SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Depreciation or amortization expense is computed using the straight‑line method based upon the following estimated useful lives:



Asset Type	Years	Location of Asset
Buildings and improvements	7 - 40	Buildings and Equipment
Equipment and fixtures	5 - 20	Buildings and Equipment
Computer hardware and software, and vehicles	3 - 5	Buildings and Equipment
Tenant improvements	Lesser of lease term or useful life	Buildings and Equipment
Leasing costs	Related lease term	Prepaid expenses and other assets, net

Categories of Developments

Developments consist of the following categories:



	December 31,
(In thousands)	2018		2017
Land and improvements	$	456,450	$	202,875
Development costs	829,842		675,691
Condominium projects	3,776		318,016
Total Developments	$	1,290,068	$	1,196,582

Changes in Allowance for Doubtful Accounts

The following table summarizes the changes in allowance for doubtful accounts against accounts receivables:



(In thousands)	2018			2017			2016
Balance as of January 1,	$	9,300		$	7,799		$	4,406
Provision for doubtful accounts	6,078			2,710			5,664
Write-offs	(4,714		)	(1,209		)	(2,271		)
Balance as of December 31,	$	10,664		$	9,300		$	7,799

Schedule of Financial Statement Line Items Affected As Result Of New Revenue Recognition Standard

The following Balance Sheet line items were affected as of December 31, 2018, as a result of HHC's adoption of the New Revenue Standard:



	December 31, 2018
Consolidated Balance Sheets (in thousands)	Recognition Under Previous Guidance			Impact of Adoption of ASC Topic 606			Recognition Under ASC Topic 606
Buildings and equipment, net	$	2,544,982		$	7,089		$	2,552,071
Developments	1,136,320			153,748			1,290,068
Deferred expenses, net	90,914			4,800			95,714
Prepaid expenses and other assets, net	486,693			(75,057		)	411,636
Deferred tax liabilities	173,282			(16,094		)	157,188
Accounts payable and accrued expenses	613,747			165,525			779,272
Accumulated deficit	(61,490		)	(58,851		)	(120,341		)

For the year ended December 31, 2018, the following Consolidated Statements of Operations line items were affected as a result of HHC's adoption of the New Revenue Standard:



	Year ended December 31, 2018
Consolidated Statements of Operations (in thousands)	Recognition Under Previous Guidance		Impact of Adoption of ASC Topic 606			Recognition Under ASC Topic 606
Condominium rights and unit sales	$	488,115	$	(130,395	)	$	357,720
Condominium rights and unit cost of sales	410,281		(147,719		)	262,562
Depreciation and amortization	123,671		2,894			126,565
Operating income (loss) before other items	93,315		14,431			107,746
Provision (benefit) for income taxes	11,943		3,549			15,492
Net income (loss)	46,844		10,882			57,726
Net income (loss) attributable to common stockholders	46,130		10,882			57,012

For the year ended December 31, 2018, the following Consolidated Statements of Comprehensive Income line items were affected as a result of HHC's adoption of the New Revenue Standard:



	Year ended December 31, 2018
Consolidated Statements of Comprehensive Income (in thousands)	Recognition Under Previous Guidance		Impact of Adoption of ASC Topic 606		Recognition Under ASC Topic 606
Net income (loss)	$	46,844	$	10,882	$	57,726
Comprehensive income (loss)	45,683		10,882		56,565
Comprehensive income (loss) attributable to common stockholders	44,969		10,882		55,851

The following Consolidated Statements of Cash Flows line items were affected as of December 31, 2018, as a result of HHC's adoption of the New Revenue Standard:



	Year ended December 31, 2018
Consolidated Statements of Cash Flows (in thousands)	Recognition Under Previous Guidance			Impact of Adoption of ASC Topic 606			Recognition Under ASC Topic 606
Net income (loss)	$	46,844		$	10,882		$	57,726
Depreciation and amortization	123,671			2,894			126,565
Deferred income taxes	12,646			3,549			16,195
Condominium rights and unit cost of sales	410,281			(147,719		)	262,562
Percentage of completion revenue recognition from sale of condominium rights and unit sales	(130,395		)	130,395			—

Schedule of Disaggregation of Revenue

The following table presents HHC's revenues disaggregated by revenue source:



	Year Ended
(In thousands)	December 31, 2018
Revenues
From contracts with customers
Recognized at a point in time:
Condominium rights and unit sales	$	357,720
Master Planned Communities land sales	261,905
Hospitality revenues	82,037
Builder price participation	27,085
Total revenue from contracts with customers	728,747

Recognized at a point in time and/or over time:
Other land revenues	21,314
Other rental and property revenues	57,168
Total other income	78,482

Rental and other income (lease-related revenues)
Minimum rents	207,315
Tenant recoveries	49,993
Total rental income	257,308

Total revenues	$	1,064,537

Revenues by segment
Master Planned Communities revenues	$	309,451
Operating Assets revenues	379,124
Strategic Developments revenues	375,962

Total revenues	$	1,064,537

Schedule of Contract with Customer, Asset and Liability

The beginning and ending balances of contract assets and liabilities and significant activity during the period is as follows:



	Contract			Contract
(In thousands)	Assets			Liabilities
Balance as of January 1, 2018	$	—		$	179,179
Consideration earned during the period	(35,834		)	(308,898		)
Consideration received during the period	35,834			426,215
Balance as of December 31, 2018	$	—		$	296,496

Schedule of Remaining Unsatisfied Performance Obligations

The Company expects to recognize this amount as revenue over the following periods:



(In thousands)	Less than 1 year		1-2 years		3 years and thereafter
Total remaining unsatisfied performance obligations	$	511,461	$	29,049	$	402,974