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FAIR VALUE MEASUREMENTS AND THE FAIR VALUE OPTION (Tables)
 12 Months Ended
Dec. 31, 2022
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 December 31, 2022:
(Dollars in millions)Level 1Level 2Level 3Total
Unconsolidated investments$— $— $2,093.7 $2,093.7 
Net currency derivative contracts— 7.0 — 7.0 
Total$— $7.0 $2,093.7 $2,100.7 
The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2021:
(Dollars in millions)Level 1Level 2Level 3Total
Unconsolidated investments$— $— $1,794.8 $1,794.8 
Net currency derivative contracts— 8.5 — 8.5 
Total$— $8.5 $1,794.8 $1,803.3 
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)December 31, 2022December 31, 2021
FV Option$1,891.1 $1,568.5 
Funds202.6 226.3 
Total$2,093.7 $1,794.8 
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 years ended December 31:
(Dollars in millions)202220212020
Beginning balance$1,794.8 $1,136.5 $1,099.3 
Unrealized and realized gains, including performance allocations274.4 390.0 109.8 
Unrealized and realized losses(114.1)(5.0)(13.5)
Contributions348.1 273.8 109.2 
Distributions(188.9)(144.3)(189.7)
Foreign exchange(55.8)(28.4)24.5 
Other35.2 172.2 (3.1)
Ending balance$2,093.7 $1,794.8 $1,136.5 
Schedule of the Funds and Fair Value Option Investments, Significant Inputs
The table below describes the range of inputs used as of December 31, 2022 for real estate assets:
Estimated Rates Used For
Capitalization RatesDiscount Rates
MultifamilyIncome approach - discounted cash flow
5.80% — 7.50%
8.00% — 9.80%
Income approach - direct capitalization
3.80% — 5.70%
N/A
OfficeIncome approach - discounted cash flow
5.20% — 7.50%
7.50% — 9.30%
Income approach - direct capitalization
4.20% — 8.70%
N/A
IndustrialIncome approach - discounted cash flow
5.00% —6.30%
6.30% — 7.80%
Income approach - direct capitalization
3.80% — 8.30%
N/A
RetailIncome approach - discounted cash flow
6.50%
8.30%
HotelIncome approach - discounted cash flow
6.00%
8.30%
Schedule of Currency Forward Contracts
The table below details the currency forward contracts and currency option contracts Kennedy Wilson had as of December 31, 2022:
(Dollars in millions)December 31, 2022Year Ended December 31, 2022
Currency HedgedUnderlying CurrencyNotionalHedge AssetHedge LiabilityChange in Unrealized Gains Realized Gains Interest ExpenseCash Paid
Outstanding
EURUSD€287.5 $5.2 $12.7 $(0.6)$(8.7)$1.8 $— 
EUR(1)
GBP€40.0 0.8 — 0.8 — — — 
EUR(1)(2)
GBP— — (28.3)— — — 
GBPUSD£545.0 28.3 14.6 10.8 2.2 1.8 — 
Total Outstanding34.3 27.3 (17.3)(6.5)3.6 — 
Settled
EUR GBP— — 1.1 24.4 2.7 31.9 
GBPUSD— — 55.7 — 1.8 63.4 
Total Settled— — 56.8 24.4 4.5 95.3 
Total $34.3 $27.3 $39.5 
(3)
$17.9 $8.1 $95.3 
(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 $16.1 million.