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RESTATED FINANCIALS (Tables)
12 Months Ended
Sep. 30, 2012
Restated Financials [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]
The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidated balance sheet for the fiscal year ended September 30, 2012, which incorporates RSO as of December 31, 2012 (in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
ASSETS
 
 
 
 
 
 
 
Cash
$
19,393

 
$
—

 
$
—

 
$
19,393

Restricted cash
642

 
—

 
—

 
642

Receivables
3,554

 
—

 
—

 
3,554

Receivables from managed entities and related parties, net
41,051

 
—

 
(6,633
)
 
34,418

Investments in real estate, net
19,149

 
—

 
 
 
19,149

Investment securities, at fair value
22,532

 
—

 
(15,502
)
 
7,030

Investments in unconsolidated loan manager (see Notes 1 and 9)
36,356

 
—

 
 
 
36,356

Investments in unconsolidated entities
12,993

 
—

 
 
 
12,993

Assets of consolidated variable interest entities ("VIE") - RSO:
 
 
 
 
 
 
 
     Cash and cash equivalents (including restricted cash)
—

 
179,390

 
—

 
179,390

     Investments, at fair value
—

 
256,433

 
—

 
256,433

     Loans
—

 
1,850,998

 
(1,677
)
 
1,849,321

     Investments in real estate and consolidated entities
—

 
120,799

 
(93
)
 
120,706

     Other assets - RSO
—

 
70,631

 
(31
)
 
70,600

Total assets of consolidated VIE - RSO
—

 
2,478,251

 
(1,801
)
 
2,476,450

 
 
 
 
 
 
 
 
Property and equipment, net
2,732

 
—

 
—

 
2,732

Deferred tax assets, net
34,565

 
—

 
(6,795
)
 
27,770

Other assets
3,776

 
—

 
 
 
3,776

Total assets
$
196,743

 
$
2,478,251

 
$
(30,731
)
 
$
2,644,263

 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Accrued expenses and other liabilities
$
23,042

 
$
—

 
$
—

 
$
23,042

Payables to managed entities and related parties
4,380

 
—

 
(31
)
 
4,349

Borrowings
23,020

 
—

 
(1,677
)
 
21,343

Liabilities of consolidated VIE - RSO:
 
 
 
 
 
 


     Borrowings
—

 
1,785,600

 
—

 
1,785,600

     Other liabilities
—

 
79,306

 
(6,633
)
 
72,673

Total liabilities
50,442

 
1,864,906

 
(8,341
)
 
1,907,007

 
 
 
 
 
 
 
 
Commitments and contingencies


 


 

 

 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
Preferred stock
—

 
—

 
—

 
—

Common stock
294

 
—

 
—

 
294

Additional paid-in capital
285,844

 
—

 
—

 
285,844

Accumulated deficit
(24,508
)
 
—

 
(1,349
)
 
(25,857
)
Treasury stock, at cost
(102,457
)
 
—

 
—

 
(102,457
)
Accumulated other comprehensive loss
(13,080
)
 
—

 
10,854

 
(2,226
)
Total stockholders’ equity
146,093

 
—

 
9,505

 
155,598

Noncontrolling interests
208

 
—

 
—

 
208

Noncontrolling interest attributable to RSO
—

 
613,345

 
(31,895
)
 
581,450

Total equity
146,301

 
613,345

 
(22,390
)
 
737,256

 
$
196,743

 
$
2,478,251

 
$
(30,731
)
 
$
2,644,263

The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidating balance sheet for the fiscal year ended September 30, 2011, which incorporates RSO as of December 31, 2011 (in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
ASSETS
 
 
 
 
 
 
 
Cash
$
24,455

 
$
—

 
$
—

 
$
24,455

Restricted cash
20,257

 
—

 
—

 
20,257

Receivables
1,981

 
—

 
—

 
1,981

Receivables from managed entities and related parties, net
54,815

 
—

 
(2,698
)
 
52,117

Investments in commercial finance, net
192,012

 
—

 
—

 
192,012

Investments in real estate, net
19,942

 
—

 
—

 
19,942

Investment securities, at fair value
15,124

 
—

 
(12,392
)
 
2,732

Investments in unconsolidated entities
12,710

 
—

 
—

 
12,710

Assets of consolidated variable interest entities ("VIE") - RSO:
 
 
 
 
 
 
 
     Cash and cash equivalents (including restricted cash)
—

 
185,922

 
—

 
185,922

     Investments, at fair value
—

 
179,539

 
—

 
179,539

     Loans
—

 
1,784,714

 
(8,605
)
 
1,776,109

     Investments in real estate and consolidated entities
—

 
98,906

 
(38,850
)
 
60,056

     Other assets - RSO
—

 
35,643

 
(34
)
 
35,609

Total assets of consolidated VIE - RSO
—

 
2,284,724

 
(47,489
)
 
2,237,235

 
 
 
 
 
 
 
 
Property and equipment, net
6,998

 
—

 
—

 
6,998

Deferred tax assets, net
51,581

 
—

 
(7,666
)
 
43,915

Goodwill
7,969

 
—

 
—

 
7,969

Other assets
14,662

 
—

 
—

 
14,662

Total assets
$
422,506

 
$
2,284,724

 
$
(70,245
)
 
$
2,636,985

 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Accrued expenses and other liabilities
$
40,887

 
$
—

 
$
—

 
$
40,887

Payables to managed entities and related parties
1,232

 
—

 
(222
)
 
1,010

Borrowings
222,659

 
—

 
(8,605
)
 
214,054

Liabilities of consolidated VIE - RSO:
 
 
 
 
 
 


     Borrowings
—

 
1,794,083

 
—

 
1,794,083

     Other liabilities
—

 
60,951

 
(2,698
)
 
58,253

Total liabilities
264,778

 
1,855,034

 
(11,525
)
 
2,108,287

 
 
 
 
 
 
 
 
Commitments and contingencies


 


 


 


 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
Preferred stock
—

 
—

 
—

 
—

Common stock
281

 
—

 
—

 
281

Additional paid-in capital
281,686

 
—

 
—

 
281,686

Accumulated deficit
(48,032
)
 
—

 
(1,022
)
 
(49,054
)
Treasury stock, at cost
(98,954
)
 
—

 
—

 
(98,954
)
Accumulated other comprehensive loss
(14,613
)
 
—

 
12,244

 
(2,369
)
Total stockholders’ equity
120,368

 
—

 
11,222

 
131,590

Noncontrolling interests
37,360

 
—

 
(38,629
)
 
(1,269
)
Noncontrolling interest attributable to RSO
—

 
429,690

 
(31,313
)
 
398,377

Total equity
157,728

 
429,690

 
(58,720
)
 
528,698

 
$
422,506

 
$
2,284,724

 
$
(70,245
)
 
$
2,636,985


The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidating statement of operations for the fiscal year ended September 30, 2012, which incorporates RSO for the calendar year ended December 31, 2012 (in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
REVENUES:
 
 
 
 
 
 
 
Real estate
$
40,595

 
$
—

 
$
—

 
$
40,595

Financial fund management
21,957

 
—

 
—

 
21,957

Commercial finance
1,884

 
—

 
—

 
1,884

 
64,436

 
—

 
—

 
64,436

Revenues from consolidated VIE - RSO (see Note 28)
—

 
123,698

 


 
123,698

Elimination of consolidated VIE revenues attributed to operating segments
—

 
—

 
(17,234
)
 
(17,234
)
Total Revenues
64,436

 
123,698

 
(17,234
)
 
170,900

COSTS AND EXPENSES:
 

 
 

 
 
 
 

Real estate
29,669

 
—

 
—

 
29,669

Financial fund management
17,086

 
—

 
—

 
17,086

Commercial finance
2,414

 
—

 
—

 
2,414

Restructuring expenses
365

 
—

 
—

 
365

General and administrative
10,460

 
—

 
—

 
10,460

Gain on sale of leases and loans
(37
)
 
—

 
—

 
(37
)
Impairment charges
2,280

 
—

 
—

 
2,280

Provision for credit losses
17,246

 
—

 
—

 
17,246

Depreciation and amortization
3,653

 
—

 
—

 
3,653

 
83,136

 
—

 
—

 
83,136

Expenses from consolidated VIE - RSO
—

 
78,452

 
(14,602
)
 
63,850

Elimination of consolidated VIE expenses attributed to operating segments
—

 
—

 
(16,360
)
 
(16,360
)
Total expenses
83,136

 
78,452

 
(30,962
)
 
130,626

OPERATING INCOME (LOSS)
(18,700
)
 
45,246

 
13,728

 
40,274

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 

 
 

 
 
 
 

