SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES

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SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES	SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES   Newcastle conducts its business through the following segments: (i) debt investments financed with collateralized debt obligations (“CDOs”), (ii) other debt investments (“Other Debt”), (iii) investment in golf properties and facilities (“Golf”) and (iv) corporate. The corporate segment consists primarily of interest income on short term investments, general and administrative expenses, interest expense on the junior subordinated notes payable and management fees pursuant to the Management Agreement. Summary financial data on Newcastle's segments is given below, together with reconciliation to the same data for Newcastle as a whole:   Debt Investments (A)           Discontinued           CDOs   Other Debt (B)   Golf   Corporate   Operations   Eliminations   Total Nine Months Ended September 30, 2015                           Interest income $ 30,983   $ 46,246   $ 110   $ 19   $ —   $ (3,005 )   $ 74,353 Interest expense (5,993 )   (28,789 )   (13,779 )   (2,836 )   —   3,005   (48,392 ) Inter-segment elimination (3,005 )   —   3,005   —   —   —   — Net interest income (expense) 21,985   17,457   (10,664 )   (2,817 )   —   —   25,961 Total impairment (reversal) 12,569   4,975   —   —   —   —   17,544 Total operating revenues —   —   226,493   —   —   —   226,493 Total other income (loss) 30,271   (3,070 )   14,606   54   —   —   41,861 Loan and security servicing expense 249   6   —   —   —   —   255 Operating expenses - golf (C) —   —   181,506   —   —   —   181,506 Operating expenses - golf, repairs and maintenance expenses —   —   6,853   —   —   —   6,853 Cost of sales - golf —   —   24,003   —   —   —   24,003 General and administrative expense —   —   1,960   5,767   —   —   7,727 General and administrative expense - acquisition and transaction expenses (D) —   60   1,239   50   —   —   1,349 Management fee to affiliate —   —   —   8,017   —   —   8,017 Depreciation and amortization —   —   20,983   —   —   —   20,983 Income tax expense —   —   1,330   —   —   —   1,330 Income (loss) from continuing operations 39,438   9,346   (7,439 )   (16,597 )   —   —   24,748 Income from discontinued operations, net of tax —   —   —   —   646   —   646 Net income (loss) 39,438   9,346   (7,439 )   (16,597 )   646   —   25,394 Preferred dividends —   —   —   (4,185 )   —   —   (4,185 ) Net loss attributable to noncontrolling interests —   —   217   —   —   —   217 Income (loss) applicable to common stockholders $ 39,438   $ 9,346   $ (7,222 )   $ (20,782 )   $ 646   $ —   $ 21,426 Summary segment financial data (continued).   Debt Investments (A)           Discontinued           CDOs   Other Debt (B)   Golf   Corporate   Operations   Eliminations   Total Three Months Ended September 30, 2015                           Interest income $ 1,375   $ 21,587   $ 38   $ 10   $ —   $ —   $ 23,010 Interest expense (680 )   (9,617 )   (3,473 )   (945 )   —   —   (14,715 ) Inter-segment elimination —   —   —   —   —   —   — Net interest income (expense) 695   11,970   (3,435 )   (935 )   —   —   8,295 Total impairment (reversal) 363   3,097   —   —   —   —   3,460 Total operating revenues —   —   82,864   —   —   —   82,864 Total other income (loss) —   (2,893 )   14,834   46   —   —   11,987 Loan and security servicing expense 35   6   —   —   —   —   41 Operating expenses - golf (C) —   —   65,518   —   —   —   65,518 Operating expenses - golf, repairs and maintenance expenses —   —   2,466   —   —   —   2,466 Cost of sales - golf —   —   8,842   —   —   —   8,842 General and administrative expense —   —   919   1,946   —   —   2,865 General and administrative expense - acquisition and transaction expenses (D) —   60   918   33   —   —   1,011 Management fee to affiliate —   —   —   2,675   —   —   2,675 Depreciation and amortization —   —   7,111   —   —   —   7,111 Income tax expense —   —   1,257   —   —   —   1,257 Income (loss) from continuing operations 297   5,914   7,232   (5,543 )   —   —   7,900 Income from discontinued operations, net of tax —   —   —   —   7   —   7 Net income (loss) 297   5,914   7,232   (5,543 )   7   —   7,907 Preferred dividends —   —   —   (1,395 )   —   —   (1,395 ) Net income attributable to noncontrolling interests —   —   (13 )   —   —   —   (13 ) Income (loss) applicable to common stockholders $ 297   $ 5,914   $ 7,219   $ (6,938 )   $ 7   $ —   $ 6,499 Summary segment financial data (continued).   