19. Business Segment Reporting

Upon consummation of the Merger with Nationstar, the Company has identified four reportable segments: Servicing, Originations, Xome and Corporate and other. The Company's segments are based upon the Company's organizational structure, which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on the actual cost of services performed based on direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Facility costs are allocated to individual segments based on cost per headcount for specific facilities utilized. Group insurance costs are allocated to individual segments based on global cost per headcount. Non-Allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to our operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties.

The following tables present financial information by segment.



	Successor
	For the Period August 1 - September 30, 2018
	Servicing			Originations			Xome			Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	183		$	10		$	73		$	(7	)	$	259		$	—		$	259
Net gain on mortgage loans held for sale	—			76			—			7			83			—			83
Total revenues	183			86			73			—			342			—			342
Total Expenses	104			66			71			—			241			34			275
Other income (expenses)
Interest income	78			10			—			—			88			2			90
Interest expense	(74		)	(10		)	(1		)	—			(85		)	(37		)	(122		)
Other	5			1			—			—			6			—			6
Total Other Income (expenses), net	9			1			(1		)	—			9			(35		)	(26		)
Income (loss) before income tax expense (benefit)	$	88		$	21		$	1		$	—		$	110		$	(69	)	$	41
Depreciation and amortization for property and equipment and intangible assets	$	4		$	2		$	2		$	—		$	8		$	7		$	15
Total assets	$	14,166		$	4,892		$	457		$	(3,532	)	$	15,983		$	1,745		$	17,728



	Predecessor
	For the Period July 1 - July 31, 2018
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	97		$	4		$	22	$	(3	)	$	120		$	—		$	120
Net gain on mortgage loans held for sale	—			41			—		3			44			—			44
Total revenues	97			45			22		—			164			—			164
Total Expenses	126			34			19		—			179			63			242
Other income (expenses)
Interest income	41			6			—		—			47			1			48
Interest expense	(35		)	(6		)	—		—			(41		)	(12		)	(53		)
Other	—			—			—		—			—			—			—
Total Other Income (expenses), net	6			—			—		—			6			(11		)	(5		)
Income (loss) before income tax expense (benefit)	$	(23	)	$	11		$	3	$	—		$	(9	)	$	(74	)	$	(83	)
Depreciation and amortization for property and equipment and intangible assets	$	2		$	1		$	1	$	—		$	4		$	—		$	4
Total assets	$	14,578		$	4,701		$	425	$	(3,591	)	$	16,113		$	913		$	17,026



	Predecessor
	Three Months Ended September 30, 2017
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	191		$	16		$	65	$	(20	)	$	252		$	—		$	252
Net gain on mortgage loans held for sale	—			134			—		20			154			—			154
Total revenues	191			150			65		—			406			—			406
Total Expenses	185			106			54		—			345			23			368
Other income (expenses)
Interest income	143			14			—		—			157			2			159
Interest expense	(132		)	(13		)	—		—			(145		)	(38		)	(183		)
Other	(2		)	—			—		—			(2		)	—			(2		)
Total Other Income (expenses), net	9			1			—		—			10			(36		)	(26		)
Income (loss) before income tax expense (benefit)	$	15		$	45		$	11	$	—		$	71		$	(59	)	$	12
Depreciation and amortization for property and equipment and intangible assets	$	6		$	3		$	3	$	—		$	12		$	3		$	15
Total assets	$	15,147		$	4,644		$	382	$	(2,948	)	$	17,225		$	779		$	18,004



	Predecessor
	For the Period January 1 - July 31, 2018
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	740		$	36		$	149	$	(25	)	$	900		$	1		$	901
Net gain on mortgage loans held for sale	—			270			—		25			295			—			295
Total revenues	740			306			149		—			1,195			1			1,196
Total expenses	474			245			123		—			842			103			945
Other income (expenses)
Interest income	288			38			—		—			326			7			333
Interest expense	(268		)	(37		)	—		—			(305		)	(83		)	(388		)
Other	(1		)	—			9		—			8			(2		)	6
Total other income (expenses), net	19			1			9		—			29			(78		)	(49		)
Income (loss) before income tax expense (benefit)	$	285		$	62		$	35	$	—		$	382		$	(180	)	$	202
Depreciation and amortization for property and equipment and intangible assets	$	15		$	7		$	7	$	—		$	29		$	4		$	33
Total assets	$	14,578		$	4,701		$	425	$	(3,591	)	$	16,113		$	913		$	17,026



	Predecessor
	Nine Months Ended September 30, 2017
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	537		$	47		$	226	$	(63	)	$	747		$	1		$	748
Net gain on mortgage loans held for sale	—			402			—		63			465			—			465
Total revenues	537			449			226		—			1,212			1			1,213
Total expenses	513			326			193		—			1,032			72			1,104
Other income (expenses)
Interest income	386			39			—		—			425			12			437
Interest expense	(409		)	(39		)	—		—			(448		)	(116		)	(564		)
Other	(2		)	—			8		—			6			(2		)	4
Total other income (expenses), net	(25		)	—			8		—			(17		)	(106		)	(123		)
Income (loss) before income tax expense (benefit)	$	(1	)	$	123		$	41	$	—		$	163		$	(177	)	$	(14	)
Depreciation and amortization for property and equipment and intangible assets	$	16		$	8		$	10	$	—		$	34		$	10		$	44
Total assets	$	15,147		$	4,644		$	382	$	(2,948	)	$	17,225		$	779		$	18,004