x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Florida | 59-0432511 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
133 South Watersound Parkway Watersound, Florida | 32461 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | þ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page No. | |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Investment in real estate, net | $ | 313,008 | $ | 313,599 | |||
Cash and cash equivalents | 165,286 | 212,773 | |||||
Investments | 236,656 | 191,240 | |||||
Restricted investments | 5,640 | 7,072 | |||||
Notes receivable, net | 2,041 | 2,555 | |||||
Property and equipment, net of accumulated depreciation of $57.2 million and $57.1 million at September 30, 2016 and December 31, 2015, respectively | 9,166 | 10,145 | |||||
Claim settlement receivable | 12,746 | — | |||||
Other assets | 33,343 | 36,573 | |||||
Investments held by special purpose entities | 208,543 | 208,785 | |||||
Total assets | $ | 986,429 | $ | 982,742 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Debt | $ | 54,233 | $ | 54,474 | |||
Other liabilities | 43,405 | 41,880 | |||||
Deferred tax liabilities | 39,375 | 36,847 | |||||
Senior Notes held by special purpose entity | 176,255 | 176,094 | |||||
Total liabilities | 313,268 | 309,295 | |||||
EQUITY: | |||||||
Common stock, no par value; 180,000,000 shares authorized; 74,342,826 and 92,332,565 issued at September 30, 2016 and December 31, 2015, respectively; and 74,342,826 and 75,329,557 outstanding at September 30, 2016 and December 31, 2015, respectively | 572,002 | 892,387 | |||||
Retained earnings | 92,037 | 78,851 | |||||
Accumulated other comprehensive income (loss) | 1,294 | (686 | ) | ||||
Treasury stock at cost, 0 and 17,003,008 shares held at September 30, 2016 and December 31, 2015, respectively | — | (305,289 | ) | ||||
Total stockholders’ equity | 665,333 | 665,263 | |||||
Non-controlling interest | 7,828 | 8,184 | |||||
Total equity | 673,161 | 673,447 | |||||
Total liabilities and equity | $ | 986,429 | $ | 982,742 |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Investment in real estate, net | $ | 46,146 | $ | 46,156 | |||
Cash and cash equivalents | 4,087 | 4,067 | |||||
Other assets | 9,947 | 12,853 | |||||
Investments held by special purpose entities | 208,543 | 208,785 | |||||
Total assets | $ | 268,723 | $ | 271,861 | |||
LIABILITIES | |||||||
Debt | $ | 47,565 | $ | 47,480 | |||
Other liabilities | 2,411 | 4,416 | |||||
Senior Notes held by special purpose entity | 176,255 | 176,094 | |||||
Total liabilities | $ | 226,231 | $ | 227,990 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue: | |||||||||||||||
Real estate revenue | $ | 4,163 | $ | 4,880 | $ | 17,988 | $ | 24,337 | |||||||
Resorts and leisure revenue | 19,046 | 18,537 | 47,590 | 45,657 | |||||||||||
Leasing revenue | 2,685 | 2,528 | 7,366 | 6,741 | |||||||||||
Timber revenue | 1,298 | 1,885 | 4,053 | 6,033 | |||||||||||
Total revenue | 27,192 | 27,830 | 76,997 | 82,768 | |||||||||||
Expenses: | |||||||||||||||
Cost of real estate revenue | 1,949 | 2,480 | 6,688 | 12,204 | |||||||||||
Cost of resorts and leisure revenue | 15,438 | 14,720 | 40,402 | 38,220 | |||||||||||
Cost of leasing revenue | 710 | 734 | 2,219 | 1,996 | |||||||||||
Cost of timber revenue | 213 | 201 | 626 | 643 | |||||||||||
Other operating and corporate expenses | 5,193 | 9,847 | 17,736 | 24,696 | |||||||||||
Depreciation, depletion and amortization | 2,094 | 2,231 | 6,484 | 7,281 | |||||||||||
Total expenses | 25,597 | 30,213 | 74,155 | 85,040 | |||||||||||
Operating income (loss) | 1,595 | (2,383 | ) | 2,842 | (2,272 | ) | |||||||||
Other income (expense): | |||||||||||||||
Investment income, net | 4,689 | 9,125 | 10,378 | 19,776 | |||||||||||
Interest expense | (3,075 | ) | (2,875 | ) | (9,255 | ) | (8,397 | ) | |||||||
Claim settlement | — | — | 12,548 | — | |||||||||||
