SEGMENTS

The Company has three business segments which offer different products and services. HHC's three segments are managed separately because each requires different operating strategies or management expertise and are reflective of management’s operating philosophies and methods. As further discussed in Item 2, the one common operating measure used to assess operating results for our business segments is earnings before taxes ("EBT"). HHC's segments or assets within such segments could change in the future as development of certain properties commences or other operational or management changes occur. The Company does not distinguish or group the combined operations on a geographic basis. Furthermore, all operations are within the United States. The Company's reportable segments are as follows:


•	Master Planned Communities – includes the development and sale of land in large‑scale, long‑term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Columbia, Maryland.


•	Operating Assets – includes retail, office, hospitality and multi-family properties along with other real estate investments. These assets are currently generating revenues and are comprised of commercial real estate properties recently developed or acquired, and properties with an opportunity to redevelop, reposition or sell to improve segment performance or to recycle capital.


•	Strategic Developments – includes residential condominium and commercial property projects currently under development and all other properties held for development which have no substantial operations.

Effective January 1, 2017, the Company moved the Seaport District NYC assets under construction and related activities to the Strategic Developments segment from the Operating Assets segment. Seaport District NYC operating properties and related operating results remain presented within the Operating Assets segment.

Segment operating results are as follows:



	Three Months Ended March 31,
	2018			2017			2018			2017			2018			2017			2018			2017
(In thousands)	Operating						MPC						Strategic						Consolidated
Total revenues	$	91,258		$	82,087		$	55,765		$	68,706		$	14,656		$	80,969		$	161,679		$	231,762
Total operating expenses:	44,806			40,237			36,368			35,265			12,767			68,130			93,941			143,632
Segment operating income	46,452			41,850			19,397			33,441			1,889			12,839			67,738			88,130
Depreciation and amortization	(25,173		)	(22,789		)	(81		)	(92		)	(1,065		)	(668		)	(26,319		)	(23,549		)
Interest (expense) income, net	(16,687		)	(14,524		)	6,392			5,557			7,524			4,604			(2,771		)	(4,363		)
Equity in earnings from Real Estate and Other Affiliates	2,583			3,385			11,128			5,280			672			(145		)	14,382			8,520
Gains on sales of properties	—						—			—			—			32,215			—			32,215
Segment EBT	$	7,175		$	7,922		$	36,836		$	44,186		$	9,020		$	48,845		$	53,030		$	100,953

							Corporate expenses and other items												51,196			95,294
							Net income												$	1,834		$	5,659
							Net income attributable to noncontrolling interests												(360		)	—
							Net income attributable to common stockholders												$	1,474		$	5,659

The assets by segment and the reconciliation of total segment assets to the total assets in the Condensed Consolidated Balance Sheets are summarized as follows:



	March 31,		December 31,
(In thousands)	2018		2017
Master Planned Communities	$	2,000,369	$	1,999,090
Operating Assets	2,585,774		2,489,177
Strategic Developments	1,624,168		1,511,612
Total segment assets	6,210,311		5,999,879
Corporate and other	527,675		729,185
Total assets	$	6,737,986	$	6,729,064

The increase in the Operating Assets segment asset balance as of March 31, 2018 compared to December 31, 2017 is primarily due to placing NEP Imaging Group, LLC's studio at Seaport District NYC and One Merriweather in service. These increases were partially offset by the transfer of 110 North Wacker to Strategic Developments in January 2018.

The increase in the Strategic Developments segment asset balance as of March 31, 2018 compared to December 31, 2017 is primarily due to the transfer of 110 North Wacker into the segment and increased development expenditures for Ward condominium projects under construction.