XML 106 R86.htm IDEA: XBRL DOCUMENT v3.4.0.3
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS (Notes)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Guarantees [Abstract]    
Guarantees [Text Block]
Note 15—Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under the Company's Senior Notes    

CIFC Corp. issued Senior Notes which are deemed publicly registered notes. As such, the Company is required to present condensed consolidating financial information for CIFC and its consolidated subsidiaries within the notes to the consolidated financial statements in accordance with the criteria established for parent companies in the SEC’s Regulation S-X, Rule 3-10(f).

Obligations under the Senior Notes are fully and unconditionally guaranteed by CIFC and named guarantors (the “Guarantor”). Under the terms of the indenture, certain consolidated entities such as consolidated CLOs, warehouses and funds ("Investment Vehicles") do not guarantee the notes. Further, the indenture provides that so long as entities representing at least 90% of the Company’s consolidated total assets (other than assets represented by Investment Vehicles) are guarantors, the Company may designate entities within its corporate structure as non-guarantor entities ("Unrestricted Entities" and together with Investment Vehicles, "Non-Guarantors").

The following condensed consolidating financial information presents the Consolidating Balance Sheets, Statement of Operations, Comprehensive Income (Loss) and Cash Flows of the Guarantor, Non-Guarantor subsidiaries (or Investment Vehicles) and the eliminations necessary to arrive at the information for the Company on a consolidated basis as of March 31, 2016 and December 31, 2015, and for each of the three months ended March 31, 2016 and 2015. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Certain immaterial balances have been reclassified in the prior year financial statements to conform to the current year presentation (Note 2). The condensed consolidating financial information below assumes that the Senior Notes were guaranteed by CIFC as of January 1, 2015. Further, all Consolidated Entities are considered Non-Guarantor subsidiaries.



Condensed Consolidating Balance Sheets (Unaudited)
March 31, 2016
 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,094

 
$
382

 
$
50,535

 
$

 
$

 
$
52,011

Restricted cash and cash equivalents

 

 
1,694

 

 

 
1,694

Investments

 

 
159,177

 

 
(81,830
)
 
77,347

Intercompany investments in subsidiaries
177,449

 
104,281

 
113,497

 

 
(395,227
)
 

Receivables
154

 
3,546

 
7,909

 

 
(2,684
)
 
8,925

Prepaid and other assets

 
1,172

 
1,645

 

 

 
2,817

Deferred tax asset, net

 
43,110

 

 

 

 
43,110

Equipment and improvements, net

 

 
4,562

 

 

 
4,562

Intangible assets, net

 
5,393

 

 

 

 
5,393

Goodwill

 
66,549

 
9,451

 

 

 
76,000

Subtotal
178,697

 
224,433

 
348,470

 

 
(479,741
)
 
271,859

Assets of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Restricted cash and cash equivalents

 

 

 
80,592

 

 
80,592

Due from brokers

 

 

 
24,293

 

 
24,293

Investments

 

 

 
1,346,963

 

 
1,346,963

Receivables

 

 

 
4,185

 

 
4,185

Prepaid and other assets

 

 

 
187

 

 
187

Total assets of Consolidated Entities

 

 

 
1,456,220

 

 
1,456,220

TOTAL ASSETS
$
178,697

 
$
224,433

 
$
348,470

 
$
1,456,220

 
$
(479,741
)
 
$
1,728,079

LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Distributions payable
$
8,670

 
$

 
$

 
$

 
$

 
$
8,670

Accrued and other liabilities
1,322

 
4,172

 
9,126

 

 
(2,169
)
 
12,451

Contingent liabilities

 

 
8,142

 

 

 
8,142

Long-term debt

 
156,237

 

 

 

 
156,237

   Subtotal
9,992

 
160,409

 
17,268

 

 
(2,169
)
 
185,500

Non-Recourse Liabilities of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Due to brokers

 

 

 
49,350

 

 
49,350

Accrued and other liabilities

 

 

 
623

 
(394
)
 
229

Interest payable

 

 

 
4,595

 
(121
)
 
4,474

Long-term debt

 

 

 
1,360,255

 
(48,197
)
 
1,312,058

Total Non-Recourse Liabilities of Consolidated Entities

 

 

 
1,414,823

 
(48,712
)
 
1,366,111

TOTAL LIABILITIES
9,992

 
160,409

 
17,268

 
1,414,823

 
(50,881
)
 
1,551,611

EQUITY (Note 10)
 
 
 
 
 
 
 
 
 
 
 
Common shares
25

 
1

 

 

 
(1
)
 
25

Intercompany Preferred Units (1)

 

 
85,000

 

 
(85,000
)
 

Treasury shares
(435
)
 

 

 

 

 
(435
)
Additional paid-in capital
994,771

 
885,377

 
662,399

 

 
(1,547,781
)
 
994,766

Retained earnings (deficit)
(825,656
)
 
(821,354
)
 
(416,197
)
 

 
1,237,551

 
(825,656
)
TOTAL CIFC LLC SHAREHOLDERS’ EQUITY
168,705

 
64,024

 
331,202

 

 
(395,231
)
 
168,700

Consolidated Fund Equity/Noncontrolling interests (Note 2)

 

 

 
41,397

 
(33,629
)
 
7,768

TOTAL EQUITY
168,705

 
64,024

 
331,202

 
41,397

 
(428,860
)
 
176,468

TOTAL LIABILITIES AND EQUITY
$
178,697

 
$
224,433

 
$
348,470

 
$
1,456,220

 
$
(479,741
)
 
$
1,728,079


Explanatory Note:
_________________________________
(1)
CIFC Corp. holds 85.0 million of intercompany non-voting series A preferred units that bear an annual rate of 3.5%.

