consolidated renewable energy entities and certain other entities. Noncontrolling Interests held by KKR Holdings Noncontrolling interests held by KKR Holdings prior to the Reorganization Mergers consisted of economic interests held by principals indirectly in KKR Group Partnership Units. Such principals received financial benefits from KKR's business in the form of distributions received from KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings. These financial benefits were not paid by KKR & Co. Inc. and were borne by KKR Holdings. As described in Note 1 "Organization," KKR completed the Reorganization Mergers on May 31, 2022 and acquired KKR Holdings and all of the KKR Group Partnership Units held by it. The following tables present the calculation of total noncontrolling interests:
| For the Year Ended December 31, 2022
| Noncontrolling Interests in Consolidated Entities and Other |  | Noncontrolling Interests Held by KKR Holdings |  | Total Noncontrolling Interests
Balance at the beginning of the period | $ | 32,043,699 |  |  | $ | 8,430,866 |  |  | $ | 40,474,565 |
Net income (loss) attributable to noncontrolling interests (1) | 127,829 |  |  | (313,019) |  |  | (185,190) |
Other comprehensive income (loss), net of tax (2) | (3,355,059) |  |  | (1,074,414) |  |  | (4,429,473) |
Exchange of KKR Holdings Units to Common Stock (3) | — |  |  | (12,865) |  |  | (12,865) |
Equity-based and other non-cash compensation | 263,891 |  |  | 100,334 |  |  | 364,225 |
Capital contributions | 13,706,821 |  |  | — |  |  | 13,706,821 |
Capital distributions | (6,868,334) |  |  | (171,580) |  |  | (7,039,914) |
Holdings Merger (4) | — |  |  | (6,959,322) |  |  | (6,959,322) |
Change in KKR & Co. Inc.'s Ownership Interest | (140,847) |  |  | — |  |  | (140,847) |
Balance at the end of the period | $ | 35,778,000 |  |  | $ | — |  |  | $ | 35,778,000 |
|  | For the Year Ended December 31, 2021
|  | Noncontrolling Interests in Consolidated Entities and Other |  | Noncontrolling Interests Held by KKR Holdings |  | Total Noncontrolling Interests
Balance at the beginning of the period |  | $ | 20,570,716 |  |  | $ | 6,512,382 |  |  | $ | 27,083,098 |
Net income (loss) attributable to noncontrolling interests (1) |  | 4,910,003 |  |  | 2,714,640 |  |  | 7,624,643 |
Other comprehensive income (loss), net of tax (2) |  | (151,806) |  |  | (91,595) |  |  | (243,401) |
Exchange of KKR Holdings Units to Common Stock(3) |  | — |  |  | (522,474) |  |  | (522,474) |
Equity-based and other non-cash compensation |  | 104,838 |  |  | 161,283 |  |  | 266,121 |
Capital contributions |  | 14,693,564 |  |  | 25 |  |  | 14,693,589 |
Capital distributions |  | (7,141,225) |  |  | (343,395) |  |  | (7,484,620) |
Impact of Acquisition (5) |  | 190,405 |  |  | — |  |  | 190,405 |
Changes in consolidation |  | (1,132,796) |  |  | — |  |  | (1,132,796) |
Balance at the end of the period |  | $ | 32,043,699 |  |  | $ | 8,430,866 |  |  | $ | 40,474,565 |
|  | For the Year Ended December 31, 2020
|  | Noncontrolling Interests in Consolidated Entities and Other |  | Noncontrolling Interests Held by KKR Holdings |  | Total Noncontrolling Interests
Balance at the beginning of the period |  | $ | 13,966,250 |  |  | $ | 5,728,634 |  |  | $ | 19,694,884 |
Net income (loss) attributable to noncontrolling interests (1) |  | 1,907,155 |  |  | 1,207,934 |  |  | 3,115,089 |
Other comprehensive income (loss), net of tax (2) |  | (4,092) |  |  | 12,191 |  |  | 8,099 |
Exchange of KKR Holdings Units to Common Stock (3) |  | — |  |  | (291,525) |  |  | (291,525) |
Equity-based and other non-cash compensation |  | 52,645 |  |  | 80,739 |  |  | 133,384 |
Capital contributions |  | 9,860,609 |  |  | 98 |  |  | 9,860,707 |
Capital distributions |  | (4,950,763) |  |  | (209,776) |  |  | (5,160,539) |
Transfer of interests under common control (6) |  | (21,830) |  |  | 7,445 |  |  | (14,385) |
Transfer of Oil and Gas Interests (See Note 2) |  | — |  |  | (23,358) |  |  | (23,358) |
