Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v2.4.0.8
SEGMENT REPORTING
6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in servicer advances, (iii) investments in real estate securities, (iv) investments in real estate loans, (v) investments in consumer loans, and (vi) corporate. The corporate segment consists primarily of (i) general and administrative expenses, (ii) the allocation of management fees by Newcastle until the spin-off on May 15, 2013, (iii) the management fees and incentive compensation owed to the Manager by New Residential following the spin-off, (iv) corporate cash and related interest income, and (v) the secured corporate loan and related interest expense.
 
Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole:
 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loans
 
Corporate
 
Total
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
10,973

 
$
57,107

 
$
19,522

 
$
5,054

 
$

 
$

 
$
92,656

Interest expense

 
29,772

 
3,512

 
1,191

 
1,538

 
499

 
36,512

Net interest income (expense)
10,973

 
27,335

 
16,010

 
3,863

 
(1,538
)
 
(499
)
 
56,144

Impairment

 

 
615

 
293

 

 

 
908

Other income
18,245

 
82,709

 
53,413

 
2,187

 
21,335

 

 
177,889

Operating expenses
320

 
769

 
571

 
887

 
90

 
26,885

 
29,522

Income (Loss) Before Income Taxes
28,898

 
109,275

 
68,237

 
4,870

 
19,707

 
(27,384
)
 
203,603

Income tax expense

 
21,395

 

 

 

 

 
21,395

Net Income (Loss)
$
28,898

 
$
87,880

 
$
68,237

 
$
4,870

 
$
19,707

 
$
(27,384
)
 
$
182,208

Noncontrolling interests in income
   (loss) of consolidated subsidiaries
$

 
$
58,705

 
$

 
$

 
$

 
$

 
$
58,705

Net income (loss) attributable to
   common stockholders
$
28,898

 
$
29,175

 
$
68,237

 
$
4,870

 
$
19,707

 
$
(27,384
)
 
$
123,503


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loans
 
Corporate
 
Total
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
24,789

 
$
102,823

 
$
30,760

 
$
5,774

 
$

 
$

 
$
164,146

Interest expense
1,291

 
61,728

 
7,581

 
1,389

 
3,021

 
499

 
75,509

Net interest income (expense)
23,498

 
41,095

 
23,179

 
4,385

 
(3,021
)
 
(499
)
 
88,637

Impairment

 

 
943

 
457

 

 

 
1,400

Other income
31,221

 
82,709

 
58,455

 
2,858

 
37,695

 
1

 
212,939

Operating expenses
385

 
1,019

 
631

 
977

 
113

 
36,296

 
39,421

Income (Loss) Before Income Taxes
54,334

 
122,785

 
80,060

 
5,809

 
34,561

 
(36,794
)
 
260,755

Income tax expense

 
21,682

 

 

 

 

 
21,682

Net Income (Loss)
$
54,334

 
$
101,103

 
$
80,060

 
$
5,809

 
$
34,561

 
$
(36,794
)
 
$
239,073

Noncontrolling interests in income
    (loss) of consolidated subsidiaries
$

 
$
66,798

 
$

 
$

 
$

 
$

 
$
66,798

Net income (loss) attributable to
    common stockholders
$
54,334

 
$
34,305

 
$
80,060

 
$
5,809

 
$
34,561

 
$
(36,794
)
 
$
172,275


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loans
 
Corporate
 
Total
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
702,636

 
$
3,679,105

 
$
1,463,903

 
$
517,424

 
$
250,048

 
$

 
$
6,613,116

Cash and cash equivalents
3,405

 
120,722

 
22,714

 
617

 
2,152

 
161,516

 
311,126

Restricted cash

 
37,327

 

 

 

 

 
37,327

Derivative assets

 

 
256

 
30,736

 

 

 
30,992

Other assets

 
7,925

 
6,499

 
31,435

 
557

 
339

 
46,755

Total assets
$
706,041

 
$
3,845,079

 
$
1,493,372

 
$
580,212

 
$
252,757

 
$
161,855

 
$
7,039,316

Debt
$

 
$
3,265,530

 
$
1,331,354

 
$
382,743

 
$
125,000

 
$

 
$
5,104,627

Other liabilities
1,205

 
20,595

 
254

 
1,925

 
519

 
98,411

 
122,909

Total liabilities
1,205

 
3,286,125

 
1,331,608

 
384,668

 
125,519

 
98,411

 
5,227,536

Total equity
704,836

 
558,954

 
161,764

 
195,544

 
127,238

 
63,444

 
1,811,780

Noncontrolling interests in equity
    of consolidated subsidiaries

 
313,301

 

 

 

 

 
313,301

Total New Residential
    stockholders’ equity
$
704,836

 
$
245,653

 
$
161,764

 
$
195,544

 
$
127,238

 
$
63,444

 
$
1,498,479

Investments in equity method
    investees
$
330,220

 
$

 
$

 
$

 
$
250,048

 
$

 
$
580,268

 
 
Servicing Related Assets

Residential Securities and Loans

 

 

 
 
Excess MSRs

Servicer Advances

Real Estate Securities

Real Estate Loans

Consumer Loans

Corporate

Total
Three Months Ended June 30, 2013
 

 

 

 

 

 

 
Interest income
$
10,745


$


$
11,378


$
838


$


$
38


$
22,999

Interest expense




2,651








2,651

    Net interest income (expense)
10,745




8,727


838




38


20,348

Impairment




3,756








3,756

Other income
61,960




58




36,164




98,182

Operating expenses
34




27


125




5,366


5,552

Income (Loss) Before Income Taxes
72,671




5,002


713


36,164


(5,328
)

109,222

Income tax expense













Net Income (Loss)
$
72,671


$


$
5,002


$
713


$
36,164


$
(5,328
)

$
109,222

Noncontrolling interests in income
    (loss) of consolidated subsidiaries
$


$


$


$


$


$


$

Net income (loss) attributable to
    common stockholders
$
72,671


$


$
5,002


$
713


$
36,164


$
(5,328
)

$
109,222


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loans
 
Corporate
 
Total
Six Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
20,780

 
$

 
$
17,188

 
$
1,184

 
$

 
$
38

 
$
39,190

Interest expense

 

 
3,550

 

 

 

 
3,550

Net interest income (expense)
20,780

 

 
13,638

 
1,184

 

 
38

 
35,640

Impairment

 

 
3,756

 

 

 

 
3,756

Other income
64,787

 

 
58

 

 
36,164

 

 
101,009

Operating expenses
96

 

 
22

 
130

 
1,951

 
8,397

 
10,596

Income (Loss) Before Income Taxes
85,471

 

 
9,918

 
1,054

 
34,213

 
(8,359
)
 
122,297

Income tax expense

 

 

 

 

 

 

Net Income (Loss)
$
85,471

 
$

 
$
9,918

 
$
1,054

 
$
34,213

 
$
(8,359
)
 
$
122,297

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$

 
$

 
$

 
$

 
$

 
$

Net income (loss) attributable to common stockholders
$
85,471

 
$

 
$
9,918

 
$
1,054

 
$
34,213

 
$
(8,359
)
 
$
122,297