CONSOLIDATING FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table presents the consolidating balance sheets as of December 31, 2013 (in thousands):



	RAI			RSO		Eliminations			Consolidated
ASSETS
Cash	$	19,853		$	—	$	—		$	19,853
Restricted cash	571			—		—			571
Receivables	585			—		(44		)	541
Receivables from managed entities and related parties, net	33,325			—		(2,402		)	30,923
Investments in real estate, net	17,696			—		—			17,696
Investment securities, at fair value	24,842			—		(17,003		)	7,839
Investments in unconsolidated loan manager	37,821			—		—			37,821
Investments in unconsolidated entities	14,342			—		—			14,342
Assets of consolidated variable interest entities ("VIE") - RSO:
Cash and cash equivalents (including restricted cash)	—			325,579		—			325,579
Investments, at fair value	—			221,395		—			221,395
Loans	—			1,398,408		(950		)	1,397,458
Investments in real estate and unconsolidated entities	—			129,562		—			129,562
Other assets - RSO	—			76,483		(16		)	76,467
Total assets of consolidated VIE - RSO	—			2,151,427		(966		)	2,150,461
Property and equipment, net	5,844			—		—			5,844
Deferred tax assets, net	36,150			—		(8,381		)	27,769
Other assets	4,791			—		—			4,791
Total assets	$	195,820		$	2,151,427	$	(28,796	)	$	2,318,451

LIABILITIES AND EQUITY
Liabilities:
Accrued expenses and other liabilities	$	22,134		$	—	$	—		$	22,134
Payables to managed entities and related parties	3,126			—		(16		)	3,110
Borrowings	21,569			—		(950		)	20,619
Liabilities of consolidated VIE - RSO:
Borrowings	—			1,319,810		205			1,320,015
Other liabilities	—			57,693		(2,446		)	55,247
Total liabilities of consolidated VIE - RSO	—			1,377,503		(2,241		)	1,375,262
Total liabilities	46,829			1,377,503		(3,207		)	1,421,125
Commitments and contingencies

Equity:
Preferred stock	—			—		—			—
Common stock	299			—		—			299
Additional paid-in capital	288,555			—		—			288,555
Accumulated deficit	(21,852		)	—		(4,173		)	(26,025		)
Treasury stock, at cost	(107,874		)	—		—			(107,874		)
Accumulated other comprehensive loss	(10,375		)	—		9,144			(1,231		)
Total stockholders’ equity	148,753			—		4,971			153,724
Noncontrolling interests	238			—		—			238
Noncontrolling interest attributable to RSO	—			773,924		(30,560		)	743,364
Total equity	148,991			773,924		(25,589		)	897,326
	$	195,820		$	2,151,427	$	(28,796	)	$	2,318,451

Consolidating statements of operations

The following table presents the consolidating statement of operations for the year ended December 31, 2013 (in thousands):



	RAI			RSO			Eliminations			Consolidated
REVENUES:
Real estate	$	57,143		$	—		$	—		$	57,143
Financial fund management	19,773			—			—			19,773
Commercial finance	(341		)	—			—			(341		)
	76,575			—			—			76,575
Revenues from consolidated VIE - RSO	—			91,007			—			91,007
Elimination of consolidated VIE revenues attributed to operating segments	—			—			(13,834		)	(13,834		)
Total revenues	76,575			91,007			(13,834		)	153,748
COSTS AND EXPENSES:
Real estate	40,612			—			—			40,612
Financial fund management	10,155			—			—			10,155
Commercial finance	56			—			—			56
General and administrative	10,268			—			—			10,268
Provision for credit losses	4,265			—			—			4,265
Depreciation and amortization	1,936			—			—			1,936
	67,292			—			—			67,292
Expenses from consolidated VIE - RSO	—			61,561			1,041			62,602
Elimination of consolidated VIE expenses attributed to operating segments	—			—			(13,215		)	(13,215		)
Total expenses	67,292			61,561			(12,174		)	116,679
OPERATING INCOME	9,283			29,446			(1,660		)	37,069

