Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 25, 2013 | Oct. 25, 2013 | |
Class A Shares | Class B Shares | ||
Entity Registrant Name | 'Fortress Investment Group LLC | ' | ' |
Entity Central Index Key | '0001380393 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 239,568,798 | 249,534,372 |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $311,114 | $104,242 |
Due from affiliates | 165,801 | 280,557 |
Investments | 1,263,392 | 1,211,684 |
Investments in options | 100,123 | 38,077 |
Deferred tax asset | 370,944 | 402,135 |
Other assets | 146,259 | 124,798 |
Total assets (GAAP) | 2,357,633 | 2,161,493 |
Liabilities | ' | ' |
Accrued compensation and benefits | 305,361 | 146,911 |
Due to affiliates | 343,495 | 357,407 |
Deferred incentive income | 287,182 | 231,846 |
Debt obligations payable | 0 | 149,453 |
Other liabilities | 99,850 | 59,226 |
Total Liabilities | 1,035,888 | 944,843 |
Commitments and Contingencies | ' | ' |
Equity | ' | ' |
Paid-in capital | 2,121,595 | 2,119,102 |
Retained earnings (accumulated deficit) | -1,431,944 | -1,486,578 |
Treasury shares (2,082,684 Class A shares held by subsidiary at December 31, 2012) | 0 | -3,419 |
Accumulated other comprehensive income (loss) | -1,928 | -2,634 |
Total Fortress shareholdersb equity | 687,723 | 626,471 |
Principalsb and othersb interests in equity of consolidated subsidiaries | 634,022 | 590,179 |
Total equity | 1,321,745 | 1,216,650 |
Total Liabilities and Equity | 2,357,633 | 2,161,493 |
Class A Shares | ' | ' |
Equity | ' | ' |
Common stock | 0 | 0 |
Class B Shares | ' | ' |
Equity | ' | ' |
Common stock | $0 | $0 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Sep. 30, 2013 | Dec. 31, 2012 |
Treasury stock, shares | ' | 2,082,684 |
Class A Shares | ' | ' |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 239,568,798 | 220,369,026 |
Common stock, shares outstanding | 239,568,798 | 218,286,342 |
Treasury stock, shares | ' | 2,082,684 |
Class B Shares | ' | ' |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 249,534,372 | 249,534,372 |
Common stock, shares outstanding | 249,534,372 | 249,534,372 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Management fees: affiliates | $121,593 | $112,806 | $388,957 | $336,935 |
Management fees: non-affiliates | 15,361 | 10,762 | 45,531 | 32,534 |
Incentive income: affiliates | 40,934 | 5,976 | 103,176 | 38,994 |
Incentive income: non-affiliates | 1,907 | 788 | 4,770 | 1,564 |
Expense reimbursements: affiliates | 49,301 | 49,214 | 149,308 | 136,615 |
Expense reimbursements: non-affiliates | 1,904 | 977 | 4,752 | 2,864 |
Other revenues (affiliate portion disclosed in Note 6) | 1,019 | 1,000 | 2,954 | 2,723 |
Total revenues (GAAP) | 232,019 | 181,523 | 699,448 | 552,229 |
Expenses | ' | ' | ' | ' |
Interest expense | 778 | 3,375 | 4,856 | 11,877 |
Compensation and benefits | 146,457 | 181,421 | 539,591 | 537,267 |
General, administrative and other | 33,315 | 31,004 | 99,970 | 93,365 |
Depreciation and amortization | 3,501 | 4,982 | 10,094 | 11,718 |
Total Expenses | 184,051 | 220,782 | 654,511 | 654,227 |
Other Income (Loss) | ' | ' | ' | ' |
Gains (losses) (affiliate portion disclosed in Note 3) | 7,503 | -2,228 | 45,578 | 29,542 |
Tax receivable agreement liability adjustment | 0 | 0 | -7,739 | -6,935 |
Earnings (losses) from equity method investees | 60,508 | 52,034 | 125,515 | 110,417 |
Total Other Income (Loss) | 68,011 | 49,806 | 163,354 | 133,024 |
Income (Loss) Before Income Taxes | 115,979 | 10,547 | 208,291 | 31,026 |
Income tax benefit (expense) | -14,794 | -3,881 | -42,236 | -34,251 |
Net Income (Loss) | 101,185 | 6,666 | 166,055 | -3,225 |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | 58,804 | 5,958 | 111,421 | 20,698 |
Net Income (Loss) Attributable to Class A Shareholders | $42,381 | $708 | $54,634 | ($23,923) |
Dividends declared per Class A share | $0.06 | $0.05 | $0.18 | $0.15 |
Earnings (Loss) Per Class A share | ' | ' | ' | ' |
Net income (loss) per Class A share, basic | $0.17 | $0 | $0.23 | ($0.12) |
Net income (loss) per Class A share, diluted | $0.12 | ($0.04) | $0.21 | ($0.13) |
Weighted average number of Class A shares outstanding, basic | 239,404,587 | 220,641,776 | 234,750,585 | 212,297,285 |
Weighted average number of Class A shares outstanding, diluted | 502,091,166 | 520,039,541 | 499,562,470 | 517,431,334 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $101,185 | $6,666 | $166,055 | ($3,225) |
Foreign currency translation | -46 | 168 | -1,862 | -884 |
Comprehensive income (loss) from equity method investees | -1 | -1,066 | 4,135 | -1,157 |
Total comprehensive income (loss) | 101,138 | 5,768 | 168,328 | -5,266 |
Comprehensive income (loss) attributable to principalsb and othersb interests | 58,772 | 5,331 | 112,842 | 19,462 |
Comprehensive income (loss) attributable to Class A shareholders | $42,366 | $437 | $55,486 | ($24,728) |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) (USD $) | Total | Paid-In Capital | Retained Earnings (Accumulated Deficit) | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Total Fortress Shareholdersb Equity | Principalsb and Othersb Interests in Equity of Consolidated Subsidiaries | Class A Shares | Class B Shares |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Equity at Dec. 31, 2012 | $1,216,650 | $2,119,102 | ($1,486,578) | ($3,419) | ($2,634) | $626,471 | $590,179 | ' | ' |
Equity (in shares) at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | 218,286,342 | 249,534,372 |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions from principalsb and othersb interests in equity | 55,543 | 0 | 0 | 0 | 0 | 0 | 55,543 | ' | ' |
Distributions to principalsb and othersb interests in equity (net of tax) | -116,759 | -112 | 0 | 0 | 0 | -112 | -116,647 | ' | ' |
Dividends declared | -41,830 | -41,896 | 0 | 0 | 0 | -41,896 | 66 | ' | ' |
Dividend equivalents accrued in connection with equity- based compensation (net of tax) | -1,113 | -428 | 0 | 0 | 0 | -428 | -685 | ' | ' |
Conversion of Class B shares to Class A shares | 0 | 10,143 | 0 | 0 | 0 | 10,143 | -10,143 | ' | ' |
Conversion of Class B shares to Class A shares (in shares) | ' | ' | ' | ' | ' | ' | ' | 10,333,334 | -10,333,334 |
Net deferred tax effects resulting from acquisition and exchange of Fortress Operating Group units | 12,037 | 12,067 | 0 | 0 | 0 | 12,067 | -30 | ' | ' |
Director restricted share grant | 770 | 372 | 0 | 0 | 0 | 372 | 398 | ' | ' |
Director restricted share grant (in shares) | ' | ' | ' | ' | ' | ' | ' | 127,533 | 0 |
Capital increase related to equity-based compensation, net | 29,124 | 14,075 | 0 | 0 | 0 | 14,075 | 15,049 | ' | ' |
Capital increase related to equity-based compensation, net (in shares) | ' | ' | ' | ' | ' | ' | ' | 8,738,905 | 10,333,334 |
Dilution impact of Class A share issuance | 0 | 12,711 | 0 | -15 | -146 | 12,550 | -12,550 | ' | ' |
Reissuance of treasury stock | -1,005 | -4,439 | 0 | 3,434 | 0 | -1,005 | 0 | ' | ' |
Reissuance of treasury stock (in shares) | ' | ' | ' | ' | ' | ' | ' | 2,082,684 | 0 |
Comprehensive income (loss) (net of tax) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 166,055 | 0 | 54,634 | 0 | 0 | 54,634 | 111,421 | ' | ' |
Foreign currency translation | -1,862 | 0 | 0 | 0 | -645 | -645 | -1,217 | ' | ' |
Comprehensive income (loss) from equity method investees | 4,135 | 0 | 0 | 0 | 1,497 | 1,497 | 2,638 | ' | ' |
Total comprehensive income (loss) | 168,328 | ' | ' | ' | ' | 55,486 | 112,842 | ' | ' |
Equity at Sep. 30, 2013 | $1,321,745 | $2,121,595 | ($1,431,944) | $0 | ($1,928) | $687,723 | $634,022 | ' | ' |
Equity (in shares) at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | 239,568,798 | 249,534,372 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities | ' | ' |
Net income (loss) | $166,055 | ($3,225) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' |
Depreciation and amortization | 10,094 | 11,718 |
Other amortization and accretion (included in interest expense) | 704 | 1,467 |
(Earnings) losses from equity method investees | -125,515 | -110,417 |
Distributions of earnings from equity method investees | 53,576 | 32,621 |
(Gains) losses | -45,578 | -29,542 |
Deferred incentive income | -50,262 | -36,931 |
Deferred tax (benefit) expense | 53,048 | 32,107 |
Adjustment of estimated forfeited non-cash compensation | 43 | -1,705 |
Options received from affiliates | -36,470 | -21,524 |
Tax receivable agreement liability adjustment | 7,739 | 6,935 |
Equity-based compensation | 28,648 | 162,372 |
Options in affiliates granted to employees | 7,757 | 3,378 |
Allowance for doubtful accounts | 590 | 485 |
Cash flows due to changes in | ' | ' |
Due from affiliates | -88,276 | -66,183 |
Other assets | 1,950 | 601 |
Accrued compensation and benefits | 204,718 | -4,276 |
Due to affiliates | 5,737 | 1,404 |
Deferred incentive income | 105,753 | 43,382 |
Other liabilities | 32,197 | 23,061 |
Net cash provided by (used in) operating activities | 332,508 | 45,728 |
Cash Flows From Investing Activities | ' | ' |
Contributions to equity method investees | -25,885 | -52,573 |
Distributions of capital from equity method investees | 257,829 | 137,015 |
Proceeds from sale of direct investments | 9,951 | 0 |
Purchase of equity securities | -19,460 | 0 |
Purchase of fixed assets | -7,777 | -7,367 |
Net cash provided by (used in) investing activities | 214,658 | 77,075 |
Cash Flows From Financing Activities | ' | ' |
Repayments of debt obligations | -149,453 | -80,722 |
Payment of deferred financing costs | -2,367 | 0 |
Repurchase of RSUs | 0 | -7,522 |
Dividends and dividend equivalents paid | -43,168 | -32,803 |
Principalsb and othersb interests in equity of consolidated subsidiaries - contributions | 391 | 429 |
Principalsb and othersb interests in equity of consolidated subsidiaries - distributions | -145,697 | -81,620 |
Net cash provided by (used in) financing activities | -340,294 | -202,238 |
Net Increase (Decrease) in Cash and Cash Equivalents | 206,872 | -79,435 |
Cash and Cash Equivalents, Beginning of Period | 104,242 | 333,166 |
Cash and Cash Equivalents, End of Period | 311,114 | 253,731 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest | 3,586 | 10,198 |
Cash paid during the period for income taxes | 2,990 | 5,623 |
Supplemental Schedule of Non-cash Investing and Financing Activities | ' | ' |
Employee compensation invested directly in subsidiaries | 52,105 | 23,598 |
Investments of receivable amounts into Fortress Funds | 206,455 | 74,636 |
Dividends, dividend equivalents and Fortress Operating Group unit distributions declared but not yet paid | $3,255 | $7,876 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||
ORGANIZATION AND BASIS OF PRESENTATION | ' | ||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||
Fortress Investment Group LLC (the “Registrant,” or, together with its subsidiaries, “Fortress”) is a leading, highly diversified global investment management firm whose predecessor was founded in 1998. Its primary business is to sponsor the formation of, and provide investment management services for, various investment funds and companies, including related managed accounts (collectively, the “Fortress Funds”). Fortress generally makes principal investments in these funds. | |||||
Fortress has three primary sources of income from the Fortress Funds: management fees, incentive income, and investment income on its principal investments in the funds. The Fortress Funds fall into the following business segments in which Fortress operates: | |||||
1) | Private equity: | ||||
a) General buyout and sector-specific funds focused on control-oriented investments in cash flow generating assets and asset-based businesses in North America, Western Europe and Asia; and | |||||
b) Publicly traded permanent capital vehicles, which Fortress refers to as “Castles,” that invest in a wide variety of real estate related assets including securities, loans, real estate properties and mortgage servicing rights. | |||||
2) | Liquid hedge funds that invest globally in fixed income, currency, equity and commodity markets, and related derivatives to capitalize on imbalances in the financial markets. In addition, this segment includes an endowment style fund, which invests in Fortress Funds, funds managed by external managers, and direct investments; and a fund that seeks to generate returns by executing a positively convex investment strategy. | ||||
3) | Credit funds: | ||||
a) | Credit hedge funds, which make highly diversified investments in direct lending, corporate debt and securities, portfolios and orphaned assets, real estate and structured finance, on a global basis and throughout the capital structure, with a value orientation, as well as non-Fortress originated funds for which Fortress has been retained as manager as part of an advisory business; and | ||||
b) Credit private equity (“PE”) funds which are comprised of a family of “credit opportunities” funds focused on investing in distressed and undervalued assets, a family of ''long dated value'' funds focused on investing in undervalued assets with limited current cash flows and long investment horizons, a family of “real assets” funds focused on investing in tangible and intangible assets in four principal categories (real estate, capital assets, natural resources and intellectual property), a family of Asia funds, including Japan real estate funds and an Asian investor based global opportunities fund, and a family of real estate opportunities funds, as well as certain sector-specific funds with narrower investment mandates tailored for the applicable sector. | |||||
4) | Logan Circle Partners, L.P. (“Logan Circle”), which represents Fortress's traditional asset management business providing institutional clients actively managed investment solutions across a broad spectrum of fixed income and growth equity strategies. Logan Circle's core fixed income products cover the breadth of the maturity and risk spectrums, including short, intermediate and long duration, core/core plus, investment grade credit, high yield and emerging market debt. In April 2013, Logan Circle launched a growth equities investment business focused on investing and managing concentrated portfolios of publicly traded U.S. equities. | ||||
5) | Principal investments in the above described funds. | ||||
FINANCIAL STATEMENT GUIDE | |||||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Balance Sheet | |||||
Due from Affiliates | 6 | Generally, management fees, expense reimbursements and incentive income due from Fortress Funds. | |||
Investments and Investments in Options | 3 | Primarily the carrying value of Fortress’s principal investments in the Fortress Funds. | |||
Deferred Tax Asset | 5 | Relates to potential future tax benefits. | |||
Due to Affiliates | 6 | Generally, amounts due to the Principals related to their interests in Fortress Operating Group and the tax receivable agreement. | |||
Deferred Incentive Income | 2 | Incentive income already received from certain Fortress Funds based on past performance, which is subject to contingent repayment based on future performance. | |||
Debt Obligations Payable | 4 | The balance outstanding on the credit agreement and promissory note. | |||
Statement of Operations | |||||
Management Fees: Affiliates | 2 | Fees earned for managing Fortress Funds, generally determined based on the size of such funds. | |||
Management Fees: Non-Affiliates | 2 | Fees earned from managed accounts and our traditional fixed income asset management business, generally determined based on the amount managed. | |||
Incentive Income: Affiliates | 2 | Income earned from Fortress Funds, based on the performance of such funds. | |||
Incentive Income: Non- Affiliates | 2 | Income earned from managed accounts, based on the performance of such accounts. | |||
Compensation and Benefits | 7 | Includes equity-based, profit-sharing and other compensation to employees. | |||
Gains (Losses) | 3 | The result of asset dispositions or changes in the fair value of investments or other financial instruments which are marked to market (including the Castles and GAGFAH). | |||
Tax Receivable Agreement Liability Adjustment | 5 | Represents a change in the amount due to the Principals under the tax receivable agreement. | |||
Earnings (Losses) from Equity Method Investees | 3 | Fortress’s share of the net earnings (losses) of the Fortress Funds resulting from its principal investments. | |||
Income Tax Benefit (Expense) | 5 | The net tax result related to the current period. Certain of Fortress’s revenues are not subject to taxes because they do not flow through taxable entities. Furthermore, Fortress has significant permanent differences between its GAAP and tax basis earnings. | |||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Principals’ and Others’ Interests in (Income) Loss of Consolidated Subsidiaries | 6 | Primarily the Principals’ and employees’ share of Fortress’s earnings based on their ownership interests in subsidiaries, including Fortress Operating Group. | |||
Earnings Per Share | 8 | GAAP earnings per Class A share based on Fortress’s capital structure, which is comprised of outstanding and unvested equity interests, including interests which participate in Fortress’s earnings, at both the Fortress and subsidiary levels. | |||
Other | |||||
Distributions | 8 | A summary of dividends and distributions, and the related outstanding shares and units, is provided. | |||
Distributable Earnings | 10 | A presentation of our financial performance by segment (fund type) is provided, on the basis of the operating performance measure used by Fortress’s management committee. | |||
The FASB has recently issued or discussed a number of proposed standards on such topics as consolidation, financial statement presentation, revenue recognition, leases, financial instruments, hedging, and contingencies. Some of the proposed changes are significant and could have a material impact on Fortress’s financial reporting. Fortress has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. | |||||
The accompanying consolidated financial statements and related notes of Fortress have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of Fortress’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with Fortress’s consolidated financial statements for the year ended December 31, 2012 and notes thereto included in Fortress’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2013. Capitalized terms used herein, and not otherwise defined, are defined in Fortress’s consolidated financial statements for the year ended December 31, 2012. | |||||
Certain prior period amounts have been reclassified to conform to the current period's presentation. |
MANAGEMENT_AGREEMENTS_AND_FORT
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Management and Agreement Fortress Funds | ' | ||||||||||||||||||||||||||||||||||||||||||||||
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ||||||||||||||||||||||||||||||||||||||||||||||
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress has two principal sources of income from its agreements with the Fortress Funds: contractual management fees, which are generally based on a percentage of fee paying assets under management, and related incentive income, which is generally based on a percentage of returns, or profits, subject to the achievement of performance criteria. Substantially all of Fortress's net assets, after deducting the portion attributable to principals' and others' interests, are a result of principal investments in, or receivables from, these funds. The terms of agreements between Fortress and the Fortress Funds are generally determined in connection with third party fund investors. | |||||||||||||||||||||||||||||||||||||||||||||||
The Fortress Funds are divided into segments and Fortress’s agreements with each are detailed below. | |||||||||||||||||||||||||||||||||||||||||||||||
Management Fees, Incentive Income and Related Profit Sharing Expense | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress recognized management fees and incentive income as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 34,281 | $ | 29,891 | $ | 100,781 | $ | 89,148 | |||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 123 | 112 | 345 | 283 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 6,433 | 708 | 21,742 | 1,815 | |||||||||||||||||||||||||||||||||||||||||||
Castles | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 13,289 | 13,744 | 42,040 | 38,427 | |||||||||||||||||||||||||||||||||||||||||||
Management fees, options: affil. | — | 8,298 | 36,470 | 21,524 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 643 | 359 | 2,959 | 3,563 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 4,178 | — | 5,378 | — | |||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 24,313 | 14,783 | 61,373 | 47,946 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 6,324 | 3,395 | 18,008 | 9,592 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 10,886 | 563 | 17,350 | 1,436 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | 1,138 | 188 | 3,625 | 312 | |||||||||||||||||||||||||||||||||||||||||||
Credit Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 25,455 | 24,688 | 75,284 | 76,005 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 26 | 58 | 151 | 313 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 10,756 | 466 | 31,330 | 1,749 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | — | — | 130 | |||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 23,633 | 21,402 | 71,115 | 63,885 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 35 | 36 | 104 | 108 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 8,681 | 4,239 | 27,376 | 33,994 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | 769 | 600 | 1,145 | 1,122 | |||||||||||||||||||||||||||||||||||||||||||
Logan Circle | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 622 | — | 1,894 | — | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 8,210 | 6,802 | 23,964 | 18,675 | |||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 121,593 | $ | 112,806 | $ | 388,957 | $ | 336,935 | |||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | $ | 15,361 | $ | 10,762 | $ | 45,531 | $ | 32,534 | |||||||||||||||||||||||||||||||||||||||
Incentive income: affil. (A) | $ | 40,934 | $ | 5,976 | $ | 103,176 | $ | 38,994 | |||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | $ | 1,907 | $ | 788 | $ | 4,770 | $ | 1,564 | |||||||||||||||||||||||||||||||||||||||
(A) See “Deferred Incentive Income” below. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | |||||||||||||||||||||||||||||||||||||||||||||||
Deferred Incentive Income | |||||||||||||||||||||||||||||||||||||||||||||||
Incentive income from certain Fortress Funds, primarily private equity funds and credit PE funds, is received when such funds realize returns, or profits, based on the related agreements. However, this incentive income is subject to contingent repayment by Fortress to the funds until certain overall fund performance criteria are met. Accordingly, Fortress does not recognize this incentive income as revenue until the related contingencies are resolved. Until such time, this incentive income is recorded on the balance sheet as deferred incentive income and is included as “distributed-unrecognized” deferred incentive income in the table below. Incentive income from such funds, based on their net asset value, which has not yet been received is not recorded on the balance sheet and is included as “undistributed” deferred incentive income in the table below. | |||||||||||||||||||||||||||||||||||||||||||||||
Incentive income from certain Fortress Funds is earned based on achieving annual performance criteria. Accordingly, this incentive income is recorded as revenue at year end (in the fourth quarter of each year), is generally received subsequent to year end, and has not been recognized for these funds during the nine months ended September 30, 2013 and 2012. If the amount of incentive income contingent on achieving annual performance criteria was not contingent on the results of the subsequent quarters, $185.9 million and $108.0 million of additional incentive income from affiliates would have been recognized during the nine months ended September 30, 2013 and 2012, respectively. Incentive income based on achieving annual performance criteria that has not yet been recognized, if any, is not recorded on the balance sheet and is included as “undistributed” deferred incentive income in the table below. | |||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013 and 2012, Fortress recognized $27.4 million and $34.0 million, respectively, of incentive income distributions from its credit PE funds which represented “tax distributions.” These tax distributions are not subject to clawback and reflect a cash amount approximately equal to the amount expected to be paid out by Fortress for taxes or tax-related distributions on the allocated income from such funds. | |||||||||||||||||||||||||||||||||||||||||||||||
Deferred incentive income from the Fortress Funds was comprised of the following, on an inception-to-date basis. This does not include any amounts related to third party funds, receipts from which are reflected as Other Liabilities until all contingencies are resolved. | |||||||||||||||||||||||||||||||||||||||||||||||
Distributed-Gross | Distributed-Recognized (A) | Distributed-Unrecognized (B) | Undistributed net of intrinsic clawback (C) (D) | ||||||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of December 31, 2012 | $ | 894,278 | $ | (662,432 | ) | $ | 231,846 | $ | 527,432 | ||||||||||||||||||||||||||||||||||||||
Fortress Funds which matured (no longer subject | (2,180 | ) | 2,180 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
to clawback) | |||||||||||||||||||||||||||||||||||||||||||||||
Share of income (loss) of Fortress Funds | N/A | N/A | N/A | 397,018 | |||||||||||||||||||||||||||||||||||||||||||
Distribution of private equity incentive income | 106,709 | N/A | 106,709 | (106,709 | ) | ||||||||||||||||||||||||||||||||||||||||||
Recognition of previously deferred incentive income | N/A | (50,262 | ) | (50,262 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Changes in foreign exchange rates | (1,111 | ) | — | (1,111 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of September 30, 2013 | $ | 997,696 | $ | (710,514 | ) | $ | 287,182 | $ | 817,741 | ||||||||||||||||||||||||||||||||||||||
Deferred incentive income including Fortress Funds | $ | 1,051,352 | $ | (764,170 | ) | ||||||||||||||||||||||||||||||||||||||||||
which matured | |||||||||||||||||||||||||||||||||||||||||||||||
(A) | All related contingencies have been resolved. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Reflected on the balance sheet. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | At September 30, 2013, the net undistributed incentive income is comprised of $903.5 million of gross undistributed incentive income, net of $85.8 million of intrinsic clawback (see next page). The net undistributed incentive income represents the amount that would be received by Fortress from the related funds if such funds were liquidated on September 30, 2013 at their net asset values. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | From inception to September 30, 2013, Fortress has paid $433.6 million of compensation expense under its employee profit sharing arrangements (Note 7) in connection with distributed incentive income, of which $27.9 million has not been expensed because management has determined that it is not probable of being incurred as an expense and will be recovered from the related individuals. If the $903.5 million of gross undistributed incentive income were realized, Fortress would recognize and pay an additional $370.3 million of compensation expense. | ||||||||||||||||||||||||||||||||||||||||||||||
The following tables summarize information with respect to the Fortress Funds, other than the Castles, and their related incentive income thresholds as of September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
NIH (1998) | In Liquidation | $ | 415,574 | $ | (823,588 | ) | $ | — | $ N/A | $ | — | $ N/A | $ | — | $ | 94,513 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Fund I (1999) (K) | Closed May-13 | 1,015,943 | (2,847,929 | ) | — | N/A | — | N/A | — | 344,939 | — | — | — | ||||||||||||||||||||||||||||||||||
Fund II (2002) | 13-Feb | 1,974,298 | (3,299,244 | ) | 125,849 | 1,450,795 | — | N/A | — | 287,985 | 27,288 | 2,490 | 1,594 | ||||||||||||||||||||||||||||||||||
Fund III (2004) | 15-Jan | 2,762,992 | (1,576,429 | ) | 2,830,089 | 1,643,526 | 1,687,083 | 43,557 | — | 66,903 | 66,903 | 66,903 | 45,108 | ||||||||||||||||||||||||||||||||||
Fund III Coinvestment (2004) | 15-Jan | 273,649 | (178,272 | ) | 118,548 | 23,171 | 204,272 | 181,101 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV (2006) | 17-Jan | 3,639,561 | (587,014 | ) | 4,388,567 | 1,336,020 | 2,226,991 | 890,971 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV Coinvestment (2006) | 17-Jan | 762,696 | (138,625 | ) | 583,800 | (40,271 | ) | 477,142 | 517,413 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Fund V (2007) | 18-Feb | 4,103,713 | (143,711 | ) | 4,387,576 | 427,574 | 1,925,595 | 1,498,021 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund V Coinvestment (2007) | 18-Feb | 990,480 | (155 | ) | 652,927 | (337,398 | ) | 508,968 | 846,366 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
GAGACQ Fund (2004) (GAGFAH) | Closed | 545,663 | (595,401 | ) | N/A | N/A | N/A | N/A | N/A | 51,476 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||
9-Nov | |||||||||||||||||||||||||||||||||||||||||||||||
FRID (2005) (GAGFAH) | 15-Apr | 1,220,229 | (570,599 | ) | 540,433 | (109,197 | ) | 818,454 | 927,651 | — | 16,447 | 16,447 | 16,447 | 10,041 | |||||||||||||||||||||||||||||||||
FRIC (2006) (Brookdale) | 16-May | 328,754 | (17,462 | ) | 226,547 | (84,745 | ) | 235,031 | 319,776 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
FICO (2006) (Intrawest) | 17-Jan | 724,525 | (5 | ) | (59,651 | ) | (784,171 | ) | 482,939 | 1,267,110 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
FHIF (2006) (Holiday) | 17-Jan | 1,543,463 | (63,178 | ) | 2,287,924 | 807,639 | 938,698 | 131,059 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FECI (2007) (Florida East Coast / Flagler) | 18-Feb | 982,779 | (165 | ) | 962,051 | (20,563 | ) | 592,246 | 612,809 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | — | $ | 862,263 | $ | 110,638 | $ | 85,840 | $ | 56,743 | ||||||||||||||||||||||||||||||||||||||
Private Equity Funds in Investment Period | |||||||||||||||||||||||||||||||||||||||||||||||
WWTAI (2011) | 24-Jun | $ | 208,442 | $ | (15,304 | ) | $ | 209,767 | $ | 16,629 | $ | — | N/A | $ | 1,564 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
MSR Opportunities Fund I A (2012) | 22-Aug | 313,554 | (19,325 | ) | 322,868 | 28,639 | — | N/A | 2,765 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities Fund I B (2012) | 22-Aug | 75,946 | (4,680 | ) | 78,111 | 6,845 | — | N/A | 684 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II A (2013) | 23-Jul | 28,139 | — | 27,141 | (998 | ) | 25 | 1,023 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II B (2013) | 23-Jul | 401 | — | 387 | (14 | ) | — | 14 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II MA I (2013) | 23-Jul | 6,461 | — | 6,232 | (229 | ) | 6 | 235 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
$ | 5,013 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Long Dated Value Fund I (2005) | 30-Apr | $ | 267,325 | $ | (65,011 | ) | $ | 303,409 | $ | 101,095 | $ | 122,540 | $ | 21,445 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Long Dated Value Fund II (2005) | 30-Nov | 274,280 | (124,635 | ) | 200,810 | 51,165 | 98,575 | 47,410 | — | 412 | — | — | — | ||||||||||||||||||||||||||||||||||
Long Dated Value Fund III (2007) | Feb-32 | 343,156 | (252,561 | ) | 217,333 | 126,738 | — | N/A | 18,166 | 5,042 | — | — | — | ||||||||||||||||||||||||||||||||||
LDVF Patent Fund (2007) | 27-Nov | 45,466 | (41,354 | ) | 41,465 | 37,353 | — | N/A | 2,884 | 461 | — | — | — | ||||||||||||||||||||||||||||||||||
Real Assets Fund (2007) | 17-Jun | 359,024 | (275,723 | ) | 193,582 | 110,281 | — | N/A | 11,912 | 5,285 | — | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund (2008) | 20-Oct | 5,493,685 | (6,366,576 | ) | 1,422,116 | 2,295,007 | — | N/A | 189,682 | 260,973 | 99,291 | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund II (2009) | 22-Jul | 2,162,162 | (1,770,179 | ) | 1,240,221 | 848,238 | — | N/A | 120,831 | 45,490 | 8,460 | — | — | ||||||||||||||||||||||||||||||||||
FCO Managed Account (2010) | 22-Jun | 549,492 | (380,679 | ) | 391,695 | 222,882 | — | N/A | 34,532 | 7,784 | — | — | — | ||||||||||||||||||||||||||||||||||
SIP Managed Account (2010) | 20-Sep | 11,000 | (28,768 | ) | 8,295 | 26,063 | — | N/A | 1,659 | 3,554 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund (2009) | 19-Jun | 1,073,051 | (951,289 | ) | 568,551 | 446,789 | — | N/A | 41,512 | 51,526 | 20,277 | — | — | ||||||||||||||||||||||||||||||||||
$ | 421,178 | $ | 380,527 | $ | 128,028 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Credit PE Funds in Investment Period | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Opportunities Fund III (2011) | 24-Mar | 1,446,817 | (565,323 | ) | 1,177,666 | 296,172 | — | N/A | 49,826 | 8,135 | 8,135 | — | — | ||||||||||||||||||||||||||||||||||
FCO Managed Accounts (2008-2012) | Oct-21 to Mar-27 | 2,948,653 | (2,141,672 | ) | 1,683,258 | 876,277 | — | N/A | 104,626 | 69,067 | 38,773 | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Yen) (2011) | 21-Dec | 419,069 | (125,469 | ) | 347,117 | 53,517 | — | N/A | 8,761 | 1,963 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Dollar) (2011) | 21-Dec | 354,099 | (85,249 | ) | 316,183 | 47,333 | — | N/A | 6,322 | 2,752 | — | — | — | ||||||||||||||||||||||||||||||||||
Net Lease Fund I (2010) | 20-Feb | 149,595 | (80,240 | ) | 142,209 | 72,854 | — | N/A | 8,034 | 1,545 | 1,545 | — | — | ||||||||||||||||||||||||||||||||||
Global Opportunities Fund (2010) | 20-Sep | 223,672 | (69,254 | ) | 205,821 | 51,403 | — | N/A | 10,030 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Life Settlements Fund (2010) | 22-Dec | 348,174 | (94,254 | ) | 237,362 | (16,558 | ) | 54,324 | 70,882 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Life Settlements Fund MA (2010) | 22-Dec | 28,654 | (7,696 | ) | 19,447 | (1,511 | ) | 4,462 | 5,973 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Real Estate Opportunities Fund (2011) | 24-Sep | 304,730 | (77,022 | ) | 262,940 | 35,232 | — | N/A | 2,431 | 629 | 63 | — | — | ||||||||||||||||||||||||||||||||||
Real Estate Opportunities REOC Fund (2011) | 23-Oct | 31,260 | (8,904 | ) | 28,421 | 6,065 | — | N/A | 1,207 | — | — | — | — | ||||||||||||||||||||||||||||||||||
$ | 191,237 | $ | 84,091 | $ | 48,516 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Incentive Income Eligible NAV (L) | Gain to Cross Incentive Income Threshold (M) | Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold (N) | Undistributed Incentive Income (O) | Year to Date Incentive Income Crystallized (P) | |||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Macro Funds (Q) (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 1,497,640 | $ | 9,154 | 82.5 | % | $ | 24,875 | $ | 15,719 | |||||||||||||||||||||||||||||||||||||
Single investor funds | 918,685 | 4,505 | 28.9 | % | 5,390 | 91 | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 17,977 | 16,278 | N/A | 304 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 173,900 | 114,105 | N/A | 2,951 | — | ||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 1,147,066 | 409 | 96.8 | % | 22,054 | 3,725 | |||||||||||||||||||||||||||||||||||||||||
Asia Macro Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 1,556,613 | 5,230 | 66.1 | % | 21,212 | 1,375 | |||||||||||||||||||||||||||||||||||||||||
Managed accounts | 191,060 | — | 100 | % | 3,027 | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Convex Asia Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund Investments | 106,210 | 3,090 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Partners Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 55,680 | 33,877 | 0.1 | % | 1 | — | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 132,251 | 24,848 | N/A | 2,477 | — | ||||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Special Opportunities Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 3,717,456 | $ | — | 100 | % | $ | 103,834 | $ | — | |||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 96,081 | 1,606 | N/A | 5,016 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 233,729 | 69,289 | N/A | 4,044 | — | ||||||||||||||||||||||||||||||||||||||||||
Main fund investments (liquidating) (U) | 853,839 | — | 100 | % | 85,290 | 28,480 | |||||||||||||||||||||||||||||||||||||||||
Managed accounts | 5,311 | 47,666 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Worden Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 223,026 | — | 100 | % | 5,677 | 2,680 | |||||||||||||||||||||||||||||||||||||||||
Value Recovery Funds (V) | |||||||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 22,359 | 4,195 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
(A) | Vintage represents the year in which the fund was formed. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Represents the contractual maturity date including the assumed exercise of all extension options, which in some cases may require the approval of the applicable fund advisory board. Private equity funds that have reached their maturity date are included in the table to the extent they have generated incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | Includes an increase to the NAV surplus related to the U.S. income tax expense of certain investment entities, which is considered a distribution for the purposes of computing incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | A NAV deficit represents the gain needed to cross the incentive income threshold (as described in (F) below), excluding the impact of any relevant performance (i.e. preferred return) thresholds (as described in (E) below). | ||||||||||||||||||||||||||||||||||||||||||||||
(E) | Represents the gain needed to achieve the current relevant performance thresholds, assuming the gain described in (D) above is already achieved. | ||||||||||||||||||||||||||||||||||||||||||||||
(F) | Represents the immediate increase in NAV needed for Fortress to begin earning incentive income, including the achievement of any relevant performance thresholds. It does not include the amount needed to earn back intrinsic clawback (see (J) below), if any. Incentive income is not recorded as revenue until it is received and any related contingencies are resolved (see (I) below). | ||||||||||||||||||||||||||||||||||||||||||||||
(G) | Represents the amount of additional incentive income Fortress would receive if the fund were liquidated at the end of the period at its NAV. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
(H) | Represents the amount of incentive income previously received from the fund since inception. | ||||||||||||||||||||||||||||||||||||||||||||||
(I) | Represents the amount of incentive income previously received from the fund which is still subject to contingencies and is therefore recorded on the consolidated balance sheet as Deferred Incentive Income. This amount will either be recorded as revenue when all related contingencies are resolved, or, if the fund does not meet certain performance thresholds, will be returned by Fortress to the fund (i.e., “clawed back”). | ||||||||||||||||||||||||||||||||||||||||||||||
(J) | Represents the amount of incentive income previously received from the fund that would be clawed back (i.e., returned by Fortress to the fund) if the fund were liquidated at the end of the period at its NAV, excluding the effect of any tax adjustments. Employees, former employees and affiliates of Fortress would be required to return a portion of this incentive income that was paid to them under profit sharing arrangements. “Gross” and “Net” refer to amounts that are gross and net, respectively, of this employee/affiliate portion of the intrinsic clawback. Fortress remains liable to the funds for these amounts even if it is unable to collect the amounts from employees/affiliates. Fortress withheld a portion of the amounts due to employees under these profit sharing arrangements as a reserve against future clawback; as of September 30, 2013, Fortress held $41.0 million of such amounts on behalf of employees related to all of the private equity funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(K) | The Fund I distributed incentive income amount is presented for the total fund, of which Fortress was entitled to approximately 50%. | ||||||||||||||||||||||||||||||||||||||||||||||
(L) | Represents the portion of a fund’s NAV or trading level that is eligible to earn incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(M) | Represents, for those fund investors whose NAV is below the performance threshold Fortress needs to obtain before it can earn incentive income from such investors (their “incentive income threshold” or “high water mark”), the amount by which their aggregate incentive income thresholds exceed their aggregate NAVs. The amount by which the NAV of each investor within this category is below their respective incentive income threshold varies and, therefore, Fortress may begin earning incentive income from certain investors before this entire amount is earned back. Fortress earns incentive income whenever the assets of new investors, as well as of investors whose NAV exceeds their incentive income threshold, increase in value. | ||||||||||||||||||||||||||||||||||||||||||||||
(N) | Represents the percentage which is computed by dividing (i) the aggregate NAV of all investors who are at or above their respective incentive income thresholds, by (ii) the total incentive income eligible NAV of the fund. The amount by which the NAV of each fund investor who is not in this category is below their respective incentive income threshold may vary, and may vary significantly. This percentage represents the performance of only the main fund investments and managed accounts relative to their respective incentive income thresholds. It does not incorporate the impact of unrealized losses on sidepocket investments that can reduce the amount of incentive income earned from certain funds. See footnote (R) below. | ||||||||||||||||||||||||||||||||||||||||||||||
(O) | Represents the amount of additional incentive income Fortress would earn from the fund if it were liquidated at the end of the period at its NAV. This amount is currently subject to performance contingencies generally until the end of the year or, in the case of sidepocket investments, until such investments are realized. For the Value Recovery Fund managed accounts, Fortress can earn incentive income if aggregate realizations exceed an agreed threshold. Main Fund Investments (Liquidating) pay incentive income only after all capital is returned. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
(P) | Represents the amount of incentive income Fortress has earned in the current period which is not subject to clawback. | ||||||||||||||||||||||||||||||||||||||||||||||
(Q) | The Drawbridge Global Macro SPV (the “SPV”), which was established in February 2009 to liquidate illiquid investments and distribute the proceeds to then existing investors, is not subject to incentive income and is therefore not presented in the table. However, realized gains or losses within the SPV can decrease or increase, respectively, the gain needed to cross the incentive income threshold for investors with a corresponding investment in the main fund. The unrealized gains and losses within the SPV at September 30, 2013, as if they became realized, would not materially impact the amounts presented in the table. | ||||||||||||||||||||||||||||||||||||||||||||||
(R) | Represents investments held in sidepockets (also known as special investment accounts), which generally have investment profiles similar to private equity funds. The performance of these investments may impact Fortress’s ability to earn incentive income from main fund investments. For the credit hedge funds and Fortress Partners Funds, realized and unrealized losses from individual sidepockets below original cost may reduce the incentive income earned from main fund investments. For the Macro Funds, only realized losses from individual sidepockets reduce the incentive income earned from main fund investments. Based on current unrealized losses in Macro Fund sidepockets, if all of the Macro Fund sidepockets were liquidated at their NAV at September 30, 2013, the undistributed incentive income from the Macro main fund would decrease by $0.9 million. | ||||||||||||||||||||||||||||||||||||||||||||||
(S) | Represents investments held in sidepockets for investors with no corresponding investment in the related main fund investments. In the case of the Macro Funds, such investors may have investments in the SPV (see (Q) above). | ||||||||||||||||||||||||||||||||||||||||||||||
(T) | Includes onshore and offshore funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(U) | Relates to accounts where investors have provided return of capital notices and are subject to payout as underlying fund investments are realized. | ||||||||||||||||||||||||||||||||||||||||||||||
(V) | Excludes the Value Recovery Funds which had a NAV of $426.6 million at September 30, 2013. Fortress began managing the third party originated Value Recovery Funds in June 2009 and generally does not expect to earn any significant incentive income from the fund investments. | ||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, Fortress formed a new fixed income fund which had a net asset value of $234.2 million as of September 30, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds and Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, Fortress formed new Private Equity funds which had capital commitments as follows as of September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 15,856 | |||||||||||||||||||||||||||||||||||||||||||||