Debt Investments (A)           Discontinued       CDOs   Other Debt (B)   Golf   Corporate   Operations   Total September 30, 2015                       Investments $ 49,397   $ 938,424   $ 307,933   $ —   $ —   $ 1,295,754 Cash and restricted cash 110   2,528   6,156   28,458   —   37,252 Other assets 95   371,036   33,954   446   —   405,531 Assets of discontinued operations —   —   —   —   53   53 Total assets 49,602   1,311,988   348,043   28,904   53   1,738,590 Debt, net 100,306   738,201   81,586   51,226   —   971,319 Other liabilities 22   379,197   150,915   13,325   —   543,459 Liabilities of discontinued operations —   —   —   —   —   — Total liabilities 100,328   1,117,398   232,501   64,551   —   1,514,778 Preferred stock —   —   —   61,583   —   61,583 Noncontrolling interests —   —   (181 )   —   —   (181 ) Equity attributable to common stockholders $ (50,726 )   $ 194,590   $ 115,723   $ (97,230 )   $ 53   $ 162,410                         Additions to investments in real estate excluding intangibles and other liabilities, net of other assets acquired $ —   $ —   $ 9,028   $ —   $ —   $ 9,028 Summary segment financial data (continued).   Debt Investments (A)           Discontinued           CDOs   Other Debt   Golf   Corporate   Operations   Eliminations   Total Nine Months Ended September 30, 2014                           Interest income $ 70,635   $ 39,102   $ 112   $ 41   $ —   $ (6,001 )   $ 103,889 Interest expense (16,932 )   (32,344 )   (14,764 )   (2,870 )   —   6,001   (60,909 ) Inter-segment elimination (6,001 )   1,748   4,253   —   —   —   — Net interest income (expense) 47,702   8,506   (10,399 )   (2,829 )   —   —   42,980 Total impairment (reversal) (2,185 )   942   —   —   —   —   (1,243 ) Total operating revenues —   —   226,863   —   —   —   226,863 Total other income 34,717   32,698   2,718   —   —   —   70,133 Loan and security servicing expense 466   958   —   —   —   —   1,424 Operating expenses - golf (C) —   —   187,681   —   —   —   187,681 Operating expenses - golf, repairs and maintenance expenses —   —   7,194   —   —   —   7,194 Cost of sales - golf —   —   23,183   —   —   —   23,183 General and administrative expense —   2,921   986   5,963   —   —   9,870 General and administrative expense - acquisition and transaction expenses (D) —   —   1,530   64   —   —   1,594 Management fee to affiliate —   —   —   16,853   —   —   16,853 Depreciation and amortization —   —   19,297   87   —   —   19,384 Income tax expense —   —   144   —   —   —   144 Income (loss) from continuing operations 84,138   36,383   (20,833 )   (25,796 )   —   —   73,892 Loss from discontinued operations —   —   —   —   (32,427 )   —   (32,427 ) Net income (loss) 84,138   36,383   (20,833 )   (25,796 )   (32,427 )   —   41,465 Preferred dividends —   —   —   (4,185 )   —   —   (4,185 ) Net loss attributable to non-controlling interests —   —   189   —   522   —   711 Income (loss) applicable to common stockholders $ 84,138   $ 36,383   $ (20,644 )   $ (29,981 )   $ (31,905 )   $ —   $ 37,991 Summary segment financial data (continued).   