Schedule of Segment Reporting Information |
Financial information for our segments is as follows: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2019 | Results of Operations | Servicing | | Lending | | Corporate Items and Other | | Business Segments Consolidated | Revenue | $ | 250,224 |
| | $ | 29,502 |
| | $ | 3,789 |
| | $ | 283,515 |
| | | | | | | | | Expenses (1) (2) | 890 |
| | 20,665 |
| | 23,169 |
| | 44,724 |
| | | | | | | | | Other (expense) income: | | | | | | | | Interest income | 2,105 |
| | 1,688 |
| | 336 |
| | 4,129 |
| Interest expense (3) | (268,545 | ) | | (2,133 | ) | | (15,244 | ) | | (285,922 | ) | Gain on repurchase of senior secured notes | — |
| | — |
| | 5,099 |
| | 5,099 |
| Other | 3,917 |
| | 498 |
| | (4,829 | ) | | (414 | ) | Other (expense) income, net | (262,523 | ) | | 53 |
| | (14,638 | ) | | (277,108 | ) | | | | | | | | | (Loss) income before income taxes | $ | (13,189 | ) | | $ | 8,890 |
| | $ | (34,018 | ) | | $ | (38,317 | ) | | | | | | | | | | Three Months Ended September 30, 2018 | Results of Operations | Servicing | | Lending | | Corporate Items and Other | | Business Segments Consolidated | Revenue | $ | 217,630 |
| | $ | 16,917 |
| | $ | 3,731 |
| | $ | 238,278 |
| | | | | | | | | Expenses (1) (2) | 185,077 |
| | 18,954 |
| | 13,495 |
| | 217,526 |
| |
|
| |
|
| |
|
| |
|
| Other (expense) income: | | | | | | | | Interest income | 2,242 |
| | 1,255 |
| | 466 |
| | 3,963 |
| Interest expense (3) | (47,359 | ) | | (1,437 | ) | | (12,492 | ) | | (61,288 | ) | Other | (1,335 | ) | | 154 |
| | (2,519 | ) | | (3,700 | ) | Other (expense) income, net | (46,452 | ) | | (28 | ) | | (14,545 | ) | | (61,025 | ) | | | | | | | | | Loss before income taxes | $ | (13,899 | ) | | $ | (2,065 | ) | | $ | (24,309 | ) | | $ | (40,273 | ) | | | | | | | | | | Nine months ended September 30, 2019 | Results of Operations | Servicing | | Lending | | Corporate Items and Other | | Business Segments Consolidated | Revenue | $ | 752,010 |
| | $ | 99,386 |
| | $ | 10,345 |
| | $ | 861,741 |
| | | | | | | | | Expenses (1) (2) (4) | 556,874 |
| | 63,021 |
| | 36,428 |
| | 656,323 |
| | | | | | | | | Other (expense) income: | | | | | | | | Interest income | 6,270 |
| | 4,783 |
| | 1,471 |
| | 12,524 |
| Interest expense (3) | (337,435 | ) | | (5,200 | ) | | (45,303 | ) | | (387,938 | ) | Gain on repurchase of senior secured notes | — |
| | — |
| | 5,099 |
| | 5,099 |
| Bargain purchase gain | — |
| | — |
| | (381 | ) | | (381 | ) | Other | 6,332 |
| | 1,161 |
| | (5,949 | ) | | 1,544 |
| Other (expense) income, net | (324,833 | ) | | 744 |
| | (45,063 | ) | | (369,152 | ) | | | | | | | | | (Loss) income before income taxes | $ | (129,697 | ) | | $ | 37,109 |
| | $ | (71,146 | ) | | $ | (163,734 | ) | | | | | | | | | | Nine months ended September 30, 2018 | Results of Operations | Servicing | | Lending | | Corporate Items and Other | | Business Segments Consolidated | Revenue | $ | 674,233 |
| | $ | 65,116 |
| | $ | 12,767 |
| | $ | 752,116 |
| | | | | | | | | Expenses (1) (2) | 523,061 |
| | 57,036 |
| | 49,580 |
| | 629,677 |
| | | | | | | | | Other (expense) income: | | | | | | | | Interest income | 4,136 |
| | 4,107 |
| | 1,775 |
| | 10,018 |
