GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Guarantor and Nonguarantor Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2013 (Dollars in millions)
	Parent		Kennedy-Wilson, Inc.		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Elimination			Consolidated Total
Assets
Cash and cash equivalents	$	—	$	48.2	$	77.2	$	52.8	$	—		$	178.2
Accounts receivable	—		0.2		1.9		3.1		—			5.2
Accounts receivable — related parties	—		0.9		5.1		5.4		—			11.4
Intercompany receivables	—		9.0		—		—		(9.0		)	—
Notes receivable	—		0.7		51.2		0.8		—			52.7
Notes receivable — related parties	—		1.6		2.5		—		—			4.1
Intercompany loans receivable	—		57.4		—		—		(57.4		)	—
Real estate, net of accumulated depreciation	—		—		145.3		523.5		—			668.8
Investments in joint ventures	—		7.5		563.3		180.6		—			751.4
Investments in and advances to consolidated subsidiaries	775.1		1,141.9		326.6		—		(2,243.6		)	—
Investment in loan pool participations	—		—		34.7		—		—			34.7
Other assets	—		20.9		14.2		33.3		—			68.4
Goodwill	—		—		17.2		6.7		—			23.9
Total Assets	$	775.1	$	1,288.3	$	1,239.2	$	806.2	$	(2,310.0	)	$	1,798.8
Liabilities
Accounts payable	$	—	$	0.3	$	0.8	$	1.5	$	—		$	2.6
Accrued expenses and other liabilities	6.8		23.1		14.2		20.2		—			64.3
Intercompany payables	—		—		—		9.0		(9.0		)	—
Accrued salaries and benefits	—		22.5		2.2		7.5		—			32.2
Deferred tax liability	—		18.3		5.7		0.1		—			24.1
Senior notes payable	—		409.0		—		—		—			409.0
Intercompany loans payable	—		—		—		57.4		(57.4		)	—
Mortgage loans and notes payable	—		—		74.4		333.3		—			407.7
Junior subordinated debentures	—		40.0		—		—		—			40.0
Total liabilities	6.8		513.2		97.3		429.0		(66.4		)	979.9
Equity
Kennedy-Wilson Holdings, Inc. shareholders' equity	768.3		775.1		1,141.9		326.6		(2,243.6		)	768.3
Noncontrolling interests	—		—		—		50.6		—			50.6
Total equity	768.3		775.1		1,141.9		377.2		(2,243.6		)	818.9
Total liabilities and equity	$	775.1	$	1,288.3	$	1,239.2	$	806.2	$	(2,310.0	)	$	1,798.8

CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2012 (Dollars in millions)
	Parent		Kennedy-Wilson, Inc.		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Elimination			Consolidated Total
Assets
Cash and cash equivalents	$	—	$	64.5	$	38.5		$	17.9	$	—		$	120.9
Short term investments	—		10.0		—			—		—			10.0
Accounts receivable	—		0.4		2.1			1.1		—			3.6
Accounts receivable — related parties	—		0.2		4.8			17.4		—			22.4
Intercompany receivables	—		3.3		—			—		(3.3		)	—
Notes receivable	—		1.9		133.8			0.9		—			136.6
Intercompany loans receivable	—		39.6		—			—		(39.6		)	—
Real estate, net of accumulated depreciation	—		—		93.9			195.5		—			289.4
Investments in joint ventures	—		5.7		450.2			87.3		—			543.2
Investments in and advances to consolidated subsidiaries	514.3		873.7		142.4			—		(1,530.4		)	—
Investment in loan pool participations	—		—		95.6			—		—			95.6
Other assets	—		18.4		11.6			8.1		—			38.1
Goodwill	—		—		17.2			6.8		—			24.0
Total Assets	$	514.3	$	1,017.7	$	990.1		$	335.0	$	(1,573.3	)	$	1,283.8
Liabilities
Accounts payable	$	—	$	0.8	$	0.3		$	0.7	$	—		$	1.8
Accrued expenses and other liabilities	—		14.9		7.2			7.3		—			29.4
Intercompany payables	—		—		—			3.3		(3.3		)	—
Accrued salaries and benefits	4.7		17.9		1.6			0.8		—			25.0
Deferred tax liability	—		20.2		2.3			0.2		—			22.7
Senior notes payable	—		409.6		—			—		—			409.6
Intercompany loans payable	—		—		—			39.6		(39.6		)	—
Mortgage loans payable	—		—		112.1			124.4		—			236.5
Junior subordinated debentures	—		40.0		—			—		—			40.0
Total liabilities	4.7		503.4		123.5			176.3		(42.9		)	765.0
Equity
Kennedy-Wilson Holdings, Inc. shareholders' equity	509.6		514.3		873.8			142.4		(1,530.4		)	509.7
Noncontrolling interests	—		—		(7.2		)	16.3		—			9.1
Total equity	509.6		514.3		866.6			158.7		(1,530.4		)	518.8
Total liabilities and equity	$	514.3	$	1,017.7	$	990.1		$	335.0	$	(1,573.3	)	$	1,283.8

