SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2014

SEGMENTS

Schedule of segment operating results

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)						(In thousands)
Master Planned Communities
Land sales	$	153,164		$	66,021		$	200,835		$	113,247
Builder price participation	3,843			2,426			7,940			3,701
Minimum rents	207			194			404			389
Other land revenues	2,689			3,830			5,193			6,632
Other rental and property revenues	108			—			175			—
Total revenues	160,011			72,471			214,547			123,969
Cost of sales - land	42,719			29,854			65,797			55,553
Land sales operations	9,275			8,359			16,579			15,312
Land sales real estate and business taxes	2,135			1,435			4,089			2,978
Depreciation and amortization	103			8			203			15
Interest income	(22		)	(1		)	(79		)	(16		)
Interest expense (*)	(4,813		)	(3,646		)	(9,879		)	(9,606		)
Total expenses	49,397			36,009			76,710			64,236
MPC EBT	110,614			36,462			137,837			59,733
Operating Assets
Minimum rents	21,918			19,756			41,818			38,267
Tenant recoveries	6,941			5,041			12,825			10,293
Resort and conference center revenues	9,622			11,270			19,048			22,374
Other rental and property revenues	6,570			6,612			11,680			10,045
Total revenues	45,051			42,679			85,371			80,979
Other property operating costs	15,485			15,894			28,666			30,796
Rental property real estate taxes	3,762			2,923			6,869			5,906
Rental property maintenance costs	2,008			2,032			3,808			3,688
Resort and conference center operations	6,412			7,680			13,923			15,156
Provision for doubtful accounts	31			277			174			706
Demolition costs	3,434			—			5,928			—
Development-related marketing costs	2,711			658			4,790			721
Depreciation and amortization	9,531			6,398			18,541			12,516
Interest income	(11		)	(44		)	(130		)	(90		)
Interest expense	3,928			3,893			5,972			10,698
Equity in Earnings from Real Estate and Other Affiliates	(767		)	(363		)	(2,572		)	(3,096		)
Total expenses	46,524			39,348			85,969			77,001
Operating Assets EBT	(1,473		)	3,331			(598		)	3,978
Strategic Developments
Minimum rents	73			184			336			404
Tenant recoveries	(57		)	24			74			97
Condominium rights and unit sales	4,358			30,381			7,484			30,381
Other land revenues	9			—			17			—
Other rental and property revenues	186			23			455			23
Total revenues	4,569			30,612			8,366			30,905
Condominium rights and unit cost of sales	2,191			15,272			3,762			15,272
Other property operating costs	1,094			446			1,721			1,001
Real estate taxes	479			436			1,112			1,210
Rental property maintenance costs	166			111			281			260
Demolition costs	1			—			23			—
Development-related marketing costs	2,588			—			4,732			—
Depreciation and amortization	614			48			1,038			91
Other income	—			(954		)	(2,373		)	(954		)
Interest expense (*)	(3,981		)	(675		)	(6,630		)	(962		)
Equity in Earnings from Real Estate and Other Affiliates	(5,820		)	(5,344		)	(10,083		)	(5,344		)
Total expenses	(2,668		)	9,340			(6,417		)	10,574
Strategic Developments EBT	7,237			21,272			14,783			20,331
REP EBT	$	116,378		$	61,065		$	152,022		$	84,042

(*) Negative interest expense amounts relate to interest capitalized on debt assigned to our Operating Assets and Strategic Development segments.

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

Reconciliation of REP EBT to GAAP-net	Three Months Ended June 30,						Six Months Ended June 30,
income (loss)	2014			2013			2014			2013
	(In thousands)						(In thousands)
REP EBT	$	116,378		$	61,065		$	152,022		$	84,042
General and administrative	(17,497		)	(11,225		)	(34,379		)	(22,392		)
Corporate interest (expense)/income, net	4,829			1,594			(6,151		)	4,300
Warrant liability loss	(67,370		)	(111,200		)	(163,810		)	(144,227		)
Provision for income taxes	(44,532		)	(13,361		)	(49,305		)	(15,840		)
Reduction in tax indemnity receivable	(10,927		)	(7,499		)	(10,927		)	(9,403		)
Corporate other income	5,611			4,456			13,686			4,456
Corporate depreciation	(1,225		)	(326		)	(2,200		)	(602		)
Net loss	$	(14,733	)	$	(76,496	)	$	(101,064	)	$	(99,666	)

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

Reconciliation of Segment Basis Revenues to	Three Months Ended June 30,				Six Months Ended June 30,
GAAP Revenues	2014		2013		2014		2013
	(In thousands)				(In thousands)
Master Planned Communities	$	160,011	$	72,471	$	214,547	$	123,969
Operating Assets	45,051		42,679		85,371		80,979
Strategic Developments	4,569		30,612		8,366		30,905
Total revenues	$	209,631	$	145,762	$	308,284	$	235,853

Summary of assets by segment and the reconciliation of total segment assets to the total assets in the Condensed Consolidated Balance Sheets

	June 30,		December 31,
	2014		2013
	(In thousands)
Master Planned Communities	$	1,850,308	$	1,760,639
Operating Assets (a)	1,243,514		1,158,337
Strategic Developments	908,015		462,525
Total segment assets	4,001,837		3,381,501
Corporate and other (b)	978,744		1,186,367
Total assets	$	4,980,581	$	4,567,868

(a) Certain assets included in our Operating Assets segment are in various stages of redevelopment and are included in Developments on our Condensed Consolidated Balance Sheets.

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