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:


•	MPC – consists of 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 – consists of 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 – consists of 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 assets under construction and related activities from Operating Assets to Strategic Developments. The Seaport District operating properties and related operating results remain presented within Operating Assets.

Segment operating results are as follows:



	Three Months Ended June 30,
	2018			2017			2018			2017			2018			2017			2018			2017
(In thousands)	Operating						MPC						Strategic						Consolidated
Total revenues	$	93,223		$	81,878		$	62,765		$	78,076		$	25,017		$	148,685		$	181,005		$	308,639
Total operating expenses	44,586			42,466			37,003			40,683			38,156			109,087			119,745			192,236
Segment operating income (loss)	48,637			39,412			25,762			37,393			(13,139		)	39,598			61,260			116,403
Depreciation and amortization	(25,688		)	(32,244		)	(85		)	(79		)	(1,113		)	(491		)	(26,886		)	(32,814		)
Interest (expense) income, net	(17,308		)	(15,540		)	6,808			5,990			6,417			6,734			(4,083		)	(2,816		)
Equity in earnings (loss) from real estate and other affiliates	(1,001		)	37			14,100			9,792			3,200			5			16,299			9,834
Gains on sales of properties	—			—			—			—			—			—			—			—
Segment EBT	$	4,640		$	(8,335	)	$	46,585		$	53,096		$	(4,635	)	$	45,846		$	46,590		$	90,607

							Corporate expenses and other items												52,469			87,487
							Net (loss) income												$	(5,879	)	$	3,120
							Net loss attributable to noncontrolling interests												791			—
							Net (loss) income attributable to common stockholders												$	(5,088	)	$	3,120



	Six Months Ended June 30,
	2018			2017			2018			2017			2018			2017			2018			2017
(In thousands)	Operating						MPC						Strategic						Consolidated
Total revenues	$	184,481		$	163,965		$	118,530		$	146,782		$	39,673		$	229,654		$	342,684		$	540,401
Total operating expenses	89,390			82,042			73,371			75,948			50,923			173,444			213,684			331,434
Segment operating income	95,091			81,923			45,159			70,834			(11,250		)	56,210			129,000			208,967
Depreciation and amortization	(50,861		)	(55,033		)	(166		)	(171		)	(2,178		)	(1,159		)	(53,205		)	(56,363		)
Interest (expense) income, net	(33,995		)	(30,064		)	13,200			11,547			13,941			11,338			(6,854		)	(7,179		)
Equity in earnings from real estate and other affiliates	1,585			3,422			25,228			15,072			3,872			(140		)	30,685			18,354
Gains on sales of properties	—			—			—			—			—			32,215			—			32,215
Segment EBT	$	11,820		$	248		$	83,421		$	97,282		$	4,385		$	98,464		$	99,626		$	195,994

							Corporate expenses and other items												103,671			187,215
							Net (loss) income												$	(4,045	)	$	8,779
							Net loss attributable to noncontrolling interests												431			—
							Net (loss) income attributable to common stockholders												$	(3,614	)	$	8,779

We recognized an operating loss of $(13.1) million and $(11.2) million for the three and six months ended June 30, 2018, respectively, in Strategic Developments, primarily due to a $13.4 million charge for window repairs at our Waiea condominium tower in Ward Village. This charge represents the Company's current best estimate of total costs to complete the repairs. While we expect to recover these costs in future periods, we will not recognize any recovery until the amount can be estimated and is considered probable for financial reporting purposes.

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:



	June 30,		December 31,
(In thousands)	2018		2017
Master Planned Communities	$	2,033,835	$	1,999,090
Operating Assets	2,592,813		2,489,177
Strategic Developments	2,037,105		1,511,612
Total segment assets	6,663,753		5,999,879
Corporate and other	469,944		729,185
Total assets	$	7,133,697	$	6,729,064