Consolidating Balance Sheets (Unaudited)
December 31, 2015
 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
1,392

 
$
56,576

 
$

 
$

 
$
57,968

Restricted cash and cash equivalents

 

 
1,694

 

 

 
1,694

Investments

 

 
152,455

 

 
(81,759
)
 
70,696

Intercompany investments in subsidiaries
170,174

 
120,896

 
61,004

 

 
(352,074
)
 

Receivables
785

 
295

 
27,242

 

 
(21,247
)
 
7,075

Prepaid and other assets

 
1,621

 
352

 

 

 
1,973

Deferred tax asset, net

 
44,425

 

 

 

 
44,425

Equipment and improvements, net

 

 
4,866

 

 

 
4,866

Intangible assets, net

 
6,232

 
625

 

 

 
6,857

Goodwill

 
66,549

 
9,451

 

 

 
76,000

Subtotal
170,959

 
241,410

 
314,265

 

 
(455,080
)
 
271,554

Assets of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Restricted cash and cash equivalents

 

 

 
94,018

 

 
94,018

Due from brokers

 

 

 
25,910

 

 
25,910

Investments

 

 

 
1,351,403

 

 
1,351,403

Receivables

 

 

 
4,109

 

 
4,109

Prepaid and other assets

 

 

 
209

 

 
209

Total assets of Consolidated Entities

 

 

 
1,475,649

 

 
1,475,649

TOTAL ASSETS
$
170,959

 
$
241,410

 
$
314,265

 
$
1,475,649

 
$
(455,080
)
 
$
1,747,203

LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Due to brokers
$

 
$
61

 
$

 
$

 
$

 
$
61

Accrued and other liabilities
50

 
24,185

 
14,808

 

 
(20,646
)
 
18,397

Contingent liabilities

 

 
8,338

 

 

 
8,338

Long-term debt

 
156,161

 

 

 

 
156,161

   Subtotal
50

 
180,407

 
23,146

 

 
(20,646
)
 
182,957

Non-Recourse Liabilities of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Due to brokers

 

 

 
71,603

 

 
71,603

Accrued and other liabilities

 

 

 
631

 
(438
)
 
193

Interest payable

 

 

 
5,257

 
(167
)
 
5,090

Long-term debt

 

 

 
1,357,095

 
(48,537
)
 
1,308,558

Total Non-Recourse Liabilities of Consolidated Entities

 

 

 
1,434,586

 
(49,142
)
 
1,385,444

TOTAL LIABILITIES
50

 
180,407

 
23,146

 
1,434,586

 
(69,788
)
 
1,568,401

EQUITY (Note 10)
 
 
 
 
 
 
 
 
 
 
 
Common shares
25

 
25

 

 

 
(25
)
 
25

Intercompany Preferred Units (1)

 

 
85,000

 

 
(85,000
)
 

Additional paid-in capital
992,425

 
992,419

 
528,946

 

 
(1,521,371
)
 
992,419

Retained earnings (deficit)
(821,541
)
 
(931,441
)
 
(322,827
)
 

 
1,254,318

 
(821,491
)
TOTAL CIFC LLC SHAREHOLDERS’ EQUITY
170,909

 
61,003

 
291,119

 

 
(352,078
)
 
170,953

Consolidated Fund Equity / Noncontrolling interests (Note 2)

 

 

 
41,063

 
(33,214
)
 
7,849

TOTAL EQUITY
170,909

 
61,003

 
291,119

 
41,063

 
(385,292
)
 
178,802

TOTAL LIABILITIES AND EQUITY
$
170,959

 
$
241,410

 
$
314,265

 
$
1,475,649

 
$
(455,080
)
 
$
1,747,203


Explanatory Note:
_________________________________
(1)
CIFC Corp. holds 85.0 million of intercompany non-voting series A preferred units that bear an annual rate of 3.5%.



Consolidating Statements of Operations (Unaudited)
For The Three Months Ended March 31, 2016

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Management and incentive fees
$

 
$

 
$
21,521

 
$

 
$
(1,706
)
 
$
19,815

Interest income from investments

 
744

 
3,217

 

 
(3,028
)
 
933

Interest income - Consolidated Entities

 

 

 
18,990

 

 
18,990

Total net revenues

 
744

 
24,738

 
18,990

 
(4,734
)
 
39,738

Expenses
 
 
 
 
 
 
 
 
 
 
 
Employee compensation and benefits

 

 
9,514

 

 

 
9,514

Share-based compensation
130

 
130

 
2,121

 

 

 
2,381

Professional services
308

 
885

 
879

 

 

 
2,072

General and administrative expenses
132

 
644

 
1,741

 

 

 
2,517

Depreciation and amortization

 
839

 
457

 

 

 
1,296

Impairment of intangible assets

 

 
531

 

 

 
531

Corporate interest expense

 
1,957

 
744

 

 
(744
)
 
1,957

Expenses - Consolidated Entities

 

 

 
2,094

 
(1,706
)
 
388

Interest expense - Consolidated Entities

 

 

 
8,595

 
(175
)
 
8,420

Total expenses
570

 
4,455

 
15,987

 
10,689

 
(2,625
)
 
29,076

Other Gain (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on investments

 

 
1,677

 

 
(1,406
)
 
271

Net gain (loss) on contingent liabilities

 

 
(364
)
 

 

 
(364
)
Net gain (loss) on investments - Consolidated Entities

 

 

 
2,600

 

 
2,600

Net gain (loss) on liabilities - Consolidated Entities

 

 

 
(10,487
)
 
3,103

 
(7,384
)
Intercompany net gain (loss) on investments in subsidiaries
5,075

 
5,859

 
871

 

 
(11,805
)
 

Net other gain (loss)
5,075

 
5,859

 
2,184

 
(7,887
)
 
(10,108
)
 
(4,877
)
Income (loss) before income taxes
4,505

 
2,148

 
10,935

 
414

 
(12,217
)
 
5,785

   Income tax (expense) benefit

 
(1,278
)
 

 

 

 
(1,278
)
Net income (loss)
4,505


870


10,935


414


(12,217
)

4,507

Net (income) loss attributable to noncontrolling interests in Consolidated Entities






(414
)

412


(2
)
Net income (loss) attributable to CIFC LLC
$
4,505

 
$
870

 
$
10,935

 
$

 
$
(11,805
)
 
$
4,505
















Consolidating Statements of Operations (Unaudited)
For The Three Months Ended March 31, 2015

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Management and incentive fees
$

 
$

 
$
21,833

 
$

 
$
(219
)
 
$
21,614

Interest income from investments

 

 
2,736

 

 
(129
)
 
2,607

Interest income - Consolidated Entities

 

 
823

 
1,933

 

 
2,756

Total net revenues

 

 
25,392

 
1,933

 
(348
)
 
26,977

Expenses
 
 
 
 
 
 
 
 
 
 
 
Employee compensation and benefits

 

 
8,564

 

 

 
8,564

Share-based compensation

 
142

 
1,538

 

 

 
1,680

Professional services

 
1,078

 
848

 

 

 
1,926

General and administrative expenses

 
958

 
1,339

 

 

 
2,297

Depreciation and amortization

 
1,821

 
588

 

 

 
2,409

Impairment of intangible assets

 
281

 

 

 

 
281

Corporate interest expense

 
494

 

 

 

 
494

Expenses - Consolidated Entities

 

 
15

 
1,472

 
(219
)
 
1,268

Interest expense - Consolidated Entities

 

 
231

 
513

 

 
744

Total expenses

 
4,774

 
13,123

 
1,985

 
(219
)
 
19,663

Other Gain (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on investments

 

 
939

 

 
254

 
1,193

Net gain (loss) on contingent liabilities

 

 
(713
)
 

 

 
(713
)
Net gain (loss) on investments - Consolidated Entities

 

 
796

 
2,001

 

 
2,797

Net gain (loss) on liabilities - Consolidated Entities

 

 

 
(1,826
)
 
(434
)
 
(2,260
)
Net gain (loss) on other investments and derivatives - Consolidated Entities

 

 

 
438

 

 
438

Intercompany net gain (loss) on investments in subsidiaries

 
13,289

 

 

 
(13,289
)
 

Net other gain (loss)

 
13,289

 
1,022

 
613

 
(13,469
)
 
1,455

Income (loss) before income taxes

 
8,515

 
13,291

 
561

 
(13,598
)
 
8,769

   Income tax (expense) benefit

 
(3,087
)
 

 

 

 
(3,087
)
Net income (loss)


5,428


13,291


561


(13,598
)

5,682

Net (income) loss attributable to noncontrolling interests in Consolidated Entities






(561
)

307


(254
)
Net income (loss) attributable to CIFC LLC
$

 
$
5,428

 
$
13,291

 
$

 
$
(13,291
)
 
$
5,428











Consolidating Statement of Comprehensive Income (Loss) (Unaudited)
For The Three Months Ended March 31, 2016

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Net income (loss)
$
4,505

 
$
870

 
$
10,935

 
$
414

 
$
(12,217
)
 
$
4,507

Other comprehensive income (loss)

 

 

 

 

 

Comprehensive income (loss)
4,505

 
870

 
10,935

 
414

 
(12,217
)
 
4,507

Comprehensive (income) loss attributable to noncontrolling interests in Consolidated Entities

 

 

 
(414
)
 
412

 
(2
)
Comprehensive income (loss) attributable to CIFC LLC
$
4,505

 
$
870

 
$
10,935

 
$

 
$
(11,805
)
 
$
4,505



Consolidating Statement of Comprehensive Income (Loss) (Unaudited)
For The Three Months Ended March 31, 2015

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Net income (loss)
$

 
$
5,428

 
$
13,291

 
$
561

 
$
(13,598
)
 
$
5,682

Other comprehensive income (loss)

 

 

 

 

 

Comprehensive income (loss)

 
5,428

 
13,291

 
561

 
(13,598
)
 
5,682

Comprehensive (income) loss attributable to noncontrolling interests in Consolidated Entities

 

 

 
(561
)
 
307

 
(254
)
Comprehensive income (loss) attributable to CIFC LLC
$

 
$
5,428

 
$
13,291

 
$

 
$
(13,291
)
 
$
5,428
























Consolidating Statement of Cash Flows (Unaudited)
For The Three Months Ended March 31, 2016

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 

 
 

 
 

 
 

Net income (loss)
$
4,505

 
$
870

 
$
10,935

 
$
414

 
$
(12,217
)
 
$
4,507

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 

Amortization of debt issuance costs and other

 
76

 

 

 

 
76

Share-based compensation
130

 
130

 
2,121

 

 

 
2,381

Net (gain) loss on investments and contingent liabilities / other (gain) loss

 

 
(1,315
)
 

 
1,408

 
93

Intercompany net (gain) loss on investments in subsidiaries
(5,075
)
 
(5,859
)
 
(871
)
 

 
11,805

 

Depreciation and amortization

 
839

 
457

 

 

 
1,296

Impairment of intangible assets

 

 
531

 

 

 
531

Deferred income tax expense (benefit)

 
1,315

 

 

 

 
1,315

Excess tax benefits from share-based payment arrangements

 
230

 

 

 

 
230

Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Net (gain) loss on investments

 

 

 
(2,600
)
 

 
(2,600
)
Net (gain) loss on liabilities

 

 

 
10,487

 
(3,103
)
 
7,384

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
 
 
Receivables
631

 
(3,120
)
 
19,335

 

 
(18,696
)
 
(1,850
)
Prepaid and other assets

 
451

 
(1,299
)
 

 

 
(848
)
Due to brokers

 
(62
)
 
1

 

 

 
(61
)
Accrued and other liabilities
1,142

 
(20,015
)
 
(5,194
)
 

 
18,606

 
(5,461
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Due from brokers

 

 

 
1,616

 

 
1,616

Purchase of investments

 

 

 
(114,723
)
 

 
(114,723
)
Sales of investments

 

 

 
121,766

 

 
121,766

Receivables

 

 

 
(52
)
 

 
(52
)
Due to brokers

 

 

 
(22,253
)
 

 
(22,253
)
Accrued and other liabilities

 

 

 
(11
)
 
43

 
32

Interest payable

 

 

 
(660
)
 
44

 
(616
)
Net cash provided by (used in) operating activities
1,333

 
(25,145
)
 
24,701

 
(6,016
)
 
(2,110
)
 
(7,237
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 

Purchases of investments

 

 
(17,553
)
 

 
1,419

 
(16,134
)
Sales of investments

 

 
12,466

 

 
(2,754
)
 
9,712

Intercompany investments in subsidiaries

 
22,474

 
(2,151
)
 

 
(20,323
)
 

Purchases of equipment and improvements

 

 
(61
)
 

 

 
(61
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Change in restricted cash and cash equivalents

 

 

 
13,426

 

 
13,426

Net cash provided by (used in) investing activities

 
22,474

 
(7,299
)
 
13,426

 
(21,658
)
 
6,943

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Repurchases of common shares
(435
)
 

 

 

 

 
(435
)
Intercompany contributions

 
1,891

 
9,629

 
24

 
(11,544
)
 

Intercompany distributions

 

 
(32,073
)
 
(24
)
 
32,097

 

Proceeds from the exercise of options
241

 

 

 

 

 
241

Payments for tax from the net delivery of restricted share units
(45
)
 

 

 

 

 
(45
)
Payments on contingent liabilities

 

 
(999
)
 

 

 
(999
)
Excess tax benefits from share-based payment arrangements


 
(230
)
 

