What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to inform investors about the completion of a "Conversion" and to provide updated information regarding KKR's capital stock, risk factors, financial statements (pro forma), and U.S. federal tax implications. It also details changes in KKR's accounting policies for recognizing carried interest and presenting restricted cash.

How does the change in accounting policy for carried interest affect KKR's reported financials?

Effective January 1, 2018, KKR combined carried interest and general partner capital interest from unconsolidated investment funds into a single unit recognized in Revenues. This resulted in a reclassification of approximately $275.0 million for 2017 and $131.9 million for 2016 from 'Net Gains (Losses) from Investment Activities' to 'Revenues.' Importantly, this change did not impact KKR's net income for those prior periods.

What is the impact of adopting the new guidance on restricted cash?

KKR adopted new FASB guidance requiring restricted cash and restricted cash equivalents to be included in the total cash and cash equivalents balance on the statement of cash flows. This affects the presentation of cash flows from operating and investing activities by reclassifying certain amounts, and requires additional disclosures about the nature of restrictions on cash.

Where can I find more details about the "Conversion" mentioned in the filing?

More details about the "Conversion" can be found in the exhibits attached to this 8-K filing. Specifically, Exhibit 99.1 provides a Description of Capital Stock, Exhibit 99.2 contains updated Risk Factors, Exhibit 99.3 presents Unaudited Pro Forma Financial Information, and Exhibit 99.4 outlines Material United States Federal Income Tax Considerations.

KKR & Co. Inc. 8-K SEC Disclosure

Summary

KKR & Co. Inc. filed an 8-K on July 2, 2018, to report on several key financial and structural updates. The primary focus is the "Completion of the Conversion," which is detailed through various exhibits including a description of capital stock, updated risk factors, pro forma financial information, and U.S. federal tax considerations. These documents collectively inform investors about the implications of the conversion on KKR's capital structure and its tax treatment. Additionally, the filing announces a change in accounting policy effective January 1, 2018, related to the recognition of carried interest and general partner capital interest from unconsolidated investment funds. KKR will now combine these as a single unit recognized in Revenues. The company also adopted new FASB guidance regarding the classification and presentation of restricted cash in its statements of cash flows, requiring the inclusion of restricted cash in cash equivalents and specific reconciliations. These changes, while affecting presentation, are noted to have no impact on net income for prior periods.

Key Highlights

1KKR filed an 8-K detailing the completion of a "Conversion," providing updated disclosures on capital stock, risk factors, pro forma financials, and tax considerations.
2The company has updated its risk factors to reflect the implications of the Conversion.
3A change in accounting policy for carried interest and general partner capital interest from unconsolidated funds is effective January 1, 2018.
4Under the new accounting policy, carried interest and general partner capital interest will be combined and recognized in Revenues.
5For the years ended December 31, 2017, and 2016, approximately $275.0 million and $131.9 million, respectively, would be reclassified from Net Gains (Losses) to Revenues due to this accounting change.
6KKR adopted new FASB guidance (ASU No. 2016-18) on the presentation of restricted cash in the statement of cash flows, effective January 1, 2018.
7The adoption of the restricted cash guidance requires including restricted cash in cash equivalents and disclosing reconciliations, impacting the presentation of cash flows from operating and investing activities.
8The filing notes that the accounting changes had no impact on KKR's net income for the 2017 and 2016 fiscal years.

KKR & Co. Inc. 8-K Report, Corporate Update (Jul 2, 2018)

Summary

Key Highlights

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