CLOs and Consolidated Variable Interest Entities (Tables)

The table below represents the assets and liabilities of the consolidated CLOs that are included in the Company’s consolidated balance sheet as of the dates indicated:



	September 30, 2013		December 31, 2012
Assets:
Restricted cash	$	115,129	$	75,105
Investment in loans	1,334,310		741,743
Investment in trading securities	18,997		18,970
Due from brokers	9,280		9,034
Accrued interest receivable	4,347		6,660
Deferred debt issuance costs	9,574		—
Other assets	107		148
Total assets	$	1,491,744	$	851,660

Liabilities:
Notes payable	$	1,191,623	$	571,751
Due to brokers	51,156		43,396
Accrued interest payable	5,959		4,858
Other liabilities	2,193		305
Total liabilities	$	1,250,931	$	620,310

The following table represents revenue and expenses of the consolidated CLOs included in the Company’s consolidated statements of operations for the periods indicated:



	Nine months ended September 30, 2013			Nine months ended September 30, 2012		Three months ended September 30, 2013			Three months ended September 30, 2012
Income:
Realized gain (loss) trading securities	$	—		$	472	$	—		$	472
Realized gain (loss) loans	(16,550		)	—		(10,385		)	(930		)
Unrealized gain (loss) loans	(2,071		)	11,660		1,499			10,900
Interest income	52,096			38,288		20,142			13,362
Total income	$	33,475		$	50,420	$	11,256		$	23,804

Expenses:
Interest expense	$	33,106		$	23,758	$	12,386		$	5,910
Other expense	915			1,432		397			273
Total expense	$	34,021		$	25,190	$	12,783		$	6,183

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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