XML 105 R23.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Equity | 9 Months Ended
--- | ---
Sep. 30, 2014
Equity | Note 16. Equity The following table provides a summary of changes to accumulated other comprehensive income by component for the three and nine months ended September 30, 2014 and 2013. Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended September 30, 2014 |  |  | Three Months Ended September 30, 2013 |
(In Thousands) |  | Net unrealized gains on available-for-sale securities |  |  | Net unrealized losses on interest rate agreements accounted for as cash flow hedges |  |  | Net unrealized gains on available-for-sale securities |  |  | Net unrealized losses on interest rate agreements accounted for as cash flow hedges |
Balance at beginning of period |  | $ | 197,542 |  |  | $ | (29,985) |  |  | $ | 145,349 |  |  | $ | (27,066) |
Other comprehensive income (loss) before reclassifications |  |  | 1,849 |  |  |  | (3,258) |  |  |  | (633) |  |  |  | 4,018 |
Amounts reclassified from other accumulated comprehensive income |  |  | (6,409) |  |  |  | 32 |  |  |  | (6,962) |  |  |  | 62 |
Net current-period other comprehensive (loss) income |  |  | (4,560) |  |  |  | (3,226) |  |  |  | (7,595) |  |  |  | 4,080 |
Balance at End of Period |  | $ | 192,982 |  |  | $ | (33,211) |  |  | $ | 137,754 |  |  | $ | (22,986) |
|  | Nine Months Ended September 30, 2014 |  |  | Nine Months Ended September 30, 2013 |
(In Thousands) |  | Net unrealized gains on available-for-sale securities |  |  | Net unrealized losses on interest rate agreements accounted for as cash flow hedges |  |  | Net unrealized gains on available-for-sale securities |  |  | Net unrealized losses on interest rate agreements accounted for as cash flow hedges |
Balance at beginning of period |  | $ | 164,654 |  |  | $ | (15,888) |  |  | $ | 186,580 |  |  | $ | (48,248) |
Other comprehensive income (loss) before reclassifications |  |  | 35,078 |  |  |  | (17,454) |  |  |  | (29,615) |  |  |  | 25,043 |
Amounts reclassified from other accumulated comprehensive income |  |  | (6,750) |  |  |  | 131 |  |  |  | (19,211) |  |  |  | 219 |
Net current-period other comprehensive (loss) income |  |  | 28,328 |  |  |  | (17,323) |  |  |  | (48,826) |  |  |  | 25,262 |
Balance at End of Period |  | $ | 192,982 |  |  | $ | (33,211) |  |  | $ | 137,754 |  |  | $ | (22,986) |
The following table provides a summary of reclassifications out of accumulated other comprehensive income for three and nine months ended September 30, 2014 and 2013. Reclassifications Out of Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Amount reclassified from accumulated other comprehensive income Three Months Ended September 30, |
(In Thousands) |  | Income Statement |  | 2014 |  |  | 2013 |
Net realized gains (losses) on AFS securities |  |  |  |  |  |  |  |  |  |
Other than temporary impairment |  | Other market valuations, net |  | $ | 188 |  |  | $ | - |
Gain on sale of AFS securities |  | Realized gains, net |  |  | (6,597) |  |  |  | (6,962) |
|  |  |  | $ | (6,409) |  |  | $ | (6,962) |
Net realized gains on interest rate agreements designated as cash flow hedges |  |  |  |  |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 32 |  |  | $ | 62 |
|  |  |  | $ | 32 |  |  | $ | 62 |
|  | Affected Line Item in the |  | Amount reclassified from accumulated other comprehensive income Nine Months Ended September 30, |
(In Thousands) |  | Income Statement |  | 2014 |  |  | 2013 |
Net realized gains (losses) on AFS securities |  |  |  |  |  |  |  |  |  |
Other than temporary impairment |  | Other market valuations, net |  | $ | 565 |  |  | $ | (124) |
Gain on sale of AFS securities |  | Realized gains, net |  |  | (7,315) |  |  |  | (19,087) |
|  |  |  | $ | (6,750) |  |  | $ | (19,211) |
Net realized gains on interest rate agreements designated as cash flow hedges |  |  |  |  |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 131 |  |  | $ | 219 |
|  |  |  | $ | 131 |  |  | $ | 219 |
Earnings Per Common Share The following table provides the basic and diluted earnings per common share computations for the three and nine months ended September 30, 2014 and 2013. Basic and Diluted Earnings Per Common Share
