Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations

The table below summarizes the Company’s contractual obligations for the periods indicated. In addition, the Company has off balance sheet arrangements in the form of letters of credit.



	March 31, 2014		December 31, 2013
Mortgage notes payable and related interest ⁽¹⁾	$	107,623	$	107,705
Notes payable⁽²⁾	90,039		91,015
Notes payable CLOs⁽³⁾	1,306,962		1,341,701
Warehouse borrowing⁽⁴⁾	63,944		49,500
Operating lease obligations⁽⁵⁾	14,533		6,437
Revolving line of credit⁽⁶⁾	6,733		5,371
Commitments to extend credit⁽⁷⁾	60,345		—
Commitments to sell loans (8)	57,745		—
Standby letters of credit⁽⁹⁾	322		—
Total	$	1,708,246	$	1,601,729


(1)	Mortgage notes payable include mortgage notes entered into by the Company in connection with its acquisition of several properties (See Note 11—Debt).


(2)	Notes payable relates to PFG’s acquisition of the administrative services rights from The Hartford, TFP payment for Series A preferred stock and common shares of PFG and Luxury promissory notes (See Note 11—Debt).


(3)	CLO notes payable principal is payable at stated maturity, 2021 for Telos 1, 2022 for Telos 2, 2024 for Telos 3 and 2024 for Telos 4 (See Note 4—CLOs and Consolidated Variable Interest Entities).

(4)

On September 18, 2013, Operating Company entered into a Credit Agreement with Fortress and borrowed $50,000 under the Credit Agreement. The Credit Agreement also includes an option for Operating Company to borrow additional amounts up to a maximum aggregate of $125,000, subject to satisfaction of certain customary conditions. The Company through its subsidiary Luxury has lines of credit with several lenders (See Note 11—Debt).


(5)	Minimum rental obligations for Care, Siena, Luxury and PFG office leases. For the three month periods ended March 31, 2014 and 2013, rent expense for the Company’s office leases were $570 and $363, respectively.


(6)	On July 25, 2013, TFI’s subsidiary Siena closed on a line of credit with Wells Fargo Bank. This revolving line is for $65,000 with an interest rate of LIBOR + 250 basis points and a maturity date of January 25, 2017. As of March 31, 2014 there was $6,733 outstanding on this line (See Note 11—Debt).


(7)	Tiptree’s subsidiary, Luxury, has interest rate lock commitments to extend credit which are agreements to make mortgage loans to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. Since these commitments may expire without being funded in whole or in part the contract amounts are not necessarily indicative of future cash flows.


(8)	Tiptree’s subsidiary, Luxury, has commitments to sell mortgage loans, consisting of loans on which Luxury has made interest rate lock commitments, into the secondary market.


(9)	Tiptree’s subsidiary, Siena, issues standby letters of credit to customers which generally guarantee the borrower’s performance.

Litigation

Tiptree and its subsidiaries are parties to legal proceedings in the ordinary course of their business. Although Tiptree’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, Tiptree does not believe that these proceedings, either individually or in the aggregate, are likely to have a material adverse effect on Tiptree’s financial position or results of operations.

- Definition

The entire disclosure for commitments and contingencies.

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