Drive Shack Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES (Tables)

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting And Variable Interest Entities Tables

Summary financial data on Newcastle’s segments is given below, together with reconciliation to the same data for Newcastle as a whole:

	Non-Recourse CDOs (A)			Unlevered CDOs (B)		Unlevered Excess MSRs			Non-Recourse Senior Living			Non-Recourse Other (A)(C)			Recourse (D)			Unlevered Other (E)			Corporate			Inter-segment Elimination (F)			Total
Year Ended December 31, 2012
Interest income	$	196,517		$	490	$	27,508		$	-		$	72,343		$	8,984		$	10,491		$	170		$	(6,044	)	$	310,459
Interest expense		56,607			-		-			1,688			51,278			2,582			-			3,813			(6,044	)		109,924
Net interest income (expense)		139,910			490		27,508			(1,688	)		21,065			6,402			10,491			(3,643	)		-			200,535
Impairment (reversal)		(7,381	)		-		-			-			4,119			-			(2,402	)		-			-			(5,664	)
Other revenues		-			-		-			18,026			2,049			-			-			-			-			20,075
Other income (loss)		259,688			337		17,423			(82	)		930			-			1,421			-			-			279,717
Property operating expenses		-			-		-			11,539			1,404			-			-			-			-			12,943
Depreciation and amortization		-			-		-			5,784			1,191			-			-			-			-			6,975
Other operating expenses		915			1		5,695			6,846			3,314			-			45			35,079			-			51,895
Income (loss) from continuing operations		406,064			826		39,236			(7,913	)		14,016			6,402			14,269			(38,722	)		-			434,178
Income (loss) from discontinued operations		-			-		-			-			-			-			(68	)		-			-			(68	)
Net income (loss)		406,064			826		39,236			(7,913	)		14,016			6,402			14,201			(38,722	)		-			434,110
Preferred dividends		-			-		-			-			-			-			-			(5,580	)		-			(5,580	)

Income (loss) applicable to common stockholders	$	406,064		$	826	$	39,236		$	(7,913	)	$	14,016		$	6,402		$	14,201		$	(44,302	)	$	-		$	428,530

December 31, 2012
Investments	$	1,411,731		$	5,998	$	245,036		$	181,887		$	755,421		$	1,049,029		$	107,189		$	-		$	(62,336	)	$	3,693,955
Cash and restricted cash		2,064			-		-			9,720			-			-			-			222,178			-			233,962
Derivative assets		-			-		-			165			-			-			-			-			-			165
Other assets		7,422			7		33			4,946			113			2,740			1,924			202			(157	)		17,230
Total assets		1,421,217			6,005		245,069			196,718			755,534			1,051,769			109,113			222,380			(62,493	)		3,945,312
Debt		(1,095,598	)		-		-			(120,525	)		(651,540	)		(925,191	)		-			(51,243	)		62,336			(2,781,761	)
Derivative liabilities		(31,576	)		-		-			-			-			-			-			-			-			(31,576	)
Other liabilities		(5,681	)		-		(406	)		(5,084	)		(2,684	)		(171	)		(77	)		(44,969	)		157			(58,915	)
Total liabilities		(1,132,855	)		-		(406	)		(125,609	)		(654,224	)		(925,362	)		(77	)		(96,212	)		62,493			(2,872,252	)
Preferred stock		-			-		-			-			-			-			-			(61,583	)		-			(61,583	)
GAAP book value	$	288,362		$	6,005	$	244,663		$	71,109		$	101,310		$	126,407		$	109,036		$	64,585		$	-		$	1,011,477

	Non-Recourse CDOs (A)			Unlevered CDOs (B)		Unlevered Excess MSRs			Non-Recourse Senior Living		Non-Recourse Other (A)(C)			Recourse (D)			Unlevered Other (E)			Corporate			Inter-segment Elimination (F)			Total
Year Ended December 31, 2011
Interest income	$	218,131		$	344	$	1,260		$	-	$	73,364		$	2,234		$	2,636		$	167		$	(5,840	)	$	292,296
Interest expense		86,110			-		-			-		53,252			693			5			3,815			(5,840	)		138,035
Net interest income (expense)		132,021			344		1,260			-		20,112			1,541			2,631			(3,648	)		-			154,261
Impairment (reversal)		(3,876	)		-		-			-		8,469			-			(3,483	)		-			-			1,110
Other revenues		-			-		-			-		1,899			-			-			-			-			1,899
Other income (loss)		171,963			3,739		367			-		2,561			-			2,232			-			-			180,862
Property operating expenses		-			-		-			-		1,110			-			-			-			-			1,110
Depreciation and amortization		-			-		-			-		12			-			-			-			-			12
Other operating expenses		1,058			-		1,055			-		3,603			-			19			24,525			-			30,260
Income (loss) from continuing operations		306,802			4,083		572			-		11,378			1,541			8,327			(28,173	)		-			304,530
Income (loss) from discontinued operations		-			-		-			-		46			-			(57	)		-			-			(11	)
Net income (loss)		306,802			4,083		572			-		11,424			1,541			8,270			(28,173	)		-			304,519
Preferred dividends		-			-		-			-		-			-			-			(5,580	)		-			(5,580	)
Income (loss) applicable to common stockholders	$	306,802		$	4,083	$	572		$	-	$	11,424		$	1,541		$	8,270		$	(33,753	)	$	-		$	298,939