 

 

 
(230
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 

Distributions to noncontrolling interests

 

 

 
(83
)
 

 
(83
)
Proceeds from issuance of long-term debt

 

 

 
3,830

 

 
3,830

Payments made on long-term debt

 

 

 
(11,157
)
 
3,215

 
(7,942
)
Net cash provided by (used in) financing activities
(239
)
 
1,661

 
(23,443
)
 
(7,410
)
 
23,768

 
(5,663
)
Net increase (decrease) in cash and cash equivalents
1,094

 
(1,010
)
 
(6,041
)
 

 

 
(5,957
)
Cash and cash equivalents at beginning of period

 
1,392

 
56,576

 

 

 
57,968

Cash and cash equivalents at end of period
$
1,094

 
$
382

 
$
50,535

 
$

 
$

 
$
52,011




Consolidating Statement of Cash Flows (Unaudited)
For The Three Months Ended March 31, 2015
 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 

 
 

 
 

 
 

Net income (loss)
$

 
$
5,428

 
$
13,291

 
$
561

 
$
(13,598
)
 
$
5,682

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 

Amortization of debt issuance costs and other

 
22

 

 

 

 
22

Share-based compensation

 
142

 
1,538

 

 

 
1,680

Net (gain) loss on investments and contingent liabilities / other (gain) loss

 

 
(225
)
 

 
(255
)
 
(480
)
Intercompany net (gain) loss on investments in subsidiaries

 
(13,289
)
 

 

 
13,289

 

Depreciation and amortization

 
1,821

 
588

 

 

 
2,409

Impairment of intangible assets

 
281

 

 

 

 
281

Deferred income tax expense (benefit)

 
(150
)
 

 

 

 
(150
)
Excess tax benefits from share-based payment arrangements

 
(8
)
 

 

 

 
(8
)
Consolidated Entities:


 


 
 
 
 
 
 
 


Net (gain) loss on investments

 

 
(796
)
 
(2,001
)
 

 
(2,797
)
Net (gain) loss on liabilities

 

 

 
1,826

 
434

 
2,260

Net other (gain) loss

 

 

 
(438
)
 

 
(438
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
 


Due from brokers

 

 
(974
)
 

 

 
(974
)
Receivables

 
721

 
(3,163
)
 

 
2,903

 
461

Prepaid and other assets

 
486

 
(1,489
)
 

 

 
(1,003
)
Due to brokers

 

 
6,245

 

 

 
6,245

Accrued and other liabilities

 
3,480

 
(7,920
)
 

 
(2,514
)
 
(6,954
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 


Due from brokers

 

 
14,459

 
(4,111
)
 

 
10,348

Purchase of investments

 

 
(55,017
)
 
(88,697
)
 

 
(143,714
)
Sales of investments

 

 
47,462

 
21,677

 

 
69,139

Receivables

 

 
(352
)
 
(86
)
 

 
(438
)
Due to brokers

 

 
(7,882
)
 
55,950

 

 
48,068

Accrued and other liabilities

 

 
6

 
384

 
(390
)
 

Interest payable

 

 
(8
)
 
18

 

 
10

Net cash provided by (used in) operating activities

 
(1,066
)
 
5,763

 
(14,917
)
 
(131
)
 
(10,351
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 


Proceeds from the sale of management contracts

 

 

 

 

 

Purchases of investments

 

 
(78,632
)
 

 
65,439

 
(13,193
)
Sales of investments

 

 
57,449

 

 
(22,148
)
 
35,301

Intercompany investments in subsidiaries

 
(123,962
)
 

 

 
123,962

 

Intercompany distributions from subsidiaries

 
123,962

 

 

 
(123,962
)
 

Purchases of equipment and improvements

 

 
(403
)
 

 

 
(403
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 


Change in restricted cash and cash equivalents

 

 
755

 
(55,628
)
 

 
(54,873
)
Net cash provided by (used in) investing activities

 

 
(20,831
)
 
(55,628
)
 
43,291

 
(33,168
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 


Intercompany contributions

 

 
123,962

 

 
(123,962
)
 

Intercompany distributions

 

 
(123,962
)
 

 
123,962

 

Proceeds from the exercise of options

 
121

 

 

 

 
121

Payments for tax from the net delivery of restricted share units

 
(265
)
 

 

 

 
(265
)
Payments on contingent liabilities

 

 
(1,559
)
 

 

 
(1,559
)
Excess tax benefits from share-based payment arrangements


 
8

 

 

 

 
8

Consolidated Entities:
 
 
 
 
 
 
 
 
 
 


Contributions from noncontrolling interests

 

 

 
14,712

 
(2,612
)
 
12,100

Distributions to noncontrolling interests

 

 

 
(970
)
 

 
(970
)
Proceeds from issuance of long-term debt

 

 

 
73,777

 
10,323

 
84,100

Payments made on long-term debt

 

 

 
(16,974
)
 
(50,871
)
 
(67,845
)
Net cash provided by (used in) financing activities

 
(136
)
 
(1,559
)
 
70,545

 
(43,160
)
 
25,690

Net increase (decrease) in cash and cash equivalents

 
(1,202
)
 
(16,627
)
 

 

 
(17,829
)
Cash and cash equivalents at beginning of period

 
2,156

 
57,134

 

 

 
59,290

Cash and cash equivalents at end of period
$

 
$
954

 
$
40,507

 
$

 
$

 
$
41,461

Note 18—Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under the Company's Senior Notes    

The Company is required to present condensed consolidating financial information for CIFC LLC and its consolidated subsidiaries within the notes to the consolidated financial statements in accordance with the criteria established for parent companies in the SEC’s Regulation S-X, Rule 3-10(f).

During 2015, CIFC Corp. issued Senior Notes that will be exchangeable for publicly registered notes with identical terms. Obligations under the Senior Notes are fully and unconditionally guaranteed by CIFC LLC and named guarantors (the “Guarantor”). Under the terms of the indenture, certain consolidated entities such as consolidated CLOs, warehouses and funds ("Investment Vehicles") do not guarantee the notes. Further, the indenture provides that entities representing at least 90% of the Company’s consolidated total assets (other than assets represented by Investment Vehicles) are guarantors, the Company may designate entities within its corporate structure as non-guarantor entities ("Unrestricted Entities" and together with Investment Vehicles, "Non-Guarantor").

