|
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:
|
|
|
|
|
|
|
|
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|
|
|
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:
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|
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|
|
|
|
|
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|
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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
|
|
|
|
|
|
|
|
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|
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| 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:
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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
|
|
|
|
|
|
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|
|
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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
|
|
|
|
|
|
|
|
|
|
|
|
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|
Gain (loss) reclassified from AOCI into income, related to effective
portion
|
|
Interest expense
|
|
|
(6,128
|
)
|
|
—
|
|
|
|
|
|
|
$
|
(6,227
|
)
|
$
|
(5,303
|
)
|
|
|
|
|
|
|
|
|
|
|
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|
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:
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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:
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|
Senior housing
|
|
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|
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:
|
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|
|
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|
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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:
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|
|
|
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|
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|
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
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
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|
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|
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
|
)
|
|