XML 38 R22.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Equity | 12 Months Ended
--- | ---
Dec. 31, 2017
Equity [Abstract] |
Equity | Equity The following table provides a summary of changes to accumulated other comprehensive income by component for the years ended December 31, 2017 and 2016. Table 15.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Years Ended December 31,
|  | 2017 |  | 2016
(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 |  | $ | 115,873 |  |  | $ | (44,020 | ) |  | $ | 139,356 |  |  | $ | (47,363 | )
Other comprehensive income (loss) before reclassifications (1) |  | 22,864 |  |  | 1,022 |  |  | (2,316 | ) |  | 3,271 |
Amounts reclassified from other accumulated comprehensive income |  | (10,536 | ) |  | 45 |  |  | (21,167 | ) |  | 72 |
Net current-period other comprehensive income (loss) |  | 12,328 |  |  | 1,067 |  |  | (23,483 | ) |  | 3,343 |
Balance at End of Period |  | $ | 128,201 |  |  | $ | (42,953 | ) |  | $ | 115,873 |  |  | $ | (44,020 | )
(1) | Amounts presented for net unrealized gains (losses) on available-for-sale securities are net of tax benefit (provision) of zero and $1 million for the years ended December 31, 2017 and 2016, respectively.
The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 and 2016. Table 15.2 – Reclassifications Out of Accumulated Other Comprehensive Income
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Years Ended December 31,
(In Thousands) |  | Income Statement |  | 2017 |  | 2016
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 1,012 |  |  | $ | 368 |
Gain on sale of AFS securities |  | Realized gains, net |  | (11,548 | ) |  | (21,535 | )
|  |  |  | $ | (10,536 | ) |  | $ | (21,167 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 45 |  |  | $ | 72 |
|  |  |  | $ | 45 |  |  | $ | 72 |
(1) | For the year ended December 31, 2017, other-than-temporary impairments were $1 million, of which $1 million were recognized through our consolidated statements of income and $0.4 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. For the year ended December 31, 2016, other-than-temporary impairments were $3 million, of which $0.4 million were recognized through our consolidated statements of income, and $3 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet.
Earnings per Common Share The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2017, 2016, and 2015. Table 15.3 – Basic and Diluted Earnings per Common Share
|  | Years Ended December 31,
(In Thousands, except Share Data) |  | 2017 |  | 2016 |  | 2015
Basic Earnings per Common Share: |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 140,406 |  |  | $ | 131,252 |  |  | $ | 102,088 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (3,632 | ) |  | (3,742 | ) |  | (2,806 | )
Net income allocated to common shareholders |  | $ | 136,774 |  |  | $ | 127,510 |  |  | $ | 99,282 |
Basic weighted average common shares outstanding |  | 76,792,957 |  |  | 76,747,047 |  |  | 82,945,103 |
Basic Earnings per Common Share |  | $ | 1.78 |  |  | $ | 1.66 |  |  | $ | 1.20 |
Diluted Earnings per Common Share: |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 140,406 |  |  | $ | 131,252 |  |  | $ | 102,088 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (3,836 | ) |  | (4,035 | ) |  | (2,677 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 26,898 |  |  | 23,862 |  |  | — |
Net income allocated to common shareholders |  | $ | 163,468 |  |  | $ | 151,079 |  |  | $ | 99,411 |
Weighted average common shares outstanding |  | 76,792,957 |  |  | 76,747,047 |  |  | 82,945,103 |
Net effect of dilutive equity awards |  | 185,383 |  |  | 28,435 |  |  | 1,573,292 |
Net effect of assumed convertible notes conversion to common shares |  | 24,996,668 |  |  | 21,133,608 |  |  | — |
Diluted weighted average common shares outstanding |  | 101,975,008 |  |  | 97,909,090 |  |  | 84,518,395 |
Diluted Earnings per Common Share |  | $ | 1.60 |  |  | $ | 1.54 |  |  | $ | 1.18 |
We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. 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. During the year ended December 31, 2017, certain of our convertible notes were determined to be dilutive and were included in the calculation of diluted EPS under the "if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator. For the years ended December 31, 2017 and 2016, no common shares related to the assumed conversion of our convertible notes were antidilutive and excluded from the calculation of diluted earnings per share. For the year ended December 31, 2015, 21,292,309 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 years ended December 31, 2017, 2016, and 2015, the number of outstanding equity awards that were antidilutive totaled 5,843, zero, and 103,253, respectively. Stock Repurchases In February 2016, our Board of Directors approved an authorization for the repurchase of up to $100 million of our common stock and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization replaced all previous share repurchase plans and has no expiration date. During the year ended December 31, 2017, we repurchased 610,342 shares of common stock pursuant to this authorization for $9 million. At December 31, 2017, approximately $77 million of this current authorization remained available for the repurchase of shares of our common stock. During the period between December 31, 2017 and February 26, 2018, we repurchased 1,040,829 shares of our common stock pursuant to this authorization for $16 million. In February 2018, our Board of Directors approved an authorization for the repurchase of an additional $39 million of our common stock, increasing the total amount authorized for repurchases of common stock to $100 million, and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. As noted above, this authorization increased the previous share repurchase authorization approved in February 2016 and has no expiration date. This repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this authorization, shares or securities may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. At February 26, 2018, approximately $100 million of this current authorization remained available for repurchases of shares of our common stock. Like other investments we may make, any repurchases of our common stock or debt securities under this authorization would reduce our available capital described above.

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

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 310 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707 Reference 2: 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 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)) -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 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: 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(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: 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(31)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: 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 8: 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(30)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 9: 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 10: 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)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 11: 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 12: 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 Reference 13: 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 14: 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 15: 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 16: 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 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration