RESTATEMENTS (Tables)

3 Months Ended

Dec. 31, 2012

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated balance sheet as of December 31, 2012 (in thousands) (unaudited):

				Restatement Adjustments
	As Restated			Eliminations			RSO		As Previously Reported
ASSETS
Cash	$	11,899		$	—		$	—	$	11,899
Restricted cash	638			—			—		638
Receivables	468			—			—		468
Receivables from managed entities and related parties, net	30,618			(8,067		)	—		38,685
Investments in real estate, net	18,041			—			—		18,041
Investment securities, at fair value	10,576			(14,957		)	—		25,533
Investments in unconsolidated loan manager	37,221			—			—		37,221
Investments in unconsolidated entities	13,156			—			—		13,156
Assets of consolidated VIE - RSO (see Note 19):
Cash and cash equivalents (including restricted cash)	179,390			—			179,390		—
Investments, at fair value	256,433			—			256,433		—
Loans	1,849,428			(1,570		)	1,850,998		—
Investments in real estate and unconsolidated entities	120,706			(93		)	120,799		—
Other assets	70,600			(31		)	70,631		—
Total assets of consolidated VIE-RSO	2,476,557			(1,694		)	2,478,251		—
Property and equipment, net	2,590			—			—		2,590
Deferred tax assets, net	28,274			(7,099		)	—		35,373
Other assets	6,726			—			—		6,726
Total assets	$	2,636,764		$	(31,817	)	$	2,478,251	$	190,330
LIABILITIES AND EQUITY
Liabilities:
Accrued expenses and other liabilities	$	21,559		$	3		$	—	$	21,556
Payables to managed entities and related parties	3,536			(31		)	—		3,567
Borrowings	21,040			(1,570		)	—		22,610
Liabilities of consolidated VIE - RSO (see Note 19):
Borrowings	1,785,600			—			1,785,600		—
Other liabilities	71,239			(8,067		)	79,306		—
Total liabilities - RSO	1,856,839			(8,067		)	1,864,906		—
Total liabilities	1,902,974			(9,665		)	1,864,906		47,733
Commitments and contingencies
Equity:
Preferred stock	—			—			—		—
Common stock	295			—			—		295
Additional paid-in capital	286,048			—			—		286,048
Accumulated deficit	(29,486		)	(2,349		)	—		(27,137		)
Treasury stock, at cost	(103,472		)	—			—		(103,472		)
Accumulated other comprehensive (loss) income	(2,197		)	11,219			—		(13,416		)
Total stockholders’ equity	151,188			8,870			—		142,318
Noncontrolling interests	279			—			—		279
Noncontrolling interests attributable to RSO	582,323			(31,022		)	613,345		—
Total equity	733,790			(22,152		)	613,345		142,597
	$	2,636,764		$	(31,817	)	$	2,478,251	$	190,330

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated balance sheet as of September 30, 2012 (in thousands) (unaudited):

				Restatement Adjustments
	As Restated			Eliminations			RSO		As Previously Reported
ASSETS
Cash	$	19,393		$	—		$	—	$	19,393
Restricted cash	642			—			—		642
Receivables	3,554			—			—		3,554
Receivables from managed entities and related parties, net	34,418			(6,633		)	—		41,051
Investments in real estate, net	19,149			—			—		19,149
Investment securities, at fair value	7,030			(15,502		)			22,532
Investment in unconsolidated loan manager	36,356			—			—		36,356
Investments in unconsolidated entities	12,993			—			—		12,993
Assets of consolidated VIE - RSO (see Note 19):
Cash and cash equivalents (including restricted cash)	169,450			—			169,450		—
Investments, at fair value	214,048			—			214,048		—
Loans	1,752,424			(1,677		)	1,754,101		—
Investments in real estate and unconsolidated entities	122,211			(76		)	122,287		—
Other assets	62,512			(31		)	62,543		—
Total assets of consolidated VIE - RSO	2,320,645			(1,784		)	2,322,429		—
Property and equipment, net	2,732			—			—		2,732
Deferred tax assets, net	27,770			(6,795		)	—		34,565
Other assets	3,776			—			—		3,776
Total assets	$	2,488,458		$	(30,714	)	$	2,322,429	$	196,743
LIABILITIES AND EQUITY
Liabilities:
Accrued expenses and other liabilities	$	23,042		$	—		$	—	$	23,042
Payables to managed entities and related parties	4,349			(31		)	—		4,380
Borrowings	21,343			(1,677		)	—		23,020
Liabilities of consolidated VIE - RSO (see Note 19):
Borrowings	1,670,010			—			1,670,010		—
Other liabilities	58,295			(6,633		)	64,928		—
Total liabilities - RSO	1,728,305			(6,633		)	1,734,938		—
Total liabilities	1,777,039			(8,341		)	1,734,938		50,442
Commitments and contingencies
Equity:
Preferred stock	—			—			—		—
Common stock	294			—			—		294
Additional paid-in capital	285,844			—			—		285,844
Accumulated deficit	(26,770		)	(2,262		)	—		(24,508		)
Treasury stock, at cost	(102,457		)	—			—		(102,457		)
Accumulated other comprehensive (loss) income	(2,226		)	10,854			—		(13,080		)
Total stockholders’ equity	154,685			8,592			—		146,093
Noncontrolling interests	208			—			—		208
Noncontrolling interests attributable to RSO	556,526			(30,965		)	587,491		—
Total equity	711,419			(22,373		)	587,491		146,301
	$	2,488,458		$	(30,714	)	$	2,322,429	$	196,743

