Guarantor and Non-Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014

Guarantor and Nonguarantor Financial Statements [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2014

(Dollars in millions)	Parent		Kennedy-Wilson, Inc.		Guarantor Subsidiaries		Non-guarantor Subsidiaries			Elimination			Consolidated Total
Assets
Cash held by consolidated investments	$	—	$	—	$	—	$	1,298.7		$	—		$	1,298.7
Cash and cash equivalents	—		248.3		21.6		4.5			—			274.4
Accounts receivable	—		—		18.6		9.6			—			28.2
Loans	—		57.1		182.0		19.8			(56.7		)	202.2
Real estate and acquired in place lease values, net of accumulated depreciation and amortization	—		—		198.6		1,680.3			—			1,878.9
Unconsolidated investments	—		9.6		425.7		184.4			—			619.7
Other assets	—		22.7		38.9		43.5			—			105.1
Investments in and advances to consolidated subsidiaries	959.7		1,405.1		727.3		(1.9		)	(3,090.2		)	—
Total assets	$	959.7	$	1,742.8	$	1,612.7	$	3,238.9		$	(3,146.9	)	$	4,407.2

Liabilities and equity
Liabilities
Accounts payable, accrued expenses and other liabilities	$	9.0	$	37.0	$	29.7	$	79.0		$	—		$	154.7
Senior notes payable	—		706.1		—		56.7			(56.7		)	706.1
Investment debt	—		—		175.0		707.2			—			882.2
Junior subordinated debentures	—		40.0		—		—			—			40.0
Total liabilities	9.0		783.1		204.7		842.9			(56.7		)	1,783.0

Equity
Kennedy-Wilson Holdings, Inc. shareholders' equity	950.7		959.7		1,405.1		727.3			(3,090.2		)	952.6
Noncontrolling interests	—		—		2.9		1,668.7			—			1,671.6
Total equity	950.7		959.7		1,408.0		2,396.0			(3,090.2		)	2,624.2
Total liabilities and equity	$	959.7	$	1,742.8	$	1,612.7	$	3,238.9		$	(3,146.9	)	$	4,407.2

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	$	44.8	$	—		$	170.2
Cash held by consolidated investments	—		—		—		8.0		—			8.0
Accounts receivable	—		1.1		7.0		8.5		—			16.6
Intercompany receivables	—		9.0		—		—		(9.0		)	—
Loans receivable	—		59.7		53.7		0.8		(57.4		)	56.8
Real estate and acquired in place lease values, net of accumulated depreciation	—		—		145.3		542.8		—			688.1
Unconsolidated investments	—		7.5		598.0		180.6		—			786.1
Investments in and advances to consolidated subsidiaries	775.1		1,141.9		326.6		—		(2,243.6		)	—
Other assets	—		20.9		31.4		20.7		—			73.0
Total assets	$	775.1	$	1,288.3	$	1,239.2	$	806.2	$	(2,310.0	)	$	1,798.8


Liabilities
Accounts payable, accrued expense and other liabilities	$	6.8	$	64.2	$	22.9	$	35.2	$	—		129.1
Intercompany payables	—		—		—		9.0		(9.0		)	—
Senior notes payable	—		409.0		—		—		—			409.0
Intercompany loans payable	—		—		—		57.4		(57.4		)	—
Investment debt	—		—		74.4		327.4		—			401.8
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

Consolidating Statement of Operations

CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2014

(Dollars in millions)	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Revenue
Investment management, property services and research fees	$	—		$	0.1		$	13.1		$	—		$	—		$	13.2
Rental and hotel	—			—			3.4			21.9			—			25.3
Sale of real estate	—			—			0.7			10.6			—			11.3
Loans and other	—			0.1			0.5			1.1			—			1.7
Total revenue	—			0.2			17.7			33.6			—			51.5
Operating expenses
Commission and marketing	—			—			0.8			0.2			—			1.0
Rental and hotel operating	—			—			1.5			12.6			—			14.1
Cost of real estate sold	—			—			0.7			9.0			—			9.7
Compensation and related	1.7			9.9			7.5			1.4			—			20.5
General and administrative	—			2.9			4.2			1.1			—			8.2
Depreciation and amortization	—			0.3			2.2			4.8			—			7.3
Total operating expenses	1.7			13.1			16.9			29.1			—			60.8
Income from unconsolidated subsidiaries	—			—			1.7			1.1			—			2.8
Income from consolidated subsidiaries	51.6			81.9			77.0			—			(210.5		)	—
Operating income (loss)	49.9			69.0			79.5			5.6			(210.5		)	(6.5		)
Non-operating income (expense)
Acquisition-related gains	—			—			3.7			80.5			—			84.2
Acquisition-related expenses	—			—			(0.5		)	(3.5		)	—			(4.0		)
Interest expense-investment	—			—			—			(5.3		)	—			(5.3		)
Interest expense-corporate	—			(10.5		)	—			—			—			(10.5		)
Other income / (expense)	—			2.0			(1.2		)	—			—			0.8
Income (loss) before benefit from income taxes	49.9			60.5			81.5			77.3			(210.5		)	58.7
(Provision for) benefit from income taxes	—			(8.8		)	—			—			—			(8.8		)
Net income (loss)	49.9			51.7			81.5			77.3			(210.5		)	49.9
Net (income) loss attributable to the noncontrolling interests	—			—			—			(37.4		)	—			(37.4		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc.	49.9			51.7			81.5			39.9			(210.5		)	12.5
Preferred dividends and accretion of preferred stock issuance costs	(2.0		)	—			—			—			—			(2.0		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	47.9		$	51.7		$	81.5		$	39.9		$	(210.5	)	$	10.5

CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2013

(Dollars in millions)	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Revenue
Investment management, property services, and research fees	$	—		$	—		$	7.0		$	6.6		$	—		$	13.6
Rental and hotel	—			—			1.7			4.7			—			6.4
Sale of real estate	—			—			2.4			—			—			2.4
Loans and other	—			—			0.4			—			—			0.4
Total revenue	—			—			11.5			11.3			—			22.8
Operating expenses
Commission and marketing	—			0.1			0.4			—			—			0.5
Rental and hotel operating	—			—			0.9			2.2			—			3.1
Cost of real estate sold	—			—			1.9			—			—			1.9
Compensation and related	1.8			4.9			3.6			3.3			—			13.6
General and administrative	—			2.2			1.3			1.9			—			5.4
Depreciation and amortization	—			0.1			1.2			1.8			—			3.1
Total operating expenses	1.8			7.3			9.3			9.2			—			27.6
Income from unconsolidated investments, net of depreciation and amortization	—			—			3.5			(1.3		)	—			2.2
Income from consolidated subsidiaries	(0.8		)	14.4			8.8			—			(22.4		)	—
Operating income (expense)	(2.6		)	7.1			14.5			0.8			(22.4		)	(2.6		)
Non-operating income (expense)
Acquisition-related gains	—			—			—			9.5			—			9.5
Interest expense-investment	—			—			(0.1		)	(1.6		)	—			(1.7		)
Interest expense-corporate	—			(9.7		)	—			—			—			(9.7		)
Other income	—			—			0.2			—			—			0.2
(Loss) income before benefit from income taxes	(2.6		)	(2.6		)	14.6			8.7			(22.4		)	(4.3		)
Benefit from (provision for) income taxes	—			1.7			—			—			—			1.7
Net (loss) income	(2.6		)	(0.9		)	14.6			8.7			(22.4		)	(2.6		)
Net income attributable to the noncontrolling interests	—			—			—			1.0			—			1.0
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc.	(2.6		)	(0.9		)	14.6			9.7			(22.4		)	(1.6		)
Preferred dividends and accretion of preferred stock issuance costs	(2.0		)	—			—			—			—			(2.0		)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(4.6	)	$	(0.9	)	$	14.6		$	9.7		$	(22.4	)	$	(3.6	)

Consolidated Statement of Comprehensive Income

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014

(Dollars in millions)	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Net (loss) income	$	49.9		$	51.7		$	81.5		$	77.3		$	(210.5	)	$	49.9

Other comprehensive income (loss), net of tax:
Unrealized foreign currency translation (loss) gain	(1.2		)	(1.2		)	(5.1		)	(0.9		)	7.2			(1.2		)
Amounts reclassified out of AOCI during the period	1.2			1.2			—			1.2			(2.4		)	1.2
Unrealized forward contract foreign currency (loss) gain	(1.5		)	(1.5		)	2.4			—			(0.9		)	(1.5		)
Total other comprehensive (loss) income for the period	$	(1.5	)	$	(1.5	)	$	(2.7	)	$	0.3		$	3.9		$	(1.5	)

Comprehensive income	$	48.4		$	50.2		$	78.8		$	77.6		$	(206.6	)	$	48.4
Comprehensive (income) loss attributable to noncontrolling interests	—			—			—			(37.4		)	—			(37.4		)
Comprehensive income attributable to Kennedy-Wilson Holdings, Inc.	$	48.4		$	50.2		$	78.8		$	40.2		$	(206.6	)	$	11.0

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013

(Dollars in millions)	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Elimination			Consolidated Total
Net (loss) income	$	(2.6	)	$	(0.9	)	$	14.6		$	8.7		$	(22.4	)	$	(2.6	)

Other comprehensive income (loss), net of tax:
Unrealized foreign currency translation gains	(14.4		)	(14.4		)	(12.9		)	(2.0		)	29.3			(14.4		)
Unrealized forward contract foreign currency loss	3.6			3.6			3.2			—			(6.8		)	3.6
Total other comprehensive income for the period	$	(10.8	)	$	(10.8	)	$	(9.7	)	$	(2.0	)	$	22.5		$	(10.8	)

Comprehensive (loss) income	$	(13.4	)	$	(11.7	)	$	4.9		$	6.7		$	0.1		$	(13.4	)
Comprehensive income attributable to noncontrolling interests	—			—			—			1.0			—			1.0
Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc.	$	(13.4	)	$	(11.7	)	$	4.9		$	7.7		$	0.1		$	(12.4	)

Condensed Consolidated Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014

(Dollars in millions)	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidated Total
Net cash provided by (used in) operating activities	$	(0.3	)	$	(51.2	)	$	(5.8	)	$	20.4		$	(36.9	)
Cash flows from investing activities:
Additions to loans	—			—			(5.7		)	(152.9		)	(158.6		)
Collections of loans	—			0.1			0.1			—			0.2
Net proceeds from sale of real estate	—			—			—			10.0			10.0
Purchases of and additions to real estate	—			—			(13.4		)	(354.3		)	(367.7		)
Distributions from unconsolidated investments	—			—			5.6			5.4			11.0
Contributions to unconsolidated investments	—			(2.0		)	(6.8		)	(58.3		)	(67.1		)
Investment in marketable securities	—			—			(4.5		)	—			(4.5		)
(Investments in) distributions from consolidated subsidiaries, net	(180.2		)	(37.8		)	(42.9		)	260.9			—
Net cash (used in) provided by investing activities	(180.2		)	(39.7		)	(67.6		)	(289.2		)	(576.7		)
Cash flows from financing activities:
Borrowings under line of credit	—			90.0			—			—			90.0
Repayment of line of credit	—			(90.0		)	—			—			(90.0		)
Borrowings under mortgage loans payable	—			—			18.0			177.8			195.8
Borrowings under senior notes payable	—			297.2			—			—			297.2
Debt issue costs	—			(6.2		)	(0.2		)	(3.2		)	(9.6		)
Repayment of mortgage loans payable	—			—			—			(5.5		)	(5.5		)
Issuance of common stock	190.8			—			—			—			190.8
Dividends paid	(7.8		)	—			—			—			(7.8		)
Repurchase of common stock	(2.5		)	—			—			—			(2.5		)
Proceeds from issuance of KWE shares	—			—			—			1,350.7			1,350.7
Contributions from noncontrolling interests	—			—			—			2.9			2.9
Distributions to noncontrolling interests	—			—			—			(2.8		)	(2.8		)
Net cash provided by (used in) financing activities	180.5			291.0			17.8			1,519.9			2,009.2
Effect of currency exchange rate changes on cash and cash equivalents	—			—			—			(0.7		)	(0.7		)
Net change in cash and cash equivalents	—			200.1			(55.6		)	1,250.4			1,394.9
Cash and cash equivalents, beginning of year	—			48.2			77.2			52.8			178.2
Cash and cash equivalents, end of period	$	—		$	248.3		$	21.6		$	1,303.2		$	1,573.1

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013

(Dollars in millions)	Parent			Kennedy-Wilson, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidated Total
Net cash (used in) provided by operating activities	$	0.1		$	(39.7	)	$	8.3		$	3.7		$	(27.6	)
Cash flows from investing activities:
Additions to loans	—			—			(8.2		)	—			(8.2		)
Proceeds from sale of interest in a entity	—			—			26.7			—			26.7
Net proceeds from sale of real estate	—			—			3.4			—			3.4
Purchases of and additions to real estate	—			—			(0.8		)	(14.8		)	(15.6		)
Distributions from unconsolidated investments	—			—			28.8			—			28.8
Contributions to unconsolidated investments	—			(2.3		)	(29.2		)	(20.6		)	(52.1		)
(Investment in) distributions from consolidated subsidiaries, net	0.3			13.7			(43.9		)	29.9			—
Net cash (used in) provided by investing activities	0.3			11.4			(23.2		)	(5.5		)	(17.0		)
Cash flows from financing activities:
Borrowings under line of credit	—			35.0			—			—			35.0
Repayment of lines of credit	—			(35.0		)	—			—			(35.0		)
Debt issue costs	—			(0.4		)	—			—			(0.4		)
Repayment of investment debt	—			—			—			(0.1		)	(0.1		)
Issuance of common stock	133.8			—			—			—			133.8
Dividends paid	(7.1		)	—			—			—			(7.1		)
Intercompany receivables, net	—			(2.7		)	—			2.7			—
Net cash provided by (used in) financing activities	126.7			(3.1		)	—			2.6			126.2
Effect of currency exchange rate changes on cash and cash equivalents	—			(2.4		)	(0.5		)	(1.2		)	(4.1		)
Net change in cash and cash equivalents	127.1			(33.8		)	(15.4		)	(0.4		)	77.5
Cash and cash equivalents, beginning of period	—			64.5			38.5			17.9			120.9
Cash and cash equivalents, end of period	$	127.1		$	30.7		$	23.1		$	17.5		$	198.4