Segment Reporting

3 Months Ended

Jun. 30, 2011

Segment Reporting

Note 20. Segment Reporting

We operate in two reportable segments. We have an internal information system that produces performance and asset data for our two segments along service lines.

The Balance Sheet Investment segment includes our consolidated portfolio of interest earning assets and the financing thereof. The Investment Management segment includes the investment management activities of our wholly-owned investment management subsidiary, CT Investment Management Co., LLC, or CTIMCO, and its subsidiaries, as well as our co-investments in investment management vehicles. CTIMCO is a taxable REIT subsidiary and serves as the investment manager of Capital Trust, Inc., all of our investment management vehicles and CT CDOs, and serves as senior servicer and special servicer for certain of our investments and for third parties.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the six months ended, and as of, June 30, 2011 (in thousands):

	Balance Sheet			Investment			Inter-Segment
	Investment			Management			Activities			Total
Income from loans and other investments:
Interest and related income		$69,545			$—			$—			$69,545
Less: Interest and related expenses		58,543			—			—			58,543
Income from loans and other investments, net		11,002			—			—			11,002
Other revenues:
Management fees from affiliates		—			3,800			(626	)		3,174
Servicing fees		—			1,181			(433	)		748
Total other revenues		—			4,981			(1,059	)		3,922
Other expenses:
General and administrative		3,428			12,126			(626	)		14,928
Servicing fee expense		433			—			(433	)		—
Total other expenses		3,861			12,126			(1,059	)		14,928
Total other-than-temporary impairments of securities		(4,933	)		—			—			(4,933	)
Portion of other-than-temporary impairments of securities recognized in other comprehensive income		(3,271	)		—			—			(3,271	)
Net impairments recognized in earnings		(8,204	)		—			—			(8,204	)
Recovery of provision for loan losses		17,249			—			—			17,249
Valuation allowance on loans held-for-sale		(224	)		—			—			(224	)
Gain on extinguishment of debt		250,976			—			—			250,976
Income from equity investments		—			1,797			—			1,797
Income (loss) before income taxes		266,938			(5,348	)		—			261,590
Income tax provision (benefit)		2,332			(882	)		—			1,450
Net income (loss)		$264,606			($4,466	)		$—			$260,140
Less: Net loss attributable to noncontrolling interests		—			—			—			(7,400	)
Net income (loss) attributable to Capital Trust, Inc.		$264,606			($4,466	)		$—			$252,740
Total assets		$2,360,192			$9,219			($4,011	)		$2,365,400

All revenues were generated from external sources within the United States. The Investment Management segment earned fees of $626,000 for management of the Balance Sheet Investment segment and $433,000 for serving as collateral manager of the four CT CDOs consolidated under our Balance Sheet Investment segment.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the six months ended, and as of, June 30, 2010 (in thousands):

	Balance Sheet			Investment		Inter-Segment
	Investment			Management		Activities			Total
Income from loans and other investments:
Interest and related income		$79,502			$1		$—			$79,503
Less: Interest and related expenses		62,905			—		—			62,905
Income from loans and other investments, net		16,597			1		—			16,598
Other revenues:
Management fees from affiliates		—			4,385		(445	)		3,940
Servicing fees		—			3,285		(548	)		2,737
Total other revenues		—			7,670		(993	)		6,677
Other expenses:
General and administrative		3,365			6,331		(445	)		9,251
Servicing fee expense		548			—		(548	)		—
Total other expenses		3,913			6,331		(993	)		9,251
Total other-than-temporary impairments of securities		(39,835	)		—		—			(39,835	)
Portion of other-than-temporary impairments of securities recognized in other comprehensive income		18,015			—		—			18,015
Net impairments recognized in earnings		(21,820	)		—		—			(21,820	)
Provision for loan losses		(54,227	)		—		—			(54,227	)
Gain on extinguishment of debt		463			—		—			463
Income from equity investments		—			1,302		—			1,302
(Loss) income before income taxes		(62,900	)		2,642		—			(60,258	)
Income tax provision		14			279		—			293
Net (loss) income		($62,914	)		$2,363		$—			($60,551	)
Total assets		$4,491,259			$13,830		($2,206	)		$4,502,883

All revenues were generated from external sources within the United States. The Investment Management segment earned fees of $445,000 for management of the Balance Sheet Investment segment and $548,000 for serving as collateral manager of the four CT CDOs consolidated under our Balance Sheet Investment segment.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the three months ended, and as of, June 30, 2011 (in thousands):

	Balance Sheet			Investment			Inter-Segment
	Investment			Management			Activities			Total
Income from loans and other investments:
Interest and related income		$32,554			$—			$—			$32,554
Less: Interest and related expenses		32,296			—			—			32,296
Income from loans and other investments, net		258			—			—			258
Other revenues:
Management fees from affiliates		—			1,786			(191	)		1,595
Servicing fees		—			649			(211	)		438
Total other revenues		—			2,435			(402	)		2,033
Other expenses:
General and administrative		1,496			3,344			(191	)		4,649
Servicing fee expense		211			—			(211	)		—
Total other expenses		1,707			3,344			(402	)		4,649
Recovery of provision for loan losses		8,088			—			—			8,088
Valuation allowance on loans held-for-sale		(224	)		—			—			(224	)
Gain on extinguishment of debt		937			—			—			937
Income from equity investments		—			842			—			842
Income (loss) before income taxes		7,352			(67	)		—			7,285
Income tax provision (benefit)		2,000			(939	)		—			1,061
Net income		$5,352			$872			$—			$6,224
Less: Net loss attributable to noncontrolling     interests		(8,069	)		—			—			(8,069	)
Net (loss) income attributable to     Capital Trust, Inc.		($2,717	)		$872			$—			($1,845	)
Total assets		$2,360,192			$9,219			($4,011	)		$2,365,400

All revenues were generated from external sources within the United States. The Investment Management segment earned fees of $191,000 for management of the Balance Sheet Investment segment and $211,000 for serving as collateral manager of the four CT CDOs consolidated under our Balance Sheet Investment segment.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the three months ended, and as of, June 30, 2010 (in thousands):

	Balance Sheet			Investment		Inter-Segment
	Investment			Management		Activities			Total
Income from loans and other investments:
Interest and related income		$39,524			$1		$—			$39,525
Less: Interest and related expenses		31,653			—		—			31,653
Income from loans and other investments, net		7,871			1		—			7,872
Other revenues:
Management fees from affiliates		—			885		39			924
Servicing fees		—			1,529		(303	)		1,226
Total other revenues		—			2,414		(264	)		2,150
Other expenses:
General and administrative		1,508			2,962		39			4,509
Servicing fee expense		303			—		(303	)		—
Total other expenses		1,811			2,962		(264	)		4,509
Total other-than-temporary impairments of securities		(3,848	)		—		—			(3,848	)
Portion of other-than-temporary impairments of securities recognized in other comprehensive income		1,852			—		—			1,852
Net impairments recognized in earnings		(1,996	)		—		—			(1,996	)
Provision for loan losses		(2,010	)		—		—			(2,010	)
Gain on extinguishment of debt		463			—		—			463
Income from equity investments		—			932		—			932
Income before income taxes		2,517			385		—			2,902
Income tax provision		—			—		—			—
Net income		$2,517			$385		$—			$2,902
Total assets		$4,491,259			$13,380		($2,206	)		$4,502,883

All revenues were generated from external sources within the United States. The Investment Management segment earned fees of $39,000 for management of the Balance Sheet Investment segment and $303,000 for serving as collateral manager of the four CT CDOs consolidated under our Balance Sheet Investment segment.