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Acquisitions (Tables)
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Schedule of Business Acquisitions
The table below presents the calculation of aggregate purchase price.
Purchase Price:
 
Converted WMIH common shares (prior to reverse stock split) in millions
394

Price per share, based on price of $1.398 for WMIH stock on July 31, 2018
$
1.398

Purchase price from common stock issued
551

Purchase price from cash payment
1,226

Total purchase price
$
1,777

Schedule of Assets Acquired and Liabilities Assumed
The preliminary allocation of the purchase price to the acquired assets and liabilities is as follows:

Preliminary Estimated Fair Value of Net Assets Acquired:
 
Cash and cash equivalent
$
166

Restricted cash
430

Mortgage servicing rights
3,428

Advances and other receivables
1,262

Reverse mortgage interests
9,225

Mortgage loans held for sale
1,514

Mortgage loans held for investment
125

Property and equipment
96

Derivative financial instruments
64

Other assets
548

Fair value of assets acquired
16,858

Unsecured senior notes
1,830

Advance facilities
551

Warehouse facilities
2,701

Payables and accrued liabilities
1,365

MSR related liabilities—nonrecourse
1,065

Mortgage servicing liabilities
86

Derivative financial instruments
3

Other nonrecourse debt
7,583

Fair value of liabilities assumed
15,184

Total fair value of net tangible assets acquired
1,674

Intangible assets(1)
103

Preliminary goodwill

 
$
1,777


(1) The following intangible assets were acquired in the Nationstar acquisition.
 
Useful Life (Years)
 
Fair Value
Customer relationships (i)
6
 
$
61

Tradename (ii)
5
 
8

Technology (ii)
3-5
 
11

Internally developed software(iii)
2
 
23

Total
 
 
$
103


(i) The estimated fair values for customer relationships were measured using the excess earnings method.
(ii) The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets.
(iii) The estimated fair values for internally developed software were measured using the replacement cost method.
Pro Forma Information
The following unaudited pro forma financial information presents the combined results of operations for the three and nine months ended September 30, 2018 as if the transaction had occurred on January 1, 2018.

 
Three Months Ended September 30, 2018
 
Nine Months Ended September 30, 2018
Pro forma total revenues
$
506

 
$
1,538

 
 
 
 
Pro forma net income
$
(20
)
 
$
156