21. Business Segment Reporting

Upon consummation of the Merger with Nationstar, the Company has identified four reportable segments: Servicing, Originations, Xome and Corporate and other. The Company’s segments are based upon the Company’s organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Facility costs are allocated to individual segments based on cost per headcount for specific facilities utilized. Group insurance costs are allocated to individual segments based on global cost per headcount. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to our operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties.

The following tables present financial information by segment.



	Successor
	For the Period August 1 - December 31, 2018
	Servicing			Originations			Xome			Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	236		$	24		$	177		$	(19	)	$	418		$	—		$	418
Net gain on mortgage loans held for sale	—			157			—			19			176			—			176
Total revenues	236			181			177			—			594			—			594
Total expenses	303			155			178			—			636			71			707
Other income (expenses):
Interest income	222			27			—			—			249			7			256
Interest expense	(173		)	(26		)	(1		)	—			(200		)	(93		)	(293		)
Other income	6			5			1			—			12			1			13
Total other income (expenses), net	55			6			—			—			61			(85		)	(24		)
Income (loss) before income tax expense (benefit)	$	(12	)	$	32		$	(1	)	$	—		$	19		$	(156	)	$	(137	)
Depreciation and amortization for property and equipment and intangible assets	$	9		$	5		$	5		$	—		$	19		$	20		$	39
Total assets	$	13,485		$	4,866		$	493		$	(3,772	)	$	15,072		$	1,901		$	16,973



	Predecessor
	For the Period January 1 - July 31, 2018
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	740		$	36		$	149	$	(25	)	$	900		$	1		$	901
Net gain on mortgage loans held for sale	—			270			—		25			295			—			295
Total revenues	740			306			149		—			1,195			1			1,196
Total expenses	474			245			123		—			842			103			945
Other income (expenses):
Interest income	288			38			—		—			326			7			333
Interest expense	(268		)	(37		)	—		—			(305		)	(83		)	(388		)
Other income (expense)	(1		)	—			9		—			8			(2		)	6
Total other income (expenses), net	19			1			9		—			29			(78		)	(49		)
Income (loss) before income tax expense (benefit)	$	285		$	62		$	35	$	—		$	382		$	(180	)	$	202
Depreciation and amortization for property and equipment and intangible assets	$	15		$	7		$	7	$	—		$	29		$	4		$	33
Total assets	$	14,578		$	4,701		$	425	$	(3,591	)	$	16,113		$	913		$	17,026



	Predecessor
	Year Ended December 31, 2017
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	766		$	63		$	291	$	(79	)	$	1,041		$	2		$	1,043
Net gain on mortgage loans held for sale	—			528			—		79			607			—			607
Total revenues	766			591			291		—			1,648			2			1,650
Total expenses	691			439			247		—			1,377			98			1,475
Other income (expenses):
Interest income	527			55			—		—			582			15			597
Interest expense	(523		)	(54		)	—		—			(577		)	(154		)	(731		)
Other income (expense)	(3		)	—			9		—			6			(3		)	3
Total other income (expenses), net	1			1			9		—			11			(142		)	(131		)
Income (loss) before income tax expense (benefit)	$	76		$	153		$	53	$	—		$	282		$	(238	)	$	44
Depreciation and amortization for property and equipment and intangible assets	$	23		$	10		$	14	$	—		$	47		$	12		$	59
Total assets	$	15,006		$	4,935		$	393	$	(3,117	)	$	17,217		$	819		$	18,036



	Predecessor
	Year Ended December 31, 2016
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	753		$	63		$	423	$	(118	)	$	1,121		$	1		$	1,122
Net gain on mortgage loans held for sale	—			675			—		118			793			—			793
Total revenues	753			738			423		—			1,914			1			1,915
Total expenses	634			527			354		—			1,515			129			1,644
Other income (expenses):
Interest income	347			63			—		—			410			15			425
Interest expense	(442		)	(58		)	—		—			(500		)	(165		)	(665		)
Other expense	—			(1		)	—		—			(1		)	(1		)	(2		)
Total other income (expenses), net	(95		)	4			—		—			(91		)	(151		)	(242		)
Income (loss) before income tax expense (benefit)	$	24		$	215		$	69	$	—		$	308		$	(279	)	$	29
Depreciation and amortization for property and equipment and intangible assets	$	23		$	11		$	21	$	—		$	55		$	8		$	63
Total assets	$	16,189		$	4,563		$	349	$	(2,448	)	$	18,653		$	940		$	19,593