Gain on deconsolidation and sale of subsidiaries
63,291

 
—

 
—

 
63,291

Loss on extinguishment of debt
(2,190
)
 
—

 
—

 
(2,190
)
Other-than-temporary impairment on investments
(74
)
 
—

 
—

 
(74
)
Gain on sale of investment securities, net
63

 
—

 
—

 
63

Interest expense
(4,741
)
 
—

 
—

 
(4,741
)
Other income (expense), net
2,103

 
—

 
(2,174
)
 
(71
)
Other income, net, from consolidated VIE - RSO
—

 
19,197

 


 
19,197

Elimination of consolidated VIE other income, net
—

 
—

 
227

 
227

 
58,452

 
19,197

 
(1,947
)
 
75,702

Income from continuing operations before taxes
39,752

 
64,443

 
11,781

 
115,976

Income tax provision
13,512

 
—

 
14,602

 
28,114

Income (loss) from continuing operations
26,240

 
64,443

 
(2,821
)
 
87,862

Loss from discontinued operations, net of tax
(58
)
 
—

 
—

 
(58
)
Net income (loss)
26,182

 
64,443

 
(2,821
)
 
87,804

Net (income) loss attributable to noncontrolling interests
(348
)
 
—

 
571

 
223

Net income attributable to noncontrolling interests - RSO
—

 
(62,520
)
 
—

 
(62,520
)
Net income (loss) attributable to common shareholders
$
25,834

 
$
1,923

 
$
(2,250
)
 
$
25,507







The following sets forth the effect of the restatement on the Company’s basic and diluted earnings (loss) per share for the fiscal years ended September 30, 2012 and 2011, which incorporates RSO for the calendar year ended December 31, 2012 and 2011 (in thousands, except share data):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
For the fiscal year ended September 30, 2012:
 
 
 
 
 
 
 
Amounts attributable to common shareholders:
 

 
 

 
 
 
 

Income (loss) from continuing operations
$
25,892

 
$
1,923

 
$
(2,250
)
 
$
25,565

Discontinued operations
(58
)
 
—

 
—

 
(58
)
Net income (loss)
$
25,834

 
$
1,923

 
$
(2,250
)
 
$
25,507

 
 
 
 
 
 
 
 
 
As Previously Reported
 
 
 
 
 
As Restated
Basic earnings per share:
 

 
 
 
 
 
 

Continuing operations
$
1.31

 
 
 
 
 
$
1.29

Discontinued operations
—

 
 
 
 
 
—

Net income
$
1.31

 
 
 
 
 
$
1.29

Weighted average shares outstanding
19,740

 
 
 
 
 
19,740

 
 
 
 
 
 
 
 
Diluted earnings per share:
 

 
 
 
 
 
 

Continuing operations
$
1.25

 
 
 
 
 
$
1.24

Discontinued operations
—

 
 
 
 
 
—

Net income
$
1.25

 
 
 
 
 
$
1.24

Weighted average shares outstanding
20,634

 
 
 
 
 
20,634

 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
For the fiscal year ended September 30, 2011:
 
 
 
 
 
 
 
Amounts attributable to common shareholders:
 

 
 

 
 
 
 

(Loss) income from continuing operations
$
(6,026
)
 
$
1,433

 
$
(7,768
)
 
$
(12,361
)
Discontinued operations
(2,202
)
 
—

 
—

 
(2,202
)
Net (loss) income
$
(8,228
)
 
$
1,433

 
$
(7,768
)
 
$
(14,563
)
 
 
 
 
 
 
 
 
 
As Previously Reported
 
 
 
 
 
As Restated
Basic loss per share:
 

 
 
 
 
 
 

Continuing operations
$
(0.31
)
 
 
 
 
 
$
(0.64
)
Discontinued operations
(0.11
)
 
 
 
 
 
(0.11
)
Net loss
$
(0.42
)
 
 
 
 
 
$
(0.75
)
Weighted average shares outstanding
19,525

 
 
 
 
 
19,525

 
 
 
 
 
 
 
 
Diluted loss per share:
 

 
 
 
 
 
 

Continuing operations
$
(0.31
)
 
 
 
 
 
$
(0.64
)
Discontinued operations
(0.11
)
 
 
 
 
 
(0.11
)
Net loss
$
(0.42
)
 
 
 
 
 
$
(0.75
)
Weighted average shares outstanding
19,525

 
 
 
 