Other, net | 435 | 135 | 1,487 | (6,302 | ) | ||||||||||
Total other income | 2,049 | 6,385 | 15,158 | 5,077 | |||||||||||
Income before income taxes | 3,644 | 4,002 | 18,000 | 2,805 | |||||||||||
Income tax expense | (948 | ) | (1,244 | ) | (5,170 | ) | (2,034 | ) | |||||||
Net income | 2,696 | 2,758 | 12,830 | 771 | |||||||||||
Net loss attributable to non-controlling interest | 15 | 14 | 356 | 39 | |||||||||||
Net income attributable to the Company | $ | 2,711 | $ | 2,772 | $ | 13,186 | $ | 810 | |||||||
NET INCOME PER SHARE | |||||||||||||||
Basic and Diluted | |||||||||||||||
Weighted average shares outstanding | 74,342,826 | 92,026,894 | 74,496,058 | 92,088,253 | |||||||||||
Net income per share attributable to the Company | $ | 0.04 | $ | 0.03 | $ | 0.18 | $ | 0.01 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income: | $ | 2,696 | $ | 2,758 | $ | 12,830 | $ | 771 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Available-for-sale investment items: | |||||||||||||||
Net unrealized gains on available-for-sale investments | 3,257 | 3,710 | 3,259 | 6,956 | |||||||||||
Reclassification of realized gains included in earnings | (40 | ) | (5,276 | ) | (40 | ) | (5,276 | ) | |||||||
Total before income taxes | 3,217 | (1,566 | ) | 3,219 | 1,680 | ||||||||||
Income tax (expense) benefit | (1,238 | ) | 1,057 | (1,239 | ) | (216 | ) | ||||||||
Total other comprehensive income (loss), net of tax | 1,979 | (509 | ) | 1,980 | 1,464 | ||||||||||
Total comprehensive income, net of tax | $ | 4,675 | $ | 2,249 | $ | 14,810 | $ | 2,235 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||||||
Outstanding Shares | Amount | Treasury Stock | Non-controlling Interest | Total | ||||||||||||||||||||||
Balance at December 31, 2015 | 75,329,557 | $ | 892,387 | $ | 78,851 | $ | (686 | ) | $ | (305,289 | ) | $ | 8,184 | $ | 673,447 | |||||||||||
Issuance of common stock for director’s fees | 8,919 | 93 | — | — | — | — | 93 | |||||||||||||||||||
Reduction in excess tax benefits on stock options | — | (369 | ) | — | — | — | — | (369 | ) | |||||||||||||||||
Repurchase of common shares | (995,650 | ) | — | — | — | (14,820 | ) | — | (14,820 | ) | ||||||||||||||||
Retirement of treasury stock | — | (320,109 | ) | — | — | 320,109 | — | — | ||||||||||||||||||
Other comprehensive income | — | — | — | 1,980 | — | — | 1,980 | |||||||||||||||||||
Net income (loss) | — | — | 13,186 | — | — | (356 | ) | 12,830 | ||||||||||||||||||
Balance at September 30, 2016 | 74,342,826 | $ | 572,002 | $ | 92,037 | $ | 1,294 | $ | — | $ | 7,828 | $ | 673,161 | |||||||||||||
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 12,830 | $ | 771 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation, depletion and amortization | 6,484 | 7,281 | |||||
Stock based compensation | 93 | 150 | |||||
Gain on sale of investments | (40 | ) | (5,276 | ) | |||
Deferred income tax expense | 920 | 2,502 | |||||
Cost of real estate sold | 5,091 | 10,932 | |||||
Expenditures for and acquisition of real estate to be sold | (5,397 | ) | (5,445 | ) | |||
Accretion income and other | (1,544 | ) | (1,658 | ) | |||
Impairment losses | 357 | — | |||||
Changes in operating assets and liabilities: | |||||||
Notes receivable | 518 | 21,441 | |||||
Claim settlement receivable | (12,746 | ) | — | ||||
Other assets | 1,646 | 883 | |||||
Other liabilities | 412 | 4,479 | |||||
Income taxes receivable | 1,948 | (469 | ) | ||||
Net cash provided by operating activities | 10,572 | 35,591 | |||||
Cash flows from investing activities: | |||||||
Expenditures for Pier Park North joint venture | (1,365 | ) | (5,462 | ) | |||
Purchases of property and equipment | (2,413 | ) | (2,287 | ) | |||
Proceeds from the disposition of assets | 3 | — | |||||
Purchases of investments | (308,174 | ) | (239,740 | ) | |||
Maturities of investments | 185,000 | 310,000 | |||||
