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Discontinued Operations
9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
2. Discontinued Operations

On July 31, 2024, the spinoff of SEG was completed. The separation of SEG refined the identity of HHH as a pure-play real estate company focused solely on its core businesses and development of its master planned communities. The spinoff included all assets previously included in the Company’s Seaport segment and the Las Vegas Aviators and the Las Vegas Ballpark, which were previously included in the Operating Assets segment. As the spinoff of SEG represents a strategic shift in the Company’s operations, the results of SEG are included as discontinued operations for all periods presented.
The following table presents key components of Net income (loss) from discontinued operations, net of income taxes:
Three Months Ended September 30,Nine Months Ended September 30,
thousands2024202320242023
Total revenues$12,251 $40,186 $60,846 $92,475 
Total operating expenses18,019 41,129 88,381 102,235 
General and administrative (a)15,801 — 32,870 — 
Depreciation and amortization2,586 13,288 16,717 38,987 
Other 30  51 
Provision for impairment (672,492) (672,492)
Other income (loss), net32 255 (67)(1,367)
Interest income (expense), net(1,658)811 (7,414)2,194 
Gain (loss) on extinguishment of debt(1,563)(48)(1,563)(48)
Equity in earnings (losses) from unconsolidated ventures(2,129)(46,618)(18,960)(68,335)
Net income (loss) from discontinued operations before income taxes(29,473)(732,353)(105,126)(788,846)
Income tax expense (benefit)(5,442)(156,154)(23,319)(172,367)
Net income (loss) from discontinued operations, net of taxes$(24,031)$(576,199)$(81,807)$(616,479)
(a)General and administrative expenses relate to costs incurred during the year to complete the spinoff of Seaport Entertainment.

The following table summarizes the major classes of assets and liabilities that are classified as discontinued operations on the Condensed Consolidated Balance Sheets.
thousands
December 31, 2023
Net investment in real estate$437,463 
Investments in unconsolidated ventures37,459 
Cash and cash equivalents1,834 
Restricted cash42,011 
Accounts receivable, net13,672 
Deferred expenses, net4,379 
Operating lease right-of-use assets39,434 
Other assets, net39,020 
Assets of discontinued operations$615,272 
Mortgages, notes, and loans payable, net$155,628 
Operating lease obligations46,222 
Deferred tax liabilities, net3,542 
Accounts payable and other liabilities21,773 
Liabilities of discontinued operations$227,165 

Continuing Involvement with SEG In connection with the separation, HHH entered into several agreements with Seaport Entertainment that govern the execution of the transaction and the relationship of the parties following the spinoff including a Separation and Distribution Agreement, Transition Services Agreement, Tax Matters Agreement, Employee Matters Agreement, Guaranty Agreement, and various other agreements.
Seaport Entertainment Guaranty Following the execution of the spinoff, HHH continues to provide a full backstop guaranty for SEG’s outstanding mortgage related to its 250 Water Street property. See Note 10 - Commitments and Contingencies for additional information.