INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign

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


	Year ended December 31,
(Dollars in millions)	2022		2021		2020
Domestic	$	88.5	$	447.6	$	(37.0)
Foreign	49.6		14.9		188.4
Total	$	138.1	$	462.5	$	151.4

Schedule of (Benefit from) Provision for Income Taxes

The U.S. and foreign components of 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)	2022		2021		2020
Federal
Current	$	—	$	—	$	—
Deferred	3.6		94.4		23.3
	3.6		94.4		23.3
State
Current	0.3		(0.2)		1.5
Deferred	11.3		9.1		0.4
	11.6		8.9		1.9
Foreign
Current	17.6		14.2		14.9
Deferred	3.4		8.7		3.5
	21.0		22.9		18.4

Total	$	36.2	$	126.2	$	43.6

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)	2022		2021		2020
Tax computed at the statutory rate	$	29.0	$	97.1	$	31.8
Tax deduction in excess of book compensation from restricted stock vesting	—		—		0.1
Domestic permanent differences, primarily disallowed executive compensation	7.8		8.1		7.2
Foreign permanent differences, primarily non-deductible depreciation, amortization and interest expenses in the United Kingdom	1.7		8.2		2.0
Effect of foreign operations, net of foreign tax credit	(8.8)		7.4		(3.7)
Noncontrolling interests	(1.1)		(2.6)		(0.9)
State income taxes, net of federal benefit	2.8		7.0		2.9
Other	4.8		1.0		4.2
Provision for income taxes	$	36.2	$	126.2	$	43.6

Schedule of Deferred Tax Assets and Liabilities

Cumulative tax effects of temporary differences are shown below at December 31, 2022 and 2021:


	Year ended December 31,
(Dollars in millions)	2022		2021
Deferred tax assets:
Foreign currency translation	$	5.0	$	2.7
Net operating loss carryforward and credits	152.0		172.4
Depreciation and amortization	51.5		—
Investment basis difference	90.7		96.8
Stock option expense	2.0		2.2
Hedging transactions	10.0		7.8
Lease liability	0.1		0.1
Accrued reserves	9.5		11.1
Total deferred tax assets	320.8		293.1
Valuation allowance	(265.9)		(257.1)
Net deferred tax assets	54.9		36.0

Deferred tax liabilities:
Investment basis and reserve differences	344.9		285.4
Depreciation and amortization	—		3.9
Right of use asset	0.1		0.1
Prepaid expenses and other	3.7		2.2
Capitalized interest	1.0		1.3
Total deferred tax liabilities	349.7		292.9

Deferred tax liability, net	$	(294.8)	$	(256.9)