Sales of investments | 83,307 | 323,724 | |||||
Maturities of assets held by special purpose entities | 787 | 787 | |||||
Net cash (used in) provided by investing activities | (42,855 | ) | 387,022 | ||||
Cash flows from financing activities: | |||||||
Repurchase of common shares | (14,820 | ) | (304,924 | ) | |||
Borrowings on construction/refinanced loan in Pier Park joint venture | — | 6,007 | |||||
Principal payments for debt | (384 | ) | (324 | ) | |||
Net cash used in financing activities | (15,204 | ) | (299,241 | ) | |||
Net (decrease) increase in cash and cash equivalents | (47,487 | ) | 123,372 | ||||
Cash and cash equivalents at beginning of the period | 212,773 | 34,515 | |||||
Cash and cash equivalents at end of the period | $ | 165,286 | $ | 157,887 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Cash paid during the period for: | ||||||||
Interest expense | $ | 10,921 | $ | 9,991 | ||||
Income taxes | $ | 2,302 | $ | — | ||||
Non-cash financing and investing activities: | ||||||||
Increase in Community Development District debt | $ | 21 | $ | 586 | ||||
Decrease in pledged treasury securities related to defeased debt | $ | — | $ | 346 | ||||
Expenditures for operating properties and property and equipment financed through accounts payable | $ | 147 | $ | 1,394 |
September 30, 2016 | December 31, 2015 | ||||||
Development property: | |||||||
Residential real estate | $ | 99,545 | $ | 99,413 | |||
Commercial real estate | 57,248 | 56,587 | |||||
Resorts and leisure | 214 | — | |||||
Leasing operations | 1,119 | 360 | |||||
Forestry | 2,509 | 2,681 | |||||
Corporate | 2,389 | 2,211 | |||||
Total development property | 163,024 | 161,252 | |||||
Operating property: | |||||||
Residential real estate | 8,091 | 8,091 | |||||
Resorts and leisure | 109,346 | 109,425 | |||||
Leasing operations | 81,307 | 79,550 | |||||
Forestry | 19,517 | 19,300 | |||||
Other | 50 | 50 | |||||
Total operating property | 218,311 | 216,416 | |||||
Less: Accumulated depreciation | 68,327 | 64,069 | |||||
Total operating property, net | 149,984 | 152,347 | |||||
Investment in real estate, net | $ | 313,008 | $ | 313,599 |
• | a prolonged decrease in the fair value or demand for the Company’s properties; |
• | a change in the expected use or development plans for the Company’s properties; |
• | a material change in strategy that would affect the fair value of the Company’s properties; |
• | continuing operating or cash flow losses for an operating property; |
• | an accumulation of costs in excess of the projected costs for a development property; and |
• | any other adverse change that may affect the fair value of the property. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Debt securities: | |||||||||||||||
U.S. Treasury securities | $ | 99,659 | $ | 75 | $ | — | $ | 99,734 | |||||||
Corporate debt securities | 111,963 | 2,349 | 622 | 113,690 | |||||||||||
Preferred stock | 22,930 | 397 | 95 | 23,232 | |||||||||||
234,552 | 2,821 | 717 | 236,656 | ||||||||||||
Restricted investments: | |||||||||||||||
Money market fund | 5,640 | — | — | 5,640 | |||||||||||
$ | 240,192 | $ | 2,821 | $ | 717 | $ | 242,296 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Debt securities: | |||||||||||||||
U.S. Treasury securities | $ | 184,819 | $ | — | $ | 79 | $ | 184,740 | |||||||
Corporate debt securities | 7,273 | — | 981 | 6,292 | |||||||||||
Preferred stock | 265 | — | 57 | 208 | |||||||||||
192,357 | — | 1,117 | 191,240 | ||||||||||||
Restricted investments: | |||||||||||||||
Guaranteed income fund | 7,072 | — | — | 7,072 | |||||||||||
$ | 199,429 | $ | — | $ | 1,117 | $ | 198,312 |
As of September 30, 2016 | As of December 31, 2015 | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Less Than 12 Months | 12 Months or Greater | ||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | 184,740 | $ | 79 | $ | — | $ | — | |||||||||||||||
