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Fair Value Measurements and the Fair Value Option (Tables)
 3 Months Ended
Mar. 31, 2020
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 March 31, 2020:
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Unconsolidated investments
$
—

 
$
—

 
$
1,081.6

 
$
1,081.6

Net currency derivative contracts
—

 
2.9

 
—

 
2.9

Total
$
—

 
$
2.9

 
$
1,081.6

 
$
1,084.5

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, 2019:
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Unconsolidated investments
$
—

 
$
—

 
$
1,107.4

 
$
1,107.4

Net currency derivative contracts
—

 
(34.7
)
 
—

 
(34.7
)
Total
$
—

 
$
(34.7
)
 
$
1,107.4

 
$
1,072.7
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)
March 31, 2020
 
December 31, 2019
FV Option
$
941.0

 
$
967.8

Funds
140.6

 
139.6

Total
$
1,081.6

 
$
1,107.4
Schedule of Changes in Level 3 Investments
The following table presents changes in Level 3 investments in Funds and FV Options for the three months ended March 31, 2020 and 2019:
 
Three Months Ended March 31,
(Dollars in millions)
2020
 
2019
Beginning balance
$
1,107.4

 
$
662.2

Unrealized and realized gains
24.8

 
41.2

Unrealized and realized losses
(16.4
)
 
(6.0
)
Contributions
44.4

 
19.6

Distributions
(62.0
)
 
(7.4
)
Non-cash distributions
(16.6
)
 
0.4

Ending Balance
$
1,081.6

 
$
710.0
Schedule of the Funds and Fair Value Option Investments, Significant Inputs
The table below describes the range of unobservable inputs for real estate assets as of March 31, 2020:
 
Estimated Rates Used for
 
Capitalization Rates
 
Discount Rates
Multifamily
3.75% — 5.00%

6.25% — 8.00%
Office
4.00% — 7.50%

5.00% — 9.00%
Retail
6.50% — 8.75%

8.00% — 11.75%
Hotel
6.00% — 6.00%

7.50% — 8.25%
Residential
N/A

12.00% — 12.00%
Schedule of Currency Forward Contracts
The table below details the currency derivative contracts Kennedy Wilson held as of March 31, 2020 and the activity during the three months ended March 31, 2020. For the three months ended March 31, 2020, Kennedy Wilson had a gross foreign currency translation loss on its net assets of $18.0 million. See Note 10 for a complete discussion on other comprehensive income including currency derivative contracts and foreign currency translations.
(Dollars, Euros and British Pound Sterling in millions)
 
March 31, 2020
 
Three Months Ended March 31, 2020
Currency Hedged
Underlying Currency
Notional
Hedge Asset
 
Hedge Liability
 
Change in Unrealized Gains (Losses)
 
Realized Gains
 
Interest Expense
 
Cash Received
Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR
USD
€
185.0

$
10.3

 
$
(2.6
)
 
$
(0.3
)
 
$
3.6

 
$
0.6

 
$
—

EUR(1)
GBP
€
240.8

—

 
(46.4
)
 
(9.9
)
 
—

 
—

 
—

EUR(1)(2)
GBP
 
—

 
—

 
(25.4
)
 
—

 
—

 
—

GBP
USD
£
460.0

42.7

 
(1.1
)
 
47.5

 
—

 
1.3

 
—

Total Outstanding
 
53.0

 
(50.1
)
 
11.9

 
3.6

 
1.9

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settled
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR
USD
 
—

 
—

 
0.4

 
4.7

 
0.6

 
13.6

GBP
USD
 
—

 
—

 
16.4

 
—

 
0.5

 
18.9

Total Settled
 
 
—

 
—

 
16.8

 
4.7

 
1.1

 
32.5

Total
 
$
53.0

 
$
(50.1
)
 
$
28.7

(3) 
$
8.3

 
$
3.0

 
$
32.5

(1) Hedge is held by KWE on its wholly-owned subsidiaries.
(2) Relates to KWE's Euro Medium Term Note. See discussion in Note 9.
(3) Excludes deferred tax expense of $15.8 million.