Fortress's affiliates | 400 | ||||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 1,083,744 | ||||||||||||||||||||||||||||||||||||||||||||||
Total capital commitments | $ | 1,100,000 | |||||||||||||||||||||||||||||||||||||||||||||
In addition, Fortress raised equity within Newcastle and Eurocastle as described in Note 3. | |||||||||||||||||||||||||||||||||||||||||||||||
During the three months ended September 30, 2013, Fortress entered into two senior living property management agreements with Newcastle in connection with additional properties acquired by Newcastle. Fortress receives management fees equal to 6.0% of revenues (as defined in the agreements) for the first two years and 7.0% thereafter. In addition, Fortress is reimbursed for certain expenses, including all of the compensation expense associated with on-site employees. | |||||||||||||||||||||||||||||||||||||||||||||||
In April 2013, Eurocastle (Note 3) completed a restructuring process that resulted in the conversion of its outstanding convertible debt. As part of that restructuring, Fortress entered into an amended management agreement with Eurocastle that reduced the AUM used to compute Eurocastle's management fees from €1.5 billion to €0.3 billion as of April 1, 2013, and in doing so also reduced the earnings threshold required for Fortress to earn incentive income from Eurocastle. Following the conversion of its outstanding convertible debt, Eurocastle effected a one for two hundred reverse split of its common stock. | |||||||||||||||||||||||||||||||||||||||||||||||
In May 2013, Fund I was substantially liquidated. In connection with this liquidation: (i) Fortress received its share of the incentive income of $4.9 million from Fund I in the form of cash and equity interests in three liquidating entities, (ii) Fortress acquired NIH's equity interests in these entities, related to its share of the Fund I incentive income, for $1.3 million, (iii) Fortress sold substantially all of its interests in two of these entities, one each to Eurocastle and a Fortress credit hedge fund, for $2.2 million and $0.5 million, respectively, (iv) Eurocastle and the Fortress credit hedge fund acquired additional equity interests in these two entities from the former Fund I investors such that they own approximately 81% of these entities, (v) Fortress acquired additional equity interests in the third liquidating entity from the former Fund I investors for $8.0 million such that it owns approximately 81% of this entity, and (vi) Fortress made profit sharing payments of approximately $1.8 million in connection with its realization of incentive income. The sale described in (iii) did not qualify for sale accounting treatment under GAAP. As a result, Fortress has recorded an investment and a liability each in the amount of $2.7 million; this treatment did not and is not expected to have an impact on equity or net income. The acquisition described in (v) resulted in the consolidation of this liquidating entity by Fortress. Furthermore, NIH monetized substantially all of its remaining assets (primarily its interests in Fund I as described above) and was substantially liquidated in June 2013. Fortress received $0.6 million of proceeds from NIH's liquidating distribution. These liquidations did not have an impact on Fortress's management fees. | |||||||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds and Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, Fortress formed, or became the manager of, hedge funds with net asset values as follows as of September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||
Liquid | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 100 | |||||||||||||||||||||||||||||||||||||||||||||
Fortress's affiliates | — | ||||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 584,524 | ||||||||||||||||||||||||||||||||||||||||||||||
Total NAV (A) | $ | 584,624 | |||||||||||||||||||||||||||||||||||||||||||||
(A) Or other fee paying basis, as applicable. Approximately $435.2 million represents a transfer of interest from another liquid hedge fund. |
INVESTMENTS_AND_FAIR_VALUE
INVESTMENTS AND FAIR VALUE | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investments and Fair Value | ' | |||||||||||||||||||||||||||||||
INVESTMENTS AND FAIR VALUE | ' | |||||||||||||||||||||||||||||||
INVESTMENTS AND FAIR VALUE | ||||||||||||||||||||||||||||||||
Investments consist primarily of investments in equity method investees and options in these investees. The investees are primarily Fortress Funds. | ||||||||||||||||||||||||||||||||
Investments can be summarized as follows: | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Equity method investees | $ | 1,183,916 | $ | 1,135,329 | ||||||||||||||||||||||||||||
Equity method investees, held at fair value (A) | 79,476 | 76,355 | ||||||||||||||||||||||||||||||
Total equity method investments | $ | 1,263,392 | $ | 1,211,684 | ||||||||||||||||||||||||||||
Options in equity method investees | $ | 100,123 | $ | 38,077 | ||||||||||||||||||||||||||||
(A) | Includes publicly traded private equity portfolio companies, primarily GAGFAH, as well as the Castles (NCT, NRZ and ECT). | |||||||||||||||||||||||||||||||
Gains (losses) can be summarized as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 36 | $ | 57 | $ | (335 | ) | $ | 548 | |||||||||||||||||||||||
Net realized gains (losses) from affiliate investments | 6,616 | (65 | ) | 6,499 | (106 | ) | ||||||||||||||||||||||||||
Net unrealized gains (losses) | 52 | (498 | ) | 5,654 | (798 | ) | ||||||||||||||||||||||||||
Net unrealized gains (losses) from affiliate investments | 799 | (1,722 | ) | 33,760 | 29,898 | |||||||||||||||||||||||||||
Total gains (losses) | $ | 7,503 | $ | (2,228 | ) | $ | 45,578 | $ | 29,542 | |||||||||||||||||||||||
These gains (losses) were generated as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Mark to fair value on affiliate investments and options | $ | 7,008 | $ | (1,726 | ) | $ | 39,590 | $ | 29,895 | |||||||||||||||||||||||
Mark to fair value on derivatives | (1,476 | ) | (498 | ) | 3,805 | (866 | ) | |||||||||||||||||||||||||
Mark to fair value on equity securities | 1,527 | — | 1,524 | — | ||||||||||||||||||||||||||||
Other | 444 | (4 | ) | 659 | 513 | |||||||||||||||||||||||||||
Total gains (losses) | $ | 7,503 | $ | (2,228 | ) | $ | 45,578 | $ | 29,542 | |||||||||||||||||||||||
Investments in Equity Method Investees | ||||||||||||||||||||||||||||||||
Fortress holds investments in certain Fortress Funds which are recorded based on the equity method of accounting. Fortress’s maximum exposure to loss with respect to these entities is generally equal to its investment plus its basis in any options received from such entities, plus any receivables from such entities as described in Note 6. In addition, unconsolidated affiliates also hold ownership interests in certain of these entities. Summary financial information related to these investments is as follows: | ||||||||||||||||||||||||||||||||
Fortress’s Investment | Fortress’s Equity in Net Income (Loss) | |||||||||||||||||||||||||||||||
September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Private equity funds, excluding NIH | $ | 806,875 | $ | 720,817 | $ | 44,552 | $ | 35,939 | $ | 79,929 | $ | 70,644 | ||||||||||||||||||||
NIH | — | 1,177 | — | 50 | (554 | ) | 159 | |||||||||||||||||||||||||
Publicly traded portfolio companies (A)(B) | 64,176 | 67,313 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Newcastle (B) | 5,828 | 9,002 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
New Residential (B) | 6,866 | — | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Eurocastle (B) | 2,606 | 40 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total private equity | 886,351 | 798,349 | 44,552 | 35,989 | 79,375 | 70,803 | ||||||||||||||||||||||||||
Liquid hedge funds | 166,460 | 180,664 | 7,525 | 7,295 | 14,138 | 14,050 | ||||||||||||||||||||||||||
Credit hedge funds | 57,101 | 58,507 | 3,372 | 3,445 | 9,037 | 8,791 | ||||||||||||||||||||||||||
Credit PE funds | 145,274 | 166,482 | 5,311 | 5,446 | 23,161 | 16,532 | ||||||||||||||||||||||||||
Other | 8,206 | 7,682 | (252 | ) | (141 | ) | (196 | ) | 241 | |||||||||||||||||||||||
$ | 1,263,392 | $ | 1,211,684 | $ | 60,508 | $ | 52,034 | $ | 125,515 | $ | 110,417 | |||||||||||||||||||||
(A) | Represents Fortress’s direct investments in the common stock of publicly traded private equity portfolio companies, primarily GAGFAH. | |||||||||||||||||||||||||||||||
(B) | Fortress elected to record these investments at fair value pursuant to the fair value option for financial instruments. | |||||||||||||||||||||||||||||||
A summary of the changes in Fortress’s investments in equity method investees is as follows: | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Private Equity | Liquid | Credit | ||||||||||||||||||||||||||||||
NIH | Other Funds | Publicly Traded Portfolio Companies and Castles (A) | Hedge Funds | Hedge Funds | PE Funds | Other | Total | |||||||||||||||||||||||||
Investment, beginning | $ | 1,177 | $ | 720,817 | $ | 76,355 | $ | 180,664 | $ | 58,507 | $ | 166,482 | $ | 7,682 | $ | 1,211,684 | ||||||||||||||||
Earnings from equity method investees | (554 | ) | 79,929 | N/A | 14,138 | 9,037 | 23,161 | (196 | ) | 125,515 | ||||||||||||||||||||||
Other comprehensive income from equity | 12 | — | N/A | — | — | — | — | 12 | ||||||||||||||||||||||||
method investees | ||||||||||||||||||||||||||||||||
Contributions to equity method investees (B) | — | 16,084 | 319 | 58,663 | 149,892 | 22,282 | 854 | 248,094 | ||||||||||||||||||||||||
Distributions of earnings from equity | — | (8,921 | ) | N/A | (17,850 | ) | (9,373 | ) | (17,428 | ) | (4 | ) | (53,576 | ) | ||||||||||||||||||
method investees | ||||||||||||||||||||||||||||||||
Distributions of capital from equity | (635 | ) | (3,328 | ) | N/A | (69,155 | ) | (150,962 | ) | (49,350 | ) | (130 | ) | (273,560 | ) | |||||||||||||||||
method investees | ||||||||||||||||||||||||||||||||
Total distributions from equity method | (635 | ) | (12,249 | ) | N/A | (87,005 | ) | (160,335 | ) | (66,778 | ) | (134 | ) | (327,136 | ) | |||||||||||||||||
investees (B) | ||||||||||||||||||||||||||||||||
Mark to fair value - during period (C) | N/A | 648 | 11,003 | N/A | N/A | N/A | N/A | 11,651 | ||||||||||||||||||||||||
Translation adjustment | — | (1 | ) | 1,726 | — | — | 151 | — | 1,876 | |||||||||||||||||||||||
Dispositions | — | — | (9,927 | ) | — | — | (24 | ) | — | (9,951 | ) | |||||||||||||||||||||
Reclassification to Due to Affiliates (D) | — | 1,647 | — | — | — | — | — | 1,647 | ||||||||||||||||||||||||
Investment, ending | $ | — | $ | 806,875 | $ | 79,476 | $ | 166,460 | $ | 57,101 | $ | 145,274 | $ | 8,206 | $ | 1,263,392 | ||||||||||||||||
Ending balance of undistributed earnings | $ | — | $ | 94,421 | $ N/A | $ | 5,722 | $ | 1,774 | $ | 5,818 | $ | 2,046 | $ | 109,781 | |||||||||||||||||
(A) | Fortress elected to record these investments at fair value pursuant to the fair value option for financial instruments. | |||||||||||||||||||||||||||||||
(B) | The amounts presented above can be reconciled to the amounts presented on the statement of cash flows as follows: | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Contributions | Distributions of Capital | |||||||||||||||||||||||||||||||
Per Consolidated Statements of Cash Flows | $ | 25,885 | $ | 257,829 | ||||||||||||||||||||||||||||
Investments of incentive receivable amounts into Fortress Funds | 206,455 | — | ||||||||||||||||||||||||||||||
Change in distributions payable out of Fortress Funds | — | 3,066 | ||||||||||||||||||||||||||||||
Net funded* | 12,398 | 12,398 | ||||||||||||||||||||||||||||||
Consolidation of private equity liquidating entity | 2,553 | — | ||||||||||||||||||||||||||||||
Other | 803 | 267 | ||||||||||||||||||||||||||||||
Per Above | $ | 248,094 | $ | 273,560 | ||||||||||||||||||||||||||||
*In some instances, a private equity style fund may need to simultaneously make both a capital call (for new investments or expenses) and a capital distribution (related to realizations from existing investments). This results in a net funding. | ||||||||||||||||||||||||||||||||
(C) | Recorded to Gains (Losses). | |||||||||||||||||||||||||||||||
(D) | Represents a portion of the general partner liability discussed in Note 9. | |||||||||||||||||||||||||||||||
The ownership percentages presented in the following tables are reflective of the ownership interests held as of the end of the respective periods. For tables which include more than one Fortress Fund, the ownership percentages are based on a weighted average by total equity of the funds as of period end. NIH, the Castles, GAGFAH and Other are not presented as they are insignificant to Fortress’s investments. | ||||||||||||||||||||||||||||||||
Private Equity Funds excluding NIH (B) | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | $ | 18,248,275 | $ | 15,944,821 | ||||||||||||||||||||||||||||
Debt | — | — | ||||||||||||||||||||||||||||||
Other liabilities | (178,957 | ) | (143,951 | ) | ||||||||||||||||||||||||||||
Equity | $ | 18,069,318 | $ | 15,800,870 | ||||||||||||||||||||||||||||
Fortress’s Investment | $ | 806,875 | $ | 720,817 | ||||||||||||||||||||||||||||
Ownership (A) | 4.5 | % | 4.6 | % | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Revenues and gains (losses) on investments | $ | 2,745,654 | $ | 2,763,969 | ||||||||||||||||||||||||||||
Expenses | (149,763 | ) | (140,842 | ) | ||||||||||||||||||||||||||||
Net Income (Loss) | $ | 2,595,891 | $ | 2,623,127 | ||||||||||||||||||||||||||||
Fortress’s equity in net income (loss) | $ | 79,929 | $ | 70,644 | ||||||||||||||||||||||||||||
Liquid Hedge Funds (C) | Credit Hedge Funds | Credit PE Funds (B) (D) | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Assets | $ | 9,293,405 | $ | 9,818,652 | $ | 9,431,681 | $ | 9,476,196 | $ | 9,536,328 | ||||||||||||||||||||||
Debt | — | (3,731,912 | ) | (3,329,686 | ) | (199,707 | ) | (75,413 | ) | |||||||||||||||||||||||
Other liabilities | (4,682,311 | ) | (315,294 | ) | (447,127 | ) | (262,226 | ) | (314,329 | ) | ||||||||||||||||||||||
Non-controlling interest | — | (2,394 | ) | (4,289 | ) | (7,887 | ) | (14,228 | ) | |||||||||||||||||||||||
Equity | $ | 6,267,484 | $ | 4,611,094 | $ | 5,769,052 | $ | 5,650,579 | $ | 9,006,376 | $ | 9,132,358 | ||||||||||||||||||||
Fortress’s Investment | $ | 166,460 | $ | 180,664 | $ | 57,101 | $ | 58,507 | $ | 145,274 | $ | 166,482 | ||||||||||||||||||||
Ownership (A) | 2.7 | % | 3.9 | % | 1 | % | 1 | % | 1.6 | % | 1.8 | % | ||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Revenues and gains (losses) | $ | 367,662 | $ | 975,979 | $ | 929,106 | $ | 1,296,556 | $ | 1,384,905 | ||||||||||||||||||||||
on investments | ||||||||||||||||||||||||||||||||
Expenses | (93,966 | ) | (182,961 | ) | (171,931 | ) | (233,363 | ) | (213,996 | ) | ||||||||||||||||||||||
Net Income (Loss) | $ | 420,916 | $ | 273,696 | $ | 793,018 | $ | 757,175 | $ | 1,063,193 | $ | 1,170,909 | ||||||||||||||||||||
Fortress’s equity in net | $ | 14,138 | $ | 14,050 | $ | 9,037 | $ | 8,791 | $ | 23,161 | $ | 16,532 | ||||||||||||||||||||
income (loss) | ||||||||||||||||||||||||||||||||
(A) | Excludes ownership interests held by other Fortress Funds, the Principals, employees and other affiliates. | |||||||||||||||||||||||||||||||
(B) | For Private Equity Funds, includes four entities which are recorded on a one quarter lag (i.e. current year balances reflected for these entities are for the period ended June 30, 2013). For Credit PE Funds, includes one entity which is recorded on a one quarter lag and several entities which are recorded on a one month lag. They are recorded on a lag because they are foreign entities, or they have substantial operations in foreign countries, and do not provide financial reports under U.S. GAAP within the reporting time frame necessary for U.S. public entities. | |||||||||||||||||||||||||||||||
(C) | In interim periods, the liquid hedge funds prepare summary financial information on a one quarter lag. For the nine months ended June 30, 2013, the liquid hedge funds recorded $754.2 million of revenues and gains (losses) on investments, $103.5 million of expenses, and $650.7 million of net income (loss). | |||||||||||||||||||||||||||||||
(D) | Includes certain entities in which Fortress has both a direct and an indirect investment. | |||||||||||||||||||||||||||||||
Investments in Variable Interest Entities | ||||||||||||||||||||||||||||||||
Fortress is not considered the primary beneficiary of, and, therefore, does not consolidate, any of the variable interest entities in which it holds an interest, except as described below. No reconsideration events occurred during the nine months ended September 30, 2013 which caused a change in Fortress’s accounting. | ||||||||||||||||||||||||||||||||
The following tables set forth certain information as of September 30, 2013 regarding variable interest entities in which Fortress holds a variable interest. The amounts presented below are included in, and not in addition to, the equity method investment tables above. | ||||||||||||||||||||||||||||||||
Entities formed during the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | ||||||||||||||||||||||||||||||||
Business Segment | Gross Assets | Financial Obligations | Fortress Investment (A) | Notes | ||||||||||||||||||||||||||||
Castles | $ | 2,929,633 | $ | 1,467,934 | $ | 60,471 | (B) | |||||||||||||||||||||||||
Credit PE Funds | 92,595 | 27,170 | 394 | (B) | ||||||||||||||||||||||||||||
Logan Circle | 240,106 | — | 126 | (B) | ||||||||||||||||||||||||||||
(A) | Represents Fortress’s maximum exposure to loss with respect to these entities, which includes direct and indirect investments in these funds, plus any receivables due from these funds. In addition to the table above, Fortress is exposed to potential changes in cash flow and revenues attributable to the management fees and/or incentive income Fortress earns from those entities. | |||||||||||||||||||||||||||||||
(B) | Fortress is not the primary beneficiary of this entity, because it does not absorb a majority of the entity's expected income or loss based on a quantitative analysis. | |||||||||||||||||||||||||||||||
All variable interest entities: | ||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Business Segment | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Notes | |||||||||||||||||||||||||
Private Equity Funds | $ | 970 | $ | — | $ | 270 | $ | 9,087 | $ | — | $ | 1,176 | (C) (D) | |||||||||||||||||||
Castles | 9,171,246 | 6,171,617 | 129,240 | 7,421,269 | 5,798,143 | 56,294 | (C) (D) | |||||||||||||||||||||||||
Liquid Hedge Funds | 3,221,910 | 868,456 | 4,089 | 4,905,876 | 2,271,914 | 27,817 | (C) (D) | |||||||||||||||||||||||||
Credit Hedge Funds | 1,909,917 | 386,868 | 3,270 | 1,771,900 | 365,135 | 46,193 | (C) (D) | |||||||||||||||||||||||||
Credit PE Funds | 1,149,350 | 374,211 | 4,839 | 1,536,067 | 418,208 | 4,483 | (C) (D) | |||||||||||||||||||||||||
Logan Circle | 240,106 | — | 126 | — | — | — | (C) (D) | |||||||||||||||||||||||||
(A) | Represents financial obligations at the fund level, which are not recourse to Fortress. Financial obligations include financial borrowings, derivative liabilities and short securities. In many cases, these funds have additional debt within unconsolidated subsidiaries. | |||||||||||||||||||||||||||||||
(B) | Represents Fortress’s maximum exposure to loss with respect to these entities, which includes direct and indirect investments in these funds, plus any receivables due from these funds. In addition to the table above, Fortress is exposed to potential changes in cash flow and revenues attributable to the management fee and/or incentive income Fortress earns from those entities. | |||||||||||||||||||||||||||||||
(C) | Fortress is not the primary beneficiary of the Castles, NIH and the Logan Circle Fund because it does not absorb a majority of their expected income or loss based on a quantitative analysis. Of the remaining entities represented herein, which primarily represent investing vehicles, intermediate entities and master funds, Fortress is not the primary beneficiary because the related funds, intermediate entities and feeder funds (which are not consolidated) are more closely associated with these entities than Fortress based on both a quantitative and qualitative analysis. The investing vehicles, intermediate entities and master funds were formed for the sole purpose of acting as investment vehicles for the related funds. | |||||||||||||||||||||||||||||||
(D) | Fortress’s investment includes management fees receivable, incentive income receivable, expense reimbursements and other receivables from these entities, as applicable. | |||||||||||||||||||||||||||||||
FCF is an entity which provides operating services to all of Fortress’s private equity funds and is reimbursed for related costs by the private equity funds based on a contractual formula. Therefore, FCF by design does not produce net income or have equity. FCF was deemed to be a VIE and Fortress, as a result of directing the operations of FCF through its management contracts with the private equity funds, and providing financial support to FCF, was deemed to be its primary beneficiary. Therefore, Fortress consolidates FCF. As of September 30, 2013, FCF’s gross assets were approximately $43.4 million, primarily comprised of affiliate receivables. Fortress’s exposure to loss from FCF is limited to its unreserved outstanding advances, which were approximately $15.3 million at September 30, 2013, plus any future advances. These advances are eliminated in consolidation. FCF’s creditors do not have recourse to Fortress’s other assets and FCF’s assets are not available to other creditors of Fortress. | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
The following table presents information regarding Fortress’s financial instruments that are recorded at fair value. Investments denominated in foreign currencies have been translated at the period end exchange rate. Changes in fair value are recorded in Gains (Losses). | ||||||||||||||||||||||||||||||||
Fair Value | Valuation Method | |||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Assets (within Investments) | ||||||||||||||||||||||||||||||||
Newcastle, New Residential and Eurocastle common shares | $ | 15,300 | $ | 9,042 | Level 1 - Quoted prices in active markets for identical assets | |||||||||||||||||||||||||||
Common stock of publicly traded | 64,176 | 67,313 | Level 1 - Quoted prices in active markets for identical assets | |||||||||||||||||||||||||||||
private equity portfolio companies, | ||||||||||||||||||||||||||||||||
primarily GAGFAH | ||||||||||||||||||||||||||||||||
Total equity method investments | $ | 79,476 | $ | 76,355 | ||||||||||||||||||||||||||||
carried at fair value | ||||||||||||||||||||||||||||||||
Newcastle, New Residential and Eurocastle options | $ | 100,123 | $ | 38,077 | Level 2 - Option valuation models using significant observable inputs | |||||||||||||||||||||||||||
Assets (within Other Assets) | ||||||||||||||||||||||||||||||||
Derivatives | $ | 6,253 | $ | 1,101 | Level 2 - See below | |||||||||||||||||||||||||||
$ | 20,984 | $ | — | Level 1 - Quoted prices in active markets for identical assets | ||||||||||||||||||||||||||||
Equity Securities (A) | ||||||||||||||||||||||||||||||||
Liabilities (within Accrued | ||||||||||||||||||||||||||||||||
Compensation and Benefits) | ||||||||||||||||||||||||||||||||
Options in affiliates granted to | $ | (15,957 | ) | $ | (10,120 | ) | Level 2 - Option valuation models using significant observable inputs | |||||||||||||||||||||||||
employees | ||||||||||||||||||||||||||||||||
Liabilities (within Other Liabilities) | ||||||||||||||||||||||||||||||||
Derivatives | $ | (2,469 | ) | $ | — | Level 2 - See below | ||||||||||||||||||||||||||
(A) | In June 2013, Fortress made a direct investment in accounts managed by Logan Circle's growth equities business. The equity investments in these accounts are owned on Fortress's behalf and are held at fair value. As of September 30, 2013, Fortress's investment was comprised of approximately $21.0 million of equity securities, classified as trading. | |||||||||||||||||||||||||||||||
In January 2013, Newcastle issued 57.5 million shares of its common stock in a public offering at a price to the public of $9.35 per share. For the purposes of compensating Fortress for its successful efforts in raising capital for Newcastle, in connection with this offering, Newcastle granted options to Fortress to purchase 5,750,000 shares of Newcastle’s common stock at the public offering price, which were valued at approximately $18.0 million. The options were fully vested upon issuance, become exercisable over thirty months and have a ten-year term. In connection with this offering, two of the Principals each purchased 106,950 shares of Newcastle at the public offering price. | ||||||||||||||||||||||||||||||||
In February 2013, Newcastle issued 23.0 million shares of its common stock in a public offering at a price to the underwriters of $10.34 per share. For the purposes of compensating Fortress for its successful efforts in raising capital for Newcastle, in connection with this offering, Newcastle granted options to Fortress to purchase 2,300,000 shares of Newcastle’s common stock with a strike price of $10.48 per share, which were valued at approximately $8.4 million. The options were fully vested upon issuance, become exercisable over thirty months and have a ten-year term. In connection with this offering, two of the Principals each purchased 95,500 shares of Newcastle at a price of $10.48 per share. | ||||||||||||||||||||||||||||||||
In May 2013, Newcastle distributed all of the common shares of its subsidiary, New Residential Investment Corp. ("New Residential," NYSE: NRZ) to its shareholders. In connection with this transaction, Fortress's options in Newcastle were exchanged for options in both Newcastle and New Residential; this resulted in no change to their aggregate strike price. As a result, Fortress owns an investment and options in New Residential, which it has elected to record at fair value. Fortress entered into a management agreement with New Residential on substantially the same terms as Newcastle. | ||||||||||||||||||||||||||||||||
In May 2013, Eurocastle issued 15.0 million shares of its common stock in a public offering at a price to the public of €7.25 per share. For the purposes of compensating Fortress for its successful efforts in raising capital for Eurocastle, in connection with this offering, Eurocastle granted options to Fortress to purchase 1,500,000 shares of Eurocastle's common stock at the public offering price, which were valued at approximately $6.2 million. The options were fully vested upon issuance, become exercisable from October 2013 and have a ten-year term. | ||||||||||||||||||||||||||||||||
In June 2013, Newcastle issued 40.3 million shares of its common stock in a public offering at a price to the public of $4.97 per share. For the purposes of compensating Fortress for its successful efforts in raising capital for Newcastle, in connection with this offering, Newcastle granted options to Fortress to purchase 4,025,000 shares of Newcastle’s common stock at the public offering price, which were valued at approximately $3.8 million. The options were fully vested upon issuance, become exercisable over thirty months and have a ten-year term. In connection with this offering, two of the Principals purchased an aggregate of 750,000 shares of Newcastle at the public offering price. | ||||||||||||||||||||||||||||||||
In July 2013, Fortress sold 862,383 shares of GAGFAH (Note 3) and realized a gain of $5.5 million. From inception through June 30, 2013, Fortress recorded a cumulative unrealized gain of $6.2 million in its investment income, resulting in a $0.7 million loss in the third quarter of 2013. | ||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Fortress is exposed to certain risks relating to its ongoing business operations. The primary risk managed by Fortress using derivative instruments is foreign currency risk. Fortress enters into foreign exchange forward contracts and options to economically hedge the risk of fluctuations in foreign exchange rates with respect to certain foreign currency denominated assets and expected revenues. Gains and losses on these contracts are reported currently in Gains (Losses). | ||||||||||||||||||||||||||||||||
Fortress’s derivative instruments are carried at fair value and are generally valued using models with observable market inputs that can be verified and which do not involve significant judgment. The significant observable inputs used in determining the fair value of our Level 2 derivative contracts are contractual cash flows and market based parameters such as foreign exchange rates. | ||||||||||||||||||||||||||||||||
Fortress’s derivatives (not designated as hedges) are recorded as follows: | ||||||||||||||||||||||||||||||||
Balance Sheet | Fair Value | Notional Amount | Gains/(Losses) (B) | Maturity | ||||||||||||||||||||||||||||
Location (A) | 30-Sep-13 | 30-Sep-13 | Nine Months Ended September 30, 2013 | Date | ||||||||||||||||||||||||||||
Foreign exchange option contracts | Other Assets | $ | 235 | € | 16,000 | $ | 159 | 14-Mar | ||||||||||||||||||||||||
Foreign exchange option contracts | Other Liabilities | $ | (1,361 | ) | € | 100,000 | $ | (1,434 | ) | 14-Mar | ||||||||||||||||||||||
Foreign exchange option contracts | Other Assets | $ | 6,018 | ¥ | 13,592,011 | $ | 4,937 | Dec-13 - Jun-16 | ||||||||||||||||||||||||
Foreign exchange option contracts | Other Liabilities | $ | (1,108 | ) | ¥ | 1,334,948 | $ | 118 | 13-Dec | |||||||||||||||||||||||
(A) | Fortress has a master netting agreement with its counterparty. | |||||||||||||||||||||||||||||||
(B) | Reflects unrealized gains (losses) related to contracts existing at period end. Total net foreign exchange gains (losses) from derivatives were $3.8 million during the nine months ended September 30, 2013. | |||||||||||||||||||||||||||||||
The counterparty on the outstanding derivatives is Citibank N.A. |
DEBT_OBLIGATIONS
DEBT OBLIGATIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
DEBT OBLIGATIONS | ' | |||||||||||||||
DEBT OBLIGATIONS | ||||||||||||||||
Face Amount and Carrying Value | Contractual | Final | 30-Sep-13 | |||||||||||||
September 30, | December 31, | Interest | Stated | Amount | ||||||||||||
Debt Obligation | 2013 | 2012 | Rate | Maturity | Available for Draws | |||||||||||
Revolving credit agreement (A)(B) | $ | — | $ | — | LIBOR + 2.50% (C) | Feb-16 | $ | 147,332 | ||||||||
Promissory note (D) | — | 149,453 | 5.00% | Feb-14 | N/A | |||||||||||
Total | $ | — | $ | 149,453 | ||||||||||||
(A) | Collateralized by substantially all of Fortress Operating Group’s assets as well as Fortress Operating Group’s rights to fees from the Fortress Funds and its equity interests therein, other than fees from Fortress's senior living property manager. | |||||||||||||||
(B) | The $150.0 million revolving debt facility includes a $15.0 million letter of credit subfacility of which $2.7 million was utilized. | |||||||||||||||
(C) | Subject to unused commitment fees of 0.4% per annum. | |||||||||||||||
(D) | Issued to a former Principal in exchange for his equity interests in Fortress. | |||||||||||||||
Fortress was in compliance with all of its debt covenants as of September 30, 2013. The following table sets forth the financial covenant requirements as of September 30, 2013. | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
Requirement | Actual | Notes | ||||||||||||||
AUM, as defined | ≥ | $ | 25,000 | $ | 41,964 | (A) | ||||||||||
Consolidated Leverage Ratio | ≤ | 2 | — | (B) | ||||||||||||
Consolidated Interest Coverage Ratio | ≥ | 4 | 45.75 | (B) | ||||||||||||
(A) | Impacted by capital raised in funds, redemptions from funds, and valuations of fund investments. The AUM presented here is based on the definition in the credit agreement. | |||||||||||||||
(B) | Impacted by Consolidated EBITDA, as defined, which is generally impacted by the same factors as distributable earnings, except Consolidated EBITDA is not impacted by changes in clawback reserves or gains and losses, including impairment, on investments. | |||||||||||||||
In February 2013, Fortress terminated its existing $60.0 million revolving credit facility and entered into a new $150.0 million revolving credit facility (the "2013 Credit Agreement"). The 2013 Credit Agreement generally bears interest at an annual rate equal to LIBOR plus an applicable rate that fluctuates depending upon our credit rating and a commitment fee on undrawn amounts that fluctuates depending upon our credit rating, as well as other customary fees. In connection with the closing of the 2013 Credit Agreement, approximately $2.4 million of fees and expenses were incurred. The 2013 Credit Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including restrictions on liens and indebtedness and requirements for minimum AUM (as defined), a maximum leverage ratio (as defined) and a minimum interest coverage ratio (as defined). | ||||||||||||||||
In July 2013, Fortress repaid the remaining $89.5 million, plus accrued interest, on its promissory note due to a former Principal. As such, this note is no longer outstanding. |
INCOME_TAXES_AND_TAX_RELATED_P
INCOME TAXES AND TAX RELATED PAYMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
INCOME TAXES AND TAX RELATED PAYMENTS | ' | |||||||||||||||
INCOME TAXES AND TAX RELATED PAYMENTS | ||||||||||||||||
A portion of Fortress’s income is not subject to U.S. federal income tax, but is allocated directly to Fortress’s shareholders. | ||||||||||||||||
Fortress recognizes compensation expense from the issuance of RSUs and RPUs (Note 7) over their vesting period. Consequently, Fortress records an estimated income tax benefit associated with RSUs and RPUs. However, Fortress is not entitled to an actual deduction on its income tax returns until a later date when the compensation is considered taxable to the employee. The actual income tax deduction can vary significantly from the amount recorded as an income tax benefit in earlier periods and is based on the value of the stock at the date the compensation is taxable to the employee. | ||||||||||||||||
At each tax deduction date, Fortress is required to compare the amount of the actual income tax benefit to the estimated amount recognized earlier. If the actual tax benefit is less than that estimated, which will occur if the price of the stock has declined during the vesting period, Fortress has a “tax shortfall.” The tax shortfall must be charged to income tax expense to the extent Fortress does not have prior excess tax benefits (i.e., prior actual tax benefits associated with RSUs and RPUs that were greater than the estimated benefits). | ||||||||||||||||
Based on the value of the RSUs and RPUs which vested during the nine months ended September 30, 2013 and 2012, Fortress has estimated tax shortfalls of $25.1 million and $30.0 million, respectively, which have been charged to income tax expense during these periods. | ||||||||||||||||
The provision for income taxes consists of the following: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Current | ||||||||||||||||
Federal income tax expense (benefit) | $ | 3,150 | $ | 2,952 | $ | (16,366 | ) | $ | (2,634 | ) | ||||||
Foreign income tax expense (benefit) | 2,038 | 1,814 | 4,942 | 5,094 | ||||||||||||
State and local income tax expense (benefit) | 1,712 | (275 | ) | 612 | (316 | ) | ||||||||||
6,900 | 4,491 | (10,812 | ) | 2,144 | ||||||||||||
Deferred | ||||||||||||||||
Federal income tax expense (benefit) | 6,777 | (520 | ) | 45,327 | 28,028 | |||||||||||
Foreign income tax expense (benefit) | (62 | ) | (51 | ) | (22 | ) | 956 | |||||||||
State and local income tax expense (benefit) | 1,179 | (39 | ) | 7,743 | 3,123 | |||||||||||
7,894 | (610 | ) | 53,048 | 32,107 | ||||||||||||
Total expense (benefit) | $ | 14,794 | $ | 3,881 | $ | 42,236 | $ | 34,251 | ||||||||
The tax effects of temporary differences have resulted in deferred income tax assets and liabilities as follows: | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Total deferred tax assets | $ | 432,511 | $ | 485,160 | ||||||||||||
Valuation allowance | (61,567 | ) | (83,025 | ) | ||||||||||||
Net deferred tax assets | $ | 370,944 | $ | 402,135 | ||||||||||||
Total deferred tax liabilities (A) | $ | 15,715 | $ | 5,815 | ||||||||||||
(A) | Included in Other Liabilities. The deferred tax liabilities primarily relate to timing differences in the recognition of income from compensatory options received from Newcastle (Note 3). | |||||||||||||||
The following table summarizes the change in the deferred tax asset valuation allowance: | ||||||||||||||||
Valuation Allowance at December 31, 2012 | $ | 83,025 | ||||||||||||||
Changes due to FIG Corp ownership increases | (1,389 | ) | ||||||||||||||
Net decreases (A) | (20,069 | ) | ||||||||||||||
Valuation Allowance at September 30, 2013 | $ | 61,567 | ||||||||||||||
(A) | Primarily related to a change in the portion of the deferred tax asset that would be realized in connection with future capital gains. | |||||||||||||||
For the nine months ended September 30, 2013, a net deferred income tax provision of $0.4 million was debited to other comprehensive income, primarily related to the equity method investees. A current income tax benefit of $0.5 million was credited to paid-in capital, related to (i) dividend equivalent payments on RSUs (Note 8), as applicable, and (ii) distributions to Fortress Operating Group restricted partnership unit holders (Note 8), which are currently deductible for income tax purposes. In addition, a current income tax expense of $1.0 million was debited to paid-in capital related to the tax gain on treasury shares issued to employees in connection with equity-based compensation deliveries. | ||||||||||||||||
FIG Corp increased its ownership in the underlying Fortress Operating Group entities during the nine months ended September 30, 2013 through the delivery of vested RSUs and RPUs (Note 7). As a result of this change in ownership and other factors, the deferred tax asset decreased by $0.5 million with an offsetting decrease of $1.4 million to the valuation allowance. In addition, the deferred tax asset was increased by $11.5 million related to a step-up in tax basis due to the share exchanges which will result in additional tax deductions, with an offsetting increase of $0.2 million to the valuation allowance. The establishment of these net deferred tax assets also increased additional paid-in capital. | ||||||||||||||||
Tax Receivable Agreement | ||||||||||||||||
Although the tax receivable agreement payments are calculated based on annual tax savings, for the nine months ended September 30, 2013, the payments which would have been made pursuant to the tax receivable agreement, if such period was calculated by itself, were estimated to be $18.5 million. In addition, during the nine months ended September 30, 2013, the realization of certain tax benefits, which were previously offset by a valuation allowance, gave rise to a $7.7 million increase in the expected tax receivable agreement liability. |
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES | ' | |||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES | ||||||||||||||||||||||||||||
Affiliate Receivables and Payables | ||||||||||||||||||||||||||||
Due from affiliates was comprised of the following: | ||||||||||||||||||||||||||||
Private Equity | Credit | |||||||||||||||||||||||||||
Liquid Hedge | Hedge | |||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | PE Funds | Other | Total | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 55,629 | $ | 9,711 | $ | 2,430 | $ | 5,126 | $ | 17,445 | $ | 691 | $ | 91,032 | ||||||||||||||
Expense reimbursements (A) | 2,101 | 3,821 | 5,833 | 5,681 | 11,261 | 87 | 28,784 | |||||||||||||||||||||
Expense reimbursements - FCF (B) | 34,660 | — | — | — | — | — | 34,660 | |||||||||||||||||||||
Dividends and distributions | — | 285 | — | — | — | — | 285 | |||||||||||||||||||||
Other | 920 | — | — | — | 12 | 10,108 | 11,040 | |||||||||||||||||||||
Total | $ | 93,310 | $ | 13,817 | $ | 8,263 | $ | 10,807 | $ | 28,718 | $ | 10,886 | $ | 165,801 | ||||||||||||||
Private Equity | Credit | |||||||||||||||||||||||||||
Liquid Hedge | Hedge | |||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | PE Funds | Other | Total | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 31,909 | $ | 4,726 | $ | 40,929 | $ | 122,902 | $ | 26,937 | $ | — | $ | 227,403 | ||||||||||||||
Expense reimbursements (A) | 1,338 | 3,651 | 5,376 | 3,621 | 10,405 | — | 24,391 | |||||||||||||||||||||
Expense reimbursements - FCF (B) | 14,557 | — | — | — | — | — | 14,557 | |||||||||||||||||||||
Dividends and distributions | — | 228 | — | — | — | — | 228 | |||||||||||||||||||||
Other | 1,584 | 654 | — | — | 650 | 11,090 | 13,978 | |||||||||||||||||||||
Total | $ | 49,388 | $ | 9,259 | $ | 46,305 | $ | 126,523 | $ | 37,992 | $ | 11,090 | $ | 280,557 | ||||||||||||||
(A) | Net of allowances for uncollectible management fees and expense reimbursements of $12.2 million and $6.2 million at September 30, 2013, respectively, and of $12.2 million and $5.8 million as of December 31, 2012, respectively. Allowances are recorded as General and Administrative expenses. | |||||||||||||||||||||||||||
(B) | Represents expense reimbursements due to FCF, a consolidated VIE (Note 3). | |||||||||||||||||||||||||||
As of September 30, 2013, amounts due from Fortress Funds recorded in Due from Affiliates included $47.5 million of past due management fees, excluding $12.2 million which has been fully reserved by Fortress, and $16.0 million of private equity general and administrative expenses advanced on behalf of certain Fortress Funds, excluding $6.2 million which has been fully reserved by Fortress. Although such funds are currently experiencing liquidity issues, Fortress believes the unreserved portion of these fees and reimbursable expenses will ultimately be collectible. The unreserved amounts are primarily due from three different funds and the amounts represent less than 5% of such funds’ NAV, both individually and in the aggregate. Subsequent to September 30, 2013, $15.8 million of past due management fees from one fund were collected. | ||||||||||||||||||||||||||||
Due to affiliates was comprised of the following: | ||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Principals - tax receivable agreement - Note 5 | $ | 261,609 | $ | 253,787 | ||||||||||||||||||||||||
Principals - Principal Performance Payments - Note 7 | 30,398 | 25,573 | ||||||||||||||||||||||||||
Distributions payable on Fortress Operating Group units | 3,255 | 31,997 | ||||||||||||||||||||||||||
Other | 6,986 | 6,450 | ||||||||||||||||||||||||||
General partner liability - Note 9 | 41,247 | 39,600 | ||||||||||||||||||||||||||
$ | 343,495 | $ | 357,407 | |||||||||||||||||||||||||
Other Related Party Transactions | ||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 and 2012, Other Revenues included approximately $1.3 million and $1.3 million, respectively, of revenues from affiliates, primarily interest and dividends. | ||||||||||||||||||||||||||||
During 2013, Fortress advanced $1.0 million to one of its senior employees who is not an officer. This advance bears interest at LIBOR+4.00%. All principal and interest is due and payable no later than February 2017. In addition, two senior employees repaid advances aggregating $1.6 million. | ||||||||||||||||||||||||||||
Principals’ and Others’ Interests in Consolidated Subsidiaries | ||||||||||||||||||||||||||||
These amounts relate to equity interests in Fortress’s consolidated, but not wholly owned, subsidiaries, which are held by the Principals, employees, and others. | ||||||||||||||||||||||||||||
This balance sheet caption was comprised of the following: | ||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and one senior employee | $ | 573,802 | $ | 530,739 | ||||||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 58,179 | 57,411 | ||||||||||||||||||||||||||
Other | 2,041 | 2,029 | ||||||||||||||||||||||||||
Total | $ | 634,022 | $ | 590,179 | ||||||||||||||||||||||||
The Fortress Operating Group portion of these interests is computed as follows: | ||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Fortress Operating Group equity (Note 12) | $ | 1,184,908 | $ | 1,058,886 | ||||||||||||||||||||||||
Less: Others' interests in equity of consolidated subsidiaries (Note 12) | (60,220 | ) | (59,440 | ) | ||||||||||||||||||||||||
Total Fortress shareholders' equity in Fortress Operating Group | $ | 1,124,688 | $ | 999,446 | ||||||||||||||||||||||||
Fortress Operating Group units outstanding (A) | 249,534,372 | 249,534,372 | ||||||||||||||||||||||||||
Class A shares outstanding (C) | 239,568,798 | 220,369,026 | ||||||||||||||||||||||||||
Total | 489,103,170 | 469,903,398 | ||||||||||||||||||||||||||
Fortress Operating Group as a percent of total (B) | 51 | % | 53.1 | % | ||||||||||||||||||||||||
Equity of Fortress Operating Group units held by Principals and one senior employee | $ | 573,802 | $ | 530,739 | ||||||||||||||||||||||||
(A) | Held by the Principals and one senior employee; exclusive of Class A shares. | |||||||||||||||||||||||||||
(B) | As a result, the Registrant owned 49.0% and 46.9% of Fortress Operating Group as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||
(C) | As of December 31, 2012, this includes 2,082,684 treasury shares held by Fortress Operating Group. | |||||||||||||||||||||||||||
This statement of operations caption was comprised of shares of consolidated net income (loss) related to the following: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and one senior employee | $ | 57,221 | $ | 3,845 | $ | 104,653 | $ | 15,332 | ||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 1,647 | 2,098 | 6,756 | 5,228 | ||||||||||||||||||||||||
Other | (64 | ) | 15 | 12 | 138 | |||||||||||||||||||||||
Total | $ | 58,804 | $ | 5,958 | $ | 111,421 | $ | 20,698 | ||||||||||||||||||||
The purpose of this schedule is to disclose the effects of changes in Fortress’s ownership interest in Fortress Operating Group on Fortress’s equity: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Net Income (loss) attributable to Fortress | $ | 42,381 | $ | 708 | $ | 54,634 | $ | (23,923 | ) | |||||||||||||||||||
Transfers (to) from the Principals' and Others' Interests: | ||||||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the conversion of Fortress Operating Group units by the Principals and one senior employee | — | 2,929 | 10,143 | 22,167 | ||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the delivery of Class A shares primarily in connection with vested RSUs and RPUs | 3,062 | 3,579 | 12,550 | 14,280 | ||||||||||||||||||||||||
Change from net income (loss) attributable to Fortress and transfers (to) from Principals’ and Others' Interests | $ | 45,443 | $ | 7,216 | $ | 77,327 | $ | 12,524 | ||||||||||||||||||||
EQUITYBASED_AND_OTHER_COMPENSA
EQUITY-BASED AND OTHER COMPENSATION | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||
EQUITY-BASED AND OTHER COMPENSATION | ' | |||||||||||||||||||||||||||
EQUITY-BASED AND OTHER COMPENSATION | ||||||||||||||||||||||||||||
Fortress’s total compensation and benefits expense, including Principal Performance Payments, is comprised of the following: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Equity-based compensation, per below | $ | 8,671 | $ | 49,349 | $ | 28,648 | $ | 162,372 | ||||||||||||||||||||
Profit-sharing expense, per below | 29,540 | 37,018 | 194,091 | 97,249 | ||||||||||||||||||||||||
Discretionary bonuses | 52,033 | 46,410 | 155,121 | 140,846 | ||||||||||||||||||||||||
Other payroll, taxes and benefits | 56,213 | 48,644 | 161,731 | 136,800 | ||||||||||||||||||||||||
$ | 146,457 | $ | 181,421 | $ | 539,591 | $ | 537,267 | |||||||||||||||||||||
Equity-Based Compensation | ||||||||||||||||||||||||||||
The following tables set forth information regarding equity-based compensation activities. | ||||||||||||||||||||||||||||
RSUs | Restricted Shares | RPUs | ||||||||||||||||||||||||||
Employees | Non-Employees | Issued to Directors | Employees | |||||||||||||||||||||||||
Number | Value (A) | Number | Value (A) | Number | Value (A) | Number | Value (A) | |||||||||||||||||||||
Outstanding at December 31, 2012 | 21,754,544 | $ | 8.28 | 1,246,406 | $ | 5.51 | 828,211 | $ | 5.29 | 10,333,334 | $ | 13.75 | ||||||||||||||||
Issued | 8,805,841 | 5.06 | — | — | 127,533 | 6.21 | — | — | ||||||||||||||||||||
Transfers | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Converted to Class A shares | (9,589,683 | ) | 14.44 | (1,231,906 | ) | 5.53 | — | — | (10,333,334 | ) | 13.75 | |||||||||||||||||
Forfeited | (713,969 | ) | 3.72 | — | — | — | — | — | — | |||||||||||||||||||
Outstanding at September 30, 2013 (B) | 20,256,733 | $ | 4.12 | 14,500 | $ | 3.12 | 955,744 | $ | 5.41 | — | $ | — | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Expense incurred (B) | ||||||||||||||||||||||||||||
Employee RSUs | $ | 5,069 | $ | 24,839 | $ | 18,357 | $ | 91,446 | ||||||||||||||||||||
Non-Employee RSUs | — | 228 | 1 | 609 | ||||||||||||||||||||||||
Principal Performance Payments (C) | 3,602 | 1,469 | 10,290 | 2,351 | ||||||||||||||||||||||||
Restricted Shares (D) | — | — | — | 24 | ||||||||||||||||||||||||
RPUs | — | 22,813 | — | 67,942 | ||||||||||||||||||||||||
Total equity-based compensation expense | $ | 8,671 | $ | 49,349 | $ | 28,648 | $ | 162,372 | ||||||||||||||||||||
(A) | Represents the weighted average grant date estimated fair value per share or unit. | |||||||||||||||||||||||||||
(B) | In future periods, Fortress will further recognize compensation expense on its non-vested equity based awards outstanding as of September 30, 2013 of $48.5 million, with a weighted average recognition period of 2.3 years. This does not include contingent amounts. | |||||||||||||||||||||||||||
(C) | Accrued based on year-to-date performance; the actual number of RSUs granted are determined at year end. Based on year-to-date performance, a total of approximately 2.5 million RSUs would be awarded as Principal Performance Payments. | |||||||||||||||||||||||||||
(D) | Certain restricted shares granted to directors are recorded in General and Administrative Expense ($0.6 million and $0.5 million for the nine months ended September 30, 2013 and 2012, respectively) and therefore are not included above. | |||||||||||||||||||||||||||
When Fortress records equity-based compensation expense it records a corresponding increase in capital. | ||||||||||||||||||||||||||||
Fortress’s management reviewed the estimated forfeiture factor as of September 30, 2013 and, based on the actual forfeiture rate incurred and the remaining vesting period of certain grants, determined that the forfeiture assumptions for certain grants required adjustment. The result of these changes in estimates did not materially impact equity-based compensation. | ||||||||||||||||||||||||||||
In January 2013, Fortress granted 4.8 million RSUs to its employees valued at an aggregate of $20.5 million on the grant date. These RSUs generally vest over three years. | ||||||||||||||||||||||||||||
During the three months ended June 30, 2013, Fortress granted 1.1 million RSUs to its employees valued at an aggregate of $7.2 million on the grant date. These RSUs generally vest over three years. | ||||||||||||||||||||||||||||
The expense for Principal Performance Payments was comprised of the following: | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Equity-Based | Profit Sharing | Total | ||||||||||||||||||||||||||
Compensation | Expense | |||||||||||||||||||||||||||
Private equity business | $ | — | $ | 889 | $ | 889 | ||||||||||||||||||||||
Liquid hedge fund business | 3,047 | 8,654 | 11,701 | |||||||||||||||||||||||||
Credit business | 7,243 | 14,554 | 21,797 | |||||||||||||||||||||||||
Total | $ | 10,290 | $ | 24,097 | $ | 34,387 | ||||||||||||||||||||||
Profit Sharing Expense | ||||||||||||||||||||||||||||
Recognized profit sharing compensation expense is summarized as follows: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Private equity funds | $ | — | $ | 262 | $ | 2,135 | $ | 672 | ||||||||||||||||||||
Castles | (459 | ) | 1 | 7,757 | 3,378 | |||||||||||||||||||||||
Liquid hedge funds | (3,578 | ) | 4,544 | 35,458 | 11,431 | |||||||||||||||||||||||
Credit hedge funds | 20,371 | 19,710 | 71,074 | 46,488 | ||||||||||||||||||||||||
Credit PE funds | 9,480 | 8,347 | 53,570 | 24,212 | ||||||||||||||||||||||||
Principal Performance Payments (A) | 3,726 | 4,154 | 24,097 | 11,068 | ||||||||||||||||||||||||
Total | $ | 29,540 | $ | 37,018 | $ | 194,091 | $ | 97,249 | ||||||||||||||||||||
(A) | Relates to all applicable segments. Accrued based on year-to-date performance; the actual payments due to each Principal are determined at year end. | |||||||||||||||||||||||||||
Upon the resignation of one of Newcastle's officers, 2,170 vested out-of-the-money and 192,167 unvested Newcastle options, and 2,170 vested out-of-the-money and 192,167 unvested New Residential options were forfeited. |
EARNINGS_PER_SHARE_AND_DISTRIB
EARNINGS PER SHARE AND DISTRIBUTIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE AND DISTRIBUTIONS | ' | |||||||||||||||
EARNINGS PER SHARE AND DISTRIBUTIONS | ||||||||||||||||
The computations of basic and diluted net income (loss) per Class A share are set forth below: | ||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 237,470,346 | 237,470,346 | 231,019,933 | 231,019,933 | ||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 982,225 | 982,225 | 2,821,011 | 2,821,011 | ||||||||||||
Fully vested restricted Class A shares | 952,016 | 952,016 | 909,641 | 909,641 | ||||||||||||
Fortress Operating Group units and fully vested RPUs exchangeable into | — | 249,534,372 | — | 252,789,561 | ||||||||||||
Class A shares (1) | ||||||||||||||||
Class A restricted shares and Class A restricted share units granted to employees and directors (eligible for dividend and dividend equivalent payments) (2) | — | 2,771,059 | — | 2,067,969 | ||||||||||||
Class A restricted share units granted to employees (not eligible for | — | 10,381,148 | — | 9,954,355 | ||||||||||||
dividend and dividend equivalent payments) (3) | ||||||||||||||||
Total weighted average shares outstanding | 239,404,587 | 502,091,166 | 234,750,585 | 499,562,470 | ||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 42,381 | $ | 42,381 | $ | 54,634 | $ | 54,634 | ||||||||
Dilution in earnings due to RPUs treated as a participating security of | — | — | — | — | ||||||||||||
Fortress Operating Group and fully vested restricted Class A share | ||||||||||||||||
units with dividend equivalent rights treated as outstanding Fortress | ||||||||||||||||
Operating Group units (4) | ||||||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated to, | (777 | ) | (777 | ) | (590 | ) | (590 | ) | ||||||||
non-vested restricted Class A shares and restricted Class A share units (2) | ||||||||||||||||
Add back Principals' and others' interests in income of Fortress Operating | — | 18,906 | — | 52,551 | ||||||||||||
Group, net of assumed income taxes at enacted rates, attributable to | ||||||||||||||||
Fortress Operating Group units and fully vested RPUs exchangeable | ||||||||||||||||
into Class A shares (1) | ||||||||||||||||
Net income (loss) available to Class A shareholders | $ | 41,604 | $ | 60,510 | $ | 54,044 | $ | 106,595 | ||||||||
Weighted average shares outstanding | 239,404,587 | 502,091,166 | 234,750,585 | 499,562,470 | ||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0.17 | $ | 0.12 | $ | 0.23 | $ | 0.21 | ||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 217,293,696 | 217,293,696 | 207,521,553 | 207,521,553 | ||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 2,519,869 | 2,519,869 | 4,068,945 | 4,068,945 | ||||||||||||
Fully vested restricted Class A shares | 828,211 | 828,211 | 706,787 | 706,787 | ||||||||||||
Fortress Operating Group units and fully vested RPUs exchangeable into | — | 299,397,765 | — | 305,134,049 | ||||||||||||
Class A shares (1) | ||||||||||||||||
Class A restricted shares and Class A restricted share units granted to | — | — | — | — | ||||||||||||
employees and directors (eligible for dividend and dividend | ||||||||||||||||
equivalent payments) (2) | ||||||||||||||||
Class A restricted share units granted to employees (not eligible for | — | — | — | — | ||||||||||||
dividend and dividend equivalent payments) (3) | ||||||||||||||||
Total weighted average shares outstanding | 220,641,776 | 520,039,541 | 212,297,285 | 517,431,334 | ||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 708 | $ | 708 | $ | (23,923 | ) | $ | (23,923 | ) | ||||||
Dilution in earnings due to RPUs treated as a participating security of | (116 | ) | (116 | ) | (327 | ) | (327 | ) | ||||||||
Fortress Operating Group and fully vested restricted Class A share | ||||||||||||||||
units with dividend equivalent rights treated as outstanding Fortress | ||||||||||||||||
Operating Group units (4) | ||||||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated | (108 | ) | (108 | ) | (327 | ) | (327 | ) | ||||||||
to, non-vested restricted Class A shares and restricted Class A share | ||||||||||||||||
units (2) | ||||||||||||||||
Add back Principals' and others' interests in income of Fortress | — | (22,295 | ) | — | (42,943 | ) | ||||||||||
Operating Group, net of assumed income taxes at enacted rates, | ||||||||||||||||
attributable to Fortress Operating Group units and fully vested RPUs | ||||||||||||||||
exchangeable into Class A shares (1) | ||||||||||||||||
Net income (loss) available to Class A shareholders | $ | 484 | $ | (21,811 | ) | $ | (24,577 | ) | $ | (67,520 | ) | |||||
Weighted average shares outstanding | 220,641,776 | 520,039,541 | 212,297,285 | 517,431,334 | ||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0 | $ | (0.04 | ) | $ | (0.12 | ) | $ | (0.13 | ) | |||||
-1 | The Fortress Operating Group units and fully vested RPUs not held by Fortress (that is, those held by the Principals and one senior employee) are exchangeable into Class A shares on a one-to-one basis (fully vested RPUs would first have to be exchanged for Fortress Operating Group units and Class B shares). These units and fully vested RPUs are not included in the computation of basic earnings per share. These units and fully vested RPUs enter into the computation of diluted net income (loss) per Class A share when the effect is dilutive using the if-converted method, which includes the income tax effects of nondiscretionary adjustments to the net income (loss) attributable to Class A shareholders from assumed conversion of these units and fully vested RPUs. To the extent charges, particularly tax related charges, are incurred by the Registrant (i.e. not at the Fortress Operating Group level), the effect may be anti-dilutive. | |||||||||||||||
-2 | Restricted Class A shares granted to directors and certain restricted Class A share units granted to employees are eligible to receive dividend or dividend equivalent payments when dividends are declared and paid on Fortress’s Class A shares and therefore participate fully in the results of Fortress’s operations from the date they are granted. They are included in the computation of both basic and diluted earnings per Class A share using the two-class method for participating securities, except during periods of net losses. | |||||||||||||||
-3 | Certain restricted Class A share units granted to employees are not entitled to dividend or dividend equivalent payments until they are vested and are therefore non-participating securities. These units are not included in the computation of basic earnings per share. They are included in the computation of diluted earnings per share when the effect is dilutive using the treasury stock method. The effect of the units on the calculation is generally anti-dilutive during periods of net losses. The weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding were: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Share Units | 14,766,136 | 16,426,317 | 15,761,068 | 19,212,189 | ||||||||||||
(4) | Fortress Operating Group RPUs are eligible to receive partnership distribution equivalent payments when distributions are declared and paid on Fortress Operating Group units. The RPUs represent a participating security of Fortress Operating Group and the resulting dilution in Fortress Operating Group earnings available to Fortress is reflected in the computation of both basic and diluted earnings per Class A share using the method prescribed for securities issued by a subsidiary. For purposes of the computation of basic and diluted earnings per Class A share, the fully vested restricted Class A share units with dividend equivalent rights are treated as outstanding Class A shares of Fortress and as outstanding partnership units of Fortress Operating Group. | |||||||||||||||
The Class B shares have no net income (loss) per share as they do not participate in Fortress’s earnings (losses) or distributions. The Class B shares have no dividend or liquidation rights. Each Class B share, along with one Fortress Operating Group unit, can be exchanged for one Class A share, subject to certain limitations. The Class B shares have voting rights on a pari passu basis with the Class A shares. | ||||||||||||||||
Fortress’s dividend paying shares and units were as follows: | ||||||||||||||||
Weighted Average | Weighted Average | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Class A shares (public shareholders) | 237,470,346 | 217,293,696 | 231,019,933 | 207,521,553 | ||||||||||||
Restricted Class A shares (directors) | 952,016 | 828,211 | 909,641 | 722,413 | ||||||||||||
Restricted Class A share units (employees) (A) | 982,225 | 2,519,869 | 2,821,011 | 4,068,945 | ||||||||||||
Restricted Class A share units (employees) (B) | 5,744,629 | 6,434,147 | 4,759,829 | 6,667,917 | ||||||||||||
Fortress Operating Group units (Principals and one senior employee) | 249,534,372 | 299,397,765 | 249,534,372 | 301,815,314 | ||||||||||||
Fortress Operating Group RPUs (one senior employee) | — | 10,333,334 | 3,255,189 | 13,652,069 | ||||||||||||
Total | 494,683,588 | 536,807,022 | 492,299,975 | 534,448,211 | ||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Class A shares (public shareholders) | 238,613,054 | 217,458,131 | ||||||||||||||
Restricted Class A shares (directors) | 955,744 | 828,211 | ||||||||||||||
Restricted Class A share units (employees) (A) | 21,851 | 555,646 | ||||||||||||||
Restricted Class A share units (employees) (B) | 5,744,629 | 6,434,147 | ||||||||||||||
Fortress Operating Group units (Principals and one senior employee) | 249,534,372 | 249,534,372 | ||||||||||||||
Fortress Operating Group RPUs (one senior employee) | — | 10,333,334 | ||||||||||||||
Total | 494,869,650 | 485,143,841 | ||||||||||||||
(A) | Represents fully vested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
(B) | Represents unvested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
In January 2013, 8.0 million existing RSUs and 10.3 million existing RPUs vested and the related Class A and Class B shares, as applicable, were delivered within six months of vesting pursuant to the plan documents. All of the treasury shares held at December 31, 2012 were issued to employees in connection with these deliveries. In March 2013, one senior employee exchanged an aggregate of 10.3 million FOG units and Class B shares for an equal number of Class A shares. A portion of the vested shares are generally sold to cover withholding tax requirements. In June 2013, one of the Principals contributed 300,000 Class A shares to a charitable organization. | ||||||||||||||||
Dividends and distributions during the nine months ended September 30, 2013 are summarized as follows: | ||||||||||||||||
Declared in Current Year | ||||||||||||||||
Declared in Prior Year, Paid in Current Year | Declared and Paid | Declared but not yet Paid | Total | |||||||||||||
Dividends on Class A Shares | $ | — | $ | 41,830 | $ | — | $ | 41,830 | ||||||||
Dividend equivalents on restricted Class A share | ||||||||||||||||
units (A) | — | 1,338 | — | 1,338 | ||||||||||||
Distributions to Fortress Operating Group unit holders | ||||||||||||||||
(Principals and one senior employee) (B) | 30,725 | 51,656 | 3,255 | 54,911 | ||||||||||||
Distributions to Fortress Operating Group RPU holders | ||||||||||||||||
(Note 7) (B) | 1,272 | 401 | — | 401 | ||||||||||||
Total distributions | $ | 31,997 | $ | 95,225 | $ | 3,255 | $ | 98,480 | ||||||||
(A) | A portion of these dividend equivalents, if any, related to RSUs expected to be forfeited, is included as compensation expense in the consolidated statement of operations and is therefore considered an operating cash flow. | |||||||||||||||
(B) | Fortress Operating Group made tax-related distributions to the FOG unit holders (the Principals and one senior employee) and the RPU holder (one senior employee). | |||||||||||||||
On May 1, 2013, Fortress declared a first quarter cash dividend of $0.06 per Class A share. The dividend was payable on May 17, 2013 to holders of record of Class A shares on May 14, 2013. The aggregate amount of this dividend payment was approximately $14.2 million. In connection with this dividend, dividend equivalent payments of approximately $0.3 million were paid to holders of restricted Class A share units. | ||||||||||||||||
On July 31, 2013, Fortress declared a second quarter cash dividend of $0.06 per Class A share. The dividend was payable on August 16, 2013 to holders of record of Class A shares on August 13, 2013. The aggregate amount of this dividend payment was approximately $14.3 million. In connection with this dividend, dividend equivalent payments of approximately $0.4 million were paid to holders of restricted Class A share units. | ||||||||||||||||
On October 30, 2013, Fortress declared a third quarter cash dividend of $0.06 per Class A share. The dividend is payable on November 15, 2013 to holders of record of Class A shares on November 12, 2013. The aggregate amount of this dividend payment is approximately $14.4 million. In connection with this dividend, dividend equivalent payments of approximately $0.4 million will be paid to holders of restricted Class A share units. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ||||
Other than as described below, Fortress’s commitments and contingencies remain materially unchanged from December 31, 2012. | ||||
General Partner Liability — Certain of Fortress’s consolidated subsidiaries act as the general partner of various Fortress Funds and accordingly have potentially unlimited liability for the obligations of the funds under applicable partnership law principles. In the event that any such fund was to fall into a negative net equity position (Note 2), the full amount of the negative net equity would be recorded on the balance sheet of the general partner entity. Such amount would be recorded on the Fortress balance sheet in consolidation until it is legally resolved. While these entities are limited liability companies and generally have no material assets other than their general partner interests, these entities and Fortress may be subject to litigation in connection with such amounts if fund creditors choose to sue Fortress to seek repayment. See “Litigation” below. | ||||
In March 2011, one private equity fund fell into a negative equity position, after considering all of Fortress’s interests in such fund and its reserves related thereto. As described above, the amount of the negative equity was recorded, through earnings (losses) from equity method investees, by the general partner entity and is therefore included in the consolidated financial statements of Fortress. When the fund matures and is liquidated, Fortress will record a gain in the event and to the extent it does not fund this negative equity. The amount of negative equity recorded at September 30, 2013 was $41.2 million. | ||||
Litigation — Fortress is, from time to time, a defendant in legal actions from transactions conducted in the ordinary course of business. Management, after consultation with legal counsel, believes the ultimate liability arising from such actions that existed as of September 30, 2013, individually and in the aggregate, will not materially affect Fortress’s results of operations, liquidity or financial position. | ||||
In some cases, Fortress is named as a defendant in legal actions pertaining to one of the Fortress Funds and/or their portfolio companies. In such cases, Fortress is generally indemnified by the fund against potential losses arising from Fortress’s role as investment manager. | ||||
Private Equity Fund and Credit PE Fund Capital Commitments — Fortress has remaining capital commitments, which aggregated $172.9 million as of September 30, 2013, primarily to certain of the Fortress Funds. These commitments can be drawn by the funds on demand. | ||||
Minimum Future Rentals — Fortress is a lessee under operating leases for office space located in a number of locations worldwide. | ||||
Minimum future rental payments (excluding expense escalations) under these leases are as follows: | ||||
October 1 to December 31, 2013 | $ | 6,342 | ||
2014 | 24,068 | |||
2015 | 21,472 | |||
2016 | 19,919 | |||
2017 | 2,761 | |||
2018 | 402 | |||
Thereafter | 38 | |||
Total | $ | 75,002 | ||
Rent expense, including operating expense escalations, during the nine months ended September 30, 2013 and 2012 was $17.9 million and $18.9 million, respectively, and was included in General, Administrative and Other Expense. |
SEGMENT_REPORTING
SEGMENT REPORTING | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | ||||||||||||||||||||||||||||||||||||
Fortress conducts its management and investment business through the following primary segments: (i) private equity funds, (ii) Castles, (iii) liquid hedge funds, (iv) credit hedge funds, (v) credit PE funds, (vi) Logan Circle and (vii) principal investments in these funds as well as cash that is available to be invested. | ||||||||||||||||||||||||||||||||||||
“Distributable earnings” is a measure of operating performance used by management in analyzing its segment and overall results. For the existing Fortress businesses it is equal to net income (loss) attributable to Fortress’s Class A shareholders adjusted as follows: | ||||||||||||||||||||||||||||||||||||
Incentive Income | ||||||||||||||||||||||||||||||||||||
(i) a. | for Fortress Funds which are private equity funds and credit PE funds, adding (a) incentive income paid (or declared as a distribution) to Fortress, less an applicable reserve for potential future clawbacks if the likelihood of a clawback is deemed greater than remote by Fortress’s chief operating decision maker (net of the reversal of any prior such reserves that are no longer deemed necessary), minus (b) incentive income recorded in accordance with GAAP, | |||||||||||||||||||||||||||||||||||
b. | for other Fortress Funds, at interim periods, adding (a) incentive income on an accrual basis as if the incentive income from these funds were payable on a quarterly basis, minus (b) incentive income recorded in accordance with GAAP, | |||||||||||||||||||||||||||||||||||
Other Income | ||||||||||||||||||||||||||||||||||||
(ii) | with respect to income from certain principal investments and certain other interests that cannot be readily transferred or redeemed: | |||||||||||||||||||||||||||||||||||
a. | for equity method investments in the private equity funds and credit PE funds as well as indirect equity method investments in hedge fund special investment accounts (which generally have investment profiles similar to private equity funds), treating these investments as cost basis investments by adding (a) realizations of income, primarily dividends, from these funds, minus (b) impairment with respect to these funds, if necessary, minus (c) equity method earnings (or losses) recorded in accordance with GAAP, | |||||||||||||||||||||||||||||||||||
b. | subtracting gains (or adding losses) on stock options held in the Castles, | |||||||||||||||||||||||||||||||||||
c. | subtracting unrealized gains (or adding unrealized losses) on derivatives, direct investments in publicly traded portfolio companies and in the Castles, | |||||||||||||||||||||||||||||||||||
(iii) | adding (a) proceeds from the sale of shares received pursuant to the exercise of stock options in certain of the Castles, in excess of their strike price, minus (b) management fee income recorded in accordance with GAAP in connection with the receipt of these options, | |||||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||
(iv) | adding or subtracting, as necessary, the employee profit sharing in incentive income described in (i) above to match the timing of the expense with the revenue, | |||||||||||||||||||||||||||||||||||
(v) | adding back equity-based compensation expense (including Castle options assigned to employees, RSUs and RPUs (including the portion of related dividend and distribution equivalents recorded as compensation expense), and restricted shares), | |||||||||||||||||||||||||||||||||||
(vi) | adding or subtracting, as necessary, any changes in the fair value of contingent consideration payable with respect to the acquisition of a business, to the extent management intends to pay it in equity and it is recorded on the statement of operations under GAAP, | |||||||||||||||||||||||||||||||||||
(vii) | adding back the amortization of intangible assets and any impairment of goodwill or intangible assets recorded under GAAP, | |||||||||||||||||||||||||||||||||||
(viii) | adding back compensation expense recorded in connection with the forfeiture arrangements entered into among the principals, which expired in December 2011, | |||||||||||||||||||||||||||||||||||
(ix) | adding the income (or subtracting the loss) allocable to the interests in consolidated subsidiaries attributable to Fortress Operating Group units, and | |||||||||||||||||||||||||||||||||||
(x) | adding back income tax benefit or expense and any income or expense recorded in connection with the tax receivable agreement (Note 5). | |||||||||||||||||||||||||||||||||||
Fund management DE is equal to distributable earnings excluding investment-related results (specifically, investment income (loss) and interest expense) and is used by management to measure performance of the operating (management) business on a stand-alone basis. Fortress defines its segment operating margin to be equal to fund management DE divided by segment revenues. | ||||||||||||||||||||||||||||||||||||
Total segment assets are equal to total GAAP assets adjusted for: | ||||||||||||||||||||||||||||||||||||
(i) | any difference between the GAAP carrying amount of equity method investments and their carrying amount for segment reporting purposes, which is generally fair value for publicly traded investments and net asset value for nonpublic investments, | |||||||||||||||||||||||||||||||||||
(ii) | employees’ and others’ portions of investments, which are reported gross for GAAP purposes (as assets offset by Principals’ and others’ interests in equity of consolidated subsidiaries) but net for segment reporting purposes, | |||||||||||||||||||||||||||||||||||
(iii) | the difference, if any, between the GAAP carrying amount of intangible assets and goodwill and their carrying amount for segment reporting purposes resulting from the distributable earnings adjustments listed above, and | |||||||||||||||||||||||||||||||||||
(iv) | at interim periods, the accrued incentive income recorded for distributable earnings purposes in relation to the incentive income reconciling item in (i)(b) above. | |||||||||||||||||||||||||||||||||||
Distributable Earnings Impairment | ||||||||||||||||||||||||||||||||||||
Clawback Reserve on Incentive Income for DE Purposes | ||||||||||||||||||||||||||||||||||||
Fortress had recognized incentive income for DE purposes from certain private equity funds and credit PE funds, which are subject to contingent clawback, as of September 30, 2013: | ||||||||||||||||||||||||||||||||||||
Fund (A) | Net Intrinsic Clawback (B) | Periods in Intrinsic Clawback | Prior Year End Inception-to-Date Net DE Reserve | Current | Current | Inception-to-Date Net DE Reserve | Notes | |||||||||||||||||||||||||||||
Year-to-Date Gross DE Reserve | Year-to-Date Net DE Reserve | |||||||||||||||||||||||||||||||||||
Fund II | 1,594 | 20 Quarters | $ | 6,070 | $ | (3,367 | ) | $ | (2,155 | ) | $ | 3,915 | (C) | |||||||||||||||||||||||
Fund III | 45,108 | 23 Quarters | 45,108 | — | — | 45,108 | (D) | |||||||||||||||||||||||||||||
FRID | 10,041 | 25 Quarters | 10,041 | — | — | 10,041 | (D) | |||||||||||||||||||||||||||||
Total | $ | 56,743 | $ | 61,219 | $ | (3,367 | ) | $ | (2,155 | ) | $ | 59,064 | ||||||||||||||||||||||||
(A) | Fortress has recognized incentive income for DE purposes from the following funds, which do not have intrinsic clawback and for which the CODM has determined no clawback reserve is necessary: Fund I, Credit Opportunities Fund, Credit Opportunities Fund II, Credit Opportunities Fund III, certain FCO Managed Accounts, Real Estate Opportunities Fund, Net Lease Fund I and Japan Opportunity Fund. | |||||||||||||||||||||||||||||||||||
(B) | See Note 2. | |||||||||||||||||||||||||||||||||||
(C) | The previously recorded reserves with respect to this fund exceeded its net intrinsic clawback by approximately $3.3 million immediately prior to September 30, 2013. Based on the criteria determined by the CODM, management determined that a net reversal of $1.0 million of clawback reserve was appropriate for the three months ended September 30, 2013. In the aggregate, $2.2 million of net reserve has been reversed in 2013. | |||||||||||||||||||||||||||||||||||
(D) | The potential clawback on these funds has been fully reserved in prior periods. | |||||||||||||||||||||||||||||||||||
Impairment Determination and Embedded Gain/Loss | ||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, Fortress recorded $1.1 million of impairment on its direct and indirect investments in its funds for segment reporting purposes. As of September 30, 2013, Fortress had $2.8 million of unrealized losses on certain investments that have not been recorded as impairment. As of September 30, 2013, Fortress’s share of the net asset value of its direct and indirect investments exceeded its segment cost basis by $605.8 million, representing unrealized gains. | ||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, Fortress recorded an aggregate net reversal of $2.2 million of clawback reserve for DE purposes. | ||||||||||||||||||||||||||||||||||||
Fortress expects aggregate returns on its private equity funds and credit PE funds that are in an unrealized investment loss or intrinsic clawback position, after taking reserves into account, to ultimately exceed their carrying amount or breakeven point, as applicable. If such funds were liquidated at their September 30, 2013 NAV (although Fortress has no current intention of doing so), the result would be additional impairment losses and reserves for DE purposes of approximately $2.8 million. | ||||||||||||||||||||||||||||||||||||
Embedded Incentive Income | ||||||||||||||||||||||||||||||||||||
As of September 30, 2013, Fortress had $903.5 million of gross undistributed incentive income (Note 2), or $817.7 million net of intrinsic clawback. Of the $903.5 million, $185.9 million has been recognized in distributable earnings. This amount represents hedge fund incentive income recorded during the nine months ended September 30, 2013. | ||||||||||||||||||||||||||||||||||||
In addition, if Fortress had exercised all of its in-the-money Newcastle, New Residential, and Eurocastle options (Note 3) and sold all of the resulting shares at their September 30, 2013 closing price, it would have recorded $90.4 million of gross additional distributable earnings, or $74.4 million net of employee interests. | ||||||||||||||||||||||||||||||||||||
Segment Results of Operations | ||||||||||||||||||||||||||||||||||||
Summary financial data on Fortress’s segments is presented on the following pages, together with a reconciliation to revenues, assets and net income (loss) for Fortress as a whole. Fortress’s investments in, and earnings (losses) from, its equity method investees by segment are presented in Note 3. | ||||||||||||||||||||||||||||||||||||
September 30, 2013 and the Nine Months Then Ended | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 101,126 | $ | 44,436 | $ | 79,380 | $ | 75,435 | $ | 71,218 | $ | 25,859 | $ | — | $ | — | $ | 397,454 | ||||||||||||||||||
Incentive income | 9,181 | 7,299 | 97,324 | 140,840 | 102,148 | — | — | — | 356,792 | |||||||||||||||||||||||||||
Segment revenues - total | $ | 110,307 | $ | 51,735 | $ | 176,704 | $ | 216,275 | $ | 173,366 | $ | 25,859 | $ | — | $ | — | $ | 754,246 | ||||||||||||||||||
Fund management distributable | $ | 71,352 | $ | 22,332 | $ | 86,543 | $ | 100,678 | $ | 44,861 | $ | (7,605 | ) | $ | — | $ | — | $ | 318,161 | |||||||||||||||||
earnings (loss) before Principal | ||||||||||||||||||||||||||||||||||||
Performance Payments (B) | ||||||||||||||||||||||||||||||||||||
Fund management distributable | $ | 71,352 | $ | 21,443 | $ | 77,890 | $ | 86,845 | $ | 44,139 | $ | (7,605 | ) | $ | — | $ | — | $ | 294,064 | |||||||||||||||||
earnings (loss) | ||||||||||||||||||||||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 71,352 | $ | 21,443 | $ | 77,890 | $ | 86,845 | $ | 44,139 | $ | (7,605 | ) | $ | 19,108 | $ | — | $ | 313,172 | |||||||||||||||||
Total segment assets | $ | 93,732 | $ | 13,703 | $ | 90,022 | $ | 120,846 | $ | 30,634 | $ | 32,866 | $ | 1,707,074 | $ | 480,435 | $ | 2,569,312 | ||||||||||||||||||
(A) | ||||||||||||||||||||||||||||||||||||
(A) | Unallocated assets include deferred tax assets of $370.9 million. | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 34,405 | $ | 13,620 | $ | 30,634 | $ | 25,481 | $ | 23,669 | $ | 8,833 | $ | — | $ | — | $ | 136,642 | ||||||||||||||||||
Incentive income | 1,544 | 6,099 | (27,387 | ) | 44,194 | 17,789 | — | — | — | 42,239 | ||||||||||||||||||||||||||
Segment revenues - total | $ | 35,949 | $ | 19,719 | $ | 3,247 | $ | 69,675 | $ | 41,458 | $ | 8,833 | $ | — | $ | — | $ | 178,881 | ||||||||||||||||||
Fund management distributable earnings (loss) before Principal Performance Payments (B) | $ | 24,412 | $ | 7,679 | $ | (11,923 | ) | $ | 32,844 | $ | 7,442 | $ | (3,320 | ) | $ | — | $ | — | $ | 57,134 | ||||||||||||||||
Fund management distributable earnings (loss) | $ | 24,412 | $ | 6,790 | $ | (10,730 | ) | $ | 28,940 | $ | 7,318 | $ | (3,320 | ) | $ | — | $ | — | $ | 53,410 | ||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 24,412 | $ | 6,790 | $ | (10,730 | ) | $ | 28,940 | $ | 7,318 | $ | (3,320 | ) | $ | 11,628 | $ | — | $ | 65,038 | ||||||||||||||||
(B) | See Note 7. Fund management distributable earnings (loss) is only reduced for the profit sharing component of the Principal Performance Payments. | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 89,410 | $ | 41,615 | $ | 57,537 | $ | 76,319 | $ | 63,992 | $ | 18,675 | $ | — | $ | — | $ | 347,548 | ||||||||||||||||||
Incentive income | 8,252 | — | 21,394 | 92,183 | 42,415 | — | — | — | 164,244 | |||||||||||||||||||||||||||
Segment revenues - total | $ | 97,662 | $ | 41,615 | $ | 78,931 | $ | 168,502 | $ | 106,407 | $ | 18,675 | $ | — | $ | — | $ | 511,792 | ||||||||||||||||||
Fund management distributable earnings (loss) before Principal Performance Payments (B) | $ | 65,082 | $ | 19,650 | $ | 16,067 | $ | 76,277 | $ | 13,149 | $ | (6,831 | ) | $ | — | $ | 131 | $ | 183,525 | |||||||||||||||||
Fund management distributable earnings (loss) | $ | 65,082 | $ | 19,104 | $ | 14,488 | $ | 67,363 | $ | 13,121 | $ | (6,831 | ) | $ | — | $ | 131 | $ | 172,458 | |||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 65,082 | $ | 19,104 | $ | 14,488 | $ | 67,363 | $ | 13,121 | $ | (6,831 | ) | $ | (1,718 | ) | $ | 131 | $ | 170,740 | ||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 30,004 | $ | 13,979 | $ | 18,176 | $ | 24,747 | $ | 21,438 | $ | 6,802 | $ | — | $ | — | $ | 115,146 | ||||||||||||||||||
Incentive income | 708 | — | 11,664 | 35,839 | 16,985 | — | — | — | 65,196 | |||||||||||||||||||||||||||
Segment revenues - total | $ | 30,712 | $ | 13,979 | $ | 29,840 | $ | 60,586 | $ | 38,423 | $ | 6,802 | $ | — | $ | — | $ | 180,342 | ||||||||||||||||||
Fund management distributable earnings (loss) before Principal Performance Payments (B) | $ | 22,073 | $ | 6,450 | $ | 8,177 | $ | 26,791 | $ | 6,052 | $ | (2,295 | ) | $ | — | $ | — | $ | 67,248 | |||||||||||||||||
Fund management distributable earnings (loss) | $ | 22,073 | $ | 6,369 | $ | 7,388 | $ | 23,526 | $ | 6,033 | $ | (2,295 | ) | $ | — | $ | — | $ | 63,094 | |||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 22,073 | $ | 6,369 | $ | 7,388 | $ | 23,526 | $ | 6,033 | $ | (2,295 | ) | $ | 363 | $ | — | $ | 63,457 | |||||||||||||||||
Reconciling items between segment measures and GAAP measures: | ||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||||||||
Fund management distributable earnings | $ | 53,410 | $ | 63,094 | $ | 294,064 | $ | 172,458 | ||||||||||||||||||||||||||||
Investment income (loss) | 12,412 | 3,658 | 23,870 | 9,926 | ||||||||||||||||||||||||||||||||
Interest expense | (784 | ) | (3,295 | ) | (4,762 | ) | (11,644 | ) | ||||||||||||||||||||||||||||
Pre-tax distributable earnings | 65,038 | 63,457 | 313,172 | 170,740 | ||||||||||||||||||||||||||||||||
Adjust incentive income | ||||||||||||||||||||||||||||||||||||
Incentive income received from private equity funds and | (17,790 | ) | (16,986 | ) | (103,109 | ) | $ | (42,416 | ) | |||||||||||||||||||||||||||
credit PE funds, subject to contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income received from third parties, subject to | — | (273 | ) | — | (1,674 | ) | ||||||||||||||||||||||||||||||
contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income accrued from private equity funds and | 15,883 | 5,547 | 50,262 | 36,931 | ||||||||||||||||||||||||||||||||
credit PE funds, not subject to contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income received from private equity funds and | — | (708 | ) | (4,854 | ) | (1,815 | ) | |||||||||||||||||||||||||||||
credit PE funds, not subject to contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income from hedge funds, subject to annual performance achievement | 5,973 | (46,012 | ) | (185,858 | ) | (107,956 | ) | |||||||||||||||||||||||||||||
Incentive income received from the sale of shares related to options | (1,921 | ) | — | (1,921 | ) | — | ||||||||||||||||||||||||||||||
Reserve for clawback, gross (see discussion above) | (1,544 | ) | — | (3,367 | ) | (6,436 | ) | |||||||||||||||||||||||||||||
601 | (58,432 | ) | (248,847 | ) | (123,366 | ) | ||||||||||||||||||||||||||||||
Adjust other income | ||||||||||||||||||||||||||||||||||||
Distributions of earnings from equity method investees** | (3,685 | ) | (1,494 | ) | (12,529 | ) | (3,501 | ) | ||||||||||||||||||||||||||||
Earnings (losses) from equity method investees** | 57,532 | 47,706 | 116,748 | 99,649 | ||||||||||||||||||||||||||||||||
Gains (losses) on options in equity method investees | 3,488 | (6,219 | ) | 27,233 | (1,962 | ) | ||||||||||||||||||||||||||||||
Gains (losses) on other investments | (3,178 | ) | 3,996 | 9,358 | 31,060 | |||||||||||||||||||||||||||||||
Impairment of investments (see discussion above) | 380 | 720 | 1,107 | 875 | ||||||||||||||||||||||||||||||||
Adjust income from the receipt of options | — | 8,298 | 36,470 | 21,524 | ||||||||||||||||||||||||||||||||
54,537 | 53,007 | 178,387 | 147,645 | |||||||||||||||||||||||||||||||||
Adjust employee, Principal and director compensation | ||||||||||||||||||||||||||||||||||||
Adjust employee, Principal and director equity-based compensation expense (including Castle options assigned) | (6,415 | ) | (49,495 | ) | (34,769 | ) | (164,420 | ) | ||||||||||||||||||||||||||||
Adjust employee portion of incentive income from private equity funds, accrued prior to the realization of incentive income | 555 | — | 1,210 | 2,316 | ||||||||||||||||||||||||||||||||
(5,860 | ) | (49,495 | ) | (33,559 | ) | (162,104 | ) | |||||||||||||||||||||||||||||
Adjust amortization of intangible assets and impairment of goodwill and intangible assets | (12 | ) | (10 | ) | (34 | ) | (34 | ) | ||||||||||||||||||||||||||||
Adjust non-controlling interests related to Fortress Operating Group units | (57,221 | ) | (3,845 | ) | (104,653 | ) | (15,332 | ) | ||||||||||||||||||||||||||||
Adjust tax receivable agreement liability | — | — | (7,739 | ) | (6,935 | ) | ||||||||||||||||||||||||||||||
Adjust income taxes | (14,702 | ) | (3,974 | ) | (42,093 | ) | (34,537 | ) | ||||||||||||||||||||||||||||
Total adjustments | (22,657 | ) | (62,749 | ) | (258,538 | ) | (194,663 | ) | ||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Class A Shareholders | 42,381 | 708 | 54,634 | (23,923 | ) | |||||||||||||||||||||||||||||||
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 58,804 | 5,958 | 111,421 | 20,698 | ||||||||||||||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 101,185 | $ | 6,666 | $ | 166,055 | $ | (3,225 | ) | |||||||||||||||||||||||||||
** This adjustment relates to all of the private equity and credit PE Fortress Funds and hedge fund special investment accounts in which Fortress has an investment. | ||||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||
Total segment assets | $ | 2,569,312 | ||||||||||||||||||||||||||||||||||
Adjust equity investments from segment carrying amount | (42,059 | ) | ||||||||||||||||||||||||||||||||||
Adjust investments gross of employees’ and others’ portion | 38,982 | |||||||||||||||||||||||||||||||||||
Adjust goodwill and intangible assets to cost | (22,744 | ) | ||||||||||||||||||||||||||||||||||
Accrued incentive income subject to annual performance achievement | (185,858 | ) | ||||||||||||||||||||||||||||||||||
Total assets (GAAP) | $ | 2,357,633 | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Segment revenues | $ | 178,881 | $ | 180,342 | $ | 754,246 | $ | 511,792 | ||||||||||||||||||||||||||||
Adjust management fees | 313 | 124 | 565 | 397 | ||||||||||||||||||||||||||||||||
Adjust incentive income | 601 | (58,432 | ) | (248,847 | ) | (123,686 | ) | |||||||||||||||||||||||||||||
Adjust income from the receipt of options | — | 8,298 | 36,470 | 21,524 | ||||||||||||||||||||||||||||||||
Adjust other revenues (including expense reimbursements)* | 52,224 | 51,191 | 157,014 | 142,202 | ||||||||||||||||||||||||||||||||
Total revenues (GAAP) | $ | 232,019 | $ | 181,523 | $ | 699,448 | $ | 552,229 | ||||||||||||||||||||||||||||
* Segment revenues do not include GAAP other revenues, except to the extent they represent management fees or incentive income; such revenues are included elsewhere in the calculation of distributable earnings. | ||||||||||||||||||||||||||||||||||||
Fortress’s depreciation and amortization expense by segment was as follows. Amortization expense, related to intangible assets, is not a component of distributable earnings. | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | ||||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Unallocated | Total | |||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 393 | $ | 159 | $ | 582 | $ | 1,416 | $ | 89 | $ | 68 | $ | 782 | $ | 3,489 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 12 | — | 12 | ||||||||||||||||||||||||||||
Total | $ | 393 | $ | 159 | $ | 582 | $ | 1,416 | $ | 89 | $ | 80 | $ | 782 | $ | 3,501 | ||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 717 | $ | 148 | $ | 752 | $ | 2,010 | $ | 108 | $ | 67 | $ | 1,170 | $ | 4,972 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 10 | — | 10 | ||||||||||||||||||||||||||||
