|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| Summary Of Significant Accounting Policies Tables |
|
| Schedule of accumulated other comprehensive income |
The following table summarizes Newcastles
accumulated other comprehensive income:
| |
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
2012 |
|
| Net unrealized gains on securities |
|
$ |
82,408 |
|
$ |
82,788 |
|
| Net unrealized losses on derivatives designated as cash flow hedges |
|
|
(5,992 |
) |
|
(12,024 |
) |
| Net unrecognized gain and prior service cost |
|
|
458 |
|
|
|
|
| Accumulated other comprehensive income |
|
$ |
76,874 |
|
$ |
70,764 |
|
|
| Schedule of gain (loss) on settlement of investments, net and other income (loss), net |
These items are comprised of the following:
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, |
|
| |
|
2013 |
|
2012 |
|
2011 |
|
| Gain (loss) on settlement of investments, net |
|
|
|
|
|
|
|
|
|
|
| Gain on settlement of real estate securities |
|
$ |
9,853 |
|
$ |
14,629 |
|
$ |
81,434 |
|
| Loss on settlement of real estate securities |
|
|
(3,592 |
) |
|
(4,433 |
) |
|
(5,091 |
) |
| Gain on sale of CDO X interests |
|
|
|
|
|
224,317 |
|
|
|
|
| Gain on repayment/disposition of loans held for sale |
|
|
10,716 |
|
|
|
|
|
1,838 |
|
| Loss on repayment/disposition of loans held for sale |
|
|
(354 |
) |
|
(1,614 |
) |
|
|
|
| Gain on termination of derivative |
|
|
813 |
|
|
|
|
|
|
|
| Loss on disposal of long-lived assets |
|
|
(67 |
) |
|
(2 |
) |
|
|
|
| |
|
$ |
17,369 |
|
$ |
232,897 |
|
$ |
78,181 |
|
| Other income (loss), net |
|
|
|
|
|
|
|
|
|
|
| Gain on non-hedge derivative instruments |
|
$ |
10,577 |
|
$ |
9,101 |
|
$ |
3,284 |
|
| Unrealized loss recognized upon de-designation of hedges |
|
|
(110 |
) |
|
(7,036 |
) |
|
(13,939 |
) |
| Hedge ineffectiveness |
|
|
|
|
|
483 |
|
|
(917 |
) |
| Gains on deconsolidation |
|
|
|
|
|
|
|
|
45,072 |
|
| Equity in earnings of equity method investees |
|
|
(124 |
) |
|
|
|
|
272 |
|
| Collateral management fee income, net |
|
|
1,279 |
|
|
1,786 |
|
|
2,432 |
|
| Other income |
|
|
1,718 |
|
|
978 |
|
|
|
|
| |
|
$ |
13,340 |
|
$ |
5,312 |
|
$ |
36,204 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Schedule of 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 (AOCI) Components |
|
Income Statement
Location |
|
Year Ended
December 31, 2013 |
|
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 |
|
$ |
(5,266 |
) |
$ |
(18,923 |
) |
| Gain on settlement of real estate securities |
|
Gain (loss) on settlement of investments, net |
|
|
9,853 |
|
|
14,629 |
|
| Loss on settlement of real estate securities |
|
Gain (loss) on settlement of investments, net |
|
|
(3,592 |
) |
|
(4,433 |
) |
| |
|
|
|
$ |
995 |
|
$ |
(8,727 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net realized gain (loss) on derivatives designated as cash flow hedges |
|
|
|
|
|
|
|
|
|
| Gain (loss) recognized upon de-designation |
|
Other income (loss) |
|
$ |
(110 |
) |
$ |
(7,036 |
) |
| Hedge ineffectiveness |
|
Other income (loss) |
|
|
|
|
|
483 |
|
| Amortization of deferred gain (loss) |
|
Interest expense |
|
|
11 |
|
|
1,250 |
|
| |
|
|
|
|
|
|
|
|
|
| Gain (loss) reclassified from AOCI into income, related to effective portion |
|
Interest expense |
|
|
(6,128 |
) |
|
|
|
| |
|
|
|
$ |
(6,227 |
) |
$ |
(5,303 |
) |
| |
|
|
|
|
|
|
|
|
|
| Total reclassifications |
|
|
|
$ |
(5,232 |
) |
$ |
(14,030 |
) |
|
| Schedule of useful lives of property, plant, and equipment |
Depreciation is calculated using the
straight-line method based on the following estimated useful lives:
| |
|
|
| Buildings |
|
25-40 years |
| Building improvements |
|
3-10 years |
| Machinery and equipment |
|
3-20 years |
| Furniture, fixtures, and computer software |
|
3-7 years |
| Leasehold improvements |
|
shorter of the lease term or estimated |
| |
|
useful life of the asset |
|
| Schedule of amortization period |
Amortization of intangible assets
is included within depreciation and amortization on the consolidated statements of income and is calculated using the straight-line
method based on the following estimated useful lives:
| |
|
|
| Senior housing |
|
|
| In-place resident lease intangibles |
|
2 - 3 years (1) |
| Non-compete intangibles |
|
5 years |
| Land lease intangibles |
|
74 - 82 years |
| PILOT intangibles |
|
13 years |
| Other intangibles |
|
2 - 5 years |
| Media business |
|
|
| Advertiser relationships |
|
14-16 years |
| Customer relationships |
|
15 - 16 years |
| Subscriber relationships |
|
15 -16 years |
| Trade name |
|
10 years |
| Golf business |
|
|
| Trade name |
|
30 - 40 years |
| Leasehold intangibles |
|
9 - 10 years |
| Management contracts |
|
11 - 12 years |
| Internally-developed software |
|
5 years |
| Membership base |
|
7 - 9 years |
(1) Amortized
over 24 months for AL/MC Properties and 33 months for IL-only properties.
