|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
12 Months Ended |
|
Dec. 31, 2014
|
| Accounting Policies [Abstract] |
|
| Schedule of accumulated other comprehensive income |
The following table summarizes Newcastle’s accumulated other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
Net unrealized gains on securities
|
$
|
67,682
|
|
|
$
|
82,408
|
|
|
Net unrealized losses on derivatives designated as cash flow hedges
|
(1,817
|
)
|
|
(5,992
|
)
|
|
Net unrecognized gain and prior service cost
|
—
|
|
|
458
|
|
|
Accumulated other comprehensive income
|
$
|
65,865
|
|
|
$
|
76,874
|
|
|
| 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,
|
|
|
2014
|
|
2013
|
|
2012
|
|
Gain (loss) on settlement of investments, net
|
|
|
|
|
|
|
Gain on settlement of real estate securities
|
$
|
23,679
|
|
|
$
|
9,853
|
|
|
$
|
14,629
|
|
|
Loss on settlement of real estate securities
|
—
|
|
|
(3,592
|
)
|
|
(4,433
|
)
|
|
Gain on sale of CDO X interests
|
—
|
|
|
—
|
|
|
224,317
|
|
|
Settlement of TBAs
|
(4,151
|
)
|
|
—
|
|
|
—
|
|
|
Gain on repayment/disposition of loans held-for-sale
|
32,500
|
|
|
10,716
|
|
|
—
|
|
|
Loss on repayment/disposition of loans held-for-sale
|
—
|
|
|
(354
|
)
|
|
(1,614
|
)
|
|
Gain on termination of derivative
|
—
|
|
|
813
|
|
|
—
|
|
|
Gain (loss) on disposal of long-lived assets
|
(1,294
|
)
|
|
(67
|
)
|
|
(2
|
)
|
|
|
$
|
50,734
|
|
|
$
|
17,369
|
|
|
$
|
232,897
|
|
|
Other income (loss), net
|
|
|
|
|
|
|
Gain on non-hedge derivative instruments
|
$
|
17,599
|
|
|
$
|
10,525
|
|
|
$
|
9,180
|
|
|
Gain on lease modifications and terminations
|
7,219
|
|
|
—
|
|
|
—
|
|
|
Unrealized loss recognized upon de-designation of hedges
|
(34
|
)
|
|
(110
|
)
|
|
(7,036
|
)
|
|
Hedge ineffectiveness
|
—
|
|
|
—
|
|
|
483
|
|
|
Equity in earnings of equity method investees
|
954
|
|
|
(97
|
)
|
|
—
|
|
|
Collateral management fee income, net
|
963
|
|
|
1,279
|
|
|
1,786
|
|
|
Other income (loss)
|
437
|
|
|
1,759
|
|
|
981
|
|
|
|
$
|
27,138
|
|
|
$
|
13,356
|
|
|
$
|
5,394
|
|
|
| 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
Accumulated Other Comprehensive
Income (“AOCI”) Components
|
|
Income Statement
Location
|
|
2014
|
|
2013
|
|
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
|
)
|
|
Gain on settlement of real estate securities
|
|
Gain (loss) on settlement of investments, net
|
|
23,679
|
|
|
9,853
|
|
|
Loss on settlement of real estate securities
|
|
Gain (loss) on settlement of investments, net
|
|
—
|
|
|
(3,592
|
)
|
|
|
|
|
|
$
|
23,679
|
|
|
$
|
995
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
Deferred hedge gain (loss) reclassified from AOCI into earnings
|
|
Interest expense
|
|
27
|
|
|
(99
|
)
|
|
Loss reclassified from AOCI into income, related to effective portion
|
|
Interest expense
|
|
(4,379
|
)
|
|
(6,128
|
)
|
|
|
|
|
|
$
|
(4,352
|
)
|
|
$
|
(6,227
|
)
|
|
|
|
|
|
|
|
|
|
Total reclassifications
|
|
|
|
$
|
19,327
|
|
|
$
|
(5,232
|
)
|
|
| 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
|
15-30 years
|
|
Building improvements
|
3-10 years
|
|
Capital leases - equipment
|
shorter of the lease term or estimated useful life of the asset
|
|
Furniture, fixtures, and equipment
|
3-10 years
|
|
Leasehold improvements
|
shorter of the lease term or estimated
|
|
|
useful life of the asset
|
|
| Schedule of amortization period |