Total | $ | 717 | $ | 148 | $ | 752 | $ | 2,010 | $ | 108 | $ | 77 | $ | 1,170 | $ | 4,982 | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 1,132 | $ | 432 | $ | 1,561 | $ | 4,173 | $ | 238 | $ | 192 | $ | 2,332 | $ | 10,060 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 34 | — | 34 | ||||||||||||||||||||||||||||
Total | $ | 1,132 | $ | 432 | $ | 1,561 | $ | 4,173 | $ | 238 | $ | 226 | $ | 2,332 | $ | 10,094 | ||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 1,546 | $ | 358 | $ | 1,760 | $ | 4,605 | $ | 309 | $ | 268 | $ | 2,838 | $ | 11,684 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 34 | — | 34 | ||||||||||||||||||||||||||||
Total | $ | 1,546 | $ | 358 | $ | 1,760 | $ | 4,605 | $ | 309 | $ | 302 | $ | 2,838 | $ | 11,718 | ||||||||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
These financial statements include a discussion of material events, if any, which have occurred subsequent to September 30, 2013 (referred to as “subsequent events”) through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. | |
For additional subsequent events, see Notes 6 and 8. |
CONSOLIDATING_FINANCIAL_INFORM
CONSOLIDATING FINANCIAL INFORMATION | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Consolidating Financial Information | ' | |||||||||||||||||||||||
CONSOLIDATING FINANCIAL INFORMATION | ' | |||||||||||||||||||||||
CONSOLIDATING FINANCIAL INFORMATION | ||||||||||||||||||||||||
The consolidating financial information presents the balance sheet, statement of operations and statement of cash flows for Fortress Operating Group (on a combined basis), FOE II (New) LP and Fortress Investment Group LLC (including its consolidated subsidiaries other than those within Fortress Operating Group) on a deconsolidated basis, as well as the related eliminating entries for intercompany balances and transactions, which sum to Fortress Investment Group’s consolidated financial statements as of, and for the nine months ended September 30, 2013. | ||||||||||||||||||||||||
Fortress Operating Group includes all of Fortress’s operating and investing entities. The upper tier Fortress Operating Group entities, other than FOE II (New) LP, are the obligors on Fortress’s credit agreement (Note 4). Segregating the financial results of this group of entities provides a more transparent view of the capital deployed in Fortress’s businesses as well as the relevant ratios for borrowing entities. | ||||||||||||||||||||||||
The consolidating balance sheet information is as follows: | ||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 292,676 | $ | 1,411 | $ | — | $ | 17,027 | $ | — | $ | 311,114 | ||||||||||||
Due from affiliates | 164,285 | 1,723 | (207 | ) | 3,125 | (3,125 | ) | 165,801 | ||||||||||||||||
Investments | 1,263,392 | 175 | (175 | ) | 550,886 | (550,886 | ) | 1,263,392 | ||||||||||||||||
Investments in options | 100,123 | — | — | — | — | 100,123 | ||||||||||||||||||
Deferred tax asset | 2,913 | — | — | 368,031 | — | 370,944 | ||||||||||||||||||
Other assets | 121,570 | 461 | — | 24,228 | — | 146,259 | ||||||||||||||||||
$ | 1,944,959 | $ | 3,770 | $ | (382 | ) | $ | 963,297 | $ | (554,011 | ) | $ | 2,357,633 | |||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Accrued compensation and benefits | $ | 303,238 | $ | 2,123 | $ | — | $ | — | $ | — | $ | 305,361 | ||||||||||||
Due to affiliates | 85,011 | 207 | (207 | ) | 261,609 | (3,125 | ) | 343,495 | ||||||||||||||||
Deferred incentive income | 287,182 | — | — | — | — | 287,182 | ||||||||||||||||||
Debt obligations payable | — | — | — | — | — | — | ||||||||||||||||||
Other liabilities | 85,740 | 145 | — | 13,965 | — | 99,850 | ||||||||||||||||||
761,171 | 2,475 | (207 | ) | 275,574 | (3,125 | ) | 1,035,888 | |||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Paid-in capital | 5,697,315 | 3,575 | (175 | ) | 2,121,595 | (5,700,715 | ) | 2,121,595 | ||||||||||||||||
Retained earnings (accumulated deficit) | (4,567,834 | ) | (2,280 | ) | — | (1,431,944 | ) | 4,570,114 | (1,431,944 | ) | ||||||||||||||
Accumulated other comprehensive | (5,913 | ) | — | — | (1,928 | ) | 5,913 | (1,928 | ) | |||||||||||||||
income (loss) | ||||||||||||||||||||||||
Total Fortress shareholders' equity (B) | 1,123,568 | 1,295 | (175 | ) | 687,723 | (1,124,688 | ) | 687,723 | ||||||||||||||||
Principals' and others' interests in equity of consolidated subsidiaries | 60,220 | — | — | — | 573,802 | 634,022 | ||||||||||||||||||
Total Equity | 1,183,788 | 1,295 | (175 | ) | 687,723 | (550,886 | ) | 1,321,745 | ||||||||||||||||
$ | 1,944,959 | $ | 3,770 | $ | (382 | ) | $ | 963,297 | $ | (554,011 | ) | $ | 2,357,633 | |||||||||||
(A) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(B) | Includes the Principals’ (and one senior employee's) equity in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
The consolidating statement of operations information is as follows: | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Management fees: affiliates | $ | 386,487 | $ | 2,470 | $ | — | $ | — | $ | — | $ | 388,957 | ||||||||||||
Management fees: non-affiliates | 45,108 | 423 | — | — | — | 45,531 | ||||||||||||||||||
Incentive income: affiliates | 103,176 | — | — | — | — | 103,176 | ||||||||||||||||||
Incentive income: non-affiliates | 4,770 | — | — | — | — | 4,770 | ||||||||||||||||||
Expense reimbursements: affiliates | 130,336 | 18,972 | — | — | — | 149,308 | ||||||||||||||||||
Expense reimbursements: non-affiliates | 4,752 | — | — | — | — | 4,752 | ||||||||||||||||||
Other revenues | 3,162 | 2 | — | 3,423 | (3,633 | ) | 2,954 | |||||||||||||||||
677,791 | 21,867 | — | 3,423 | (3,633 | ) | 699,448 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Interest expense | 4,740 | 33 | — | 3,716 | (3,633 | ) | 4,856 | |||||||||||||||||
Compensation and benefits | 518,177 | 21,414 | — | — | — | 539,591 | ||||||||||||||||||
General, administrative and other | 98,768 | 1,201 | — | 1 | — | 99,970 | ||||||||||||||||||
Depreciation and amortization | 10,050 | 44 | — | — | — | 10,094 | ||||||||||||||||||
631,735 | 22,692 | — | 3,717 | (3,633 | ) | 654,511 | ||||||||||||||||||
Other Income (Loss) | ||||||||||||||||||||||||
Gains (losses) | 45,583 | (5 | ) | — | — | — | 45,578 | |||||||||||||||||
Tax receivable agreement liability | — | — | — | (7,739 | ) | — | (7,739 | ) | ||||||||||||||||
adjustment | ||||||||||||||||||||||||
Earnings (losses) from equity method | 125,515 | — | — | 96,655 | (96,655 | ) | 125,515 | |||||||||||||||||
investees | ||||||||||||||||||||||||
171,098 | (5 | ) | — | 88,916 | (96,655 | ) | 163,354 | |||||||||||||||||
Income (Loss) Before Income Taxes | 217,154 | (830 | ) | — | 88,622 | (96,655 | ) | 208,291 | ||||||||||||||||
Income tax benefit (expense) | (8,258 | ) | 10 | — | (33,988 | ) | — | (42,236 | ) | |||||||||||||||
Net Income (Loss) | $ | 208,896 | $ | (820 | ) | $ | — | $ | 54,634 | $ | (96,655 | ) | $ | 166,055 | ||||||||||
Principals' and Others' Interests in | $ | 6,768 | $ | — | $ | — | $ | — | $ | 104,653 | $ | 111,421 | ||||||||||||
Income (Loss) of Consolidated Subsidiaries | ||||||||||||||||||||||||
Net Income (Loss) Attributable to Class A | $ | 202,128 | $ | (820 | ) | $ | — | $ | 54,634 | $ | (201,308 | ) | $ | 54,634 | ||||||||||
Shareholders (B) | ||||||||||||||||||||||||
(A) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(B) | Includes net income (loss) attributable to the Principals’ (and one senior employee’s) interests in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
The consolidating statement of cash flows information is as follows: | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||||||
Net income (loss) | $ | 208,896 | $ | (820 | ) | $ | — | $ | 54,634 | $ | (96,655 | ) | $ | 166,055 | ||||||||||
Adjustments to reconcile net income (loss) to net | ||||||||||||||||||||||||
cash provided by (used in) operating activities | ||||||||||||||||||||||||
Depreciation and amortization | 10,050 | 44 | — | — | — | 10,094 | ||||||||||||||||||
Other amortization and accretion | 704 | — | — | — | — | 704 | ||||||||||||||||||
(Earnings) losses from equity method | (125,515 | ) | — | — | (96,655 | ) | 96,655 | (125,515 | ) | |||||||||||||||
investees | ||||||||||||||||||||||||
Distributions of earnings from equity | 53,576 | — | — | — | — | 53,576 | ||||||||||||||||||
method investees | ||||||||||||||||||||||||
(Gains) losses | (45,583 | ) | 5 | — | — | — | (45,578 | ) | ||||||||||||||||
Deferred incentive income | (50,262 | ) | — | — | — | — | (50,262 | ) | ||||||||||||||||
Deferred tax (benefit) expense | 1,234 | — | — | 51,814 | — | 53,048 | ||||||||||||||||||
Adjustment of estimated forfeited non-cash | 43 | — | — | — | — | 43 | ||||||||||||||||||
compensation | ||||||||||||||||||||||||
Options received from affiliates | (36,470 | ) | — | — | — | — | (36,470 | ) | ||||||||||||||||
Tax receivable agreement liability | — | — | — | 7,739 | — | 7,739 | ||||||||||||||||||
adjustment | ||||||||||||||||||||||||
Equity-based compensation | 28,648 | — | — | — | — | 28,648 | ||||||||||||||||||
Options in affiliates granted to employees | 7,757 | — | — | — | — | 7,757 | ||||||||||||||||||
Allowance for doubtful accounts | 590 | — | — | — | — | 590 | ||||||||||||||||||
Cash flows due to changes in | ||||||||||||||||||||||||
Due from affiliates | (69,626 | ) | (289 | ) | (1,718 | ) | 149,616 | (166,259 | ) | (88,276 | ) | |||||||||||||
Other assets | 19,830 | 149 | — | (18,029 | ) | — | 1,950 | |||||||||||||||||
Accrued compensation and benefits | 204,305 | 413 | — | — | — | 204,718 | ||||||||||||||||||
Due to affiliates | (143,364 | ) | (2,317 | ) | 1,718 | (16,559 | ) | 166,259 | 5,737 | |||||||||||||||
Deferred incentive income | 105,753 | — | — | — | — | 105,753 | ||||||||||||||||||
Other liabilities | 32,274 | 39 | — | (116 | ) | — | 32,197 | |||||||||||||||||
Net cash provided by (used in) operating | 202,840 | (2,776 | ) | — | 132,444 | — | 332,508 | |||||||||||||||||
activities | ||||||||||||||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||||||||||
Contributions to equity method investees | (25,885 | ) | — | — | (62,681 | ) | 62,681 | (25,885 | ) | |||||||||||||||
Distributions of capital from equity method | 257,829 | — | — | 77,563 | (77,563 | ) | 257,829 | |||||||||||||||||
investees | ||||||||||||||||||||||||
Proceeds from sale of direct investments | 9,951 | — | — | — | — | 9,951 | ||||||||||||||||||
Purchase of equity securities | (19,460 | ) | — | — | — | — | (19,460 | ) | ||||||||||||||||
Purchase of fixed assets | (7,777 | ) | — | — | — | — | (7,777 | ) | ||||||||||||||||
Net cash provided by (used in) investing | 214,658 | — | — | 14,882 | (14,882 | ) | 214,658 | |||||||||||||||||
activities | ||||||||||||||||||||||||
Continued on next page. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Cash Flows From Financing Activities | ||||||||||||||||||||||||
Repayments of debt obligations | — | — | — | (149,453 | ) | — | (149,453 | ) | ||||||||||||||||
Payment of deferred financing costs | (2,367 | ) | — | — | — | — | (2,367 | ) | ||||||||||||||||
Issuance (purchase) of Class A shares (RSU | (61,016 | ) | — | — | 61,016 | — | — | |||||||||||||||||
settlements) | ||||||||||||||||||||||||
Capital contributions (distributions) | 57,616 | 3,400 | — | — | (61,016 | ) | — | |||||||||||||||||
Dividends and dividend equivalents paid | (77,111 | ) | — | — | (41,955 | ) | 75,898 | (43,168 | ) | |||||||||||||||
Principals' and others' interests in equity of | 391 | — | — | — | — | 391 | ||||||||||||||||||
consolidated subsidiaries - contributions | ||||||||||||||||||||||||
Principals' and others' interests in equity of | (145,697 | ) | — | — | — | — | (145,697 | ) | ||||||||||||||||
consolidated subsidiaries - distributions | ||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (228,184 | ) | 3,400 | — | (130,392 | ) | 14,882 | (340,294 | ) | |||||||||||||||
Net Increase (Decrease) in Cash and Cash | 189,314 | 624 | — | 16,934 | — | 206,872 | ||||||||||||||||||
Equivalents | ||||||||||||||||||||||||
Cash and Cash Equivalents, Beginning of Period | 103,362 | 787 | — | 93 | — | 104,242 | ||||||||||||||||||
Cash and Cash Equivalents, End of Period | $ | 292,676 | $ | 1,411 | $ | — | $ | 17,027 | $ | — | $ | 311,114 | ||||||||||||
(A) | Other than Fortress Operating Group. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||
Schedule of financial statement guide | ' | ||||
FINANCIAL STATEMENT GUIDE | |||||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Balance Sheet | |||||
Due from Affiliates | 6 | Generally, management fees, expense reimbursements and incentive income due from Fortress Funds. | |||
Investments and Investments in Options | 3 | Primarily the carrying value of Fortress’s principal investments in the Fortress Funds. | |||
Deferred Tax Asset | 5 | Relates to potential future tax benefits. | |||
Due to Affiliates | 6 | Generally, amounts due to the Principals related to their interests in Fortress Operating Group and the tax receivable agreement. | |||
Deferred Incentive Income | 2 | Incentive income already received from certain Fortress Funds based on past performance, which is subject to contingent repayment based on future performance. | |||
Debt Obligations Payable | 4 | The balance outstanding on the credit agreement and promissory note. | |||
Statement of Operations | |||||
Management Fees: Affiliates | 2 | Fees earned for managing Fortress Funds, generally determined based on the size of such funds. | |||
Management Fees: Non-Affiliates | 2 | Fees earned from managed accounts and our traditional fixed income asset management business, generally determined based on the amount managed. | |||
Incentive Income: Affiliates | 2 | Income earned from Fortress Funds, based on the performance of such funds. | |||
Incentive Income: Non- Affiliates | 2 | Income earned from managed accounts, based on the performance of such accounts. | |||
Compensation and Benefits | 7 | Includes equity-based, profit-sharing and other compensation to employees. | |||
Gains (Losses) | 3 | The result of asset dispositions or changes in the fair value of investments or other financial instruments which are marked to market (including the Castles and GAGFAH). | |||
Tax Receivable Agreement Liability Adjustment | 5 | Represents a change in the amount due to the Principals under the tax receivable agreement. | |||
Earnings (Losses) from Equity Method Investees | 3 | Fortress’s share of the net earnings (losses) of the Fortress Funds resulting from its principal investments. | |||
Income Tax Benefit (Expense) | 5 | The net tax result related to the current period. Certain of Fortress’s revenues are not subject to taxes because they do not flow through taxable entities. Furthermore, Fortress has significant permanent differences between its GAAP and tax basis earnings. | |||
Selected Financial Statement Captions | Note Reference | Explanation | |||
Principals’ and Others’ Interests in (Income) Loss of Consolidated Subsidiaries | 6 | Primarily the Principals’ and employees’ share of Fortress’s earnings based on their ownership interests in subsidiaries, including Fortress Operating Group. | |||
Earnings Per Share | 8 | GAAP earnings per Class A share based on Fortress’s capital structure, which is comprised of outstanding and unvested equity interests, including interests which participate in Fortress’s earnings, at both the Fortress and subsidiary levels. | |||
Other | |||||
Distributions | 8 | A summary of dividends and distributions, and the related outstanding shares and units, is provided. | |||
Distributable Earnings | 10 | A presentation of our financial performance by segment (fund type) is provided, on the basis of the operating performance measure used by Fortress’s management committee. |
MANAGEMENT_AGREEMENTS_AND_FORT1
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Management and Agreement Fortress Funds | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of management fees and incentive income recognized | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Fortress recognized management fees and incentive income as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 34,281 | $ | 29,891 | $ | 100,781 | $ | 89,148 | |||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 123 | 112 | 345 | 283 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 6,433 | 708 | 21,742 | 1,815 | |||||||||||||||||||||||||||||||||||||||||||
Castles | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 13,289 | 13,744 | 42,040 | 38,427 | |||||||||||||||||||||||||||||||||||||||||||
Management fees, options: affil. | — | 8,298 | 36,470 | 21,524 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 643 | 359 | 2,959 | 3,563 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 4,178 | — | 5,378 | — | |||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 24,313 | 14,783 | 61,373 | 47,946 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 6,324 | 3,395 | 18,008 | 9,592 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 10,886 | 563 | 17,350 | 1,436 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | 1,138 | 188 | 3,625 | 312 | |||||||||||||||||||||||||||||||||||||||||||
Credit Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 25,455 | 24,688 | 75,284 | 76,005 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 26 | 58 | 151 | 313 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 10,756 | 466 | 31,330 | 1,749 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | — | — | — | 130 | |||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 23,633 | 21,402 | 71,115 | 63,885 | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 35 | 36 | 104 | 108 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: affil. | 8,681 | 4,239 | 27,376 | 33,994 | |||||||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | 769 | 600 | 1,145 | 1,122 | |||||||||||||||||||||||||||||||||||||||||||
Logan Circle | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | 622 | — | 1,894 | — | |||||||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | 8,210 | 6,802 | 23,964 | 18,675 | |||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees: affil. | $ | 121,593 | $ | 112,806 | $ | 388,957 | $ | 336,935 | |||||||||||||||||||||||||||||||||||||||
Management fees: non-affil. | $ | 15,361 | $ | 10,762 | $ | 45,531 | $ | 32,534 | |||||||||||||||||||||||||||||||||||||||
Incentive income: affil. (A) | $ | 40,934 | $ | 5,976 | $ | 103,176 | $ | 38,994 | |||||||||||||||||||||||||||||||||||||||
Incentive income: non-affil. | $ | 1,907 | $ | 788 | $ | 4,770 | $ | 1,564 | |||||||||||||||||||||||||||||||||||||||
(A) See “Deferred Incentive Income” below. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of deferred incentive income from the Fortress Funds on an inception to date basis | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Distributed-Gross | Distributed-Recognized (A) | Distributed-Unrecognized (B) | Undistributed net of intrinsic clawback (C) (D) | ||||||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of December 31, 2012 | $ | 894,278 | $ | (662,432 | ) | $ | 231,846 | $ | 527,432 | ||||||||||||||||||||||||||||||||||||||
Fortress Funds which matured (no longer subject | (2,180 | ) | 2,180 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
to clawback) | |||||||||||||||||||||||||||||||||||||||||||||||
Share of income (loss) of Fortress Funds | N/A | N/A | N/A | 397,018 | |||||||||||||||||||||||||||||||||||||||||||
Distribution of private equity incentive income | 106,709 | N/A | 106,709 | (106,709 | ) | ||||||||||||||||||||||||||||||||||||||||||
Recognition of previously deferred incentive income | N/A | (50,262 | ) | (50,262 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Changes in foreign exchange rates | (1,111 | ) | — | (1,111 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||
Deferred incentive income as of September 30, 2013 | $ | 997,696 | $ | (710,514 | ) | $ | 287,182 | $ | 817,741 | ||||||||||||||||||||||||||||||||||||||
Deferred incentive income including Fortress Funds | $ | 1,051,352 | $ | (764,170 | ) | ||||||||||||||||||||||||||||||||||||||||||
which matured | |||||||||||||||||||||||||||||||||||||||||||||||
(A) | All related contingencies have been resolved. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Reflected on the balance sheet. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | At September 30, 2013, the net undistributed incentive income is comprised of $903.5 million of gross undistributed incentive income, net of $85.8 million of intrinsic clawback (see next page). The net undistributed incentive income represents the amount that would be received by Fortress from the related funds if such funds were liquidated on September 30, 2013 at their net asset values. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | From inception to September 30, 2013, Fortress has paid $433.6 million of compensation expense under its employee profit sharing arrangements (Note 7) in connection with distributed incentive income, of which $27.9 million has not been expensed because management has determined that it is not probable of being incurred as an expense and will be recovered from the related individuals. If the $903.5 million of gross undistributed incentive income were realized, Fortress would recognize and pay an additional $370.3 million of compensation expense. | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment funds and incentive income thresholds | ' | ||||||||||||||||||||||||||||||||||||||||||||||
The following tables summarize information with respect to the Fortress Funds, other than the Castles, and their related incentive income thresholds as of September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||||||||||||||||||||
NIH (1998) | In Liquidation | $ | 415,574 | $ | (823,588 | ) | $ | — | $ N/A | $ | — | $ N/A | $ | — | $ | 94,513 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Fund I (1999) (K) | Closed May-13 | 1,015,943 | (2,847,929 | ) | — | N/A | — | N/A | — | 344,939 | — | — | — | ||||||||||||||||||||||||||||||||||
Fund II (2002) | 13-Feb | 1,974,298 | (3,299,244 | ) | 125,849 | 1,450,795 | — | N/A | — | 287,985 | 27,288 | 2,490 | 1,594 | ||||||||||||||||||||||||||||||||||
Fund III (2004) | 15-Jan | 2,762,992 | (1,576,429 | ) | 2,830,089 | 1,643,526 | 1,687,083 | 43,557 | — | 66,903 | 66,903 | 66,903 | 45,108 | ||||||||||||||||||||||||||||||||||
Fund III Coinvestment (2004) | 15-Jan | 273,649 | (178,272 | ) | 118,548 | 23,171 | 204,272 | 181,101 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV (2006) | 17-Jan | 3,639,561 | (587,014 | ) | 4,388,567 | 1,336,020 | 2,226,991 | 890,971 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund IV Coinvestment (2006) | 17-Jan | 762,696 | (138,625 | ) | 583,800 | (40,271 | ) | 477,142 | 517,413 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Fund V (2007) | 18-Feb | 4,103,713 | (143,711 | ) | 4,387,576 | 427,574 | 1,925,595 | 1,498,021 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fund V Coinvestment (2007) | 18-Feb | 990,480 | (155 | ) | 652,927 | (337,398 | ) | 508,968 | 846,366 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
GAGACQ Fund (2004) (GAGFAH) | Closed | 545,663 | (595,401 | ) | N/A | N/A | N/A | N/A | N/A | 51,476 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||
9-Nov | |||||||||||||||||||||||||||||||||||||||||||||||
FRID (2005) (GAGFAH) | 15-Apr | 1,220,229 | (570,599 | ) | 540,433 | (109,197 | ) | 818,454 | 927,651 | — | 16,447 | 16,447 | 16,447 | 10,041 | |||||||||||||||||||||||||||||||||
FRIC (2006) (Brookdale) | 16-May | 328,754 | (17,462 | ) | 226,547 | (84,745 | ) | 235,031 | 319,776 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
FICO (2006) (Intrawest) | 17-Jan | 724,525 | (5 | ) | (59,651 | ) | (784,171 | ) | 482,939 | 1,267,110 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
FHIF (2006) (Holiday) | 17-Jan | 1,543,463 | (63,178 | ) | 2,287,924 | 807,639 | 938,698 | 131,059 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
FECI (2007) (Florida East Coast / Flagler) | 18-Feb | 982,779 | (165 | ) | 962,051 | (20,563 | ) | 592,246 | 612,809 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | — | $ | 862,263 | $ | 110,638 | $ | 85,840 | $ | 56,743 | ||||||||||||||||||||||||||||||||||||||
Private Equity Funds in Investment Period | |||||||||||||||||||||||||||||||||||||||||||||||
WWTAI (2011) | 24-Jun | $ | 208,442 | $ | (15,304 | ) | $ | 209,767 | $ | 16,629 | $ | — | N/A | $ | 1,564 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
MSR Opportunities Fund I A (2012) | 22-Aug | 313,554 | (19,325 | ) | 322,868 | 28,639 | — | N/A | 2,765 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities Fund I B (2012) | 22-Aug | 75,946 | (4,680 | ) | 78,111 | 6,845 | — | N/A | 684 | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II A (2013) | 23-Jul | 28,139 | — | 27,141 | (998 | ) | 25 | 1,023 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II B (2013) | 23-Jul | 401 | — | 387 | (14 | ) | — | 14 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
MSR Opportunities II MA I (2013) | 23-Jul | 6,461 | — | 6,232 | (229 | ) | 6 | 235 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
$ | 5,013 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||
Fund (Vintage) (A) | Maturity Date (B) | Inception to Date | Inception to Date Distributions (C) | Net Asset Value (“NAV”) | NAV Surplus (Deficit) (D) | Current Preferred Return Threshold (E) | Gain to Cross Incentive Income Threshold (F) | Undistributed Incentive Income (G) | Distributed Incentive Income (H) | Distributed Incentive Income Subject to Clawback (I) | Gross Intrinsic Clawback (J) | Net Intrinsic Clawback (J) | |||||||||||||||||||||||||||||||||||
Capital Invested | |||||||||||||||||||||||||||||||||||||||||||||||
Credit PE Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Long Dated Value Fund I (2005) | 30-Apr | $ | 267,325 | $ | (65,011 | ) | $ | 303,409 | $ | 101,095 | $ | 122,540 | $ | 21,445 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Long Dated Value Fund II (2005) | 30-Nov | 274,280 | (124,635 | ) | 200,810 | 51,165 | 98,575 | 47,410 | — | 412 | — | — | — | ||||||||||||||||||||||||||||||||||
Long Dated Value Fund III (2007) | Feb-32 | 343,156 | (252,561 | ) | 217,333 | 126,738 | — | N/A | 18,166 | 5,042 | — | — | — | ||||||||||||||||||||||||||||||||||
LDVF Patent Fund (2007) | 27-Nov | 45,466 | (41,354 | ) | 41,465 | 37,353 | — | N/A | 2,884 | 461 | — | — | — | ||||||||||||||||||||||||||||||||||
Real Assets Fund (2007) | 17-Jun | 359,024 | (275,723 | ) | 193,582 | 110,281 | — | N/A | 11,912 | 5,285 | — | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund (2008) | 20-Oct | 5,493,685 | (6,366,576 | ) | 1,422,116 | 2,295,007 | — | N/A | 189,682 | 260,973 | 99,291 | — | — | ||||||||||||||||||||||||||||||||||
Credit Opportunities Fund II (2009) | 22-Jul | 2,162,162 | (1,770,179 | ) | 1,240,221 | 848,238 | — | N/A | 120,831 | 45,490 | 8,460 | — | — | ||||||||||||||||||||||||||||||||||
FCO Managed Account (2010) | 22-Jun | 549,492 | (380,679 | ) | 391,695 | 222,882 | — | N/A | 34,532 | 7,784 | — | — | — | ||||||||||||||||||||||||||||||||||
SIP Managed Account (2010) | 20-Sep | 11,000 | (28,768 | ) | 8,295 | 26,063 | — | N/A | 1,659 | 3,554 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund (2009) | 19-Jun | 1,073,051 | (951,289 | ) | 568,551 | 446,789 | — | N/A | 41,512 | 51,526 | 20,277 | — | — | ||||||||||||||||||||||||||||||||||
$ | 421,178 | $ | 380,527 | $ | 128,028 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Credit PE Funds in Investment Period | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Opportunities Fund III (2011) | 24-Mar | 1,446,817 | (565,323 | ) | 1,177,666 | 296,172 | — | N/A | 49,826 | 8,135 | 8,135 | — | — | ||||||||||||||||||||||||||||||||||
FCO Managed Accounts (2008-2012) | Oct-21 to Mar-27 | 2,948,653 | (2,141,672 | ) | 1,683,258 | 876,277 | — | N/A | 104,626 | 69,067 | 38,773 | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Yen) (2011) | 21-Dec | 419,069 | (125,469 | ) | 347,117 | 53,517 | — | N/A | 8,761 | 1,963 | — | — | — | ||||||||||||||||||||||||||||||||||
Japan Opportunity Fund II (Dollar) (2011) | 21-Dec | 354,099 | (85,249 | ) | 316,183 | 47,333 | — | N/A | 6,322 | 2,752 | — | — | — | ||||||||||||||||||||||||||||||||||
Net Lease Fund I (2010) | 20-Feb | 149,595 | (80,240 | ) | 142,209 | 72,854 | — | N/A | 8,034 | 1,545 | 1,545 | — | — | ||||||||||||||||||||||||||||||||||
Global Opportunities Fund (2010) | 20-Sep | 223,672 | (69,254 | ) | 205,821 | 51,403 | — | N/A | 10,030 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Life Settlements Fund (2010) | 22-Dec | 348,174 | (94,254 | ) | 237,362 | (16,558 | ) | 54,324 | 70,882 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Life Settlements Fund MA (2010) | 22-Dec | 28,654 | (7,696 | ) | 19,447 | (1,511 | ) | 4,462 | 5,973 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Real Estate Opportunities Fund (2011) | 24-Sep | 304,730 | (77,022 | ) | 262,940 | 35,232 | — | N/A | 2,431 | 629 | 63 | — | — | ||||||||||||||||||||||||||||||||||
Real Estate Opportunities REOC Fund (2011) | 23-Oct | 31,260 | (8,904 | ) | 28,421 | 6,065 | — | N/A | 1,207 | — | — | — | — | ||||||||||||||||||||||||||||||||||
$ | 191,237 | $ | 84,091 | $ | 48,516 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Incentive Income Eligible NAV (L) | Gain to Cross Incentive Income Threshold (M) | Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold (N) | Undistributed Incentive Income (O) | Year to Date Incentive Income Crystallized (P) | |||||||||||||||||||||||||||||||||||||||||||
Liquid Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Macro Funds (Q) (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 1,497,640 | $ | 9,154 | 82.5 | % | $ | 24,875 | $ | 15,719 | |||||||||||||||||||||||||||||||||||||
Single investor funds | 918,685 | 4,505 | 28.9 | % | 5,390 | 91 | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 17,977 | 16,278 | N/A | 304 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 173,900 | 114,105 | N/A | 2,951 | — | ||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 1,147,066 | 409 | 96.8 | % | 22,054 | 3,725 | |||||||||||||||||||||||||||||||||||||||||
Asia Macro Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 1,556,613 | 5,230 | 66.1 | % | 21,212 | 1,375 | |||||||||||||||||||||||||||||||||||||||||
Managed accounts | 191,060 | — | 100 | % | 3,027 | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Convex Asia Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund Investments | 106,210 | 3,090 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Fortress Partners Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 55,680 | 33,877 | 0.1 | % | 1 | — | |||||||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 132,251 | 24,848 | N/A | 2,477 | — | ||||||||||||||||||||||||||||||||||||||||||
Credit Hedge Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Special Opportunities Funds (T) | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | $ | 3,717,456 | $ | — | 100 | % | $ | 103,834 | $ | — | |||||||||||||||||||||||||||||||||||||
Sidepocket investments (R) | 96,081 | 1,606 | N/A | 5,016 | — | ||||||||||||||||||||||||||||||||||||||||||
Sidepocket investments - redeemers (S) | 233,729 | 69,289 | N/A | 4,044 | — | ||||||||||||||||||||||||||||||||||||||||||
Main fund investments (liquidating) (U) | 853,839 | — | 100 | % | 85,290 | 28,480 | |||||||||||||||||||||||||||||||||||||||||
Managed accounts | 5,311 | 47,666 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Worden Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Main fund investments | 223,026 | — | 100 | % | 5,677 | 2,680 | |||||||||||||||||||||||||||||||||||||||||
Value Recovery Funds (V) | |||||||||||||||||||||||||||||||||||||||||||||||
Managed accounts | 22,359 | 4,195 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
(A) | Vintage represents the year in which the fund was formed. | ||||||||||||||||||||||||||||||||||||||||||||||
(B) | Represents the contractual maturity date including the assumed exercise of all extension options, which in some cases may require the approval of the applicable fund advisory board. Private equity funds that have reached their maturity date are included in the table to the extent they have generated incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(C) | Includes an increase to the NAV surplus related to the U.S. income tax expense of certain investment entities, which is considered a distribution for the purposes of computing incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(D) | A NAV deficit represents the gain needed to cross the incentive income threshold (as described in (F) below), excluding the impact of any relevant performance (i.e. preferred return) thresholds (as described in (E) below). | ||||||||||||||||||||||||||||||||||||||||||||||
(E) | Represents the gain needed to achieve the current relevant performance thresholds, assuming the gain described in (D) above is already achieved. | ||||||||||||||||||||||||||||||||||||||||||||||
(F) | Represents the immediate increase in NAV needed for Fortress to begin earning incentive income, including the achievement of any relevant performance thresholds. It does not include the amount needed to earn back intrinsic clawback (see (J) below), if any. Incentive income is not recorded as revenue until it is received and any related contingencies are resolved (see (I) below). | ||||||||||||||||||||||||||||||||||||||||||||||
(G) | Represents the amount of additional incentive income Fortress would receive if the fund were liquidated at the end of the period at its NAV. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
(H) | Represents the amount of incentive income previously received from the fund since inception. | ||||||||||||||||||||||||||||||||||||||||||||||
(I) | Represents the amount of incentive income previously received from the fund which is still subject to contingencies and is therefore recorded on the consolidated balance sheet as Deferred Incentive Income. This amount will either be recorded as revenue when all related contingencies are resolved, or, if the fund does not meet certain performance thresholds, will be returned by Fortress to the fund (i.e., “clawed back”). | ||||||||||||||||||||||||||||||||||||||||||||||
(J) | Represents the amount of incentive income previously received from the fund that would be clawed back (i.e., returned by Fortress to the fund) if the fund were liquidated at the end of the period at its NAV, excluding the effect of any tax adjustments. Employees, former employees and affiliates of Fortress would be required to return a portion of this incentive income that was paid to them under profit sharing arrangements. “Gross” and “Net” refer to amounts that are gross and net, respectively, of this employee/affiliate portion of the intrinsic clawback. Fortress remains liable to the funds for these amounts even if it is unable to collect the amounts from employees/affiliates. Fortress withheld a portion of the amounts due to employees under these profit sharing arrangements as a reserve against future clawback; as of September 30, 2013, Fortress held $41.0 million of such amounts on behalf of employees related to all of the private equity funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(K) | The Fund I distributed incentive income amount is presented for the total fund, of which Fortress was entitled to approximately 50%. | ||||||||||||||||||||||||||||||||||||||||||||||
(L) | Represents the portion of a fund’s NAV or trading level that is eligible to earn incentive income. | ||||||||||||||||||||||||||||||||||||||||||||||
(M) | Represents, for those fund investors whose NAV is below the performance threshold Fortress needs to obtain before it can earn incentive income from such investors (their “incentive income threshold” or “high water mark”), the amount by which their aggregate incentive income thresholds exceed their aggregate NAVs. The amount by which the NAV of each investor within this category is below their respective incentive income threshold varies and, therefore, Fortress may begin earning incentive income from certain investors before this entire amount is earned back. Fortress earns incentive income whenever the assets of new investors, as well as of investors whose NAV exceeds their incentive income threshold, increase in value. | ||||||||||||||||||||||||||||||||||||||||||||||
(N) | Represents the percentage which is computed by dividing (i) the aggregate NAV of all investors who are at or above their respective incentive income thresholds, by (ii) the total incentive income eligible NAV of the fund. The amount by which the NAV of each fund investor who is not in this category is below their respective incentive income threshold may vary, and may vary significantly. This percentage represents the performance of only the main fund investments and managed accounts relative to their respective incentive income thresholds. It does not incorporate the impact of unrealized losses on sidepocket investments that can reduce the amount of incentive income earned from certain funds. See footnote (R) below. | ||||||||||||||||||||||||||||||||||||||||||||||
(O) | Represents the amount of additional incentive income Fortress would earn from the fund if it were liquidated at the end of the period at its NAV. This amount is currently subject to performance contingencies generally until the end of the year or, in the case of sidepocket investments, until such investments are realized. For the Value Recovery Fund managed accounts, Fortress can earn incentive income if aggregate realizations exceed an agreed threshold. Main Fund Investments (Liquidating) pay incentive income only after all capital is returned. The incentive income amounts presented in this table are based on the estimated results of investment vehicles for the current period. These estimates are subject to change based on the final results of such vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||
(P) | Represents the amount of incentive income Fortress has earned in the current period which is not subject to clawback. | ||||||||||||||||||||||||||||||||||||||||||||||
(Q) | The Drawbridge Global Macro SPV (the “SPV”), which was established in February 2009 to liquidate illiquid investments and distribute the proceeds to then existing investors, is not subject to incentive income and is therefore not presented in the table. However, realized gains or losses within the SPV can decrease or increase, respectively, the gain needed to cross the incentive income threshold for investors with a corresponding investment in the main fund. The unrealized gains and losses within the SPV at September 30, 2013, as if they became realized, would not materially impact the amounts presented in the table. | ||||||||||||||||||||||||||||||||||||||||||||||
(R) | Represents investments held in sidepockets (also known as special investment accounts), which generally have investment profiles similar to private equity funds. The performance of these investments may impact Fortress’s ability to earn incentive income from main fund investments. For the credit hedge funds and Fortress Partners Funds, realized and unrealized losses from individual sidepockets below original cost may reduce the incentive income earned from main fund investments. For the Macro Funds, only realized losses from individual sidepockets reduce the incentive income earned from main fund investments. Based on current unrealized losses in Macro Fund sidepockets, if all of the Macro Fund sidepockets were liquidated at their NAV at September 30, 2013, the undistributed incentive income from the Macro main fund would decrease by $0.9 million. | ||||||||||||||||||||||||||||||||||||||||||||||
(S) | Represents investments held in sidepockets for investors with no corresponding investment in the related main fund investments. In the case of the Macro Funds, such investors may have investments in the SPV (see (Q) above). | ||||||||||||||||||||||||||||||||||||||||||||||
(T) | Includes onshore and offshore funds. | ||||||||||||||||||||||||||||||||||||||||||||||
(U) | Relates to accounts where investors have provided return of capital notices and are subject to payout as underlying fund investments are realized. | ||||||||||||||||||||||||||||||||||||||||||||||
(V) | Excludes the Value Recovery Funds which had a NAV of $426.6 million at September 30, 2013. Fortress began managing the third party originated Value Recovery Funds in June 2009 and generally does not expect to earn any significant incentive income from the fund investments. | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of private equity funds formed during the period | ' | ||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, Fortress formed new Private Equity funds which had capital commitments as follows as of September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||
Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 15,856 | |||||||||||||||||||||||||||||||||||||||||||||
Fortress's affiliates | 400 | ||||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 1,083,744 | ||||||||||||||||||||||||||||||||||||||||||||||
Total capital commitments | $ | 1,100,000 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of liquid hedge funds formed during period | ' | ||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, Fortress formed, or became the manager of, hedge funds with net asset values as follows as of September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||
Liquid | |||||||||||||||||||||||||||||||||||||||||||||||
Fortress | $ | 100 | |||||||||||||||||||||||||||||||||||||||||||||
Fortress's affiliates | — | ||||||||||||||||||||||||||||||||||||||||||||||
Third party investors | 584,524 | ||||||||||||||||||||||||||||||||||||||||||||||
Total NAV (A) | $ | 584,624 | |||||||||||||||||||||||||||||||||||||||||||||
(A) Or other fee paying basis, as applicable. Approximately $435.2 million represents a transfer of interest from another liquid hedge fund. |
INVESTMENTS_AND_FAIR_VALUE_Tab
INVESTMENTS AND FAIR VALUE (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investments and Fair Value | ' | |||||||||||||||||||||||||||||||
Summary of investments | ' | |||||||||||||||||||||||||||||||
Investments can be summarized as follows: | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Equity method investees | $ | 1,183,916 | $ | 1,135,329 | ||||||||||||||||||||||||||||
Equity method investees, held at fair value (A) | 79,476 | 76,355 | ||||||||||||||||||||||||||||||
Total equity method investments | $ | 1,263,392 | $ | 1,211,684 | ||||||||||||||||||||||||||||
Options in equity method investees | $ | 100,123 | $ | 38,077 | ||||||||||||||||||||||||||||
(A) | Includes publicly traded private equity portfolio companies, primarily GAGFAH, as well as the Castles (NCT, NRZ and ECT). | |||||||||||||||||||||||||||||||
Summary of gains (losses) | ' | |||||||||||||||||||||||||||||||
Gains (losses) can be summarized as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 36 | $ | 57 | $ | (335 | ) | $ | 548 | |||||||||||||||||||||||
Net realized gains (losses) from affiliate investments | 6,616 | (65 | ) | 6,499 | (106 | ) | ||||||||||||||||||||||||||
Net unrealized gains (losses) | 52 | (498 | ) | 5,654 | (798 | ) | ||||||||||||||||||||||||||
Net unrealized gains (losses) from affiliate investments | 799 | (1,722 | ) | 33,760 | 29,898 | |||||||||||||||||||||||||||
Total gains (losses) | $ | 7,503 | $ | (2,228 | ) | $ | 45,578 | $ | 29,542 | |||||||||||||||||||||||
Schedule of gains (losses) generated | ' | |||||||||||||||||||||||||||||||
These gains (losses) were generated as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Mark to fair value on affiliate investments and options | $ | 7,008 | $ | (1,726 | ) | $ | 39,590 | $ | 29,895 | |||||||||||||||||||||||
Mark to fair value on derivatives | (1,476 | ) | (498 | ) | 3,805 | (866 | ) | |||||||||||||||||||||||||
Mark to fair value on equity securities | 1,527 | — | 1,524 | — | ||||||||||||||||||||||||||||
Other | 444 | (4 | ) | 659 | 513 | |||||||||||||||||||||||||||
Total gains (losses) | $ | 7,503 | $ | (2,228 | ) | $ | 45,578 | $ | 29,542 | |||||||||||||||||||||||
Summary of financial information related to equity method investments | ' | |||||||||||||||||||||||||||||||
Summary financial information related to these investments is as follows: | ||||||||||||||||||||||||||||||||
Fortress’s Investment | Fortress’s Equity in Net Income (Loss) | |||||||||||||||||||||||||||||||
September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Private equity funds, excluding NIH | $ | 806,875 | $ | 720,817 | $ | 44,552 | $ | 35,939 | $ | 79,929 | $ | 70,644 | ||||||||||||||||||||
NIH | — | 1,177 | — | 50 | (554 | ) | 159 | |||||||||||||||||||||||||
Publicly traded portfolio companies (A)(B) | 64,176 | 67,313 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Newcastle (B) | 5,828 | 9,002 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
New Residential (B) | 6,866 | — | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Eurocastle (B) | 2,606 | 40 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total private equity | 886,351 | 798,349 | 44,552 | 35,989 | 79,375 | 70,803 | ||||||||||||||||||||||||||
Liquid hedge funds | 166,460 | 180,664 | 7,525 | 7,295 | 14,138 | 14,050 | ||||||||||||||||||||||||||
Credit hedge funds | 57,101 | 58,507 | 3,372 | 3,445 | 9,037 | 8,791 | ||||||||||||||||||||||||||
Credit PE funds | 145,274 | 166,482 | 5,311 | 5,446 | 23,161 | 16,532 | ||||||||||||||||||||||||||
Other | 8,206 | 7,682 | (252 | ) | (141 | ) | (196 | ) | 241 | |||||||||||||||||||||||
$ | 1,263,392 | $ | 1,211,684 | $ | 60,508 | $ | 52,034 | $ | 125,515 | $ | 110,417 | |||||||||||||||||||||
(A) | Represents Fortress’s direct investments in the common stock of publicly traded private equity portfolio companies, primarily GAGFAH. | |||||||||||||||||||||||||||||||
(B) | Fortress elected to record these investments at fair value pursuant to the fair value option for financial instruments. | |||||||||||||||||||||||||||||||
