REVENUES

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

The core principle of ASC 606, Revenues from Contracts with Customers, is that revenues from contracts with customers (excluding lease-related revenues) are recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Condominium rights and unit sales revenues were previously required to be recognized under the percentage of completion method. Under ASC 606, revenue and cost of sales for condominium units sold are not recognized until the construction is complete, the sale closes and the title to the property has transferred to the buyer (point in time). Additionally, certain real estate selling costs, such as the costs related to the Company’s condominium model units, are either expensed immediately or capitalized as property and equipment and depreciated over their estimated useful life.

The following table presents the Company’s revenues disaggregated by revenue source:



	Three Months Ended March 31,
(In thousands)	2020		2019
Revenues
From contracts with customers
Recognized at a point in time:
Condominium rights and unit sales	$	43	$	198,310
Master Planned Communities land sales	39,732		41,312
Builder price participation	7,759		5,195
Total revenue from contracts with customers	47,534		244,817

Recognized at a point in time and/or over time:
Other land, rental and property revenues	34,897		41,479
Total other income	34,897		41,479

Rental and other income (lease-related revenues)
Minimum rents	70,987		54,086
Tenant recoveries	20,875		13,508
Interest income from sales-type leases	882		—
Total rental income	92,744		67,594

Total revenues	$	175,175	$	353,890

Revenues by segment
Operating Assets revenues	$	114,257	$	91,953
Master Planned Communities revenues	50,446		50,896
Seaport District revenues	9,694		7,030
Strategic Developments revenues	760		204,011
Corporate revenues	18		—
Total revenues	$	175,175	$	353,890

Contract Assets and Liabilities

Contract assets are the Company’s right to consideration in exchange for goods or services that have been transferred to a customer, excluding any amounts presented as a receivable. Contract liabilities are the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration.

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



	Contract
(In thousands)	Liabilities
Balance as of December 31, 2019	$	246,010
Consideration earned during the period	(17,885		)
Consideration received during the period	64,432
Balance as of March 31, 2020	$	292,557

Remaining Unsatisfied Performance Obligations

The Company’s remaining unsatisfied performance obligations as of March 31, 2020, represent a measure of the total dollar value of work to be performed on contracts executed and in progress. These performance obligations are associated with contracts that generally are noncancelable by the customer after 30 days; however, purchasers of condominium units have the right to cancel the contract should the Company elect not to construct the condominium unit within a certain period of time or materially change the design of the condominium unit. The aggregate amount of the transaction price allocated to the Company’s remaining unsatisfied performance obligations as of March 31, 2020, is $1.7 billion. 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	$	224,740	$	432,467	$	1,026,141

The Company’s remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, and deferrals, as appropriate. These amounts exclude estimated amounts of variable consideration which are constrained, such as builder price participation.