Business Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

The following table summarizes the final fair values of assets acquired and liabilities assumed as part of the ResCap acquisition:



Cash	$	—
MSRs (1)	401,314
Advances and match funded advances (1)	1,786,409
Premises and equipment	16,423
Receivables and other assets	2,989
Liability for indemnification obligations	(49,500		)
Other liabilities	(25,125		)
Total identifiable net assets	2,132,510
Goodwill	211,419
Total consideration	$	2,343,929

(1)

As of the acquisition date, the purchase of certain MSRs from ResCap was not complete pending the receipt of certain consents and court approvals. Subsequent to the acquisition, we obtained the required consents and approvals for a portion of these MSRs and paid an additional purchase price of $174.6 million to acquire the MSRs and related advances, including $54.2 million in 2014. The purchase price allocation has been revised to include the resulting adjustments to MSRs, advances and goodwill.

Summary of Post-Acquisition Results of Operations

The following table presents the revenues and earnings of the ResCap operations that are included in our Consolidated Statements of Operations from the acquisition date of February 15, 2013 through December 31, 2013:



Revenues	$	684,935
Net income	$	16,424

Summary of Pro Forma Results of Operations

The following table presents supplemental pro forma information for Ocwen for the year ended December 31, 2013 as if the ResCap Acquisition occurred on January 1, 2012. Pro forma adjustments include:


•	conforming servicing revenues to the revenue recognition policies followed by Ocwen;


•	conforming the accounting for MSRs to the valuation and amortization policies of Ocwen;


•	adjusting interest expense to eliminate the pre-acquisition interest expense of ResCap and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2012; and


•	reporting acquisition-related charges for professional services as if they had been incurred in 2012 rather than 2013.



	(Unaudited)
Revenues	$	2,086,010
Net income	$	285,302

Schedule of Reconciliation of Beginning and Ending Liability Balance for Termination Costs

The following table provides a reconciliation of the beginning and ending liability balances for these termination costs for the years ended December 31, 2013, 2014 and 2015:



	Employee termination benefits			Lease and other contract termination costs			Total
Liability balance as at December 31, 2012	$	—		$	4,891		$	4,891
Additions charged to operations
Servicing	15,901			—			15,901
Lending	651			—			651
Corporate Items and Other	4,131			—			4,131
	20,683			—			20,683
Amortization of discount	—			347			347
Payments	(15,867		)	(2,784		)	(18,651		)
Liability balance as at December 31, 2013	4,816			2,454			7,270
Additions charged to operations
Servicing	14,032			713			14,745
Lending	(114		)	—			(114		)
Corporate Items and Other	1,271			2,184			3,455
	15,189			2,897			18,086
Amortization of discount	—			148			148
Payments	(18,337		)	(3,260		)	(21,597		)
Liability balance as at December 31, 2014	1,668			2,239			3,907
Additions charged to operations
Servicing	2,432			—			2,432
Lending	—			—			—
Corporate Items and Other	28			433			461
	2,460			433			2,893
Amortization of discount	—			159			159
Payments	(3,415		)	(1,248		)	(4,663		)
Liability balance as at December 31, 2015	$	713		$	1,583		$	2,296