 
19,525

The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidating statement of operations for the fiscal year ended September 30, 2011, which incorporates RSO for the calendar year ended December 31, 2011(in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
REVENUES:
 
 
 
 
 
 
 
Real estate
$
38,380

 
$
—

 
$
—

 
$
38,380

Financial fund management
25,841

 
—

 
—

 
25,841

Commercial finance
21,795

 
—

 
—

 
21,795

 
86,016

 
—

 
—

 
86,016

Revenues from consolidated VIE - RSO
—

 
95,986

 
—

 
95,986

Elimination of consolidated VIE revenues attributed to operating segments
—

 
—

 
(15,070
)
 
(15,070
)
Total Revenues
86,016

 
95,986

 
(15,070
)
 
166,932

COSTS AND EXPENSES:
 

 
 

 
 
 
 

Real estate
24,465

 
—

 
—

 
24,465

Financial fund management
20,562

 
—

 
—

 
20,562

Commercial finance
15,207

 
—

 
—

 
15,207

General and administrative
11,522

 
—

 
—

 
11,522

Gain on sale of leases and loans
(659
)
 
—

 
—

 
(659
)
Provision for credit losses
10,661

 
—

 
—

 
10,661

Depreciation and amortization
10,739

 
—

 
—

 
10,739

 
92,497

 
—

 
—

 
92,497

Expenses from consolidated VIE - RSO
—

 
62,139

 
(12,036
)
 
50,103

Elimination of consolidated VIE expenses attributed to operating segments
—

 
—

 
(11,061
)
 
(11,061
)
Total expenses
92,497

 
62,139

 
(23,097
)
 
131,539

OPERATING (LOSS) INCOME
(6,481
)
 
33,847

 
8,027

 
35,393

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 

 
 

 
 
 
 

Gain on sale of management contract
6,520

 
—

 
—

 
6,520

Gain on extinguishment of servicing and repurchase liabilities
4,426

 
—

 
(4,426
)
 
—

Loss on sale of investment securities, net
(1,198
)
 
—

 
—

 
(1,198
)
Interest expense
(15,343
)
 
—

 
—

 
(15,343
)
Other income (expense), net
2,242

 
—

 
(2,455
)
 
(213
)
Other income, net, from consolidated VIE - RSO
—

 
3,869

 


 
3,869

Elimination of consolidated VIE other income, net
—

 


 
212

 
212

 
(3,353
)
 
3,869

 
(6,669
)
 
(6,153
)
(Loss) income from continuing operations before taxes
(9,834
)
 
37,716

 
1,358

 
29,240

Income tax (benefit) provision
(4,607
)
 
—

 
12,036

 
7,429

(Loss) income from continuing operations
(5,227
)
 
37,716

 
(10,678
)
 
21,811

Loss from discontinued operations, net of tax
(2,202
)
 
—

 
—

 
(2,202
)
Net (loss) income
(7,429
)
 
37,716

 
(10,678
)
 
19,609

Net (income) loss attributable to noncontrolling interests
(799
)
 
 
 
2,910

 
2,111

Net income attributable to noncontrolling interests - RSO
—

 
(36,283
)
 
—

 
(36,283
)
Net (loss) income attributable to common shareholders
$
(8,228
)
 
$
1,433

 
$
(7,768
)
 
$
(14,563
)


    




The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidating statement of comprehensive income for the fiscal year ended September 30, 2012, which incorporates RSO for the calendar year ended December 31, 2012 (in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As restated
Net income (loss)
$
26,182

 
$
64,443

 
$
(2,821
)
 
$
87,804

 
 
 
 
 
 
 
 
Other comprehensive income (loss):
 
 
 
 
 
 
 
Unrealized gain (loss) on investment securities available for sale, net of tax
1,363

 
—

 
(1,391
)
 
(28
)
Less: reclassification for losses realized
45

 
—

 
—

 
45

 
1,408

 
—

 
(1,391
)
 
17

Minimum pension liability adjustments, net of tax
(289
)
 
—

 
—

 
(289
)
Minimum pension liability - reclassification for losses realized, net of tax
214

 
—

 
1

 
215

 
(75
)
 
—

 
1

 
(74
)
Unrealized loss on hedging contracts
(6
)
 
—

 
—

 
(6
)
Deconsolidation of LEAF- unrealized loss on hedging contracts
255

 
—

 
—

 
255

 
249

 
—

 
—

 
249

Subtotal - RAI activity:
1,582

 
—

 
(1,390
)
 