The following condensed consolidating financial information presents the Consolidating Balance Sheets, Statement of Operations, Comprehensive Income (Loss) and Cash Flows of the Guarantor, Non-Guarantor subsidiaries (or Investment Vehicles) and the eliminations necessary to arrive at the information for the Company on a consolidated basis as of December 31, 2015 and 2014, and for each year ended December 31, 2015 and 2014. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Certain immaterial balances have been reclassified in the prior year financial statements to conform to the current year presentation (Note 2). The condensed consolidating financial information below assumes that the Senior Notes were guaranteed by CIFC LLC as of January 1, 2014. Further, all Consolidated Entities are considered Non-Guarantor subsidiaries.

CIFC LLC AND ITS SUBSIDIARIES
Consolidating Balance Sheets
December 31, 2015
 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
1,392

 
$
56,576

 
$

 
$

 
$
57,968

Restricted cash and cash equivalents

 

 
1,694

 

 

 
1,694

Investments

 

 
152,455

 

 
(81,759
)
 
70,696

Intercompany investments in subsidiaries
170,174

 
35,896

 
61,004

 

 
(267,074
)
 

Intercompany investment in wholly-owned subsidiaries of CIFC LLC (Note 16)

 
85,000

 

 

 
(85,000
)
 

Receivables
785

 
295

 
27,242

 

 
(21,247
)
 
7,075

Prepaid and other assets

 
1,621

 
352

 

 

 
1,973

Deferred tax asset, net

 
44,425

 

 

 

 
44,425

Equipment and improvements, net

 

 
4,866

 

 

 
4,866

Intangible assets, net

 
6,232

 
625

 

 

 
6,857

Goodwill

 
66,549

 
9,451

 

 

 
76,000

Subtotal
170,959

 
241,410

 
314,265

 

 
(455,080
)
 
271,554

Assets of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Restricted cash and cash equivalents

 

 

 
94,018

 

 
94,018

Due from brokers

 

 

 
25,910

 

 
25,910

Investments

 

 

 
1,351,403

 

 
1,351,403

Receivables

 

 

 
4,109

 

 
4,109

Prepaid and other assets

 

 

 
209

 

 
209

Total assets of Consolidated Entities

 

 

 
1,475,649

 

 
1,475,649

TOTAL ASSETS
$
170,959

 
$
241,410

 
$
314,265

 
$
1,475,649

 
$
(455,080
)
 
$
1,747,203

LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Due to brokers
$

 
$
61

 
$

 
$

 
$

 
$
61

Accrued and other liabilities
50

 
24,185

 
14,808

 

 
(20,646
)
 
18,397

Contingent liabilities

 

 
8,338

 

 

 
8,338

Long-term debt

 
156,161

 

 

 

 
156,161

   Subtotal
50

 
180,407

 
23,146

 

 
(20,646
)
 
182,957

Non-Recourse Liabilities of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Due to brokers

 

 

 
71,603

 

 
71,603

Accrued and other liabilities

 

 

 
631

 
(438
)
 
193

Interest payable

 

 

 
5,257

 
(167
)
 
5,090

Long-term debt

 

 

 
1,357,095

 
(48,537
)
 
1,308,558

Total Non-Recourse Liabilities of Consolidated Entities

 

 

 
1,434,586

 
(49,142
)
 
1,385,444

TOTAL LIABILITIES
50

 
180,407

 
23,146

 
1,434,586

 
(69,788
)
 
1,568,401

EQUITY
 
 
 
 
 
 
 
 
 
 
 
Common shares, par value $0.001: 500,000,000 shares authorized, 25,314,756 issued and 25,314,756 outstanding as of December 31, 2015
25

 
25

 

 

 
(25
)
 
25

Intercompany Preferred Units (Note 16)

 

 
85,000

 

 
(85,000
)
 

Treasury shares, at cost: 130,444 shares as of December 31, 2014

 

 


 

 

 

Additional paid-in capital
992,425

 
992,419

 
528,946

 

 
(1,521,371
)
 
992,419

Retained earnings (deficit)
(821,541
)
 
(931,441
)
 
(322,827
)
 

 
1,254,318

 
(821,491
)
TOTAL CIFC LLC SHAREHOLDERS’ EQUITY
170,909

 
61,003

 
291,119

 

 
(352,078
)
 
170,953

Consolidated Fund Equity / Noncontrolling interests (Note 2)

 

 

 
41,063

 
(33,214
)
 
7,849

TOTAL EQUITY
170,909

 
61,003

 
291,119

 
41,063

 
(385,292
)
 
178,802

TOTAL LIABILITIES AND EQUITY
$
170,959

 
$
241,410

 
$
314,265

 
$
1,475,649

 
$
(455,080
)
 
$
1,747,203


CIFC LLC AND ITS SUBSIDIARIES
Consolidating Balance Sheets
December 31, 2014

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
2,156

 
$
57,134

 
$

 
$

 
$
59,290

Restricted cash and cash equivalents

 

 
1,694

 

 

 
1,694

Investments

 

 
80,115

 

 
(41,416
)
 
38,699

Intercompany investments in subsidiaries


 
156,053

 

 

 
(156,053
)
 

Receivables

 
721

 
5,759

 

 
(4,345
)
 
2,135

Prepaid and other assets

 
2,106

 
179

 

 

 
2,285

Deferred tax asset, net

 
55,475

 

 

 

 
55,475

Equipment and improvements, net

 

 
5,194

 

 

 
5,194

Intangible assets, net

 
13,275

 
1,799

 

 

 
15,074

Goodwill

 
66,550

 
9,450

 

 

 
76,000

Subtotal

 
296,336

 
161,324

 

 
(201,814
)
 
255,846

Assets of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Restricted cash and cash equivalents

 

 
6,872

 
928,544

 

 
935,416

Due from brokers

 

 
36,645

 
83,896

 

 
120,541

Investments

 

 
44,083

 
11,728,743

 


 
11,772,826

Receivables

 

 
281

 
40,713

 

 
40,994

Prepaid and other assets

 

 

 
20,682

 

 
20,682

Total assets of Consolidated Entities

 

 
87,881

 
12,802,578

 

 
12,890,459

TOTAL ASSETS
$

 
$
296,336

 
$
249,205

 
$
12,802,578

 
$
(201,814
)
 
$
13,146,305

LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Accrued and other liabilities

 
1,846

 
13,738

 

 

 
15,584

Contingent liabilities

 

 
12,668

 

 

 
12,668

Long-term debt

 
118,170

 

 

 

