INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The table below represents a geographical breakdown of book income before the provision for income taxes:

	Year ended December 31,
(Dollars in millions)	2019		2018		2017
Domestic	$	249.5	$	156.5	$	90.6
Foreign	113.0		113.6		31.1
Total	$	362.5	$	270.1	$	121.7

Schedule of (Benefit from) Provision for Income Taxes

The U.S. and foreign components of provision for (benefit from) provision for income taxes consisted of the following components. However, it is not reflective of the cash tax results of the Company.

	Year ended December 31,
(Dollars in millions)	2019			2018			2017
Federal
Current	$	—		$	—		$	(0.3	)
Deferred	31.2			33.4			(17.9		)
	31.2			33.4			(18.2		)
State
Current	0.3			—			0.1
Deferred	(4.6		)	10.6			(3.1		)
	(4.3		)	10.6			(3.0		)
Foreign
Current	14.4			18.4			8.4
Deferred	0.1			(4.4		)	(3.5		)
	14.5			14.0			4.9
Total	$	41.4		$	58.0		$	(16.3	)

Reconciliation of the Statutory Federal Income Tax Rate

A reconciliation of the statutory federal income tax rate of 21% with Kennedy Wilson’s effective income tax rate is as follows:

	Year ended December 31,
(Dollars in millions)	2019			2018			2017
Tax computed at the statutory rate	$	76.1		$	56.7		$	42.6
TCJA federal rate change	—			—			(44.8		)
Tax deduction in excess of book compensation from restricted stock vesting	0.3			1.8			(3.7		)
Domestic permanent differences, primarily disallowed executive compensation	6.1			3.8			1.3
Foreign permanent differences, primarily non-deductible depreciation, amortization and interest expenses in the United Kingdom	1.3			1.4			6.1
Effect of foreign tax operations on U.S. taxes, net of foreign tax credits and valuation allowance	(16.8		)	1.1			1.6
Noncontrolling interests	(22.2		)	(15.1		)	(15.0		)
State income taxes, net of federal benefit	—			8.0			(3.8		)
Other	(3.4		)	0.3			(0.6		)
Provision for (benefit from) income taxes	$	41.4		$	58.0		$	(16.3	)

Schedule of Deferred Tax Assets and Liabilities

Cumulative tax effects of temporary differences are shown below at December 31, 2019 and 2018:

	Year ended December 31,
(Dollars in millions)	2019			2018
Deferred tax assets:
Foreign currency translation	$	4.9		$	9.1
Net operating loss carryforward and credits	138.6			102.3
Investment basis difference	96.2			121.6
Stock option expense	1.3			3.5
Hedging transactions	7.2			—
Marketable securities	—			0.1
Accrued reserves	—			0.1
Total deferred tax assets	248.2			236.7
Valuation allowance	(209.2		)	(131.1		)
Net deferred tax assets	39.0			105.6
Deferred tax liabilities:
Investment basis and reserve differences	145.7			121.3
Depreciation and amortization	2.8			65.0
Hedging transactions	—			5.4
Prepaid expenses and other	2.4			1.7
Capitalized interest	1.3			1.4
Total deferred tax liabilities	152.2			194.8
Deferred tax asset (liability), net	$	(113.2	)	$	(89.2	)