Current report filing

EQUITY AND EARNINGS PER SHARE - Outstanding Options (Details 2)

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EQUITY AND EARNINGS PER SHARE - Outstanding Options (Details 2) (USD $)
In Thousands, except Share data, unless otherwise specified
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Stock Options outstanding 30,542,553 13,409,275
Options Exercisable 13,737,462  
Stock Options
    
Recipient Outstanding  
Options Exercised
    
Date of Exercise Prior to 2008 [1]  
Options Exercised (1,043,118) [1]  
Exercises - Weighted Average Strike Price $ 15.70 [1],[2]  
Options Exercised
    
Date of Exercise Oct 12 [3]  
Options Exercised (95,834) [3]  
Exercises - Weighted Average Strike Price $ 5.28 [2],[3]  
Options Exercised
    
Date of Exercise Sep 13 [4]  
Options Exercised (307,833) [4]  
Exercises - Weighted Average Strike Price $ 2.56 [2],[4]  
Options Expired Unexercised
    
Date of Grant 2002-2003  
Options expired unexercised (464,484)  
Directors
    
Stock Options outstanding 4,000 12,000
Options Exercised 4,000  
Directors | Stock Options
    
Recipient Directors  
Date of Grant Various  
Stock Options outstanding 20,000  
Options Exercisable 4,000  
Weighted Average Strike Price $ 8.06 [2]  
Intrinsic Value $ 4,800 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant 2002 - 2007 [5]  
Stock Options outstanding 3,523,727 [5]  
Options Exercisable 2,032,125 [5]  
Weighted Average Strike Price $ 12.66 [2],[5]  
Fair Value at Date of Grant $ 6,400 [5],[6]  
Intrinsic Value 8,900 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant Mar 11 [5]  
Stock Options outstanding 1,725,000 [5]  
Options Exercisable 1,580,166 [5]  
Weighted Average Strike Price $ 2.72 [2],[5]  
Fair Value at Date of Grant $ 7,000 [5],[6],[7]  
Intrinsic Value 5,500 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant Sep 11 [5]  
Stock Options outstanding 2,587,500 [5]  
Options Exercisable 2,165,361 [5]  
Weighted Average Strike Price $ 2.07 [2],[5]  
Fair Value at Date of Grant $ 5,600 [5],[6],[8]  
Intrinsic Value 6,100 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant Apr 12 [5]  
Stock Options outstanding 1,897,500 [5]  
Options Exercisable 1,244,778 [5]  
Weighted Average Strike Price $ 2.82 [2],[5]  
Fair Value at Date of Grant $ 5,600 [5],[6],[9]  
Intrinsic Value 6,700 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant May 12 [5]  
Stock Options outstanding 2,300,000 [5]  
Options Exercisable 1,421,667 [5]  
Weighted Average Strike Price $ 3.05 [2],[5]  
Fair Value at Date of Grant $ 7,600 [10],[5],[6]  
Intrinsic Value 8,600 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant Jul 12 [5]  
Stock Options outstanding 2,530,000 [5]  
Options Exercisable 1,416,195 [5]  
Weighted Average Strike Price $ 3.04 [2],[5]  
Fair Value at Date of Grant $ 8,300 [11],[5],[6]  
Intrinsic Value 2,300 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant Jan 13 [5]  
Stock Options outstanding 5,750,000 [5]  
Options Exercisable 2,108,333 [5]  
Weighted Average Strike Price $ 4.24 [2],[5]  
Fair Value at Date of Grant $ 18,000 [12],[5],[6]  
Intrinsic Value 3,100 [5]  
Manager
    
Date of Grant Feb 13 [5]  
Stock Options outstanding 2,300,000 [5]  
Options Exercisable 766,667 [5]  
Weighted Average Strike Price $ 4.75 [2],[5]  
Intrinsic Value $ 2,800 [5]  
Manager | Stock Options
    
Recipient Manager [5]  
Fair Value at Date of Grant $ 8,400 [13],[5],[6]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant Jun 13 [5]  
Stock Options outstanding 4,025,000 [5]  
Options Exercisable 805,000 [5]  
Weighted Average Strike Price $ 4.97 [2],[5]  
Fair Value at Date of Grant $ 3,800 [14],[5],[6]  
Manager | Stock Options
    
Recipient Manager [5]  
Date of Grant Nov 13 [5]  
Stock Options outstanding 5,795,095 [5]  
Options Exercisable 193,170 [5]  
Weighted Average Strike Price $ 5.25 [2],[5]  
Fair Value at Date of Grant $ 6,000 [15],[5],[6]  
Exercised | Stock Options
    
Recipient Exercised [1]  
Exercised | Stock Options
    
Recipient Exercised [3]  
Exercised | Stock Options
    
Recipient Exercised [4]  
Expired unexercised | Stock Options
    
Recipient Expired unexercised  
[1] 670,620 of the total options exercised were by the Manager. 368,498 of the total options exercised were by employees of Fortress subsequent to their assignment. 4,000 of the total options exercised were by directors.
[2] The strike prices are subject to adjustment in connection with return of capital dividends and spin-offs. A portion of Newcastle's 2008 dividends was deemed return of capital dividends. The effect on the strike prices was not significant. The strike prices were adjusted for the New Residential spin-off as described above. As of December 31, 2013, the weighted average strike price of the outstanding options issued prior to 2011 was $12.66.
[3] Exercised by employees of Fortress subsequent to their assignment. The options exercised had an intrinsic value of $0.2 million.
[4] Exercised by employees of Fortress subsequent to their assignment. The options exercised had an intrinsic value of $0.9 million.
[5] The Manager assigned certain of its options to Fortress's employees as follows: (See Schedule of Outstanding Options)
[6] The fair value of the options was estimated using an option valuation model. Since the Newcastle Option Plan and 2012 Plan have characteristics significantly different from those of traded options, and since the assumptions used in such model, particularly the volatility assumption, are subject to significant judgment and variability, the actual value of the options could vary materially from management's estimate. The volatility assumption for these options was estimated based primarily on the historical volatility of Newcastle's common stock and management's expectations regarding future volatility. The expected life assumption for options issued prior to 2011 was estimated based on the simplified term method. This simplified method was used because Newcastle did not have sufficient historical data to conclude on the appropriate expected life of its options and because historical data to date was consistent with the simplified term method. The expected life assumption for options issued in 2011 and thereafter was estimated based primarily on the historical expected life of applicable previously issued options.
[7] The assumptions used in valuing the options were: a 1.7% risk-free rate, 107.8% volatility and a 3.3 year expected term.
[8] The assumptions used in valuing the options were: a 1.13% risk-free rate, 13.2% dividend yield, 151.1% volatility and a 4.6 year expected term.
[9] The assumptions used in valuing the options were: a 1.3% risk-free rate, 12.9% dividend yield, 149.4% volatility and a 4.7 year expected term.
[10] The assumptions used in valuing the options were: a 1.05% risk-free rate, 11.9% dividend yield, 148.4% volatility and a 4.8 year expected term.
[11] The assumptions used in valuing the options were: a 0.75% risk-free rate, 11.9% dividend yield, 147.5% volatility and a 4.8 year expected term.
[12] The assumptions used in valuing the options were: a 2.0% risk-free rate, 8.8% dividend yield, 56.2% volatility and a 10 year term.
[13] The assumptions used in valuing the options were: a 2.1% risk-free rate, 7.8% dividend yield, 55.5% volatility and a 10 year term.
[14] The assumptions used in valuing the options were: a 2.5% risk-free rate, 8.8% dividend yield, 36.9% volatility and a 10 year term.
[15] The assumptions used in valuing the options were: a 2.8% risk-free rate, 6.7% dividend yield, 32.0% volatility and a 10 year term.