 
118,170

   Subtotal

 
120,016

 
26,406

 

 

 
146,422

Non-Recourse Liabilities of Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Due to brokers

 

 
15,583

 
375,708

 

 
391,291

Accrued and other liabilities

 

 

 
5,825

 
(4,343
)
 
1,482

Interest payable

 

 
163

 
36,013

 
(2
)
 
36,174

Long-term debt

 

 
51,000

 
12,023,272

 
(25,238
)
 
12,049,034

Total Non-Recourse Liabilities of Consolidated Entities

 

 
66,746

 
12,440,818

 
(29,583
)
 
12,477,981

TOTAL LIABILITIES

 
120,016

 
93,152

 
12,440,818

 
(29,583
)
 
12,624,403

EQUITY
 
 
 
 
 
 
 
 
 
 
 
Common shares, par value $0.001: 500,000,000 shares authorized, 25,323,417 issued and 25,192,973 outstanding as of December 31, 2014

 
25

 

 

 

 
25

Treasury shares, at cost: 130,444 shares as of December 31, 2014

 
(914
)
 

 

 

 
(914
)
Additional paid-in capital

 
988,904

 
591,518

 

 
(591,518
)
 
988,904

Retained earnings (deficit)

 
(811,695
)
 
(435,465
)
 

 
435,465

 
(811,695
)
TOTAL CIFC LLC SHAREHOLDERS’ EQUITY

 
176,320

 
156,053

 

 
(156,053
)
 
176,320

Consolidated Fund Equity/Noncontrolling interests (Note 2)

 

 

 
226,996

 
(16,178
)
 
210,818

Appropriated retained earnings (deficit) of Consolidated VIEs (Note 3)

 

 

 
134,764

 


 
134,764

TOTAL EQUITY

 
176,320

 
156,053

 
361,760

 
(172,231
)
 
521,902

TOTAL LIABILITIES AND EQUITY
$

 
$
296,336

 
$
249,205

 
$
12,802,578

 
$
(201,814
)
 
$
13,146,305





CIFC LLC AND ITS SUBSIDIARIES
Consolidating Statements of Operations
For The Year Ended December 31, 2015

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Management and incentive fees
$

 
$

 
$
96,765

 
$

 
$
(4,686
)
 
$
92,079

Interest income from investments

 

 
6,564

 

 
(1,231
)
 
5,333

Interest income - Consolidated Entities

 

 
823

 
24,283

 

 
25,106

Total net revenues

 

 
104,152

 
24,283

 
(5,917
)
 
122,518

Expenses
 
 
 
 
 
 
 
 
 
 
 
Employee compensation and benefits

 

 
32,027

 

 

 
32,027

Share-based compensation

 
299

 
5,251

 

 

 
5,550

Professional services
50

 
6,411

 
3,474

 

 

 
9,935

General and administrative expenses

 
3,392

 
6,530

 

 

 
9,922

Depreciation and amortization

 
5,543

 
2,234

 

 

 
7,777

Impairment of intangible assets

 
1,501

 
327

 

 

 
1,828

Corporate interest expense

 
3,808

 

 

 

 
3,808

Expenses - Consolidated Entities

 

 
15

 
15,448

 
(4,689
)
 
10,774

Interest expense - Consolidated Entities

 

 
232

 
9,839

 
(167
)
 
9,904

Total expenses
50

 
20,954

 
50,090

 
25,287

 
(4,856
)
 
91,525

Other Gain (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on investments

 

 
(6,071
)
 

 
1,890

 
(4,181
)
Net gain (loss) on contingent liabilities

 

 
(2,210
)
 

 

 
(2,210
)
Net gain (loss) on investments - Consolidated Entities

 

 
796

 
(26,910
)
 

 
(26,114
)
Net gain (loss) on liabilities - Consolidated Entities

 

 

 
26,147

 
(1,401
)
 
24,746

Net gain (loss) on other investments and derivatives - Consolidated Entities

 

 

 
2,970

 

 
2,970

Intercompany net gain (loss) on investments in subsidiaries

 
46,577

 

 

 
(46,577
)
 

Net other gain (loss)

 
46,577

 
(7,485
)
 
2,207

 
(46,088
)
 
(4,789
)
Income (loss) before income taxes
(50
)
 
25,623

 
46,577

 
1,203

 
(47,149
)
 
26,204

   Income tax (expense) benefit

 
(25,239
)
 

 

 

 
(25,239
)
Net income (loss)
(50
)

384


46,577


1,203


(47,149
)

965

Net (income) loss attributable to noncontrolling interests in Consolidated Entities






(1,203
)

572


(631
)
Net income (loss) attributable to CIFC LLC
$
(50
)
 
$
384

 
$
46,577

 
$

 
$
(46,577
)
 
$
334

















CIFC LLC AND ITS SUBSIDIARIES
Consolidating Statements of Operations
For The Year Ended December 31, 2014

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Management and incentive fees
$

 
$

 
$
84,201

 
$

 
$
(79,333
)
 
$
4,868

Interest income from investments

 
1

 
10,341

 

 
(9,552
)
 
790

Interest income - Consolidated Entities

 

 
2,387

 
514,865

 

 
517,252

Total net revenues

 
1

 
96,929

 
514,865

 
(88,885
)
 
522,910

Expenses
 
 
 
 
 
 
 
 
 
 
 
Employee compensation and benefits

 

 
28,805

 

 

 
28,805

Share-based compensation

 
274

 
2,418

 

 

 
2,692

Professional services

 
3,964

 
3,295

 

 

 
7,259

General and administrative expenses

 
3,523

 
7,163

 

 

 
10,686

Depreciation and amortization

 
8,512

 
2,909

 

 

 
11,421

Corporate interest expense

 
3,915

 
321

 

 

 
4,236

Expenses - Consolidated Entities

 

 
1,025

 
118,383

 
(79,334
)
 
40,074

Interest expense - Consolidated Entities

 

 
425

 
171,513

 
(7
)
 
171,931

Total expenses

 
20,188

 
46,361

 
289,896

 
(79,341
)
 
277,104

Other Gain (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on investments

 

 
3,664

 

 
(1,190
)
 
2,474

Net gain (loss) on contingent liabilities

 

 
(2,932
)
 

 

 
(2,932
)
Net gain (loss) on investments - Consolidated Entities

 

 
(803
)
 
(227,974
)
 

 
(228,777
)
Net gain (loss) on liabilities - Consolidated Entities

 

 

 
(18,123
)
 