192

Activity related to consolidated VIE - RSO:
 
 
 
 
 
 
 
 Reclassification adjustments for gain included in net income
—

 
1,728

 
—

 
1,728

 Unrealized gain on available-for-sale securities, net
—

 
18,770

 
—

 
18,770

 Reclassification adjustments associated with unrealized loss from interest rate hedges included in net income
—

 
227

 
—

 
227

 Unrealized losses on derivatives, net
—

 
(1,476
)
 
—

 
(1,476
)
    Subtotal activity related to consolidated VIE -RSO:
—

 
19,249

 
—

 
19,249

Subtotal - other comprehensive income (loss)
1,582

 
19,249

 
(1,390
)
 
19,441

Comprehensive income (loss)
27,764

 
83,692

 
(4,211
)
 
107,245

Comprehensive income attributable to noncontrolling interests
(397
)
 
—

 
(81,198
)
 
(81,595
)
Comprehensive income (loss) attributable to common shareholders
$
27,367

 
$
83,692

 
$
(85,409
)
 
$
25,650



The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidating statement of comprehensive income for the fiscal year ended September 30, 2011, which incorporates RSO for the calendar year ended December 31, 2011 (in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As restated
Net (loss) income
$
(7,429
)
 
$
37,716

 
$
(10,678
)
 
$
19,609

 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
Unrealized (loss) gain on investment securities available for sale, net of tax
(2,564
)
 
—

 
2,036

 
(528
)
Less: reclassification for losses realized
904

 
—

 
—

 
904

 
(1,660
)
 
—

 
2,036

 
376

Minimum pension liability adjustments, net of tax
(632
)
 
—

 
—

 
(632
)
Minimum pension liability - reclassification for losses realized, net of tax
169

 
—

 
—

 
169

 
(463
)
 
—

 
—

 
(463
)
Unrealized loss on hedging contracts
(75
)
 
—

 
—

 
(75
)
Foreign currency gain
368

 
—

 
—

 
368

Subtotal- RAI activity
(1,830
)
 
—

 
2,036

 
206

Activity related to consolidated VIE - RSO:
 
 
 
 
 
 
 
Reclassification adjustments for gain included in net income
—

 
1,080

 
—

 
1,080

Unrealized losses on available-for-sale securities, net
—

 
(13,798
)
 
—

 
(13,798
)
Reclassification adjustments associated with unrealized loss from interest rate hedges included in net income
—

 
227

 
—

 
227

  Unrealized gains on derivatives, net
—

 
82

 
—

 
82

    Subtotal activity related to consolidated VIE-RSO:
—

 
(12,409
)
 
—

 
(12,409
)
Subtotal- other comprehensive (loss) income
(1,830
)
 
(12,409
)
 
2,036

 
(12,203
)
Comprehensive (loss) income
(9,259
)
 
25,307

 
(8,642
)
 
7,406

Comprehensive income attributable to noncontrolling interests
(775
)
 
—

 
(20,964
)
 
(21,739
)
Comprehensive (loss) income attributable to common shareholders
$
(10,034
)
 
$
25,307

 
$
(29,606
)
 
$
(14,333
)

The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidating statement of cash flows for the fiscal year ended September 30, 2012, which incorporates cash flows from RSO for the calendar year ended December 31, 2012 (in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
Net income (loss)
$
26,182

 
$
64,443

 
$
(2,821
)
 
$
87,804

Adjustments to reconcile net income (loss) to net cash
used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
4,875

 
—

 
—

 
4,875

Impairment charges
2,280

 
—

 
—

 
2,280

Provision for credit losses
17,246

 
—

 
—

 
17,246

Unrealized gain on trading securities
(1,108
)
 
—

 
—

 
(1,108
)
Equity in earnings of unconsolidated entities
(3,439
)
 
—

 
—

 
(3,439
)
Distributions from unconsolidated entities
3,463

 
—

 
—

 
3,463

Gain on sale of leases and loans
(37
)
 
—

 
—

 
(37
)
Other-than-temporary impairment losses recognized in earnings
74

 
—

 
—

 
74

Gain on sale of loans and investment securities, net
(972
)
 
—

 
—

 
(972
)
Gain on sale of assets
(84
)
 
—

 
—

 
(84
)
Gain on sale and deconsolidation of subsidiaries
(63,291
)
 
