Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

Kennedy-Wilson’s business activities currently consist of services and various types of real estate and loan portfolio investments. Kennedy-Wilson’s segment disclosure with respect to the determination of segment profit or loss and segment assets is based on these services and its various investments.

SERVICES—Kennedy-Wilson provides a full range of commercial and residential real estate services. These services include property management, leasing, brokerage, asset management, auction and various other specialized commercial and residential real estate services.

INVESTMENTS—With joint venture partners and independently, Kennedy-Wilson invests in commercial and residential real estate where Kennedy-Wilson believes value can be added through company expertise or opportunistic investing. Kennedy-Wilson’s current real estate portfolio focuses on commercial buildings and multifamily projects. Kennedy-Wilson also invests in loan portfolios collateralized by various classifications of real estate.

Substantially all of the revenue—related party was generated via inter-segment activity for the three and nine months ended September 30, 2011 and 2010. Generally, this revenue consists of fees earned on investments in which Kennedy-Wilson also has an ownership interest. The amounts representing investments with related parties and non-affiliates are included in the investment segment. No single third party client accounted for 10% or more of Kennedy-Wilson's revenue during any period presented in these financial statements.

There have been no changes in the basis of segmentation or in the basis of measurement of segment profit or loss since the December 31, 2010 financial statements.

The following tables summarize Kennedy-Wilson’s income activity by segment for the three and nine months ended September 30, 2011 and 2010 and balance sheet data as of September 30, 2011 and December 31, 2010:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Services
Management fees and commissions	$	6,191,000		$	4,273,000		$	14,499,000		$	10,866,000
Management fees and commissions - related party	4,919,000			5,863,000			11,738,000			13,908,000
Total revenue	11,110,000			10,136,000			26,237,000			24,774,000
Operating expenses	7,950,000			7,145,000			19,743,000			18,423,000
Depreciation and amortization	33,000			332,000			98,000			373,000
Total operating expenses	7,983,000			7,477,000			19,841,000			18,796,000
Total operating income	3,127,000			2,659,000			6,396,000			5,978,000
Income before provision for income taxes	$	3,127,000		$	2,659,000		$	6,396,000		$	5,978,000
Total assets							$	44,540,000		$	38,780,000
Investments
Sale of real estate	$	—		$	—		$	417,000		$	3,937,000
Rental and other revenue	1,666,000			1,637,000			3,359,000			2,934,000
Total revenue	1,666,000			1,637,000			3,776,000			6,871,000
Operating expenses	4,548,000			8,005,000			13,134,000			16,402,000
Depreciation and amortization	830,000			243,000			1,569,000			708,000
Total operating expenses	5,378,000			8,248,000			14,703,000			17,110,000
Equity in joint venture income	(646,000		)	5,191,000			7,229,000			5,162,000
Income from loan pool participations and notes receivable	1,048,000			4,209,000			5,835,000			7,950,000
Total operating income (loss)	(3,310,000		)	2,789,000			2,137,000			2,873,000
Remeasurement gain	—			—			6,348,000			2,108,000
Gain on early extinguishment of debt	—			—			—			16,670,000
Interest expense	(73,000		)	(283,000		)	(225,000		)	(528,000		)
(Loss) income before provision for income taxes	$	(3,383,000	)	$	2,506,000		$	8,260,000		$	21,123,000
Total assets							$	525,712,000		$	400,519,000
Corporate
Operating expenses	$	2,140,000		$	1,881,000		$	6,528,000		$	9,005,000
Depreciation and amortization	68,000			41,000			161,000			116,000
Total operating expenses	2,208,000			1,922,000			6,689,000			9,121,000
Total operating loss	(2,208,000		)	(1,922,000		)	(6,689,000		)	(9,121,000		)
Interest income	74,000			53,000			264,000			168,000
Interest income - related party	561,000			91,000			970,000			477,000
Loss on early extinguishment of corporate debt	—			(4,788,000		)	—			(4,788,000		)
Interest expense	(6,044,000		)	(1,915,000		)	(13,649,000		)	(5,964,000		)
Loss before provision for income taxes	(7,617,000		)	(8,481,000		)	(19,104,000		)	(19,228,000		)
Benefit from (provision) for income taxes	2,997,000			(383,000		)	2,162,000			(4,335,000		)
Net loss	$	(4,620,000	)	$	(8,864,000	)	$	(16,942,000	)	$	(23,563,000	)
Total assets							$	169,757,000		$	48,549,000

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Consolidated
Management fees and commissions	$	6,191,000		$	4,273,000		$	14,499,000		$	10,866,000
Management fees and commissions - related party	4,919,000			5,863,000			11,738,000			13,908,000
Sale of real estate	—			—			417,000			3,937,000
Rental and other revenue	1,666,000			1,637,000			3,359,000			2,934,000
Total revenue	12,776,000			11,773,000			30,013,000			31,645,000
Operating expenses	14,638,000			17,031,000			39,405,000			43,830,000
Depreciation and amortization	931,000			616,000			1,828,000			1,197,000
Total operating expenses	15,569,000			17,647,000			41,233,000			45,027,000
Equity in joint venture income	(646,000		)	5,191,000			7,229,000			5,162,000
Income from loan pool participations and notes receivable	1,048,000			4,209,000			5,835,000			7,950,000
Total operating income (loss)	(2,391,000		)	3,526,000			1,844,000			(270,000		)
Interest income	74,000			53,000			264,000			168,000
Interest income - related party	561,000			91,000			970,000			477,000
Remeasurement gain	—			—			6,348,000			2,108,000
Gain on early extinguishment of debt	—			—			—			16,670,000
Loss on early extinguishment of debt	—			(4,788,000		)	—			(4,788,000		)
Interest expense	(6,117,000		)	(2,198,000		)	(13,874,000		)	(6,492,000		)
(Loss) income before provision for income taxes	(7,873,000		)	(3,316,000		)	(4,448,000		)	7,873,000
Benefit from (provision) for income taxes	2,997,000			(383,000		)	2,162,000			(4,335,000		)
Net (loss) income	$	(4,876,000	)	$	(3,699,000	)	$	(2,286,000	)	$	3,538,000
Total assets							$	740,009,000		$	487,848,000