December 31, 2011
Investments	$	2,408,252		$	3,940	$	43,971		$	-	$	783,777		$	244,916		$	18,751		$	-		$	(143,018	)	$	3,360,589
Cash and restricted cash		105,040			-		-			-		-			-			9			157,347			-			262,396
Derivative assets		1,954			-		-			-		-			-			-			-			-			1,954
Other assets		23,203			8		-			-		116			593			2,085			1,208			(353	)		26,860
Total assets		2,538,449			3,948		43,971			-		783,893			245,509			20,845			158,555			(143,371	)		3,651,799
Debt		(2,410,151	)		-		-			-		(748,118	)		(233,194	)		-			(51,248	)		143,018			(3,299,693	)
Derivative liabilities		(119,320	)		-		-			-		-			-			-			-			-			(119,320	)
Other liabilities		(12,705	)		-		(4,186	)		-		(3,407	)		(23	)		(49	)		(20,680	)		353			(40,697	)
Total liabilities		(2,542,176	)		-		(4,186	)		-		(751,525	)		(233,217	)		(49	)		(71,928	)		143,371			(3,459,710	)
Preferred stock		-			-		-			-		-			-			-			(61,583	)		-			(61,583	)
GAAP book value	$	(3,727	)	$	3,948	$	39,785		$	-	$	32,368		$	12,292		$	20,796		$	25,044		$	-		$	130,506

	Non-Recourse CDOs (A)			Unlevered CDOs (B)		Unlevered Excess MSRs		Non-Recourse Senior Living		Non-Recourse Other (A)(C)			Recourse			Unlevered Other (E)			Corporate			Inter-segment Elimination (F)			Total
Year Ended December 31, 2010
Interest income	$	226,717		$	-	$	-	$	-	$	72,773		$	976		$	1,653		$	68		$	(1,915	)	$	300,272
Interest expense		108,437			-		-		-		60,705			656			356			3,980			(1,915	)		172,219
Net interest income (expense)		118,280			-		-		-		12,068			320			1,297			(3,912	)		-			128,053
Impairment, net of the reversal of prior valuation allowances on loans		(173,223	)		16		-		-		(38,561	)		(60	)		(29,030	)		-			-			(240,858	)
Other revenues		-			-		-		-		1,708			-			-			-			-			1,708
Other income (loss)		289,158			475		-		-		(5,491	)		(663	)		(1,269	)		77			-			282,287
Property operating expenses		-			-		-		-		1,283			-			-			-			-			1,283
Depreciation and amortization		-			-		-		-		79			-			-			-			-			79
Other operating expenses		1,483			-		-		-		3,160			4			(197	)		25,089			-			29,539
Income (loss) from continuing operations		579,178			459		-		-		42,324			(287	)		29,255			(28,924	)		-			622,005
Income (loss) from discontinued operations		-			-		-		-		(536	)		-			193			-			-			(343	)
Net income (loss)		579,178			459		-		-		41,788			(287	)		29,448			(28,924	)		-			621,662
Preferred dividends		-			-		-		-		-			-			-			(7,453	)		-			(7,453	)
Excess of carrying amount of exchanged preferred stock over fair value of consideration paid		-			-		-		-		-			-			-			43,043			-			43,043
Income (loss) applicable to common stockholders	$	579,178		$	459	$	-	$	-	$	41,788		$	(287	)	$	29,448		$	6,666		$	-		$	657,252

Schedule of Segment Other Non-Recourse Investments and Debt

	December 31, 2012								December 31, 2011
	Investments				Debt				Investments				Debt
	Outstanding		Carrying		Outstanding		Carrying		Outstanding		Carrying		Outstanding		Carrying
	Face Amount		Value		Face Amount*		Value*		Face Amount		Value		Face Amount*		Value*
Manufactured housing loan portfolio I	$	118,746	$	100,124	$	90,551	$	81,963	$	135,209	$	112,316	$	107,032	$	97,631
Manufactured housing loan portfolio II		153,193		150,123		117,907		117,191		178,603		175,120		143,869		142,589
Residential mortgage loans		52,352		38,709		-		-		56,377		40,380		54,842		53,771
Subprime mortgage loans subject to call options		406,217		405,814		406,217		405,814		406,217		404,723		406,217		404,723
Real estate securities		63,505		53,979		44,585		40,572		67,965		43,497		47,697		43,404
Operating real estate		N/A		6,672		6,000		6,000		N/A		7,741		6,000		6,000
	$	794,013	$	755,421	$	665,260	$	651,540	$	844,371	$	783,777	$	765,657	$	748,118

Schedule of Segment Reporting Investments in Unlevered Other Segment

	December 31, 2012						December 31, 2011
	Outstanding Face Amount		Carrying Value		Number of Investments		Outstanding Face Amount		Carrying Value		Number of Investments
Real estate securities*	$	229,299	$	68,863		38	$	141,903	$	3,674		21
Real estate related loans		80,298		29,831		2		24,543		6,366		1
Residential mortgage loans		3,645		2,471		130		5,227		2,687		170
Other investments		N/A		6,024		1		N/A		6,024		1
	$	313,242	$	107,189		171	$	171,673	$	18,751		193

Schedule of Holdings in Variable Interest Entities

Entity		Gross Assets (A)				Debt (B)				Carrying Value of Newcastle's Investment (C)
CDO V		$	264,246			$	280,503			$	5,998