Current report filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v2.4.0.8
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 Newcastle’s 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     (97 )       272  
Collateral management fee income, net     1,279     1,786     2,432  
Other income     1,718     978      
    $ 13,367   $ 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 from continuing operations

Restricted cash, from continuing operations, consisted of:

                 
      December 31,  
      2013   2012  
  CDO bond sinking funds     1,902     1,254  
  CDO trustee accounts     475     810  
  Collateral for Golf lease obligations     3,512      
      $ 5,889   $ 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 from continuing operations
               
    December 31,  
    2013   2012  
Accounts receivable, net   $ 13,477   $ 1,102  
Deferred financing costs     42,473     2,249  
Derivative assets     43,662     165  
Prepaid expenses     8,631     2,183  
Interest receivable     4,667     8,959  
Deposits     9,915      
Inventory     5,140      
Miscellaneous assets, net     13,922     2,704  
    $ 141,887   $ 17,362  
Schedule of accounts payable, accrued expenses and other liabilities from continuing operations

Accounts payable, accrued expenses and other liabilities, from continuing operations, are comprised of the following:

               
    December 31,  
    2013   2012  
Accounts payable and accrued expenses   $ 50,118   $ 6,833  
Membership deposit liabilities     71,644      
Deferred revenue     37,114     6,584  
Security deposits payable     48,823     33  
Unfavorable leasehold interests     23,916      
Derivative liabilities     13,794     31,576  
Accrued rent     6,314      
Due to affiliates     5,878     3,579  
Miscellaneous liabilities     19,565     2,522  
    $ 277,166   $ 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 )