Consolidating Statement of Operations

CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Revenue
Management and leasing fees	$	—		$	—		$	5.6		$	12.5		$	—		$	18.1
Management and leasing fees—related party	—			—			16.7			19.3			—			36.0
Commissions	—			0.4			2.6			1.0			—			4.0
Commissions—related party	—			—			2.0			8.0			—			10.0
Rental and other income	—			0.1			6.7			36.2			—			43.0
Sale of real estate	—			—			10.1			—			—			10.1
Total revenue	—			0.5			43.7			77.0			—			121.2
Operating expenses
Commission and marketing expenses	—			0.3			2.9			0.4			—			3.6
Rental operating expense	—			—			3.5			15.4			—			18.9
Cost of real estate sold	—			—			7.9			—			—			7.9
Compensation and related expenses	7.5			31.9			14.8			22.5			—			76.7
General and administrative	0.3			9.4			5.1			9.8			—			24.6
Depreciation and amortization	—			0.9			4.8			11.7			—			17.4
Total operating expenses	7.8			42.5			39.0			59.8			—			149.1
Equity in joint venture income	—			2.9			40.5			(13.6		)	—			29.8
Interest income from loan pool participations and notes receivable	—			—			13.5			—			—			13.5
Income (loss) from consolidated subsidiaries	21.7			105.4			51.3			—			(178.4		)	—
Operating income (loss)	13.9			66.3			110.0			3.6			(178.4		)	15.4
Non-operating income (expense)
Interest income	—			0.1			0.2			—			—			0.3
Interest income—related party	—			0.3			—			—			—			0.3
Acquisition related gains	—			—			—			56.6			—			56.6
Acquisition-related expenses	—			(0.2		)	(0.4		)	(1.0		)	—			(1.6		)
Interest expense - corporate debt	—			(39.9		)	—			—			—			(39.9		)
Interest expense - property level debt	—			—			(1.8		)	(10.0		)	—			(11.8		)
Realized foreign currency exchange gain (loss)	—			—			(2.8		)	—			—			(2.8		)
Income (loss) from continuing operations before benefit (provision for) from income taxes	13.9			26.6			105.2			49.2			(178.4		)	16.5
(Provision for) benefit from income taxes	—			(4.9		)	—			2.0			—			(2.9		)
Income (loss) from continuing operations	13.9			21.7			105.2			51.2			(178.4		)	13.6
Loss from discontinued operations, net of income taxes	—			—			—			(0.3		)	—			(0.3		)
Loss from sale of real estate, net of income taxes	—			—			0.2			0.4			—			0.6
Net income (loss)	13.9			21.7			105.4			51.3			(178.4		)	13.9
Net loss attributable to the noncontrolling interests	—			—			—			(20.3		)	—			(20.3		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc.	13.9			21.7			105.4			31.0			(178.4		)	(6.4		)
Preferred stock dividends and accretion of issuance costs	(8.1		)	—			—			—			—			(8.1		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	5.8		$	21.7		$	105.4		$	31.0		$	(178.4	)	$	(14.5	)

CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2012 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Revenue
Management and leasing fees	$	—		$	0.4		$	9.3		$	6.1		$	—		$	15.8
Management and leasing fees — related party	—			—			10.2			14.3			—			24.5
Commissions	—			0.5			2.0			2.5			—			5.0
Commissions — related party	—			—			3.0			5.0			—			8.0
Rental and other income	—			—			1.3			7.2			—			8.5
Sale of real estate	—			—			2.3			—			—			2.3
Total revenue	—			0.9			28.1			35.1			—			64.1
Operating expenses
Commission and marketing expenses	—			0.3			3.6			0.7			—			4.6
Rental operating expenses	—			—			1.3			3.2			—			4.5
Cost of real estate sold	—			—			2.2			—			—			2.2
Compensation and related expenses	8.1			25.7			11.6			10.4			—			55.8
General and administrative	—			9.8			3.9			5.8			—			19.5
Depreciation and amortization	—			0.3			0.9			3.7			—			4.9
Total operating expenses	8.1			36.1			23.5			23.8			—			91.5
Equity in joint venture income	—			1.5			15.0			5.0			—			21.5
Interest income from loan pool participations and notes receivable	—			—			9.2			—			—			9.2
Income from consolidated subsidiaries	15.0			66.3			38.3			0.1			(119.7		)	—
Operating income (loss)	6.9			32.6			67.1			16.4			(119.7		)	3.3
Non-operating income (expense)
Interest income	—			0.1			—			—			—			0.1
Interest income — related party	—			2.8			—			—			—			2.8
Acquisition related gain	—			—			—			25.5			—			25.5
Gain on sale of marketable securities	—			4.3			—			—			—			4.3
Acquisition-related expenses	—			—			(0.1		)	(0.6		)	—			(0.7		)
Interest expense - corporate debt	—			(25.6		)	(0.5		)	—			—			(26.1		)
Interest expense - property level debt	—			—			—			(2.5		)	—			(2.5		)
Income (loss) before benefit from income taxes	6.9			14.2			66.5			38.8			(119.7		)	6.7
Benefit from income taxes	—			0.7			—			(0.5		)	—			0.2
Net income (loss) from continuing operations	6.9			14.9			66.5			38.3			(119.7		)	6.9
Income from discontinued operations, net of income taxes	—			—			—			—			—			—
(Loss) gain from sale of real estate, net of income taxes	—			—			(0.2		)	—			—			(0.2		)
Net income (loss)	6.9			14.9			66.3			38.3			(119.7		)	6.7
Net income attributable to the noncontrolling interests	—			—			(0.3		)	(2.2		)	—			(2.5		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc.	6.9			14.9			66.0			36.1			(119.7		)	4.2
Preferred dividends and accretion of preferred stock issuance costs	(8.1		)	—			—			—			—			(8.1		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(1.2	)	$	14.9		$	66.0		$	36.1		$	(119.7	)	$	(3.9	)

CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2011 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries (1)			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Revenue
Management and leasing fees	$	—		$	0.7		$	3.4		$	8.5		$	—		$	12.6
Management and leasing fees — related party	—			—			13.3			1.2			—			14.5
Commissions	—			3.3			0.9			1.6			—			5.8
Commissions — related party	—			—			5.3			18.9			—			24.2
Rental and other income	—			—			1.1			4.0			—			5.1
Sale of real estate	—			—			0.4			—			—			0.4
Total revenue	—			4.0			24.4			34.2			—			62.6
Operating expenses
Commission and marketing expenses	—			0.9			2.7			0.4			—			4.0
Rental operating expenses	—			—			1.5			1.8			—			3.3
Cost of real estate sold	—			—			0.4			—			—			0.4
Compensation and related expenses	5.1			18.1			11.8			6.1			—			41.1
General and administrative	—			9.0			3.2			2.3			—			14.5
Depreciation and amortization	—			0.2			0.5			2.1			—			2.8
Total operating expenses	5.1			28.2			20.1			12.7			—			66.1
Equity in joint venture income	—			0.4			9.9			2.2			—			12.5
Interest income from loan pool participations and notes receivable	—			—			7.9			0.1			—			8.0
Income (loss) from consolidated subsidiaries	12.5			51.1			28.8			—			(92.4		)	—
Operating income	7.4			27.3			50.9			23.8			(92.4		)	17.0
Non-operating income (expense)
Interest income	—			0.2			0.2			—			—			0.4
Interest income — related party	—			2.0			—			—			—			2.0
Acquisition related gain	—			—			—			6.3			—			6.3
Interest expense - corporate debt	—			(19.0		)	—			—			—			(19.0		)
Interest expense - property level debt	—			—			(0.3		)	(1.3		)	—			(1.6		)
Income before benefit from income taxes	7.4			10.5			50.8			28.8			(92.4		)	5.1
Benefit from income taxes	—			2.0			—			—			—			2.0
Net income (loss) from continuing operations	7.4			12.5			50.8			28.8			(92.4		)	7.1
Income from discontinued operations, net of income taxes	—			—			—			—			—			—
(Loss) gain from sale of real estate, net of income taxes	—			—			0.4			—			—			0.4
Net income (loss)	7.4			12.5			51.2			28.8			(92.4		)	7.5
Net income attributable to the noncontrolling interests	—			(0.1		)	(0.4		)	(0.7		)	—			(1.2		)
Net income attributable to Kennedy-Wilson Holdings, Inc.	7.4			12.4			50.8			28.1			(92.4		)	6.3
Preferred dividends and accretion of preferred stock issuance costs	(8.7		)	—			—			—			—			(8.7		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(1.3	)	$	12.4		$	50.8		$	28.1		$	(92.4	)	$	(2.4	)