—

 
—

 
(63,291
)
Loss on extinguishment of debt
2,190

 
—

 
—

 
2,190

Deferred income tax provision
13,393

 
—

 
—

 
13,393

Equity-based compensation issued
1,286

 
—

 
—

 
1,286

Equity-based compensation received
(153
)
 
—

 
153

 
—

Trading securities purchases and sales, net
(1,048
)
 
—

 
—

 
(1,048
)
Loss from discontinued operations
58

 
—

 
—

 
58

Changes in operating assets and liabilities
(2,911
)
 
—

 
—

 
(2,911
)
Change in cash attributable to operations of consolidated VIE - RSO
—

 
(65,608
)
 
382

 
(65,226
)
Net cash used in operating activities
(1,996
)
 
(1,165
)
 
(2,286
)
 
(5,447
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
—

 
 
Capital expenditures
(222
)
 
—

 
—

 
(222
)
Payments received on real estate loans and real estate
1,726

 
—

 
—

 
1,726

Investments in unconsolidated real estate entities
(1,608
)
 
—

 
—

 
(1,608
)
Purchase of commercial finance assets
(18,483
)
 
—

 
—

 
(18,483
)
Principal payments received on leases and loans
9,043

 
—

 
—

 
9,043

Purchase of loans and securities by consolidated VIE - RSO
—

 
(769,762
)
 
—

 
(769,762
)
Principal payments and proceeds from sales received by consolidated VIE - RSO
—

 
822,476

 
—

 
822,476

Cash divested on deconsolidation of LEAF
(2,284
)
 
—

 
—

 
(2,284
)
Net proceeds from sale of Apidos and cash divested on deconsolidation
17,860

 
—

 
—

 
17,860

Purchase of loans and investments
(1,874
)
 
—

 
—

 
(1,874
)
Proceeds from sale of loans and investments
262

 
—

 
—

 
262

Increase in restricted cash of consolidated VIE - RSO
—

 
50,756

 
—

 
50,756

Other investing activity of consolidated VIE - RSO
—

 
(1,849
)
 
(76
)
 
(1,925
)
Net cash provided by (used in) investing activities
4,420

 
101,621

 
(76
)
 
105,965

 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
—

 
 
Increase in borrowings
128,845

 
—

 
—

 
128,845

Principal payments on borrowings
(129,416
)
 
—

 
—

 
(129,416
)
Net (repayments) borrowings of debt by consolidated VIE - RSO
—

 
(207,149
)
 
—

 
(207,149
)
Dividends paid
(2,310
)
 
—

 
—

 
(2,310
)
Dividends paid on common stock by consolidated VIE - RSO
—

 
(74,050
)
 
2,174

 
(71,876
)
Proceeds from issuance of common stock
2,131

 
—

 
—

 
2,131

Net proceeds from issuance of common stock by consolidated VIE - RSO
—

 
171,056

 
—

 
171,056

Repurchase of common stock
(2,324
)
 
—

 
—

 
(2,324
)
Preferred stock dividends paid by LEAF to RSO
(188
)
 
—

 
188

 
—

Increase in restricted cash
(664
)
 
—

 
—

 
(664
)
Other
(2,275
)
 
—

 
—

 
(2,275
)
Other financing activity of consolidated VIE - RSO
—

 
9,687

 
—

 
9,687

Net cash (used in) provided by financing activities
(6,201
)
 
(100,456
)
 
2,362

 
(104,295
)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
 
 
 
 
—

 
 
Operating activities
(1,285
)
 
—

 
—

 
(1,285
)
Net cash used in discontinued operations
(1,285
)
 
—

 
—

 
(1,285
)
 
 
 
 
 
—

 
 
Decrease in cash
(5,062
)
 
—

 
—

 
(5,062
)
Cash, beginning of year
24,455

 
—

 
—

 
24,455

Cash, end of year
$
19,393

 
$
—

 
$
—

 
$
19,393

The following sets forth the effect of the restatement on the applicable line items in the Company’s consolidating statement of cash flows for the fiscal year ended September 30, 2011, which incorporates cash flows from RSO for the calendar year ended December 31, 2011 (in thousands):
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
Net (loss) income
$
(7,429
)
 
$
37,716

 
$
(10,678
)
 
$
19,609

Adjustments to reconcile net (loss) income to net cash
( used in) provided by operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
15,780

 
—

 
88

 
15,868

Provision for credit losses
10,661

 
—

 
799

 
11,460

Equity in earnings of unconsolidated entities
(10,377
)
 
