SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2013

SEGMENTS

Schedule of segment operating results

	Year Ended December 31,
	2013			2012			2011
	Segment Basis			Segment Basis			Consolidated Properties			Real Estate Affiliates			Segment Basis
	(In thousands)
Master Planned Communities
Land sales	$	251,217		$	182,643		$	114,610		$	46,773		$	161,383
Builder price participation		9,356			5,747			3,816			1,108			4,924
Minimum rents		781			576			659			14			673
Other land revenues		13,416			18,073			13,133			3,924			17,057
Total revenues		274,770			207,039			132,218			51,819			184,037
Cost of sales – land		124,040			89,298			70,108			23,932			94,040
Land sales operations		30,826			32,817			24,533			7,432			31,965
Land sales real estate and business taxes		7,588			7,558			7,713			1,906			9,619
Depreciation and amortization		32			72			2			46			48
Interest income		(16	)		(45	)		(144	)		(364	)		(508	)
Interest expense (*)		(18,678	)		(14,598	)		(11,920	)		2,132			(9,788	)
Total expenses		143,792			115,102			90,292			35,084			125,376
Venture partner share of The Woodlands EBT		—			—			—			(7,949	)		(7,949	)
MPC EBT		130,978			91,937			41,926			8,786			50,712
Operating Assets
Minimum rents		80,124			81,140			69,602			2,803			72,405
Tenant recoveries		20,901			23,210			19,193			1,061			20,254
Resort and conference center revenues		39,201			39,782			15,744			19,106			34,850
Other rental and property revenues		20,360			20,959			14,072			6,992			21,064
Total revenues		160,586			165,091			118,611			29,962			148,573
Other property operating costs		64,608			60,072			46,522			9,223			55,745
Rental property real estate taxes		12,065			11,292			9,666			972			10,638
Rental property maintenance costs		7,552			8,073			6,405			517			6,922
Resort and conference center operations		29,454			29,112			13,220			13,904			27,124
Provision for (recovery of) doubtful accounts		835			1,335			(98	)		(9	)		(107	)
Demolition costs		2,078			—			—			—			—
Depreciation and amortization		31,427			23,318			16,341			3,968			20,309
Interest income		(135	)		(185	)		(125	)		(2	)		(127	)
Interest expense		19,146			16,289			10,586			2,316			12,902
Early extinguishment of debt		—			—			11,305			—			11,305
Equity in Earnings from Real Estate Affiliates		(3,893	)		(3,683	)		—			(3,926	)		(3,926	)
Total expenses		163,137			145,623			113,822			26,963			140,785
Venture partner share of The Woodlands EBT		—			—			—			425			425
Operating Assets EBT		(2,551	)		19,468			4,789			3,424			8,213
Strategic Developments
Minimum rents		763			905			917			—			917
Tenant recoveries		167			141			130			—			130
Condominium rights and unit sales		32,969			267			22,067			—			22,067
Other land revenues		3,899			—			—			—			—
Other rental and property revenues		1,456			3,443			1,746			—			1,746
Total revenues		39,254			4,756			24,860			—			24,860
Condominium rights and unit cost of sales		16,572			96			14,465			—			14,465
Other property operating costs		8,578			3,094			5,428			—			5,428
Real estate taxes		2,226			2,351			604			—			604
Rental property maintenance costs		531			582			671			—			671
Provision for (recovery of) doubtful accounts		1			(111	)		(137	)		—			(137	)
Depreciation and amortization		189			225			234			—			234
Interest expense (*)		(4,318	)		219			323			—			323
Equity in Earnings from Real Estate Affiliates		(10,535	)		—			—			—			—
Total expenses		13,244			6,456			21,588			—			21,588
Strategic Developments EBT		26,010			(1,700	)		3,272			—			3,272
REP EBT	$	154,437		$	109,705		$	49,987		$	12,210		$	62,197

(*)

Negative interest expense amounts relate to interest capitalized on debt assigned to our Operating Assets Segment and Corporate for the years ended December 31, 2013, 2012 and 2011.

Schedule of reconciliation of REP EBT to GAAP-basis net income (loss)

Reconciliation of REP EBT to GAAP-net income (loss)	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Real Estate Property EBT:
Segment basis	$	154,437		$	109,705		$	62,197
Real Estate Affiliates		(14,428	)		(3,683	)		(12,210	)
REP EBT		140,009			106,022			49,987
General and administrative		(48,466	)		(36,548	)		(32,342	)
Corporate interest income, net		(10,575	)		10,153			8,595
Warrant liability gain (loss)		(181,987	)		(185,017	)		101,584
Benefit (provision) for income taxes		(9,570	)		(6,887	)		18,325
Reduction in tax indemnity receivable		(1,206	)		(20,260	)		—
Equity in earnings from Real Estate Affiliates		14,428			3,683			8,578
Investment in Real Estate Affiliate basis adjustment		—			—			(6,053	)
Other income		25,869			2,125			—
Corporate depreciation		(2,197	)		(814	)		(204	)
Net income (loss)	$	(73,695	)	$	(127,543	)	$	148,470

Schedule of reconciliation of segment revenue to GAAP-basis consolidated revenues

Reconciliation of Segment Basis Revenues to GAAP Revenues	Year Ended December 31,
	2013		2012		2011
	(In thousands)
Master Planned Communities	$	274,770	$	207,039	$	184,037
Operating Assets		160,586		165,091		148,573
Strategic Developments		39,254		4,756		24,860
Total revenues		474,610		376,886		357,470
Less: The Woodlands Partnerships revenues		—		—		(81,781	)
Total revenues – GAAP basis	$	474,610	$	376,886	$	275,689

Summary of assets by segment and the reconciliation of total segment assets to the total assets in the condensed consolidated balance sheet

	Year Ended December 31,
	2013		2012		2011
	(In thousands)
Master Planned Communities	$	1,760,639	$	1,756,625	$	1,780,596
Operating Assets (a)		1,344,005		944,562		871,549
Strategic Developments		462,525		288,287		189,807
Total segment assets		3,567,169		2,989,474		2,841,952
Corporate and other (b)		1,000,699		513,568		557,641
Total assets	$	4,567,868	$	3,503,042	$	3,399,593

(a)

Certain assets included in our Operating Asset segment are in various stages of redevelopment and are included in Developments on our Consolidated Balance Sheets.

(b)

Assets included in Corporate and other consist primarily of the Tax Indemnity receivable, including interest, and Cash and cash equivalents.