Business Context and Reporting Period
This Form 8-K was filed by KKR & Co. Inc. on May 3, 2023. The filing serves as a Regulation FD disclosure regarding a presentation posted on the company's investor website titled "Impact of the Adoption of New Insurance Accounting Standard & Other Changes to Certain Non-GAAP Measures."
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it details a change in accounting methodology. KKR is recasting unaudited financial results for the full year of 2021 and the quarters and full year of 2022 to reflect the adoption of Accounting Standards Update 2018-12 (LDTI) for long-duration insurance contracts.
Material Changes Versus Prior Period
- Accounting Standard Adoption: The company is implementing LDTI, which impacts the accounting for life insurance and annuities.
- Recasting of Historical Data: Financial results for 2021 and 2022 are being restated on an unaudited basis to align with the new standard.
- Non-GAAP Measure Adjustments: Beginning with the first quarter of 2023, KKR will modify certain non-GAAP measures to exclude specific LDTI impacts.
- Segment Reporting Change: The Insurance segment will begin reporting operating earnings on a pre-tax basis starting in Q1 2023.
Guidance, Outlook, and Management Commentary
Management indicated that the changes to non-GAAP measures and the shift to pre-tax reporting for the Insurance segment are intended to better reflect how the company manages and assesses the performance of its Insurance business under the new accounting standard. The filing explicitly states that the information provided in the referenced presentation is not deemed "filed" for purposes of Section 18 of the Exchange Act.
Important Facts for Investor Verification
- Verify the specific quantitative impact of LDTI adoption by reviewing the presentation at the KKR Investor Center.
- Confirm the exact adjustments made to 2021 and 2022 historical financial data in the recasted results.
- Monitor future quarterly reports to ensure the new pre-tax reporting basis for the Insurance segment is consistently applied.
- Note that the filing itself contains no new financial figures; all data resides in the external presentation referenced in Item 7.01.