—

 
—

 
(10,377
)
Distributions from unconsolidated entities
4,522

 
—

 
—

 
4,522

Gain on sale of leases and loans
(659
)
 
—

 
—

 
(659
)
Loss on sale of loans and investment securities, net
1,198

 
—

 
—

 
1,198

Gain on sale of assets
(196
)
 
—

 
—

 
(196
)
Gain on sale of management contract
(6,520
)
 
—

 
—

 
(6,520
)
Gain on extinguishment of servicing and repurchase liabilities
(4,426
)
 
—

 
4,426

 
—

Deferred income tax benefit
(5,657
)
 
—

 
—

 
(5,657
)
Equity-based compensation issued
2,525

 
—

 
—

 
2,525

Equity-based compensation received
(463
)
 
—

 
463

 
—

Loss from discontinued operations
2,202

 
—

 
—

 
2,202

Changes in operating assets and liabilities
(2,624
)
 
—

 
—

 
(2,624
)
(Increase) decrease in cash held by consolidated VIE - RSO
—

 
(18,307
)
 
2,142

 
(16,165
)
Net cash (used in) provided by operating activities
(1,463
)
 
19,409

 
(2,760
)
 
15,186

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
—

 
 
Capital expenditures
(1,165
)
 
—

 
—

 
(1,165
)
Payments received on real estate loans and real estate
16,487

 
—

 
—

 
16,487

Investments in unconsolidated real estate entities
(2,371
)
 
—

 
—

 
(2,371
)
Purchase of commercial finance assets
(105,777
)
 
—

 
—

 
(105,777
)
Principal payments received on leases and loans
29,056

 
—

 
—

 
29,056

Purchase of loans and securities by consolidated VIE - RSO
—

 
(1,087,353
)
 
15,221

 
(1,072,132
)
Principal payments and proceeds from sales received by consolidated VIE - RSO
—

 
663,663

 
—

 
663,663

Proceeds from sale of management contract
9,095

 
—

 
—

 
9,095

Purchase of loans and investments
—

 
—

 
—

 
—

Proceeds from sale of loans and investments
3,779

 
—

 
—

 
3,779

Increase in restricted cash of consolidated VIE - RSO
—

 
31,014

 
—

 
31,014

Other investing activity of consolidated VIE
—

 
(45,533
)
 
—

 
(45,533
)
Net cash (used in) provided by investing activities
(50,896
)
 
(438,209
)
 
15,221

 
(473,884
)
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
 
 
 
As Previously Reported
 
RSO
 
Eliminations
 
As Restated
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
Increase in borrowings
106,043

 
—

 
—

 
106,043

Principal payments on borrowings
(55,778
)
 
—

 
—

 
(55,778
)
Net (repayments) borrowings of debt by consolidated VIE - RSO
—

 
358,029

 
—

 
358,029

Dividends paid
(2,246
)
 
—

 
—

 
(2,246
)
Dividends paid on common stock by consolidated VIE - RSO
—

 
(69,869
)
 
2,455

 
(67,414
)
Proceeds from issuance of common stock
1,914

 
—

 
—

 
1,914

Net proceeds from issuance of common stock by consolidated VIE - RSO
—

 
129,911

 
—

 
129,911

Repurchase of common stock
(241
)
 
—

 
—

 
(241
)
Proceeds from issuance of LEAF preferred stock
15,221

 
—

 
(15,221
)
 
—

Preferred stock dividends paid by LEAF to RSO
(305
)
 
—

 
305

 
—

Decrease in restricted cash
4,530

 
—

 
—

 
4,530

Other
(2,299
)
 
—

 
—

 
(2,299
)
Other financing activity of consolidated VIE - RSO
—

 
729

 
—

 
729

Net cash provided by (used in) financing activities
66,839

 
418,800

 
(12,461
)
 
473,178

CASH FLOWS FROM DISCONTINUED OPERATIONS:
 
 
 
 
—

 
 
Operating activities
(1,268
)
 
—

 
—

 
(1,268
)
Net cash used in discontinued operations
(1,268
)
 
—

 
—

 
(1,268
)
 
 
 
 
 
—

 
 
Increase in cash
13,212

 
—

 
—

 
13,212

Cash, beginning of year
11,243

 
—

 
—

 
11,243

Cash, end of year
$
24,455

 
$
—

 
$
—

 
$
24,455