Consolidated Statement of Comprehensive Income

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Net Income	$	13.9		$	21.7		$	105.4		$	51.3		$	(178.4	)	$	13.9
Other comprehensive income (loss), net of tax:
Unrealized foreign currency translation gain (loss)	(9.3		)	(9.3		)	(10.0		)	0.8			18.5			(9.3		)
Amounts reclassified from accumulated other comprehensive income	2.8			2.8			2.8			—			(5.6		)	2.8
Unrealized forward contract forward currency gain (loss)	3.1			3.1			5.0			—			(8.1		)	3.1
Total other comprehensive income (loss) for the period	$	(3.4	)	$	(3.4	)	$	(2.2	)	$	0.8		$	4.8		$	(3.4	)
Comprehensive income	10.5			18.3			103.2			52.1			(173.6		)	10.5
Comprehensive income attributable to noncontrolling interests	—			—			—			(20.3		)	—			(20.3		)
Comprehensive income attributable to Kennedy-Wilson Holdings, Inc.	$	10.5		$	18.3		$	103.2		$	31.8		$	(173.6	)	$	(9.8	)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2012 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Net Income (loss)	$	6.9		$	14.9		$	66.3		$	38.3		$	(119.7	)	$	6.7
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on marketable securities	3.3			3.3			—			—			(3.3		)	3.3
Unrealized foreign currency translation gain (loss)	(1.5		)	(1.5		)	(2.2		)	(0.3		)	4.0			(1.5		)
Unrealized forward contract forward currency gain (loss)	5.7			5.7			6.4			—			(12.1		)	5.7
Total other comprehensive income (loss) for the period	7.5			7.5			4.2			(0.3		)	(11.4		)	7.5
Comprehensive income (loss)	$	14.4		$	22.4		$	70.5		$	38.0		$	(131.1	)	$	14.2
Comprehensive income attributable to noncontrolling interests	—			—			—			(2.6		)	—			(2.6		)
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc.	$	14.4		$	22.4		$	70.5		$	35.4		$	(131.1	)	$	11.6

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2011 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Net Income (loss)	$	7.4		$	12.5		$	51.2		$	28.8		$	(92.4	)	$	7.5
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on marketable securities	(3.2		)	(3.2		)	—			—			3.2			(3.2		)
Unrealized foreign currency translation gain (loss)	1.5			1.5			2.0			—			(3.5		)	1.5
Unrealized forward contract forward currency gain (loss)	(2.3		)	(2.3		)	(2.3		)	—			4.6			(2.3		)
Total other comprehensive income (loss) for the period	(4.0		)	(4.0		)	(0.3		)	—			4.3			(4.0		)
Comprehensive income (loss)	$	3.4		$	8.5		$	50.9		$	28.8		$	(88.1	)	$	3.5
Comprehensive income attributable to noncontrolling interests	—			(0.1		)	(0.4		)	(0.6		)	—			(1.1		)
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc.	$	3.4		$	8.4		$	50.5		$	28.2		$	(88.1	)	$	2.4