Debt Investments (A)           Discontinued           CDOs   Other Debt   Golf   Corporate   Operations   Eliminations   Total Three Months Ended September 30, 2014                           Interest income $ 19,316   $ 9,749   $ 37   $ 6   $ —   $ (1,564 )   $ 27,544 Interest expense (4,823 )   (9,343 )   (4,847 )   (962 )   —   1,564   (18,411 ) Inter-segment elimination (1,564 )   112   1,452   —   —   —   — Net interest income (expense) 12,929   518   (3,358 )   (956 )   —   —   9,133 Total impairment (reversal) (4,143 )   128   —   —   —   —   (4,015 ) Total operating revenues —   —   81,494   —   —   —   81,494 Total other income 1,822   8,067   2,729   —   —   —   12,618 Loan and security servicing expense 157   2   —   —   —   —   159 Operating expenses - golf (C) —   —   66,155   —   —   —   66,155 Operating expenses - golf, repairs and maintenance expenses —   —   2,592   —   —   —   2,592 Cost of sales - golf —   —   8,420   —   —   —   8,420 General and administrative expense —   1,051   527   2,238   —   —   3,816 General and administrative expense - acquisition and transaction expenses (D) —   —   27   (711 )   —   —   (684 ) Management fee to affiliate —   —   —   5,664   —   —   5,664 Depreciation and amortization —   —   7,191   13   —   —   7,204 Income tax expense —   —   —   —   — — — Income (loss) from continuing operations 18,737   7,404   (4,047 )   (8,160 )   —   —   13,934 Loss from discontinued operations —   —   —   —   (8,624 )   —   (8,624 ) Net income (loss) 18,737   7,404   (4,047 )   (8,160 )   (8,624 )   —   5,310 Preferred dividends —   —   —   (1,395 )   —   —   (1,395 ) Net loss attributable to non-controlling interests —   —   21   —   —   —   21 Income (loss) applicable to common stockholders $ 18,737   $ 7,404   $ (4,026 )   $ (9,555 )   $ (8,624 )   $ —   $ 3,936 (A) Assets held within non-recourse structures, including all of the assets in the CDO segment, are not available to satisfy obligations outside of such financings, except to the extent net cash flow distributions are received from such structures. Furthermore, creditors or beneficial interest holders of these structures generally have no recourse to the general credit of Newcastle. Therefore, the exposure to the economic losses from such structures generally is limited to invested equity in them and economically their book value cannot be less than zero. Therefore, impairment recorded in excess of Newcastle’s investment, which results in negative GAAP book value for a given non-recourse financing structure, cannot economically be incurred and will eventually be reversed through amortization, sales at gains, or as gains at the deconsolidation or termination of such non-recourse financing structure. (B) The following table summarizes the investments and debt in the other debt segment:   September 30, 2015   Investments   Debt Non-Recourse Outstanding Face Amount   Carrying Value   Outstanding Face Amount   Carrying Value Subprime mortgage loans subject to call options $ 392,342   $ 392,342   $ 392,342   $ 392,342 Other               Unlevered real estate securities (E) 37,347   12,111   —   — Levered real estate securities 354,806   370,342   345,859   345,859 Real estate related and other loans 230,229   142,802   —   — Other investments N/A   20,258   —   — Residential mortgage loans 925   569   —   —   $ 1,015,649   $ 938,424   $ 738,201   $ 738,201 (C) Operating expenses-golf includes rental expenses recorded under operating leases for carts and equipment in the amount of $1.1 million and $3.4 million for the three and nine months ended September 30, 2015, respectively and $1.2 million and $3.9 million for the three and nine months ended September 30, 2014. (D) Includes all transaction related and spin-off related expenses. (E) Excludes eight securities with zero value, which had an aggregate face amount of $115.5 million. Variable Interest Entities (“VIEs”) The consolidated variable interest entities ("VIEs") in which Newcastle has a significant interest include Newcastle’s CDOs, in which Newcastle has been determined to be the primary beneficiary and therefore consolidates them (with the exception of CDO V), since it has the power to direct the activities that most significantly impact the CDOs’ economic performance and would absorb a significant portion of their expected losses and receive a significant portion of their expected residual returns. Newcastle’s CDOs are held in special purpose entities whose debt is treated as non-recourse secured borrowings of Newcastle. The following table presents certain assets of VIEs, which are included in the Consolidated Balance Sheets. The assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs, and are in excess of those obligations. Additionally, the assets in the table below exclude intercompany balances that eliminate in consolidation.   