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(In Thousands, Except Share Data) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Basic Earnings Per Common Share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 45,097 |  |  | $ | 21,929 |  |  | $ | 73,447 |  |  | $ | 148,112 |
Less: Dividends and undistributed earnings allocated to participating securities |  |  | (1,054) |  |  |  | (565) |  |  |  | (1,819) |  |  |  | (4,209) |
Net income allocated to common shareholders |  | $ | 44,043 |  |  | $ | 21,364 |  |  | $ | 71,628 |  |  | $ | 143,903 |
Basic weighted average common shares outstanding |  |  | 83,017,534 |  |  |  | 82,201,473 |  |  |  | 82,722,079 |  |  |  | 81,888,231 |
Basic Earnings Per Common Share |  | $ | 0.53 |  |  | $ | 0.26 |  |  | $ | 0.87 |  |  | $ | 1.76 |
Diluted Earnings Per Common Share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 45,097 |  |  | $ | 21,929 |  |  | $ | 73,447 |  |  | $ | 148,112 |
Less: Dividends and undistributed earnings allocated to participating securities |  |  | (756) |  |  |  | (565) |  |  |  | (1,784) |  |  |  | (3,030) |
Add back: Interest expense on convertible notes |  |  | 3,855 |  |  |  | - |  |  |  | - |  |  |  | 8,790 |
Net income allocated to common shareholders |  | $ | 48,196 |  |  | $ | 21,364 |  |  | $ | 71,663 |  |  | $ | 153,872 |
Weighted average common shares outstanding |  |  | 83,017,534 |  |  |  | 82,201,473 |  |  |  | 82,722,079 |  |  |  | 81,888,231 |
Net effect of dilutive equity awards |  |  | 2,113,248 |  |  |  | 2,220,566 |  |  |  | 2,309,051 |  |  |  | 2,292,451 |
Net effect of assumed convertible notes conversion to common shares |  |  | 11,825,450 |  |  |  | - |  |  |  | - |  |  |  | 9,053,183 |
Diluted weighted average common shares outstanding |  |  | 96,956,232 |  |  |  | 84,422,039 |  |  |  | 85,031,130 |  |  |  | 93,233,865 |
Diluted Earnings Per Common Share |  | $ | 0.50 |  |  | $ | 0.25 |  |  | $ | 0.84 |  |  | $ | 1.65 |
For the three and nine months ended September 30, 2014, there were 2,113,248 and 2,309,051 of dilutive equity awards, respectively, determined under the two-class method. For the three and nine months ended September 30, 2013, there were 2,220,566 and 2,292,451 of dilutive equity awards, respectively, determined under the two-class method. We included participating securities in the calculation of diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. For the three and nine months ended September 30, 2014, common shares related to the assumed conversion of the convertible notes, totaling 11,825,450 and zero, respectively, were included in the calculation of diluted earnings per share. For the three and nine months ended September 30, 2013, common shares related to the assumed conversion of the convertible notes, totaling zero and 9,053,183, respectively, were included in the calculation of the diluted earnings per share. For the nine months ended September 30, 2014, as well as for the three months ended September 30, 2013, 11,825,450 common shares related to the assumed conversion of the convertible notes were antidilutive and were excluded in the calculation of diluted earnings per share. For the three months ended September 30, 2014 and 2013, the number of outstanding equity awards that were antidilutive totaled 57,514 and 190,627, respectively. For the nine months ended September 30, 2014 and 2013, the number of outstanding equity awards that were antidilutive totaled 66,129 and 244,174 respectively, under the two-class method. There were no other participating securities during these periods. Stock Repurchases We announced a stock repurchase authorization in November 2007 for the repurchase of up to 5,000,000 common shares. This plan replaced all previous share repurchase plans and has no expiration date. During the nine months ended September 30, 2014, there were no shares acquired under the plan. At September 30, 2014, there remained 4,005,985 shares available for repurchase under this plan.

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration