XML 51 R7.htm IDEA: XBRL DOCUMENT v2.4.1.9
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Operating activities    
Net income (loss) $ (34,535)us-gaap_NetIncomeLoss $ 16,798us-gaap_NetIncomeLoss
Adjustments to reconcile net income to net cash provided by operating activities:    
Net amortization of premium related to mortgage-backed securities 27,116us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments 22,091us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments
Reclassification of deferred swap loss 13,438us-gaap_AmortizationOfDeferredHedgeGains 24,684us-gaap_AmortizationOfDeferredHedgeGains
Amortization related to interest rate swap agreements 29us-gaap_OtherAmortizationOfDeferredCharges 69us-gaap_OtherAmortizationOfDeferredCharges
Share-based compensation expense 1,045us-gaap_ShareBasedCompensation 860us-gaap_ShareBasedCompensation
Net gain on sale of mortgage-backed securities (16,453)us-gaap_GainLossOnSalesOfMortgageBackedSecuritiesMBS (7,436)us-gaap_GainLossOnSalesOfMortgageBackedSecuritiesMBS
Gain on mortgage loans held for investment (244)us-gaap_GainLossOnSaleOfMortgageLoans  
Net loss on derivative instruments 102,785us-gaap_DerivativeGainLossOnDerivativeNet 41,615us-gaap_DerivativeGainLossOnDerivativeNet
Changes in operating assets and liabilities:    
Decrease in accrued interest receivable 2,654us-gaap_IncreaseDecreaseInAccruedInterestReceivableNet 1,527us-gaap_IncreaseDecreaseInAccruedInterestReceivableNet
Increase in other assets (669)us-gaap_IncreaseDecreaseInOtherOperatingAssets (2)us-gaap_IncreaseDecreaseInOtherOperatingAssets
Decrease in accrued interest payable (3,956)us-gaap_IncreaseDecreaseInInterestPayableNet (4,804)us-gaap_IncreaseDecreaseInInterestPayableNet
Increase in accounts payable and other liabilities 8,976us-gaap_IncreaseDecreaseInAccountsPayableAndOtherOperatingLiabilities 4,052us-gaap_IncreaseDecreaseInAccountsPayableAndOtherOperatingLiabilities
Net cash provided by operating activities 100,186us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations 99,454us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
Investing activities    
Purchases of mortgage-backed securities (783,566)us-gaap_PaymentsToAcquireMortgageBackedSecuritiesMBSCategorizedAsAvailableForSale (948,925)us-gaap_PaymentsToAcquireMortgageBackedSecuritiesMBSCategorizedAsAvailableForSale
Principal repayments on mortgage-backed securities 877,143us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities 768,532us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
Sales of mortgage-backed securities 628,123us-gaap_ProceedsFromSaleOfMortgageBackedSecuritiesMBSCategorizedAsAvailableForSale 960,291us-gaap_ProceedsFromSaleOfMortgageBackedSecuritiesMBSCategorizedAsAvailableForSale
Purchases of mortgage loans (95,769)us-gaap_PaymentsToAcquireLoansHeldForInvestment  
Principal repayments on mortgage loans 4,172us-gaap_ProceedsFromPrincipalRepaymentsOnLoansAndLeasesHeldForInvestment  
Net payments on derivative instruments (25,050)us-gaap_PaymentsForDerivativeInstrumentInvestingActivities (26,462)us-gaap_PaymentsForDerivativeInstrumentInvestingActivities
Purchase of equity investment   (6,000)us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesEquity
Net cash provided by investing activities 605,053us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations 747,436us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
Financing activities    
Repurchase of common stock   (1,912)us-gaap_ProceedsFromPaymentsForOtherFinancingActivities
Cash dividends paid (53,868)us-gaap_PaymentsOfDividends (53,782)us-gaap_PaymentsOfDividends
Proceeds from repurchase agreements 42,920,560hts_ProceedsFromSecuritiesSoldUnderAgreementsToRepurchase 44,262,079hts_ProceedsFromSecuritiesSoldUnderAgreementsToRepurchase
Principal repayments on repurchase agreements (43,571,853)hts_PaymentsForSecuritiesSoldUnderAgreementsToRepurchase (45,208,305)hts_PaymentsForSecuritiesSoldUnderAgreementsToRepurchase
Proceeds from dollar roll financing   241,121us-gaap_ProceedsFromShortTermDebt
Repayments on dollar roll financing   (592,947)us-gaap_ProceedsFromRepaymentsOfShortTermDebt
Net cash used in financing activities (705,161)us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations (1,353,746)us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
Net increase (decrease) in cash and cash equivalents 78us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (506,856)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and cash equivalents, beginning of period 627,595us-gaap_CashCashEquivalentsAndShortTermInvestments 988,705us-gaap_CashCashEquivalentsAndShortTermInvestments
Cash and cash equivalents, end of period 627,673us-gaap_CashCashEquivalentsAndShortTermInvestments 481,849us-gaap_CashCashEquivalentsAndShortTermInvestments
Supplemental disclosure of cash flow information    
Cash paid for interest 39,226us-gaap_InterestPaid 47,915us-gaap_InterestPaid
Supplemental schedule of non-cash investing and financing activities    
Obligation to brokers for purchase of unsettled mortgage-backed securities 103,995hts_ObligationToBrokersIncurredForPurchaseOfMortgageBackedSecurities 157,387hts_ObligationToBrokersIncurredForPurchaseOfMortgageBackedSecurities
Receivable for securities sold 13,423us-gaap_OtherSignificantNoncashTransactionValueOfConsiderationReceived1  
Dividends accrued not yet paid 53,023us-gaap_DividendsPayableCurrentAndNoncurrent  
Redeemable Preferred Stock    
Supplemental schedule of non-cash investing and financing activities    
Dividends accrued not yet paid 4,628us-gaap_DividendsPayableCurrentAndNoncurrent
/ us-gaap_StatementClassOfStockAxis
= us-gaap_RedeemablePreferredStockMember
4,627us-gaap_DividendsPayableCurrentAndNoncurrent
/ us-gaap_StatementClassOfStockAxis
= us-gaap_RedeemablePreferredStockMember
Common Stock    
Supplemental schedule of non-cash investing and financing activities    
Dividends accrued not yet paid $ 48,396us-gaap_DividendsPayableCurrentAndNoncurrent
/ us-gaap_MajorTypesOfDebtAndEquitySecuritiesAxis
= us-gaap_CommonStockMember
$ 48,258us-gaap_DividendsPayableCurrentAndNoncurrent
/ us-gaap_MajorTypesOfDebtAndEquitySecuritiesAxis
= us-gaap_CommonStockMember