Corporate debt securities | 14,367 | 232 | 4,912 | 390 | 6,292 | 981 | — | — | |||||||||||||||||||||||
Preferred stock | 169 | 95 | — | — | 208 | 57 | — | — | |||||||||||||||||||||||
$ | 14,536 | $ | 327 | $ | 4,912 | $ | 390 | $ | 191,240 | $ | 1,117 | $ | — | $ | — |
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 113,393 | $ | 113,944 | |||
Due after one year through five years | 98,130 | 99,398 | |||||
Due after ten years through fifteen years | 99 | 82 | |||||
211,622 | 213,424 | ||||||
Preferred stock | 22,930 | 23,232 | |||||
Restricted investments | 5,640 | 5,640 | |||||
$ | 240,192 | $ | 242,296 |
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 9,795 | $ | — | $ | — | $ | 9,795 | |||||||
Commercial paper | 139,463 | — | — | 139,463 | |||||||||||
Debt securities: | |||||||||||||||
U.S. Treasury securities | 99,734 | — | — | 99,734 | |||||||||||
Corporate debt securities | 62,606 | 51,084 | — | 113,690 | |||||||||||
Preferred stock | 19,185 | 4,047 | — | 23,232 | |||||||||||
Restricted investments: | |||||||||||||||
Money market fund | 5,640 | — | — | 5,640 | |||||||||||
$ | 336,423 | $ | 55,131 | $ | — | $ | 391,554 |
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 18,233 | $ | — | $ | — | $ | 18,233 | |||||||
Commercial paper | 174,973 | — | — | 174,973 | |||||||||||
Debt securities: | |||||||||||||||
U.S. Treasury securities | 184,740 | — | — | 184,740 | |||||||||||
Corporate debt securities | — | 6,292 | — | 6,292 | |||||||||||
Preferred stock | — | 208 | — | 208 | |||||||||||
Restricted investments: | |||||||||||||||
Guaranteed income fund | — | 7,072 | — | 7,072 | |||||||||||
$ | 377,946 | $ | 13,572 | $ | — | $ | 391,518 |
• | The fair value of the Company’s retained interest investments is based on the present value of the expected future cash flows at the effective yield. |
• | The fair value of the Investments held by special purpose entities - Time deposit is based on the present value of future cash flows at the current market rate. |
• | The fair value of the Investments held by special purpose entities - U.S. Treasury securities are measured based on quoted market prices in an active market. |
• | The fair value of the Senior Notes held by special purpose entity is based on the present value of future cash flows at the current market rate. |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||
Carrying value | Fair value | Level | Carrying value | Fair value | Level | ||||||||||||||
Assets | |||||||||||||||||||
Retained interest investments | $ | 10,494 | $ | 13,386 | 3 | $ | 10,246 | $ | 13,333 | 3 | |||||||||
Investments held by special purpose entities: | |||||||||||||||||||
Time deposit | $ | 200,000 | $ | 200,000 | 3 | $ | 200,000 | $ | 200,000 | 3 | |||||||||
U.S. Treasury securities and cash equivalents | $ | 8,543 | $ | 8,759 | 1 | $ | 8,785 | $ | 9,033 | 1 | |||||||||
Liabilities | |||||||||||||||||||
Senior Notes held by special purpose entity | $ | 176,255 | $ | 215,725 | 3 | $ | 176,094 | $ | 178,035 | 3 |
September 30, 2016 | December 31, 2015 | ||||||
Pier Park Community Development District notes, non-interest bearing, due September 2022, net of unamortized discount of $0.1 million, effective rates 5.93% — 6.50% | $ | 1,792 | $ | 1,985 | |||
Interest bearing homebuilder notes, secured by the real estate sold — 4.0% interest rate, any remaining payments outstanding are due December 2016 | 33 | 90 | |||||
Various mortgage notes, secured by certain real estate, bearing interest at various rates | 216 | 480 | |||||
Total notes receivable, net | $ | 2,041 | $ | 2,555 |
September 30, 2016 | December 31, 2015 | ||||||
Retained interest investments | $ | 10,494 | $ | 10,246 | |||
Accounts receivable, net | 4,134 | 4,382 | |||||
Prepaid expenses | 5,823 | 5,849 | |||||
Straight line rent | 3,848 | 3,732 | |||||
