XML 19 R25.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Reporting
 6 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting

The Company evaluates performance based on the following financial measures for each segment ($ in thousands):

 
Real Estate
Lending
 
Net
Leasing
 
Real Estate
Investment
 
Corporate/
Other(1)
 
Company
Total
Three Months Ended June 30, 2012:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
43,244

 
$
37,928

 
$
14,756

 
$
793

 
$
96,721

Earnings from equity method investments
—

 
649

 
8,070

 
9,701

 
18,420

Income from sales of residential property
—

 
—

 
13,266

 
—

 
13,266

Operating costs
(1,512
)
 
(4,965
)
 
(22,425
)
 
(2,394
)
 
(31,296
)
Direct segment profit
$
41,732

 
$
33,612

 
$
13,667

 
$
8,100

 
$
97,111

Allocated interest expense
(35,129
)
 
(24,513
)
 
(29,347
)
 
(5,485
)
 
(94,474
)
Allocated general and administrative(3)
(3,741
)
 
(2,639
)
 
(3,126
)
 
(6,839
)
 
(16,345
)
Segment profit (loss)(4)
$
2,862

 
$
6,460

 
$
(18,806
)
 
$
(4,224
)
 
$
(13,708
)
Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
26,531

 
$
—

 
$
—

 
$
—

 
$
26,531

Impairment of assets
$
—

 
$
6,150

 
$
1,346

 
$
—

 
$
7,496

Depreciation and amortization
$
—

 
$
11,828

 
$
4,690

 
$
442

 
$
16,960

Capitalized expenditures
$
—

 
$
2,693

 
$
18,942

 
$
—

 
$
21,635

Three Months Ended June 30, 2011:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
80,848

 
$
37,641

 
$
6,687

 
$
250

 
$
125,426

Earnings from equity method investments
—

 
631

 
(5,450
)
 
23,950

 
19,131

Operating costs
935

 
(4,384
)
 
(18,002
)
 
(1,394
)
 
(22,845
)
Direct segment profit (loss)
$
81,783

 
$
33,888

 
$
(16,765
)
 
$
22,806

 
$
121,712

Allocated interest expense
(47,557
)
 
(21,713
)
 
(19,964
)
 
(6,519
)
 
(95,753
)
Allocated general and administrative(3)
(5,416
)
 
(2,589
)
 
(2,274
)
 
(11,106
)
 
(21,385
)
Segment profit (loss)(4)
$
28,810

 
$
9,586

 
$
(39,003
)
 
$
5,181

 
$
4,574

Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
10,350

 
$
—

 
$
—

 
$
—

 
$
10,350

Impairment of assets
$
—

 
$
—

 
$
2,764

 
$
—

 
$
2,764

Depreciation and amortization
$
—

 
$
12,689

 
$
1,804

 
$
518

 
$
15,011

Capitalized expenditures
$
—

 
$
2,736

 
$
8,970

 
$
—

 
$
11,706

Six Months Ended June 30, 2012:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
80,513

 
$
76,408

 
$
29,150

 
$
2,619

 
$
188,690

Earnings from equity method investments
—

 
1,295

 
14,195

 
37,716

 
53,206

Income from sales of residential property
—

 
—

 
19,999

 
—

 
19,999

Operating costs
(2,427
)
 
(8,127
)
 
(44,498
)
 
(1,934
)
 
(56,986
)
Direct segment profit
$
78,086

 
$
69,576

 
$
18,846

 
$
38,401

 
$
204,909

Allocated interest expense
(69,373
)
 
(46,077
)
 
(54,120
)
 
(10,248
)
 
(179,818
)
Allocated general and administrative(3)
(8,320
)
 
(5,653
)
 
(6,490
)
 
(14,061
)
 
(34,524
)
Segment profit (loss)(4)
$
393

 
$
17,846

 
$
(41,764
)
 
$
14,092

 
$
(9,433
)
Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
44,031

 
$
—

 
$
—

 
$
—

 
$
44,031

Impairment of assets
$
—

 
$
19,700

 
$
3,850

 
$
(550
)
 
