SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2014

SEGMENTS

Schedule of segment operating results

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(In thousands)						(In thousands)
Master Planned Communities
Land sales	$	59,351		$	53,734		$	260,186		$	166,981
Builder price participation	5,311			2,002			13,251			5,703
Minimum rents	210			196			614			585
Other land revenues	4,103			3,579			9,296			10,211
Other rental and property revenues	198			—			373			—
Total revenues	69,173			59,511			283,720			183,480
Cost of sales - land	27,743			27,063			93,540			82,616
Land sales operations	8,068			7,393			24,629			22,705
Land sales real estate and business taxes	2,927			2,370			7,016			5,348
Depreciation and amortization	101			10			304			25
Interest income	(17		)	—			(96		)	(16		)
Interest expense (*)	(3,332		)	(3,689		)	(13,210		)	(13,295		)
Total expenses	35,490			33,147			112,183			97,383
MPC EBT	33,683			26,364			171,537			86,097
Operating Assets
Minimum rents	24,035			21,160			65,853			59,427
Tenant recoveries	7,581			5,254			20,406			15,547
Resort and conference center revenues	8,150			8,169			27,198			30,543
Other rental and property revenues	6,076			4,493			17,756			14,538
Total revenues	45,842			39,076			131,213			120,055
Other property operating costs	14,116			17,640			42,782			48,436
Rental property real estate taxes	3,716			3,148			10,585			9,054
Rental property maintenance costs	2,154			1,906			5,962			5,594
Resort and conference center operations	8,910			7,381			22,833			22,537
Provision for doubtful accounts	103			201			277			907
Demolition costs	761			1,386			6,689			1,386
Development-related marketing costs	589			1,050			5,379			1,771
Depreciation and amortization	11,261			9,171			29,802			21,687
Interest income	(11		)	(32		)	(141		)	(122		)
Interest expense	4,917			4,017			10,889			14,715
Equity in Earnings from Real Estate and Other Affiliates	(202		)	(647		)	(2,774		)	(3,743		)
Total expenses	46,314			45,221			132,283			122,222
Operating Assets EBT	(472		)	(6,145		)	(1,070		)	(2,167		)
Strategic Developments
Minimum rents	137			182			473			586
Tenant recoveries	18			38			92			135
Condominium rights and unit sales	4,032			810			11,516			31,191
Other land revenues	9			—			26			—
Other rental and property revenues	17			(2		)	472			18
Total revenues	4,213			1,028			12,579			31,930
Condominium rights and unit cost of sales	2,026			406			5,788			15,678
Other property operating costs	1,083			2,691			2,821			3,692
Real estate taxes	843			549			1,955			1,759
Rental property maintenance costs	159			142			440			402
Provision for doubtful accounts	16			3			16			3
Demolition costs	(1		)	—			22			—
Development-related marketing costs	5,798			—			10,530			—
Depreciation and amortization	445			48			1,483			139
Other income	—			(2,652		)	(2,373		)	(3,609		)
Interest expense (*)	(3,198		)	(401		)	(9,828		)	(1,363		)
Equity in Earnings from Real Estate and Other Affiliates	(5,307		)	(2,947		)	(15,390		)	(8,291		)
Total expenses	1,864			(2,161		)	(4,536		)	8,410
Strategic Developments EBT	2,349			3,189			17,115			23,520
REP EBT	$	35,560		$	23,408		$	187,582		$	107,450

(*) Negative interest expense amounts are due to interest capitalized in our Master Planned Communities and Strategic Developments segments related to Operating Assets segment debt and the Senior Notes.

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

Reconciliation of REP EBT to GAAP-net	Three Months Ended September 30,						Nine Months Ended September 30,
income (loss)	2014			2013			2014			2013
	(In thousands)						(In thousands)
REP EBT	$	35,560		$	23,408		$	187,582		$	107,450
General and administrative	(14,759		)	(11,914		)	(49,138		)	(34,310		)
Interest (expense)/income, net *	(14,938		)	1,955			(21,089		)	6,259
Warrant liability gain (loss)	24,690			(4,479		)	(139,120		)	(148,706		)
Provision for income taxes	(590		)	(5,172		)	(49,895		)	(21,012		)
Increase (reduction) in tax indemnity receivable	5,454			730			(5,473		)	(8,673		)
Other income, net *	11,409			3,662			25,095			8,118
Depreciation and amortization *	(1,211		)	(757		)	(3,411		)	(1,359		)
Net income (loss)	$	45,615		$	7,433		$	(55,449	)	$	(92,233	)

* Represents amounts not allocated to segments.

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

Reconciliation of Segment Basis Revenues to	Three Months Ended September 30,				Nine Months Ended September 30,
GAAP Revenues	2014		2013		2014		2013
	(In thousands)				(In thousands)
Master Planned Communities	$	69,173	$	59,511	$	283,720	$	183,480
Operating Assets	45,842		39,076		131,213		120,055
Strategic Developments	4,213		1,028		12,579		31,930
Total revenues	$	119,228	$	99,615	$	427,512	$	335,465

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

	September 30, 2014		December 31,2013
	(In thousands)
Master Planned Communities	$	1,855,671	$	1,760,639
Operating Assets (a)	1,351,090		1,158,337
Strategic Developments	1,068,491		462,525
Total segment assets	4,275,252		3,381,501
Corporate and other (b)	1,035,917		1,186,367
Total assets	$	5,311,169	$	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.