XML 86 R38.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Reporting (Tables)
9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Schedule of financial measures for each segment based on which performance is evaluated

The Company evaluates performance based on the following financial measures for each segment ($ in thousands):

 
Real Estate
Lending
 
Net
Leasing
 
Real Estate
Investment
 
Corporate/
Other(1)
 
Company
Total
Three Months Ended September 30, 2012:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
32,471

 
$
38,582

 
$
14,276

 
$
918

 
$
86,247

Earnings from equity method investments

 
667

 
1,553

 
20,499

 
22,719

Income from sales of residential property

 

 
15,584

 

 
15,584

Operating costs
(1,479
)
 
(5,548
)
 
(24,454
)
 
(915
)
 
(32,396
)
Direct segment profit
$
30,992

 
$
33,701

 
$
6,959

 
$
20,502

 
$
92,154

Allocated interest expense
(32,362
)
 
(24,325
)
 
(29,764
)
 
(5,326
)
 
(91,777
)
Allocated general and administrative(3)
(3,484
)
 
(2,619
)
 
(3,204
)
 
(6,218
)
 
(15,525
)
Segment profit (loss)(4)
$
(4,854
)
 
$
6,757

 
$
(26,009
)
 
$
8,958

 
$
(15,148
)
Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
16,834

 
$

 
$

 
$

 
$
16,834

Impairment of assets
$

 
$
3,562

 
$
1,450

 
$
1,530

 
$
6,542

Depreciation and amortization
$

 
$
11,821

 
$
4,639

 
$
327

 
$
16,787

Capitalized expenditures
$

 
$
2,577

 
$
10,445

 
$

 
$
13,022

Three Months Ended September 30, 2011:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
47,290

 
$
38,322

 
$
8,207

 
$
494

 
$
94,313

Earnings (loss) from equity method investments

 
650

 
(1,267
)
 
11,434

 
10,817

Operating costs
(1,382
)
 
(4,845
)
 
(19,792
)
 
(2,592
)
 
(28,611
)
Direct segment profit (loss)
$
45,908

 
$
34,127

 
$
(12,852
)
 
$
9,336

 
$
76,519

Allocated interest expense
(41,858
)
 
(21,797
)
 
(20,387
)
 
(6,617
)
 
(90,659
)
Allocated general and administrative(3)
(4,801
)
 
(2,628
)
 
(2,338
)
 
(10,058
)
 
(19,825
)
Segment profit (loss)(4)
$
(751
)
 
$
9,702

 
$
(35,577
)
 
$
(7,339
)
 
$
(33,965
)
Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
9,232

 
$

 
$

 
$

 
$
9,232

Impairment of assets
$

 
$
650

 
$
9,262

 
$

 
$
9,912

Depreciation and amortization
$

 
$
12,683

 
$
761

 
$
509

 
$
13,953

Capitalized expenditures
$

 
$
6,237

 
$
18,949

 
$

 
$
25,186

Nine Months Ended September 30, 2012:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
112,984

 
$
114,990

 
$
43,425

 
$
3,538

 
$
274,937

Earnings from equity method investments

 
1,962

 
15,747

 
58,216

 
75,925

Income from sales of residential property

 

 
35,583

 

 
35,583

Operating costs
(3,906
)
 
(13,676
)
 
(68,952
)
 
(2,848
)
 
(89,382
)
Direct segment profit
$
109,078

 
$
103,276

 
$
25,803

 
$
58,906

 
$
297,063

Allocated interest expense
(101,975
)
 
(70,526
)
 
(83,507
)
 
(15,587
)
 
(271,595
)
Allocated general and administrative(3)
(11,903
)
 
(8,356
)
 
(9,747
)
 
(20,043
)
 
(50,049
)
Segment profit (loss)(4)
$
(4,800
)
 
$
24,394

 
$
(67,451
)
 
$
23,276

 
$
(24,581
)
Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
60,865

 
$

 
$

 
$

 
$
60,865

Impairment of assets
$

 
$
23,263

 
$
5,301

 
$
977

 
$
29,541

Depreciation and amortization
$

 
$
34,781

 
$
13,079

 
$
2,403

 
$
50,263

Capitalized expenditures
$

 
$
5,565

 
$
40,171

 
$

 
$
45,736

Nine Months Ended September 30, 2011:
 
 
 
 
 
 
 
 
 
Total revenue(2)
$
189,273

 
$
114,075

 
$
22,356

 
$
1,589

 
$
327,293

Earnings (loss) from equity method investments

 
1,919

 
(6,718
)
 
59,680

 
54,881

Operating costs
(1,697
)
 
(13,515
)
 
(55,582
)
 
(5,459
)
 
(76,253
)
Direct segment profit (loss)
$
187,576

 
$
102,479

 
$
(39,944
)
 
$
55,810

 
$
305,921

Allocated interest expense
(127,105
)
 
(58,159
)
 
