Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.5.0.2
SEGMENT REPORTING
9 Months Ended
Sep. 30, 2016
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 management fees and incentive compensation related to the Management Agreement and (iii) corporate cash and related interest income. Securities owned by New Residential (Note 7) that are collateralized by servicer advances are included in the Servicer Advances segment. Secured corporate loans effectively collateralized by Excess MSRs are included in the Excess MSRs segment.
 
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 September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
30,617

 
$
101,359

 
$
58,855

 
$
13,947

 
$
77,231

 
$
379

 
$
282,388

Interest expense
4,002

 
54,802

 
13,008

 
6,153

 
18,523

 

 
96,488

Net interest income (expense)
26,615

 
46,557

 
45,847

 
7,794

 
58,708

 
379

 
185,900

Impairment

 

 
1,765

 
(291
)
 
18,566

 

 
20,040

Other income (loss)
(10,052
)
 
21,430

 
1,392

 
13,931

 

 

 
26,701

Operating expenses
536

 
1,029

 
369

 
4,251

 
11,976

 
22,414

 
40,575

Income (Loss) Before Income Taxes
16,027

 
66,958

 
45,105

 
17,765

 
28,166

 
(22,035
)
 
151,986

Income tax expense (benefit)

 
16,348

 

 
4,556

 

 
(4
)
 
20,900

Net Income (Loss)
$
16,027

 
$
50,610

 
$
45,105

 
$
13,209

 
$
28,166

 
$
(22,031
)
 
$
131,086

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$
18,853

 
$

 
$

 
$
13,325

 
$

 
$
32,178

Net income (loss) attributable to common stockholders
$
16,027

 
$
31,757

 
$
45,105

 
$
13,209

 
$
14,841

 
$
(22,031
)
 
$
98,908


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loans
 
Corporate
 
Total
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
106,848

 
$
265,119

 
$
172,982

 
$
47,712

 
$
155,541

 
$
1,699

 
$
749,901

Interest expense
12,117

 
176,672

 
31,425

 
20,447

 
37,740

 

 
278,401

Net interest income (expense)
94,731

 
88,447

 
141,557

 
27,265

 
117,801

 
1,699

 
471,500

Impairment

 

 
7,838

 
7,309

 
34,536

 

 
49,683

Other income (loss)
(14,234
)
 
9,103

 
(59,472
)
 
22,295

 
81,193

 
15

 
38,900

Operating expenses
1,066

 
3,076

 
1,307

 
11,194

 
26,194

 
59,034

 
101,871

Income (Loss) Before Income Taxes
79,431

 
94,474

 
72,940

 
31,057

 
138,264

 
(57,320
)
 
358,846

Income tax expense (benefit)

 
13,743

 

 
4,377

 
75

 

 
18,195

Net Income (Loss)
$
79,431

 
$
80,731

 
$
72,940

 
$
26,680

 
$
138,189

 
$
(57,320
)
 
$
340,651

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$
33,400

 
$

 
$

 
$
27,955

 
$

 
$
61,355

Net income (loss) attributable to common stockholders
$
79,431

 
$
47,331

 
$
72,940

 
$
26,680

 
$
110,234

 
$
(57,320
)
 
$
279,296


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loans
 
Corporate
 
Total
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
1,599,956

 
$
6,294,697

 
$
4,739,914

 
$
765,940

 
$
1,821,979

 
$

 
$
15,222,486

Cash and cash equivalents
5,377

 
134,000

 
1,305

 
3,736

 
15,022

 
229,234

 
388,674

Restricted cash
2,406

 
90,899

 

 

 
59,822

 

 
153,127

Other assets
2,557

 
181,521

 
1,578,722

 
108,359

 
48,533

 
20,403

 
1,940,095

Total assets
$
1,610,296

 
$
6,701,117

 
$
6,319,941

 
$
878,035

 
$
1,945,356

 
$
249,637

 
$
17,704,382

Debt
$
268,290

 
$
6,210,358

 
$
3,924,111

 
$
653,197

 
$
1,707,197

 
$

 
$
12,763,153

Other liabilities
1,962

 
28,616

 
1,326,013

 
20,608

 
5,519

 
141,000

 
1,523,718

Total liabilities
270,252

 
6,238,974

 
5,250,124

 
673,805

 
1,712,716

 
141,000

 
14,286,871

Total equity
1,340,044

 
462,143

 
1,069,817

 
204,230

 
232,640

 
108,637

 
3,417,511

Noncontrolling interests in equity of consolidated subsidiaries

 
182,094

 

 

 
107,067

 

 
289,161

Total New Residential stockholders’ equity
$
1,340,044

 
$
280,049

 
$
1,069,817

 
$
204,230

 
$
125,573

 
$
108,637

 
$
3,128,350

Investments in equity method investees
$
195,904

 
$

 
$

 
$

 
$

 
$

 
$
195,904

 

Servicing Related Assets

Residential Securities and Loans







Excess MSRs

Servicer Advances

Real Estate Securities

Real Estate Loans

Consumer Loans

Corporate

Total
Three Months Ended September 30, 2015













Interest income
$
38,477


$
105,135


$
28,984


$
8,888


$


$
857


$
182,341

Interest expense
2,936


64,291


5,150


4,651


530




77,558

Net interest income (expense)
35,541


40,844


23,834


4,237


(530
)

857


104,783

Impairment




1,574


(3,341
)





(1,767
)
Other income (loss)
10,227


(12,554
)

(28,354
)

(1,530
)

14,386




(17,825
)
Operating expenses
168


10,341


766


2,845


66


18,716


32,902

Income (Loss) Before Income Taxes
45,600

 
17,949

 
(6,860
)
 
3,203

 
13,790

 
(17,859
)

55,823

Income tax expense (benefit)

 
(4,852
)
 

 
(1,405
)
 
325

 


(5,932
)
Net Income (Loss)
$
45,600

 
$
22,801

 
$
(6,860
)
 
$
4,608

 
$
13,465

 
$
(17,859
)

$
61,755

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$
7,193

 
$

 
$

 
$

 
$


$
7,193

Net income (loss) attributable to common stockholders
$
45,600

 
$
15,608

 
$
(6,860
)
 
$
4,608

 
$
13,465

 
$
(17,859
)

$
54,562


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loans
 
Corporate
 
Total
Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
87,874

 
$
256,087

 
$
66,699

 
$
32,408

 
$
1

 
$
1,822

 
$
444,891

Interest expense
8,681

 
151,377

 
12,171

 
15,929

 
1,054

 
4,196

 
193,408

Net interest income (expense)
79,193

 
104,710

 
54,528

 
16,479

 
(1,053
)
 
(2,374
)
 
251,483

Impairment

 

 
3,294

 
2,408

 

 

 
5,702

Other income (loss)
18,415

 
835

 
(37,655
)
 
20,063

 
33,342

 
(2,880
)
 
32,120

Operating expenses
517

 
12,604

 
769

 
14,557

 
177

 
61,500

 
90,124

Income (Loss) Before Income Taxes
97,091

 
92,941

 
12,810

 
19,577

 
32,112

 
(66,754
)
 
187,777

Income tax expense (benefit)

 
7,565

 

 
(2,942
)
 
324

 

 
4,947

Net Income (Loss)
$
97,091

 
$
85,376

 
$
12,810

 
$
22,519

 
$
31,788

 
$
(66,754
)
 
$
182,830

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$
22,332

 
$

 
$

 
$

 
$
(5,158
)
 
$
17,174

Net income (loss) attributable to common stockholders
$
97,091

 
$
63,044

 
$
12,810

 
$
22,519

 
$
31,788

 
$
(61,596
)
 
$
165,656