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of operations for the three months ended December 31, 2012 (in thousands) (unaudited):

				Restatement Adjustments
	As Restated			Eliminations			RSO			As Previously Reported
REVENUES:
Real estate (includes revenues of $4,787 related to RSO)	$	13,154		$	—		$	—		$	13,154
Financial fund management (includes revenue of $(8) related to RSO)	2,675			—			—			2,675
Commercial finance	(124		)	—			—			(124		)
	15,705			—			—			15,705
Revenues of consolidated VIE - RSO (see Note 19)	33,041			—			33,041			—
Elimination of consolidated VIE revenues attributed to operating segments	(4,811		)	(4,811		)	—			—
Total revenues	43,935			(4,811		)	33,041			15,705
COSTS AND EXPENSES:
Real estate	7,998			—			—			7,998
Financial fund management	1,017			—			—			1,017
Commercial finance	(49		)	—			—			(49		)
General and administrative	2,228			(28		)	—			2,256
Provision for credit losses	5,152			—			—			5,152
Depreciation and amortization	492			—			—			492
	16,838			(28		)	—			16,866
Expenses of consolidated VIE - RSO (see Note 19)	24,098			(7,624		)	31,722			—
Elimination of consolidated VIE expenses attributed to operating segments	(4,762		)	(4,762		)	—			—
Total expenses	36,174			(12,414		)	31,722			16,866
OPERATING INCOME (LOSS)	7,761			7,603			1,319			(1,161		)
OTHER INCOME (EXPENSE):
Interest expense	(522		)	—			—			(522		)
Other income (expense), net	106			(482		)	—			588
	(416		)	(482		)	—			66
Other income of consolidated VIE - RSO (see Note 19)	13,733			—			13,733			—
Elimination of consolidated VIE income attributed to operating segments	32			32			—			—
Total other income (expense), net	13,349			(450		)	13,733			66
Income (loss) from continuing operations before taxes	21,110			7,153			15,052			(1,095		)
Income tax benefit	(241		)	—			—			(241		)
Income tax provision - RSO	7,624			7,624			—			—
Income (loss) from continuing operations	13,727			(471		)	15,052			(854		)
Discontinued operations	(6		)	—			—			(6		)
Net income (loss)	13,721			(471		)	15,052			(860		)
Net income attributable to noncontrolling interests	(587		)	—			—			(587		)
Net income attributable to noncontrolling interests - RSO	(14,668		)	(13,757		)	(911		)	—
Net (loss) income attributable to common shareholders	$	(1,534	)	$	(14,228	)	$	14,141		$	(1,447	)
Amounts attributable to common shareholders:
Loss from continuing operations	$	(1,528	)	$	(14,228	)	$	14,141		$	(1,441	)
Discontinued operations	(6		)	—			—			(6		)
Net loss	$	(1,534	)	$	(14,228	)	$	14,141		$	(1,447	)
Basic and diluted loss per common share:
Loss from continuing operations	$	(0.08	)							$	(0.07	)
Discontinued operations	—									—
Net loss	$	(0.08	)							$	(0.07	)
Weighted average shares outstanding	20,077									20,077

