19. 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 the actual cost of services performed based on 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 Company’s 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
	Three Months Ended March 31, 2019
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	8		$	15		$	96	$	(35	)	$	84		$	—		$	84
Net gain on mortgage loans held for sale	—			131			—		35			166			—			166
Total revenues	8			146			96		—			250			—			250
Total Expenses	195			104			99		—			398			45			443
Other income (expenses)
Interest income	115			17			—		—			132			2			134
Interest expense	(114		)	(18		)	—		—			(132		)	(57		)	(189		)
Other	—			4			11		—			15			—			15
Total Other Income (Expenses), Net	1			3			11		—			15			(55		)	(40		)
(Loss) income before income tax (benefit) expense	$	(186	)	$	45		$	8	$	—		$	(133	)	$	(100	)	$	(233	)
Depreciation and amortization for property and equipment and intangible assets	$	4		$	3		$	4	$	—		$	11		$	10		$	21
Total assets	$	13,642		$	4,865		$	502	$	(4,100	)	$	14,909		$	2,737		$	17,646



	Predecessor
	Three Months Ended March 31, 2018
	Servicing			Originations			Xome		Eliminations			Total Operating Segments			Corporate and Other			Consolidated
Revenues
Service related, net	$	395		$	15		$	65	$	(11	)	$	464		$	—		$	464
Net gain on mortgage loans held for sale	—			113			—		11			124			—			124
Total revenues	395			128			65		—			588			—			588
Total Expenses	182			109			52		—			343			21			364
Other income (expenses)
Interest income	126			15			—		—			141			4			145
Interest expense	(118		)	(15		)	—		—			(133		)	(38		)	(171		)
Other	(1		)	—			9		—			8			—			8
Total Other Income (Expenses), Net	7			—			9		—			16			(34		)	(18		)
Income (loss) before income tax expense (benefit)	$	220		$	19		$	22	$	—		$	261		$	(55	)	$	206
Depreciation and amortization for property and equipment and intangible assets	$	7		$	3		$	3	$	—		$	13		$	2		$	15
Total assets	$	15,224		$	4,710		$	413	$	(3,302	)	$	17,045		$	819		$	17,864