SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2017

SEGMENTS

Summary of segment operating results

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2017		2016		2017		2016
Master Planned Communities
Land sales	$	69,144	$	61,098	$	122,625	$	103,040
Builder price participation		4,480		6,501		9,141		11,148
Minimum rents		—		142		(8)		282
Other land revenues		4,452		4,112		15,024		8,150
Other rental and property revenues		—		17		—		20
Total revenues		78,076		71,870		146,782		122,640
Cost of sales – land		33,376		29,008		59,245		44,696
Land sales operations		7,307		9,169		16,701		19,778
Provision for doubtful accounts		—		—		2		—
Depreciation and amortization		79		81		171		164
Interest income		(1)		(5)		(9)		(21)
Interest expense (*)		(5,989)		(5,004)		(11,538)		(10,343)
Equity in earnings in Real Estate and Other Affiliates		(9,792)		(8,874)		(15,072)		(8,874)
Total expenses		24,980		24,375		49,500		45,400
MPC segment EBT		53,096		47,495		97,282		77,240
Operating Assets
Minimum rents		45,023		41,811		90,985		82,929
Tenant recoveries		11,536		10,914		22,766		21,437
Hospitality revenues		19,703		19,129		39,414		32,038
Other rental and property revenues		5,616		4,416		10,800		7,499
Total revenues		81,878		76,270		163,965		143,903
Other property operating costs		18,045		13,795		33,568		27,913
Real estate taxes		6,032		6,709		12,877		12,851
Rental property maintenance costs		3,480		2,645		6,313		5,646
Hospitality operating costs		14,164		14,242		28,009		24,717
Provision for doubtful accounts		745		(353)		1,275		2,626
Demolition costs		63		—		128		—
Development-related marketing costs		832		187		1,250		443
Depreciation and amortization		32,244		22,613		55,033		43,814
Other income, net		(162)		(2,750)		16		(3,113)
Interest income		(3)		(8)		(3)		(16)
Interest expense (*)		15,543		12,744		30,067		24,081
Equity in earnings from Real Estate and Other Affiliates		(37)		(899)		(3,422)		(2,826)
Total expenses		90,946		68,925		165,111		136,136
Operating Assets segment EBT		(9,068)		7,345		(1,146)		7,767
Strategic Developments
Minimum rents		50		83		422		134
Tenant recoveries		106		9		275		14
Condominium rights and unit sales		148,211		125,112		228,356		247,206
Other land revenues		11		10		21		20
Other rental and property revenues		307		160		580		278
Total revenues		148,685		125,374		229,654		247,652
Condominium rights and unit cost of sales		106,195		79,726		166,678		154,541
Other property operating costs		2,246		1,441		5,231		3,065
Real estate taxes		518		620		1,210		1,226
Rental property maintenance costs		128		108		323		239
Provision for doubtful accounts		—		1		3		63
Demolition costs		—		490		—		962
Development-related marketing costs		3,884		6,152		7,671		10,427
Depreciation and amortization		491		660		1,159		1,319
Other income, net		—		—		(15)		(244)
Interest income		(29)		(125)		(94)		(131)
Interest expense (*)		(6,705)		(4,527)		(11,244)		(7,845)
Equity in earnings from Real Estate and Other Affiliates		(5)		(10,502)		140		(10,507)
Gains on sales of properties		—		—		(32,215)		(140,479)
Total expenses		106,723		74,044		138,847		12,636
Strategic Developments segment EBT		41,962		51,330		90,807		235,016
Total consolidated segment EBT	$	85,990	$	106,170	$	186,943	$	320,023

(*) 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.

Reconciliation of EBT to GAAP income (loss) before taxes

Reconciliation of  EBT to income before taxes	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2017		2016		2017		2016
MPC segment EBT	$	53,096	$	47,495	$	97,282	$	77,240
Operating Assets segment EBT		(9,068)		7,345		(1,146)		7,767
Strategic Developments segment EBT		41,962		51,330		90,807		235,016
Total consolidated segment EBT		85,990		106,170		186,943		320,023
Corporate and other items:
General and administrative		(22,944)		(20,053)		(41,061)		(40,377)
Corporate interest expense, net		(10,847)		(13,023)		(23,720)		(26,097)
Warrant liability loss		(30,881)		(44,150)		(43,443)		(14,330)
Gain on acquisition of joint venture partner's interest		—		—		5,490		—
Loss on redemption of senior notes due 2021		—		—		(46,410)		—
Corporate other income, net		61		6,317		911		6,069
Corporate depreciation and amortization		(1,956)		(1,598)		(3,931)		(2,627)
Total Corporate and other items		(66,567)		(72,507)		(152,164)		(77,362)
Income before taxes	$	19,423	$	33,663	$	34,779	$	242,661

Schedule of reconciliation of segment revenue to GAAP consolidated revenues

Reconciliation of Segment Basis Revenues to Revenues	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2017		2016		2017		2016
Master Planned Communities	$	78,076	$	71,870	$	146,782	$	122,640
Operating Assets		81,878		76,270		163,965		143,903
Strategic Developments		148,685		125,374		229,654		247,652
Total revenues	$	308,639	$	273,514	$	540,401	$	514,195

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,
(In thousands)	2017		2016
Master Planned Communities	$	2,041,285	$	1,982,639
Operating Assets		2,482,724		2,344,949
Strategic Developments		1,583,616		1,451,460
Total segment assets		6,107,625		5,779,048
Corporate and other		559,824		588,334
Total assets	$	6,667,449	$	6,367,382