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of operations for the three months ended December 31, 2011 (in thousands) (unaudited):

				Restatement Adjustments
	As Restated			Eliminations			RSO		As Previously Reported
REVENUES:
Real estate (includes revenues of $1,498 related to RSO)	$	8,666		$	—		$	—	$	8,666
Financial fund management (includes revenues of $2,522 related to RSO)	6,579			—			—		6,579
Commercial finance	3,419			—			—		3,419
	18,664			—			—		18,664
Revenues of consolidated VIE - RSO (see Note 19)	25,211			—			25,211		—
Elimination of consolidated VIE revenues attributed to operating segments	(4,501		)	(4,501		)	—		—
Total revenues	39,374			(4,501		)	25,211		18,664
COSTS AND EXPENSES:
Real estate	7,192			—			—		7,192
Financial fund management	5,804			—			—		5,804
Commercial finance	1,963			—			—		1,963
General and administrative	2,896			—			—		2,896
Gain on sale of leases and loans	(37		)	—			—		(37		)
Provision for credit losses	2,250			—			—		2,250
Depreciation and amortization	2,061			—			—		2,061
	22,129			—			—		22,129
Expenses of consolidated VIE - RSO (see Note 19)	17,031			(7,767		)	24,798		—
Eliminations of consolidated VIE expenses attributed to operating segments	(3,771		)	(3,771		)	—		—
Total expenses	35,389			(11,538		)	24,798		22,129
OPERATING INCOME (LOSS)	3,985			7,037			413		(3,465		)
OTHER INCOME (EXPENSE):
Gain on deconsolidation and sale of subsidiaries	8,749			—			—		8,749
Loss on extinguishment of debt	(2,190		)	—			—		(2,190		)
Gain on sale of investment securities, net	58			—			—		58
Interest expense	(2,974		)	—			—		(2,974		)
Other (expense) income, net	(72		)	(631		)	—		559
	3,571			(631		)	—		4,202
Elimination of consolidated VIE income attributed to operating segments	126			126			—		—
Total other income (expense), net	3,697			(505		)	—		4,202
Income from continuing operations before taxes	7,682			6,532			413		737
Income tax provision	154			—			—		154
Income tax provision - RSO	7,767			7,767			—		—
(Loss) income from continuing operations	(239		)	(1,235		)	413		583
Discontinued operations	(20		)	—			—		(20		)
Net (loss) income	(259		)	(1,235		)	413		563
Net loss (income) attributable to noncontrolling interests	193			571			—		(378		)
Net income attributable to noncontrolling interests - RSO	(367		)	(367		)	—		—
Net (loss) income attributable to common shareholders	$	(433	)	$	(1,031	)	$	413	$	185

				Restatement Adjustments
	As Restated			Eliminations			RSO		As Previously Reported
Amounts attributable to common shareholders:
Loss from continuing operations	$	(413	)	$	(1,031	)	$	413	$	205
Discontinued operations	(20		)	—			—		(20		)
Net loss	$	(433	)	$	(1,031	)	$	413	$	185
Basic and diluted loss per common share:
Loss from continuing operations	$	(0.02	)						$	0.01
Discontinued operations	—								—
Net loss	$	(0.02	)						$	0.01
Weighted average shares outstanding	19,641								19,641

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of comprehensive loss for the three months ended December 31, 2012 (in thousands) (unaudited):

				Restatement Adjustments
	As Restated			Eliminations			RSO			As Previously Reported
Net income (loss)	$	13,721		$	(471	)	$	15,052		$	(860	)
Other comprehensive (loss) income:
Unrealized gain (loss) on investment securities available for sale, net of tax	6			412			—			(406		)
Minimum pension liability adjustments, net of tax	(3		)	(3		)	—			—
Minimum pension liability - reclassification for losses realized, net of tax	18			(44		)	—			62
Unrealized gain on hedging contracts, net	8			—			—			8
Subtotal activity related to consolidated RAI	29			365			—			(336		)
Activity related to consolidated VIE - RSO:
Reclassification adjustments for gain included in       net income	705			—			705			—
Unrealized gain on available-for-sale      securities, net	3,554			—			3,554			—
Reclassification adjustments associated with    unrealized loss from interest rate hedges    included in net income	57			—			57			—
Unrealized loss on derivatives, net	1,509			—			1,509			—
Subtotal activity related to consolidated VIE - RSO	5,825			—			5,825			—
Subtotal - other comprehensive income (loss)	5,854			365			5,825			(336		)
Comprehensive income (loss)	19,575			(106		)	20,877			(1,196		)
Comprehensive income attributable to noncontrolling interests	(21,080		)	(19,582		)	(911		)	(587		)
Comprehensive (loss) income attributable to common shareholders	$	(1,505	)	$	(19,688	)	$	19,966		$	(1,783	)

