SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

New Residential’s portfolio consists of the following segments: (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities and Loans, (v) Consumer Loans and (vi) Corporate, organized based on differences in services and products. The corporate segment consists primarily of general and administrative expenses, management fees and incentive compensation related to the Management Agreement, corporate cash and related interest income.

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 and Origination																		Residential Securities and Loans
	Origination		Servicing		MSR Related Investments		Elimination^(A)		Total Servicing and Origination		Real Estate Securities		Residential Mortgage Loans		Consumer Loans		Corporate		Total
Three Months Ended June 30, 2020
Interest income	$	8,963	$	1,115	$	108,386	$	—	$	118,464	$	33,663	$	47,284	$	32,787	$	—	$	232,198
Servicing revenue, net	(1,998)		96,885		(123,620)		(61,726)		(90,459)		—		—		—		—		(90,459)
Gain on originated mortgage loans, held-for-sale, net	281,937		343		33,152		(3,561)		311,871		—		(1,849)		—		—		310,022
Total revenue	288,902		98,343		17,918		(65,287)		339,876		33,663		45,435		32,787		—		451,761
Operating expenses	108,129		74,018		213,774		(61,726)		334,195		18,023		36,749		9,918		37,651		436,536
Other income (loss)	390		—		(90,665)		—		(90,275)		47,837		36,676		29,984		381		24,603
Impairment	—		—		(91)		—		(91)		(25,134)		3,515		—		—		(21,710)
Income (loss) before income taxes	181,163		24,325		(286,430)		(3,561)		(84,503)		88,611		41,847		52,853		(37,270)		61,538
Income tax expense (benefit)	20,083		1,224		(6,832)		—		14,475		—		2,918		16		—		17,409
Net income (loss)	$	161,080	$	23,101	$	(279,598)	$	(3,561)	$	(98,978)	$	88,611	$	38,929	$	52,837	$	(37,270)	$	44,129
Noncontrolling interests in income (loss) of consolidated subsidiaries	$	4,419	$	—	$	8,591	$	—	$	13,010	$	—	$	—	$	25,630	$	—	$	38,640
Dividends on preferred stock	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	14,357	$	14,357
Net income (loss) attributable to common stockholders	$	156,661	$	23,101	$	(288,189)	$	(3,561)	$	(111,988)	$	88,611	$	38,929	$	27,207	$	(51,627)	$	(8,868)


	Servicing and Origination																		Residential Securities and Loans
	Origination		Servicing		MSR Related Investments		Elimination^(A)		Total Servicing and Origination		Real Estate Securities		Residential Mortgage Loans		Consumer Loans		Corporate		Total
Six Months Ended June 30, 2020
Interest income	$	25,698	$	8,602	$	207,739	$	—	$	242,039	$	217,668	$	107,205	$	67,659	$	—	$	634,571
Servicing revenue, net	(3,076)		183,627		(474,207)		(85,918)		(379,574)		—		—		—		—		(379,574)
Gain on originated mortgage loans, held-for-sale, net	440,152		602		55,240		(12,936)		483,058		—		6,662		—		—		489,720
Total revenue	462,774		192,831		(211,228)		(98,854)		345,523		217,668		113,867		67,659		—		744,717
Operating expenses	221,768		138,566		379,629		(85,918)		654,045		132,886		84,278		20,468		64,632		956,309
Other income (loss)	374		499		(247,598)		—		(246,725)		(918,202)		(155,595)		(10,767)		(46,769)		(1,378,058)
Impairment	—		—		(91)		—		(91)		19,015		104,011		—		—		122,935
Income (loss) before income taxes	241,380		54,764		(838,364)		(12,936)		(555,156)		(852,435)		(230,017)		36,424		(111,401)		(1,712,585)
Income tax expense (benefit)	32,041		7,269		(116,617)		—		(77,307)		—		(72,283)		131		—		(149,459)
Net income (loss)	$	209,339	$	47,495	$	(721,747)	$	(12,936)	$	(477,849)	$	(852,435)	$	(157,734)	$	36,293	$	(111,401)	$	(1,563,126)
Noncontrolling interests in income (loss) of consolidated subsidiaries	$	5,702	$	—	$	(2,656)	$	—	$	3,046	$	—	$	—	$	19,432	$	—	$	22,478
Dividends on preferred stock	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	25,579	$	25,579
Net income (loss) attributable to common stockholders	$	203,637	$	47,495	$	(719,091)	$	(12,936)	$	(480,895)	$	(852,435)	$	(157,734)	$	16,861	$	(136,980)	$	(1,611,183)


