Drive Shack Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash Flows From Operating Activities
Net Income	$ 32,394us-gaap_ProfitLoss	$ 152,341us-gaap_ProfitLoss	$ 434,110us-gaap_ProfitLoss
Adjustments to reconcile net income to net cash provided by operating activities (inclusive of amounts related to discontinued operations):
Depreciation and amortization	117,594	30,973	7,451
Accretion of discount and other amortization	(3,819)	(30,621)	(45,582)
Interest income on investments accrued to principal balance	(20,386)	(26,148)	(22,398)
Reversal of valuation allowance on loans	(2,419)	(25,035)	(24,587)
Other-than-temporary impairment on securities		5,266	18,923
Change in fair value of investments in excess mortgage servicing rights		(3,894)	(9,023)
Change in fair value of investments in equity method investees		(19,170)
Change in fair value of contingent consideration	(1,500)
Straight-lining of rental income	(21,794)nct_StraightliningOfRentalIncome
Equity in earnings from equity method investments, net of distributions	(954)	(677)
Gain on settlement of investments (net)	(51,380)	(17,369)	(232,897)
Unrealized gain on non-hedge derivatives and hedge ineffectiveness	(17,565)us-gaap_UnrealizedGainLossOnDerivatives	(10,467)us-gaap_UnrealizedGainLossOnDerivatives	(2,547)us-gaap_UnrealizedGainLossOnDerivatives
Loss/(gain) on extinguishment of debt	3,410	(4,565)	(24,085)
Non-cash directors' compensation	321nct_CompensationNoncash	350nct_CompensationNoncash	280nct_CompensationNoncash
Change in:
Restricted cash	1,464	10,595	(3,829)
Receivables and other assets	(314)	(19,077)	(1,702)
Accounts payable, accrued expenses and other liabilities	5,328	63,684	3,220
Net cash provided by operating activities	40,380	106,186	97,334
Cash Flows From Investing Activities
Principal repayments from investments	245,447nct_PrincipalRepaymentsFromInvestments	494,443nct_PrincipalRepaymentsFromInvestments	191,703nct_PrincipalRepaymentsFromInvestments
Restructuring of investments in media and golf, net of cash and cash equivalents assumed		(60,654)nct_RestructuringOfInvestments
Purchase of real estate securities	(404,638)	(1,411,002)	(989,709)
Purchase of real estate related and other loans		(382,771)	(27,226)
Proceeds from sale of investments	798,580	46,536	127,000
Acquisition and additions to investments in real estate	(315,454)us-gaap_PaymentsToAcquireRealEstate	(1,254,214)us-gaap_PaymentsToAcquireRealEstate	(185,982)us-gaap_PaymentsToAcquireRealEstate
Funds reserved for future capital expenditures	(3,424)
Acquisition of investments in excess mortgage servicing rights			(221,832)
Return of investments in excess mortgage servicing rights		15,803	29,167
Deposits paid on investments, net of repayments	(655)	(505)	(275)
Contributions to equity method investees, net of distributions		(374,367)
Net cash provided by (used in) investing activities	319,856	(2,926,731)	(1,077,154)
Cash Flows From Financing Activities
Repurchases of CDO bonds payable		(31,285)	(35,748)
Borrowings under debt obligations	668,003us-gaap_ProceedsFromOtherDebt	3,271,588us-gaap_ProceedsFromOtherDebt	903,274us-gaap_ProceedsFromOtherDebt
Repayments of debt obligations	(831,042)us-gaap_RepaymentsOfOtherDebt	(1,400,255)us-gaap_RepaymentsOfOtherDebt	(135,497)us-gaap_RepaymentsOfOtherDebt
Margin deposits under repurchase agreements and derivatives	(36,752)	(207,905)	(87,895)
Return of margin deposits under repurchase agreements and derivatives	38,079nct_RepaymentsMarginDeposits	175,405nct_RepaymentsMarginDeposits	87,895nct_RepaymentsMarginDeposits
Issuance of common stock	198,702	1,264,769	435,821
Costs related to issuance of common stock	(595)us-gaap_PaymentsOfStockIssuanceCosts	(2,471)us-gaap_PaymentsOfStockIssuanceCosts	(1,083)us-gaap_PaymentsOfStockIssuanceCosts
Contribution of cash upon spin-off	(269,091)nct_ContributionOfCashUponSpinoff	(181,582)nct_ContributionOfCashUponSpinoff
Common stock dividends paid	(145,299)us-gaap_PaymentsOfDividendsCommonStock	(165,989)us-gaap_PaymentsOfDividendsCommonStock	(104,196)us-gaap_PaymentsOfDividendsCommonStock
Preferred stock dividends paid	(5,580)	(5,580)	(5,580)
Payment of financing costs	(4,592)	(40,633)	(2,385)
Purchase of derivative instruments			(244)
Proceeds from settlement of derivative instruments	(4,151)	217
Restricted cash returned from refinancing activities		18,312
Net cash provided by (used in) financing activities	(392,318)	2,694,591	1,054,362
Net Increase (Decrease) in Cash and Cash Equivalents	(32,082)	(125,954)	74,542
Cash and Cash Equivalents, Beginning of Period	42,721	221,798	156,334
Cash and Cash Equivalents of Discontinued Operations, Beginning of Period	63,223	10,100	(1,022)
Cash and Cash Equivalents, End of Period	73,862	105,944	231,898
Cash and Cash Equivalents of Continuing Operations, End of Period	73,727	42,721	221,798
Cash and Cash Equivalents of Discontinued Operations, End of Period	135	63,223	10,100
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest expense	73,735us-gaap_InterestPaid	48,892us-gaap_InterestPaid	71,395us-gaap_InterestPaid
Cash paid during the period for income taxes	1,355us-gaap_IncomeTaxesPaidNet	899us-gaap_IncomeTaxesPaidNet
Supplemental Schedule of Non-Cash Investing and Financing Activities
Common stock dividends declared but not paid	7,971	35,145	37,954
Preferred stock dividends declared but not paid	930	930	930
Assumption of mortgage notes payable, at fair value		43,128us-gaap_NotesAssumed1
Re-issuance of other bonds and notes payable to third parties upon deconsolidation of CDO			29,959
Issuance of seller financing for acquisition of senior housing facilities		9,412
Purchase price payable on investments in excess mortgage servicing rights			$ 59nct_PurchasePriceExcessMSRs