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Restatement of Previously Issued Consolidated Financial Statements | 6 Months Ended
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Jun. 30, 2014
Accounting Changes and Error Corrections [Abstract] |
Restatement of Previously Issued Consolidated Financial Statements | Note 1A — Restatement of Previously Issued Consolidated Financial Statements Restatement Subsequent to the issuance of our Original Form 10-K for the year ended December 31, 2013 and our Original Form 10-Q for the quarter ended March 31, 2014, we determined there was an error in the application of the interest method used to calculate the appropriate allocation between principal and interest in connection with the accounting for a financing liability related to the Rights to MSRs sold to HLSS. The error relates to the subsequent accounting for the financing liability and does not impact the initial accounting for the sale of Rights to MSRs to HLSS. As a result, the financial amounts noted below have been restated from amounts previously reported. Other In the unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2013, we revised Gains on loans held for sale, net within the Revenue section and Other, net within the Other income (expense) section from the amounts previously reported to correctly report gains on the sale of certain loans. As a result, certain As Reported amounts noted below have been revised from amounts previously reported. The following tables summarize the effect of these restatements on our previously reported amounts.
| Consolidated Balance Sheet as of December 31, 2013
| As Reported |  | Restatement |  | As Restated
Deferred tax assets, net | $ | 116,558 |  |  | $ | (987 | ) |  | $ | 115,571 |
Financing liabilities | 1,284,229 |  |  | (17,256 | ) |  | 1,266,973 |
Retained earnings | 986,694 |  |  | 16,269 |  |  | 1,002,963 |
Total stockholders’ equity | 1,796,322 |  |  | 16,269 |  |  | 1,812,591 |
| Consolidated Statement of Operations for the Three Months Ended June 30, 2013
| As Reported |  | Restatement |  | As Restated
Interest expense | $ | (99,868 | ) |  | $ | (13,352 | ) |  | $ | (113,220 | )
Total other expense, net (1) | (67,659 | ) |  | (28,199 | ) |  | (95,858 | )
Income before income taxes | 87,510 |  |  | (13,352 | ) |  | 74,158 |
Income tax expense | 10,789 |  |  | (2,293 | ) |  | 8,496 |
Net income | 76,721 |  |  | (11,059 | ) |  | 65,662 |
Net income attributable to Ocwen stockholders | 76,721 |  |  | (11,059 | ) |  | 65,662 |
Net income attributable to Ocwen common stockholders | 74,116 |  |  | (11,059 | ) |  | 63,057 |
Earnings per share attributable to Ocwen common stockholders |  |  |  |  |
Basic | $ | 0.55 |  |  | $ | (0.09 | ) |  | $ | 0.46 |
Diluted | $ | 0.53 |  |  | $ | (0.08 | ) |  | $ | 0.45 |
| Consolidated Statement of Operations for the Six Months Ended June 30, 2013
| As Reported |  | Restatement |  | As Restated
Interest expense | $ | (193,284 | ) |  | $ | (9,395 | ) |  | $ | (202,679 | )
Total other expense, net (1) | (177,533 | ) |  | (25,665 | ) |  | (203,198 | )
Income before income taxes | 138,845 |  |  | (9,395 | ) |  | 129,450 |
Income tax expense | 16,977 |  |  | (2,098 | ) |  | 14,879 |
Net income | 121,868 |  |  | (7,297 | ) |  | 114,571 |
Net income attributable to Ocwen stockholders | 121,868 |  |  | (7,297 | ) |  | 114,571 |
Net income attributable to Ocwen common stockholders | 116,692 |  |  | (7,297 | ) |  | 109,395 |
Earnings per share attributable to Ocwen common stockholders |  |  |  |  |
Basic | $ | 0.86 |  |  | $ | (0.05 | ) |  | $ | 0.81 |
Diluted | $ | 0.84 |  |  | $ | (0.06 | ) |  | $ | 0.78 |
(1) | In the unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2013, we revised Gains on loans held for sale, net within the Revenue section and Other, net within the Other income (expense) section from the amounts previously reported to correctly report gains on the sale of certain loans. These revisions increased Gains on loans held for sale, net by $14.8 million and $16.3 million for the three and six months ended June 30, 2013, respectively, with a corresponding decrease to Other, net. These revisions did not impact the As Reported Income before income tax or Net income for the periods presented.
| Consolidated Statement of Comprehensive Income for the Three Months Ended June 30, 2013
| As Reported |  | Restatement |  | As Restated
Net Income | $ | 76,721 |  |  | $ | (11,059 | ) |  | $ | 65,662 |
Comprehensive income | 75,027 |  |  | (11,059 | ) |  | 63,968 |
Comprehensive income attributable to Ocwen stockholders | 75,027 |  |  | (11,059 | ) |  | 63,968 |
| Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2013
| As Reported |  | Restatement |  | As Restated
Net Income | $ | 121,868 |  |  | $ | (7,297 | ) |  | $ | 114,571 |
Comprehensive income | 116,495 |  |  | (7,297 | ) |  | 109,198 |
Comprehensive income attributable to Ocwen stockholders | 116,495 |  |  | (7,297 | ) |  | 109,198 |
| Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2013
| As Reported |  | Restatement |  | As Restated
Net Income | $ | 121,868 |  |  | $ | (7,297 | ) |  | $ | 114,571 |
| Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2013
| As Reported |  | Restatement |  | As Restated
Net income | $ | 121,868 |  |  | $ | (7,297 | ) |  | $ | 114,571 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
Decrease in deferred tax assets, net | 130 |  |  | (2,098 | ) |  | (1,968 | )
Net cash provided by operating activities | 877,027 |  |  | (9,395 | ) |  | 867,632 |
Repayments of other secured borrowings | (5,555,805 | ) |  | 9,395 |  |  | (5,546,410 | )
Net cash provided by financing activities | 846,331 |  |  | 9,395 |  |  | 855,726 |

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22595-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e30840-122693 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N + Details
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