September 30, 2015       (Unaudited)   December 31, 2014 Assets of consolidated VIEs that can only be used to settle obligations of consolidated VIEs       Real estate securities, available-for-sale $ 49,398   $ 219,490 Real estate related and other loans, held-for-sale, net —   230,200 Residential mortgage loans, held-for-sale, net —   3,211 Subprime mortgage loans subject to call option 392,342   406,217 Other investments —   20,308 Restricted cash 110   11,790 Receivables and other assets 95   1,927 Assets of discontinued operations —   6,803 Total assets of consolidated VIEs that can only be used to settle obligations of consolidated VIEs $ 441,945   $ 899,946 The following table presents certain liabilities of consolidated VIEs, which are included in the Consolidated Balance Sheets above. The liabilities in the table below include liabilities of consolidated VIEs due to third parties only, and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts where creditors or beneficial interest holders have recourse to the general credit of Newcastle.   September 30, 2015       (Unaudited)   December 31, 2014 Liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of Newcastle       CDO bonds payable $ 92,812   $ 227,673 Other bonds and notes payable 7,494   27,069 Financing of subprime mortgage loans subject to call option 392,342   406,217 Accounts payable, accrued expenses and other liabilities 22   2,391 Liabilities of discontinued operations —   447 Total liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of Newcastle $ 492,670   $ 663,797 Newcastle’s subprime securitizations and CDO V are also considered VIEs, but Newcastle does not control the decisions that most significantly impact their economic performance and no longer receives a significant portion of their returns. Newcastle deconsolidated CDO V as of June 17, 2011 as a result of an event of default which allowed Newcastle to be removed as collateral manager and prevents purchasing and selling of certain collateral within CDO V. In addition, Newcastle’s investments in RMBS, commercial mortgage backed securities (“CMBS”), CDO securities and real estate related and other loans may be deemed to be variable interests in VIEs, depending on their structure. Newcastle monitors these investments and analyzes the potential need to consolidate the related securitization entities pursuant to the VIE consolidation requirements. These analyses require considerable judgment in determining whether an entity is a VIE and determining the primary beneficiary of a VIE since they involve subjective determinations of significance, with respect to both power and economics. The result could be the consolidation of an entity that otherwise would not have been consolidated or the deconsolidation of an entity that otherwise would have been consolidated.  As of September 30, 2015, Newcastle has not consolidated these potential VIEs. This determination is based, in part, on the assessment that Newcastle does not have the power to direct the activities that most significantly impact the economic performance of these entities, such as if Newcastle owned a majority of the currently controlling class. In addition, Newcastle is not obligated to provide, and has not provided, any financial support to these entities. Newcastle had variable interests in the following unconsolidated VIEs at September 30, 2015, in addition to the subprime securitizations which are described in Note 6: Entity   Gross Assets (A)   Debt (A) (B)   Carrying Value of Newcastle's Investment (C) Newcastle CDO V   $ 80,426   $ 107,438   $ 9,183 (A) Face amount. (B) Newcastle CDO V includes $43.5 million face amount of debt owned by Newcastle with a carrying value of $9.2 million at September 30, 2015. (C) This amount represents Newcastle’s maximum exposure to loss from this entity.