SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Kennedy Wilson's business is defined by two core segments: KW Investments and KW Services. KW Investments invests in multifamily, residential and commercial properties as well as loans secured by real estate. KW Services provides a full array of real estate-related services to investors and lenders, with a strong focus on financial institution-based clients. Kennedy Wilson’s segment disclosure with respect to the determination of segment profit or loss and segment assets is based on these services and investments.

KW Investments

Kennedy Wilson invests its capital in real estate assets and loans secured by real estate either on its own or with strategic partners through joint ventures, separate accounts, and commingled funds. We are typically the general partner in these joint ventures with a promoted interest in the profits of our investments beyond our ownership percentage. The Company has an average ownership interest across all investments of approximately 40%. Our equity partners include financial institutions, foundations, endowments, high net worth individuals and other institutional investors. See the "Business Segments" section in Item 1 for a more detailed discussion of the different components of the KW Investments segment.

Substantially all of the revenue—related party was generated via inter-segment activity for the years ended December 31, 2013, 2012 and 2011. 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.

KW Services

KW Services offers a comprehensive line of real estate services for the full lifecycle of real estate ownership to clients that include financial institutions, institutional investors, insurance companies, developers, builders and government agencies. KW Services has four main lines of business: investment management, property services, research and auction and conventional sales. These four business lines generate revenue for us through fees and commissions. See the "Business Segments" section in Item 1 for a more detailed discussion of the different components of the KW Services segment.

We manage over 68 million square feet of properties for institutional clients and individual investors in the United States, Europe, and Japan, which includes assets we have ownership in and third party assets. With 24 offices throughout the United States, the United Kingdom, Ireland, Spain and Japan, we have the capabilities and resources to provide property services to real estate owners as well as the experience, as a real estate investor, to understand client concerns. The managers of KW Services have an extensive track record in their respective lines of business and the real estate community as a whole. Their knowledge and relationships is an excellent driver of business through the services business as well as on the investment front.

Additionally, KW Services plays a critical role in supporting the company's investment strategy by providing local market intelligence and real-time data for evaluating investments, generating proprietary transaction flow and creating value through efficient implementation of asset management or repositioning strategies.

The following tables summarize the income and expense activity by segment for the years ended December 31, 2013, 2012 and 2011 and total assets as of December 31, 2013, 2012 and 2011.

	Year Ended December 31,
(Dollars in millions)	2013			2012			2011
Investments
Rental and other revenue	$	43.0		$	8.5		$	5.1
Sale of real estate	10.1			2.3			0.4
Total revenue	53.1			10.8			5.5
Operating expenses	69.1			36.9			19.3
Depreciation and amortization	15.6			4.4			2.4
Total operating expenses	84.7			41.3			21.7
Equity in joint venture income	29.8			21.5			12.5
Income from loan pool participations and notes receivable	13.5			9.2			8.0
Total operating income	11.7			0.2			4.3
Other non-operating (expense) income and discontinued operations	(3.8		)	6.3			2.4
Acquisition-related gains	56.6			25.5			6.3
Interest expense - property level debt	(11.8		)	(2.5		)	(1.6		)
Income before (provision for) benefit from income taxes	$	52.7		$	29.5		$	11.4

	Year Ended December 31,
(Dollars in millions)	2013		2012		2011
Services
Management fees and commissions	$	22.1	$	20.8	$	18.4
Management fees and commissions - related party	46.0		32.5		38.7
Total revenue	68.1		53.3		57.1
Operating expenses	40.7		33.1		31.4
Depreciation and amortization	1.3		0.2		0.1
Total operating expenses	42.0		33.3		31.5
Total operating income	26.1		20.0		25.6
Income before (provision for) benefit from income taxes	$	26.1	$	20.0	$	25.6

	Year Ended December 31,
(Dollars in millions)	2013			2012			2011
Corporate
Rental and other revenue	$	—		$	—		$	—
Total revenue	—			—			—
Operating expenses	21.9			16.7			12.6
Depreciation and amortization	0.5			0.3			0.2
Total operating expenses	22.4			17.0			12.8
Total operating loss	(22.4		)	(17.0		)	(12.8		)
Interest income	0.3			0.2			0.3
Interest expense - corporate debt	(39.9		)	(26.1		)	(19.0		)
Loss before provision for income taxes	(62.0		)	(42.9		)	(31.5		)
(Provision for) benefit from income taxes	(2.9		)	0.2			2.0
Net loss	$	(64.9	)	$	(42.7	)	$	(29.5	)

	Year Ended December 31,
(Dollars in millions)	2013			2012			2011
Consolidated
Management fees and commissions	$	22.1		$	20.8		$	18.4
Management fees and commissions - related party	46.0			32.5			38.7
Rental and other income	43.0			8.5			5.1
Sale of real estate	10.1			2.3			0.4
Total revenue	121.2			64.1			62.6
Operating expenses	131.7			86.6			63.3
Depreciation and amortization	17.4			4.9			2.8
Total operating expenses	149.1			91.5			66.1
Equity in joint venture income	29.8			21.5			12.5
Interest income from loan pool participations and notes receivable	13.5			9.2			8.0
Operating income	15.4			3.3			17.0
Other non-operating (expense) income and discontinued operations	(3.5		)	6.3			2.8
Acquisition-related gains	56.6			25.5			6.3
Interest expense - corporate debt	(39.9		)	(26.1		)	(19.0		)
Interest expense - property level debt	(11.8		)	(2.5		)	(1.6		)
Income before benefit from income taxes	16.8			6.5			5.5
(Provision for) benefit from income taxes	(2.9		)	0.2			2.0
Net Income	$	13.9		$	6.7		$	7.5

	December 31,
(Dollars in millions)	2013		2012
Assets
Investments	$	1,537.4	$	1,070.6
Services	132.6		105.4
Corporate	128.8		107.8
Total assets	$	1,798.8	$	1,283.8

	December 31,
(Dollars in millions)	2013		2012		2011
Expenditures for long lived assets
Investments	$	168.5	$	119.0	$	2.7

Geographic Information:

The revenue shown in the table below is allocated based upon the country in which services are performed.

	Year Ended December 31,
(Dollars in millions)	2013		2012		2011
United States	$	85.7	$	44.4	$	39.8
United Kingdom	28.1		19.2		22.3
Ireland	7.0		—		—
Japan	0.4		0.5		0.5
Total Revenue	$	121.2	$	64.1	$	62.6