OTHER INCOME (EXPENSE):
Other-than-temporary impairment on investments	(214		)	—			—			(214		)
Interest expense	(2,036		)	—			—			(2,036		)
Other income, net	2,816			—			(2,241		)	575
Other income, net, from consolidated VIE - RSO	—			17,007			—			17,007
Elimination of consolidated VIE other income, net	—			—			244			244
	566			17,007			(1,997		)	15,576
Income from continuing operations before taxes	9,849			46,453			(3,657		)	52,645
Income tax provision	1,657			—			(1,041		)	616
Income from continuing operations	8,192			46,453			(2,616		)	52,029
Loss from discontinued operations, net of tax	(2		)	—			—			(2		)
Net income	8,190			46,453			(2,616		)	52,027
Net income attributable to noncontrolling interests	(20		)	—			—			(20		)
Net income attributable to noncontrolling interests - RSO	—			(7,221		)	(38,360		)	(45,581		)
Net income attributable to common shareholders	$	8,170		$	39,232		$	(40,976	)	$	6,426

Amounts attributable to common shareholders:
Income from continuing operations	$	8,172		$	39,232		$	(40,976	)	$	6,428
Discontinued operations	(2		)	—			—			(2		)
Net income	$	8,170		$	39,232		$	(40,976	)	$	6,426

The followi

Consolidating statements of cash flows

The following table presents the consolidating statement of cash flows for the year ended December 31, 2013 (in thousands):



	RAI			RSO			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	8,190		$	46,453		$	(2,616	)	$	52,027
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	2,140			—			—			2,140
Provision for credit losses	4,265			—			—			4,265
Unrealized loss (gain) on trading securities	1,021			—			33			1,054
Equity in earnings of unconsolidated entities	(5,389		)	—			—			(5,389		)
Distributions from unconsolidated entities	4,647			—			—			4,647
Other-than-temporary impairment on investments	214			—			—			214
Gain on sale of investment securities, net	(6,523		)	—			230			(6,293		)
Gain on sale of assets	(1,734		)	—			—			(1,734		)
Deferred income tax provision (benefit)	25			—			—			25
Equity-based compensation issued	1,257			—			—			1,257
Equity-based compensation received	(1,138		)	—			1,138			—
Trading securities purchases and sales, net	10,517			—			(230		)	10,287
Loss from discontinued operations	2			—			—			2
Changes in operating assets and liabilities	2,635			—			205			2,840
Change in cash attributable to operations of consolidated VIE - RSO	—			(155,024		)	(1,196		)	(156,220		)
Net cash provided by (used in) operating activities	20,129			(108,571		)	(2,436		)	(90,878		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(2,730		)	—			—			(2,730		)
Payments received on real estate loans and real estate	2,049			—			—			2,049
Investments in unconsolidated real estate entities	(1,545		)	—			—			(1,545		)
Principal payments received on leases and loans	17			—			—			17
Purchase of loans and securities by consolidated VIE - RSO	—			(861,939		)	—			(861,939		)
Principal payments and proceeds from sales received by consolidated VIE - RSO	—			1,348,597			—			1,348,597
Purchase of loans and investments	(3,213		)	—			—			(3,213		)
Increase in restricted cash of consolidated VIE - RSO	—			22,248			—			22,248
Other investing activity of consolidated VIE - RSO	—			(29,853		)	(593		)	(30,446		)
Net cash (used in) provided by investing activities	(5,422		)	479,053			(593		)	473,038



	RAI			RSO			Eliminations		Consolidated
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings	$	2,001		$	—		$	—	$	2,001
Principal payments on borrowings	(3,107		)	—			621		(2,486		)
Net repayments of debt by consolidated VIE - RSO	—			(420,107		)	—		(420,107		)
Dividends paid	(1,988		)	—			—		(1,988		)
Dividends paid on common stock by consolidated VIE - RSO	—			(93,458		)	2,203		(91,255		)
Proceeds from issuance of common stock	1,252			—			—		1,252
Net proceeds from issuance of common stock by consolidated VIE - RSO	—			189,991			—		189,991
Repurchase of common stock	(4,607		)	—			—		(4,607		)
Other	67			—			—		67
Other financing activity of consolidated VIE - RSO	—			(46,908		)	205		(46,703		)
Net cash used in financing activities	(6,382		)	(370,482		)	3,029		(373,835		)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities	(371		)	—			—		(371		)
Net cash used in discontinued operations	(371		)	—			—		(371		)

Increase in cash	7,954			—			—		7,954
Cash, beginning of year	11,899			—			—		11,899
Cash, end of year	$	19,853		$	—		$	—	$	19,853