Condensed Consolidated Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidated Total
Net cash provided by operating activities	$	0.6		$	(67.0	)	$	47.6		$	50.1		$	31.3
Cash flows from investing activities:
Additions to notes receivable	—			(31.4		)	(19.6		)	—			(51.0		)
Settlements of notes receivable	—			1.2			38.1			0.1			39.4
Additions to notes receivable—related party	—			(8.2		)	(2.5		)	—			(10.7		)
Settlements of notes receivable—related party	—			6.6			—			—			6.6
Sale of participation interests	—			—			3.8			—			3.8
Sale of participation interests—related party	—			—			2.8			—			2.8
Capitalized development costs	—			(1.4		)	—			—			(1.4		)
Non refundable escrow deposits	—			(4.0		)	—			—			(4.0		)
Net proceeds from sale of real estate	—			—			9.8			0.3			10.1
Purchases of and additions to real estate	—			—			(62.4		)	(106.1		)	(168.5		)
Investment in marketable securities	—			—			(3.7		)	—			(3.7		)
Short term investment	—			10.0			—			—			10.0
Investing distributions from joint ventures	—			0.4			73.9			7.2			81.5
Contributions to joint ventures	—			(2.3		)	(195.3		)	(125.1		)	(322.7		)
Investing distributions from loan pool participation	—			—			93.9			—			93.9
Contributions to loan pool participation	—			—			(34.9		)	—			(34.9		)
(Investments in) distributions from consolidated subsidiaries, net	(262.6		)	104.4			43.8			114.4			—
Net cash (used in) provided by investing activities	(262.6		)	75.3			(52.3		)	(109.2		)	(348.8		)
Cash flow from financing activities:
Borrowings under lines of credit	—			125.0			—			—			125.0
Repayment of lines of credit	—			(125.0		)	—			—			(125.0		)
Borrowings under mortgage loans payable	—			—			41.1			71.4			112.5
Repayment of mortgage loans payable	—			—			—			(1.7		)	(1.7		)
Debt issue costs	—			(1.3		)	(0.3		)	(0.6		)	(2.2		)
Issuance of common stock	275.9			—			—			—			275.9
Repurchase of common stock	(3.8		)	—			—			—			(3.8		)
Repurchase of warrants	(1.4		)	—			—			—			(1.4		)
Exercise of warrants	15.4			—			—			—			15.4
Dividends paid	(24.1		)	—			—			—			(24.1		)
Contributions from noncontrolling interests	—			—			—			1.4			1.4
Distributions to noncontrolling interests	—			—			—			(0.6		)	(0.6		)
Intercompany receivables, net	—			(23.5		)	—			23.5			—
Net cash provided by (used in) financing activities	262.0			(24.8		)	40.8			93.4			371.4
Effect of currency exchange rate changes on cash and cash equivalents	—			0.2			2.6			0.6			3.4
Net change in cash and cash equivalents	—			(16.3		)	38.7			34.9			57.3
Cash and cash equivalents, beginning of year	—			64.5			38.5			17.9			120.9
Cash and cash equivalents, end of year	$	—		$	48.2		$	77.2		$	52.8		$	178.2

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2012 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidated Total
Cash flows (used in) provided by operating activities:	$	(0.6	)	$	(59.1	)	$	82.2		$	(5.8	)	$	16.7
Cash flows from investing activities:
Additions to notes receivable	—			—			(167.9		)	—			(167.9		)
Settlements of notes receivable	—			0.2			6.8			0.1			7.1
Additions to notes receivable - related party	—			(17.1		)	—			—			(17.1		)
Settlements of notes receivable - related party	—			9.1			—			—			9.1
Net proceeds from sale of real estate	—			18.7			—			—			18.7
Purchases of and additions to real estate	—			—			(33.8		)	(85.2		)	(119.0		)
Short term investment	—			(10.0		)	—			—			(10.0		)
Proceeds from sale of marketable securities	—			34.1			—			—			34.1
Investing distributions from joint ventures	—			—			38.0			0.7			38.7
Contributions to joint ventures	—			(1.2		)	(177.3		)	(0.1		)	(178.6		)
Investing distributions from loan pool participation	—			—			58.1			—			58.1
Contributions to loan pool participations	—			—			(72.9		)	—			(72.9		)
(Investments in) distributions from consolidated subsidiaries, net	(82.1		)	(116.0		)	194.6			3.5			—
Net cash (used in) provided by investing activities	(82.1		)	(82.2		)	(154.4		)	(81.0		)	(399.7		)
Cash flow from financing activities:
Borrowings under senior notes payable	—			160.3			—			—			160.3
Borrowings under lines of credit	—			85.8			—			—			85.8
Repayment of lines of credit	—			(85.8		)	—			—			(85.8		)
Borrowings under mortgage loans payable	—			—			108.2			49.5			157.7
Debt issue costs	—			(7.3		)	—			—			(7.3		)
Issuance of common stock	106.2			—			—			—			106.2
Repurchase of warrants	(1.6		)	—			—			—			(1.6		)
Dividends paid	(21.9		)	—			—			—			(21.9		)
Acquisitions of noncontrolling interests	—			—			—			(0.5		)	(0.5		)
Contributions from noncontrolling interests	—			—			—			0.4			0.4
Distributions from noncontrolling interests	—			—			—			(4.9		)	(4.9		)
Intercompany receivables, net	—			(42.9		)	—			42.9			—
Net cash provided by financing activities	82.7			110.1			108.2			87.4			388.4
Effect of currency exchange rate changes on cash and cash equivalents	—			(0.1		)	—			(0.3		)	(0.4		)
Net change in cash and cash equivalents	—			(31.3		)	36.0			0.3			5.0
Cash and cash equivalents, beginning of year	—			95.8			2.5			17.6			115.9
Cash and cash equivalents, end of year	$	—		$	64.5		$	38.5		$	17.9		$	120.9