The following sets forth the effect of the restatement on the applicable line items in the Company's consolidated statement of comprehensive loss for the three months ended December 31, 2011 (in thousands) (unaudited):

				Restatement Adjustments
	As Restated			Eliminations			RSO			As Previously Reported
Net (loss) income	$	(259	)	$	(1,235	)	$	413		$	563
Other comprehensive income (loss) :
Unrealized gain (loss) on investment securities available for sale, net of tax	46			(939		)	—			985
Minimum pension liability - reclassification for loss realized, net of tax of $37 and $36	47			—			—			47
Unrealized (loss) gain on hedging contracts, net	(129		)	—			—			(129		)
Deconsolidation of LEAF - unrealized loss on hedging contracts net of tax	255			—			—			255
	126			—			—			126
Subtotal - activity related to consolidated RAI	219			(939		)	—			1,158
Activity related to consolidated VIE - RSO:
Reclassification adjustments for gain included in       net income	(2,436		)	—			(2,436		)	—
Unrealized gain on available-for-sale      securities, net	(1,933		)	—			(1,933		)	—
Reclassification adjustments associated with    unrealized loss from interest rate hedges    included in net income	76			—			76			—
Unrealized loss on derivatives, net	3,007			—			3,007			—
Subtotal - activity related to consolidated VIE - RSO	(1,286		)	—			(1,286		)	—
Subtotal - other comprehensive (loss) income	(1,067		)	(939		)	(1,286		)	1,158
Comprehensive (loss) income	(1,326		)	(2,174		)	(873		)	1,721
Comprehensive loss (income) attributable to noncontrolling interests	1,063			1,490			—			(427		)
Comprehensive (loss) income attributable to common shareholders	$	(263	)	$	(684	)	$	(873	)	$	1,294

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 three months ended December 31, 2012 (in thousands) (unaudited):

				Restatement Adjustments
	As Restated			Eliminations			RSO			As Previously Reported
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	13,721		$	(471	)	$	15,052		$	(860	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	550			—			—			550
Provision for credit losses	5,152			—			—			5,152
Unrealized gain on trading securities	(164		)	—			—			(164		)
Equity in earnings of unconsolidated entities	(1,201		)	—			—			(1,201		)
Distributions from unconsolidated entities	1,011			—			—			1,011
Gain on sale of loans and investment securities, net	(307		)	—			—			(307		)
Gain on sale of assets	(831		)	—			—			(831		)
Deferred income tax benefit	(277		)	(36		)	—			(241		)
Equity-based compensation issued	205			—			—			205
Equity-based compensation received	—			206			—			(206		)
Trading securities purchases and sales, net	(1,828		)	—			—			(1,828		)
Income from discontinued operations	6			—			—			6
Changes in operating assets and liabilities	(4,710		)	(44		)	—			(4,666		)
Change in cash attributable to operations of consolidated VIE - RSO	(1,972		)	(206		)	(1,766		)	—
Net cash provided by (used in) operating activities	9,355			(551		)	13,286			(3,380		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(80		)	—			—			(80		)
Purchase of commercial finance assets	712			—			—			712
Investments in real estate and unconsolidated entities	(1,012		)	—			—			(1,012		)
Principal payments received on leases and loans	3			—			—			3
Purchase of loans and securities by consolidated VIE - RSO	(219,936		)	—			(219,936		)	—
Principal payments and proceeds from sales received by consolidated VIE - RSO	280,724			—			280,724			—
Purchase of loans and investments	(1,323		)	—			—			(1,323		)
Increase in restricted cash - consolidated VIE RSO	(34,657		)	—			(34,657		)	—
Other investing activity of consolidated VIE - RSO	(1,696		)	17			(1,713		)	—
Net cash provided by (used in) in investing activities	22,735			17			24,418			(1,700		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on borrowings	(229		)	—			—			(229		)
Net repayments of debt by consolidated VIE - RSO	(79,130		)	—			(79,130		)	—
Dividends paid	(593		)	—			—			(593		)
Dividends paid on common stock by consolidated VIE - RSO	(19,285		)	534			(19,819		)	—
Net proceeds from issuance of common stock by consolidated VIE - RSO	48,719			—			48,719			—
Repurchase of common stock	(1,078		)	—			—			(1,078		)
Decrease in restricted cash	3			—			—			3
Other	(150		)	—			—			(150		)
Other financing activity of consolidated VIE - RSO	12,526			—			12,526			—
Net cash (used in) provided by financing activities	(39,217		)	534			(37,704		)	(2,047		)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(367		)	—			—			(367		)
Net cash used in discontinued operations	(367		)	—			—			(367		)
Decrease in cash	(7,494		)	—			—			(7,494		)
Cash, beginning of period	19,393			—			—			19,393
Cash, end of period	$	11,899		$	—		$	—		$	11,899