	Servicing and Origination																		Residential Securities and Loans
	Origination		Servicing		MSR Related Investments		Elimination^(A)		Total Servicing and Origination		Real Estate Securities		Residential Mortgage Loans		Consumer Loans		Corporate		Total
June 30, 2020
Investments	$	1,750,568	$	—	$	6,039,020	$	—	$	7,789,588	$	6,144,236	$	2,614,314	$	766,462	$	—	$	17,314,600
Cash and cash equivalents	159,242		83,066		362,659		—		604,967		111,571		19,210		7,477		269,983		1,013,208
Restricted cash	3,224		5,209		87,199		—		95,632		11,259		—		32,041		—		138,932
Other assets	231,088		197,243		3,166,414		—		3,594,745		217,354		1,356,432		60,095		27,315		5,255,941
Goodwill	11,836		12,540		5,092		—		29,468		—		—		—		—		29,468
Total assets	$	2,155,958	$	298,058	$	9,660,384	$	—	$	12,114,400	$	6,484,420	$	3,989,956	$	866,075	$	297,298	$	23,752,149
Debt	$	1,607,829	$	6,669	$	6,383,566	$	—	$	7,998,064	$	5,314,581	$	2,015,476	$	722,839	$	533,383	$	16,584,343
Other liabilities	201,530		55,774		209,335		—		466,639		119,506		1,119,831		3,916		68,942		1,778,834
Total liabilities	1,809,359		62,443		6,592,901		—		8,464,703		5,434,087		3,135,307		726,755		602,325		18,363,177
Total equity	346,599		235,615		3,067,483		—		3,649,697		1,050,333		854,649		139,320		(305,027)		5,388,972
Noncontrolling interests in equity of consolidated subsidiaries	15,186		—		40,333		—		55,519		—		—		41,162		—		96,681
Total New Residential stockholders’ equity	$	331,413	$	235,615	$	3,027,150	$	—	$	3,594,178	$	1,050,333	$	854,649	$	98,158	$	(305,027)	$	5,292,291
Investments in equity method investees	$	—	$	—	$	147,017	$	—	$	147,017	$	—	$	—	$	—	$	—	$	147,017


	Servicing and Origination																		Residential Securities and Loans
	Origination		Servicing		MSR Related Investments		Elimination^(A)		Total Servicing and Origination		Real Estate Securities		Residential Mortgage Loans		Consumer Loans		Corporate		Total
Three Months Ended June 30, 2019
Interest income	$	9,280	$	8,151	$	129,985	$	—	$	147,416	$	168,489	$	56,303	$	43,839	$	—	$	416,047
Servicing revenue, net	(397)		48,563		(112,925)		(20,778)		(85,537)		—		—		—		—		(85,537)
Gain on sale of originated mortgage loans, net	73,943		244		12,105		(10,218)		76,074		—		24,944		—		—		101,018
Total revenue	82,826		56,958		29,165		(30,996)		137,953		168,489		81,247		43,839		—		431,528
Operating expenses	64,404		40,632		149,959		(20,778)		234,217		107,765		48,585		15,834		23,466		429,867
Other income (loss)	(102)		—		(67,335)		—		(67,437)		(37,446)		88,148		(12,204)		2,992		(25,947)
Impairment	—		—		—		—		—		8,859		5,800		7,652		—		22,311
Income (loss) before income taxes	18,320		16,326		(188,129)		(10,218)		(163,701)		14,419		115,010		8,149		(20,474)		(46,597)
Income tax expense (benefit)	10,810		11,669		(76,723)		—		(54,244)		—		32,488		179		—		(21,577)
Net income (loss)	$	7,510	$	4,657	$	(111,406)	$	(10,218)	$	(109,457)	$	14,419	$	82,522	$	7,970	$	(20,474)	$	(25,020)
Noncontrolling interests in income (loss) of consolidated subsidiaries	$	1,543	$	—	$	331	$	—	$	1,874	$	—	$	—	$	5,049	$	—	$	6,923
Dividends on Preferred Stock	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Net income (loss) attributable to common stockholders	$	5,967	$	4,657	$	(111,737)	$	(10,218)	$	(111,331)	$	14,419	$	82,522	$	2,921	$	(20,474)	$	(31,943)


	Servicing and Origination																		Residential Securities and Loans
	Origination		Servicing		MSR Related Investments		Elimination^(A)		Total Servicing and Origination		Real Estate Securities		Residential Mortgage Loans		Consumer Loans		Corporate		Total
Six Months Ended June 30, 2019
Interest income	$	14,864	$	14,334	$	250,018	$	—	$	279,216	$	372,962	$	114,492	$	88,244	$	—	$	854,914
Servicing revenue, net	(667)		92,084		15,812		(26,913)		80,316		—		—		—		—		80,316
Gain on sale of originated mortgage loans, net	124,755		333		21,615		(19,303)		127,400		—		40,788		—		—		168,188
Total revenue	138,952		106,751		287,445		(46,216)		486,932		372,962		155,280		88,244		—		1,103,418
Operating expenses	115,925		76,952		261,581		(26,913)		427,545		210,254		93,756		32,456		59,075		823,086
Other income (loss)	957		—		(89,200)		—		(88,243)		(84,404)		84,703		(7,673)		5,704		(89,913)
Impairment	—		—		—		—		—		16,375		(4)		18,736		—		35,107
Income (loss) before income taxes	23,984		29,799		(63,336)		(19,303)		(28,856)		61,929		146,231		29,379		(53,371)		155,312
Income tax expense (benefit)	12,359		15,355		(42,584)		—		(14,870)		—		39,032		258		—		24,420
Net income (loss)	$	11,625	$	14,444	$	(20,752)	$	(19,303)	$	(13,986)	$	61,929	$	107,199	$	29,121	$	(53,371)	$	130,892
Noncontrolling interests in income (loss) of consolidated subsidiaries	$	1,950	$	—	$	2,782	$	—	$	4,732	$	—	$	—	$	12,509	$	—	$	17,241
Dividends on Preferred Stock	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Net income (loss) attributable to common stockholders	$	9,675	$	14,444	$	(23,534)	$	(19,303)	$	(18,718)	$	61,929	$	107,199	$	16,612	$	(53,371)	$	113,651

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details