Changes in consolidation |  | (239,258) |  |  | — |  |  | (239,258) |
Balance at the end of the period |  | $ | 20,570,716 |  |  | $ | 6,512,382 |  |  | $ | 27,083,098 |
(1)Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests formerly held by KKR Holdings. (2)With respect to noncontrolling interests formerly held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units formerly held by KKR Holdings during the reporting period. (3)Calculated based on the proportion of KKR Holdings Units exchanged for KKR & Co. Inc. common stock. The exchange agreement with KKR Holdings provided for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. common stock. (4)Refer to Note 1 "Organization" for further information on the Reorganization Mergers that closed on May 31, 2022, pursuant to which KKR acquired KKR Holdings and all of the KKR Group Partnership Units held by it, and all outstanding KKR Holdings Units were exchanged for KKR & Co. Inc. common stock. (5)Represents other noncontrolling interests at the GA Acquisition Date. (6)KKR acquired KKR Capstone on January 1, 2020. KKR Capstone was consolidated prior to January 1, 2020 and consequently, this transaction was accounted for as an equity transaction. This transaction resulted in an increase to KKR Group Partnership's equity. Accordingly, both KKR's equity and noncontrolling interests held by KKR Holdings increased for their proportionate share of the KKR Capstone equity based on their ownership in KKR Group Partnership on January 1, 2020. Net income (loss) attributable to each of KKR & Co. Inc. common stockholders, KKR Holdings prior to the Reorganization Mergers, and holders of exchangeable securities, with the exception of certain tax assets and liabilities that are directly allocable to KKR & Co. Inc., is attributed based on the percentage of the weighted average KKR Group Partnership Units directly or indirectly held by them. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings prior to the Reorganization Mergers and holders of exchangeable securities, (ii) the periodic exchange of KKR Holdings Units for KKR & Co. Inc. common stock pursuant to the exchange agreement prior to the Reorganization Mergers and (iii) the contribution of certain expenses borne entirely by KKR associated with the Equity Incentive Plans, equity allocations shown in the consolidated statement of changes in equity differ from their respective pro rata ownership interests in KKR's net assets. The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings:
|  |  |  |  |  | For the Years Ended December 31, |  |
|  |  |  |  |  |  |  | 2022 |  | 2021 |  | 2020 |  |
Net income (loss) |  |  |  |  |  |  |  | $ | (1,023,528) |  |  | $ | 12,295,179 |  |  | $ | 5,117,598 |  |  |
(-) Net income (loss) attributable to Redeemable Noncontrolling Interests |  |  |  |  |  |  |  | 2,792 |  |  | 4,060 |  |  | — |  |  |
(-) Net income (loss) attributable to Noncontrolling Interests in consolidated entities and other |  |  |  |  |  |  |  | 127,829 |  |  | 4,910,003 |  |  | 1,907,155 |  |  |
(-) Series A and B Preferred Stock Dividends |  |  |  |  |  |  |  | — |  |  | 36,647 |  |  | 33,364 |  |  |
(-) Series C Mandatory Convertible Preferred Stock Dividends |  |  |  |  |  |  |  | 69,000 |  |  | 69,000 |  |  | 23,191 |  |  |
(+) Income tax expense (benefit) attributable to KKR & Co. Inc. |  |  |  |  |  |  |  | (233,752) |  |  | 1,227,492 |  |  | 545,546 |  |  |
Net income (loss) attributable to KKR & Co. Inc. Common Stockholders and KKR Holdings |  |  |  |  |  |  |  | $ | (1,456,901) |  |  | $ | 8,502,961 |  |  | $ | 3,699,434 |  |  |
Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings |  |  |  |  |  |  |  | $ | (313,019) |  |  | $ | 2,714,640 |  |  | $ | 1,207,934 |  |  |

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI https://asc.fasb.org/topic&trid=2208762 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 6 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration