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SEGMENTS
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
SEGMENTS 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 453,000 square feet of restaurant, retail and entertainment properties situated in three primary locations in New York, New York: Pier 17, Seaport District 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.

Segment operating results are as follows:

 
 
Three Months Ended March 31,
(In thousands)
 
2020
 
2019
Operating Assets Segment EBT
 
 
 
 
Total revenues (a)
 
$
114,257

 
$
91,953

Total operating expenses (b)
 
(52,240
)
 
(42,912
)
Segment operating income
 
62,017

 
49,041

Depreciation and amortization
 
(37,089
)
 
(27,108
)
Interest expense, net
 
(26,193
)
 
(18,991
)
Other (loss) income, net
 
(59
)
 
35

Equity in earnings from real estate and other affiliates
 
4,394

 
2,709

Gain on sale or disposal of real estate
 
38,124

 
—

Provision for impairment
 
(48,738
)
 
—

Segment EBT
 
(7,544
)
 
5,686

 
 
 
 
 
MPC Segment EBT
 
 
 
 
Total revenues
 
50,446

 
50,896

Total operating expenses
 
(23,722
)
 
(28,514
)
Segment operating income
 
26,724

 
22,382

Depreciation and amortization
 
(91
)
 
(160
)
Interest income, net
 
8,554

 
7,543

Other loss, net
 
—

 
(5
)
Equity in earnings from real estate and other affiliates
 
8,934

 
7,837

Segment EBT
 
44,121

 
37,597

 
 
 
 
 
Seaport District Segment EBT
 
 
 
 
Total revenues
 
9,694

 
7,030

Total operating expenses
 
(14,311
)
 
(14,433
)
Segment operating loss
 
(4,617
)
 
(7,403
)
Depreciation and amortization
 
(20,875
)
 
(6,193
)
Interest expense, net
 
(5,053
)
 
(1,532
)
Other loss, net
 
(3,368
)
 
(86
)
Equity in losses from real estate and other affiliates
 
(2,043
)
 
(632
)
Loss on sale or disposal of real estate
 
—

 
(6
)
Segment EBT
 
(35,956
)
 
(15,852
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Three Months Ended March 31,
(In thousands)
 
2020
 
2019
Strategic Developments Segment EBT
 
 
 
 
Total revenues
 
760

 
204,011

Total operating expenses
 
(104,299
)
 
(146,303
)
Segment operating (loss) income
 
(103,539
)
 
57,708

Depreciation and amortization
 
(1,761
)
 
(1,056
)
Interest income, net
 
1,931

 
3,262

Other (loss) income, net
 
(375
)
 
693

Equity in earnings from real estate and other affiliates
 
64

 
37

Segment EBT
 
(103,680
)
 
60,644

 
 
 
 
 
Consolidated Segment EBT
 
 
 
 
Total revenues
 
175,157

 
353,890

Total operating expenses
 
(194,572
)
 
(232,162
)
Segment operating income
 
(19,415
)
 
121,728

Depreciation and amortization
 
(59,816
)
 
(34,517
)
Interest expense, net
 
(20,761
)
 
(9,718
)
Other (loss) income, net
 
(3,802
)
 
637

Equity in earnings from real estate and other affiliates
 
11,349

 
9,951

Gain (loss) on sale or disposal of real estate, net
 
38,124

 
(6
)
Provision for impairment
 
(48,738
)
 
—

Consolidated segment EBT
 
(103,059
)
 
88,075

 
 
 
 

Corporate income, expenses and other items
 
(22,023
)
 
(56,150
)
Net (loss) income
 
(125,082
)
 
31,925

Net income attributable to noncontrolling interests
 
(52
)
 
(104
)
Net (loss) income attributable to common stockholders
 
$
(125,134
)
 
$
31,821


 
(a)
Includes hospitality revenues for the three months ended March 31, 2020, and 2019, of $17.2 million and $22.9 million, respectively.
(b)
Includes hospitality operating costs for the three months ended March 31, 2020, and 2019, of $12.9 million and $15.6 million, respectively.

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)
 
2020
 
2019
Operating Assets
 
$
3,527,387

 
$
3,476,718

Master Planned Communities
 
2,228,230

 
2,166,472

Seaport District
 
919,523

 
930,067

Strategic Developments
 
1,612,002

 
1,540,161

Total segment assets
 
8,287,142

 
8,113,418

Corporate
 
832,582

 
300,348

Total assets
 
$
9,119,724

 
$
8,413,766