Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

v2.4.1.9
DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

3.   DISCONTINUED OPERATIONS

On February 13, 2014, Newcastle completed the spin-off of New Media Investment Group Inc. ("New Media") from Newcastle. The following table presents the carrying value of the assets and liabilities of New Media, immediately preceding the February 13, 2014 spin-off.
 
February 13, 2014
Assets
 
Property, plant and equipment, net
$
266,385

Intangibles, net
144,664

Goodwill
126,686

Cash and cash equivalents
23,845

Restricted cash
6,477

Receivables and other assets
101,940

Total Assets
$
669,997

 
 
Liabilities
 
Credit facilities - media
$
177,955

Accounts payable, accrued expenses and other liabilities
100,695

Total Liabilities
$
278,650

 
 
Net Assets
$
391,347


On November 6, 2014, Newcastle completed the spin-off of New Senior Investment Group Inc. ("New Senior") from Newcastle. The following table presents the carrying value of the assets and liabilities of New Senior, immediately preceding the November 6, 2014 spin-off.
 
November 6, 2014
Assets
 
Investment in senior housing real estate, net
$
1,574,048

Intangibles, net
107,658

Cash and cash equivalents
245,246

Receivables and other assets
95,942

Total Assets
$
2,022,894

 
 
Liabilities
 
Mortgage notes payable
$
1,260,633

Accounts payable, accrued expenses and other liabilities
89,245

Total Liabilities
$
1,349,878

 
 
Net Assets
$
673,016


Newcastle initially reported its commercial real estate properties in Beavercreek, OH as held-for-sale as of September 30, 2014 and the properties continue to be reported as held-for-sale as of March 31, 2015. As a result of the spin-offs and the plan to sell the commercial real estate properties in Beavercreek, OH, the assets, liabilities and results of operations of those components of Newcastle’s operations that (i) were part of the spin-offs, and/or (ii) represent operations in which Newcastle has no significant continuing involvement, are presented separately in discontinued operations in Newcastle’s consolidated financial statements for all periods presented.
In April 2015, Newcastle closed on the sale of these properties (see Note 20).
With respect to the planned sale of the commercial real estate properties in Beavercreek, Ohio, the assets of discontinued operations include investments in other real estate in the amount of $6.6 million as of both March 31, 2015 and December 31, 2014 and cash and cash equivalents, restricted cash and receivables and other assets in the total amount of $0.3 million and $0.2 million as of March 31, 2015 and December 31, 2014, respectively. The liabilities of discontinued operations include $0.5 million of accounts payable, accrued liabilities and other liabilities, as of both March 31, 2015 and December 31, 2014.


Results from discontinued operations were as follows:
 
Three Months Ended 
 March 31,
 
2015
 
2014
Interest income
$
—

 
$
—

Interest expense
—

 
15,797

Net interest income (loss)
—

 
(15,797
)
 
 
 
 
Media income
—

 
68,213

Rental income
499

 
52,890

Care and ancillary income
—

 
5,461

Total media, rental and other income
499

 
126,564

 
 
 
 
Media operating expenses
—

 
65,826

Property operating expenses
344

 
25,960

General and administrative expenses
29

 
7,552

Depreciation and amortization
11

 
27,488

Income tax (benefit) expense
—

 
(760
)
Total expenses
384

 
126,066

 
 
 
 
Income (loss) from discontinued operations
$
115

 
$
(15,299
)
 
 
 
 
Net income attributable to noncontrolling interests
$
—

 
$
522



The February 13, 2014 spin-off of New Media resulted in a $0.4 billion reduction in the basis upon which Newcastle’s management fees are computed (and an equivalent reduction in the basis upon which the incentive compensation threshold is computed), as well as a reduction in the strike price of Newcastle’s then outstanding options.

The November 6, 2014 spin-off of New Senior resulted in a $0.7 billion reduction in the basis upon which Newcastle’s management fees are computed (and an equivalent reduction in the basis upon which the incentive compensation threshold is computed), as well as a reduction in the strike price of Newcastle’s then outstanding options.