Current report filing

DISCONTINUED OPERATIONS

v2.4.0.8
DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2012
DiscontinuedOperationsAbstract  
DISCONTINUED OPERATIONS
2.
DISCONTINUED OPERATIONS

On April 26, 2013, Newcastle announced that its board of directors had formally declared the distribution of shares of common stock of New Residential Investment Corp. (“New Residential,” NYSE: NRZ), a then wholly owned subsidiary of Newcastle. Following the spin-off, New Residential is an independent, publicly traded REIT primarily focused on investing in residential mortgage related assets. The spin-off transaction was effected as a taxable pro rata distribution by Newcastle of all the outstanding shares of common stock of New Residential to the stockholders of record of Newcastle at close of business day as of May 6, 2013. The stockholders of Newcastle as of the record date received one share of New Residential common stock for each share of Newcastle common stock held.

As a result of the May 15, 2013 spin-off, for all periods presented, the assets, liabilities and results of operations of those components of Newcastle’s operations that (i) were part of the spin-off, and (ii) represent operations in which Newcastle has no significant continuing involvement, are presented separately in discontinued operations in Newcastle’s consolidated financial statements. These components are primarily related to Excess MSRs for the periods presented herein.

Assets and liabilities of discontinued operations were as follows:

   
December 31,
  
   
2012
    
2011
  
Assets:
            
Investments in excess mortgage servicing rights at fair value
     245,036       43,971  
Cash & Cash Equivalents
     —       9  
Other Assets
     33       6  
Total Assets
     245,069       43,986  
                 
Liabilities:
                
                 
Purchase price payable on investments in excess mortgage servicing rights
     59       3,250  
Accrued expenses and other liabilities
     421       980  
Total Liabilities
     480       4,230  
                 
Net Assets
     244,589       39,756  
 
Results of operations from discontinued operations were as follows:
 
   
Year Ended December 31,
  
   
2012
    
2011
    
2010
  
                   
Interest income
     27,508       1,260       —  
Interest expense
     —       —       —  
   Net interest income
     27,508       1,260       —  
                         
Impairment (Reversal)
                        
Impairment of long-lived assets
     —       —       260  
                         
Other Revenues
                        
Rental income
     —       136       427  
   Total other revenue
     —       136       427  
Other Income (Loss)
                        
Gain (loss) on settlement of investments, net
     —       61       —  
Other income (loss)
     17,421       367       27  
   Other income (loss)
     17,421       428       27  
                         
Expenses
                        
Property operating costs
     26       177       295  
General and administrative expenses
     5,735       1,086       242  
      5,761       1,263       537  
                         
Income (loss) from discontinued operations
     39,168       561       (343 )