(53,080
)
 
(17,161
)
 
(255,505
)
Allocated general and administrative(3)
(15,750
)
 
(7,538
)
 
(6,577
)
 
(31,590
)
 
(61,455
)
Segment profit (loss)(4)
$
44,721

 
$
36,782

 
$
(99,601
)
 
$
7,059

 
$
(11,039
)
Other significant non-cash items:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
30,462

 
$

 
$

 
$

 
$
30,462

Impairment of assets
$

 
$
650

 
$
12,643

 
$
872

 
$
14,165

Depreciation and amortization
$

 
$
37,897

 
$
4,315

 
$
1,565

 
$
43,777

Capitalized expenditures
$

 
$
11,138

 
$
34,915

 
$

 
$
46,053

As of September 30, 2012
 
 
 
 
 
 
 
 
 
Total assets
$
2,146,287

 
$
1,683,434

 
$
2,061,782

 
$
1,048,916

 
$
6,940,419

As of December 31, 2011
 
 
 
 
 
 
 
 
 
Total assets
$
2,892,240

 
$
1,837,425

 
$
1,982,420

 
$
805,752

 
$
7,517,837


Explanatory Notes:
_______________________________________________________________________________

(1)
Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not related to the other reportable segments above, including the Company's equity investment in LNR of $180.7 million and $159.8 million, as of September 30, 2012 and December 31, 2011, respectively, and the Company's share of equity in earnings from LNR of $15.2 million and $36.0 million, for the three and nine months ended September 30, 2012, respectively, and $12.5 million and $36.6 million for the three and nine months ended September 30, 2011. See Note 7 for further details on the Company's investment in LNR and summarized financial information of LNR.
(2)
Total revenue represents all revenue earned during the period related to the assets in each segment. Revenue from the Real Estate Lending segment primarily represents interest income, revenue from the Net Leasing segment primarily represents operating lease income and revenue from Real Estate Investment primarily represents operating revenues from REHI properties.
(3)
General and administrative excludes stock-based compensation expense of $3.5 million and $11.6 million for the three and nine months ended September 30, 2012, respectively, and $7.2 million and $15.6 million for the three and nine months ended September 30, 2011 respectively.
(4)
The following is a reconciliation of segment profit (loss) to income (loss) from continuing operations ($ in thousands):

 
For the Three Months
Ended September 30,
 
For the Nine Months
Ended September 30,
 
2012
 
2011
 
2012
 
2011
Segment profit (loss)
$
(15,148
)
 
$
(33,965
)
 
$
(24,581
)
 
$
(11,039
)
Less: Provision for loan losses
(16,834
)
 
(9,232
)
 
(60,865
)
 
(30,462
)
Less: Impairment of assets
(6,542
)
 
(9,912
)
 
(29,541
)
 
(14,165
)
Less: Stock-based compensation expense
(3,512
)
 
(7,153
)
 
(11,625
)
 
(15,622
)
Less: Depreciation and amortization
(16,787
)
 
(13,953
)
 
(50,263
)
 
(43,777
)
Less: Income tax expense
(1,791
)
 
(1,354
)
 
(6,540
)
 
(9,731
)
Less: Income from sales of residential property
(15,584
)
 

 
(35,583
)
 

Add: Gain (loss) on early extinguishment of debt, net
(3,694
)
 
(3,207
)
 
(6,858
)
 
102,348

Income (loss) from continuing operations
$
(79,892
)
 
$
(78,776
)
 
$
(225,856
)
 
$
(22,448
)
Reconciliation of segment profit (loss) to income (loss) from continuing operations
The following is a reconciliation of segment profit (loss) to income (loss) from continuing operations ($ in thousands):

 
For the Three Months
Ended September 30,
 
For the Nine Months
Ended September 30,
 
2012
 
2011
 
2012
 
2011
Segment profit (loss)
$
(15,148
)
 
$
(33,965
)
 
$
(24,581
)
 
$
(11,039
)
Less: Provision for loan losses
(16,834
)
 
(9,232
)
 
(60,865
)
 
(30,462
)
Less: Impairment of assets
(6,542
)
 
(9,912
)
 
(29,541
)
 
(14,165
)
Less: Stock-based compensation expense
(3,512
)
 
(7,153
)
 
(11,625
)
 
(15,622
)
Less: Depreciation and amortization
(16,787
)
 
(13,953
)
 
(50,263
)
 
(43,777
)
Less: Income tax expense
(1,791
)
 
(1,354
)
 
(6,540
)
 
(9,731
)
Less: Income from sales of residential property
(15,584
)
 

 
(35,583
)
 

Add: Gain (loss) on early extinguishment of debt, net
(3,694
)
 
(3,207
)
 
(6,858
)
 
102,348

Income (loss) from continuing operations
$
(79,892
)
 
$
(78,776
)
 
$
(225,856
)
 
$
(22,448
)