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2011 (Dollars in millions)
	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries (1)			Non-guarantor Subsidiaries			Consolidated Total
Cash flows (used in) provided by operating activities:	$	—		$	(32.0	)	$	11.1		$	24.3		$	3.4
Cash flows from investing activities:
Additions to notes receivable	—			—			(6.1		)	—			(6.1		)
Settlements of notes receivable	—			—			3.6			—			3.6
Additions to notes receivable - related party	—			(35.3		)	—			—			(35.3		)
Settlements of notes receivable - related party	—			4.9			—			—			4.9
Net proceeds from sale of real estate	—			—			7.1			—			7.1
Purchases of and additions to real estate	—			—			(2.6		)	(0.1		)	(2.7		)
Investment in marketable securities	—			(32.8		)	—			—			(32.8		)
Distributions from joint ventures	—			—			17.9			5.4			23.3
Contributions to joint ventures	—			(2.0		)	(100.8		)	(2.6		)	(105.4		)
Investing distributions from loan pool participations	—			—			66.4						66.4
Contributions to loan pool participations	—			—			(130.5		)	—			(130.5		)
(Investments in) distributions from consolidated subsidiaries, net	(104.8		)	(44.0		)	146.8			2.0			—
Net cash provided by (used in) investing activities	(104.8		)	(109.2		)	1.8			4.7			(207.5		)
Cash flow from financing activities:
Borrowings under notes payable	—			249.3			—			—			249.3
Repayment of notes payable	—			(20.5		)	—			(4.3		)	(24.8		)
Borrowings under lines of credit	—			74.0			—			—			74.0
Repayment of lines of credit	—			(101.8		)	—			—			(101.8		)
Borrowings under mortgage loans payable	—			—			5.0			12.1			17.1
Repayment of mortgage loans payable	—			—			(15.6		)	(22.0		)	(37.6		)
Debt issue costs	—			(7.2		)	—			(0.5		)	(7.7		)
Issuance of preferred stock	123.1			—			—			—			123.1
Repurchase of common stock	(0.5		)	—			—			—			(0.5		)
Repurchase of warrants	(6.1		)	—			—			—			(6.1		)
Dividends paid	(11.7		)	—			—			—			(11.7		)
Contributions from noncontrolling interests	—			—			1.6			2.8			4.4
Distributions from noncontrolling interests	—			—			(4.8		)	(0.3		)	(5.1		)
Net cash (used in) provided by financing activities	104.8			193.8			(13.8		)	(12.2		)	272.6
Effect of currency exchange rate changes on cash and cash equivalents	—			0.4			0.1			—			0.5
Net change in cash and cash equivalents	—			53.0			(0.8		)	16.8			69.0
Cash and cash equivalents, beginning of year	—			42.8			3.3			0.8			46.9
Cash and cash equivalents, end of year	$	—		$	95.8		$	2.5		$	17.6		$	115.9

⁽¹⁾    Included in the guarantor subsidiaries column above are data for certain subsidiaries that were less than 100% owned for the year ended December 31, 2011 by Kennedy-Wilson at the time the notes were originally issued. Such guarantor subsidiaries were restructured prior to registering the notes such that Kennedy-Wilson now owns 100% of all the guarantor subsidiaries. As a result, in accordance with Rule 3-10(d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for such guarantor subsidiaries.