SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2017

SEGMENTS

Summary of segment operating results

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2017		2016		2017		2016
Master Planned Communities
Land sales	$	54,906	$	44,128	$	177,531	$	147,168
Builder price participation		5,472		4,483		14,613		15,631
Minimum rents		—		95		(8)		376
Other land revenues		4,551		4,043		19,575		12,195
Other rental and property revenues		—		13		—		33
Total revenues		64,929		52,762		211,711		175,403
Cost of sales – land		29,043		21,432		88,288		66,128
Land sales operations		8,180		10,674		24,881		30,454
Provision for doubtful accounts		—		—		2		—
Depreciation and amortization		76		72		247		236
Interest income		8		(5)		(1)		(26)
Interest expense (*)		(6,363)		(5,248)		(17,901)		(15,591)
Equity in (earnings) loss in Real Estate and Other Affiliates		(6,480)		(13,700)		(21,552)		(22,574)
Total expenses		24,464		13,225		73,964		58,627
MPC segment EBT		40,465		39,537		137,747		116,776
Operating Assets
Minimum rents		44,579		44,736		135,564		127,663
Tenant recoveries		11,491		11,652		34,257		33,089
Hospitality revenues		17,776		14,088		57,190		46,126
Other rental and property revenues		5,687		3,471		16,487		10,974
Total revenues		79,533		73,947		243,498		217,852
Other property operating costs		17,473		15,611		51,041		43,524
Rental property real estate taxes		7,098		6,406		19,975		19,257
Rental property maintenance costs		3,288		3,247		9,601		8,893
Hospitality operating costs		13,525		12,662		41,534		37,379
Provision for doubtful accounts		453		1,940		1,728		4,566
Demolition costs		34		—		162		—
Provision for impairment		—		35,734		—		35,734
Development-related marketing costs		1,067		457		2,317		902
Depreciation and amortization		33,885		20,732		88,918		64,546
Other income, net		249		(11)		265		(3,126)
Interest income		3		(3)		—		(19)
Interest expense (*)		15,937		12,905		46,004		36,987
Equity in (earnings) loss in Real Estate and Other Affiliates		(317)		210		(3,739)		(2,616)
Total expenses		92,695		109,890		257,806		246,027
Operating Assets segment EBT		(13,162)		(35,943)		(14,308)		(28,175)
Strategic Developments
Minimum rents		75		79		497		216
Tenant recoveries		95		5		370		19
Condominium rights and unit sales		113,852		115,407		342,208		362,613
Other land revenues		10		10		31		30
Other rental and property revenues		242		54		822		328
Total revenues		114,274		115,555		343,928		363,206
Condominium rights and unit cost of sales		86,531		83,218		253,209		237,759
Other property operating costs		3,881		924		9,112		3,989
Rental property real estate taxes		580		627		1,790		1,853
Rental property maintenance costs		92		85		415		324
Provision for doubtful accounts		(5)		—		(2)		63
Demolition costs		141		256		141		1,218
Development-related marketing costs		4,799		4,259		12,470		14,684
Depreciation and amortization		18		659		1,177		1,978
Other income, net		(122)		(298)		(137)		(542)
Interest income		(30)		(140)		(124)		(271)
Interest expense (*)		(6,953)		(4,866)		(18,197)		(12,710)
Equity in (earnings) loss in Real Estate and Other Affiliates		(670)		(3)		(530)		(10,510)
Gains on sales of properties		(237)		(70)		(32,452)		(140,549)
Total expenses		88,025		84,651		226,872		97,286
Strategic Developments segment EBT		26,249		30,904		117,056		265,920
Total consolidated segment EBT	$	53,552	$	34,498	$	240,495	$	354,521

(*) 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 September 30,				Nine Months Ended September 30,
(In thousands)	2017		2016		2017		2016
MPC segment EBT	$	40,465	$	39,537	$	137,747	$	116,776
Operating Assets segment EBT		(13,162)		(35,943)		(14,308)		(28,175)
Strategic Developments segment EBT		26,249		30,904		117,056		265,920
Total consolidated segment EBT		53,552		34,498		240,495		354,521
Corporate and other items:
General and administrative		(22,362)		(21,128)		(63,423)		(61,505)
Corporate interest expense, net		(12,875)		(13,263)		(36,595)		(39,358)
Warrant liability loss		—		(7,300)		(43,443)		(21,630)
Gain on acquisition of joint venture partner's interest		—		27,087		5,490		27,087
Loss on redemption of senior notes due 2021		—		—		(46,410)		—
Corporate other (expense) income, net		(33)		123		878		6,190
Corporate depreciation and amortization		(1,920)		(1,859)		(5,851)		(4,486)
Total Corporate and other items		(37,190)		(16,340)		(189,354)		(93,702)
Income before taxes	$	16,362	$	18,158	$	51,141	$	260,819

Schedule of reconciliation of segment revenue to GAAP consolidated revenues

Reconciliation of Segment Basis Revenues to Revenues	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2017		2016		2017		2016
Master Planned Communities	$	64,929	$	52,762	$	211,711	$	175,403
Operating Assets		79,533		73,947		243,498		217,852
Strategic Developments		114,274		115,555		343,928		363,206
Total revenues	$	258,736	$	242,264	$	799,137	$	756,461

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

	September 30,		December 31,
(In thousands)	2017		2016
Master Planned Communities	$	2,054,621	$	1,982,639
Operating Assets		2,450,306		2,344,949
Strategic Developments		1,708,327		1,451,460
Total segment assets		6,213,254		5,779,048
Corporate and other		510,442		588,334
Total assets	$	6,723,696	$	6,367,382