$
23,000

Depreciation and amortization
$
—

 
$
23,948

 
$
8,440

 
$
1,087

 
$
33,475

Capitalized expenditures
$
—

 
$
2,988

 
$
29,726

 
$
—

 
$
32,714

Six Months Ended June 30, 2011:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
141,983

 
$
75,754

 
$
14,149

 
$
1,095

 
$
232,981

Earnings from equity method investments
—

 
1,269

 
(5,450
)
 
48,245

 
44,064

Operating costs
(315
)
 
(8,670
)
 
(35,789
)
 
(2,866
)
 
(47,640
)
Direct segment profit (loss)
$
141,668

 
$
68,353

 
$
(27,090
)
 
$
46,474

 
$
229,405

Allocated interest expense
(84,322
)
 
(36,731
)
 
(33,046
)
 
(10,747
)
 
(164,846
)
Allocated general and administrative(3)
(10,892
)
 
(4,946
)
 
(4,269
)
 
(21,523
)
 
(41,630
)
Segment profit (loss)(4)
$
46,454

 
$
26,676

 
$
(64,405
)
 
$
14,204

 
$
22,929

Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
21,230

 
$
—

 
$
—

 
$
—

 
$
21,230

Impairment of assets
$
—

 
$
—

 
$
3,381

 
$
873

 
$
4,254

Depreciation and amortization
$
—

 
$
25,214

 
$
3,554

 
$
1,056

 
$
29,824

Capitalized expenditures
$
—

 
$
4,902

 
$
15,966

 
$
—

 
$
20,868

As of June 30, 2012
 
 
 
 
 
 
 
 
 
Total assets
$
2,333,405

 
$
1,683,703

 
$
2,058,264

 
$
1,110,840

 
$
7,186,212

As of December 31, 2011
 
 
 
 
 
 
 
 
 
Total assets
$
2,892,240

 
$
1,837,425

 
$
1,982,420

 
$
805,752

 
$
7,517,837


Explanatory Notes:
_______________________________________________________________________________

(1)
Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not related to the other reportable segments above, including the Company's equity investment in LNR of $176.6 million and $159.8 million, as of June 30, 2012 and December 31, 2011, respectively, and the Company's share of equity in earnings from LNR of $8.7 million and $20.8 million, for the three and six months ended June 30, 2012, respectively, and $10.1 million and $24.1 million for the three and six months ended June 30, 2011. See Note 7 for further details on the Company's investment in LNR and summarized financial information of LNR.
(2)
Total revenue represents all revenue earned during the period related to the assets in each segment. Revenue from the Real Estate Lending segment primarily represents interest income, revenue from the Net Leasing segment primarily represents operating lease income and revenue from Real Estate Investment primarily represents operating revenues from REHI properties.
(3)
General and administrative excludes stock-based compensation expense of $3.4 million and $8.1 million for the three and six months ended June 30, 2012, respectively, and $4.3 million and $8.5 million for the three and six months ended June 30, 2011 respectively.
(4)
The following is a reconciliation of segment profit (loss) to income (loss) from continuing operations ($ in thousands):

 
For the Three Months
Ended June 30,
 
For the Six Months
Ended June 30,
 
2012
 
2011
 
2012
 
2011
Segment profit (loss)
$
(13,708
)
 
$
4,574

 
$
(9,433
)
 
$
22,929

Less: Provision for loan losses
(26,531
)
 
(10,350
)
 
(44,031
)
 
(21,230
)
Less: Impairment of assets
(7,496
)
 
(2,764
)
 
(23,000
)
 
(4,254
)
Less: Stock-based compensation expense
(3,447
)
 
(4,314
)
 
(8,113
)
 
(8,469
)
Less: Depreciation and amortization
(16,960
)
 
(15,011
)
 
(33,475
)
 
(29,824
)
Less: Income tax (expense) benefit
(3,477
)
 
2,675

 
(4,748
)
 
(8,377
)
Less: Income from sales of residential property
(13,266
)
 
—

 
(19,999
)
 
—

Add: Gain (loss) on early extinguishment of debt, net
(4,868
)
 
(1,047
)
 
(3,164
)
 
105,556

Income (loss) from continuing operations
$
(89,753
)
 
$
(26,237
)
 
$
(145,963
)
 
$
56,331