9,127

 
(8,996
)
Net gain (loss) on other investments and derivatives - Consolidated Entities

 

 

 
2,031

 

 
2,031

Intercompany net gain (loss) on investments in subsidiaries

 
50,726

 

 

 
(50,726
)
 

Net gain on sale of management contract

 

 
229

 

 

 
229

Net other gain (loss)

 
50,726

 
158

 
(244,066
)
 
(42,789
)
 
(235,971
)
Income (loss) before income taxes

 
30,539

 
50,726

 
(19,097
)
 
(52,333
)
 
9,835

   Income tax (expense) benefit

 
(22,158
)
 

 

 

 
(22,158
)
Net income (loss)


8,381


50,726


(19,097
)

(52,333
)

(12,323
)
Net (income) loss attributable to noncontrolling interests in Consolidated Entities






19,097


1,607


20,704

Net income (loss) attributable to CIFC LLC
$

 
$
8,381

 
$
50,726

 
$

 
$
(50,726
)
 
$
8,381











CIFC LLC AND ITS SUBSIDIARIES
Consolidating Statement of Comprehensive Income (Loss)
For The Year Ended December 31, 2015

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Net income (loss)
$
(50
)
 
$
384

 
$
46,577

 
$
1,203

 
$
(47,149
)
 
$
965

Other comprehensive income (loss)

 

 

 

 

 

Comprehensive income (loss)
(50
)
 
384

 
46,577

 
1,203

 
(47,149
)
 
965

Comprehensive (income) loss attributable to noncontrolling interests in Consolidated Entities

 

 

 
(1,203
)
 
572

 
(631
)
Comprehensive income (loss) attributable to CIFC LLC
$
(50
)
 
$
384

 
$
46,577

 
$

 
$
(46,577
)
 
$
334



CIFC LLC AND ITS SUBSIDIARIES
Consolidating Statement of Comprehensive Income (Loss)
For The Year Ended December 31, 2014

 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
Net income (loss)
$

 
$
8,381

 
$
50,726

 
$
(19,097
)
 
$
(52,333
)
 
$
(12,323
)
Other comprehensive income (loss)

 

 

 

 

 

Comprehensive income (loss)

 
8,381

 
50,726

 
(19,097
)
 
(52,333
)
 
(12,323
)
Comprehensive (income) loss attributable to noncontrolling interests in Consolidated Entities

 

 

 
19,097

 
1,607

 
20,704

Comprehensive income (loss) attributable to CIFC LLC
$

 
$
8,381

 
$
50,726

 
$

 
$
(50,726
)
 
$
8,381


CIFC LLC AND ITS SUBSIDIARIES
Consolidating Statement of Cash Flows
For The Year Ended December 31, 2015
 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 

 
 

 
 

 
 

Net income (loss)
$
(50
)
 
$
384

 
$
46,577

 
$
1,203

 
$
(47,149
)
 
$
965

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 

Amortization of debt issuance costs and other

 
125

 

 

 

 
125

Share-based compensation

 
299

 
5,251

 

 

 
5,550

Net (gain) loss on investments and contingent liabilities / other (gain) loss

 

 
8,281

 

 
(1,890
)
 
6,391

Intercompany net (gain) loss on investments in subsidiaries

 
(46,577
)
 


 

 
46,577

 

Depreciation and amortization

 
5,543

 
2,234

 

 

 
7,777

Impairment of intangible assets

 
1,501

 
327

 

 

 
1,828

Deferred income tax expense (benefit)

 
11,050

 

 

 

 
11,050

Excess tax benefits from share-based payment arrangements

 
128

 

 

 

 
128

Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Net (gain) loss on investments

 

 
(796
)
 
26,910

 

 
26,114

Net (gain) loss on liabilities

 

 

 
(26,147
)
 
1,401

 
(24,746
)
Net other (gain) loss

 

 

 
(2,970
)
 

 
(2,970
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
 
 
Receivables
(785
)
 
424

 
(21,480
)
 
(245
)
 
21,179

 
(907
)
Prepaid and other assets

 
481

 
(168
)
 

 

 
313

Due to brokers

 
61

 

 

 

 
61

Accrued and other liabilities
50

 
22,219

 
(1,928
)
 

 
(20,649
)
 
(308
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Due from brokers

 

 
36,645

 
(27,647
)
 

 
8,998

Purchase of investments

 

 
(55,017
)
 
(951,887
)
 

 
(1,006,904
)
Sales of investments

 

 
99,895

 
371,805

 

 
471,700

Receivables

 

 
281

 
(1,618
)
 

 
(1,337
)
Due to brokers

 

 
(15,583
)
 
59,008

 

 
43,425

Accrued and other liabilities

 

 

 
460

 
(373
)
 
87

Interest payable

 

 
(163
)
 
2,622

 
(167
)
 
2,292

Net cash provided by (used in) operating activities
(785
)
 
(4,362
)
 
104,356

 
(548,506
)
 
(1,071
)
 
(450,368
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 

 
 
 
 
 
 

Purchases of investments

 

 
(232,539
)
 

 
166,008

 
(66,531
)
Sales of investments

 

 
154,179

 
9,660

 
(94,977
)
 
68,862

Intercompany investments in subsidiaries

 
(148,422
)
 

 

 
148,422

 

Intercompany distributions from subsidiaries
785

 
125,404

 

 

 
(126,189
)
 

Purchases of equipment and improvements

 

 
(1,059
)
 

 

 
(1,059
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 
Change in restricted cash and cash equivalents

 

 
6,871

 
(48,005
)
 

 
(41,134
)
Net cash provided by (used in) investing activities
785

 
(23,018
)
 
(72,548
)
 
(38,345
)
 
93,264

 
(39,862
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of long-term debt

 
40,000

 

 

 

 
40,000

Debt issuance cost

 
(2,133
)
 

 

 

 
(2,133
)
Repurchases of common shares

 
(1,151
)
 

 

 

 
(1,151
)
Distributions paid

 
(10,130
)
 

 

 

 
(10,130
)
Intercompany contributions

 

 
148,422

 

 
(148,422
)
 

Intercompany distributions

 

 
(126,189
)
 

 
126,189

 

Proceeds from extension of warrants

 
350

 

 

 

 
350

Proceeds from the exercise of options

 
74

 

 

 

 
74

Payments for tax from the net delivery of restricted stock units

 
(266
)
 

 

 

 
(266
)
Deferred purchase payments and payments on contingent liabilities

 

