SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2015 and December 31, 2014 (amounts in thousands):

	Credit				Natural Resources				Other				Reconciling Items				Total Consolidated(1)
As of	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Total assets	$	8,202,142	$	8,438,227	$	297,169	$	300,281	$	227,853	$	213,006	$	—	$	111	$	8,727,164	$	8,951,625

(1) Total consolidated assets as of March 31, 2015 included $96.2 million of noncontrolling interests, of which $56.8 million was related to the Credit segment and $39.4 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

The following tables present the net income (loss) components of our reportable segments reconciled to amounts reflected in the condensed consolidated statements of operations for the three months ended March 31, 2015 and 2014 (amounts in thousands):

	Successor Company
	Credit			Natural  Resources			Other		Reconciling Items(1)			Total Consolidated
	Three months ended March 31, 2015			Three months ended March 31, 2015			Three months ended March 31, 2015		Three months ended March 31, 2015			Three months ended March 31, 2015
Total revenues	$	94,958		$	2,828		$	—	$	—		$	97,786
Total investment costs and expenses	55,967			1,340			346		—			57,653
Total other income (loss)	(65,992		)	(7,753		)	4,581		—			(69,164		)
Total other expenses	16,403			510			155		100			17,168
Income tax expense (benefit)	48			—			299		—			347
Net income (loss)	$	(43,452	)	$	(6,775	)	$	3,781	$	(100	)	$	(46,546	)
Net income (loss) attributable to noncontrolling interests	(5,858		)	(213		)	—		—			(6,071		)
Net income (loss) attributable to KKR Financial Holdings LLC and Subsidiaries	$	(37,594	)	$	(6,562	)	$	3,781	$	(100	)	$	(40,475	)

(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
	Three months ended March 31, 2014		Three months ended March 31, 2014			Three months ended March 31, 2014		Three months ended March 31, 2014			Three months ended March 31, 2014
Total revenues	$	96,562	$	44,028		$	—	$	—		$	140,590
Total investment costs and expenses	45,873		27,576			321		—			73,770
Total other income (loss)	64,516		(5,389		)	13,713		—			72,840
Total other expenses	15,835		1,154			140		14,329			31,458
Income tax expense (benefit)	19		—			—		—			19
Net income (loss)	$	99,351	$	9,909		$	13,252	$	(14,329	)	$	108,183

(1) Consists of certain expenses not allocated to individual segments including incentive fees of $12.9 million and insurance expenses, directors’ expenses and share-based compensation expense which are not allocated to individual segments.