|
| Schedule of restricted cash |
Restricted cash consisted of:
| |
|
|
|
|
|
|
|
|
| |
|
|
December 31, |
|
| |
|
|
2013 |
|
2012 |
|
| |
CDO bond sinking funds |
|
|
1,902 |
|
|
1,254 |
|
| |
CDO trustee accounts |
|
|
475 |
|
|
810 |
|
| |
New Media letters of credit and other cash reserves |
|
|
6,477 |
|
|
|
|
| |
Collateral for Golf lease obligations |
|
|
3,512 |
|
|
|
|
| |
|
|
$ |
12,366 |
|
$ |
2,064 |
|
|
| 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, |
|
| |
|
2013 |
|
2012 |
|
2011 |
|
| Restricted cash generated from sale of securities |
|
$ |
136,148 |
|
$ |
56,629 |
|
$ |
336,911 |
|
| Restricted cash generated from sale of real estate related and other loans |
|
$ |
104,837 |
|
$ |
|
|
$ |
125,141 |
|
| Restricted cash generated from paydowns on securities and loans |
|
$ |
331,349 |
|
$ |
274,832 |
|
$ |
546,752 |
|
| Restricted cash used for purchases of real estate securities |
|
$ |
|
|
$ |
143,184 |
|
$ |
427,826 |
|
| Restricted cash used for purchases of real estate related and other loans |
|
$ |
|
|
$ |
91,481 |
|
$ |
384,850 |
|
| Restricted cash used for repayments of CDO bonds payable |
|
$ |
513,879 |
|
$ |
166,845 |
|
$ |
101,687 |
|
| Restricted cash used for repurchases of CDO bonds payable and other bonds payable |
|
$ |
|
|
$ |
|
|
$ |
3,213 |
|
| Restricted cash used for purchases of derivative instruments |
|
$ |
|
|
$ |
408 |
|
$ |
|
|
| Restricted cash used for settlement of derivative instruments |
|
$ |
1,563 |
|
$ |
|
|
$ |
|
|
| 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 receivables and other assets |
| |
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
2012 |
|
| Accounts receivable, net |
|
$ |
83,905 |
|
$ |
1,102 |
|
| Deferred financing costs |
|
|
50,770 |
|
|
2,249 |
|
| Derivative assets |
|
|
43,662 |
|
|
165 |
|
| Prepaid expenses |
|
|
18,635 |
|
|
2,183 |
|
| Interest receivable |
|
|
4,667 |
|
|
8,959 |
|
| Deposits |
|
|
19,555 |
|
|
|
|
| Inventory |
|
|
12,837 |
|
|
|
|
| Miscellaneous assets, net |
|
|
18,040 |
|
|
2,704 |
|
| |
|
$ |
252,071 |
|
$ |
17,362 |
|
|
| Schedule of accounts payable, accrued expenses and other liabilities |
Accounts payable, accrued expenses and other liabilities are
comprised of the following:
| |
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
2012 |
|
| Accounts payable and accrued expenses |
|
$ |
104,309 |
|
$ |
6,833 |
|
| Membership deposit liabilities |
|
|
71,644 |
|
|
|
|
| Deferred revenue |
|
|
67,740 |
|
|
6,584 |
|
| Security deposits payable |
|
|
48,823 |
|
|
33 |
|
| Unfavorable leasehold interests |
|
|
24,598 |
|
|
|
|
| Derivative liabilities |
|
|
13,795 |
|
|
31,576 |
|
| Pension and other postretirement benefit obligations |
|
|
10,471 |
|
|
|
|
| Self-insurance liabilities |
|
|
6,384 |
|
|
|
|
| Accrued rent |
|
|
6,314 |
|
|
|
|
| Due to affiliates |
|
|
5,878 |
|
|
3,579 |
|
| Miscellaneous liabilities |
|
|
30,461 |
|
|
2,522 |
|
| |
|
$ |
390,417 |
|
$ |
51,127 |
|
|
| Schedule of accretion of discount and other amortization |
As reflected on the consolidated statements of cash flows, this item is comprised of the following:
| |
|
Year ended December 31, |
| |
|
2013 |
|
2012 |
|
2011 |
|
| Accretion of net discount on securities, loans and other investments |
|
$ |
(34,525 |
) |
$ |
(48,608 |
) |
$ |
(45,387 |
) |
| Amortization of net discount on debt obligations |
|
|
2,859 |
|
|
1,525 |
|
|
(823 |
) |
| Amortization of deferred financing costs and interest rate cap premiums |
|
|
1,056 |
|
|
2,751 |
|
|
3,740 |
|
| Amortization of net deferred hedge (gains) and losses - debt |
|
|
(11 |
) |
|
(1,250 |
) |
|
(2,316 |
) |
| |
|
$ |
(30,621 |
) |
$ |
(45,582 |
) |
$ |
(44,786 |
) |
|