Amortization of all intangible assets is calculated using the straight-line method based on the following estimated useful lives:
|
|
|
|
Golf business
|
|
|
Trade name
|
30 - 40 years
|
|
Leasehold intangibles
|
9 - 27 years
|
|
Management contracts
|
11 - 12 years
|
|
Internally-developed software
|
5 years
|
|
Membership base
|
7 years
|
|
| Schedule of restricted cash from continuing operations |
Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash consisted of:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
CDO bond sinking funds
|
$
|
11,497
|
|
|
$
|
1,902
|
|
|
CDO trustee accounts
|
293
|
|
|
442
|
|
|
Derivative margin accounts
|
877
|
|
|
—
|
|
|
Collateral for Golf lease obligations
|
3,047
|
|
|
3,512
|
|
|
|
$
|
15,714
|
|
|
$
|
5,856
|
|
|
| Schedule of supplemental non-cash investing and financing activities relating to CDOs |
Reduction of assets and liabilities relating to spin-offs and acquisitions are disclosed below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
2014
|
|
2013
|
|
2012
|
|
Reduction of Assets and Liabilities relating to the spin-off of New Residential/New Media/New Senior, non-cash portion
|
|
|
|
|
|
|
Real estate securities, available-for-sale
|
$
|
—
|
|
|
$
|
1,647,289
|
|
|
$
|
—
|
|
|
Residential mortgage loans, held-for-investment, net
|
$
|
—
|
|
|
$
|
35,865
|
|
|
$
|
—
|
|
|
Investments in excess mortgage servicing rights at fair value
|
$
|
—
|
|
|
$
|
229,936
|
|
|
$
|
—
|
|
|
Investments in equity method investees
|
$
|
—
|
|
|
$
|
392,469
|
|
|
$
|
—
|
|
|
Investments in senior housing real estate, net
|
$
|
1,574,048
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Property, plant and equipment, net
|
$
|
266,385
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Goodwill and intangibles, net
|
$
|
379,008
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Restricted cash
|
$
|
6,477
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Receivables and other assets
|
$
|
197,882
|
|
|
$
|
37,844
|
|
|
$
|
—
|
|
|
Mortgage notes payable
|
$
|
1,260,633
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Credit facilities - media
|
$
|
177,955
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Repurchase agreements
|
$
|
—
|
|
|
$
|
1,320,360
|
|
|
$
|
—
|
|
|
Accrued expenses and other liabilities
|
$
|
189,940
|
|
|
$
|
642
|
|
|
$
|
—
|
|
|
Acquisitions of Assets and Liabilities relating to media and golf investments, non-cash portion
|
|
|
|
|
|
|
Investments in other real estate
|
$
|
—
|
|
|
$
|
259,573
|
|
|
$
|
—
|
|
|
Property, plant and equipment
|
$
|
—
|
|
|
$
|
272,153
|
|
|
$
|
—
|
|
|
Intangibles
|
$
|
—
|
|
|
$
|
244,885
|
|
|
$
|
—
|
|
|
Goodwill
|
$
|
—
|
|
|
$
|
126,686
|
|
|
$
|
—
|
|
|
Receivables and other assets
|
$
|
—
|
|
|
$
|
145,191
|
|
|
$
|
—
|
|
|
Credit facilities
|
$
|
—
|
|
|
$
|
334,498
|
|
|
$
|
—
|
|
|
Accounts payable, accrued expenses and other liabilities
|
$
|
—
|
|
|
$
|
287,439
|
|
|
$
|
—
|
|
|
Noncontrolling interests
|
$
|
—
|
|
|
$
|
366
|
|
|
$
|
—
|
|
Supplemental non-cash investing and financing activities relating to CDOs are disclosed below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
2014
|
|
2013
|
|
2012
|
|
Restricted cash generated from sale of securities
|
$
|
125,850
|
|
|
$
|
136,148
|
|
|
$
|
56,629
|
|
|
Restricted cash generated from sale of real estate related and other loans