| Interest expense (3) | (144,551 | ) | | (4,855 | ) | | (40,195 | ) | | (189,601 | ) | Other | (2,089 | ) | | 774 |
| | (5,254 | ) | | (6,569 | ) | Other (expense) income, net | (142,504 | ) | | 26 |
| | (43,674 | ) | | (186,152 | ) | | | | | | | | | Income (loss) before income taxes | $ | 8,668 |
| | $ | 8,106 |
| | $ | (80,487 | ) | | $ | (63,713 | ) |
| | (1) | Expenses in the Servicing segment includes MSR valuation adjustments, net. |
| | (2) | Compensation and benefits expense in the Corporate Items and Other segment for the three and nine months ended September 30, 2019 and 2018 includes $(0.1) million and $19.1 million, and $0.3 million, and $7.5 million, respectively, of severance expense attributable to PHH integration-related headcount reductions of primarily U.S.-based employees in 2019 and severance expense attributable to headcount reductions in connection with our strategic decisions to exit the automotive capital services business and the forward lending correspondent and wholesale channels in late 2017 and early 2018, as well as our overall efforts to reduce costs. |
| | (3) | Interest expense in the Servicing segment includes changes in the fair value of the Financing liability - MSRs pledged (Rights to MSRs). |
| | (4) | Included in the Corporate Items and Other segment for the nine months ended September 30, 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million during the first quarter of 2019 of amounts previously recognized as expense. |
| | | | | | | | | | | | | | | | | | Total Assets | | Servicing | | Lending | | Corporate Items and Other | | Business Segments Consolidated | September 30, 2019 | | $ | 3,227,245 |
| | $ | 6,225,394 |
| | $ | 504,014 |
| | $ | 9,956,653 |
| | | | | | | | | | December 31, 2018 | | $ | 3,306,208 |
| | $ | 5,603,481 |
| | $ | 484,527 |
| | $ | 9,394,216 |
| | | | | | | | | | September 30, 2018 | | $ | 2,726,905 |
| | $ | 5,385,437 |
| | $ | 348,695 |
| | $ | 8,461,037 |
|
| | | | | | | | | | | | | | | | | | Depreciation and Amortization Expense | | Servicing | | Lending | | Corporate Items and Other | | Business Segments Consolidated | Three months ended September 30, 2019 | Depreciation expense | | $ | 105 |
| | $ | (32 | ) | | $ | 6,386 |
| | $ | 6,459 |
| Amortization of debt discount | | — |
| | — |
| | 330 |
| | 330 |
| Amortization of debt issuance costs | | — |
| | — |
| | 816 |
| | 816 |
| | | | | | | | | | Three months ended September 30, 2018 | Depreciation expense | | $ | 1,035 |
| | $ | 23 |
| | $ | 4,500 |
| | $ | 5,558 |
| Amortization of debt discount | | — |
| | — |
| | 235 |
| | 235 |
| Amortization of debt issuance costs | | — |
| | — |
| | 599 |
| | 599 |
| | | | | | | | | | Nine months ended September 30, 2019 | Depreciation expense | | $ | 1,674 |
| | $ | 49 |
| | $ | 24,297 |
| | $ | 26,020 |
| Amortization of debt discount | | — |
| | — |
| | 1,031 |
| | 1,031 |
| Amortization of debt issuance costs | | — |
| | — |
| | 2,268 |
| | 2,268 |
| | | | | | | | | | Nine months ended September 30, 2018 | Depreciation expense | | $ | 3,647 |
| | $ | 77 |
| | $ | 14,475 |
| | $ | 18,199 |
| Amortization of debt discount | | — |
| | — |
| | 941 |
| | 941 |
| Amortization of debt issuance costs | | — |
| | — |
| | 2,261 |
| | 2,261 |
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