Summary of changes in investments in equity method investees | ' | |||||||||||||||||||||||||||||||
A summary of the changes in Fortress’s investments in equity method investees is as follows: | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Private Equity | Liquid | Credit | ||||||||||||||||||||||||||||||
NIH | Other Funds | Publicly Traded Portfolio Companies and Castles (A) | Hedge Funds | Hedge Funds | PE Funds | Other | Total | |||||||||||||||||||||||||
Investment, beginning | $ | 1,177 | $ | 720,817 | $ | 76,355 | $ | 180,664 | $ | 58,507 | $ | 166,482 | $ | 7,682 | $ | 1,211,684 | ||||||||||||||||
Earnings from equity method investees | (554 | ) | 79,929 | N/A | 14,138 | 9,037 | 23,161 | (196 | ) | 125,515 | ||||||||||||||||||||||
Other comprehensive income from equity | 12 | — | N/A | — | — | — | — | 12 | ||||||||||||||||||||||||
method investees | ||||||||||||||||||||||||||||||||
Contributions to equity method investees (B) | — | 16,084 | 319 | 58,663 | 149,892 | 22,282 | 854 | 248,094 | ||||||||||||||||||||||||
Distributions of earnings from equity | — | (8,921 | ) | N/A | (17,850 | ) | (9,373 | ) | (17,428 | ) | (4 | ) | (53,576 | ) | ||||||||||||||||||
method investees | ||||||||||||||||||||||||||||||||
Distributions of capital from equity | (635 | ) | (3,328 | ) | N/A | (69,155 | ) | (150,962 | ) | (49,350 | ) | (130 | ) | (273,560 | ) | |||||||||||||||||
method investees | ||||||||||||||||||||||||||||||||
Total distributions from equity method | (635 | ) | (12,249 | ) | N/A | (87,005 | ) | (160,335 | ) | (66,778 | ) | (134 | ) | (327,136 | ) | |||||||||||||||||
investees (B) | ||||||||||||||||||||||||||||||||
Mark to fair value - during period (C) | N/A | 648 | 11,003 | N/A | N/A | N/A | N/A | 11,651 | ||||||||||||||||||||||||
Translation adjustment | — | (1 | ) | 1,726 | — | — | 151 | — | 1,876 | |||||||||||||||||||||||
Dispositions | — | — | (9,927 | ) | — | — | (24 | ) | — | (9,951 | ) | |||||||||||||||||||||
Reclassification to Due to Affiliates (D) | — | 1,647 | — | — | — | — | — | 1,647 | ||||||||||||||||||||||||
Investment, ending | $ | — | $ | 806,875 | $ | 79,476 | $ | 166,460 | $ | 57,101 | $ | 145,274 | $ | 8,206 | $ | 1,263,392 | ||||||||||||||||
Ending balance of undistributed earnings | $ | — | $ | 94,421 | $ N/A | $ | 5,722 | $ | 1,774 | $ | 5,818 | $ | 2,046 | $ | 109,781 | |||||||||||||||||
(A) | Fortress elected to record these investments at fair value pursuant to the fair value option for financial instruments. | |||||||||||||||||||||||||||||||
(B) | The amounts presented above can be reconciled to the amounts presented on the statement of cash flows as follows: | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Contributions | Distributions of Capital | |||||||||||||||||||||||||||||||
Per Consolidated Statements of Cash Flows | $ | 25,885 | $ | 257,829 | ||||||||||||||||||||||||||||
Investments of incentive receivable amounts into Fortress Funds | 206,455 | — | ||||||||||||||||||||||||||||||
Change in distributions payable out of Fortress Funds | — | 3,066 | ||||||||||||||||||||||||||||||
Net funded* | 12,398 | 12,398 | ||||||||||||||||||||||||||||||
Consolidation of private equity liquidating entity | 2,553 | — | ||||||||||||||||||||||||||||||
Other | 803 | 267 | ||||||||||||||||||||||||||||||
Per Above | $ | 248,094 | $ | 273,560 | ||||||||||||||||||||||||||||
*In some instances, a private equity style fund may need to simultaneously make both a capital call (for new investments or expenses) and a capital distribution (related to realizations from existing investments). This results in a net funding. | ||||||||||||||||||||||||||||||||
(C) | Recorded to Gains (Losses). | |||||||||||||||||||||||||||||||
(D) | Represents a portion of the general partner liability discussed in Note 9. | |||||||||||||||||||||||||||||||
Schedule Reconciling Capital Activity in Equity Method Investments to the Statement of Cash Flows [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The amounts presented above can be reconciled to the amounts presented on the statement of cash flows as follows: | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Contributions | Distributions of Capital | |||||||||||||||||||||||||||||||
Per Consolidated Statements of Cash Flows | $ | 25,885 | $ | 257,829 | ||||||||||||||||||||||||||||
Investments of incentive receivable amounts into Fortress Funds | 206,455 | — | ||||||||||||||||||||||||||||||
Change in distributions payable out of Fortress Funds | — | 3,066 | ||||||||||||||||||||||||||||||
Net funded* | 12,398 | 12,398 | ||||||||||||||||||||||||||||||
Consolidation of private equity liquidating entity | 2,553 | — | ||||||||||||||||||||||||||||||
Other | 803 | 267 | ||||||||||||||||||||||||||||||
Per Above | $ | 248,094 | $ | 273,560 | ||||||||||||||||||||||||||||
*In some instances, a private equity style fund may need to simultaneously make both a capital call (for new investments or expenses) and a capital distribution (related to realizations from existing investments). This results in a net funding. | ||||||||||||||||||||||||||||||||
Schedule of ownership percentages in the tables reflective of the ownership interests held as of the end of the respective periods | ' | |||||||||||||||||||||||||||||||
The ownership percentages presented in the following tables are reflective of the ownership interests held as of the end of the respective periods. For tables which include more than one Fortress Fund, the ownership percentages are based on a weighted average by total equity of the funds as of period end. NIH, the Castles, GAGFAH and Other are not presented as they are insignificant to Fortress’s investments. | ||||||||||||||||||||||||||||||||
Private Equity Funds excluding NIH (B) | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | $ | 18,248,275 | $ | 15,944,821 | ||||||||||||||||||||||||||||
Debt | — | — | ||||||||||||||||||||||||||||||
Other liabilities | (178,957 | ) | (143,951 | ) | ||||||||||||||||||||||||||||
Equity | $ | 18,069,318 | $ | 15,800,870 | ||||||||||||||||||||||||||||
Fortress’s Investment | $ | 806,875 | $ | 720,817 | ||||||||||||||||||||||||||||
Ownership (A) | 4.5 | % | 4.6 | % | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Revenues and gains (losses) on investments | $ | 2,745,654 | $ | 2,763,969 | ||||||||||||||||||||||||||||
Expenses | (149,763 | ) | (140,842 | ) | ||||||||||||||||||||||||||||
Net Income (Loss) | $ | 2,595,891 | $ | 2,623,127 | ||||||||||||||||||||||||||||
Fortress’s equity in net income (loss) | $ | 79,929 | $ | 70,644 | ||||||||||||||||||||||||||||
Liquid Hedge Funds (C) | Credit Hedge Funds | Credit PE Funds (B) (D) | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Assets | $ | 9,293,405 | $ | 9,818,652 | $ | 9,431,681 | $ | 9,476,196 | $ | 9,536,328 | ||||||||||||||||||||||
Debt | — | (3,731,912 | ) | (3,329,686 | ) | (199,707 | ) | (75,413 | ) | |||||||||||||||||||||||
Other liabilities | (4,682,311 | ) | (315,294 | ) | (447,127 | ) | (262,226 | ) | (314,329 | ) | ||||||||||||||||||||||
Non-controlling interest | — | (2,394 | ) | (4,289 | ) | (7,887 | ) | (14,228 | ) | |||||||||||||||||||||||
Equity | $ | 6,267,484 | $ | 4,611,094 | $ | 5,769,052 | $ | 5,650,579 | $ | 9,006,376 | $ | 9,132,358 | ||||||||||||||||||||
Fortress’s Investment | $ | 166,460 | $ | 180,664 | $ | 57,101 | $ | 58,507 | $ | 145,274 | $ | 166,482 | ||||||||||||||||||||
Ownership (A) | 2.7 | % | 3.9 | % | 1 | % | 1 | % | 1.6 | % | 1.8 | % | ||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Revenues and gains (losses) | $ | 367,662 | $ | 975,979 | $ | 929,106 | $ | 1,296,556 | $ | 1,384,905 | ||||||||||||||||||||||
on investments | ||||||||||||||||||||||||||||||||
Expenses | (93,966 | ) | (182,961 | ) | (171,931 | ) | (233,363 | ) | (213,996 | ) | ||||||||||||||||||||||
Net Income (Loss) | $ | 420,916 | $ | 273,696 | $ | 793,018 | $ | 757,175 | $ | 1,063,193 | $ | 1,170,909 | ||||||||||||||||||||
Fortress’s equity in net | $ | 14,138 | $ | 14,050 | $ | 9,037 | $ | 8,791 | $ | 23,161 | $ | 16,532 | ||||||||||||||||||||
income (loss) | ||||||||||||||||||||||||||||||||
(A) | Excludes ownership interests held by other Fortress Funds, the Principals, employees and other affiliates. | |||||||||||||||||||||||||||||||
(B) | For Private Equity Funds, includes four entities which are recorded on a one quarter lag (i.e. current year balances reflected for these entities are for the period ended June 30, 2013). For Credit PE Funds, includes one entity which is recorded on a one quarter lag and several entities which are recorded on a one month lag. They are recorded on a lag because they are foreign entities, or they have substantial operations in foreign countries, and do not provide financial reports under U.S. GAAP within the reporting time frame necessary for U.S. public entities. | |||||||||||||||||||||||||||||||
(C) | In interim periods, the liquid hedge funds prepare summary financial information on a one quarter lag. For the nine months ended June 30, 2013, the liquid hedge funds recorded $754.2 million of revenues and gains (losses) on investments, $103.5 million of expenses, and $650.7 million of net income (loss). | |||||||||||||||||||||||||||||||
(D) | Includes certain entities in which Fortress has both a direct and an indirect investment. | |||||||||||||||||||||||||||||||
Schedule of variable interest entities formed during the reporting period | ' | |||||||||||||||||||||||||||||||
Entities formed during the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | ||||||||||||||||||||||||||||||||
Business Segment | Gross Assets | Financial Obligations | Fortress Investment (A) | Notes | ||||||||||||||||||||||||||||
Castles | $ | 2,929,633 | $ | 1,467,934 | $ | 60,471 | (B) | |||||||||||||||||||||||||
Credit PE Funds | 92,595 | 27,170 | 394 | (B) | ||||||||||||||||||||||||||||
Logan Circle | 240,106 | — | 126 | (B) | ||||||||||||||||||||||||||||
(A) | Represents Fortress’s maximum exposure to loss with respect to these entities, which includes direct and indirect investments in these funds, plus any receivables due from these funds. In addition to the table above, Fortress is exposed to potential changes in cash flow and revenues attributable to the management fees and/or incentive income Fortress earns from those entities. | |||||||||||||||||||||||||||||||
(B) | Fortress is not the primary beneficiary of this entity, because it does not absorb a majority of the entity's expected income or loss based on a quantitative analysis. | |||||||||||||||||||||||||||||||
Schedule of all variable interest entities | ' | |||||||||||||||||||||||||||||||
All variable interest entities: | ||||||||||||||||||||||||||||||||
Fortress is not Primary Beneficiary | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Business Segment | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Gross Assets | Financial Obligations (A) | Fortress Investment (B) | Notes | |||||||||||||||||||||||||
Private Equity Funds | $ | 970 | $ | — | $ | 270 | $ | 9,087 | $ | — | $ | 1,176 | (C) (D) | |||||||||||||||||||
Castles | 9,171,246 | 6,171,617 | 129,240 | 7,421,269 | 5,798,143 | 56,294 | (C) (D) | |||||||||||||||||||||||||
Liquid Hedge Funds | 3,221,910 | 868,456 | 4,089 | 4,905,876 | 2,271,914 | 27,817 | (C) (D) | |||||||||||||||||||||||||
Credit Hedge Funds | 1,909,917 | 386,868 | 3,270 | 1,771,900 | 365,135 | 46,193 | (C) (D) | |||||||||||||||||||||||||
Credit PE Funds | 1,149,350 | 374,211 | 4,839 | 1,536,067 | 418,208 | 4,483 | (C) (D) | |||||||||||||||||||||||||
Logan Circle | 240,106 | — | 126 | — | — | — | (C) (D) | |||||||||||||||||||||||||
(A) | Represents financial obligations at the fund level, which are not recourse to Fortress. Financial obligations include financial borrowings, derivative liabilities and short securities. In many cases, these funds have additional debt within unconsolidated subsidiaries. | |||||||||||||||||||||||||||||||
(B) | Represents Fortress’s maximum exposure to loss with respect to these entities, which includes direct and indirect investments in these funds, plus any receivables due from these funds. In addition to the table above, Fortress is exposed to potential changes in cash flow and revenues attributable to the management fee and/or incentive income Fortress earns from those entities. | |||||||||||||||||||||||||||||||
(C) | Fortress is not the primary beneficiary of the Castles, NIH and the Logan Circle Fund because it does not absorb a majority of their expected income or loss based on a quantitative analysis. Of the remaining entities represented herein, which primarily represent investing vehicles, intermediate entities and master funds, Fortress is not the primary beneficiary because the related funds, intermediate entities and feeder funds (which are not consolidated) are more closely associated with these entities than Fortress based on both a quantitative and qualitative analysis. The investing vehicles, intermediate entities and master funds were formed for the sole purpose of acting as investment vehicles for the related funds. | |||||||||||||||||||||||||||||||
(D) | Fortress’s investment includes management fees receivable, incentive income receivable, expense reimbursements and other receivables from these entities, as applicable. | |||||||||||||||||||||||||||||||
Schedule of information regarding the entity's financial instruments that are recorded at fair value | ' | |||||||||||||||||||||||||||||||
The following table presents information regarding Fortress’s financial instruments that are recorded at fair value. Investments denominated in foreign currencies have been translated at the period end exchange rate. Changes in fair value are recorded in Gains (Losses). | ||||||||||||||||||||||||||||||||
Fair Value | Valuation Method | |||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Assets (within Investments) | ||||||||||||||||||||||||||||||||
Newcastle, New Residential and Eurocastle common shares | $ | 15,300 | $ | 9,042 | Level 1 - Quoted prices in active markets for identical assets | |||||||||||||||||||||||||||
Common stock of publicly traded | 64,176 | 67,313 | Level 1 - Quoted prices in active markets for identical assets | |||||||||||||||||||||||||||||
private equity portfolio companies, | ||||||||||||||||||||||||||||||||
primarily GAGFAH | ||||||||||||||||||||||||||||||||
Total equity method investments | $ | 79,476 | $ | 76,355 | ||||||||||||||||||||||||||||
carried at fair value | ||||||||||||||||||||||||||||||||
Newcastle, New Residential and Eurocastle options | $ | 100,123 | $ | 38,077 | Level 2 - Option valuation models using significant observable inputs | |||||||||||||||||||||||||||
Assets (within Other Assets) | ||||||||||||||||||||||||||||||||
Derivatives | $ | 6,253 | $ | 1,101 | Level 2 - See below | |||||||||||||||||||||||||||
$ | 20,984 | $ | — | Level 1 - Quoted prices in active markets for identical assets | ||||||||||||||||||||||||||||
Equity Securities (A) | ||||||||||||||||||||||||||||||||
Liabilities (within Accrued | ||||||||||||||||||||||||||||||||
Compensation and Benefits) | ||||||||||||||||||||||||||||||||
Options in affiliates granted to | $ | (15,957 | ) | $ | (10,120 | ) | Level 2 - Option valuation models using significant observable inputs | |||||||||||||||||||||||||
employees | ||||||||||||||||||||||||||||||||
Liabilities (within Other Liabilities) | ||||||||||||||||||||||||||||||||
Derivatives | $ | (2,469 | ) | $ | — | Level 2 - See below | ||||||||||||||||||||||||||
(A) | In June 2013, Fortress made a direct investment in accounts managed by Logan Circle's growth equities business. The equity investments in these accounts are owned on Fortress's behalf and are held at fair value. As of September 30, 2013, Fortress's investment was comprised of approximately $21.0 million of equity securities, classified as trading. | |||||||||||||||||||||||||||||||
Schedule of the entity's derivatives (not designated as hedges) | ' | |||||||||||||||||||||||||||||||
Fortress’s derivatives (not designated as hedges) are recorded as follows: | ||||||||||||||||||||||||||||||||
Balance Sheet | Fair Value | Notional Amount | Gains/(Losses) (B) | Maturity | ||||||||||||||||||||||||||||
Location (A) | 30-Sep-13 | 30-Sep-13 | Nine Months Ended September 30, 2013 | Date | ||||||||||||||||||||||||||||
Foreign exchange option contracts | Other Assets | $ | 235 | € | 16,000 | $ | 159 | 14-Mar | ||||||||||||||||||||||||
Foreign exchange option contracts | Other Liabilities | $ | (1,361 | ) | € | 100,000 | $ | (1,434 | ) | 14-Mar | ||||||||||||||||||||||
Foreign exchange option contracts | Other Assets | $ | 6,018 | ¥ | 13,592,011 | $ | 4,937 | Dec-13 - Jun-16 | ||||||||||||||||||||||||
Foreign exchange option contracts | Other Liabilities | $ | (1,108 | ) | ¥ | 1,334,948 | $ | 118 | 13-Dec | |||||||||||||||||||||||
(A) | Fortress has a master netting agreement with its counterparty. | |||||||||||||||||||||||||||||||
(B) | Reflects unrealized gains (losses) related to contracts existing at period end. Total net foreign exchange gains (losses) from derivatives were $3.8 million during the nine months ended September 30, 2013. |
DEBT_OBLIGATIONS_Tables
DEBT OBLIGATIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of debt instruments | ' | |||||||||||||||
Face Amount and Carrying Value | Contractual | Final | 30-Sep-13 | |||||||||||||
September 30, | December 31, | Interest | Stated | Amount | ||||||||||||
Debt Obligation | 2013 | 2012 | Rate | Maturity | Available for Draws | |||||||||||
Revolving credit agreement (A)(B) | $ | — | $ | — | LIBOR + 2.50% (C) | Feb-16 | $ | 147,332 | ||||||||
Promissory note (D) | — | 149,453 | 5.00% | Feb-14 | N/A | |||||||||||
Total | $ | — | $ | 149,453 | ||||||||||||
(A) | Collateralized by substantially all of Fortress Operating Group’s assets as well as Fortress Operating Group’s rights to fees from the Fortress Funds and its equity interests therein, other than fees from Fortress's senior living property manager. | |||||||||||||||
(B) | The $150.0 million revolving debt facility includes a $15.0 million letter of credit subfacility of which $2.7 million was utilized. | |||||||||||||||
(C) | Subject to unused commitment fees of 0.4% per annum. | |||||||||||||||
(D) | Issued to a former Principal in exchange for his equity interests in Fortress. | |||||||||||||||
Schedule of the financial covenant requirements | ' | |||||||||||||||
The following table sets forth the financial covenant requirements as of September 30, 2013. | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
Requirement | Actual | Notes | ||||||||||||||
AUM, as defined | ≥ | $ | 25,000 | $ | 41,964 | (A) | ||||||||||
Consolidated Leverage Ratio | ≤ | 2 | — | (B) | ||||||||||||
Consolidated Interest Coverage Ratio | ≥ | 4 | 45.75 | (B) | ||||||||||||
(A) | Impacted by capital raised in funds, redemptions from funds, and valuations of fund investments. The AUM presented here is based on the definition in the credit agreement. | |||||||||||||||
(B) | Impacted by Consolidated EBITDA, as defined, which is generally impacted by the same factors as distributable earnings, except Consolidated EBITDA is not impacted by changes in clawback reserves or gains and losses, including impairment, on investments. |
INCOME_TAXES_AND_TAX_RELATED_P1
INCOME TAXES AND TAX RELATED PAYMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Schedule of components of provision for income taxes | ' | |||||||||||||||
The provision for income taxes consists of the following: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Current | ||||||||||||||||
Federal income tax expense (benefit) | $ | 3,150 | $ | 2,952 | $ | (16,366 | ) | $ | (2,634 | ) | ||||||
Foreign income tax expense (benefit) | 2,038 | 1,814 | 4,942 | 5,094 | ||||||||||||
State and local income tax expense (benefit) | 1,712 | (275 | ) | 612 | (316 | ) | ||||||||||
6,900 | 4,491 | (10,812 | ) | 2,144 | ||||||||||||
Deferred | ||||||||||||||||
Federal income tax expense (benefit) | 6,777 | (520 | ) | 45,327 | 28,028 | |||||||||||
Foreign income tax expense (benefit) | (62 | ) | (51 | ) | (22 | ) | 956 | |||||||||
State and local income tax expense (benefit) | 1,179 | (39 | ) | 7,743 | 3,123 | |||||||||||
7,894 | (610 | ) | 53,048 | 32,107 | ||||||||||||
Total expense (benefit) | $ | 14,794 | $ | 3,881 | $ | 42,236 | $ | 34,251 | ||||||||
Schedule of tax effects of temporary differences that have resulted in deferred income tax assets and liabilities | ' | |||||||||||||||
The tax effects of temporary differences have resulted in deferred income tax assets and liabilities as follows: | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Total deferred tax assets | $ | 432,511 | $ | 485,160 | ||||||||||||
Valuation allowance | (61,567 | ) | (83,025 | ) | ||||||||||||
Net deferred tax assets | $ | 370,944 | $ | 402,135 | ||||||||||||
Total deferred tax liabilities (A) | $ | 15,715 | $ | 5,815 | ||||||||||||
(A) | Included in Other Liabilities. The deferred tax liabilities primarily relate to timing differences in the recognition of income from compensatory options received from Newcastle (Note 3). | |||||||||||||||
Summary of the change in the deferred tax asset valuation allowance | ' | |||||||||||||||
The following table summarizes the change in the deferred tax asset valuation allowance: | ||||||||||||||||
Valuation Allowance at December 31, 2012 | $ | 83,025 | ||||||||||||||
Changes due to FIG Corp ownership increases | (1,389 | ) | ||||||||||||||
Net decreases (A) | (20,069 | ) | ||||||||||||||
Valuation Allowance at September 30, 2013 | $ | 61,567 | ||||||||||||||
(A) | Primarily related to a change in the portion of the deferred tax asset that would be realized in connection with future capital gains. |
RELATED_PARTY_TRANSACTIONS_AND1
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of components of due from affiliates | ' | |||||||||||||||||||||||||||
Due from affiliates was comprised of the following: | ||||||||||||||||||||||||||||
Private Equity | Credit | |||||||||||||||||||||||||||
Liquid Hedge | Hedge | |||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | PE Funds | Other | Total | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 55,629 | $ | 9,711 | $ | 2,430 | $ | 5,126 | $ | 17,445 | $ | 691 | $ | 91,032 | ||||||||||||||
Expense reimbursements (A) | 2,101 | 3,821 | 5,833 | 5,681 | 11,261 | 87 | 28,784 | |||||||||||||||||||||
Expense reimbursements - FCF (B) | 34,660 | — | — | — | — | — | 34,660 | |||||||||||||||||||||
Dividends and distributions | — | 285 | — | — | — | — | 285 | |||||||||||||||||||||
Other | 920 | — | — | — | 12 | 10,108 | 11,040 | |||||||||||||||||||||
Total | $ | 93,310 | $ | 13,817 | $ | 8,263 | $ | 10,807 | $ | 28,718 | $ | 10,886 | $ | 165,801 | ||||||||||||||
Private Equity | Credit | |||||||||||||||||||||||||||
Liquid Hedge | Hedge | |||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | PE Funds | Other | Total | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Management fees and incentive income (A) | $ | 31,909 | $ | 4,726 | $ | 40,929 | $ | 122,902 | $ | 26,937 | $ | — | $ | 227,403 | ||||||||||||||
Expense reimbursements (A) | 1,338 | 3,651 | 5,376 | 3,621 | 10,405 | — | 24,391 | |||||||||||||||||||||
Expense reimbursements - FCF (B) | 14,557 | — | — | — | — | — | 14,557 | |||||||||||||||||||||
Dividends and distributions | — | 228 | — | — | — | — | 228 | |||||||||||||||||||||
Other | 1,584 | 654 | — | — | 650 | 11,090 | 13,978 | |||||||||||||||||||||
Total | $ | 49,388 | $ | 9,259 | $ | 46,305 | $ | 126,523 | $ | 37,992 | $ | 11,090 | $ | 280,557 | ||||||||||||||
(A) | Net of allowances for uncollectible management fees and expense reimbursements of $12.2 million and $6.2 million at September 30, 2013, respectively, and of $12.2 million and $5.8 million as of December 31, 2012, respectively. Allowances are recorded as General and Administrative expenses. | |||||||||||||||||||||||||||
(B) | Represents expense reimbursements due to FCF, a consolidated VIE (Note 3). | |||||||||||||||||||||||||||
Schedule of components of due to affiliates | ' | |||||||||||||||||||||||||||
Due to affiliates was comprised of the following: | ||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Principals - tax receivable agreement - Note 5 | $ | 261,609 | $ | 253,787 | ||||||||||||||||||||||||
Principals - Principal Performance Payments - Note 7 | 30,398 | 25,573 | ||||||||||||||||||||||||||
Distributions payable on Fortress Operating Group units | 3,255 | 31,997 | ||||||||||||||||||||||||||
Other | 6,986 | 6,450 | ||||||||||||||||||||||||||
General partner liability - Note 9 | 41,247 | 39,600 | ||||||||||||||||||||||||||
$ | 343,495 | $ | 357,407 | |||||||||||||||||||||||||
Amounts related to equity interests, which are held by the Principals, employees, and others | ' | |||||||||||||||||||||||||||
This balance sheet caption was comprised of the following: | ||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and one senior employee | $ | 573,802 | $ | 530,739 | ||||||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 58,179 | 57,411 | ||||||||||||||||||||||||||
Other | 2,041 | 2,029 | ||||||||||||||||||||||||||
Total | $ | 634,022 | $ | 590,179 | ||||||||||||||||||||||||
Portion of interest of Fortress Operating Group | ' | |||||||||||||||||||||||||||
The Fortress Operating Group portion of these interests is computed as follows: | ||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Fortress Operating Group equity (Note 12) | $ | 1,184,908 | $ | 1,058,886 | ||||||||||||||||||||||||
Less: Others' interests in equity of consolidated subsidiaries (Note 12) | (60,220 | ) | (59,440 | ) | ||||||||||||||||||||||||
Total Fortress shareholders' equity in Fortress Operating Group | $ | 1,124,688 | $ | 999,446 | ||||||||||||||||||||||||
Fortress Operating Group units outstanding (A) | 249,534,372 | 249,534,372 | ||||||||||||||||||||||||||
Class A shares outstanding (C) | 239,568,798 | 220,369,026 | ||||||||||||||||||||||||||
Total | 489,103,170 | 469,903,398 | ||||||||||||||||||||||||||
Fortress Operating Group as a percent of total (B) | 51 | % | 53.1 | % | ||||||||||||||||||||||||
Equity of Fortress Operating Group units held by Principals and one senior employee | $ | 573,802 | $ | 530,739 | ||||||||||||||||||||||||
(A) | Held by the Principals and one senior employee; exclusive of Class A shares. | |||||||||||||||||||||||||||
(B) | As a result, the Registrant owned 49.0% and 46.9% of Fortress Operating Group as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||
(C) | As of December 31, 2012, this includes 2,082,684 treasury shares held by Fortress Operating Group. | |||||||||||||||||||||||||||
Statement of operations caption comprising of shares of consolidated net income (loss) | ' | |||||||||||||||||||||||||||
This statement of operations caption was comprised of shares of consolidated net income (loss) related to the following: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Fortress Operating Group units held by the Principals and one senior employee | $ | 57,221 | $ | 3,845 | $ | 104,653 | $ | 15,332 | ||||||||||||||||||||
Employee interests in majority owned and controlled fund advisor and general partner entities | 1,647 | 2,098 | 6,756 | 5,228 | ||||||||||||||||||||||||
Other | (64 | ) | 15 | 12 | 138 | |||||||||||||||||||||||
Total | $ | 58,804 | $ | 5,958 | $ | 111,421 | $ | 20,698 | ||||||||||||||||||||
Statement showing effects of changes in the entity's ownership interest in Fortress Operating Group on the entity's equity | ' | |||||||||||||||||||||||||||
The purpose of this schedule is to disclose the effects of changes in Fortress’s ownership interest in Fortress Operating Group on Fortress’s equity: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Net Income (loss) attributable to Fortress | $ | 42,381 | $ | 708 | $ | 54,634 | $ | (23,923 | ) | |||||||||||||||||||
Transfers (to) from the Principals' and Others' Interests: | ||||||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the conversion of Fortress Operating Group units by the Principals and one senior employee | — | 2,929 | 10,143 | 22,167 | ||||||||||||||||||||||||
Increase in Fortress’s shareholders’ equity for the delivery of Class A shares primarily in connection with vested RSUs and RPUs | 3,062 | 3,579 | 12,550 | 14,280 | ||||||||||||||||||||||||
Change from net income (loss) attributable to Fortress and transfers (to) from Principals’ and Others' Interests | $ | 45,443 | $ | 7,216 | $ | 77,327 | $ | 12,524 | ||||||||||||||||||||
EQUITYBASED_AND_OTHER_COMPENSA1
EQUITY-BASED AND OTHER COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of total compensation and benefits expense, excluding Principals Agreement Compensation, but including Principal Performance Payments | ' | |||||||||||||||||||||||||||
Fortress’s total compensation and benefits expense, including Principal Performance Payments, is comprised of the following: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Equity-based compensation, per below | $ | 8,671 | $ | 49,349 | $ | 28,648 | $ | 162,372 | ||||||||||||||||||||
Profit-sharing expense, per below | 29,540 | 37,018 | 194,091 | 97,249 | ||||||||||||||||||||||||
Discretionary bonuses | 52,033 | 46,410 | 155,121 | 140,846 | ||||||||||||||||||||||||
Other payroll, taxes and benefits | 56,213 | 48,644 | 161,731 | 136,800 | ||||||||||||||||||||||||
$ | 146,457 | $ | 181,421 | $ | 539,591 | $ | 537,267 | |||||||||||||||||||||
Schedule of equity-based compensation activities | ' | |||||||||||||||||||||||||||
The following tables set forth information regarding equity-based compensation activities. | ||||||||||||||||||||||||||||
RSUs | Restricted Shares | RPUs | ||||||||||||||||||||||||||
Employees | Non-Employees | Issued to Directors | Employees | |||||||||||||||||||||||||
Number | Value (A) | Number | Value (A) | Number | Value (A) | Number | Value (A) | |||||||||||||||||||||
Outstanding at December 31, 2012 | 21,754,544 | $ | 8.28 | 1,246,406 | $ | 5.51 | 828,211 | $ | 5.29 | 10,333,334 | $ | 13.75 | ||||||||||||||||
Issued | 8,805,841 | 5.06 | — | — | 127,533 | 6.21 | — | — | ||||||||||||||||||||
Transfers | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Converted to Class A shares | (9,589,683 | ) | 14.44 | (1,231,906 | ) | 5.53 | — | — | (10,333,334 | ) | 13.75 | |||||||||||||||||
Forfeited | (713,969 | ) | 3.72 | — | — | — | — | — | — | |||||||||||||||||||
Outstanding at September 30, 2013 (B) | 20,256,733 | $ | 4.12 | 14,500 | $ | 3.12 | 955,744 | $ | 5.41 | — | $ | — | ||||||||||||||||
Schedule of total equity-based compensation activities | ' | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Expense incurred (B) | ||||||||||||||||||||||||||||
Employee RSUs | $ | 5,069 | $ | 24,839 | $ | 18,357 | $ | 91,446 | ||||||||||||||||||||
Non-Employee RSUs | — | 228 | 1 | 609 | ||||||||||||||||||||||||
Principal Performance Payments (C) | 3,602 | 1,469 | 10,290 | 2,351 | ||||||||||||||||||||||||
Restricted Shares (D) | — | — | — | 24 | ||||||||||||||||||||||||
RPUs | — | 22,813 | — | 67,942 | ||||||||||||||||||||||||
Total equity-based compensation expense | $ | 8,671 | $ | 49,349 | $ | 28,648 | $ | 162,372 | ||||||||||||||||||||
(A) | Represents the weighted average grant date estimated fair value per share or unit. | |||||||||||||||||||||||||||
(B) | In future periods, Fortress will further recognize compensation expense on its non-vested equity based awards outstanding as of September 30, 2013 of $48.5 million, with a weighted average recognition period of 2.3 years. This does not include contingent amounts. | |||||||||||||||||||||||||||
(C) | Accrued based on year-to-date performance; the actual number of RSUs granted are determined at year end. Based on year-to-date performance, a total of approximately 2.5 million RSUs would be awarded as Principal Performance Payments. | |||||||||||||||||||||||||||
(D) | Certain restricted shares granted to directors are recorded in General and Administrative Expense ($0.6 million and $0.5 million for the nine months ended September 30, 2013 and 2012, respectively) and therefore are not included above. | |||||||||||||||||||||||||||
Schedule of the expense accrual for the Principal Performance Payments by segment | ' | |||||||||||||||||||||||||||
The expense for Principal Performance Payments was comprised of the following: | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Equity-Based | Profit Sharing | Total | ||||||||||||||||||||||||||
Compensation | Expense | |||||||||||||||||||||||||||
Private equity business | $ | — | $ | 889 | $ | 889 | ||||||||||||||||||||||
Liquid hedge fund business | 3,047 | 8,654 | 11,701 | |||||||||||||||||||||||||
Credit business | 7,243 | 14,554 | 21,797 | |||||||||||||||||||||||||
Total | $ | 10,290 | $ | 24,097 | $ | 34,387 | ||||||||||||||||||||||
Schedule of recognized profit sharing compensation expense | ' | |||||||||||||||||||||||||||
Recognized profit sharing compensation expense is summarized as follows: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Private equity funds | $ | — | $ | 262 | $ | 2,135 | $ | 672 | ||||||||||||||||||||
Castles | (459 | ) | 1 | 7,757 | 3,378 | |||||||||||||||||||||||
Liquid hedge funds | (3,578 | ) | 4,544 | 35,458 | 11,431 | |||||||||||||||||||||||
Credit hedge funds | 20,371 | 19,710 | 71,074 | 46,488 | ||||||||||||||||||||||||
Credit PE funds | 9,480 | 8,347 | 53,570 | 24,212 | ||||||||||||||||||||||||
Principal Performance Payments (A) | 3,726 | 4,154 | 24,097 | 11,068 | ||||||||||||||||||||||||
Total | $ | 29,540 | $ | 37,018 | $ | 194,091 | $ | 97,249 | ||||||||||||||||||||
(A) | Relates to all applicable segments. Accrued based on year-to-date performance; the actual payments due to each Principal are determined at year end. | |||||||||||||||||||||||||||
Upon the resignation of one of Newcastle's officers, 2,170 vested out-of-the-money and 192,167 unvested Newcastle options, and 2,170 vested out-of-the-money and 192,167 unvested New Residential options were forfeited. |
EARNINGS_PER_SHARE_AND_DISTRIB1
EARNINGS PER SHARE AND DISTRIBUTIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of computations of basic and diluted net income (loss) per Class A share | ' | |||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 237,470,346 | 237,470,346 | 231,019,933 | 231,019,933 | ||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 982,225 | 982,225 | 2,821,011 | 2,821,011 | ||||||||||||
Fully vested restricted Class A shares | 952,016 | 952,016 | 909,641 | 909,641 | ||||||||||||
Fortress Operating Group units and fully vested RPUs exchangeable into | — | 249,534,372 | — | 252,789,561 | ||||||||||||
Class A shares (1) | ||||||||||||||||
Class A restricted shares and Class A restricted share units granted to employees and directors (eligible for dividend and dividend equivalent payments) (2) | — | 2,771,059 | — | 2,067,969 | ||||||||||||
Class A restricted share units granted to employees (not eligible for | — | 10,381,148 | — | 9,954,355 | ||||||||||||
dividend and dividend equivalent payments) (3) | ||||||||||||||||
Total weighted average shares outstanding | 239,404,587 | 502,091,166 | 234,750,585 | 499,562,470 | ||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 42,381 | $ | 42,381 | $ | 54,634 | $ | 54,634 | ||||||||
Dilution in earnings due to RPUs treated as a participating security of | — | — | — | — | ||||||||||||
Fortress Operating Group and fully vested restricted Class A share | ||||||||||||||||
units with dividend equivalent rights treated as outstanding Fortress | ||||||||||||||||
Operating Group units (4) | ||||||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated to, | (777 | ) | (777 | ) | (590 | ) | (590 | ) | ||||||||
non-vested restricted Class A shares and restricted Class A share units (2) | ||||||||||||||||
Add back Principals' and others' interests in income of Fortress Operating | — | 18,906 | — | 52,551 | ||||||||||||
Group, net of assumed income taxes at enacted rates, attributable to | ||||||||||||||||
Fortress Operating Group units and fully vested RPUs exchangeable | ||||||||||||||||
into Class A shares (1) | ||||||||||||||||
Net income (loss) available to Class A shareholders | $ | 41,604 | $ | 60,510 | $ | 54,044 | $ | 106,595 | ||||||||
Weighted average shares outstanding | 239,404,587 | 502,091,166 | 234,750,585 | 499,562,470 | ||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0.17 | $ | 0.12 | $ | 0.23 | $ | 0.21 | ||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Class A shares outstanding | 217,293,696 | 217,293,696 | 207,521,553 | 207,521,553 | ||||||||||||
Fully vested restricted Class A share units with dividend equivalent rights | 2,519,869 | 2,519,869 | 4,068,945 | 4,068,945 | ||||||||||||
Fully vested restricted Class A shares | 828,211 | 828,211 | 706,787 | 706,787 | ||||||||||||
Fortress Operating Group units and fully vested RPUs exchangeable into | — | 299,397,765 | — | 305,134,049 | ||||||||||||
Class A shares (1) | ||||||||||||||||
Class A restricted shares and Class A restricted share units granted to | — | — | — | — | ||||||||||||
employees and directors (eligible for dividend and dividend | ||||||||||||||||
equivalent payments) (2) | ||||||||||||||||
Class A restricted share units granted to employees (not eligible for | — | — | — | — | ||||||||||||
dividend and dividend equivalent payments) (3) | ||||||||||||||||
Total weighted average shares outstanding | 220,641,776 | 520,039,541 | 212,297,285 | 517,431,334 | ||||||||||||
Basic and diluted net income (loss) per Class A share | ||||||||||||||||
Net income (loss) attributable to Class A shareholders | $ | 708 | $ | 708 | $ | (23,923 | ) | $ | (23,923 | ) | ||||||
Dilution in earnings due to RPUs treated as a participating security of | (116 | ) | (116 | ) | (327 | ) | (327 | ) | ||||||||
Fortress Operating Group and fully vested restricted Class A share | ||||||||||||||||
units with dividend equivalent rights treated as outstanding Fortress | ||||||||||||||||
Operating Group units (4) | ||||||||||||||||
Dividend equivalents declared on, and undistributed earnings allocated | (108 | ) | (108 | ) | (327 | ) | (327 | ) | ||||||||
to, non-vested restricted Class A shares and restricted Class A share | ||||||||||||||||
units (2) | ||||||||||||||||
Add back Principals' and others' interests in income of Fortress | — | (22,295 | ) | — | (42,943 | ) | ||||||||||
Operating Group, net of assumed income taxes at enacted rates, | ||||||||||||||||
attributable to Fortress Operating Group units and fully vested RPUs | ||||||||||||||||
exchangeable into Class A shares (1) | ||||||||||||||||
Net income (loss) available to Class A shareholders | $ | 484 | $ | (21,811 | ) | $ | (24,577 | ) | $ | (67,520 | ) | |||||
Weighted average shares outstanding | 220,641,776 | 520,039,541 | 212,297,285 | 517,431,334 | ||||||||||||
Basic and diluted net income (loss) per Class A share | $ | 0 | $ | (0.04 | ) | $ | (0.12 | ) | $ | (0.13 | ) | |||||
-1 | The Fortress Operating Group units and fully vested RPUs not held by Fortress (that is, those held by the Principals and one senior employee) are exchangeable into Class A shares on a one-to-one basis (fully vested RPUs would first have to be exchanged for Fortress Operating Group units and Class B shares). These units and fully vested RPUs are not included in the computation of basic earnings per share. These units and fully vested RPUs enter into the computation of diluted net income (loss) per Class A share when the effect is dilutive using the if-converted method, which includes the income tax effects of nondiscretionary adjustments to the net income (loss) attributable to Class A shareholders from assumed conversion of these units and fully vested RPUs. To the extent charges, particularly tax related charges, are incurred by the Registrant (i.e. not at the Fortress Operating Group level), the effect may be anti-dilutive. | |||||||||||||||
-2 | Restricted Class A shares granted to directors and certain restricted Class A share units granted to employees are eligible to receive dividend or dividend equivalent payments when dividends are declared and paid on Fortress’s Class A shares and therefore participate fully in the results of Fortress’s operations from the date they are granted. They are included in the computation of both basic and diluted earnings per Class A share using the two-class method for participating securities, except during periods of net losses. | |||||||||||||||
-3 | Certain restricted Class A share units granted to employees are not entitled to dividend or dividend equivalent payments until they are vested and are therefore non-participating securities. These units are not included in the computation of basic earnings per share. They are included in the computation of diluted earnings per share when the effect is dilutive using the treasury stock method. The effect of the units on the calculation is generally anti-dilutive during periods of net losses. The weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding were: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Share Units | 14,766,136 | 16,426,317 | 15,761,068 | 19,212,189 | ||||||||||||
(4) | Fortress Operating Group RPUs are eligible to receive partnership distribution equivalent payments when distributions are declared and paid on Fortress Operating Group units. The RPUs represent a participating security of Fortress Operating Group and the resulting dilution in Fortress Operating Group earnings available to Fortress is reflected in the computation of both basic and diluted earnings per Class A share using the method prescribed for securities issued by a subsidiary. For purposes of the computation of basic and diluted earnings per Class A share, the fully vested restricted Class A share units with dividend equivalent rights are treated as outstanding Class A shares of Fortress and as outstanding partnership units of Fortress Operating Group. | |||||||||||||||
Schedule of weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding | ' | |||||||||||||||
The weighted average restricted Class A share units which are not entitled to receive dividend or dividend equivalent payments outstanding were: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Share Units | 14,766,136 | 16,426,317 | 15,761,068 | 19,212,189 | ||||||||||||
Schedule of Fortress's dividend paying shares and units | ' | |||||||||||||||
Fortress’s dividend paying shares and units were as follows: | ||||||||||||||||
Weighted Average | Weighted Average | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Class A shares (public shareholders) | 237,470,346 | 217,293,696 | 231,019,933 | 207,521,553 | ||||||||||||
Restricted Class A shares (directors) | 952,016 | 828,211 | 909,641 | 722,413 | ||||||||||||
Restricted Class A share units (employees) (A) | 982,225 | 2,519,869 | 2,821,011 | 4,068,945 | ||||||||||||
Restricted Class A share units (employees) (B) | 5,744,629 | 6,434,147 | 4,759,829 | 6,667,917 | ||||||||||||
Fortress Operating Group units (Principals and one senior employee) | 249,534,372 | 299,397,765 | 249,534,372 | 301,815,314 | ||||||||||||
Fortress Operating Group RPUs (one senior employee) | — | 10,333,334 | 3,255,189 | 13,652,069 | ||||||||||||
Total | 494,683,588 | 536,807,022 | 492,299,975 | 534,448,211 | ||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Class A shares (public shareholders) | 238,613,054 | 217,458,131 | ||||||||||||||
Restricted Class A shares (directors) | 955,744 | 828,211 | ||||||||||||||
Restricted Class A share units (employees) (A) | 21,851 | 555,646 | ||||||||||||||
Restricted Class A share units (employees) (B) | 5,744,629 | 6,434,147 | ||||||||||||||
Fortress Operating Group units (Principals and one senior employee) | 249,534,372 | 249,534,372 | ||||||||||||||
Fortress Operating Group RPUs (one senior employee) | — | 10,333,334 | ||||||||||||||
Total | 494,869,650 | 485,143,841 | ||||||||||||||
(A) | Represents fully vested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
(B) | Represents unvested restricted Class A share units which are entitled to dividend equivalent payments. | |||||||||||||||
Schedule of Fortress's dividends and distributions | ' | |||||||||||||||
Dividends and distributions during the nine months ended September 30, 2013 are summarized as follows: | ||||||||||||||||
Declared in Current Year | ||||||||||||||||
Declared in Prior Year, Paid in Current Year | Declared and Paid | Declared but not yet Paid | Total | |||||||||||||
Dividends on Class A Shares | $ | — | $ | 41,830 | $ | — | $ | 41,830 | ||||||||
Dividend equivalents on restricted Class A share | ||||||||||||||||
units (A) | — | 1,338 | — | 1,338 | ||||||||||||
Distributions to Fortress Operating Group unit holders | ||||||||||||||||
(Principals and one senior employee) (B) | 30,725 | 51,656 | 3,255 | 54,911 | ||||||||||||
Distributions to Fortress Operating Group RPU holders | ||||||||||||||||
(Note 7) (B) | 1,272 | 401 | — | 401 | ||||||||||||
Total distributions | $ | 31,997 | $ | 95,225 | $ | 3,255 | $ | 98,480 | ||||||||
(A) | A portion of these dividend equivalents, if any, related to RSUs expected to be forfeited, is included as compensation expense in the consolidated statement of operations and is therefore considered an operating cash flow. | |||||||||||||||
(B) | Fortress Operating Group made tax-related distributions to the FOG unit holders (the Principals and one senior employee) and the RPU holder (one senior employee). |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of minimum future rental payments (excluding expense escalations) under operating leases | ' | |||
Minimum future rental payments (excluding expense escalations) under these leases are as follows: | ||||
October 1 to December 31, 2013 | $ | 6,342 | ||
2014 | 24,068 | |||
2015 | 21,472 | |||
2016 | 19,919 | |||
2017 | 2,761 | |||
2018 | 402 | |||
Thereafter | 38 | |||
Total | $ | 75,002 | ||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Clawback Reserve on Incentive Income for DE Purposes | ' | |||||||||||||||||||||||||||||||||||
Fortress had recognized incentive income for DE purposes from certain private equity funds and credit PE funds, which are subject to contingent clawback, as of September 30, 2013: | ||||||||||||||||||||||||||||||||||||