|
$
|
—
|
|
|
$
|
104,837
|
|
|
$
|
—
|
|
|
Restricted cash generated from paydowns on securities and loans
|
$
|
325,932
|
|
|
$
|
331,349
|
|
|
$
|
274,832
|
|
|
Restricted cash used for purchases of real estate securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
143,184
|
|
|
Restricted cash used for purchases of real estate related and other loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91,481
|
|
|
Restricted cash used for repayments of CDO bonds payable
|
$
|
382,177
|
|
|
$
|
513,879
|
|
|
$
|
166,845
|
|
|
Restricted cash used for purchases of derivative instruments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
408
|
|
|
Restricted cash used for settlement of derivative instruments
|
$
|
—
|
|
|
$
|
1,563
|
|
|
$
|
—
|
|
|
Restricted cash used to return margin collateral
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,550
|
|
|
|
|
|
|
|
|
|
CDO deconsolidation:
|
|
|
|
|
|
|
Real estate securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,033,016
|
|
|
Restricted cash
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,522
|
|
|
Derivative liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57,343
|
|
|
CDO bonds payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,110,694
|
|
|
| Schedule of receivables and other assets |
Receivables and other assets are comprised of the following, net of allowances for uncollectable amounts of $0.9 million, as of December 31, 2014 and 2013:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
Accounts receivable, net
|
$
|
7,369
|
|
|
$
|
8,230
|
|
|
Derivative assets
|
—
|
|
|
43,662
|
|
|
Prepaid expenses
|
6,639
|
|
|
5,937
|
|
|
Interest receivable
|
2,324
|
|
|
4,667
|
|
|
Deposits
|
7,339
|
|
|
8,537
|
|
|
Inventory
|
4,964
|
|
|
4,891
|
|
|
Miscellaneous assets, net
|
6,939
|
|
|
8,242
|
|
|
|
$
|
35,574
|
|
|
$
|
84,166
|
|
|
| Schedule of accounts payable, accrued expenses and other liabilities |
Accounts payable, accrued expenses and other liabilities are comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
Accounts payable and accrued expenses
|
$
|
35,854
|
|
|
$
|
33,689
|
|
|
Membership deposit liabilities
|
79,678
|
|
|
71,644
|
|
|
Deferred revenue
|
29,322
|
|
|
33,162
|
|
|
Security deposits payable
|
5,293
|
|
|
5,144
|
|
|
Unfavorable leasehold interests
|
6,443
|
|
|
23,113
|
|
|
Derivative liabilities
|
4,328
|
|
|
13,795
|
|
|
Accrued rent
|
2,605
|
|
|
—
|
|
|
Due to affiliates
|
1,125
|
|
|
2,235
|
|
|
Miscellaneous liabilities
|
14,742
|
|
|
17,157
|
|
|
|
$
|
179,390
|
|
|
$
|
199,939
|
|
|
| Schedule of accretion of discount and other amortization |
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,
|
|
|
2014
|
|
2013
|
|
2012
|
|
Accretion of net discount on securities, loans and other investments
|
$
|
(28,638
|
)
|
|
$
|
(34,525
|
)
|
|
$
|
(48,608
|
)
|
|
Amortization of net discount on debt obligations
|
6,907
|
|
|
2,859
|
|
|
1,525
|
|
|
Amortization of deferred financing costs and interest rate cap premiums
|
7,310
|
|
|
1,056
|
|
|
2,751
|
|
|
Amortization of net deferred hedge (gains) and losses - debt
|
(61
|
)
|
|
(11
|
)
|
|
(1,250
|
)
|
|
Amortization of leasehold intangibles
|
5,000
|
|
|
—
|
|
|
—
|
|
|
Accretion of membership deposit liability
|
5,663
|
|
|
—
|
|
|
—
|
|
|
|
$
|
(3,819
|
)
|
|
$
|
(30,621
|
)
|
|
$
|
(45,582
|
)
|
|