XML 102 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
CONSOLIDATING FINANCIAL INFORMATION
6 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
CONSOLIDATING FINANCIAL INFORMATION
NOTE 3 - CONSOLIDATING FINANCIAL INFORMATION
The following table presents the consolidating balance sheet as of June 30, 2015 (in thousands):
 
RAI
 
RSO
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
Cash
$
23,760

 
$
—

 
$
—

 
$
23,760

Restricted cash
886

 
—

 
—

 
886

Receivables
1,181

 
—

 
(120
)
 
1,061

Receivables from managed entities and related parties, net
28,874

 
—

 
(2,354
)
 
26,520

Investments in real estate, net
17,040

 
—

 
—

 
17,040

Investment securities, at fair value
21,944

 
—

 
(11,074
)
 
10,870

Investments in unconsolidated loan manager
36,526

 
—

 
—

 
36,526

Investments in unconsolidated entities
24,883

 
—

 
(7,999
)
 
16,884

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

 
190,765

 
—

 
190,765

Investments, at fair value
—

 
286,108

 
—

 
286,108

Loans
—

 
2,154,007

 
—

 
2,154,007

Investments in real estate and unconsolidated entities
—

 
56,330

 
—

 
56,330

Other assets-RSO
—

 
87,014

 
—

 
87,014

Total assets of consolidated VIE-RSO
—

 
2,774,224

 
—

 
2,774,224

Property and equipment, net
5,622

 
—

 
—

 
5,622

Deferred tax assets, net
31,954

 
—

 
(11,034
)
 
20,920

Other assets
8,392

 
—

 
—

 
8,392

Total assets
$
201,062

 
$
2,774,224

 
$
(32,581
)
 
$
2,942,705

 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Accrued expenses and other liabilities
$
21,241

 
$
—

 
$
—

 
$
21,241

Payables to managed entities and related parties
4,748

 
—

 
—

 
4,748

Borrowings
21,029

 
—

 
—

 
21,029

Liabilities of consolidated VIE-RSO:
 
 
 
 
 
 
 
     Borrowings
—

 
1,827,461

 
332

 
1,827,793

     Other liabilities
—

 
54,114

 
(2,474
)
 
51,640

Total liabilities of consolidated VIE-RSO
—

 
1,881,575

 
(2,142
)
 
1,879,433

Total liabilities
47,018

 
1,881,575

 
(2,142
)
 
1,926,451

Commitments and contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
Preferred stock
—

 
—

 
—

 
—

Common stock
338

 
—

 
—

 
338

Additional paid-in capital
309,736

 
—

 
—

 
309,736

Accumulated deficit
(18,369
)
 
—

 
(9,274
)
 
(27,643
)
Treasury stock, at cost
(124,736
)
 
—

 
—

 
(124,736
)
Accumulated other comprehensive loss
(13,301
)
 
—

 
12,386

 
(915
)
Total stockholders’ equity
153,668

 
—

 
3,112

 
156,780

Noncontrolling interests
376

 
—

 
—

 
376

Noncontrolling interests attributable to consolidated VIE-RSO
—

 
892,649

 
(33,551
)
 
859,098

Total equity
154,044

 
892,649

 
(30,439
)
 
1,016,254

Total liabilities and equity
$
201,062

 
$
2,774,224

 
$
(32,581
)
 
$
2,942,705



The following table presents the consolidating statement of operations for the three months ended June 30, 2015 (in thousands):
 
RAI
 
RSO
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
Real estate
$
21,116

 
$
—

 
$
—

 
$
21,116

Financial fund management
4,781

 
—

 
—

 
4,781

Commercial finance
2

 
—

 
—

 
2

 
25,899

 
—

 
—

 
25,899

Revenues from consolidated VIE-RSO
—

 
24,201

 
—

 
24,201

Elimination of consolidated VIE-RSO revenues attributed to operating segments
—

 
—

 
(4,104
)
 
(4,104
)
Total revenues
25,899

 
24,201

 
(4,104
)
 
45,996

COSTS AND EXPENSES:
 
 
 
 
 
 
 
Real estate
12,082

 
—

 
—

 
12,082

Financial fund management
3,154

 
—

 
—

 
3,154

Commercial finance
458

 
—

 
—

 
458

General and administrative
4,181

 
—

 
—

 
4,181

Provision for credit losses
276

 
—

 
—

 
276

Depreciation and amortization
515

 
—

 
—

 
515

 
20,666

 
—

 
—

 
20,666

Expenses of consolidated VIE-RSO
—

 
54,535

 
—

 
54,535

Elimination of consolidated VIE-RSO expenses attributed to operating segments
—

 
—

 
(3,368
)
 
