|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Summary Of Significant Accounting Policies Tables |
|
| Schedule of Accumulated Other Comprehensive Income |
The following table summarizes Newcastle’s accumulated other comprehensive income:
| |
|
December 31,
|
|
| |
|
2012
|
|
|
2011
|
|
|
Net unrealized gains (losses) on securities
|
|
$ |
82,788 |
|
|
$ |
(2,585 |
) |
|
Net unrealized gains (losses) on derivatives designated as cash flow hedges
|
|
|
(12,024 |
) |
|
|
(70,501 |
) |
|
Accumulated other comprehensive income (loss)
|
|
$ |
70,764 |
|
|
$ |
(73,086 |
) |
|
| Schedule of Gain (Loss) on Settlement of Investments, Net and Other Income (Loss), Net |
Gain (Loss) on Settlement of Investments, Net and Other Income (Loss), Net – These items are comprised of the following:
| |
|
Year-Ended December 31,
|
|
| |
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
Gain (loss) on settlement of investments, net
|
|
|
|
|
|
|
|
|
|
|
Gain on settlement of real estate securities
|
|
$ |
14,629 |
|
|
$ |
81,434 |
|
|
$ |
64,778 |
|
|
Loss on settlement of real estate securities
|
|
|
(4,433 |
) |
|
|
(5,091 |
) |
|
|
(9,192 |
) |
|
Gain on sale of CDO X interests
|
|
|
224,317 |
|
|
|
|
|
|
|
|
|
|
Gain on repayment/disposition of loans held for sale
|
|
|
— |
|
|
|
1,838 |
|
|
|
— |
|
|
Loss on repayment/disposition of loans held for sale
|
|
|
(1,614 |
) |
|
|
— |
|
|
|
— |
|
|
Realized gain (loss) of termination of derivative instruments
|
|
|
— |
|
|
|
— |
|
|
|
(3,279 |
) |
|
Loss on disposal of long-lived assets
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
| |
|
$ |
232,897 |
|
|
$ |
78,181 |
|
|
$ |
52,307 |
|
|
Other income (loss), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on non-hedge derivative instruments
|
|
$ |
9,101 |
|
|
$ |
3,284 |
|
|
$ |
(1,240 |
) |
|
Unrealized gain (loss) recognized upon de-designation of hedges
|
|
|
(7,036 |
) |
|
|
(13,939 |
) |
|
|
(35,905 |
) |
|
Hedge ineffectiveness
|
|
|
483 |
|
|
|
(917 |
) |
|
|
580 |
|
|
Gains on deconsolidation
|
|
|
— |
|
|
|
45,072 |
|
|
|
|
|
|
Equity in earnings of equity method investees
|
|
|
— |
|
|
|
272 |
|
|
|
94 |
|
|
Collateral management fee income, net
|
|
|
1,786 |
|
|
|
2,432 |
|
|
|
475 |
|
|
Other income (loss)
|
|
|
978 |
|
|
|
— |
|
|
|
320 |
|
| |
|
$ |
5,312 |
|
|
$ |
36,204 |
|
|
$ |
(35,676 |
) |
|
| Schedule of Reclassification from Accumulated Other Comprehensive Income into Net Income |
Reclassification From Accumulated Other Comprehensive Income Into Net Income - The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income:
| |
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive
Income Components
|
|
|
Income Statement
Location
|
|
|
Year Ended
December 31, 2012
|
|
|
Net realized gain (loss) on securities
|
|
|
|
|
|
|
|
|
Impairment
|
|
|
Other-than-temporary impairment on securities, net of portion of other-than-temporary impairment on securities recognized in other comprehensive income
|
|
|
$ |
(18,923 |
) |
|
Gain on settlement of real estate securities
|
|
|
Gain (loss) on settlement of investments, net
|
|
|
|
14,629 |
|
|
Loss on settlement of real estate securities
|
|
|
Gain (loss) on settlement of investments, net
|
|
|
|
(4,433 |
) |
| |
|
|
|
|
|
$ |
(8,727 |
) |
| |
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized upon de-designation
|
|
|
Other income (loss)
|
|
|
$ |
(7,036 |
) |
|
