SEGMENTS

The Company has four business segments which offer different products and services. HHC's four 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. -Management’s Discussion and Analysis of Financial Condition and Results of Operations, one common operating measure used to assess operating results for the Company's business segments is earnings before taxes ("EBT"). The Company'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. All operations are within the United States. The Company's reportable segments are as follows:


•	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.


•	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.

•

Seaport District - consists of approximately 450,000 square feet of restaurant, retail and entertainment properties situated in three primary locations in New York, New York: Pier 17; Historic Area/Uplands; and Tin Building. While the latter is still under development and will comprise about 53,000 square feet when completed, the two operating locations consist of third party tenants; tenants either directly or jointly owned and operated by the Company; and businesses owned and operated by the Company under licensing agreements.


•	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, 2019, the Company moved the Seaport District out of its existing segments and into a stand-alone segment for disclosure purposes. The respective segment earnings and total segment assets presented in the Condensed Consolidated Financial Statements and elsewhere in this Quarterly Report have been adjusted in all periods reported to reflect this change. See the Seaport District section of Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

Segment operating results are as follows:



	Three Months Ended March 31,
(In thousands)	2019			2018
Operating Assets Segment EBT
Total revenues	$	91,953		$	87,747
Total operating expenses	42,912			42,011
Segment operating income	49,041			45,736
Depreciation and amortization	27,108			23,360
Interest expense, net	18,991			16,687
Other income, net	(35		)	(93		)
Equity in earnings from real estate and other affiliates	(2,709		)	(2,583		)
Segment EBT	5,686			8,365

MPC Segment EBT
Total revenues	50,896			55,765
Total operating expenses	28,514			36,368
Segment operating income	22,382			19,397
Depreciation and amortization	160			81
Interest income, net	(7,543		)	(6,392		)
Other loss, net	5			—
Equity in earnings from real estate and other affiliates	(7,837		)	(11,128		)
Segment EBT	37,597			36,836

Seaport District Segment EBT
Total revenues	7,030			3,511
Total operating expenses	14,433			3,535
Segment operating loss	(7,403		)	(24		)
Depreciation and amortization	6,193			2,244
Interest expense (income), net	1,532			(3,717		)
Other loss, net	86			—
Equity in losses from real estate and other affiliates	632			—
Loss on sale or disposal of real estate	6			—
Segment EBT	(15,852		)	1,449

Strategic Developments Segment EBT
Total revenues	204,011			14,656
Total operating expenses	146,303			12,027
Segment operating income	57,708			2,629
Depreciation and amortization	1,056			1,065
Interest income, net	(3,262		)	(3,807		)
Other income, net	(695		)	(209		)
Equity in earnings from real estate and other affiliates	(37		)	(672		)
Segment EBT	60,646			6,252



	Three Months Ended March 31,
(In thousands)	2019			2018
Consolidated Segment EBT
Total revenues	353,890			161,679
Total operating expenses	232,162			93,941
Segment operating income	121,728			67,738
Depreciation and amortization	34,517			26,750
Interest loss, net	9,718			2,771
Other income, net	(639		)	(302		)
Equity in earnings from real estate and other affiliates	(9,951		)	(14,383		)
Loss on sale or disposal of real estate	6			—
Consolidated segment EBT	88,077			52,902

Corporate expenses and other items	56,152			51,068
Net income	31,925			1,834
Net income attributable to noncontrolling interests	(104		)	(360		)
Net income attributable to common stockholders	$	31,821		$	1,474

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)	2019		2018
Operating Assets	$	2,706,132	$	2,562,257
Master Planned Communities	2,137,308		2,076,678
Seaport District	876,179		839,522
Strategic Developments	1,414,811		1,538,917
Total segment assets	7,134,430		7,017,374
Corporate and other	281,577		338,425
Total assets	$	7,416,007	$	7,355,799