Quarterly report pursuant to Section 13 or 15(d)

Payables and Other Liabilities

v3.21.2
Payables and Other Liabilities
6 Months Ended
Jun. 30, 2021
Payables and Accruals [Abstract]  
Payables and Other Liabilities
19.
Payables and Other Liabilities
Payables and other liabilities consisted of the following (in thousands):
 
    
June 30, 2021
         
December 31, 2020
 
    
Successor
         
Predecessor
 
Accrued compensation expense
  
$
131,831
   
 
   $ 150,214  
Accrued liabilities
  
 
97,902
   
 
     83,427  
Lease liabilities
  
 
64,496
   
 
     48,250  
Deferred tax liability, net
  
 
28,455
   
 
     —    
GNMA reverse mortgage
buy-out
payable
  
 
32,607
   
 
     32,317  
Liability for loans eligible for repurchase from GNMA
  
 
30,027
   
 
     42,148  
Derivative liabilities
  
 
19,329
   
 
     20,722  
Warrant liability
  
 
19,261
   
 
     —    
Estimate of claim losses
  
 
11,839
   
 
     8,609  
Deferred purchase price liabilities
  
 
44,473
   
 
     3,842  
Repurchase reserves
  
 
8,515
   
 
     10,529  
    
 
 
        
 
 
 
Total payables and other liabilities
  
$
488,735
         $ 400,058  
    
 
 
        
 
 
 
Warrants
Prior to the Business Combination, Replay issued 28,750,000
units, consisting of one ordinary share and
one-half
of one redeemable warrant (each, a “Public Warrant” or “Warrant”), resulting in 14,375,000 Public Warrants.
Each Warrant is now exercisable for a share of FoA Class A Common Stock. As of June 30, 2021 (Successor), there were
 
14,375,000
Public Warrants outstanding.
The
W
arrants will expire April 1, 2026, five years after the completion of the Business Combination. The Company may call the
W
arrants for redemption:
 
   
in whole and note in part;
 
   
at a price of $0.01 per warrant;
 
   
upon a minimum of 30 days’ prior written notice of redemption;
 
   
if, and only if, the last reported closing price of the Class A Common Stock equals or exceeds $18.00 per share for any 20 trading days within a
30-trading
day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and
 
Each Warrant entitles the holder to purchase one ordinary share at a price of $11.50 per share, subject to adjustment for reorganization and/or extraordinary dividends event, as described in the warrant agreement.
If the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the warrants to do so on a “cashless basis,” as described in the warrant agreement.
 
The Company has determined that the Warrants are subject to treatment as a liability. As of the Closing of the Business Combination on April 1, 2021 and as of June 30, 2021 (Successor), the Warrants had a fair value of $18.0 million and $19.3 million,
respectively. These liability-classified Public Warrants are out of the money and thus have no impact on diluted EPS.