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 three months ended December 31, 2011 (in thousands) (unaudited):

				Restatement Adjustment
	As Restated			Eliminations			RSO			As Previously Reported
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(259	)	$	(1,235	)	$	413		$	563
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	3,087			—			—			3,087
Provision for credit losses	2,250			—			—			2,250
Equity in earnings of unconsolidated entities	(557		)	—			—			(557		)
Distributions from unconsolidated entities	1,163			—			—			1,163
Gain on sale of leases and loans	(37		)	—			—			(37		)
Gain on sale of loans and investment securities, net	(58		)	—			—			(58		)
Gain on sale of subsidiary	(8,749		)	—			—			(8,749		)
Loss on extinguishment of debt	2,190			—			—			2,190
Deferred income tax provision	154			—			—			154
Equity-based compensation issued	498			—			—			498
Loss from discontinued operations	20			—			—			20
Changes in operating assets and liabilities	(1,432		)	—			—			(1,432		)
Change in cash attributable to operations of consolidated VIE - RSO	(2,053		)	383			(2,436		)	—
Net cash used in operating activities	(3,783		)	(852		)	(2,023		)	(908		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(106		)	—			—			(106		)
Payments received on real estate loans and real estate	1,550			—			—			1,550
Investments in real estate and unconsolidated entities	(127		)	—			—			(127		)
Purchase of commercial finance assets	(18,483		)	—			—			(18,483		)
Principal payments received on leases and loans	9,031			—			—			9,031
Purchase of loans and securities by consolidated VIE - RSO	(483,006		)	—			(483,006		)	—
Principal payments and proceeds from sales received by consolidated VIE - RSO	174,581			—			174,581			—
Cash divested on deconsolidation of LEAF	(2,284		)	—			—			(2,284		)
Purchase of loans and investments	(600		)	—			—			(600		)
Proceeds from sale of loans and investment securities	207			—			—			207
Increase in restricted cash - consolidated VIE RSO	8,680			—			8,680			—
Other investing activity of consolidated VIE - RSO	(5,392		)	33			(5,425		)	—
Net cash (used in) provided by investing activities	(315,949		)	33			(305,170		)	(10,812		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings	128,845			—			—			128,845
Principal payments on borrowings	(123,823		)	—			—			(123,823		)
Net borrowings (repayments) of debt by consolidated VIE - RSO	307,618			—			307,618			—
Dividends paid	(569		)	—			—			(569		)
Dividends paid on common stock by consolidated VIE - RSO	(18,526		)	631			(19,157		)	—
Net proceeds from issuance of equity shares of consolidated VIE - RSO	17,462			—			17,462			—
Repurchase of common stock	(939		)	—			—			(939		)
Decrease in restricted cash	(633		)	—			—			(633		)
Other	(2,250		)	188			—			(2,438		)
Other financing activity of consolidated VIE - RSO	1,270			—			1,270			—
Net cash provided by financing activities	308,455			819			307,193			443
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(375		)	—			—			(375		)
Net cash used in discontinued operations	(375		)	—			—			(375		)
Decrease in cash	(11,652		)	—			—			(11,652		)
Cash, beginning of period	24,455			—			—			24,455
Cash, end of period	$	12,803		$	—		$	—		$	12,803