Segment Reporting

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

Note 15. Segment Reporting

We operate in two reportable segments. We have an internal information system that produces performance and asset data for our two segments along service lines.

The Balance Sheet Investment segment includes our consolidated portfolio of interest earning assets and the financing thereof. The Investment Management segment includes the investment management activities of our wholly-owned investment management subsidiary, CT Investment Management Co., LLC, or CTIMCO, and its subsidiaries, as well as our co-investments in investment management vehicles. CTIMCO is a taxable REIT subsidiary and serves as the investment manager of Capital Trust, Inc., all of our investment management vehicles and CT CDOs, and serves as senior servicer and special servicer for certain of our investments and for third-parties.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the nine months ended, and as of, September 30, 2012 (in thousands):

	Balance Sheet			Investment		Inter-Segment
	Investment			Management		Activities			Total
Income from loans and other investments:
Interest and related income		$28,423			$—		$—			$28,423
Less: Interest and related expenses		33,902			—		—			33,902
Income from loans and other investments, net		(5,479	)		—		—			(5,479	)
Other revenues:
Management fees from affiliates		—			6,597		(1,856	)		4,741
Servicing fees		—			6,991		(1,400	)		5,591
Total other revenues		—			13,588		(3,256	)		10,332
Other expenses
General and administrative		6,551			11,498		(1,856	)		16,193
Servicing fees expense		1,400			—		(1,400	)		—
Total other expenses		7,951			11,498		(3,256	)		16,193
Total other-than-temporary impairments of securities		—			—		—			—
Portion of other-than-temporary impairments of securities recognized in other comprehensive income		(160	)		—		—			(160	)
Net impairments recognized in earnings		(160	)		—		—			(160	)
Recovery of provision for loan losses		2,819			—		—			2,819
Fair value adjustment on investment in CT Legacy Asset		19,645			—		—			19,645
Gain on deconsolidation of subsidiary		146,380			—		—			146,380
Income from equity investments in unconsolidated subsidiaries		—			1,312		—			1,312
Income before income taxes		155,254			3,402		—			158,656
Income tax provision		467			1,316		—			1,783
Net income		$154,787			$2,086		$—			$156,873
Net income attributable to noncontrolling interests		(81,038	)		—		—			(81,038	)
Net income attributable to Capital Trust, Inc.		$73,749			$2,086		$—			$75,835
Total assets		$556,003			$25,194		$—			$581,197

All revenues were generated from external sources within the United States. The Investment Management segment received intercompany preferred dividend income of $1.9 million from the Balance Sheet segment for the nine months ended September 30, 2012. In addition, the Investment Management segment earned fees of $1.4 million for serving as collateral manager of the CT CDOs consolidated under our Balance Sheet Investment segment as well as special servicing activity for certain CT CDO assets for the nine months ended September 30, 2012.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the nine months ended, and as of, September 30, 2011 (in thousands):

	Balance Sheet			Investment			Inter-Segment
	Investment			Management			Activities			Total
Income from loans and other investments:
Interest and related income		$95,187			$—			$—			$95,187
Less: Interest and related expenses		80,381			—			—			80,381
Income from loans and other investments, net		14,806			—			—			14,806
Other revenues:
Management fees from affiliates		—			6,171			(1,244	)		4,927
Servicing fees		—			2,840			(632	)		2,208
Total other revenues		—			9,011			(1,876	)		7,135
Other expenses:
General and administrative		5,372			15,740			(1,244	)		19,868
Servicing fee expense		632			—			(632	)		—
Total other expenses		6,004			15,740			(1,876	)		19,868
Total other-than-temporary impairments of securities		(35,620	)		—			—			(35,620	)
Portion of other-than-temporary impairments of securities recognized in other comprehensive income		(3,098	)		—			—			(3,098	)
Impairment of real estate held-for-sale		(1,055	)		—			—			(1,055	)
Net impairments recognized in earnings		(39,773	)		—			—			(39,773	)
Recovery of provision for loan losses		34,401			—			—			34,401
Valuation allowance on loans held-for-sale		(224	)		—			—			(224	)
Gain on extinguishment of debt		271,031			—			—			271,031
Income from equity investments in unconsolidated subsidiaries		—			2,105			—			2,105
Income (loss) before income taxes		274,237			(4,624	)		—			269,613
Income tax provision (benefit)		2,615			(1,401	)		—			1,214
Net income (loss)		$271,622			($3,223	)		$—			$268,399
Net income attributable to noncontrolling interests		(1,935	)		—			—			(1,935	)
Net income (loss) attributable to Capital Trust, Inc.		$269,687			($3,223	)		$—			$266,464
Total assets		$1,528,441			$11,448			$—			$1,539,889

