SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2015

Segment reporting

Schedule showing net income (loss) components and total assets of reportable segments reconciled to amounts reflected in the condensed consolidated financial statements

The following table shows total assets of our reportable segments reconciled to amounts reflected in the condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014 (amounts in thousands):

	Credit				Natural Resources				Other				Reconciling Items				Total Consolidated(1)
As of	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Total assets	$	8,493,315	$	8,438,227	$	290,882	$	300,281	$	253,094	$	213,006	$	—	$	111	$	9,037,291	$	8,951,625

(1) Total consolidated assets as of June 30, 2015 included $93.8 million of noncontrolling interests, of which $57.0 million was related to the Credit segment and $36.8 million was related to the Natural Resources segment. Total consolidated assets as of December 31, 2014 included $100.2 million of noncontrolling interests, of which $62.7 million was related to the Credit segment and $37.4 million was related to the Natural Resources segment.

Successor Company

Segment reporting

Schedule showing net income (loss) components and total assets of reportable segments reconciled to amounts reflected in the condensed consolidated financial statements

	Successor Company
	Credit		Natural Resources			Other		Reconciling Items(1)			Total Consolidated
	Two months ended June 30, 2014		Two months ended June 30, 2014			Two months ended June 30, 2014		Two months ended June 30, 2014			Two months ended June 30, 2014
Total revenues	$	62,311	$	31,930		$	72	$	—		$	94,313
Total investment costs and expenses	35,410		20,057			197		—			55,664
Total other income (loss)	17,113		(4,880		)	8,654		—			20,887
Total other expenses	12,753		1,393			183		35			14,364
Income tax expense (benefit)	24		—			4		—			28
Net income (loss)	$	31,237	$	5,600		$	8,342	$	(35	)	$	45,144

(1) Consists of insurance and directors’ expenses which are not allocated to individual segments.

The following tables present the net income (loss) components of our reportable segments reconciled to amounts reflected in the condensed consolidated statements of operations (amounts in thousands):

	Successor Company
	Credit						Natural Resources						Other				Reconciling Items(1)					Total Consolidated
	Three months ended June 30, 2015			Six months ended June 30, 2015			Three months ended June 30, 2015			Six months ended June 30, 2015			Three months ended June 30, 2015		Six months ended June 30, 2015		Three months ended June 30, 2015		Six months ended June 30, 2015			Three months ended June 30, 2015			Six months ended June 30, 2015
Total revenues	$	90,520		$	185,478		$	6,351		$	9,179		$	8,820	$	8,820	$	—	$	—		$	105,691		$	203,477
Total investment costs and expenses	59,331			115,298			2,706			4,046			413		759		—		—			62,450			120,103
Total other income (loss)	(842		)	(66,834		)	(6,348		)	(14,101		)	15,225		19,806		—		—			8,035			(61,129		)
Total other expenses	12,014			28,417			176			686			79		234		—		100			12,269			29,437
Income tax expense (benefit)	14			62			—			—			715		1,014		—		—			729			1,076
Net income (loss)	$	18,319		$	(25,133	)	$	(2,879	)	$	(9,654	)	$	22,838	$	26,619	$	—	$	(100	)	$	38,278		$	(8,268	)
Net income (loss) attributable to noncontrolling interests	182			(5,676		)	(2,887		)	(3,100		)	—		—		—		—			(2,705		)	(8,776		)
Net income (loss) attributable to KKR Financial Holdings LLC and Subsidiaries	$	18,137		$	(19,457	)	$	8		$	(6,554	)	$	22,838	$	26,619	$	—	$	(100	)	$	40,983		$	508

(1) Consists of insurance and directors’ expenses which are not allocated to individual segments.

Predecessor Company

Segment reporting

Schedule showing net income (loss) components and total assets of reportable segments reconciled to amounts reflected in the condensed consolidated financial statements

	Predecessor Company
	Credit				Natural Resources						Other						Reconciling Items(1)						Total Consolidated
	One month ended April 30, 2014		Four months ended April 30, 2014		One month ended April 30, 2014			Four months ended April 30, 2014			One month ended April 30, 2014			Four months ended April 30, 2014			One month ended April 30, 2014			Four months ended April 30, 2014			One month ended April 30, 2014			Four months ended April 30, 2014
Total revenues	$	37,693	$	134,255	$	17,754		$	61,782		$	21,205		$	21,205		$	—		$	—		$	76,652		$	217,242
Total investment costs and expenses	16,612		62,485		11,339			38,915			104			425			—			—			28,055			101,825
Total other income (loss)	11,530		76,046		(2,734		)	(8,123		)	(25,302		)	(11,589		)	—			—			(16,506		)	56,334
Total other expenses	7,286		23,121		479			1,633			90			230			26,296			40,625			34,151			65,609
Income tax expense (benefit)	127		146		—			—			16			16			—			—			143			162
Net income (loss)	$	25,198	$	124,549	$	3,202		$	13,111		$	(4,307	)	$	8,945		$	(26,296	)	$	(40,625	)	$	(2,203	)	$	105,980

(1) Consists of certain expenses not allocated to individual segments including other expenses comprised of (i) incentive fees of zero and $12.9 million for the one and four months ended April 30, 2014, respectively, and (ii) merger related transaction costs of $22.7 million for both the one and four months ended April 30, 2014. The remaining reconciling items include insurance expenses, directors’ expenses and share-based compensation expense which are not allocated to individual segments.