(3,368
)
Total expenses
20,666

 
54,535

 
(3,368
)
 
71,833

OPERATING INCOME (LOSS)
5,233

 
(30,334
)
 
(736
)
 
(25,837
)
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Impairment on investment in unconsolidated entities
(4,346
)
 
—

 
—

 
(4,346
)
Interest expense
(455
)
 
—

 
—

 
(455
)
Other income (expense), net
689

 
—

 
(458
)
 
231

Other income (expense), net, from consolidated VIE-RSO
—

 
10,537

 
—

 
10,537

Elimination of consolidated VIE-RSO other income, net
—

 
—

 
4

 
4

Total other income (expense)
(4,112
)
 
10,537

 
(454
)
 
5,971

Income (loss) from continuing operations before taxes
1,121

 
(19,797
)
 
(1,190
)
 
(19,866
)
Income tax provision (benefit)
857

 
2,918

 
—

 
3,775

Net income (loss)
264

 
(22,715
)
 
(1,190
)
 
(23,641
)
Net (income) loss attributable to noncontrolling interests
(63
)
 
—

 
—

 
(63
)
Net (income) loss attributable to noncontrolling interests-RSO
—

 
(8,296
)
 
30,348

 
22,052

Net income (loss) attributable to common shareholders
$
201

 
$
(31,011
)
 
$
29,158

 
$
(1,652
)

    
    

The following table presents the consolidating statement of operations for the three months ended June 30, 2014 (in thousands):
 
RAI
 
RSO
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
Real estate
$
13,448

 
$
—

 
$
—

 
$
13,448

Financial fund management
8,141

 
—

 
—

 
8,141

Commercial finance
(42
)
 
—

 
—

 
(42
)
 
21,547

 
—

 
—

 
21,547

Revenues from consolidated VIE-RSO
—

 
23,828

 
—

 
23,828

Elimination of consolidated VIE-RSO revenues attributed to operating segments
—

 
—

 
(3,040
)
 
(3,040
)
Total revenues
21,547

 
23,828

 
(3,040
)
 
42,335

COSTS AND EXPENSES:
 
 
 
 
 
 
 
Real estate
9,105

 
—

 
—

 
9,105

Financial fund management
2,779

 
—

 
—

 
2,779

Commercial finance
123

 
—

 
—

 
123

General and administrative
2,729

 
—

 
—

 
2,729

Provision for credit losses
1,575

 
—

 
—

 
1,575

Depreciation and amortization
465

 
—

 
—

 
465

Total other income (expense)
16,776

 
—

 
—

 
16,776

Expenses of consolidated VIE-RSO
—

 
16,853

 

 
16,853

Elimination of consolidated VIE-RSO expenses attributed to operating segments
—

 
—

 
(3,053
)
 
(3,053
)
Total expenses
16,776

 
16,853

 
(3,053
)
 
30,576

OPERATING INCOME (LOSS)
4,771

 
6,975

 
13

 
11,759

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Gain (loss) on sale of investment securities, net
370

 
—

 
—

 
370

Interest expense
(497
)
 
—

 
—

 
(497
)
Other income (expense), net
590

 
—

 
(572
)
 
18

Other income (expense), net, from consolidated VIE-RSO
—

 
10,281

 
—

 
10,281

Elimination of consolidated VIE-RSO other income, net
—

 
—

 
11

 
11

 
463

 
10,281

 
(561
)
 
10,183

Income (loss) from continuing operations before taxes
5,234

 
17,256

 
(548
)
 
21,942

Income tax provision (benefit)
2,181

 
(446
)
 
—

 
1,735

Net income (loss)
3,053

 
17,702

 
(548
)
 
20,207

Income (loss) from continuing operations before taxes
(84
)
 
—

 
—

 
(84
)
Net (income) loss attributable to noncontrolling interests-RSO
—

 
(3,025
)
 
(14,380
)
 
(17,405
)
Net income (loss) attributable to common shareholders
$
2,969

 
$
14,677

 
$
(14,928
)
 
$
2,718



The following table presents the consolidating statement of operations for the six months ended June 30, 2015 (in thousands):
 