Fund (A) | Net Intrinsic Clawback (B) | Periods in Intrinsic Clawback | Prior Year End Inception-to-Date Net DE Reserve | Current | Current | Inception-to-Date Net DE Reserve | Notes | |||||||||||||||||||||||||||||
Year-to-Date Gross DE Reserve | Year-to-Date Net DE Reserve | |||||||||||||||||||||||||||||||||||
Fund II | 1,594 | 20 Quarters | $ | 6,070 | $ | (3,367 | ) | $ | (2,155 | ) | $ | 3,915 | (C) | |||||||||||||||||||||||
Fund III | 45,108 | 23 Quarters | 45,108 | — | — | 45,108 | (D) | |||||||||||||||||||||||||||||
FRID | 10,041 | 25 Quarters | 10,041 | — | — | 10,041 | (D) | |||||||||||||||||||||||||||||
Total | $ | 56,743 | $ | 61,219 | $ | (3,367 | ) | $ | (2,155 | ) | $ | 59,064 | ||||||||||||||||||||||||
(A) | Fortress has recognized incentive income for DE purposes from the following funds, which do not have intrinsic clawback and for which the CODM has determined no clawback reserve is necessary: Fund I, Credit Opportunities Fund, Credit Opportunities Fund II, Credit Opportunities Fund III, certain FCO Managed Accounts, Real Estate Opportunities Fund, Net Lease Fund I and Japan Opportunity Fund. | |||||||||||||||||||||||||||||||||||
(B) | See Note 2. | |||||||||||||||||||||||||||||||||||
(C) | The previously recorded reserves with respect to this fund exceeded its net intrinsic clawback by approximately $3.3 million immediately prior to September 30, 2013. Based on the criteria determined by the CODM, management determined that a net reversal of $1.0 million of clawback reserve was appropriate for the three months ended September 30, 2013. In the aggregate, $2.2 million of net reserve has been reversed in 2013. | |||||||||||||||||||||||||||||||||||
(D) | The potential clawback on these funds has been fully reserved in prior periods. | |||||||||||||||||||||||||||||||||||
Summary of financial data on Fortress's segments | ' | |||||||||||||||||||||||||||||||||||
September 30, 2013 and the Nine Months Then Ended | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 101,126 | $ | 44,436 | $ | 79,380 | $ | 75,435 | $ | 71,218 | $ | 25,859 | $ | — | $ | — | $ | 397,454 | ||||||||||||||||||
Incentive income | 9,181 | 7,299 | 97,324 | 140,840 | 102,148 | — | — | — | 356,792 | |||||||||||||||||||||||||||
Segment revenues - total | $ | 110,307 | $ | 51,735 | $ | 176,704 | $ | 216,275 | $ | 173,366 | $ | 25,859 | $ | — | $ | — | $ | 754,246 | ||||||||||||||||||
Fund management distributable | $ | 71,352 | $ | 22,332 | $ | 86,543 | $ | 100,678 | $ | 44,861 | $ | (7,605 | ) | $ | — | $ | — | $ | 318,161 | |||||||||||||||||
earnings (loss) before Principal | ||||||||||||||||||||||||||||||||||||
Performance Payments (B) | ||||||||||||||||||||||||||||||||||||
Fund management distributable | $ | 71,352 | $ | 21,443 | $ | 77,890 | $ | 86,845 | $ | 44,139 | $ | (7,605 | ) | $ | — | $ | — | $ | 294,064 | |||||||||||||||||
earnings (loss) | ||||||||||||||||||||||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 71,352 | $ | 21,443 | $ | 77,890 | $ | 86,845 | $ | 44,139 | $ | (7,605 | ) | $ | 19,108 | $ | — | $ | 313,172 | |||||||||||||||||
Total segment assets | $ | 93,732 | $ | 13,703 | $ | 90,022 | $ | 120,846 | $ | 30,634 | $ | 32,866 | $ | 1,707,074 | $ | 480,435 | $ | 2,569,312 | ||||||||||||||||||
(A) | ||||||||||||||||||||||||||||||||||||
(A) | Unallocated assets include deferred tax assets of $370.9 million. | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 34,405 | $ | 13,620 | $ | 30,634 | $ | 25,481 | $ | 23,669 | $ | 8,833 | $ | — | $ | — | $ | 136,642 | ||||||||||||||||||
Incentive income | 1,544 | 6,099 | (27,387 | ) | 44,194 | 17,789 | — | — | — | 42,239 | ||||||||||||||||||||||||||
Segment revenues - total | $ | 35,949 | $ | 19,719 | $ | 3,247 | $ | 69,675 | $ | 41,458 | $ | 8,833 | $ | — | $ | — | $ | 178,881 | ||||||||||||||||||
Fund management distributable earnings (loss) before Principal Performance Payments (B) | $ | 24,412 | $ | 7,679 | $ | (11,923 | ) | $ | 32,844 | $ | 7,442 | $ | (3,320 | ) | $ | — | $ | — | $ | 57,134 | ||||||||||||||||
Fund management distributable earnings (loss) | $ | 24,412 | $ | 6,790 | $ | (10,730 | ) | $ | 28,940 | $ | 7,318 | $ | (3,320 | ) | $ | — | $ | — | $ | 53,410 | ||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 24,412 | $ | 6,790 | $ | (10,730 | ) | $ | 28,940 | $ | 7,318 | $ | (3,320 | ) | $ | 11,628 | $ | — | $ | 65,038 | ||||||||||||||||
(B) | See Note 7. Fund management distributable earnings (loss) is only reduced for the profit sharing component of the Principal Performance Payments. | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 89,410 | $ | 41,615 | $ | 57,537 | $ | 76,319 | $ | 63,992 | $ | 18,675 | $ | — | $ | — | $ | 347,548 | ||||||||||||||||||
Incentive income | 8,252 | — | 21,394 | 92,183 | 42,415 | — | — | — | 164,244 | |||||||||||||||||||||||||||
Segment revenues - total | $ | 97,662 | $ | 41,615 | $ | 78,931 | $ | 168,502 | $ | 106,407 | $ | 18,675 | $ | — | $ | — | $ | 511,792 | ||||||||||||||||||
Fund management distributable earnings (loss) before Principal Performance Payments (B) | $ | 65,082 | $ | 19,650 | $ | 16,067 | $ | 76,277 | $ | 13,149 | $ | (6,831 | ) | $ | — | $ | 131 | $ | 183,525 | |||||||||||||||||
Fund management distributable earnings (loss) | $ | 65,082 | $ | 19,104 | $ | 14,488 | $ | 67,363 | $ | 13,121 | $ | (6,831 | ) | $ | — | $ | 131 | $ | 172,458 | |||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 65,082 | $ | 19,104 | $ | 14,488 | $ | 67,363 | $ | 13,121 | $ | (6,831 | ) | $ | (1,718 | ) | $ | 131 | $ | 170,740 | ||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | Principal | Fortress | ||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Investments | Unallocated | Subtotal | ||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||
Management fees | $ | 30,004 | $ | 13,979 | $ | 18,176 | $ | 24,747 | $ | 21,438 | $ | 6,802 | $ | — | $ | — | $ | 115,146 | ||||||||||||||||||
Incentive income | 708 | — | 11,664 | 35,839 | 16,985 | — | — | — | 65,196 | |||||||||||||||||||||||||||
Segment revenues - total | $ | 30,712 | $ | 13,979 | $ | 29,840 | $ | 60,586 | $ | 38,423 | $ | 6,802 | $ | — | $ | — | $ | 180,342 | ||||||||||||||||||
Fund management distributable earnings (loss) before Principal Performance Payments (B) | $ | 22,073 | $ | 6,450 | $ | 8,177 | $ | 26,791 | $ | 6,052 | $ | (2,295 | ) | $ | — | $ | — | $ | 67,248 | |||||||||||||||||
Fund management distributable earnings (loss) | $ | 22,073 | $ | 6,369 | $ | 7,388 | $ | 23,526 | $ | 6,033 | $ | (2,295 | ) | $ | — | $ | — | $ | 63,094 | |||||||||||||||||
Pre-tax distributable earnings (loss) | $ | 22,073 | $ | 6,369 | $ | 7,388 | $ | 23,526 | $ | 6,033 | $ | (2,295 | ) | $ | 363 | $ | — | $ | 63,457 | |||||||||||||||||
Schedule of reconciliation of net income (loss) | ' | |||||||||||||||||||||||||||||||||||
Reconciling items between segment measures and GAAP measures: | ||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||||||||
Fund management distributable earnings | $ | 53,410 | $ | 63,094 | $ | 294,064 | $ | 172,458 | ||||||||||||||||||||||||||||
Investment income (loss) | 12,412 | 3,658 | 23,870 | 9,926 | ||||||||||||||||||||||||||||||||
Interest expense | (784 | ) | (3,295 | ) | (4,762 | ) | (11,644 | ) | ||||||||||||||||||||||||||||
Pre-tax distributable earnings | 65,038 | 63,457 | 313,172 | 170,740 | ||||||||||||||||||||||||||||||||
Adjust incentive income | ||||||||||||||||||||||||||||||||||||
Incentive income received from private equity funds and | (17,790 | ) | (16,986 | ) | (103,109 | ) | $ | (42,416 | ) | |||||||||||||||||||||||||||
credit PE funds, subject to contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income received from third parties, subject to | — | (273 | ) | — | (1,674 | ) | ||||||||||||||||||||||||||||||
contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income accrued from private equity funds and | 15,883 | 5,547 | 50,262 | 36,931 | ||||||||||||||||||||||||||||||||
credit PE funds, not subject to contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income received from private equity funds and | — | (708 | ) | (4,854 | ) | (1,815 | ) | |||||||||||||||||||||||||||||
credit PE funds, not subject to contingent repayment | ||||||||||||||||||||||||||||||||||||
Incentive income from hedge funds, subject to annual performance achievement | 5,973 | (46,012 | ) | (185,858 | ) | (107,956 | ) | |||||||||||||||||||||||||||||
Incentive income received from the sale of shares related to options | (1,921 | ) | — | (1,921 | ) | — | ||||||||||||||||||||||||||||||
Reserve for clawback, gross (see discussion above) | (1,544 | ) | — | (3,367 | ) | (6,436 | ) | |||||||||||||||||||||||||||||
601 | (58,432 | ) | (248,847 | ) | (123,366 | ) | ||||||||||||||||||||||||||||||
Adjust other income | ||||||||||||||||||||||||||||||||||||
Distributions of earnings from equity method investees** | (3,685 | ) | (1,494 | ) | (12,529 | ) | (3,501 | ) | ||||||||||||||||||||||||||||
Earnings (losses) from equity method investees** | 57,532 | 47,706 | 116,748 | 99,649 | ||||||||||||||||||||||||||||||||
Gains (losses) on options in equity method investees | 3,488 | (6,219 | ) | 27,233 | (1,962 | ) | ||||||||||||||||||||||||||||||
Gains (losses) on other investments | (3,178 | ) | 3,996 | 9,358 | 31,060 | |||||||||||||||||||||||||||||||
Impairment of investments (see discussion above) | 380 | 720 | 1,107 | 875 | ||||||||||||||||||||||||||||||||
Adjust income from the receipt of options | — | 8,298 | 36,470 | 21,524 | ||||||||||||||||||||||||||||||||
54,537 | 53,007 | 178,387 | 147,645 | |||||||||||||||||||||||||||||||||
Adjust employee, Principal and director compensation | ||||||||||||||||||||||||||||||||||||
Adjust employee, Principal and director equity-based compensation expense (including Castle options assigned) | (6,415 | ) | (49,495 | ) | (34,769 | ) | (164,420 | ) | ||||||||||||||||||||||||||||
Adjust employee portion of incentive income from private equity funds, accrued prior to the realization of incentive income | 555 | — | 1,210 | 2,316 | ||||||||||||||||||||||||||||||||
(5,860 | ) | (49,495 | ) | (33,559 | ) | (162,104 | ) | |||||||||||||||||||||||||||||
Adjust amortization of intangible assets and impairment of goodwill and intangible assets | (12 | ) | (10 | ) | (34 | ) | (34 | ) | ||||||||||||||||||||||||||||
Adjust non-controlling interests related to Fortress Operating Group units | (57,221 | ) | (3,845 | ) | (104,653 | ) | (15,332 | ) | ||||||||||||||||||||||||||||
Adjust tax receivable agreement liability | — | — | (7,739 | ) | (6,935 | ) | ||||||||||||||||||||||||||||||
Adjust income taxes | (14,702 | ) | (3,974 | ) | (42,093 | ) | (34,537 | ) | ||||||||||||||||||||||||||||
Total adjustments | (22,657 | ) | (62,749 | ) | (258,538 | ) | (194,663 | ) | ||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Class A Shareholders | 42,381 | 708 | 54,634 | (23,923 | ) | |||||||||||||||||||||||||||||||
Principals’ and Others’ Interests in Income (Loss) of Consolidated Subsidiaries | 58,804 | 5,958 | 111,421 | 20,698 | ||||||||||||||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 101,185 | $ | 6,666 | $ | 166,055 | $ | (3,225 | ) | |||||||||||||||||||||||||||
** This adjustment relates to all of the private equity and credit PE Fortress Funds and hedge fund special investment accounts in which Fortress has an investment. | ||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of assets | ' | |||||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||||||
Total segment assets | $ | 2,569,312 | ||||||||||||||||||||||||||||||||||
Adjust equity investments from segment carrying amount | (42,059 | ) | ||||||||||||||||||||||||||||||||||
Adjust investments gross of employees’ and others’ portion | 38,982 | |||||||||||||||||||||||||||||||||||
Adjust goodwill and intangible assets to cost | (22,744 | ) | ||||||||||||||||||||||||||||||||||
Accrued incentive income subject to annual performance achievement | (185,858 | ) | ||||||||||||||||||||||||||||||||||
Total assets (GAAP) | $ | 2,357,633 | ||||||||||||||||||||||||||||||||||
Schedule of reconciliation of revenues | ' | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Segment revenues | $ | 178,881 | $ | 180,342 | $ | 754,246 | $ | 511,792 | ||||||||||||||||||||||||||||
Adjust management fees | 313 | 124 | 565 | 397 | ||||||||||||||||||||||||||||||||
Adjust incentive income | 601 | (58,432 | ) | (248,847 | ) | (123,686 | ) | |||||||||||||||||||||||||||||
Adjust income from the receipt of options | — | 8,298 | 36,470 | 21,524 | ||||||||||||||||||||||||||||||||
Adjust other revenues (including expense reimbursements)* | 52,224 | 51,191 | 157,014 | 142,202 | ||||||||||||||||||||||||||||||||
Total revenues (GAAP) | $ | 232,019 | $ | 181,523 | $ | 699,448 | $ | 552,229 | ||||||||||||||||||||||||||||
* Segment revenues do not include GAAP other revenues, except to the extent they represent management fees or incentive income; such revenues are included elsewhere in the calculation of distributable earnings. | ||||||||||||||||||||||||||||||||||||
Schedule of Fortress's depreciation and amortization expense by segment | ' | |||||||||||||||||||||||||||||||||||
Liquid | Credit | |||||||||||||||||||||||||||||||||||
Private Equity | Hedge | Hedge | PE | Logan | ||||||||||||||||||||||||||||||||
Funds | Castles | Funds | Funds | Funds | Circle | Unallocated | Total | |||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 393 | $ | 159 | $ | 582 | $ | 1,416 | $ | 89 | $ | 68 | $ | 782 | $ | 3,489 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 12 | — | 12 | ||||||||||||||||||||||||||||
Total | $ | 393 | $ | 159 | $ | 582 | $ | 1,416 | $ | 89 | $ | 80 | $ | 782 | $ | 3,501 | ||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 717 | $ | 148 | $ | 752 | $ | 2,010 | $ | 108 | $ | 67 | $ | 1,170 | $ | 4,972 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 10 | — | 10 | ||||||||||||||||||||||||||||
Total | $ | 717 | $ | 148 | $ | 752 | $ | 2,010 | $ | 108 | $ | 77 | $ | 1,170 | $ | 4,982 | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 1,132 | $ | 432 | $ | 1,561 | $ | 4,173 | $ | 238 | $ | 192 | $ | 2,332 | $ | 10,060 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 34 | — | 34 | ||||||||||||||||||||||||||||
Total | $ | 1,132 | $ | 432 | $ | 1,561 | $ | 4,173 | $ | 238 | $ | 226 | $ | 2,332 | $ | 10,094 | ||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Depreciation | $ | 1,546 | $ | 358 | $ | 1,760 | $ | 4,605 | $ | 309 | $ | 268 | $ | 2,838 | $ | 11,684 | ||||||||||||||||||||
Amortization | — | — | — | — | — | 34 | — | 34 | ||||||||||||||||||||||||||||
Total | $ | 1,546 | $ | 358 | $ | 1,760 | $ | 4,605 | $ | 309 | $ | 302 | $ | 2,838 | $ | 11,718 | ||||||||||||||||||||
CONSOLIDATING_FINANCIAL_INFORM1
CONSOLIDATING FINANCIAL INFORMATION (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Consolidating Financial Information | ' | |||||||||||||||||||||||
Schedule of consolidating balance sheet information | ' | |||||||||||||||||||||||
The consolidating balance sheet information is as follows: | ||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 292,676 | $ | 1,411 | $ | — | $ | 17,027 | $ | — | $ | 311,114 | ||||||||||||
Due from affiliates | 164,285 | 1,723 | (207 | ) | 3,125 | (3,125 | ) | 165,801 | ||||||||||||||||
Investments | 1,263,392 | 175 | (175 | ) | 550,886 | (550,886 | ) | 1,263,392 | ||||||||||||||||
Investments in options | 100,123 | — | — | — | — | 100,123 | ||||||||||||||||||
Deferred tax asset | 2,913 | — | — | 368,031 | — | 370,944 | ||||||||||||||||||
Other assets | 121,570 | 461 | — | 24,228 | — | 146,259 | ||||||||||||||||||
$ | 1,944,959 | $ | 3,770 | $ | (382 | ) | $ | 963,297 | $ | (554,011 | ) | $ | 2,357,633 | |||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Accrued compensation and benefits | $ | 303,238 | $ | 2,123 | $ | — | $ | — | $ | — | $ | 305,361 | ||||||||||||
Due to affiliates | 85,011 | 207 | (207 | ) | 261,609 | (3,125 | ) | 343,495 | ||||||||||||||||
Deferred incentive income | 287,182 | — | — | — | — | 287,182 | ||||||||||||||||||
Debt obligations payable | — | — | — | — | — | — | ||||||||||||||||||
Other liabilities | 85,740 | 145 | — | 13,965 | — | 99,850 | ||||||||||||||||||
761,171 | 2,475 | (207 | ) | 275,574 | (3,125 | ) | 1,035,888 | |||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Paid-in capital | 5,697,315 | 3,575 | (175 | ) | 2,121,595 | (5,700,715 | ) | 2,121,595 | ||||||||||||||||
Retained earnings (accumulated deficit) | (4,567,834 | ) | (2,280 | ) | — | (1,431,944 | ) | 4,570,114 | (1,431,944 | ) | ||||||||||||||
Accumulated other comprehensive | (5,913 | ) | — | — | (1,928 | ) | 5,913 | (1,928 | ) | |||||||||||||||
income (loss) | ||||||||||||||||||||||||
Total Fortress shareholders' equity (B) | 1,123,568 | 1,295 | (175 | ) | 687,723 | (1,124,688 | ) | 687,723 | ||||||||||||||||
Principals' and others' interests in equity of consolidated subsidiaries | 60,220 | — | — | — | 573,802 | 634,022 | ||||||||||||||||||
Total Equity | 1,183,788 | 1,295 | (175 | ) | 687,723 | (550,886 | ) | 1,321,745 | ||||||||||||||||
$ | 1,944,959 | $ | 3,770 | $ | (382 | ) | $ | 963,297 | $ | (554,011 | ) | $ | 2,357,633 | |||||||||||
(A) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(B) | Includes the Principals’ (and one senior employee's) equity in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
Schedule of consolidating statement of operations information | ' | |||||||||||||||||||||||
The consolidating statement of operations information is as follows: | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Management fees: affiliates | $ | 386,487 | $ | 2,470 | $ | — | $ | — | $ | — | $ | 388,957 | ||||||||||||
Management fees: non-affiliates | 45,108 | 423 | — | — | — | 45,531 | ||||||||||||||||||
Incentive income: affiliates | 103,176 | — | — | — | — | 103,176 | ||||||||||||||||||
Incentive income: non-affiliates | 4,770 | — | — | — | — | 4,770 | ||||||||||||||||||
Expense reimbursements: affiliates | 130,336 | 18,972 | — | — | — | 149,308 | ||||||||||||||||||
Expense reimbursements: non-affiliates | 4,752 | — | — | — | — | 4,752 | ||||||||||||||||||
Other revenues | 3,162 | 2 | — | 3,423 | (3,633 | ) | 2,954 | |||||||||||||||||
677,791 | 21,867 | — | 3,423 | (3,633 | ) | 699,448 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Interest expense | 4,740 | 33 | — | 3,716 | (3,633 | ) | 4,856 | |||||||||||||||||
Compensation and benefits | 518,177 | 21,414 | — | — | — | 539,591 | ||||||||||||||||||
General, administrative and other | 98,768 | 1,201 | — | 1 | — | 99,970 | ||||||||||||||||||
Depreciation and amortization | 10,050 | 44 | — | — | — | 10,094 | ||||||||||||||||||
631,735 | 22,692 | — | 3,717 | (3,633 | ) | 654,511 | ||||||||||||||||||
Other Income (Loss) | ||||||||||||||||||||||||
Gains (losses) | 45,583 | (5 | ) | — | — | — | 45,578 | |||||||||||||||||
Tax receivable agreement liability | — | — | — | (7,739 | ) | — | (7,739 | ) | ||||||||||||||||
adjustment | ||||||||||||||||||||||||
Earnings (losses) from equity method | 125,515 | — | — | 96,655 | (96,655 | ) | 125,515 | |||||||||||||||||
investees | ||||||||||||||||||||||||
171,098 | (5 | ) | — | 88,916 | (96,655 | ) | 163,354 | |||||||||||||||||
Income (Loss) Before Income Taxes | 217,154 | (830 | ) | — | 88,622 | (96,655 | ) | 208,291 | ||||||||||||||||
Income tax benefit (expense) | (8,258 | ) | 10 | — | (33,988 | ) | — | (42,236 | ) | |||||||||||||||
Net Income (Loss) | $ | 208,896 | $ | (820 | ) | $ | — | $ | 54,634 | $ | (96,655 | ) | $ | 166,055 | ||||||||||
Principals' and Others' Interests in | $ | 6,768 | $ | — | $ | — | $ | — | $ | 104,653 | $ | 111,421 | ||||||||||||
Income (Loss) of Consolidated Subsidiaries | ||||||||||||||||||||||||
Net Income (Loss) Attributable to Class A | $ | 202,128 | $ | (820 | ) | $ | — | $ | 54,634 | $ | (201,308 | ) | $ | 54,634 | ||||||||||
Shareholders (B) | ||||||||||||||||||||||||
(A) | Other than Fortress Operating Group. | |||||||||||||||||||||||
(B) | Includes net income (loss) attributable to the Principals’ (and one senior employee’s) interests in the Fortress Operating Group column, which is eliminated in consolidation. | |||||||||||||||||||||||
Schedule of consolidating statement of cash flows information | ' | |||||||||||||||||||||||
The consolidating statement of cash flows information is as follows: | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||||||
Net income (loss) | $ | 208,896 | $ | (820 | ) | $ | — | $ | 54,634 | $ | (96,655 | ) | $ | 166,055 | ||||||||||
Adjustments to reconcile net income (loss) to net | ||||||||||||||||||||||||
cash provided by (used in) operating activities | ||||||||||||||||||||||||
Depreciation and amortization | 10,050 | 44 | — | — | — | 10,094 | ||||||||||||||||||
Other amortization and accretion | 704 | — | — | — | — | 704 | ||||||||||||||||||
(Earnings) losses from equity method | (125,515 | ) | — | — | (96,655 | ) | 96,655 | (125,515 | ) | |||||||||||||||
investees | ||||||||||||||||||||||||
Distributions of earnings from equity | 53,576 | — | — | — | — | 53,576 | ||||||||||||||||||
method investees | ||||||||||||||||||||||||
(Gains) losses | (45,583 | ) | 5 | — | — | — | (45,578 | ) | ||||||||||||||||
Deferred incentive income | (50,262 | ) | — | — | — | — | (50,262 | ) | ||||||||||||||||
Deferred tax (benefit) expense | 1,234 | — | — | 51,814 | — | 53,048 | ||||||||||||||||||
Adjustment of estimated forfeited non-cash | 43 | — | — | — | — | 43 | ||||||||||||||||||
compensation | ||||||||||||||||||||||||
Options received from affiliates | (36,470 | ) | — | — | — | — | (36,470 | ) | ||||||||||||||||
Tax receivable agreement liability | — | — | — | 7,739 | — | 7,739 | ||||||||||||||||||
adjustment | ||||||||||||||||||||||||
Equity-based compensation | 28,648 | — | — | — | — | 28,648 | ||||||||||||||||||
Options in affiliates granted to employees | 7,757 | — | — | — | — | 7,757 | ||||||||||||||||||
Allowance for doubtful accounts | 590 | — | — | — | — | 590 | ||||||||||||||||||
Cash flows due to changes in | ||||||||||||||||||||||||
Due from affiliates | (69,626 | ) | (289 | ) | (1,718 | ) | 149,616 | (166,259 | ) | (88,276 | ) | |||||||||||||
Other assets | 19,830 | 149 | — | (18,029 | ) | — | 1,950 | |||||||||||||||||
Accrued compensation and benefits | 204,305 | 413 | — | — | — | 204,718 | ||||||||||||||||||
Due to affiliates | (143,364 | ) | (2,317 | ) | 1,718 | (16,559 | ) | 166,259 | 5,737 | |||||||||||||||
Deferred incentive income | 105,753 | — | — | — | — | 105,753 | ||||||||||||||||||
Other liabilities | 32,274 | 39 | — | (116 | ) | — | 32,197 | |||||||||||||||||
Net cash provided by (used in) operating | 202,840 | (2,776 | ) | — | 132,444 | — | 332,508 | |||||||||||||||||
activities | ||||||||||||||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||||||||||
Contributions to equity method investees | (25,885 | ) | — | — | (62,681 | ) | 62,681 | (25,885 | ) | |||||||||||||||
Distributions of capital from equity method | 257,829 | — | — | 77,563 | (77,563 | ) | 257,829 | |||||||||||||||||
investees | ||||||||||||||||||||||||
Proceeds from sale of direct investments | 9,951 | — | — | — | — | 9,951 | ||||||||||||||||||
Purchase of equity securities | (19,460 | ) | — | — | — | — | (19,460 | ) | ||||||||||||||||
Purchase of fixed assets | (7,777 | ) | — | — | — | — | (7,777 | ) | ||||||||||||||||
Net cash provided by (used in) investing | 214,658 | — | — | 14,882 | (14,882 | ) | 214,658 | |||||||||||||||||
activities | ||||||||||||||||||||||||
Continued on next page. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Fortress Operating Group Combined, Excluding FOE II (New) LP | FOE II (New) LP | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (A) | Elimination Adjustments | Fortress Investment Group LLC Consolidated | |||||||||||||||||||
Cash Flows From Financing Activities | ||||||||||||||||||||||||
Repayments of debt obligations | — | — | — | (149,453 | ) | — | (149,453 | ) | ||||||||||||||||
Payment of deferred financing costs | (2,367 | ) | — | — | — | — | (2,367 | ) | ||||||||||||||||
Issuance (purchase) of Class A shares (RSU | (61,016 | ) | — | — | 61,016 | — | — | |||||||||||||||||
settlements) | ||||||||||||||||||||||||
Capital contributions (distributions) | 57,616 | 3,400 | — | — | (61,016 | ) | — | |||||||||||||||||
Dividends and dividend equivalents paid | (77,111 | ) | — | — | (41,955 | ) | 75,898 | (43,168 | ) | |||||||||||||||
Principals' and others' interests in equity of | 391 | — | — | — | — | 391 | ||||||||||||||||||
consolidated subsidiaries - contributions | ||||||||||||||||||||||||
Principals' and others' interests in equity of | (145,697 | ) | — | — | — | — | (145,697 | ) | ||||||||||||||||
consolidated subsidiaries - distributions | ||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (228,184 | ) | 3,400 | — | (130,392 | ) | 14,882 | (340,294 | ) | |||||||||||||||
Net Increase (Decrease) in Cash and Cash | 189,314 | 624 | — | 16,934 | — | 206,872 | ||||||||||||||||||
Equivalents | ||||||||||||||||||||||||
Cash and Cash Equivalents, Beginning of Period | 103,362 | 787 | — | 93 | — | 104,242 | ||||||||||||||||||
Cash and Cash Equivalents, End of Period | $ | 292,676 | $ | 1,411 | $ | — | $ | 17,027 | $ | — | $ | 311,114 | ||||||||||||
(A) | Other than Fortress Operating Group. |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 9 Months Ended |
Sep. 30, 2013 | |
category | |
sources | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of primary sources of income from the Fortress Funds | 3 |
Number of principal categories in a family of real assets funds focused on investing in tangible and intangible assets | 4 |
MANAGEMENT_AGREEMENTS_AND_FORT2
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
sources | ||||
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' |
Management fees: affil. | $121,593 | $112,806 | $388,957 | $336,935 |
Management fees, options: affil. | 0 | 8,298 | 36,470 | 21,524 |
Management fees: non-affil. | 15,361 | 10,762 | 45,531 | 32,534 |
Incentive income: affil. | 40,934 | 5,976 | 103,176 | 38,994 |
Incentive income: non-affil. | 1,907 | 788 | 4,770 | 1,564 |
Number of principal sources of income from agreements with the Fortress Funds | ' | ' | 2 | ' |
Private Equity Funds | ' | ' | ' | ' |
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' |
Management fees: affil. | 34,281 | 29,891 | 100,781 | 89,148 |
Management fees: non-affil. | 123 | 112 | 345 | 283 |
Incentive income: affil. | 6,433 | 708 | 21,742 | 1,815 |
Castles | ' | ' | ' | ' |
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' |
Management fees: affil. | 13,289 | 13,744 | 42,040 | 38,427 |
Management fees, options: affil. | 0 | 8,298 | 36,470 | 21,524 |
Management fees: non-affil. | 643 | 359 | 2,959 | 3,563 |
Incentive income: affil. | 4,178 | 0 | 5,378 | 0 |
Liquid Hedge Funds | ' | ' | ' | ' |
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' |
Management fees: affil. | 24,313 | 14,783 | 61,373 | 47,946 |
Management fees: non-affil. | 6,324 | 3,395 | 18,008 | 9,592 |
Incentive income: affil. | 10,886 | 563 | 17,350 | 1,436 |
Incentive income: non-affil. | 1,138 | 188 | 3,625 | 312 |
Credit Hedge Funds | ' | ' | ' | ' |
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' |
Management fees: affil. | 25,455 | 24,688 | 75,284 | 76,005 |
Management fees: non-affil. | 26 | 58 | 151 | 313 |
Incentive income: affil. | 10,756 | 466 | 31,330 | 1,749 |
Incentive income: non-affil. | 0 | 0 | 0 | 130 |
Credit PE Funds | ' | ' | ' | ' |
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' |
Management fees: affil. | 23,633 | 21,402 | 71,115 | 63,885 |
Management fees: non-affil. | 35 | 36 | 104 | 108 |
Incentive income: affil. | 8,681 | 4,239 | 27,376 | 33,994 |
Incentive income: non-affil. | 769 | 600 | 1,145 | 1,122 |
Logan Circle | ' | ' | ' | ' |
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' |
Management fees: affil. | 622 | 0 | 1,894 | 0 |
Management fees: non-affil. | $8,210 | $6,802 | $23,964 | $18,675 |
MANAGEMENT_AGREEMENTS_AND_FORT3
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Management and Agreement Fortress Funds | ' | ' | ' | ' |
Additional incentive income from affiliates which would be recognized if incentive income was not contingent on the results of the subsequent quarters | ' | ' | $185,900,000 | $108,000,000 |
Incentive income distributions from credit PE funds which represented tax distributions | ' | ' | 27,400,000 | 34,000,000 |
Distributed-Gross | ' | ' | ' | ' |
Deferred incentive income as of the beginning of the period | ' | ' | 894,278,000 | ' |
Incentive Income Received For Matured Funds | ' | ' | -2,180,000 | ' |
Incentive Distribution, Distribution | ' | ' | 106,709,000 | ' |
Changes in foreign exchange rates | ' | ' | -1,111,000 | ' |
Deferred incentive income as of the end of the period | 997,696,000 | ' | 997,696,000 | ' |
Deferred Incentive Income Distributed Gross, Including Matured Funds | 1,051,352,000 | ' | 1,051,352,000 | ' |
Distributed-Recognized (A) | ' | ' | ' | ' |
Deferred incentive income as of the beginning of the period | ' | ' | -662,432,000 | ' |
Incentive Income Received For Matured Funds | ' | ' | 2,180,000 | ' |
Recognition of previously deferred incentive income | -15,883,000 | -5,547,000 | -50,262,000 | -36,931,000 |
Deferred incentive income as of the end of the period | -710,514,000 | ' | -710,514,000 | ' |
Deferred Incentive Income Distributed Recognized, Including Matured Funds | -764,170,000 | ' | -764,170,000 | ' |
Distributed-Unrecognized (B) | ' | ' | ' | ' |
Deferred incentive income as of the beginning of the period | ' | ' | 231,846,000 | ' |
Incentive Distribution, Distribution | ' | ' | 106,709,000 | ' |
Recognition of previously deferred incentive income | -15,883,000 | -5,547,000 | -50,262,000 | -36,931,000 |
Changes in foreign exchange rates | ' | ' | -1,111,000 | ' |
Deferred incentive income as of the end of the period | 287,182,000 | ' | 287,182,000 | ' |
Undistributed net of intrinsic clawback (C) (D) | ' | ' | ' | ' |
Deferred incentive income as of the beginning of the period | ' | ' | 527,432,000 | ' |
Share of income (loss) of Fortress Funds | ' | ' | 397,018,000 | ' |
Incentive Distribution, Distribution | ' | ' | -106,709,000 | ' |
Deferred incentive income as of the end of the period | 817,741,000 | ' | 817,741,000 | ' |
Gross undistributed incentive income | 903,500,000 | ' | 903,500,000 | ' |
Intrinsic clawback | 85,800,000 | ' | 85,800,000 | ' |
Compensation expense paid under employee profit sharing arrangements in connection with distributed incentive income | 433,600,000 | ' | 433,600,000 | ' |
Portion of compensation expense paid under employee profit sharing arrangements in connection with distributed incentive income which has not been expensed | 27,900,000 | ' | 27,900,000 | ' |
Additional expense which would be recognized and paid if gross undistributed incentive income were realized | $370,300,000 | ' | $370,300,000 | ' |
MANAGEMENT_AGREEMENTS_AND_FORT4
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Credit PE Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Liquid Hedge Funds | Credit Hedge Funds | Credit Hedge Funds | Credit Hedge Funds | Credit Hedge Funds | Credit Hedge Funds | Credit Hedge Funds | Credit Hedge Funds | |||
Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | Outside of Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | In Investment Period | Macro Funds | Macro Funds | Macro Funds | Macro Funds | Macro Funds | Asia Macro Funds | Asia Macro Funds | Fortress Convex Asia Funds | Fortress Partners Funds | Fortress Partners Funds | Special Opportunities Funds | Special Opportunities Funds | Special Opportunities Funds | Special Opportunities Funds | Special Opportunities Funds | Worden Funds | Value Recovery Funds | |||
NIH (1998) | Fund I (1999) | Fund II (2002) | Fund III (2004) | Fund III Coinvestment (2004) | Fund IV (2006) | Fund IV Coinvestment (2006) | Fund V (2007) | Fund V Coinvestment (2007) | GAGACQ Fund (2004) | FRID (2005) | FRIC (2006) | FICO (2006) | FHIF (2006) | FECI (2007) | WWTAI (2011) | MSR Opportunities Fund I A (2012) | MSR Opportunities Fund I B (2012) | MSR Opportunities Fund II A (2013) | MSR Opportunities Fund II B (2013) | MSR Opportunities Fund II MA I (2013) | Long Dated Value Fund I (2005) | Long Dated Value Fund II (2005) | Long Dated Value Fund III (2007) | LDVF Patent Fund (2007) | Real Assets Fund (2007) | Credit Opportunities Fund (2008) | SIP Managed Account (2010) | Japan Opportunity Fund (2009) | Credit Opportunities Fund II (2009) | FCO Managed Account (2010) | Credit Opportunities Fund III (2011) | FCO Managed Accounts (2008-2012) | Japan Opportunity Fund II (Yen) (2011) | Japan Opportunity Fund II (Dollar) (2011) | Net Lease Fund I (2010) | Global Opportunities Fund (2010) | Life Settlements Fund (2010) | Life Settlements Fund MA (2010) | Real Estate Opportunities Fund (2011) | Real Estate Opportunities REOC Fund (2011) | Main fund investments | Single investor funds [Member] [Domain] | Sidepocket investments | Sidepocket investments - redeemers | Managed accounts | Main fund investments | Managed accounts | Main fund investments | Main fund investments | Sidepocket investments | Main fund investments | Sidepocket investments | Sidepocket investments - redeemers | Main fund investments (liquidating) | Managed accounts | Main fund investments | Managed accounts | |||||||
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inception to Date Capital Invested | ' | ' | ' | $415,574,000 | $1,015,943,000 | $1,974,298,000 | $2,762,992,000 | $273,649,000 | $3,639,561,000 | $762,696,000 | $4,103,713,000 | $990,480,000 | $545,663,000 | $1,220,229,000 | $328,754,000 | $724,525,000 | $1,543,463,000 | $982,779,000 | ' | $208,442,000 | $313,554,000 | $75,946,000 | $28,139,000 | $401,000 | $6,461,000 | ' | $267,325,000 | $274,280,000 | $343,156,000 | $45,466,000 | $359,024,000 | $5,493,685,000 | $11,000,000 | $1,073,051,000 | $2,162,162,000 | $549,492,000 | ' | $1,446,817,000 | $2,948,653,000 | $419,069,000 | $354,099,000 | $149,595,000 | $223,672,000 | $348,174,000 | $28,654,000 | $304,730,000 | $31,260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inception to Date Distributions | ' | ' | ' | -823,588,000 | -2,847,929,000 | -3,299,244,000 | -1,576,429,000 | -178,272,000 | -587,014,000 | -138,625,000 | -143,711,000 | -155,000 | -595,401,000 | -570,599,000 | -17,462,000 | -5,000 | -63,178,000 | -165,000 | ' | -15,304,000 | -19,325,000 | -4,680,000 | 0 | 0 | 0 | ' | -65,011,000 | -124,635,000 | -252,561,000 | -41,354,000 | -275,723,000 | -6,366,576,000 | -28,768,000 | -951,289,000 | -1,770,179,000 | -380,679,000 | ' | -565,323,000 | -2,141,672,000 | -125,469,000 | -85,249,000 | -80,240,000 | -69,254,000 | -94,254,000 | -7,696,000 | -77,022,000 | -8,904,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Asset Value (bNAVb) | ' | ' | ' | 0 | 0 | 125,849,000 | 2,830,089,000 | 118,548,000 | 4,388,567,000 | 583,800,000 | 4,387,576,000 | 652,927,000 | ' | 540,433,000 | 226,547,000 | -59,651,000 | 2,287,924,000 | 962,051,000 | ' | 209,767,000 | 322,868,000 | 78,111,000 | 27,141,000 | 387,000 | 6,232,000 | ' | 303,409,000 | 200,810,000 | 217,333,000 | 41,465,000 | 193,582,000 | 1,422,116,000 | 8,295,000 | 568,551,000 | 1,240,221,000 | 391,695,000 | ' | 1,177,666,000 | 1,683,258,000 | 347,117,000 | 316,183,000 | 142,209,000 | 205,821,000 | 237,362,000 | 19,447,000 | 262,940,000 | 28,421,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NAV Surplus (Deficit) | ' | ' | ' | ' | ' | 1,450,795,000 | 1,643,526,000 | 23,171,000 | 1,336,020,000 | -40,271,000 | 427,574,000 | -337,398,000 | ' | -109,197,000 | -84,745,000 | -784,171,000 | 807,639,000 | -20,563,000 | ' | 16,629,000 | 28,639,000 | 6,845,000 | -998,000 | -14,000 | -229,000 | ' | 101,095,000 | 51,165,000 | 126,738,000 | 37,353,000 | 110,281,000 | 2,295,007,000 | 26,063,000 | 446,789,000 | 848,238,000 | 222,882,000 | ' | 296,172,000 | 876,277,000 | 53,517,000 | 47,333,000 | 72,854,000 | 51,403,000 | -16,558,000 | -1,511,000 | 35,232,000 | 6,065,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Preferred Return Threshold | ' | ' | ' | 0 | 0 | 0 | 1,687,083,000 | 204,272,000 | 2,226,991,000 | 477,142,000 | 1,925,595,000 | 508,968,000 | ' | 818,454,000 | 235,031,000 | 482,939,000 | 938,698,000 | 592,246,000 | ' | 0 | 0 | 0 | 25,000 | 0 | 6,000 | ' | 122,540,000 | 98,575,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 54,324,000 | 4,462,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive Income Eligible NAV | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,497,640,000 | 918,685,000 | 17,977,000 | 173,900,000 | 1,147,066,000 | 1,556,613,000 | 191,060,000 | 106,210,000 | 55,680,000 | 132,251,000 | 3,717,456,000 | 96,081,000 | 233,729,000 | 853,839,000 | 5,311,000 | 223,026,000 | 22,359,000 |
Gain to Cross Incentive Income Threshold | ' | ' | ' | ' | ' | ' | 43,557,000 | 181,101,000 | 890,971,000 | 517,413,000 | 1,498,021,000 | 846,366,000 | ' | 927,651,000 | 319,776,000 | 1,267,110,000 | 131,059,000 | 612,809,000 | ' | ' | ' | ' | 1,023,000 | 14,000 | 235,000 | ' | 21,445,000 | 47,410,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,882,000 | 5,973,000 | ' | ' | 9,154,000 | 4,505,000 | 16,278,000 | 114,105,000 | 409,000 | 5,230,000 | 0 | 3,090,000 | 33,877,000 | 24,848,000 | 0 | 1,606,000 | 69,289,000 | 0 | 47,666,000 | 0 | 4,195,000 |
Percentage of Incentive Income Eligible NAV Above Incentive Income Threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82.50% | 28.90% | ' | ' | 96.80% | 66.10% | 100.00% | 0.00% | 0.10% | ' | 100.00% | ' | ' | 100.00% | 0.00% | 100.00% | 0.00% |
Gross undistributed incentive income | 903,500,000 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | 0 | 0 | 5,013,000 | 1,564,000 | 2,765,000 | 684,000 | 0 | 0 | 0 | 421,178,000 | 0 | 0 | 18,166,000 | 2,884,000 | 11,912,000 | 189,682,000 | 1,659,000 | 41,512,000 | 120,831,000 | 34,532,000 | 191,237,000 | 49,826,000 | 104,626,000 | 8,761,000 | 6,322,000 | 8,034,000 | 10,030,000 | 0 | 0 | 2,431,000 | 1,207,000 | 24,875,000 | 5,390,000 | 304,000 | 2,951,000 | 22,054,000 | 21,212,000 | 3,027,000 | 0 | 1,000 | 2,477,000 | 103,834,000 | 5,016,000 | 4,044,000 | 85,290,000 | 0 | 5,677,000 | 0 |
Distributed Incentive Income | 997,696,000 | 894,278,000 | 862,263,000 | 94,513,000 | 344,939,000 | 287,985,000 | 66,903,000 | 0 | 0 | 0 | 0 | 0 | 51,476,000 | 16,447,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 380,527,000 | 0 | 412,000 | 5,042,000 | 461,000 | 5,285,000 | 260,973,000 | 3,554,000 | 51,526,000 | 45,490,000 | 7,784,000 | 84,091,000 | 8,135,000 | 69,067,000 | 1,963,000 | 2,752,000 | 1,545,000 | 0 | 0 | 0 | 629,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributed incentive income subject to clawback | 287,182,000 | 231,846,000 | 110,638,000 | 0 | 0 | 27,288,000 | 66,903,000 | 0 | 0 | 0 | 0 | 0 | ' | 16,447,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 128,028,000 | 0 | 0 | 0 | 0 | 0 | 99,291,000 | 0 | 20,277,000 | 8,460,000 | 0 | 48,516,000 | 8,135,000 | 38,773,000 | 0 | 0 | 1,545,000 | 0 | 0 | 0 | 63,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Intrinsic Clawback | 85,800,000 | ' | 85,840,000 | 0 | 0 | 2,490,000 | 66,903,000 | 0 | 0 | 0 | 0 | 0 | ' | 16,447,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Intrinsic Clawback | 56,743,000 | ' | 56,743,000 | 0 | 0 | 1,594,000 | 45,108,000 | 0 | 0 | 0 | 0 | 0 | ' | 10,041,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Year to date Incentive Income Crystallized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,719,000 | 91,000 | 0 | 0 | 3,725,000 | 1,375,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28,480,000 | 0 | 2,680,000 | 0 |
Portion of amount due to employees under profit shareing arragnements withheld as reserve against future clawback | 41,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of undistributed and distributed income which the entity is entitled | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in undistributed incentive income | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NAV of fund excluded | $426,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MANAGEMENT_AGREEMENTS_AND_FORT5
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Details 4) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | 31-May-13 | Apr. 30, 2013 | 31-May-13 | 31-May-13 | 31-May-13 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Apr. 02, 2013 | Apr. 02, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Eurocastle | Eurocastle | Fund I (1999) | CreditHedgeFundsFund [Member] | Eurocastle and Credit Hedge Fund [Member] | Eurocastle and Credit Hedge Fund [Member] | Liquidating Entity [Domain] | Liquidating Entity [Domain] | Nih (1998) | Fixed Income Funds [Member] | AUM Used To Compute Fees, Pre-Restructuring [Member] | AUM Used To Compute Fees, Post-Restructuring [Member] | |
senior_living_property | USD ($) | USD ($) | USD ($) | fund | USD ($) | USD ($) | USD ($) | Investments made in current year | Eurocastle | Eurocastle | |||||||
fund | USD ($) | EUR (€) | EUR (€) | ||||||||||||||
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Asset Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $234,200,000 | ' | ' |
Number of Properties Owned by Third Parties | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management Fees To Be Received Expressed As Percentage of Revenues for First Two Years | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management Fees to be Received Expressed as Percentage of Revenues After Year Two | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from liquidating distribution | 1,019,000 | 1,000,000 | 2,954,000 | 2,723,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81.00% | ' | 81.00% | ' | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' |
Payments to Acquire Businesses and Interest in Affiliates | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Investees | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Assets under Management, Average Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | 300,000,000 |
Stockholders' Equity, Reverse Stock Split | ' | ' | ' | ' | ' | ' | 'one for two hundred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments | 1,263,392,000 | ' | 1,263,392,000 | ' | 1,211,684,000 | ' | ' | ' | ' | ' | 2,700,000 | ' | ' | ' | ' | ' | ' |
Incentive income: affil. | 40,934,000 | 5,976,000 | 103,176,000 | 38,994,000 | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Liquidating Entities | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit Sharing Expense | 29,540,000 | 37,018,000 | 194,091,000 | 97,249,000 | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Affiliates, Other | $6,986,000 | ' | $6,986,000 | ' | $6,450,000 | ' | ' | ' | ' | ' | $2,700,000 | ' | ' | ' | ' | ' | ' |
MANAGEMENT_AGREEMENTS_AND_FORT6
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Details 5) (Investments made in current year, Private Equity Segment [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Private Equity Funds Formed During the Period [Line Items] | ' |
Capital commitments | $1,100,000 |
Fortress | ' |
Schedule of Private Equity Funds Formed During the Period [Line Items] | ' |
Capital commitments | 15,856 |
Fortress's affiliates | ' |
Schedule of Private Equity Funds Formed During the Period [Line Items] | ' |
Capital commitments | 400 |
Third party investors | ' |
Schedule of Private Equity Funds Formed During the Period [Line Items] | ' |
Capital commitments | $1,083,744 |
MANAGEMENT_AGREEMENTS_AND_FORT7
MANAGEMENT AGREEMENTS AND FORTRESS FUNDS MANAGEMENT AGREEMENTS AND FORTRESS FUNDS (Details 6) (Liquid Hedge Funds, USD $) | Sep. 30, 2013 |
Schedule of Fortress Funds Formed, or those which Fortress Became Manager Of [Line Items] | ' |
Net Asset Value Transferred | $435,200,000 |
Investments made in current year | ' |
Schedule of Fortress Funds Formed, or those which Fortress Became Manager Of [Line Items] | ' |
Net Asset Value | 584,624,000 |
Investments made in current year | Total Fortress Shareholdersb Equity | ' |
Schedule of Fortress Funds Formed, or those which Fortress Became Manager Of [Line Items] | ' |
Net Asset Value | 100,000 |
Investments made in current year | Fortress's affiliates | ' |
Schedule of Fortress Funds Formed, or those which Fortress Became Manager Of [Line Items] | ' |
Net Asset Value | 0 |
Investments made in current year | Third party investors | ' |
Schedule of Fortress Funds Formed, or those which Fortress Became Manager Of [Line Items] | ' |
Net Asset Value | $584,524,000 |
INVESTMENTS_AND_FAIR_VALUE_Det
INVESTMENTS AND FAIR VALUE (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Investments | ' | ' | ' | ' | ' |
Equity method investees | $1,183,916 | ' | $1,183,916 | ' | $1,135,329 |
Equity method investees, held at fair value (A) | 79,476 | ' | 79,476 | ' | 76,355 |
Total equity method investments | 1,263,392 | ' | 1,263,392 | ' | 1,211,684 |
Options in equity method investees | 100,123 | ' | 100,123 | ' | 38,077 |
Gains (losses) from investments | ' | ' | ' | ' | ' |
Net realized gains (losses) | 36 | 57 | -335 | 548 | ' |
Net realized gains (losses) from affiliate investments | 6,616 | -65 | 6,499 | -106 | ' |
Net unrealized gains (losses) | 52 | -498 | 5,654 | -798 | ' |
Net unrealized gains (losses) from affiliate investments | 799 | -1,722 | 33,760 | 29,898 | ' |
Total gains (losses) | 7,503 | -2,228 | 45,578 | 29,542 | ' |
Gains (losses) | ' | ' | ' | ' | ' |
Mark to fair value on affiliate investments and options | 7,008 | -1,726 | 39,590 | 29,895 | ' |
Mark to fair value on derivatives | -1,476 | -498 | 3,805 | -866 | ' |
Trading Securities, Change in Unrealized Holding Gain (Loss) | 1,527 | 0 | 1,524 | 0 | ' |
Other | 444 | -4 | 659 | 513 | ' |
Total gains (losses) | $7,503 | ($2,228) | $45,578 | $29,542 | ' |
INVESTMENTS_AND_FAIR_VALUE_Det1
INVESTMENTS AND FAIR VALUE (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | $1,263,392 | ' | $1,263,392 | ' | $1,211,684 |
Fortress's investment at fair value | 79,476 | ' | 79,476 | ' | 76,355 |
Earnings (losses) from equity method investees | 60,508 | 52,034 | 125,515 | 110,417 | ' |
Private equity funds, excluding NIH | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | 806,875 | ' | 806,875 | ' | 720,817 |
Earnings (losses) from equity method investees | 44,552 | 35,939 | 79,929 | 70,644 | ' |
