REVENUES

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUES

REVENUES

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 June 30,				Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Revenues
From contracts with customers
Recognized at a point in time:
Condominium rights and unit sales	$	—	$	235,622	$	43	$	433,932
Master Planned Communities land sales	57,073		58,321		96,805		99,633
Builder price participation	8,947		9,369		16,706		14,564
Total revenue from contracts with customers	66,020		303,312		113,554		548,129
Recognized at a point in time and/or over time:
Other land, rental and property revenues	11,447		59,774		46,344		101,253
Total other income	11,447		59,774		46,344		101,253
Rental and other income (lease-related revenues)
Minimum rents	61,469		54,718		132,456		108,804
Tenant recoveries	17,202		13,512		38,077		27,020
Interest income from sales-type leases	35		—		917		—
Total rental income	78,706		68,230		171,450		135,824
Total revenues	$	156,173	$	431,316	$	331,348	$	785,206
Revenues by segment
Operating Assets revenues	$	84,277	$	109,219	$	198,534	$	201,172
Master Planned Communities revenues	68,913		72,859		119,359		123,755
Seaport District revenues	2,272		12,891		11,966		19,921
Strategic Developments revenues	624		236,347		1,384		440,358
Corporate revenues	87		—		105		—
Total revenues	$	156,173	$	431,316	$	331,348	$	785,206

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.

There were no contract assets for the period. The contract liabilities primarily relate to escrowed condominium deposits, MPC land sales deposits and deferred MPC land sales related to unsatisfied land improvements. The beginning and ending balances of contract liabilities and significant activity during the period are as follows:

	Contract
(In thousands)	Liabilities
Balance as of December 31, 2019	$	246,010
Consideration earned during the period	(30,200		)
Consideration received during the period	122,526
Balance as of June 30, 2020	$	338,336

Remaining Unsatisfied Performance Obligations

The Company’s remaining unsatisfied performance obligations as of June 30, 2020, represent a measure of the total dollar value of work to be performed on contracts executed and in progress. These performance obligations primarily relate to the completion of condominium construction and transfer of control to a buyer, as well as the completion of contracted MPC land sales and related land improvements. These 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 June 30, 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	$	193,994	$	433,966	$	1,048,461

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.