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SEC Filings

10-K
DITECH HOLDING CORP filed this Form 10-K on 04/16/2019
Entire Document
 

15. Premises and Equipment, Net
Premises and equipment, net consist of the following (dollars in thousands):
 
 
Successor
 
 
Predecessor
 
Useful Life
(in years)
 
 
December 31, 2018
 
 
December 31, 2017
 
Computer software
 
$
74,050

 
 
$
246,271

 
3 - 7
Leasehold improvements and other
 
6,131

 
 
12,699

 
2 - 9
Computer hardware
 
2,154

 
 
33,154

 
3
Furniture and fixtures
 
165

 
 
7,812

 
3
Assets in development
 
1,755

 
 
2,008

 
 
Total premises and equipment
 
84,255

 
 
301,944

 
 
Less: accumulated depreciation and amortization
 
(17,995
)
 
 
(251,731
)
 
 
Premises and equipment, net
 
$
66,260

 
 
$
50,213

 
 
In connection with the adoption of fresh start accounting on February 9, 2018, the Company adjusted premises and equipment to fair value, which included an adjustment to increase computer software by $33.7 million to reflect the fair value of internally developed technology. With the exception of computer software, the net carrying value of the assets approximated fair value. Accordingly, the accumulated depreciation for each asset classification was netted against the gross asset amount to arrive at the gross asset balances under fresh start accounting. Refer to Note 2 for additional information regarding fresh start accounting adjustments.
The Company recorded depreciation and amortization expense for premises and equipment of $18.2 million, $3.6 million and $37.6 million, which includes amortization expense for computer software of $15.2 million, $3.2 million and $31.0 million, for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017, respectively. Unamortized computer software costs were $58.8 million and $38.7 million at December 31, 2018 and 2017, respectively.
16. Other Assets
Other assets consist of the following (in thousands):
 
 
Successor
 
 
Predecessor
 
 
December 31, 2018
 
 
December 31, 2017
Real estate owned, net
 
$
75,567

 
 
$
116,553

Deposits
 
21,191

 
 
2,432

Prepaid expenses
 
20,596

 
 
26,834

Derivative instruments
 
18,387

 
 
29,394

Margin receivable on derivative instruments
 
12,087

 
 

Clean-up Call Agreement inducement fee
 
11,022

 
 
29,256

Deferred debt issuance costs
 
3,279

 
 
21,341

Other
 
1,834

 
 
9,785

Total other assets
 
$
163,963

 
 
$
235,595

In connection with the adoption of fresh start accounting, the Company recorded adjustments resulting in an increase to other assets totaling $3.3 million at February 9, 2018, as further described in Note 2.

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