Fair Value Measurements and the Fair Value Option (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements

The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of September 30, 2015:

(Dollars in millions)	Level 1		Level 2			Level 3		Total
Marketable securities	$	0.3	$	—		$	—	$	0.3
Unconsolidated investments	—		—			206.1		206.1
Currency forward contracts	—		20.0			—		20.0
Currency option contracts	—		(2.9		)	—		(2.9		)
Total	$	0.3	$	17.1		$	206.1	$	223.5

The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2014:

(Dollars in millions)	Level 1		Level 2		Level 3		Total
Marketable securities	$	6.5	$	—	$	—	$	6.5
Unconsolidated investments	—		—		85.9		85.9
Currency forward contracts	—		23.9		—		23.9
Currency option contracts	—		6.7		—		6.7
Total	$	6.5	$	30.6	$	85.9	$	123.0

Schedule of Investments in Joint Ventures Held at Fair Value

The following table summarizes our investments in unconsolidated investments held at fair value by type:

(Dollars in millions)	September 30, 2015		December 31, 2014
Funds	$	33.3	$	24.9
FV Option	172.8		61.0
Total	$	206.1	$	85.9

Schedule of Changes in Level 3 Investments

The following table presents changes in Level 3 investments for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in millions)	2015			2014			2015			2014
Beginning balance	$	186.6		$	78.5		$	85.9		$	81.1
Unrealized gains	5.9			—			24.1			—
Unrealized losses	—			—			(0.1		)	—
Realized Gains	5.2			—			5.2			—
Contributions	16.5			16.9			107.7			19.3
Distributions	(8.1		)	(5.0		)	(16.4		)	(10.0		)
Other	—			—			(0.3		)	—
Ending balance	$	206.1		$	90.4		$	206.1		$	90.4

Schedule of the Funds and Fair Value Option Investments, Significant Inputs

The table below describes the range of unobservable inputs for real estate assets:

	Estimated Rates Used for
	Capitalization Rates	Discount Rates
Office	5.25% - 8.25%	7.00% - 11.00%
Retail	6.70% - 7.00%	8.00% - 9.00%
Hotel	6.50%	7.50%
Multifamily	4.40% - 7.00%	4.90% - 10.75%
Loan	n/a	12.00% - 25.50%
Land and condominium units	n/a	8.00% - 9.00%

Schedule of Currency Forward Contracts

The table below details the currency derivative contracts KW Group held as of September 30, 2015:

(Dollars in millions)										Change in Unrealized Gains (Losses)
Currency Hedged	Type	Underlying Currency	Notional Amount	Trade Date	Settlement/Expiration Date	Forward Rate/Strike Price	Fair Value			Nine Months Ended September 30, 2015
EUR	Forward	USD	€20,000,000	6/25/2014	6/27/2019	1.4471	$	5.2		$	2.5
EUR (2)	Option	USD	€130,000,000	3/10/2015 - 3/19/2015	3/7/2019 - 3/19/2020	1.0700 - 1.0960	(2.1		)	(2.1		)
GBP(2)	Forward	USD	£103,000,000	2/25/2014 - 8/10/2015	10/9/2018 - 8/12/2020	1.5578 - 1.6371	10.5			6.7
GBP	Option	USD	£100,200,000	1/7/2015 - 8/17/2015	1/7/2016 - 8/17/2020	1.4235 - 1.5434	1.9			0.7
EUR (1)	Forward	GBP	€347,477,119	6/18/2014 - 6/29/2015	6/15/2016 - 6/30/2022	0.7110 - 0.8621	4.4			(1.8		)
EUR(1)	Option	GBP	€175,000,000	3/13/2015 - 6/3/2015	3/15/2018 - 6/3/2020	0.7070 - 0.7500	(2.7		)	(2.7		)
YEN	Forward	USD	¥649,000,000	6/23/2015 - 8/21/2015	2/25/2016 - 6/25/2020	111.26 - 121.51	(0.1		)	(0.1		)
Total(3)							$	17.1		$	3.2

⁽¹⁾Hedge is held by KWE on its wholly-owned subsidiaries.

⁽²⁾ For the nine months ended September 30, 2015, $5.7 million loss recognized through other income on the consolidated statement of operations, due to portion of hedge not designated as a net investment hedge.

⁽³⁾ Hedges are presented gross in the consolidated balance sheet. Hedge assets are included in other assets and hedge liabilities are included in other liabilities.