SEGMENTS

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segments

18. 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 7. 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 developed or acquired retail, office, hospitality and multi-family properties along with other real estate investments. These properties are currently generating revenues and may be redeveloped, repositioned or sold 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, 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:

thousands	Operating Assets Segment (a)		MPC Segment		Seaport District Segment		Strategic Developments Segment		Total
Year ended December 31, 2020
Total revenues	$	372,057	$	283,953	$	23,814	$	19,407	$	699,231
Total operating expenses	(185,480)		(128,597)		(46,112)		(135,160)		(495,349)
Segment operating income (loss)	186,577		155,356		(22,298)		(115,753)		203,882
Depreciation and amortization	(162,324)		(365)		(41,602)		(6,545)		(210,836)
Interest income (expense), net	(91,411)		36,587		(12,512)		6,312		(61,024)
Other income (loss), net	540		—		(2,616)		2,165		89
Equity in earnings (losses) from real estate and other affiliates	(7,366)		17,845		(9,292)		269,912		271,099
Gain (loss) on sale or disposal of real estate and other assets, net	38,232		—		—		21,710		59,942
Selling profit from sales-type leases	—		—		—		—		—
Gain (loss) on extinguishment of debt	(1,521)		—		(11,648)		—		(13,169)
Provision for impairment	(48,738)		—		—		—		(48,738)
Segment EBT	$	(86,011)	$	209,423	$	(99,968)	$	177,801	$	201,245
Corporate income, expenses and other items									(204,418)
Net income (loss)									(3,173)
Net (income) loss attributable to noncontrolling interests									(22,981)
Net income (loss) attributable to common stockholders									$	(26,154)

thousands	Operating Assets Segment (a)		MPC Segment		Seaport District Segment		Strategic Developments Segment		Total
Year Ended December 31, 2019
Total revenues	$	400,131	$	386,781	$	55,645	$	457,948	$	1,300,505
Total operating expenses	(187,322)		(183,472)		(77,872)		(391,848)		(840,514)
Segment operating income (loss)	212,809		203,309		(22,227)		66,100		459,991
Depreciation and amortization	(115,499)		(424)		(26,381)		(5,473)		(147,777)
Interest income (expense), net	(81,029)		32,019		(12,865)		11,321		(50,554)
Other income (loss), net	1,142		601		(22)		831		2,552
Equity in earnings (losses) from real estate and other affiliates	3,672		28,336		(2,592)		1,213		30,629
Gain (loss) on sale or disposal of real estate and other assets, net	—		—		(6)		27,119		27,113
Selling profit from sales-type leases	13,537		—		—		—		13,537
Gain (loss) on extinguishment of debt	—		—		4,851		—		4,851
Segment EBT	$	34,632	$	263,841	$	(59,242)	$	101,111	$	340,342
Corporate income, expenses and other items									(266,047)
Net income (loss)									74,295
Net (income) loss attributable to noncontrolling interests									(339)
Net income (loss) attributable to common stockholders									$	73,956
Year Ended December 31, 2018
Total revenues	$	348,242	$	309,451	$	32,632	$	374,212	$	1,064,537
Total operating expenses	(164,445)		(163,517)		(49,716)		(290,806)		(668,484)
Segment operating income (loss)	183,797		145,934		(17,084)		83,406		396,053
Depreciation and amortization	(103,293)		(243)		(12,466)		(3,307)		(119,309)
Interest income (expense), net	(71,551)		26,919		6,291		12,476		(25,865)
Other income (loss), net	(7,107)		18		102		3,015		(3,972)
Equity in earnings (losses) from real estate and other affiliates	1,994		36,284		(705)		2,364		39,937
Gain (loss) on sale or disposal of real estate and other assets, net	(4)		—		—		—		(4)
Segment EBT	$	3,836	$	208,912	$	(23,862)	$	97,954	$	286,840
Corporate income, expenses and other items									(229,114)
Net income (loss)									57,726
Net (income) loss attributable to noncontrolling interests									(714)
Net income (loss) attributable to common stockholders									$	57,012

(a)Total revenues includes hospitality revenues of $35.2 million for the year ended December 31, 2020, $87.9 million for the year ended December 31, 2019, and $82.0 million for the year ended December 31, 2018. Total operating expenses includes hospitality operating costs of $32.3 million for the year ended December 31, 2020, $60.2 million for the year ended December 31, 2019, and $59.2 million for the year ended December 31, 2018.

The following represents assets by segment and the reconciliation of total segment assets to the total assets in the Consolidated Balance Sheets as of December 31:

thousands	2020		2019
Operating Assets	$	3,936,119	$	3,476,718
Master Planned Communities	2,285,896		2,166,472
Seaport District	924,245		930,067
Strategic Developments	1,132,231		1,540,161
Total segment assets	8,278,491		8,113,418
Corporate	861,841		300,348
Total assets	$	9,140,332	$	8,413,766