 
(3,599
)
 

 

 
(3,599
)
Excess tax benefits from share-based payment arrangements


 
(128
)
 

 

 

 
(128
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 
 

Contributions from noncontrolling interests

 

 

 
37,741

 
(21,641
)
 
16,100

Distributions to noncontrolling interests

 

 

 
(15,307
)
 

 
(15,307
)
Proceeds from issuance of long-term debt

 

 

 
809,695

 
(173,772
)
 
635,923

Payments made on long-term debt

 

 
(51,000
)
 
(245,278
)
 
125,453

 
(170,825
)
Net cash provided by (used in) financing activities

 
26,616

 
(32,366
)
 
586,851

 
(92,193
)
 
488,908

Net increase (decrease) in cash and cash equivalents

 
(764
)
 
(558
)
 

 

 
(1,322
)
Cash and cash equivalents at beginning of period

 
2,156

 
57,134

 

 

 
59,290

Cash and cash equivalents at end of period
$

 
$
1,392

 
$
56,576

 
$

 
$

 
$
57,968


CIFC LLC AND ITS SUBSIDIARIES
Consolidating Statement of Cash Flows
For The Year Ended December 31, 2014
 
Parent/ CIFC LLC
 
Subsidiary Issuer/ CIFC Corp.
 
Subsidiary Guarantors
 
Non Guarantors
 
Eliminations
 
CIFC LLC Consolidated
 
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 

 
 

 
 

 
 

Net income (loss)
$

 
$
8,381

 
$
50,726

 
$
(19,097
)
 
$
(52,333
)
 
$
(12,323
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 

Amortization of debt issuance costs and other

 
696

 
321

 

 

 
1,017

Share-based compensation

 
274

 
2,418

 

 

 
2,692

Net (gain) loss on investments and contingent liabilities / other (gain) loss

 

 
(731
)
 

 
1,189

 
458

Intercompany net (gain) loss on investments in subsidiaries

 
(50,726
)
 

 

 
50,726

 

Depreciation and amortization

 
8,512

 
2,909

 

 

 
11,421

Deferred income tax expense (benefit)

 
3,932

 

 

 

 
3,932

Excess tax benefits from share-based payment arrangements

 
(171
)
 

 

 

 
(171
)
Net gain on the sale of management contract

 

 
(229
)
 

 

 
(229
)
Consolidated Entities:


 


 
 
 
 
 
 
 


Net (gain) loss on investments

 

 
803

 
227,974

 

 
228,777

Net (gain) loss on liabilities

 

 

 
18,123

 
(9,127
)
 
8,996

Net other (gain) loss

 

 


 
(2,031
)
 

 
(2,031
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
 


Due from brokers

 

 
13,827

 
(995
)
 

 
12,832

Receivables

 
(721
)
 
441

 
17

 
243

 
(20
)
Prepaid and other assets

 
361

 
43

 
222

 

 
626

Due to brokers

 

 
(508
)
 
(4,991
)
 

 
(5,499
)
Accrued and other liabilities

 
(666
)
 
2,246

 
(271
)
 
269

 
1,578

Change in restricted cash and cash equivalents

 
1,615

 
(1,608
)
 


 

 
7

Consolidated Entities:
 
 
 
 
 
 
 
 
 
 


Due from brokers

 

 
(36,645
)
 
160,765

 

 
124,120

Purchase of investments

 

 
(102,448
)
 
(8,715,405
)
 

 
(8,817,853
)
Sales of investments

 

 
57,563

 
7,331,128

 
13,761

 
7,402,452

Receivables

 

 
(281
)
 
(24,613
)
 
1

 
(24,893
)
Due to brokers

 

 
15,583

 
(220,939
)
 
(13,761
)
 
(219,117
)
Accrued and other liabilities

 

 

 
1,653

 
(508
)
 
1,145

Interest payable

 

 
163

 
13,647

 
(3
)
 
13,807

Net cash provided by (used in) operating activities

 
(28,513
)
 
4,593

 
(1,234,813
)
 
(9,543
)
 
(1,268,276
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 


Proceeds from the sale of management contracts

 

 
229

 


 

 
229

Purchases of investments

 

 
(136,136
)
 
15,735

 
91,257

 
(29,144
)
Sales of investments

 

 
172,819

 
1,001

 
(153,336
)
 
20,484

Intercompany investments in subsidiaries

 
(440,277
)
 

 

 
440,277

 

Intercompany distributions from subsidiaries

 
478,341

 

 

 
(478,341
)
 

Purchases of equipment and improvements

 

 
(2,204
)
 

 

 
(2,204
)
Consolidated Entities:
 
 
 
 
 
 
 
 
 
 


Change in restricted cash and cash equivalents

 

 
(6,873
)
 
(206,021
)
 

 
(212,894
)
Net cash provided by (used in) investing activities

 
38,064

 
27,835

 
(189,285
)
 
(100,143
)
 
(223,529
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 


Distributions paid

 
(9,218
)
 

 

 

 
(9,218
)
Intercompany contributions

 

 
440,277

 

 
(440,277
)
 

Intercompany distributions

 

 
(478,341
)
 

 
478,341

 

Proceeds from extension of warrants

 
200

 

 


 

 
200

Proceeds from the exercise of options

 
580

 

 

 

 
580

Deferred purchase payments and payments on contingent liabilities

 

 
(8,724
)
 

 

 
(8,724
)
Excess tax benefits from share-based payment arrangements


 
171

 

 

 

 
171

Consolidated Entities:
 
 
 
 
 
 
 
 
 
 


Contributions from noncontrolling interests

 

 

 
93,587

 
(100
)
 
93,487

Distributions to noncontrolling interests

 

 

 
(37,783
)
 
10,685

 
(27,098
)
Proceeds from issuance of long-term debt

 

 
51,000

 
4,702,304

 
(112,323
)
 
4,640,981

Payments made on long-term debt

 

 

 
(3,338,141
)
 
173,360

 
(3,164,781
)
Net cash provided by (used in) financing activities

 
(8,267
)
 
4,212

 
1,419,967

 
109,686

 
1,525,598

Net increase (decrease) in cash and cash equivalents

 
1,284

 
36,640

 
(4,131
)
 

 
33,793

Cash and cash equivalents at beginning of period


 
872

 
20,494

 
4,131

 

 
25,497

Cash and cash equivalents at end of period
$

 
$
2,156

 
$
57,134

 
$

 
$

 
$
59,290