Impairment

12 Months Ended

Dec. 31, 2011

Impairment and Intangibles [Abstract]

IMPAIRMENT

NOTE 4 IMPAIRMENT

General

Although there were no impairment charges for the year ended December 31, 2011, Park West continues to suffer from a weak market and its occupancy was 64.9% at December 31, 2011. We are focused on attracting tenants who can drive increased traffic during the day and evening, such as entertainment concepts. If we are unsuccessful at increasing occupancy and traffic, many of our existing tenants may be unable to continue to occupy their leased spaces because their sales volume will likely be inadequate to support their operating costs, which would reduce our expected cash flows and result in a significant impairment. Impairment charges totaled $503.4 million and $680.3 million for the years ended December 31, 2010 and 2009, as presented in the table below. These impairment provisions resulted from an evaluation of impairment indicators for our properties, including considerations of revised strategies and operating philosophies and, with properties with such indicators, the undiscounted cash flows of the projects as compared to their carrying values. At December 31, 2010, although an additional four regions or projects within our master planned communities segment and four additional operating properties had carrying values in excess of estimated fair values based on current occupancy levels, cash flow and use of the property, no additional provisions for impairment were considered necessary for such projects and properties. These impairment charges are included in provisions for impairment in our consolidated and combined statement of income (loss) and comprehensive income (loss) for the years ended December 31, 2010 and 2009.

Circle T also recorded impairment charges of $38.1 million for the year ended December 31, 2009 relating to the assets of our non-consolidated Real Estate Affiliates, of which our share was $19.0 million, and which was included in our Equity in income (loss) from Real Estate Affiliates. In addition to the impairment charges recorded by the Circle T venture, we recorded impairment charges related to our investment in Circle T of $10.6 million for the year ended December 31, 2009 to write these investments down to their estimated fair value, with such provisions reflected in our Equity in earnings (loss) from Real Estate Affiliates. No provisions for impairment were recorded for the years ended December 31, 2011 and 2010 related to our investments in Real Estate Affiliates.

Summary of all impairment provisions:

			Year Ended December 31,
Impaired Asset	Location	Method of Determining Fair Value	2010		2009
			(In thousands)
Master Planned Communities:
Maryland- Gateway	Howard County, MD	Projected sales price analysis (a) (c)	$	2,613	$	—
Maryland- Columbia	Columbia, MD	Projected sales price analysis (a) (c)		56,798		—
Maryland- Fairwood	Columbia, MD	Projected sales price analysis (a) (c)		—		52,767
Summerlin-South	Las Vegas, NV	Projected sales price analysis (a) (c)		345,920		—
				405,331		52,767
Operating Assets:
Landmark	Alexandria, VA	Discounted cash flow analysis (a) (c)		24,434		27,323
Riverwalk Marketplace	New Orleans, LA	Discounted cash flow analysis (c)		55,975		—
Various pre-development costs		(b)		514		23,641
				80,923		50,964
Strategic Developments:
Allen	Allen, TX	Projected sales price analysis (a) (c)		—		29,063
Cottonwood Mall	Holladay, UT	Comparable property market analysis		—		50,768
Kendall	Miami, FL	Projected sales price analysis (c)		—		35,089
West Windsor	Princeton, NJ	Projected sales price analysis (c)		—		22,260
Bridges at Mint Hill	Charlotte, NC	Projected sales price analysis (b)		—		16,636
Elk Grove Promenade	Elk Grove, CA	Projected sales price analysis (c)		—		175,280
The Shops at Summerlin Centre	Las Vegas, NV	Projected sales price analysis (c)		—		176,141
Century Plaza Mall	Birmingham, AL	Projected sales price analysis (a) (d)		12,899		—
Redlands Promenade	Redlands, CA	Projected sales price analysis (a) (c)		—		6,667
Village at Redlands	Redlands, CA	Projected sales price analysis (a) (b)		—		5,537
Nouvelle at Natick	Natick, MA	Discounted cash flow analysis (c)		4,135		55,923
Various pre-development costs		(b)		68		3,254
				17,102		576,618
Total provisions for impairment			$	503,356	$	680,349
Real Estate Affiliates (REA):
The Shops at Circle T Ranch	Dallas, TX	Projected sales price analysis (d)	$	—	$	17,062
Circle T Power Center	Dallas, TX	Projected sales price analysis (d)		—		21,020
Total provisions for impairment on property held by REA			$	—	$	38,082
The Shops at Circle T Ranch	Dallas, TX		$	—	$	8,531
Circle T Power Center	Dallas, TX			—		10,510
Total provisions for impairment on property held by REA at share			$	—	$	19,041
Impairment of Circle T investment (e)			$	—	$	10,600

(a) Projected sales price analysis incorporates available market information and other management assumptions.

(b) Related to the write down of various pre-development costs that were determined to be non-recoverable due to the related projects being terminated.

(c) These impairments were primarily driven by the carrying value of the assets, including costs expected to be incurred, not being recoverable by the projected sales price of such assets.

(d) These impairments were primarily driven by management’s changes in current plans with respect to the property and measured based on the value of the underlying land, which is based on comparable property market analysis or a projected sales price analysis that incorporates available market information and other management assumptions as these properties are either no longer operational or operating with no or nominal income.

(e) Reflected in our equity in earnings (loss) of Real Estate Affiliates.