RAI
 
RSO
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
Real estate
$
38,082

 
$
—

 
$
—

 
$
38,082

Financial fund management
9,918

 
—

 
—

 
9,918

Commercial finance
—

 
—

 
—

 
—

 
48,000

 
—

 
—

 
48,000

Revenues from consolidated VIE-RSO
—

 
48,562

 
—

 
48,562

Elimination of consolidated VIE-RSO revenues attributed to operating segments
—

 
—

 
(8,377
)
 
(8,377
)
Total revenues
48,000

 
48,562

 
(8,377
)
 
88,185

COSTS AND EXPENSES:
 
 
 
 
 
 
 
Real estate
23,581

 
—

 
—

 
23,581

Financial fund management
6,144

 
—

 
—

 
6,144

Commercial finance
1,037

 
—

 
—

 
1,037

General and administrative
7,478

 
—

 
—

 
7,478

Provision for credit losses
678

 
—

 
—

 
678

Depreciation and amortization
972

 
—

 
—

 
972

Total other income (expense)
39,890

 
—

 
—

 
39,890

Expenses of consolidated VIE-RSO
—

 
75,595

 
—

 
75,595

Elimination of consolidated VIE-RSO expenses attributed to operating segments
—

 
—

 
(6,736
)
 
(6,736
)
Total expenses
39,890

 
75,595

 
(6,736
)
 
108,749

OPERATING INCOME (LOSS)
8,110

 
(27,033
)
 
(1,641
)
 
(20,564
)
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Impairment on investment in unconsolidated entities
(4,346
)
 
—

 
—

 
(4,346
)
Interest expense
(876
)
 
—

 
—

 
(876
)
Other income (expense), net
1,003

 
—

 
(936
)
 
67

Other income (expense), net, from consolidated VIE-RSO
—

 
27,053

 
—

 
27,053

Elimination of consolidated VIE-RSO other income, net
—

 
—

 
15

 
15

 
(4,219
)
 
27,053

 
(921
)
 
21,913

Income (loss) from continuing operations before taxes
3,891

 
20

 
(2,562
)
 
1,349

Income tax provision (benefit)
2,101

 
4,765

 
—

 
6,866

Net income (loss)
1,790

 
(4,745
)
 
(2,562
)
 
(5,517
)
Net (income) loss attributable to noncontrolling interests
(55
)
 
—

 
—

 
(55
)
Net (income) loss attributable to noncontrolling interests-RSO
—

 
(16,864
)
 
21,121

 
4,257

Net income (loss) attributable to common shareholders
$
1,735

 
$
(21,609
)
 
$
18,559

 
$
(1,315
)



    
The following table presents the consolidating statement of operations for the six months ended June 30, 2014 (in thousands):
 
RAI
 
RSO
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
Real estate
$
26,723

 
$
—

 
$
—

 
$
26,723

Financial fund management
15,216

 
—

 
—

 
15,216

Commercial finance
(141
)
 
—

 
—

 
(141
)
 
41,798

 
—

 
—

 
41,798

Revenues from consolidated VIE-RSO
—

 
49,073

 
—

 
49,073

Elimination of consolidated VIE-RSO revenues attributed to operating segments
—

 
—

 
(5,920
)
 
(5,920
)
Total revenues
41,798

 
49,073

 
(5,920
)
 
84,951

COSTS AND EXPENSES:
 
 
 
 
 
 
 
Real estate
17,980

 
—

 
—

 
17,980

Financial fund management
7,168

 
—

 
—

 
7,168

Commercial finance
226

 
—

 
—

 
226

General and administrative
5,883

 
—

 
—

 
5,883

Provision for credit losses
2,783

 
—

 
—

 
2,783

Depreciation and amortization
916

 
—

 
—

 
916

Total other income (expense)
34,956

 
—

 
—

 
34,956

Expenses of consolidated VIE-RSO
—

 
28,138

 
—

 
28,138

Elimination of consolidated VIE-RSO expenses attributed to operating segments
—

 
—

 
(5,872
)
 
(5,872
)
Total expenses
34,956

 
28,138

 
(5,872
)
 
57,222

OPERATING INCOME (LOSS)
6,842

 
20,935

 
(48
)
 
27,729

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Gain on sale of investment securities, net
370

 
—

 
—

 
370

Interest expense
(980
)
 
—

 
—

 
(980
)
Other income (expense), net
1,327

 
—

 
(1,144
)
 
