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Fair Value Measurements and the Fair Value Option (Tables)
 6 Months Ended
Jun. 30, 2018
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 June 30, 2018:
 
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Unconsolidated investments
$
—

 
$
—

 
$
478.3

 
$
478.3

Net currency derivative contracts
—

 
(51.6
)
 
—

 
(51.6
)
Total
$
—

 
$
(51.6
)
 
$
478.3

 
$
426.7

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, 2017:
 
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Unconsolidated investments
$
—

 
$
—

 
$
380.7

 
$
380.7

Marketable securities
7.5

 
—

 
—

 
7.5

Net currency derivative contracts
—

 
(100.9
)
 
—

 
(100.9
)
Total
$
7.5

 
$
(100.9
)
 
$
380.7

 
$
287.3
Schedule of Investments in Joint Ventures Held at Fair Value
The following table summarizes the Company's investments in unconsolidated investments held at fair value by type:
(Dollars in millions)
June 30, 2018
 
December 31, 2017
FV Option
$
369.8

 
$
295.4

Funds
108.5

 
85.3

Total
$
478.3

 
$
380.7
Schedule of Changes in Level 3 Investments
The following table presents changes in Level 3 investments, investments in investment companies and investments in joint ventures that elected the fair value option for the three and six months ended June 30, 2018 and 2017:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in millions)
2018
 
2017
 
2018
 
2017
Beginning balance
$
406.9

 
$
409.7

 
$
380.7

 
$
356.7

Unrealized and realized gains
10.9

 
5.7

 
39.7

 
31.6

Unrealized and realized losses
(5.3
)
 
(2.7
)
 
(7.7
)
 
(1.0
)
Contributions
101.3

 
5.0

 
115.9

 
25.2

Distributions
(35.5
)
 
(55.4
)
 
(50.2
)
 
(74.5
)
Other
—

 
(0.4
)
 
(0.1
)
 
23.9

Ending balance
$
478.3

 
$
361.9

 
$
478.3

 
$
361.9
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
4.50% - 7.25%
 
7.00% - 9.00%
Retail
5.75% - 9.50%
 
7.25% - 11.50%
Multifamily
4.75% - 7.75%
 
8.00% - 9.75%
Residential
N/A
 
6.00% - 12.00%
Schedule of Currency Forward Contracts
The table below details the currency derivative contracts Kennedy Wilson held as of June 30, 2018 and the activity during the six months ended June 30, 2018. For the six months ended June 30, 2018 Kennedy Wilson had a gross foreign currency translation loss on its net assets of $39.6 million. See Note 11 for a complete discussion on other comprehensive income including currency derivative contracts and foreign currency translations.
(Dollars in millions)
 
June 30, 2018
 
Six Months Ended June 30, 2018
Currency Hedged
Underlying Currency
Notional
Hedge Asset
 
Hedge Liability
 
Change in Unrealized Gains (Losses)
 
Realized Gains (Losses)(5)
 
Cash Received (Paid)
Outstanding
 
 
 
 
 
 
 
 
 
 
 
EUR
USD
€
293.3

$
15.6

 
$
(9.3
)
 
$
1.4

 
$
12.0

 
$
—

EUR(1)
GBP
€
310.8

—

 
(67.5
)
 
3.6

 
—

 
—

EUR(1)(2)
GBP
 
—

 
—

 
2.4

 
—

 
—

GBP
USD
£
600.3

13.8

 
(4.2
)
 
15.0

 
—

 
(0.8
)
Total Outstanding
 
29.4

 
(81.0
)
 
22.4

 
12.0

 
(0.8
)
 
 
 
 
 
 
 
 
 
 
 
 
Settled
 
 
 
 
 
 
 
 
 
 
 
EUR(4)
USD
 
—

 
—

 
(5.8
)
 
5.8

 
—

GBP
USD
 
—

 
—

 
3.5

 
—

 
(7.3
)
Total Settled
 
 
—

 
—

 
(2.3
)
 
5.8

 
(7.3
)
Total
 
$
29.4

 
$
(81.0
)
 
$
20.1

(3) 
$
17.8

 
$
(8.1
)
(1) Hedge is held by KWE on its wholly-owned subsidiaries.
(2) Relates to KWE's Euro Medium Term Note. See discussion in Note 8.
(3) Excludes deferred tax benefit of $5.9 million
(4) Amounts associated with investments that were part of AXA transaction. Amounts reclassified out of OCI to gain on sale of real estate.
(5) Includes $7.9 million of realized gains (losses) associated with hedges related to AXA transaction that are included as part of gain on sale of real estate.