All revenues were generated from external sources within the United States. The Investment Management segment received intercompany preferred dividend income of $1.2 million from the Balance Sheet segment for the nine months ended September 30, 2011. In addition, the Investment Management segment earned fees of $632,000 for serving as collateral manager of the CT CDOs consolidated under our Balance Sheet Investment segment as well as special servicing activity for certain CT CDO assets for the nine months ended September 30, 2011.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the three months ended, and as of, September 30, 2012 (in thousands):

	Balance Sheet			Investment		Inter-Segment
	Investment			Management		Activities			Total
Income from loans and other investments:
Interest and related income		$6,944			$—		$—			$6,944
Less: Interest and related expenses		5,147			—		—			5,147
Income from loans and other investments, net		1,797			—		—			1,797
Other revenues:
Management fees from affiliates		—			2,165		(619	)		1,546
Servicing fees		—			3,237		(1,031	)		2,206
Total other revenues		—			5,402		(1,650	)		3,752
Other expenses
General and administrative		3,381			4,379		(619	)		7,141
Servicing fees expense		1,031			—		(1,031	)		—
Total other expenses		4,412			4,379		(1,650	)		7,141
Recovery of provision for loan losses		2,811			—		—			2,811
Fair value adjustment on investment in CT Legacy Asset		11,987			—		—			11,987
Income from equity investments in unconsolidated subsidiaries		—			411		—			411
Income before income taxes		12,183			1,434		—			13,617
Income tax provision		167			550		—			717
Net income		$12,016			$884		$—			$12,900
Net income attributable to noncontrolling interests		(5,901	)		—		—			(5,901	)
Net income attributable to Capital Trust, Inc.		$6,115			$884		$—			$6,999
Total assets		$556,003			$25,194		$—			$581,197

All revenues were generated from external sources within the United States. The Investment Management segment received intercompany preferred dividend income of $619,000 million from the Balance Sheet segment for the three months ended September 30, 2012. In addition, the Investment Management segment earned fees of $1.0 million for serving as collateral manager of the CT CDOs consolidated under our Balance Sheet Investment segment as well as special servicing activity for certain CT CDO assets for the three months ended September 30, 2012.

The following table details each segment's contribution to our operating results and the identified assets attributable to each such segment for the three months ended, and as of, September 30, 2011 (in thousands):

	Balance Sheet			Investment			Inter-Segment
	Investment			Management			Activities			Total
Income from loans and other investments:
Interest and related income		$25,642			$—			$—			$25,642
Less: Interest and related expenses		21,838			—			—			21,838
Income from loans and other investments, net		3,804			—			—			3,804
Other revenues:
Management fees from affiliates		—			2,372			(619	)		1,753
Servicing fees		—			1,671			(211	)		1,460
Total other revenues		—			4,043			(830	)		3,213
Other expenses:
General and administrative		2,427			3,344			(830	)		4,941
Total other expenses		2,427			3,344			(830	)		4,941
Total other-than-temporary impairments of securities		(30,687	)		—			—			(30,687	)
Portion of other-than-temporary impairments of securities recognized in other comprehensive income		173			—			—			173
Impairment of real estate held-for-sale		(1,055	)		—			—			(1,055	)
Net impairments recognized in earnings		(31,569	)		—			—			(31,569	)
Recovery of provision for loan losses		17,152			—			—			17,152
Gain on extinguishment of debt		20,054			—			—			20,054
Income from equity investments in unconsolidated subsidiaries		—			307			—			307
Income before income taxes		7,014			1,006			—			8,020
Income tax provision (benefit)		703			(939	)		—			(236	)
Net income		$6,311			$1,945			$—			$8,256
Net loss attributable to noncontrolling interests		5,466			—			—			5,466
Net income attributable to Capital Trust, Inc.		$11,777			$1,945			$—			$13,722
Total assets		$1,528,441			$11,448			$—			$1,539,889

All revenues were generated from external sources within the United States. The Investment Management segment received intercompany preferred dividend income of $619,000 from the Balance Sheet segment for the three months ended September 30, 2011. In addition, the Investment Management segment earned fees of $211,000 for serving as collateral manager of the CT CDOs consolidated under our Balance Sheet Investment segment as well as special servicing activity for certain CT CDO assets for the three months ended September 30, 2011.