Revenues

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenues

16. 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 September 30,				Nine Months Ended September 30,
thousands	2020		2019		2020		2019
Revenues
From contracts with customers
Recognized at a point in time:
Condominium rights and unit sales	$	142	$	9,999	$	185	$	443,931
Master Planned Communities land sales	39,248		77,368		136,053		177,001
Builder price participation	9,230		9,660		25,936		24,224
Total revenue from contracts with customers	48,620		97,027		162,174		645,156
Recognized at a point in time and/or over time:
Other land, rental and property revenues	35,748		63,801		82,092		165,054
Total other income	35,748		63,801		82,092		165,054
Rental and lease-related revenues
Rental revenue	70,072		70,344		241,522		206,168
Total revenues	$	154,440	$	231,172	$	485,788	$	1,016,378
Revenues by segment
Operating Assets revenues	$	81,667	$	104,223	$	280,201	$	305,395
Master Planned Communities revenues	52,158		92,287		171,517		216,042
Seaport District revenues	4,204		23,130		16,170		43,051
Strategic Developments revenues	16,365		11,515		17,749		451,873
Corporate revenues	46		17		151		17
Total revenues	$	154,440	$	231,172	$	485,788	$	1,016,378

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:

thousands	Contract Liabilities
Balance as of December 31, 2019		$	246,010
Consideration earned during the period		(38,960		)
Consideration received during the period		138,291
Balance as of September 30, 2020		$	345,341

Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations as of September 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 September 30, 2020, is $1.7 billion. The Company expects to recognize this amount as revenue over the following periods:

thousands	Less than 1 year			1-2 years		3 years and thereafter
Total remaining unsatisfied performance obligations		$	220,354	$	437,371		$	1,081,751

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.