183

Other income (expense), net, from consolidated VIE-RSO
—

 
13,797

 
—

 
13,797

Elimination of consolidated VIE-RSO other income, net
—

 
—

 
29

 
29

 
717

 
13,797

 
(1,115
)
 
13,399

Income (loss) from continuing operations before taxes
7,559

 
34,732

 
(1,163
)
 
41,128

Income tax provision (benefit)
3,250

 
(430
)
 
—

 
2,820

Net income (loss)
4,309

 
35,162

 
(1,163
)
 
38,308

Net (income) loss attributable to noncontrolling interests
(44
)
 
—

 
—

 
(44
)
Net (income) loss attributable to noncontrolling interests-RSO
—

 
(5,369
)
 
(29,187
)
 
(34,556
)
Net income (loss) attributable to common shareholders
$
4,265

 
$
29,793

 
$
(30,350
)
 
$
3,708


    

    
The following table presents the consolidating statement of cash flows for the six months ended June 30, 2015 (in thousands):
 
RAI
 
RSO
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
Net income (loss)
$
1,790

 
$
(4,745
)
 
$
(2,562
)
 
$
(5,517
)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
1,004

 
—

 
—

 
1,004

Provision for credit losses
678

 
—

 
—

 
678

Unrealized gain (loss) on trading securities
(42
)
 
—

 
—

 
(42
)
Equity in (earnings) losses of unconsolidated entities
(6,296
)
 
—

 
1,555

 
(4,741
)
Distributions from unconsolidated entities
4,998

 
—

 
—

 
4,998

Impairment on investment in unconsolidated entities
4,346

 
—

 
—

 
4,346

(Gain) loss on sales of leases and loans
(5
)
 
—

 
—

 
(5
)
Deferred income tax provision
2,052

 
—

 
—

 
2,052

Equity-based compensation issued
1,604

 
—

 
—

 
1,604

Foreign currency adjustments
284

 
—

 
—

 
284

(Gain) loss on trading securities
15

 
—

 
—

 
15

Trading securities purchases and sales, net
221

 
—

 
—

 
221

Changes in operating assets and liabilities
153

 
—

 
—

 
153

Adjustments to reconcile net income and operating cash flows to net income of consolidated VIE-RSO
—

 
(17,512
)
 
(29
)
 
(17,541
)
Net cash provided by (used in) operating activities
10,802

 
(22,257
)
 
(1,036
)
 
(12,491
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
Capital expenditures
(352
)
 
—

 
—

 
(352
)
Principal payments on leases and loans
5

 
—

 
—

 
5

Investments in real estate and unconsolidated real estate entities
(3,295
)
 
—

 
—

 
(3,295
)
Purchase of loans and securities by consolidated VIE-RSO
—

 
(447,760
)
 
—

 
(447,760
)
Principal payments and proceeds from sales of loans and securities by consolidated VIE-RSO
—

 
390,488

 
—

 
390,488

Purchase of loans and investments
(2,687
)
 
—

 
—

 
(2,687
)
Decrease (increase) in restricted cash of consolidated VIE-RSO
—

 
57,089

 
—

 
57,089

Other investing activity of consolidated VIE-RSO
—

 
4,806

 
(821
)
 
3,985

Net cash provided by (used) in investing activities
(6,329
)
 
4,623

 
(821
)
 
(2,527
)
 
RAI
 
RSO
 
Eliminations
 
Consolidated
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 

 
 
Principal payments on borrowings
(821
)
 
—

 
821

 
—

Net borrowings by consolidated VIE-RSO
—

 
84,283

 
—

 
84,283

Dividends paid
(2,622
)
 
—

 
—

 
(2,622
)
Dividends paid on common stock by consolidated VIE-RSO
—

 
(48,006
)
 
936

 
(47,070
)
Proceeds from issuance of common stock
1

 
—

 
—

 
1

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

 
3,159

 
—

 
3,159

Other financing activity of consolidated VIE - RSO
—

 
(21,802
)
 
100

 
(21,702
)
Net cash (used in) provided by financing activities
(8,255
)
 
17,634

 
1,857

 
11,236

 
 
 
 
 
 
 
 
Decrease in cash
(3,782
)
 
—

 
—

 
(3,782
)
Cash, beginning of year
27,542

 
—

 
—

 
27,542

Cash, end of period
$
23,760

 
$
—

 
$
—

 
$
23,760