NIH | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | 0 | ' | 0 | ' | 1,177 |
Earnings (losses) from equity method investees | 0 | 50 | -554 | 159 | ' |
Publicly traded portfolio companies | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's investment at fair value | 64,176 | ' | 64,176 | ' | 67,313 |
Newcastle | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's investment at fair value | 5,828 | ' | 5,828 | ' | 9,002 |
New Residential | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's investment at fair value | 6,866 | ' | 6,866 | ' | 0 |
Eurocastle | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's investment at fair value | 2,606 | ' | 2,606 | ' | 40 |
Total private equity | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | 886,351 | ' | 886,351 | ' | 798,349 |
Earnings (losses) from equity method investees | 44,552 | 35,989 | 79,375 | 70,803 | ' |
Liquid Hedge Funds | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | 166,460 | ' | 166,460 | ' | 180,664 |
Earnings (losses) from equity method investees | 7,525 | 7,295 | 14,138 | 14,050 | ' |
Credit Hedge Funds | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | 57,101 | ' | 57,101 | ' | 58,507 |
Earnings (losses) from equity method investees | 3,372 | 3,445 | 9,037 | 8,791 | ' |
Credit PE funds | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | 145,274 | ' | 145,274 | ' | 166,482 |
Earnings (losses) from equity method investees | 5,311 | 5,446 | 23,161 | 16,532 | ' |
Other | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' |
Fortress's Investment | 8,206 | ' | 8,206 | ' | 7,682 |
Earnings (losses) from equity method investees | ($252) | ($141) | ($196) | $241 | ' |
INVESTMENTS_AND_FAIR_VALUE_Det2
INVESTMENTS AND FAIR VALUE (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | $1,211,684 | ' |
Earnings (losses) from equity method investees | 60,508 | 52,034 | 125,515 | 110,417 |
Other comprehensive income from equity method investees | ' | ' | 12 | ' |
Contributions to equity method investees | ' | ' | 248,094 | ' |
Distributions of earnings from equity method investees | ' | ' | -53,576 | ' |
Distributions of capital from equity method investees | ' | ' | -273,560 | ' |
Total distributions from equity method investees | ' | ' | -327,136 | ' |
Mark to fair value - during period | ' | ' | 11,651 | ' |
Translation adjustment | ' | ' | 1,876 | ' |
Dispositions | ' | ' | -9,951 | ' |
Reclassification to Due to Affiliates | ' | ' | 1,647 | ' |
Investment, ending | 1,263,392 | ' | 1,263,392 | ' |
Ending balance of undistributed earnings | 109,781 | ' | 109,781 | ' |
NIH | ' | ' | ' | ' |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | 1,177 | ' |
Earnings (losses) from equity method investees | 0 | 50 | -554 | 159 |
Other comprehensive income from equity method investees | ' | ' | 12 | ' |
Contributions to equity method investees | ' | ' | 0 | ' |
Distributions of earnings from equity method investees | ' | ' | 0 | ' |
Distributions of capital from equity method investees | ' | ' | -635 | ' |
Total distributions from equity method investees | ' | ' | -635 | ' |
Translation adjustment | ' | ' | 0 | ' |
Dispositions | ' | ' | 0 | ' |
Reclassification to Due to Affiliates | ' | ' | 0 | ' |
Investment, ending | 0 | ' | 0 | ' |
Ending balance of undistributed earnings | 0 | ' | 0 | ' |
Private equity funds, excluding NIH | ' | ' | ' | ' |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | 720,817 | ' |
Earnings (losses) from equity method investees | 44,552 | 35,939 | 79,929 | 70,644 |
Other comprehensive income from equity method investees | ' | ' | 0 | ' |
Contributions to equity method investees | ' | ' | 16,084 | ' |
Distributions of earnings from equity method investees | ' | ' | -8,921 | ' |
Distributions of capital from equity method investees | ' | ' | -3,328 | ' |
Total distributions from equity method investees | ' | ' | -12,249 | ' |
Mark to fair value - during period | ' | ' | -648 | ' |
Translation adjustment | ' | ' | -1 | ' |
Dispositions | ' | ' | 0 | ' |
Reclassification to Due to Affiliates | ' | ' | 1,647 | ' |
Investment, ending | 806,875 | ' | 806,875 | ' |
Ending balance of undistributed earnings | 94,421 | ' | 94,421 | ' |
Private equity portfolio companies and castles | ' | ' | ' | ' |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | 76,355 | ' |
Contributions to equity method investees | ' | ' | 319 | ' |
Mark to fair value - during period | ' | ' | 11,003 | ' |
Translation adjustment | ' | ' | 1,726 | ' |
Dispositions | ' | ' | 9,927 | ' |
Reclassification to Due to Affiliates | ' | ' | 0 | ' |
Investment, ending | 79,476 | ' | 79,476 | ' |
Liquid Hedge Funds | ' | ' | ' | ' |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | 180,664 | ' |
Earnings (losses) from equity method investees | 7,525 | 7,295 | 14,138 | 14,050 |
Other comprehensive income from equity method investees | ' | ' | 0 | ' |
Contributions to equity method investees | ' | ' | 58,663 | ' |
Distributions of earnings from equity method investees | ' | ' | -17,850 | ' |
Distributions of capital from equity method investees | ' | ' | -69,155 | ' |
Total distributions from equity method investees | ' | ' | -87,005 | ' |
Translation adjustment | ' | ' | 0 | ' |
Dispositions | ' | ' | 0 | ' |
Reclassification to Due to Affiliates | ' | ' | 0 | ' |
Investment, ending | 166,460 | ' | 166,460 | ' |
Ending balance of undistributed earnings | 5,722 | ' | 5,722 | ' |
Credit Hedge Funds | ' | ' | ' | ' |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | 58,507 | ' |
Earnings (losses) from equity method investees | 3,372 | 3,445 | 9,037 | 8,791 |
Other comprehensive income from equity method investees | ' | ' | 0 | ' |
Contributions to equity method investees | ' | ' | 149,892 | ' |
Distributions of earnings from equity method investees | ' | ' | -9,373 | ' |
Distributions of capital from equity method investees | ' | ' | -150,962 | ' |
Total distributions from equity method investees | ' | ' | -160,335 | ' |
Translation adjustment | ' | ' | 0 | ' |
Dispositions | ' | ' | 0 | ' |
Reclassification to Due to Affiliates | ' | ' | 0 | ' |
Investment, ending | 57,101 | ' | 57,101 | ' |
Ending balance of undistributed earnings | 1,774 | ' | 1,774 | ' |
Credit PE Funds | ' | ' | ' | ' |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | 166,482 | ' |
Earnings (losses) from equity method investees | 5,311 | 5,446 | 23,161 | 16,532 |
Other comprehensive income from equity method investees | ' | ' | 0 | ' |
Contributions to equity method investees | ' | ' | 22,282 | ' |
Distributions of earnings from equity method investees | ' | ' | -17,428 | ' |
Distributions of capital from equity method investees | ' | ' | -49,350 | ' |
Total distributions from equity method investees | ' | ' | -66,778 | ' |
Translation adjustment | ' | ' | 151 | ' |
Dispositions | ' | ' | -24 | ' |
Reclassification to Due to Affiliates | ' | ' | 0 | ' |
Investment, ending | 145,274 | ' | 145,274 | ' |
Ending balance of undistributed earnings | 5,818 | ' | 5,818 | ' |
Other | ' | ' | ' | ' |
Changes in investments in equity method investees | ' | ' | ' | ' |
Investment, beginning | ' | ' | 7,682 | ' |
Earnings (losses) from equity method investees | -252 | -141 | -196 | 241 |
Other comprehensive income from equity method investees | ' | ' | 0 | ' |
Contributions to equity method investees | ' | ' | 854 | ' |
Distributions of earnings from equity method investees | ' | ' | -4 | ' |
Distributions of capital from equity method investees | ' | ' | -130 | ' |
Total distributions from equity method investees | ' | ' | -134 | ' |
Translation adjustment | ' | ' | 0 | ' |
Dispositions | ' | ' | 0 | ' |
Reclassification to Due to Affiliates | ' | ' | 0 | ' |
Investment, ending | 8,206 | ' | 8,206 | ' |
Ending balance of undistributed earnings | $2,046 | ' | $2,046 | ' |
INVESTMENTS_AND_FAIR_VALUE_Det3
INVESTMENTS AND FAIR VALUE (Details 4) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Contributions | ' | ' |
Per Consolidated Statements of Cash Flows | $25,885 | $52,573 |
Investments of receivable amounts into Fortress Funds | 206,455 | 74,636 |
Net funded | 12,398 | ' |
Noncontrolling Interest From Consolidation Of Private Equity Liquidating Entity | 2,553 | ' |
Other | 803 | ' |
Per Above | 248,094 | ' |
Distributions of Capital | ' | ' |
Per Consolidated Statements of Cash Flows | 257,829 | 137,015 |
Change in distributions payable out of Fortress Funds | 3,066 | ' |
Net funded | 12,398 | ' |
Other | 267 | ' |
Per Above | $273,560 | ' |
INVESTMENTS_AND_FAIR_VALUE_Det4
INVESTMENTS AND FAIR VALUE (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Investments in Equity Method Investees | ' | ' | ' | ' | ' | ' |
Fortress's Investment | $1,263,392 | ' | $1,263,392 | ' | ' | $1,211,684 |
Fortressbs equity in net income (loss) | 60,508 | 52,034 | 125,515 | ' | 110,417 | ' |
Private equity funds, excluding NIH | ' | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' | ' |
Assets | 18,248,275 | ' | 18,248,275 | ' | ' | 15,944,821 |
Debt | 0 | ' | 0 | ' | ' | 0 |
Other liabilities | -178,957 | ' | -178,957 | ' | ' | -143,951 |
Equity | 18,069,318 | ' | 18,069,318 | ' | ' | 15,800,870 |
Fortress's Investment | 806,875 | ' | 806,875 | ' | ' | 720,817 |
Ownership (A) | 4.50% | ' | 4.50% | ' | ' | 4.60% |
Revenues and gains (losses) on investments | ' | ' | 2,745,654 | ' | 2,763,969 | ' |
Expenses | ' | ' | -149,763 | ' | -140,842 | ' |
Net Income (Loss) | ' | ' | 2,595,891 | ' | 2,623,127 | ' |
Fortressbs equity in net income (loss) | 44,552 | 35,939 | 79,929 | ' | 70,644 | ' |
Number Of Entities Reported Using Lagging Financial Information | ' | ' | 4 | ' | ' | ' |
Lag in Preparation of Summary Financial Information Number of Quarters | 1 | ' | ' | ' | ' | ' |
Liquid Hedge Funds | ' | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | 9,293,405 |
Debt | ' | ' | ' | ' | ' | 0 |
Other liabilities | ' | ' | ' | ' | ' | -4,682,311 |
Non-controlling interest | ' | ' | ' | ' | ' | 0 |
Equity | 6,267,484 | ' | 6,267,484 | ' | ' | 4,611,094 |
Fortress's Investment | 166,460 | ' | 166,460 | ' | ' | 180,664 |
Ownership (A) | 2.70% | ' | 2.70% | ' | ' | 3.90% |
Revenues and gains (losses) on investments | ' | ' | ' | 754,200 | 367,662 | ' |
Expenses | ' | ' | ' | -103,500 | -93,966 | ' |
Net Income (Loss) | ' | ' | 420,916 | 650,700 | 273,696 | ' |
Fortressbs equity in net income (loss) | 7,525 | 7,295 | 14,138 | ' | 14,050 | ' |
Lag in Preparation of Summary Financial Information Number of Quarters | 1 | ' | ' | ' | ' | ' |
Credit Hedge Funds | ' | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' | ' |
Assets | 9,818,652 | ' | 9,818,652 | ' | ' | 9,431,681 |
Debt | -3,731,912 | ' | -3,731,912 | ' | ' | -3,329,686 |
Other liabilities | -315,294 | ' | -315,294 | ' | ' | -447,127 |
Non-controlling interest | -2,394 | ' | -2,394 | ' | ' | -4,289 |
Equity | 5,769,052 | ' | 5,769,052 | ' | ' | 5,650,579 |
Fortress's Investment | 57,101 | ' | 57,101 | ' | ' | 58,507 |
Ownership (A) | 1.00% | ' | 1.00% | ' | ' | 1.00% |
Revenues and gains (losses) on investments | ' | ' | 975,979 | ' | 929,106 | ' |
Expenses | ' | ' | -182,961 | ' | -171,931 | ' |
Net Income (Loss) | ' | ' | 793,018 | ' | 757,175 | ' |
Fortressbs equity in net income (loss) | 3,372 | 3,445 | 9,037 | ' | 8,791 | ' |
Credit PE Funds | ' | ' | ' | ' | ' | ' |
Investments in Equity Method Investees | ' | ' | ' | ' | ' | ' |
Assets | 9,476,196 | ' | 9,476,196 | ' | ' | 9,536,328 |
Debt | -199,707 | ' | -199,707 | ' | ' | -75,413 |
Other liabilities | -262,226 | ' | -262,226 | ' | ' | -314,329 |
Non-controlling interest | -7,887 | ' | -7,887 | ' | ' | -14,228 |
Equity | 9,006,376 | ' | 9,006,376 | ' | ' | 9,132,358 |
Fortress's Investment | 145,274 | ' | 145,274 | ' | ' | 166,482 |
Ownership (A) | 1.60% | ' | 1.60% | ' | ' | 1.80% |
Revenues and gains (losses) on investments | ' | ' | 1,296,556 | ' | 1,384,905 | ' |
Expenses | ' | ' | -233,363 | ' | -213,996 | ' |
Net Income (Loss) | ' | ' | 1,063,193 | ' | 1,170,909 | ' |
Fortressbs equity in net income (loss) | $5,311 | $5,446 | $23,161 | ' | $16,532 | ' |
Number Of Entities Reported Using Lagging Financial Information | ' | ' | 1 | ' | ' | ' |
Lag in Preparation of Summary Financial Information Number of Quarters | 1 | ' | ' | ' | ' | ' |
Foreign Entity Recorded on Lag Period | '1 month | ' | ' | ' | ' | ' |
INVESTMENTS_AND_FAIR_VALUE_Det5
INVESTMENTS AND FAIR VALUE (Details 6) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fortress is not Primary Beneficiary | Private Equity Funds | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | $970,000 | $9,087,000 |
Financial Obligations | 0 | 0 |
Fortress Investment | 270,000 | 1,176,000 |
Fortress is not Primary Beneficiary | Castles | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 9,171,246,000 | 7,421,269,000 |
Financial Obligations | 6,171,617,000 | 5,798,143,000 |
Fortress Investment | 129,240,000 | 56,294,000 |
Fortress is not Primary Beneficiary | Liquid Hedge Funds | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 3,221,910,000 | 4,905,876,000 |
Financial Obligations | 868,456,000 | 2,271,914,000 |
Fortress Investment | 4,089,000 | 27,817,000 |
Fortress is not Primary Beneficiary | Credit Hedge Funds | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 1,909,917,000 | 1,771,900,000 |
Financial Obligations | 386,868,000 | 365,135,000 |
Fortress Investment | 3,270,000 | 46,193,000 |
Fortress is not Primary Beneficiary | Credit PE Funds | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 1,149,350,000 | 1,536,067,000 |
Financial Obligations | 374,211,000 | 418,208,000 |
Fortress Investment | 4,839,000 | 4,483,000 |
Fortress is not Primary Beneficiary | Logan Circle | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 240,106,000 | 0 |
Financial Obligations | 0 | 0 |
Fortress Investment | 126,000 | 0 |
Fortress is not Primary Beneficiary | Investments made in current year | Castles | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 2,929,633,000 | ' |
Financial Obligations | 1,467,934,000 | ' |
Fortress Investment | 60,471,000 | ' |
Fortress is not Primary Beneficiary | Investments made in current year | Credit PE Funds | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 92,595,000 | ' |
Financial Obligations | 27,170,000 | ' |
Fortress Investment | 394,000 | ' |
Fortress is not Primary Beneficiary | Investments made in current year | Logan Circle | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Variable Interest Entity Nonconsolidated Carrying Amount or Fair Value Assets | 240,106,000 | ' |
Financial Obligations | 0 | ' |
Fortress Investment | 126,000 | ' |
FCF | ' | ' |
Investments in Variable Interest Entities | ' | ' |
Gross Assets | 43,400,000 | ' |
Fortress Investment | $15,300,000 | ' |
INVESTMENTS_AND_FAIR_VALUE_Det6
INVESTMENTS AND FAIR VALUE (Details 7) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Newcastle [Member] | Newcastle [Member] | Newcastle [Member] | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | ||
principal | principal | principal | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | |||||
Castles | Castles | Publicly traded portfolio companies | Publicly traded portfolio companies | Logan Circle | Logan Circle | Castles | Castles | ||||||||||
Common Stock | Common Stock | Common Stock | Common Stock | ||||||||||||||
Fair Value of Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Principals Participating in Public Offering | ' | ' | 2 | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets (within Investments) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total equity method investments carried at fair value | $79,476 | $76,355 | ' | ' | ' | $79,476 | $76,355 | $15,300 | $9,042 | $64,176 | $67,313 | ' | ' | ' | ' | ' | ' |
Newcastle, New Residential and Eurocastle options | 100,123 | 38,077 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,123 | 38,077 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,253 | 1,101 | ' | ' |
Assets (within Other Assets) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Securities (A) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,984 | 0 | ' | ' | ' | ' |
Liabilities (within Accrued Compensation and Benefits) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options in affiliates granted to employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,957 | -10,120 | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($2,469) | $0 | ' | ' |
INVESTMENTS_AND_FAIR_VALUE_Det7
INVESTMENTS AND FAIR VALUE (Details 8) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Feb. 28, 2013 | Jun. 30, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | 31-May-13 | 31-May-13 | Jul. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Newcastle | Newcastle | Newcastle | Newcastle | Eurocastle | Eurocastle | GAGFAH [Member] | GAGFAH [Member] | GAGFAH [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | ||||||
principal | principal | principal | ||||||||||||
Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued | ' | ' | ' | ' | ' | ' | 40,300,000 | 23,000,000 | 57,500,000 | ' | 15,000,000 | ' | ' | ' |
Price of shares of common stock issued (in units of currency per share) | ' | ' | ' | ' | ' | $10.34 | $4.97 | $10.48 | $9.35 | ' | € 7.25 | ' | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | ' | 4,025,000 | 2,300,000 | 5,750,000 | 1,500,000 | ' | ' | ' | ' |
Derivative, Price Risk Option Strike Price | ' | ' | ' | ' | ' | ' | ' | 10.48 | ' | ' | ' | ' | ' | ' |
Value of options granted | $0 | $8,298,000 | $36,470,000 | $21,524,000 | ' | ' | $3,800,000 | $8,400,000 | $18,000,000 | $6,200,000 | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | '30 months | '30 months | '30 months | ' | ' | ' | ' | ' |
Term of options | ' | ' | ' | ' | ' | ' | '10 years | '10 years | '10 years | '10 years | ' | ' | ' | ' |
Number of Principals Participating in Public Offering | ' | ' | ' | ' | ' | ' | 2 | 2 | 2 | ' | ' | ' | ' | ' |
Number of shares purchased by each Principal | ' | ' | ' | ' | ' | ' | 750,000 | 95,500 | 106,950 | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | $10.34 | $4.97 | $10.48 | $9.35 | ' | € 7.25 | ' | ' | ' |
Sale of Stock, Number of Shares Issued in Transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 862,383 | ' | ' |
Gain on Sale of Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' |
Equity Method Investments | 1,263,392,000 | ' | 1,263,392,000 | ' | 1,211,684,000 | ' | ' | ' | ' | ' | ' | ' | ' | 6,200,000 |
Unrealized Gain (Loss) on Investments | $52,000 | ($498,000) | $5,654,000 | ($798,000) | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 | ' |
INVESTMENTS_AND_FAIR_VALUE_Det8
INVESTMENTS AND FAIR VALUE (Details 9) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Foreign exchange option contract, one | Foreign exchange option contract, one | Foreign exchange option contract, two | Foreign exchange option contract, two | Foreign exchange option contract, three | Foreign exchange option contract, three | Foreign exchange option contract, four | Foreign exchange option contract, four | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | |||||
Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Assets at Fair Value | ' | ' | ' | ' | $235 | ' | ' | ' | $6,018 | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | 16,000 | ' | 100,000 | ' | 13,592,011 | ' | 1,334,948 |
Gains/(Losses) | ' | ' | ' | ' | 159 | ' | -1,434 | ' | 4,937 | ' | 118 | ' |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | ' | ' | ' | ' | ' | ' | -1,361 | ' | ' | ' | -1,108 | ' |
Mark to fair value on derivatives | ($1,476) | ($498) | $3,805 | ($866) | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_OBLIGATIONS_Details
DEBT OBLIGATIONS (Details) (USD $) | 1 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
Jul. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Revolving debt | Revolving debt | Revolving debt | Revolving debt | Letter of credit subfacility | Term loan | Term loan | ||||
DEBT OBLIGATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of Debt, Amount | ' | ' | ' | $60,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | ' | ' | 28-Feb-16 | ' | ' | ' | 28-Feb-14 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' |
Debt obligations payable | ' | 0 | 149,453,000 | ' | 0 | 0 | 0 | ' | ' | ' |
Contractual Interest Rate, basis | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' |
Contractual Interest Rate, spread (as a percent) | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' |
Amount Available for Draws | ' | ' | ' | ' | 147,332,000 | 147,332,000 | ' | ' | ' | ' |
Short-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 149,453,000 |
Maximum borrowing amount | ' | ' | ' | 150,000,000 | 150,000,000 | 150,000,000 | ' | 15,000,000 | ' | ' |
Amount utilized | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | ' | ' |
Unused commitment fees (as a percent) | ' | ' | ' | ' | 0.40% | ' | ' | ' | ' | ' |
Payments of Debt Issuance Costs | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' |
Repayments of Related Party Debt | $89,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_OBLIGATIONS_Details_2
DEBT OBLIGATIONS (Details 2) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Actual | ' |
DEBT OBLIGATIONS | ' |
Debt Instrument, Covenant Assets under Management | $41,964 |
Debt Instrument, Covenant Consolidated Leverage Ratio | 0 |
Debt Instrument, Covenant Consolidated Interest Coverage Ratio | 45.75 |
Minimum | Scenario Covenant Requirement [Member] | ' |
DEBT OBLIGATIONS | ' |
Debt Instrument, Covenant Assets under Management | $25,000 |
Debt Instrument, Covenant Consolidated Interest Coverage Ratio | 4 |
Maximum | Scenario Covenant Requirement [Member] | ' |
DEBT OBLIGATIONS | ' |
Debt Instrument, Covenant Consolidated Leverage Ratio | 2 |
INCOME_TAXES_AND_TAX_RELATED_P2
INCOME TAXES AND TAX RELATED PAYMENTS (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Estimated tax shortfalls | ' | ' | $25,100,000 | $30,000,000 |
Deferred income tax expense (benefit) | 7,894,000 | -610,000 | 53,048,000 | 32,107,000 |
Current income tax benefit credited to paid-in capital, related to dividend equivalent payments on RSUs, as applicable, and distributions to Fortress Operating Group restricted partnership unit holders | 500,000 | ' | ' | ' |
Current income tax expense debited to paid-in capital related to equity-based compensation | ' | ' | 1,000,000 | ' |
Payments pursuant to the tax receivable agreement | 18,500,000 | ' | 18,500,000 | ' |
Tax receivable agreement liability adjustment | 0 | 0 | 7,739,000 | 6,935,000 |
Due to Change in Ownership and Other [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Deferred tax asset, change in amount | -500,000 | ' | ' | ' |
Valuation allowance for deferred tax asset, change in amount | -1,400,000 | ' | ' | ' |
Due to Step Up in Tax Basis due to Share Exchanges [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Deferred tax asset, change in amount | 11,500,000 | ' | ' | ' |
Valuation allowance for deferred tax asset, change in amount | 200,000 | ' | ' | ' |
Equity Method Investee [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Deferred income tax expense (benefit) | ' | ' | $400,000 | ' |
INCOME_TAXES_AND_TAX_RELATED_P3
INCOME TAXES AND TAX RELATED PAYMENTS (Provision for Income Taxes) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Current | ' | ' | ' | ' |
Federal income tax expense (benefit) | $3,150 | $2,952 | ($16,366) | ($2,634) |
Foreign income tax expense (benefit) | 2,038 | 1,814 | 4,942 | 5,094 |
State and local income tax expense (benefit) | 1,712 | -275 | 612 | -316 |
Total current tax expense | 6,900 | 4,491 | -10,812 | 2,144 |
Deferred | ' | ' | ' | ' |
Federal income tax expense (benefit) | 6,777 | -520 | 45,327 | 28,028 |
Foreign income tax expense (benefit) | -62 | -51 | -22 | 956 |
State and local income tax expense (benefit) | 1,179 | -39 | 7,743 | 3,123 |
Deferred income tax expense (benefit) | 7,894 | -610 | 53,048 | 32,107 |
Total expense (benefit) | $14,794 | $3,881 | $42,236 | $34,251 |
INCOME_TAXES_AND_TAX_RELATED_P4
INCOME TAXES AND TAX RELATED PAYMENTS (Tax Effect of Temporary Differences) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Total deferred tax assets | $432,511 | $485,160 |
Valuation allowance | -61,567 | -83,025 |
Net deferred tax assets | 370,944 | 402,135 |
Total deferred tax liabilities (A) | $15,715 | $5,815 |
INCOME_TAXES_AND_TAX_RELATED_P5
INCOME TAXES AND TAX RELATED PAYMENTS (Changes in Deferred Tax Asset Valuation Allowance) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Due to Change in Ownership [Member] | Due to Factors Other Than Change in Ownership [Member] | ||
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Valuation Allowance at December 31, 2012 | $61,567 | $83,025 | ' | ' |
Valuation allowance for deferred tax asset, change in amount | ' | ' | -1,389 | -20,069 |
Valuation Allowance at September 30, 2013 | $61,567 | $83,025 | ' | ' |
RELATED_PARTY_TRANSACTIONS_AND2
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Details) (USD $) | 1 Months Ended | ||
Oct. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
fund | |||
Due from Affiliates | ' | ' | ' |
Management fees and incentive income | ' | $91,032,000 | $227,403,000 |
Expense reimbursements (A) | ' | 28,784,000 | 24,391,000 |
Expense reimbursements - FCF (B) | ' | 34,660,000 | 14,557,000 |
Dividends and distributions | ' | 285,000 | 228,000 |
Other | ' | 11,040,000 | 13,978,000 |
Total | ' | 165,801,000 | 280,557,000 |
Allowances for uncollectible management fees | ' | 12,200,000 | 12,200,000 |
Allowances for uncollectible expense reimbursements | ' | 6,200,000 | 5,800,000 |
Past due management fees receivable | ' | 47,500,000 | ' |
Private equity general and administrative expenses advanced on behalf of certain Fortress Funds | ' | 16,000,000 | ' |
Number of funds from which unreserved amounts are due | ' | 3 | ' |
Unreserved amount as percentage of NAV, both individually and in the aggregate is less than | ' | 5.00% | ' |
Due From Affiliates Past Due Management Fee Collected | 15,800,000 | ' | ' |
Due to Affiliates | ' | ' | ' |
Principals - Tax receivable agreement - Note 5 | ' | 261,609,000 | 253,787,000 |
Principals - Principal Performance Payments - Note 7 | ' | 30,398,000 | 25,573,000 |
Distributions payable on Fortress Operating Group units | ' | 3,255,000 | 31,997,000 |
Other | ' | 6,986,000 | 6,450,000 |
General partner liability - Note 9 | ' | 41,247,000 | 39,600,000 |
Total | ' | 343,495,000 | 357,407,000 |
Private Equity Funds | ' | ' | ' |
Due from Affiliates | ' | ' | ' |
Management fees and incentive income | ' | 55,629,000 | 31,909,000 |
Expense reimbursements (A) | ' | 2,101,000 | 1,338,000 |
Expense reimbursements - FCF (B) | ' | 34,660,000 | 14,557,000 |
Dividends and distributions | ' | 0 | 0 |
Other | ' | 920,000 | 1,584,000 |
Total | ' | 93,310,000 | 49,388,000 |
Castles | ' | ' | ' |
Due from Affiliates | ' | ' | ' |
Management fees and incentive income | ' | 9,711,000 | 4,726,000 |
Expense reimbursements (A) | ' | 3,821,000 | 3,651,000 |
Expense reimbursements - FCF (B) | ' | 0 | 0 |
Dividends and distributions | ' | 285,000 | 228,000 |
Other | ' | 0 | 654,000 |
Total | ' | 13,817,000 | 9,259,000 |
Liquid Hedge Funds | ' | ' | ' |
Due from Affiliates | ' | ' | ' |
Management fees and incentive income | ' | 2,430,000 | 40,929,000 |
Expense reimbursements (A) | ' | 5,833,000 | 5,376,000 |
Expense reimbursements - FCF (B) | ' | 0 | 0 |
Dividends and distributions | ' | 0 | 0 |
Other | ' | 0 | 0 |
Total | ' | 8,263,000 | 46,305,000 |
Credit Hedge Funds | ' | ' | ' |
Due from Affiliates | ' | ' | ' |
Management fees and incentive income | ' | 5,126,000 | 122,902,000 |
Expense reimbursements (A) | ' | 5,681,000 | 3,621,000 |
Expense reimbursements - FCF (B) | ' | 0 | 0 |
Dividends and distributions | ' | 0 | 0 |
Other | ' | 0 | 0 |
Total | ' | 10,807,000 | 126,523,000 |
Credit PE funds | ' | ' | ' |
Due from Affiliates | ' | ' | ' |
Management fees and incentive income | ' | 17,445,000 | 26,937,000 |
Expense reimbursements (A) | ' | 11,261,000 | 10,405,000 |
Expense reimbursements - FCF (B) | ' | 0 | 0 |
Dividends and distributions | ' | 0 | 0 |
Other | ' | 12,000 | 650,000 |
Total | ' | 28,718,000 | 37,992,000 |
Other | ' | ' | ' |
Due from Affiliates | ' | ' | ' |
Management fees and incentive income | ' | 691,000 | 0 |
Expense reimbursements (A) | ' | 87,000 | 0 |
Expense reimbursements - FCF (B) | ' | 0 | 0 |
Dividends and distributions | ' | 0 | 0 |
Other | ' | 10,108,000 | 11,090,000 |
Total | ' | $10,886,000 | $11,090,000 |
RELATED_PARTY_TRANSACTIONS_AND3
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
employee | |||||
Other Related Party Transactions | ' | ' | ' | ' | ' |
Revenues from affiliates included in other revenues | ' | ' | $1,300,000 | $1,300,000 | ' |
Number of employees who repaid advances | ' | ' | 2 | ' | ' |
Advances repaid by senior employees | ' | ' | 1,600,000 | ' | ' |
Non Controlling Interest in the Equity of the Registrant | ' | ' | ' | ' | ' |
Fortress Operating Group units held by the Principals and one senior employee | 573,802,000 | ' | 573,802,000 | ' | 530,739,000 |
Employee interests in majority owned and controlled fund advisor and general partner entities | 58,179,000 | ' | 58,179,000 | ' | 57,411,000 |
Other | 2,041,000 | ' | 2,041,000 | ' | 2,029,000 |
Total | 634,022,000 | ' | 634,022,000 | ' | 590,179,000 |
Non-controlling Interest in the Income (Loss) of the Registrant | ' | ' | ' | ' | ' |
Fortress Operating Group units held by the Principals and one senior employee | 57,221,000 | 3,845,000 | 104,653,000 | 15,332,000 | ' |
Employee interests in majority owned and controlled fund advisor and general partner entities | 1,647,000 | 2,098,000 | 6,756,000 | 5,228,000 | ' |
Other | -64,000 | 15,000 | 12,000 | 138,000 | ' |
Total | 58,804,000 | 5,958,000 | 111,421,000 | 20,698,000 | ' |
Changes in the Registrant's Equity due to Changes in Ownership in the Consolidated Operating Group Subsidiary | ' | ' | ' | ' | ' |
Net income (loss) attributable to Fortress | 42,381,000 | 708,000 | 54,634,000 | -23,923,000 | ' |
Increase in Fortressbs shareholdersb equity for the conversion of Fortress Operating Group units by the Principals and one senior employee | 0 | 2,929,000 | 10,143,000 | 22,167,000 | ' |
Increase in Fortressbs shareholdersb equity for the delivery of Class A shares primarily in connection with vested RSUs and RPUs | 3,062,000 | 3,579,000 | 12,550,000 | 14,280,000 | ' |
Change from net income (loss) attributable to Fortress and transfers (to) from Principalsb and Othersb Interests | 45,443,000 | 7,216,000 | 77,327,000 | 12,524,000 | ' |
Fortress Operating Group portion of interests | ' | ' | ' | ' | ' |
Non Controlling Interest in the Equity of the Registrant | ' | ' | ' | ' | ' |
Fortress Operating Group units held by the Principals and one senior employee | 573,802,000 | ' | 573,802,000 | ' | 530,739,000 |
Total | 60,220,000 | ' | 60,220,000 | ' | 59,440,000 |
Senior Employee [Member] | ' | ' | ' | ' | ' |
Other Related Party Transactions | ' | ' | ' | ' | ' |
Advances made to senior employees | ' | ' | $1,000,000 | ' | ' |
Number of employees who received advances | ' | ' | 1 | ' | ' |
Rate basis on advances to employees | ' | ' | 'LIBOR | ' | ' |
Interest rate on advances to employees | 4.00% | ' | 4.00% | ' | ' |
RELATED_PARTY_TRANSACTIONS_AND4
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED SUBSIDIARIES (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | employee | |
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ' | ' |
Fortress Operating Group equity (Note 12) | $1,321,745 | $1,216,650 |
Less: Other's interests in equity of consolidated subsidiaries (Note 12) | -634,022 | -590,179 |
Total Fortress shareholder's equity in Fortress Operating Group | 687,723 | 626,471 |
Fortress Operating Group as a percent of the total (B) | 51.00% | 53.10% |
Equity of Fortress Operating Group units held by Principals and one senior employee | 573,802 | 530,739 |
Number of Senior Employees Holding Ownership Interest in Operating Group Restricted Partnership Units | 1 | ' |
Shares owned by registrant (as a percent) | 49.00% | 46.90% |
Treasury shares held | ' | 2,082,684 |
Class B Shares | ' | ' |
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ' | ' |
Common stock, shares outstanding | 249,534,372 | 249,534,372 |
Class A Shares | ' | ' |
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ' | ' |
Common stock, shares outstanding | 239,568,798 | 218,286,342 |
Treasury shares held | ' | 2,082,684 |
Class A and Class B Shares | ' | ' |
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ' | ' |
Common stock, shares outstanding | 489,103,170 | 469,903,398 |
Fortress Operating Group portion of interests | ' | ' |
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ' | ' |
Fortress Operating Group equity (Note 12) | 1,184,908 | 1,058,886 |
Less: Other's interests in equity of consolidated subsidiaries (Note 12) | -60,220 | -59,440 |
Total Fortress shareholder's equity in Fortress Operating Group | 1,124,688 | 999,446 |
Equity of Fortress Operating Group units held by Principals and one senior employee | $573,802 | $530,739 |
Fortress Operating Group portion of interests | Class B Shares | ' | ' |
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ' | ' |
Common stock, shares outstanding | 249,534,372 | 249,534,372 |
Fortress Operating Group portion of interests | Class A Shares | ' | ' |
Non Controlling Interest in the Equity of the Consolidated Subsidiary | ' | ' |
Common stock, shares outstanding | 239,568,798 | 220,369,026 |
EQUITYBASED_AND_OTHER_COMPENSA2
EQUITY-BASED AND OTHER COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Principal Performance Payments | Principal Performance Payments | Principal Performance Payments | Principal Performance Payments | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | Restricted shares | Restricted shares | Restricted shares | Restricted shares | Restricted shares | Restricted shares | RPUs | RPUs | RPUs | RPUs | RPUs | |||||
Employees | Employees | Employees | Employees | Non-Employees | Non-Employees | Non-Employees | Non-Employees | Principal Performance Payments | General and Administrative | General and Administrative | Director | Director | Director | Director | Employees | |||||||||||||||
Employees | ||||||||||||||||||||||||||||||
Equity-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity-based compensation, per below | $8,671,000 | $49,349,000 | $28,648,000 | $162,372,000 | $3,602,000 | $1,469,000 | $10,290,000 | $2,351,000 | ' | ' | $5,069,000 | $24,839,000 | $18,357,000 | $91,446,000 | $0 | $228,000 | $1,000 | $609,000 | ' | $600,000 | $500,000 | $0 | $0 | $0 | $24,000 | $0 | $22,813,000 | $0 | $67,942,000 | ' |
Profit-sharing expense, per below | 29,540,000 | 37,018,000 | 194,091,000 | 97,249,000 | 3,726,000 | 4,154,000 | 24,097,000 | 11,068,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discretionary bonuses | 52,033,000 | 46,410,000 | 155,121,000 | 140,846,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other payroll, taxes and benefits | 56,213,000 | 48,644,000 | 161,731,000 | 136,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation and benefit expense | 146,457,000 | 181,421,000 | 539,591,000 | 537,267,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares and units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,754,544 | ' | ' | ' | 1,246,406 | ' | ' | ' | ' | ' | ' | 828,211 | ' | ' | ' | ' | ' | 10,333,334 |
Issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 | 1,100,000 | ' | ' | 8,805,841 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | 127,533 | ' | ' | ' | ' | ' | 0 |
Transfers (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 |
Converted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,589,683 | ' | ' | ' | -1,231,906 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -10,333,334 |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -713,969 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 |
Balance outstanding at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,256,733 | ' | 20,256,733 | ' | 14,500 | ' | 14,500 | ' | ' | ' | ' | 955,744 | ' | 955,744 | ' | ' | ' | ' | ' | 0 |
Weighted average grant date estimated fair value per share or unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.28 | ' | ' | ' | $5.51 | ' | ' | ' | ' | ' | ' | $5.29 | ' | ' | ' | ' | ' | $13.75 |
Issued (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.06 | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | $6.21 | ' | ' | ' | ' | ' | $0 |
Transfers (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | $0 |
Converted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.44 | ' | ' | ' | $5.53 | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | $13.75 |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.72 | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | $0 |
Balance outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.12 | ' | $4.12 | ' | $3.12 | ' | $3.12 | ' | ' | ' | ' | $5.41 | ' | $5.41 | ' | ' | ' | ' | ' | $0 |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense on non-vested equity based awards | $48,500,000 | ' | $48,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average recognition perid (in years) | ' | ' | '2 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards expected to be granted on the basis of year-to-date performance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EQUITYBASED_AND_OTHER_COMPENSA3
EQUITY-BASED AND OTHER COMPENSATION EQUITY-BASED AND OTHER COMPENSATION (Details 2) (RSUs, USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Jan. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 |
Employees | |||
Equity-Based Compensation | ' | ' | ' |
Vesting period (in years) | '3 years | '3 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,800,000 | 1,100,000 | 8,805,841 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments other than options, granted in period, fair value | $20.50 | $7.20 | ' |
EQUITYBASED_AND_OTHER_COMPENSA4
EQUITY-BASED AND OTHER COMPENSATION (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred and equity related compensation | ' | ' | ' | ' |
Equity-based compensation | $8,671 | $49,349 | $28,648 | $162,372 |
Profit Sharing Expense | 29,540 | 37,018 | 194,091 | 97,249 |
Principal Performance Payments | ' | ' | ' | ' |
Deferred and equity related compensation | ' | ' | ' | ' |
Equity-based compensation | 3,602 | 1,469 | 10,290 | 2,351 |
Profit Sharing Expense | 3,726 | 4,154 | 24,097 | 11,068 |
Total equity-based compensation and profit sharing expense accrual | ' | ' | 34,387 | ' |
Private Equity Business | Principal Performance Payments | ' | ' | ' | ' |
Deferred and equity related compensation | ' | ' | ' | ' |
Equity-based compensation | ' | ' | 0 | ' |
Profit Sharing Expense | ' | ' | 889 | ' |
Total equity-based compensation and profit sharing expense accrual | ' | ' | 889 | ' |
Castles | ' | ' | ' | ' |
Deferred and equity related compensation | ' | ' | ' | ' |
Profit Sharing Expense | -459 | 1 | 7,757 | 3,378 |
Credit Business | Principal Performance Payments | ' | ' | ' | ' |
Deferred and equity related compensation | ' | ' | ' | ' |
Equity-based compensation | ' | ' | 7,243 | ' |
Profit Sharing Expense | ' | ' | 14,554 | ' |
Total equity-based compensation and profit sharing expense accrual | ' | ' | 21,797 | ' |
Liquid Hedge Funds | ' | ' | ' | ' |
Deferred and equity related compensation | ' | ' | ' | ' |
Profit Sharing Expense | -3,578 | 4,544 | 35,458 | 11,431 |
Liquid Hedge Funds | Principal Performance Payments | ' | ' | ' | ' |
Deferred and equity related compensation | ' | ' | ' | ' |
Equity-based compensation | ' | ' | 3,047 | ' |
Profit Sharing Expense | ' | ' | 8,654 | ' |
Total equity-based compensation and profit sharing expense accrual | ' | ' | $11,701 | ' |
EQUITYBASED_AND_OTHER_COMPENSA5
EQUITY-BASED AND OTHER COMPENSATION (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
employee | ||||
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Newcastle Officer | ' | ' | 1 | ' |
Profit Sharing Expense | $29,540 | $37,018 | $194,091 | $97,249 |
Principal Performance Payments | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Profit Sharing Expense | 3,726 | 4,154 | 24,097 | 11,068 |
Private Equity Funds | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Profit Sharing Expense | 0 | 262 | 2,135 | 672 |
Castles | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Profit Sharing Expense | -459 | 1 | 7,757 | 3,378 |
Liquid Hedge Funds | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Profit Sharing Expense | -3,578 | 4,544 | 35,458 | 11,431 |
Liquid Hedge Funds | Principal Performance Payments | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Profit Sharing Expense | ' | ' | 8,654 | ' |
Credit Hedge Funds | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Profit Sharing Expense | 20,371 | 19,710 | 71,074 | 46,488 |
Credit PE Funds | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Profit Sharing Expense | $9,480 | $8,347 | $53,570 | $24,212 |
Newcastle [Member] | Employee Stock Option [Member] | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Options in Affiliates based Compensation Arrangement , unvested and out of the money Forfeited in Period | ' | ' | 2,170 | ' |
Options in Affiliates based Compensation Arrangement, unvested and in the money, Forfeited in Period | ' | ' | 192,167 | ' |
New Residential | Employee Stock Option [Member] | ' | ' | ' | ' |
Recognized Profit Sharing Compensation | ' | ' | ' | ' |
Options in Affiliates based Compensation Arrangement , unvested and out of the money Forfeited in Period | ' | ' | 2,170 | ' |
Options in Affiliates based Compensation Arrangement, unvested and in the money, Forfeited in Period | ' | ' | 192,167 | ' |
EARNINGS_PER_SHARE_AND_DISTRIB2
EARNINGS PER SHARE AND DISTRIBUTIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
employee | employee | |||
Weighted average shares outstanding | ' | ' | ' | ' |
Class A shares outstanding | 237,470,346 | 217,293,696 | 231,019,933 | 207,521,553 |
Fully vested restricted Class A share units with dividend equivalent rights | 982,225 | 2,519,869 | 2,821,011 | 4,068,945 |
Fully vested restricted Class A shares | 952,016 | 828,211 | 909,641 | 706,787 |
Weighted average shares outstanding | 239,404,587 | 220,641,776 | 234,750,585 | 212,297,285 |
Basic net income (loss) per Class A share | ' | ' | ' | ' |
Net Income (Loss) Attributable to Class A Shareholders | $42,381 | $708 | $54,634 | ($23,923) |
Dilution in earnings due to RPUs treated as a participating security of Fortress Operating Group and fully vested restricted Class A share units with dividend equivalent rights treated as outstanding Fortress Operating Group units | 0 | -116 | 0 | -327 |
Dividend equivalents declared on non-vested restricted Class A shares and restricted Class A share units | -777 | -108 | -590 | -327 |
Net income (loss) available to Class A shareholders | 41,604 | 484 | 54,044 | -24,577 |
Weighted average shares outstanding | 239,404,587 | 220,641,776 | 234,750,585 | 212,297,285 |
Basic net income (loss) per Class A share (in dollars per share) | $0.17 | $0 | $0.23 | ($0.12) |
Weighted average shares outstanding | ' | ' | ' | ' |
Class A shares outstanding | 237,470,346 | 217,293,696 | 231,019,933 | 207,521,553 |
Fully vested restricted Class A share units with dividend equivalent rights | 982,225 | 2,519,869 | 2,821,011 | 4,068,945 |
Fully vested restricted Class A shares | 952,016 | 828,211 | 909,641 | 706,787 |
Fortress Operating Group units and fully vested RPUs exchangeable into Class A shares | 249,534,372 | 299,397,765 | 252,789,561 | 305,134,049 |
Class A restricted shares and Class A restricted share units granted to employees and directors (eligible for dividend and dividend equivalent payments) | 2,771,059 | 0 | 2,067,969 | 0 |
Class A restricted share units granted to employees (not eligible for dividend and dividend equivalent payments) | 10,381,148 | 0 | 9,954,355 | 0 |
Weighted average shares outstanding | 502,091,166 | 520,039,541 | 499,562,470 | 517,431,334 |
Diluted net income (loss) per Class A share | ' | ' | ' | ' |
Net Income (Loss) Attributable to Class A Shareholders | 42,381 | 708 | 54,634 | -23,923 |
Dilution in earnings due to RPUs treated as a participating security of Fortress Operating Group and fully vested restricted Class A share units with dividend equivalent rights treated as outstanding Fortress Operating Group units | 0 | -116 | 0 | -327 |
Dividend equivalents declared on non-vested restricted Class A shares and restricted Class A share units | -777 | -108 | -590 | -327 |
Add back Principalsb and othersb interests in loss of Fortress Operating Group, net of assumed corporate income taxes at enacted rates, attributable to Fortress Operating Group units and fully vested RPUs exchangeable into Class A shares (1) | 18,906 | -22,295 | 52,551 | -42,943 |
Net income (loss) available to Class A shareholders | $60,510 | ($21,811) | $106,595 | ($67,520) |
Weighted average shares outstanding | 502,091,166 | 520,039,541 | 499,562,470 | 517,431,334 |
Diluted net income (loss) per Class A share (in dollars per share) | $0.12 | ($0.04) | $0.21 | ($0.13) |
Number of Senior Employees Holding Ownership Interest in Operating Group Restricted Partnership Units | 1 | ' | 1 | ' |
Share Units | 14,766,136 | 16,426,317 | 15,761,068 | 19,212,189 |
EARNINGS_PER_SHARE_AND_DISTRIB3
EARNINGS PER SHARE AND DISTRIBUTIONS (Details 2) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||
Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