Hedge ineffectiveness
|
|
|
Other income (loss)
|
|
|
|
483 |
|
|
Amortization of deferred gain (loss)
|
|
|
Interest expense
|
|
|
|
1,250 |
|
|
Gain (loss) of termination of derivative instruments
|
|
|
Gain (loss) on settlement of investments, net
|
|
|
|
— |
|
| |
|
|
|
|
|
$ |
(5,303 |
) |
| |
|
|
|
|
|
|
|
|
|
Total reclassifications
|
|
|
|
|
|
$ |
(14,030 |
) |
|
| Schedule of Restricted Cash |
Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash consisted of:
| |
|
|
December 31,
|
|
| |
|
|
2012
|
|
|
2011
|
|
| |
Held in CDOs pending reinvestment
|
|
$ |
— |
|
|
$ |
94,781 |
|
| |
CDO bond sinking funds
|
|
|
1,254 |
|
|
|
1,897 |
|
| |
CDO trustee accounts
|
|
|
810 |
|
|
|
1,812 |
|
| |
Derivative margin accounts
|
|
|
— |
|
|
|
6,550 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
$ |
2,064 |
|
|
$ |
105,040 |
|
|
| Schedule of Supplemental Non-Cash Investing and Financing Activities relating to CDOs |
Supplemental non-cash investing and financing activities relating to CDOs are disclosed below:
| |
|
Year Ended December 31,
|
|
| |
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
Restricted cash generated from sale of securities
|
|
$ |
56,629 |
|
|
$ |
336,911 |
|
|
$ |
249,549 |
|
|
Restricted cash generated from sale of real estate related loans
|
|
$ |
— |
|
|
$ |
125,141 |
|
|
$ |
53,020 |
|
|
Restricted cash generated from paydowns on securities and loans
|
|
$ |
274,832 |
|
|
$ |
546,752 |
|
|
$ |
511,276 |
|
|
Restricted cash used for purchases of real estate securities
|
|
$ |
143,184 |
|
|
$ |
427,826 |
|
|
$ |
368,893 |
|
|
Restricted cash used for purchases of real estate related loans
|
|
$ |
91,481 |
|
|
$ |
384,850 |
|
|
$ |
107,708 |
|
|
Restricted cash used for repayments of CDO bonds payable
|
|
$ |
166,845 |
|
|
$ |
101,687 |
|
|
$ |
202,037 |
|
|
Restricted cash used for repurchases of CDO bonds payable and other bonds payable
|
|
$ |
— |
|
|
$ |
3,213 |
|
|
$ |
143,046 |
|
|
Restricted cash used for purchases of derivative instruments
|
|
$ |
408 |
|
|
$ |
— |
|
|
$ |
5,187 |
|
|
Restricted cash generated from margin collateral received
|
|
$ |
— |
|
|
$ |
6,550 |
|
|
$ |
— |
|
|
Restricted cash used to return margin collateral
|
|
$ |
6,550 |
|
|
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
CDO deconsolidation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate securities
|
|
$ |
1,033,016 |
|
|
$ |
262,617 |
|
|
$ |
— |
|
|
Restricted cash
|
|
$ |
51,522 |
|
|
$ |
37,988 |
|
|
$ |
— |
|
|
Derivative liabilities
|
|
$ |
57,343 |
|
|
$ |
20,257 |
|
|
$ |
— |
|
|
CDO bonds payable
|
|
$ |
1,110,694 |
|
|
$ |
336,046 |
|
|
$ |
— |
|
|
| Schedule of Accretion of Discount and Other Amortization |
Accretion of Discount and Other Amortization ¾ As reflected on the Consolidated Statements of Cash Flows, this item is comprised of the following:
| |
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
Accretion of net discount on securities and loans
|
|
$ |
(48,608 |
) |
|
$ |
(45,387 |
) |
|
$ |
(26,934 |
) |
|
Amortization of net discount on debt obligations
|
|
|
1,525 |
|
|
|
(823 |
) |
|
|
338 |
|
|
Amortization of deferred financing costs and interest rate cap premiums
|
|
|
2,751 |
|
|
|
3,740 |
|
|
|
3,432 |
|
|
Amortization of net deferred hedge (gains) and losses - debt
|
|
|
(1,250 |
) |
|
|
(2,316 |
) |
|
|
4,182 |
|
| |
|
$ |
(45,582 |
) |
|
$ |
(44,786 |
) |
|
$ |
(18,982 |
) |
|