principal | employee | Restricted Class A shares (directors) | Restricted Class A shares (directors) | Restricted Class A shares (directors) | Restricted Class A shares (directors) | Restricted Class A shares (directors) | Restricted Class A share units fully vested (employees) | Restricted Class A share units fully vested (employees) | Restricted Class A share units fully vested (employees) | Restricted Class A share units fully vested (employees) | Restricted Class A share units fully vested (employees) | Restricted Class A share units nonvested (employees) | Restricted Class A share units nonvested (employees) | Restricted Class A share units nonvested (employees) | Restricted Class A share units nonvested (employees) | Restricted Class A share units nonvested (employees) | Fortress Operating Group RPUs (one senior employee) | Fortress Operating Group RPUs (one senior employee) | Fortress Operating Group RPUs (one senior employee) | Fortress Operating Group RPUs (one senior employee) | Fortress Operating Group RPUs (one senior employee) | Fortress Operating Group RPUs (one senior employee) | RSUs | Fortress Operating Group units (Principals and one senior employee) | Fortress Operating Group units (Principals and one senior employee) | Fortress Operating Group units (Principals and one senior employee) | Fortress Operating Group units (Principals and one senior employee) | Fortress Operating Group units (Principals and one senior employee) | Class A Shares | Class A Shares | Class A Shares | Class A Shares | Class A Shares | ||||||
Dividend paying shares and units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average dividend paying shares and units | ' | ' | 494,683,588 | 536,807,022 | 492,299,975 | 534,448,211 | ' | 952,016 | 828,211 | 909,641 | 722,413 | ' | 982,225 | 2,519,869 | 2,821,011 | 4,068,945 | ' | 5,744,629 | 6,434,147 | 4,759,829 | 6,667,917 | ' | ' | 0 | 10,333,334 | 3,255,189 | 13,652,069 | ' | ' | 249,534,372 | 299,397,765 | 249,534,372 | 301,815,314 | ' | 237,470,346 | 217,293,696 | 231,019,933 | 207,521,553 | ' |
Dividend paying shares and units | ' | ' | 494,869,650 | ' | 494,869,650 | ' | 485,143,841 | 955,744 | ' | 955,744 | ' | 828,211 | 21,851 | ' | 21,851 | ' | 555,646 | 5,744,629 | ' | 5,744,629 | ' | 6,434,147 | ' | 0 | ' | 0 | ' | 10,333,334 | ' | 249,534,372 | ' | 249,534,372 | ' | 249,534,372 | 238,613,054 | ' | 238,613,054 | ' | 217,458,131 |
Number of shares vested in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,300,000 | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected period for delivery after vesting pursuant to plan documents | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of senior employees exchanging holding ownership interests in the entity's operating group subsidiary for Class A Shares | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of FOG units and Class B shares exchanged for equal number of Class A shares | ' | 10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units Along with Class b Share Exchangeable for Each Class a Share | ' | ' | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares Exchanged for Each Unit Along with Class B Share | ' | ' | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Principals Contributing Class A Shares to Charitable Organizations | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Class A Shares Contributed by Principals to Charitable Organizations | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EARNINGS_PER_SHARE_AND_DISTRIB4
EARNINGS PER SHARE AND DISTRIBUTIONS (Details 3) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | 31-May-13 | Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
Restricted Class A share units | Restricted Class A share units | Restricted Class A share units | Fortress Operating Group RPU holders | Fortress Operating Group unit holders | Class A Shares | Class A Shares | Class A Shares | Class A Shares | Subsequent event | Subsequent event | ||
Restricted Class A share units | Class A Shares | |||||||||||
Dividends and distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends, Dividend Equivalent and Unit Distributions Declared in Prior Year | $31,997 | ' | ' | $0 | $1,272 | $30,725 | ' | ' | ' | $0 | ' | ' |
Dividends, Dividend Equivalent and Unit Distributions Declared and Paid in Current Year | 95,225 | 400 | 300 | 1,338 | 401 | 51,656 | 14,300 | ' | 14,200 | 41,830 | ' | ' |
Declared but not yet Paid | 3,255 | ' | ' | 0 | 0 | 3,255 | ' | ' | ' | 0 | 400 | 14,400 |
Total | $98,480 | ' | ' | $1,338 | $401 | $54,911 | ' | ' | ' | $41,830 | ' | ' |
Cash dividend declared (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.06 | $0.06 | ' | ' | $0.06 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | |
fund | |||
General Partner Liability | ' | ' | ' |
Number of private equity funds which fell into a negative equity position | 1 | ' | ' |
Amount of negative equity recorded | ' | $41,200,000 | ' |
Private Equity Fund and Credit PE Fund Capital Commitments | ' | ' | ' |
Aggregate remaining capital commitments to certain of the Fortress Funds | ' | 172,900,000 | ' |
Minimum Future Rentals | ' | ' | ' |
October 1 to December 31, 2013 | ' | 6,342,000 | ' |
2014 | ' | 24,068,000 | ' |
2015 | ' | 21,472,000 | ' |
2016 | ' | 19,919,000 | ' |
2017 | ' | 2,761,000 | ' |
2018 | ' | 402,000 | ' |
Thereafter | ' | 38,000 | ' |
Total | ' | 75,002,000 | ' |
Rent expense, including operating expense escalations | ' | $17,900,000 | $18,900,000 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Impairment determination | ' | ' | ' | ' | ' |
Impairment on direct and indirect investments | $380,000 | $720,000 | $1,107,000 | $875,000 | ' |
Unrealized losses on certain investments that have not been recorded as impairment for DE purposes | 2,800,000 | ' | 2,800,000 | ' | ' |
Unrealized gains on investments | 605,800,000 | ' | 605,800,000 | ' | ' |
Amount of net reversal of clawback reserve for DE purpose | ' | ' | -2,155,000 | ' | ' |
Clawback Reserve on Incentive Income for DE Purposes | ' | ' | ' | ' | ' |
Net Intrinsic Clawback (B) | 56,743,000 | ' | 56,743,000 | ' | ' |
Prior Year End Inception-to-Date Net DE Reserve | ' | ' | 61,219,000 | ' | ' |
Current Year-to-Date Gross DE Reserve | -1,544,000 | 0 | -3,367,000 | -6,436,000 | ' |
Current Year-to-Date Net DE Reserve | ' | ' | -2,155,000 | ' | ' |
Inception-to-Date Net DE Reserve | 59,064,000 | ' | 59,064,000 | ' | ' |
Embedded Incentive Income [Abstract] | ' | ' | ' | ' | ' |
Deferred Incentive Income Undistributed Gross | 903,500,000 | ' | 903,500,000 | ' | ' |
Deferred Incentive Income Undistributed Net of Intrinsic Clawback | 817,741,000 | ' | 817,741,000 | ' | 527,432,000 |
Gross undistributed incentive income recognized in distributable earnings | -5,973,000 | 46,012,000 | 185,858,000 | 107,956,000 | ' |
Fund II | ' | ' | ' | ' | ' |
Impairment determination | ' | ' | ' | ' | ' |
Amount of net reversal of clawback reserve for DE purpose | -1,000,000 | ' | -2,155,000 | ' | ' |
Clawback Reserve on Incentive Income for DE Purposes | ' | ' | ' | ' | ' |
Net Intrinsic Clawback (B) | 1,594,000 | ' | 1,594,000 | ' | ' |
Periods in Intrinsic Clawback | 20 | ' | 20 | ' | ' |
Prior Year End Inception-to-Date Net DE Reserve | ' | ' | 6,070,000 | ' | ' |
Current Year-to-Date Gross DE Reserve | ' | ' | -3,367,000 | ' | ' |
Current Year-to-Date Net DE Reserve | -1,000,000 | ' | -2,155,000 | ' | ' |
Inception-to-Date Net DE Reserve | 3,915,000 | ' | 3,915,000 | ' | ' |
Excess of the recorded DE reserve over the net intrinsic clawback | 3,300,000 | ' | 3,300,000 | ' | ' |
Fund III | ' | ' | ' | ' | ' |
Impairment determination | ' | ' | ' | ' | ' |
Amount of net reversal of clawback reserve for DE purpose | ' | ' | 0 | ' | ' |
Clawback Reserve on Incentive Income for DE Purposes | ' | ' | ' | ' | ' |
Net Intrinsic Clawback (B) | 45,108,000 | ' | 45,108,000 | ' | ' |
Periods in Intrinsic Clawback | 23 | ' | 23 | ' | ' |
Prior Year End Inception-to-Date Net DE Reserve | ' | ' | 45,108,000 | ' | ' |
Current Year-to-Date Gross DE Reserve | ' | ' | 0 | ' | ' |
Current Year-to-Date Net DE Reserve | ' | ' | 0 | ' | ' |
Inception-to-Date Net DE Reserve | 45,108,000 | ' | 45,108,000 | ' | ' |
FRID | ' | ' | ' | ' | ' |
Impairment determination | ' | ' | ' | ' | ' |
Amount of net reversal of clawback reserve for DE purpose | ' | ' | 0 | ' | ' |
Clawback Reserve on Incentive Income for DE Purposes | ' | ' | ' | ' | ' |
Net Intrinsic Clawback (B) | 10,041,000 | ' | 10,041,000 | ' | ' |
Periods in Intrinsic Clawback | 25 | ' | 25 | ' | ' |
Prior Year End Inception-to-Date Net DE Reserve | ' | ' | 10,041,000 | ' | ' |
Current Year-to-Date Gross DE Reserve | ' | ' | 0 | ' | ' |
Current Year-to-Date Net DE Reserve | ' | ' | 0 | ' | ' |
Inception-to-Date Net DE Reserve | 10,041,000 | ' | 10,041,000 | ' | ' |
Private Equity Castles [Member] | ' | ' | ' | ' | ' |
Embedded Incentive Income [Abstract] | ' | ' | ' | ' | ' |
Gross Additional Distributable Earnings on Exercise of in Money Options | 90,400,000 | ' | ' | ' | ' |
Net Additional Distributable Earnings on Exercise of in Money Options | $74,400,000 | ' | ' | ' | ' |
SEGMENT_REPORTING_Details_2
SEGMENT REPORTING (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Results of Operations | ' | ' | ' | ' | ' |
Deferred tax asset | $370,944 | ' | $370,944 | ' | $402,135 |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 136,642 | 115,146 | 397,454 | 347,548 | ' |
Incentive income | 42,239 | 65,196 | 356,792 | 164,244 | ' |
Segment Reporting Revenue | 178,881 | 180,342 | 754,246 | 511,792 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | 57,134 | 67,248 | 318,161 | 183,525 | ' |
Fund management distributable earnings (loss) | 53,410 | 63,094 | 294,064 | 172,458 | ' |
Pre-tax distributable earnings (loss) | 65,038 | 63,457 | 313,172 | 170,740 | ' |
Total segment assets | 2,569,312 | ' | 2,569,312 | ' | ' |
Private Equity Funds | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 34,405 | 30,004 | 101,126 | 89,410 | ' |
Incentive income | 1,544 | 708 | 9,181 | 8,252 | ' |
Segment Reporting Revenue | 35,949 | 30,712 | 110,307 | 97,662 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | 24,412 | 22,073 | 71,352 | 65,082 | ' |
Fund management distributable earnings (loss) | 24,412 | 22,073 | 71,352 | 65,082 | ' |
Pre-tax distributable earnings (loss) | 24,412 | 22,073 | 71,352 | 65,082 | ' |
Total segment assets | 93,732 | ' | 93,732 | ' | ' |
Castles | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 13,620 | 13,979 | 44,436 | 41,615 | ' |
Incentive income | 6,099 | 0 | 7,299 | 0 | ' |
Segment Reporting Revenue | 19,719 | 13,979 | 51,735 | 41,615 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | 7,679 | 6,450 | 22,332 | 19,650 | ' |
Fund management distributable earnings (loss) | 6,790 | 6,369 | 21,443 | 19,104 | ' |
Pre-tax distributable earnings (loss) | 6,790 | 6,369 | 21,443 | 19,104 | ' |
Total segment assets | 13,703 | ' | 13,703 | ' | ' |
Liquid Hedge Funds | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 30,634 | 18,176 | 79,380 | 57,537 | ' |
Incentive income | -27,387 | 11,664 | 97,324 | 21,394 | ' |
Segment Reporting Revenue | 3,247 | 29,840 | 176,704 | 78,931 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | -11,923 | 8,177 | 86,543 | 16,067 | ' |
Fund management distributable earnings (loss) | -10,730 | 7,388 | 77,890 | 14,488 | ' |
Pre-tax distributable earnings (loss) | -10,730 | 7,388 | 77,890 | 14,488 | ' |
Total segment assets | 90,022 | ' | 90,022 | ' | ' |
Credit Hedge Funds | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 25,481 | 24,747 | 75,435 | 76,319 | ' |
Incentive income | 44,194 | 35,839 | 140,840 | 92,183 | ' |
Segment Reporting Revenue | 69,675 | 60,586 | 216,275 | 168,502 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | 32,844 | 26,791 | 100,678 | 76,277 | ' |
Fund management distributable earnings (loss) | 28,940 | 23,526 | 86,845 | 67,363 | ' |
Pre-tax distributable earnings (loss) | 28,940 | 23,526 | 86,845 | 67,363 | ' |
Total segment assets | 120,846 | ' | 120,846 | ' | ' |
Credit PE Funds | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 23,669 | 21,438 | 71,218 | 63,992 | ' |
Incentive income | 17,789 | 16,985 | 102,148 | 42,415 | ' |
Segment Reporting Revenue | 41,458 | 38,423 | 173,366 | 106,407 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | 7,442 | 6,052 | 44,861 | 13,149 | ' |
Fund management distributable earnings (loss) | 7,318 | 6,033 | 44,139 | 13,121 | ' |
Pre-tax distributable earnings (loss) | 7,318 | 6,033 | 44,139 | 13,121 | ' |
Total segment assets | 30,634 | ' | 30,634 | ' | ' |
Logan Circle | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 8,833 | 6,802 | 25,859 | 18,675 | ' |
Incentive income | 0 | 0 | 0 | 0 | ' |
Segment Reporting Revenue | 8,833 | 6,802 | 25,859 | 18,675 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | -3,320 | -2,295 | -7,605 | -6,831 | ' |
Fund management distributable earnings (loss) | -3,320 | -2,295 | -7,605 | -6,831 | ' |
Pre-tax distributable earnings (loss) | -3,320 | -2,295 | -7,605 | -6,831 | ' |
Total segment assets | 32,866 | ' | 32,866 | ' | ' |
Principal Investments | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 0 | 0 | 0 | 0 | ' |
Incentive income | 0 | 0 | 0 | 0 | ' |
Segment Reporting Revenue | 0 | 0 | 0 | 0 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | 0 | 0 | 0 | 0 | ' |
Fund management distributable earnings (loss) | 0 | 0 | 0 | 0 | ' |
Pre-tax distributable earnings (loss) | 11,628 | 363 | 19,108 | -1,718 | ' |
Total segment assets | 1,707,074 | ' | 1,707,074 | ' | ' |
Unallocated | ' | ' | ' | ' | ' |
Segment revenues | ' | ' | ' | ' | ' |
Management fees | 0 | 0 | 0 | 0 | ' |
Incentive income | 0 | 0 | 0 | 0 | ' |
Segment Reporting Revenue | 0 | 0 | 0 | 0 | ' |
Fund management distributable earnings (loss) before Principal Performance Payments (B) | 0 | 0 | 0 | 131 | ' |
Fund management distributable earnings (loss) | 0 | 0 | 0 | 131 | ' |
Pre-tax distributable earnings (loss) | 0 | 0 | 0 | 131 | ' |
Total segment assets | $480,435 | ' | $480,435 | ' | ' |
SEGMENT_REPORTING_Details_3
SEGMENT REPORTING (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciling items between segment measures and GAAP measures: | ' | ' | ' | ' |
Fund management distributable earnings | $53,410 | $63,094 | $294,064 | $172,458 |
Investment income (loss) | 12,412 | 3,658 | 23,870 | 9,926 |
Interest expense | -784 | -3,295 | -4,762 | -11,644 |
Pre-tax distributable earnings | 65,038 | 63,457 | 313,172 | 170,740 |
Adjust incentive income | ' | ' | ' | ' |
Incentive income received from private equity funds and credit PE funds, subject to contingent repayment | -17,790 | -16,986 | -103,109 | -42,416 |
Incentive income received from third parties, subject to contingent repayment | 0 | -273 | 0 | -1,674 |
Incentive income accrued from private equity funds and credit PE funds, not subject to contingent repayment | 15,883 | 5,547 | 50,262 | 36,931 |
Incentive income received from private equity funds and credit PE funds, not subject to contingent repayment | 0 | -708 | -4,854 | -1,815 |
Incentive income from hedge funds, subject to annual performance achievement | 5,973 | -46,012 | -185,858 | -107,956 |
Incentive income received from the sale of shares related to options | -1,921 | 0 | -1,921 | 0 |
Reserve for clawback, gross (see discussion above) | -1,544 | 0 | -3,367 | -6,436 |
Adjust incentive income | 601 | -58,432 | -248,847 | -123,366 |
Adjust other income | ' | ' | ' | ' |
Distributions of earnings from equity method investees | -3,685 | -1,494 | -12,529 | -3,501 |
Earnings (losses) from equity method investees | 57,532 | 47,706 | 116,748 | 99,649 |
Gains (losses) on options in equity method investees | 3,488 | -6,219 | 27,233 | -1,962 |
Gains (losses) on other investments | -3,178 | 3,996 | 9,358 | 31,060 |
Impairment of investments (see discussion above) | 380 | 720 | 1,107 | 875 |
Adjust income from the receipt of options | 0 | 8,298 | 36,470 | 21,524 |
Adjust other income | 54,537 | 53,007 | 178,387 | 147,645 |
Adjust employee, Principal and director compensation | ' | ' | ' | ' |
Adjust employee, Principal and director equity-based compensation expense (including Castle options assigned) | -6,415 | -49,495 | -34,769 | -164,420 |
Adjust employee portion of incentive income from private equity funds accrued prior to the realization of incentive income | 555 | 0 | 1,210 | 2,316 |
Adjust employee, Principal and director compensation | -5,860 | -49,495 | -33,559 | -162,104 |
Adjust amortization of intangible assets and impairment of goodwill and intangible assets | -12 | -10 | -34 | -34 |
Adjust non-controlling interests related to Fortress Operating Group units | -57,221 | -3,845 | -104,653 | -15,332 |
Adjust tax receivable agreement liability | 0 | 0 | -7,739 | -6,935 |
Adjust income taxes | -14,702 | -3,974 | -42,093 | -34,537 |
Total adjustments | -22,657 | -62,749 | -258,538 | -194,663 |
Net Income (Loss) Attributable to Class A Shareholders | 42,381 | 708 | 54,634 | -23,923 |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | 58,804 | 5,958 | 111,421 | 20,698 |
Net Income (Loss) | $101,185 | $6,666 | $166,055 | ($3,225) |
SEGMENT_REPORTING_Details_4
SEGMENT REPORTING (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment assets | ' | ' | ' | ' | ' |
Total segment assets | $2,569,312 | ' | $2,569,312 | ' | ' |
Adjust equity investments from segment carrying amount | -42,059 | ' | -42,059 | ' | ' |
Adjust investments gross of employeesb and othersb portion | 38,982 | ' | 38,982 | ' | ' |
Adjust goodwill and intangible assets to cost | -22,744 | ' | -22,744 | ' | ' |
Accrued incentive income subject to annual performance achievement | -185,858 | ' | -185,858 | ' | ' |
Total assets (GAAP) | 2,357,633 | ' | 2,357,633 | ' | 2,161,493 |
Segment revenues | ' | ' | ' | ' | ' |
Segment revenues | 178,881 | 180,342 | 754,246 | 511,792 | ' |
Adjust management fees | 313 | 124 | 565 | 397 | ' |
Adjust incentive income | 601 | -58,432 | -248,847 | -123,686 | ' |
Adjust income from the receipt of options | 0 | 8,298 | 36,470 | 21,524 | ' |
Adjust other revenues (including expense reimbursements) | 52,224 | 51,191 | 157,014 | 142,202 | ' |
Total revenues (GAAP) | $232,019 | $181,523 | $699,448 | $552,229 | ' |
SEGMENT_REPORTING_Details_5
SEGMENT REPORTING (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | $3,489 | $4,972 | $10,060 | $11,684 |
Amortization | 12 | 10 | 34 | 34 |
Total depreciation and amortization | 3,501 | 4,982 | 10,094 | 11,718 |
Private Equity Funds | ' | ' | ' | ' |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | 393 | 717 | 1,132 | 1,546 |
Amortization | 0 | 0 | 0 | 0 |
Total depreciation and amortization | 393 | 717 | 1,132 | 1,546 |
Castles | ' | ' | ' | ' |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | 159 | 148 | 432 | 358 |
Amortization | 0 | 0 | 0 | 0 |
Total depreciation and amortization | 159 | 148 | 432 | 358 |
Liquid Hedge Funds | ' | ' | ' | ' |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | 582 | 752 | 1,561 | 1,760 |
Amortization | 0 | 0 | 0 | 0 |
Total depreciation and amortization | 582 | 752 | 1,561 | 1,760 |
Credit Hedge Funds | ' | ' | ' | ' |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | 1,416 | 2,010 | 4,173 | 4,605 |
Amortization | 0 | 0 | 0 | 0 |
Total depreciation and amortization | 1,416 | 2,010 | 4,173 | 4,605 |
Credit PE Funds | ' | ' | ' | ' |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | 89 | 108 | 238 | 309 |
Amortization | 0 | 0 | 0 | 0 |
Total depreciation and amortization | 89 | 108 | 238 | 309 |
Logan Circle | ' | ' | ' | ' |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | 68 | 67 | 192 | 268 |
Amortization | 12 | 10 | 34 | 34 |
Total depreciation and amortization | 80 | 77 | 226 | 302 |
Unallocated | ' | ' | ' | ' |
Fortress's depreciation and amortization expense by segment | ' | ' | ' | ' |
Depreciation | 782 | 1,170 | 2,332 | 2,838 |
Amortization | 0 | 0 | 0 | 0 |
Total depreciation and amortization | $782 | $1,170 | $2,332 | $2,838 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Subsequent events | ' | ' | ' | ' | ' | ' |
Equity Method Investments | ' | $1,263,392,000 | ' | $1,263,392,000 | ' | $1,211,684,000 |
Net unrealized gains (losses) | ' | 52,000 | -498,000 | 5,654,000 | -798,000 | ' |
Repayments of Related Party Debt | $89,500,000 | ' | ' | ' | ' | ' |
CONSOLIDATING_FINANCIAL_INFORM2
CONSOLIDATING FINANCIAL INFORMATION (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Senior employee | Fortress Operating Group Consolidated | Fortress Operating Group Consolidated | FOE II LP | FOE II LP | Fortress Operating Group Eliminations | Fortress Operating Group Eliminations | Fortress Investment Group LLC Consolidated (Other than FOG) | Fortress Investment Group LLC Consolidated (Other than FOG) | Elimination Adjustments | Elimination Adjustments | ||||
employee | |||||||||||||||
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $311,114 | $104,242 | $253,731 | $333,166 | ' | $292,676 | $103,362 | $1,411 | $787 | $0 | $0 | $17,027 | $93 | $0 | $0 |
Due from affiliates | 165,801 | 280,557 | ' | ' | ' | 164,285 | ' | 1,723 | ' | -207 | ' | 3,125 | ' | -3,125 | ' |
Investments | 1,263,392 | 1,211,684 | ' | ' | ' | 1,263,392 | ' | 175 | ' | -175 | ' | 550,886 | ' | -550,886 | ' |
Investments in options | 100,123 | 38,077 | ' | ' | ' | 100,123 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' |
Deferred tax asset | 370,944 | 402,135 | ' | ' | ' | 2,913 | ' | 0 | ' | 0 | ' | 368,031 | ' | 0 | ' |
Other assets | 146,259 | 124,798 | ' | ' | ' | 121,570 | ' | 461 | ' | 0 | ' | 24,228 | ' | 0 | ' |
Total assets (GAAP) | 2,357,633 | 2,161,493 | ' | ' | ' | 1,944,959 | ' | 3,770 | ' | -382 | ' | 963,297 | ' | -554,011 | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued compensation and benefits | 305,361 | 146,911 | ' | ' | ' | 303,238 | ' | 2,123 | ' | 0 | ' | 0 | ' | 0 | ' |
Due to affiliates | 343,495 | 357,407 | ' | ' | ' | 85,011 | ' | 207 | ' | -207 | ' | 261,609 | ' | -3,125 | ' |
Deferred incentive income | 287,182 | 231,846 | ' | ' | ' | 287,182 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' |
Debt obligations payable | 0 | 149,453 | ' | ' | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' |
Other liabilities | 99,850 | 59,226 | ' | ' | ' | 85,740 | ' | 145 | ' | 0 | ' | 13,965 | ' | 0 | ' |
Total Liabilities | 1,035,888 | 944,843 | ' | ' | ' | 761,171 | ' | 2,475 | ' | -207 | ' | 275,574 | ' | -3,125 | ' |
Commitments and Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Paid-in capital | 2,121,595 | 2,119,102 | ' | ' | ' | 5,697,315 | ' | 3,575 | ' | -175 | ' | 2,121,595 | ' | -5,700,715 | ' |
Retained earnings (accumulated deficit) | -1,431,944 | -1,486,578 | ' | ' | ' | -4,567,834 | ' | -2,280 | ' | 0 | ' | -1,431,944 | ' | 4,570,114 | ' |
Accumulated other comprehensive income (loss) | -1,928 | -2,634 | ' | ' | ' | -5,913 | ' | 0 | ' | 0 | ' | -1,928 | ' | 5,913 | ' |
Total Fortress shareholdersb equity | 687,723 | 626,471 | ' | ' | ' | 1,123,568 | ' | 1,295 | ' | -175 | ' | 687,723 | ' | -1,124,688 | ' |
Principalsb and othersb interests in equity of consolidated subsidiaries | 634,022 | 590,179 | ' | ' | ' | 60,220 | ' | 0 | ' | 0 | ' | 0 | ' | 573,802 | ' |
Total equity | 1,321,745 | 1,216,650 | ' | ' | ' | 1,183,788 | ' | 1,295 | ' | -175 | ' | 687,723 | ' | -550,886 | ' |
Total Liabilities and Equity | $2,357,633 | $2,161,493 | ' | ' | ' | $1,944,959 | ' | $3,770 | ' | ($382) | ' | $963,297 | ' | ($554,011) | ' |
Number of senior employees whose net income (loss) is attributable to interests in FOG and is included into the Net Income (loss) attributable to Class A Shareholders | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATING_FINANCIAL_INFORM3
CONSOLIDATING FINANCIAL INFORMATION (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Management fees: affiliates | $121,593 | $112,806 | $388,957 | $336,935 |
Management fees: non-affiliates | 15,361 | 10,762 | 45,531 | 32,534 |
Incentive income: affiliates | 40,934 | 5,976 | 103,176 | 38,994 |
Incentive income: non-affiliates | 1,907 | 788 | 4,770 | 1,564 |
Expense reimbursements: affiliates | 49,301 | 49,214 | 149,308 | 136,615 |
Expense reimbursements: non-affiliates | 1,904 | 977 | 4,752 | 2,864 |
Other revenues | 1,019 | 1,000 | 2,954 | 2,723 |
Total revenues (GAAP) | 232,019 | 181,523 | 699,448 | 552,229 |
Expenses | ' | ' | ' | ' |
Interest expense | 778 | 3,375 | 4,856 | 11,877 |
Compensation and benefits | 146,457 | 181,421 | 539,591 | 537,267 |
General, administrative and other | 33,315 | 31,004 | 99,970 | 93,365 |
Depreciation and amortization | 3,501 | 4,982 | 10,094 | 11,718 |
Total Expenses | 184,051 | 220,782 | 654,511 | 654,227 |
Other Income (Loss) | ' | ' | ' | ' |
Gains (losses) | 7,503 | -2,228 | 45,578 | 29,542 |
Tax receivable agreement liability adjustment | 0 | 0 | -7,739 | -6,935 |
Earnings (losses) from equity method investees | 60,508 | 52,034 | 125,515 | 110,417 |
Total Other Income (Loss) | 68,011 | 49,806 | 163,354 | 133,024 |
Income (Loss) Before Income Taxes | 115,979 | 10,547 | 208,291 | 31,026 |
Income tax benefit (expense) | -14,794 | -3,881 | -42,236 | -34,251 |
Net Income (Loss) | 101,185 | 6,666 | 166,055 | -3,225 |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | 58,804 | 5,958 | 111,421 | 20,698 |
Net Income (Loss) Attributable to Class A Shareholders | 42,381 | 708 | 54,634 | -23,923 |
Senior employee | ' | ' | ' | ' |
Other Income (Loss) | ' | ' | ' | ' |
Number of senior employees whose net income (loss) is attributable to interests in FOG and is included into the Net Income (loss) attributable to Class A Shareholders | ' | ' | 1 | ' |
Fortress Operating Group Consolidated | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Management fees: affiliates | ' | ' | 386,487 | ' |
Management fees: non-affiliates | ' | ' | 45,108 | ' |
Incentive income: affiliates | ' | ' | 103,176 | ' |
Incentive income: non-affiliates | ' | ' | 4,770 | ' |
Expense reimbursements: affiliates | ' | ' | 130,336 | ' |
Expense reimbursements: non-affiliates | ' | ' | 4,752 | ' |
Other revenues | ' | ' | 3,162 | ' |
Total revenues (GAAP) | ' | ' | 677,791 | ' |
Expenses | ' | ' | ' | ' |
Interest expense | ' | ' | 4,740 | ' |
Compensation and benefits | ' | ' | 518,177 | ' |
General, administrative and other | ' | ' | 98,768 | ' |
Depreciation and amortization | ' | ' | 10,050 | ' |
Total Expenses | ' | ' | 631,735 | ' |
Other Income (Loss) | ' | ' | ' | ' |
Gains (losses) | ' | ' | 45,583 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Earnings (losses) from equity method investees | ' | ' | 125,515 | ' |
Total Other Income (Loss) | ' | ' | 171,098 | ' |
Income (Loss) Before Income Taxes | ' | ' | 217,154 | ' |
Income tax benefit (expense) | ' | ' | -8,258 | ' |
Net Income (Loss) | ' | ' | 208,896 | ' |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | ' | ' | 6,768 | ' |
Net Income (Loss) Attributable to Class A Shareholders | ' | ' | 202,128 | ' |
FOE II LP | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Management fees: affiliates | ' | ' | 2,470 | ' |
Management fees: non-affiliates | ' | ' | 423 | ' |
Incentive income: affiliates | ' | ' | 0 | ' |
Incentive income: non-affiliates | ' | ' | 0 | ' |
Expense reimbursements: affiliates | ' | ' | 18,972 | ' |
Expense reimbursements: non-affiliates | ' | ' | 0 | ' |
Other revenues | ' | ' | 2 | ' |
Total revenues (GAAP) | ' | ' | 21,867 | ' |
Expenses | ' | ' | ' | ' |
Interest expense | ' | ' | 33 | ' |
Compensation and benefits | ' | ' | 21,414 | ' |
General, administrative and other | ' | ' | 1,201 | ' |
Depreciation and amortization | ' | ' | 44 | ' |
Total Expenses | ' | ' | 22,692 | ' |
Other Income (Loss) | ' | ' | ' | ' |
Gains (losses) | ' | ' | -5 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Earnings (losses) from equity method investees | ' | ' | 0 | ' |
Total Other Income (Loss) | ' | ' | -5 | ' |
Income (Loss) Before Income Taxes | ' | ' | -830 | ' |
Income tax benefit (expense) | ' | ' | 10 | ' |
Net Income (Loss) | ' | ' | -820 | ' |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | ' | ' | 0 | ' |
Net Income (Loss) Attributable to Class A Shareholders | ' | ' | -820 | ' |
Fortress Operating Group Eliminations | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Management fees: affiliates | ' | ' | 0 | ' |
Management fees: non-affiliates | ' | ' | 0 | ' |
Incentive income: affiliates | ' | ' | 0 | ' |
Incentive income: non-affiliates | ' | ' | 0 | ' |
Expense reimbursements: affiliates | ' | ' | 0 | ' |
Expense reimbursements: non-affiliates | ' | ' | 0 | ' |
Other revenues | ' | ' | 0 | ' |
Total revenues (GAAP) | ' | ' | 0 | ' |
Expenses | ' | ' | ' | ' |
Interest expense | ' | ' | 0 | ' |
Compensation and benefits | ' | ' | 0 | ' |
General, administrative and other | ' | ' | 0 | ' |
Depreciation and amortization | ' | ' | 0 | ' |
Total Expenses | ' | ' | 0 | ' |
Other Income (Loss) | ' | ' | ' | ' |
Gains (losses) | ' | ' | 0 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Earnings (losses) from equity method investees | ' | ' | 0 | ' |
Total Other Income (Loss) | ' | ' | 0 | ' |
Income (Loss) Before Income Taxes | ' | ' | 0 | ' |
Income tax benefit (expense) | ' | ' | 0 | ' |
Net Income (Loss) | ' | ' | 0 | ' |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | ' | ' | 0 | ' |
Net Income (Loss) Attributable to Class A Shareholders | ' | ' | 0 | ' |
Fortress Investment Group LLC Consolidated (Other than FOG) | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Management fees: affiliates | ' | ' | 0 | ' |
Management fees: non-affiliates | ' | ' | 0 | ' |
Incentive income: affiliates | ' | ' | 0 | ' |
Incentive income: non-affiliates | ' | ' | 0 | ' |
Expense reimbursements: affiliates | ' | ' | 0 | ' |
Expense reimbursements: non-affiliates | ' | ' | 0 | ' |
Other revenues | ' | ' | 3,423 | ' |
Total revenues (GAAP) | ' | ' | 3,423 | ' |
Expenses | ' | ' | ' | ' |
Interest expense | ' | ' | 3,716 | ' |
Compensation and benefits | ' | ' | 0 | ' |
General, administrative and other | ' | ' | 1 | ' |
Depreciation and amortization | ' | ' | 0 | ' |
Total Expenses | ' | ' | 3,717 | ' |
Other Income (Loss) | ' | ' | ' | ' |
Gains (losses) | ' | ' | 0 | ' |
Tax receivable agreement liability adjustment | ' | ' | -7,739 | ' |
Earnings (losses) from equity method investees | ' | ' | 96,655 | ' |
Total Other Income (Loss) | ' | ' | 88,916 | ' |
Income (Loss) Before Income Taxes | ' | ' | 88,622 | ' |
Income tax benefit (expense) | ' | ' | -33,988 | ' |
Net Income (Loss) | ' | ' | 54,634 | ' |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | ' | ' | 0 | ' |
Net Income (Loss) Attributable to Class A Shareholders | ' | ' | 54,634 | ' |
Intercompany Eliminations | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Management fees: affiliates | ' | ' | 0 | ' |
Management fees: non-affiliates | ' | ' | 0 | ' |
Incentive income: affiliates | ' | ' | 0 | ' |
Incentive income: non-affiliates | ' | ' | 0 | ' |
Expense reimbursements: affiliates | ' | ' | 0 | ' |
Expense reimbursements: non-affiliates | ' | ' | 0 | ' |
Other revenues | ' | ' | -3,633 | ' |
Total revenues (GAAP) | ' | ' | -3,633 | ' |
Expenses | ' | ' | ' | ' |
Interest expense | ' | ' | -3,633 | ' |
Compensation and benefits | ' | ' | 0 | ' |
General, administrative and other | ' | ' | 0 | ' |
Depreciation and amortization | ' | ' | 0 | ' |
Total Expenses | ' | ' | -3,633 | ' |
Other Income (Loss) | ' | ' | ' | ' |
Gains (losses) | ' | ' | 0 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Earnings (losses) from equity method investees | ' | ' | -96,655 | ' |
Total Other Income (Loss) | ' | ' | -96,655 | ' |
Income (Loss) Before Income Taxes | ' | ' | -96,655 | ' |
Income tax benefit (expense) | ' | ' | 0 | ' |
Net Income (Loss) | ' | ' | -96,655 | ' |
Principalsb and Othersb Interests in Income (Loss) of Consolidated Subsidiaries | ' | ' | 104,653 | ' |
Net Income (Loss) Attributable to Class A Shareholders | ' | ' | ($201,308) | ' |
CONSOLIDATING_FINANCIAL_INFORM4
CONSOLIDATING FINANCIAL INFORMATION (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | $101,185 | $6,666 | $166,055 | ($3,225) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' | ' | ' |
Depreciation and amortization | 3,501 | 4,982 | 10,094 | 11,718 |
Other amortization and accretion | ' | ' | 704 | 1,467 |
(Earnings) losses from equity method investees | -60,508 | -52,034 | -125,515 | -110,417 |
Distributions of earnings from equity method investees | ' | ' | 53,576 | 32,621 |
(Gains) losses | -7,503 | 2,228 | -45,578 | -29,542 |
Deferred incentive income | -15,883 | -5,547 | -50,262 | -36,931 |
Deferred tax (benefit) expense | 7,894 | -610 | 53,048 | 32,107 |
Adjustment of estimated forfeited non-cash compensation | ' | ' | 43 | -1,705 |
Options received from affiliates | ' | ' | -36,470 | -21,524 |
Tax receivable agreement liability adjustment | 0 | 0 | 7,739 | 6,935 |
Equity-based compensation | ' | ' | 28,648 | 162,372 |
Options in affiliates granted to employees | ' | ' | 7,757 | 3,378 |
Allowance for doubtful accounts | ' | ' | 590 | 485 |
Cash flows due to changes in | ' | ' | ' | ' |
Due from affiliates | ' | ' | -88,276 | -66,183 |
Other assets | ' | ' | 1,950 | 601 |
Accrued compensation and benefits | ' | ' | 204,718 | -4,276 |
Due to affiliates | ' | ' | 5,737 | 1,404 |
Deferred incentive income | ' | ' | 105,753 | 43,382 |
Other liabilities | ' | ' | 32,197 | 23,061 |
Net cash provided by (used in) operating activities | ' | ' | 332,508 | 45,728 |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Contributions to equity method investees | ' | ' | -25,885 | -52,573 |
Distributions of capital from equity method investees | ' | ' | 257,829 | 137,015 |
Proceeds from sale of direct investments | ' | ' | 9,951 | 0 |
Purchase of equity securities | ' | ' | -19,460 | 0 |
Purchase of fixed assets | ' | ' | -7,777 | -7,367 |
Net cash provided by (used in) investing activities | ' | ' | 214,658 | 77,075 |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Repayments of debt obligations | ' | ' | -149,453 | -80,722 |
Payment of deferred financing costs | ' | ' | -2,367 | 0 |
Issuance (purchase) of Class A shares (RSU settlements) | ' | ' | 0 | ' |
Capital contributions (distributions) | ' | ' | 0 | ' |
Dividends and dividend equivalents paid | ' | ' | -43,168 | -32,803 |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | ' | ' | 391 | 429 |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | ' | ' | -145,697 | -81,620 |
Net cash provided by (used in) financing activities | ' | ' | -340,294 | -202,238 |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | 206,872 | -79,435 |
Cash and Cash Equivalents, Beginning of Period | ' | ' | 104,242 | 333,166 |
Cash and Cash Equivalents, End of Period | 311,114 | 253,731 | 311,114 | 253,731 |
Fortress Operating Group Consolidated | ' | ' | ' | ' |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | ' | ' | 208,896 | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 10,050 | ' |
Other amortization and accretion | ' | ' | 704 | ' |
(Earnings) losses from equity method investees | ' | ' | -125,515 | ' |
Distributions of earnings from equity method investees | ' | ' | 53,576 | ' |
(Gains) losses | ' | ' | -45,583 | ' |
Deferred incentive income | ' | ' | -50,262 | ' |
Deferred tax (benefit) expense | ' | ' | 1,234 | ' |
Adjustment of estimated forfeited non-cash compensation | ' | ' | 43 | ' |
Options received from affiliates | ' | ' | -36,470 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Equity-based compensation | ' | ' | 28,648 | ' |
Options in affiliates granted to employees | ' | ' | 7,757 | ' |
Allowance for doubtful accounts | ' | ' | 590 | ' |
Cash flows due to changes in | ' | ' | ' | ' |
Due from affiliates | ' | ' | -69,626 | ' |
Other assets | ' | ' | 19,830 | ' |
Accrued compensation and benefits | ' | ' | 204,305 | ' |
Due to affiliates | ' | ' | -143,364 | ' |
Deferred incentive income | ' | ' | 105,753 | ' |
Other liabilities | ' | ' | 32,274 | ' |
Net cash provided by (used in) operating activities | ' | ' | 202,840 | ' |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Contributions to equity method investees | ' | ' | -25,885 | ' |
Distributions of capital from equity method investees | ' | ' | 257,829 | ' |
Proceeds from sale of direct investments | ' | ' | 9,951 | ' |
Purchase of equity securities | ' | ' | -19,460 | ' |
Purchase of fixed assets | ' | ' | -7,777 | ' |
Net cash provided by (used in) investing activities | ' | ' | 214,658 | ' |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Repayments of debt obligations | ' | ' | 0 | ' |
Payment of deferred financing costs | ' | ' | -2,367 | ' |
Issuance (purchase) of Class A shares (RSU settlements) | ' | ' | -61,016 | ' |
Capital contributions (distributions) | ' | ' | 57,616 | ' |
Dividends and dividend equivalents paid | ' | ' | -77,111 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | ' | ' | 391 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | ' | ' | -145,697 | ' |
Net cash provided by (used in) financing activities | ' | ' | -228,184 | ' |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | 189,314 | ' |
Cash and Cash Equivalents, Beginning of Period | ' | ' | 103,362 | ' |
Cash and Cash Equivalents, End of Period | 292,676 | ' | 292,676 | ' |
FOE II LP | ' | ' | ' | ' |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | ' | ' | -820 | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 44 | ' |
Other amortization and accretion | ' | ' | 0 | ' |
(Earnings) losses from equity method investees | ' | ' | 0 | ' |
Distributions of earnings from equity method investees | ' | ' | 0 | ' |
(Gains) losses | ' | ' | 5 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Deferred tax (benefit) expense | ' | ' | 0 | ' |
Adjustment of estimated forfeited non-cash compensation | ' | ' | 0 | ' |
Options received from affiliates | ' | ' | 0 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Equity-based compensation | ' | ' | 0 | ' |
Options in affiliates granted to employees | ' | ' | 0 | ' |
Allowance for doubtful accounts | ' | ' | 0 | ' |
Cash flows due to changes in | ' | ' | ' | ' |
Due from affiliates | ' | ' | -289 | ' |
Other assets | ' | ' | 149 | ' |
Accrued compensation and benefits | ' | ' | 413 | ' |
Due to affiliates | ' | ' | -2,317 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Other liabilities | ' | ' | 39 | ' |
Net cash provided by (used in) operating activities | ' | ' | -2,776 | ' |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Contributions to equity method investees | ' | ' | 0 | ' |
Distributions of capital from equity method investees | ' | ' | 0 | ' |
Proceeds from sale of direct investments | ' | ' | 0 | ' |
Purchase of equity securities | ' | ' | 0 | ' |
Purchase of fixed assets | ' | ' | 0 | ' |
Net cash provided by (used in) investing activities | ' | ' | 0 | ' |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Repayments of debt obligations | ' | ' | 0 | ' |
Payment of deferred financing costs | ' | ' | 0 | ' |
Issuance (purchase) of Class A shares (RSU settlements) | ' | ' | 0 | ' |
Capital contributions (distributions) | ' | ' | 3,400 | ' |
Dividends and dividend equivalents paid | ' | ' | 0 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | ' | ' | 0 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | ' | ' | 0 | ' |
Net cash provided by (used in) financing activities | ' | ' | 3,400 | ' |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | 624 | ' |
Cash and Cash Equivalents, Beginning of Period | ' | ' | 787 | ' |
Cash and Cash Equivalents, End of Period | 1,411 | ' | 1,411 | ' |
Fortress Operating Group Eliminations | ' | ' | ' | ' |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | ' | ' | 0 | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 0 | ' |
Other amortization and accretion | ' | ' | 0 | ' |
(Earnings) losses from equity method investees | ' | ' | 0 | ' |
Distributions of earnings from equity method investees | ' | ' | 0 | ' |
(Gains) losses | ' | ' | 0 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Deferred tax (benefit) expense | ' | ' | 0 | ' |
Adjustment of estimated forfeited non-cash compensation | ' | ' | 0 | ' |
Options received from affiliates | ' | ' | 0 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Equity-based compensation | ' | ' | 0 | ' |
Options in affiliates granted to employees | ' | ' | 0 | ' |
Allowance for doubtful accounts | ' | ' | 0 | ' |
Cash flows due to changes in | ' | ' | ' | ' |
Due from affiliates | ' | ' | -1,718 | ' |
Other assets | ' | ' | 0 | ' |
Accrued compensation and benefits | ' | ' | 0 | ' |
Due to affiliates | ' | ' | 1,718 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Other liabilities | ' | ' | 0 | ' |
Net cash provided by (used in) operating activities | ' | ' | 0 | ' |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Contributions to equity method investees | ' | ' | 0 | ' |
Distributions of capital from equity method investees | ' | ' | 0 | ' |
Proceeds from sale of direct investments | ' | ' | 0 | ' |
Purchase of equity securities | ' | ' | 0 | ' |
Purchase of fixed assets | ' | ' | 0 | ' |
Net cash provided by (used in) investing activities | ' | ' | 0 | ' |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Repayments of debt obligations | ' | ' | 0 | ' |
Payment of deferred financing costs | ' | ' | 0 | ' |
Issuance (purchase) of Class A shares (RSU settlements) | ' | ' | 0 | ' |
Capital contributions (distributions) | ' | ' | 0 | ' |
Dividends and dividend equivalents paid | ' | ' | 0 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | ' | ' | 0 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | ' | ' | 0 | ' |
Net cash provided by (used in) financing activities | ' | ' | 0 | ' |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | 0 | ' |
Cash and Cash Equivalents, Beginning of Period | ' | ' | 0 | ' |
Cash and Cash Equivalents, End of Period | 0 | ' | 0 | ' |
Fortress Investment Group LLC Consolidated (Other than FOG) | ' | ' | ' | ' |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | ' | ' | 54,634 | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 0 | ' |
Other amortization and accretion | ' | ' | 0 | ' |
(Earnings) losses from equity method investees | ' | ' | -96,655 | ' |
Distributions of earnings from equity method investees | ' | ' | 0 | ' |
(Gains) losses | ' | ' | 0 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Deferred tax (benefit) expense | ' | ' | 51,814 | ' |
Adjustment of estimated forfeited non-cash compensation | ' | ' | 0 | ' |
Options received from affiliates | ' | ' | 0 | ' |
Tax receivable agreement liability adjustment | ' | ' | 7,739 | ' |
Equity-based compensation | ' | ' | 0 | ' |
Options in affiliates granted to employees | ' | ' | 0 | ' |
Allowance for doubtful accounts | ' | ' | 0 | ' |
Cash flows due to changes in | ' | ' | ' | ' |
Due from affiliates | ' | ' | 149,616 | ' |
Other assets | ' | ' | -18,029 | ' |
Accrued compensation and benefits | ' | ' | 0 | ' |
Due to affiliates | ' | ' | -16,559 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Other liabilities | ' | ' | -116 | ' |
Net cash provided by (used in) operating activities | ' | ' | 132,444 | ' |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Contributions to equity method investees | ' | ' | -62,681 | ' |
Distributions of capital from equity method investees | ' | ' | 77,563 | ' |
Proceeds from sale of direct investments | ' | ' | 0 | ' |
Purchase of equity securities | ' | ' | 0 | ' |
Purchase of fixed assets | ' | ' | 0 | ' |
Net cash provided by (used in) investing activities | ' | ' | 14,882 | ' |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Repayments of debt obligations | ' | ' | -149,453 | ' |
Payment of deferred financing costs | ' | ' | 0 | ' |
Issuance (purchase) of Class A shares (RSU settlements) | ' | ' | 61,016 | ' |
Capital contributions (distributions) | ' | ' | 0 | ' |
Dividends and dividend equivalents paid | ' | ' | -41,955 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | ' | ' | 0 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | ' | ' | 0 | ' |
Net cash provided by (used in) financing activities | ' | ' | -130,392 | ' |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | 16,934 | ' |
Cash and Cash Equivalents, Beginning of Period | ' | ' | 93 | ' |
Cash and Cash Equivalents, End of Period | 17,027 | ' | 17,027 | ' |
Intercompany Eliminations | ' | ' | ' | ' |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | ' | ' | -96,655 | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 0 | ' |
Other amortization and accretion | ' | ' | 0 | ' |
(Earnings) losses from equity method investees | ' | ' | 96,655 | ' |
Distributions of earnings from equity method investees | ' | ' | 0 | ' |
(Gains) losses | ' | ' | 0 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Deferred tax (benefit) expense | ' | ' | 0 | ' |
Adjustment of estimated forfeited non-cash compensation | ' | ' | 0 | ' |
Options received from affiliates | ' | ' | 0 | ' |
Tax receivable agreement liability adjustment | ' | ' | 0 | ' |
Equity-based compensation | ' | ' | 0 | ' |
Options in affiliates granted to employees | ' | ' | 0 | ' |
Allowance for doubtful accounts | ' | ' | 0 | ' |
Cash flows due to changes in | ' | ' | ' | ' |
Due from affiliates | ' | ' | -166,259 | ' |
Other assets | ' | ' | 0 | ' |
Accrued compensation and benefits | ' | ' | 0 | ' |
Due to affiliates | ' | ' | 166,259 | ' |
Deferred incentive income | ' | ' | 0 | ' |
Other liabilities | ' | ' | 0 | ' |
Net cash provided by (used in) operating activities | ' | ' | 0 | ' |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Contributions to equity method investees | ' | ' | 62,681 | ' |
Distributions of capital from equity method investees | ' | ' | -77,563 | ' |
Proceeds from sale of direct investments | ' | ' | 0 | ' |
Purchase of equity securities | ' | ' | 0 | ' |
Purchase of fixed assets | ' | ' | 0 | ' |
Net cash provided by (used in) investing activities | ' | ' | -14,882 | ' |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Repayments of debt obligations | ' | ' | 0 | ' |
Payment of deferred financing costs | ' | ' | 0 | ' |
Issuance (purchase) of Class A shares (RSU settlements) | ' | ' | 0 | ' |
Capital contributions (distributions) | ' | ' | -61,016 | ' |
Dividends and dividend equivalents paid | ' | ' | 75,898 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - contributions | ' | ' | 0 | ' |
Principals' and others' interests in equity of consolidated subsidiaries - distributions | ' | ' | 0 | ' |
Net cash provided by (used in) financing activities | ' | ' | 14,882 | ' |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | 0 | ' |
Cash and Cash Equivalents, Beginning of Period | ' | ' | 0 | ' |
Cash and Cash Equivalents, End of Period | $0 | ' | $0 | ' |