Income tax receivable | 327 | 2,275 | |||||
Other assets | 7,782 | 6,751 | |||||
Accrued interest receivable for Senior Notes held by special purpose entity | 935 | 3,338 | |||||
Total other assets | $ | 33,343 | $ | 36,573 |
September 30, 2016 | December 31, 2015 | ||||||
Cash and cash equivalents | $ | 12,796 | $ | 13,760 | |||
Other assets | 59 | 58 | |||||
Total assets | $ | 12,855 | $ | 13,818 | |||
Accounts payable and other liabilities | $ | 1,535 | $ | 1,978 | |||
Equity(1) | 11,320 | 11,840 | |||||
Total liabilities and equity | $ | 12,855 | $ | 13,818 |
Principal | Unamortized Discount and Debt Issuance Costs | Net | |||||||||
Refinanced Loan in the Pier Park North joint venture, due November 2025, bearing interest at 4.1% | $ | 48,200 | $ | 635 | $ | 47,565 | |||||
Community Development District debt, secured by certain real estate and standby note purchase agreements, due May 2031 - May 2039, bearing interest at 3.09% to 7.0% at September 30, 2016 | 6,668 | — | 6,668 | ||||||||
Total debt | $ | 54,868 | $ | 635 | $ | 54,233 |
Principal | Unamortized Discount and Debt Issuance Costs | Net | |||||||||
Refinanced Loan in the Pier Park North joint venture, due November 2025, bearing interest at 4.1% | $ | 48,200 | $ | 720 | $ | 47,480 | |||||
Community Development District debt, secured by certain real estate and standby note purchase agreements, due May 2016 - May 2039, bearing interest at 2.8% to 7.0% at December 31, 2015 | 6,994 | — | 6,994 | ||||||||
Total debt | $ | 55,194 | $ | 720 | $ | 54,474 |
September 30, 2016 | |||
2016 | $ | 96 | |
2017 | 991 | ||
2018 | 1,032 | ||
2019 | 1,075 | ||
2020 | 1,119 | ||
Thereafter | 50,555 | ||
$ | 54,868 |
September 30, 2016 | December 31, 2015 | ||||||
Accounts payable | $ | 2,724 | $ | 2,585 | |||
Accrued compensation | 2,541 | 3,366 | |||||
Deferred revenue | 15,493 | 15,584 | |||||
Membership deposits and initiation fees | 7,305 | 7,416 | |||||
Advance deposits | 3,291 | 3,574 | |||||
Other accrued liabilities | 11,339 | 6,505 | |||||
Accrued interest expense for Senior Notes held by special purpose entity | 712 | 2,850 | |||||
Total other liabilities | $ | 43,405 | $ | 41,880 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Tax expense at the federal statutory rate | $ | 1,280 | $ | 1,415 | $ | 6,424 | $ | 996 | |||||||
State income tax expense (net of federal benefit) | 128 | 142 | 642 | 100 | |||||||||||
Tax effect of timber at the federal statutory rate of 23.8% | (121 | ) | — | (381 | ) | — | |||||||||
Decrease in valuation allowance | (350 | ) | (87 | ) | (713 | ) | (245 | ) | |||||||
Fees and expenses for the SEC investigation | — | (256 | ) | — | 1,092 | ||||||||||
Other | 11 | 30 | (802 | ) | 91 | ||||||||||
Total income tax expense | $ | 948 | $ | 1,244 | $ | 5,170 | $ | 2,034 |
Unrealized Gains on Available-for-Sale Securities | |||
Accumulated other comprehensive loss at December 31, 2015 | $ | (686 | ) |
Other comprehensive income before reclassifications | 2,005 | ||
Amounts reclassified from accumulated other comprehensive income | (25 | ) | |
Other comprehensive income | 1,980 | ||
Accumulated other comprehensive income at September 30, 2016 | $ | 1,294 |
Three Months Ended September 30, 2016 | |||||||||||
Before-Tax Amount | Tax Benefit or (Expense) | Net-of-Tax Amount | |||||||||
Unrealized gains on debt securities: | |||||||||||
Unrealized gains on available-for-sale investments | $ | 3,257 | $ | (1,253 | ) | $ | 2,004 | ||||
Less: reclassification adjustment for gains included in earnings | (40 | ) | 15 | (25 | ) | ||||||
Net unrealized gains | 3,217 | (1,238 | ) | 1,979 | |||||||
Other comprehensive income | $ | 3,217 | $ | (1,238 | ) | $ | 1,979 |
Three Months Ended September 30, 2015 | |||||||||||
Before-Tax Amount | Tax Benefit or (Expense) | Net-of-Tax Amount | |||||||||
Unrealized gains on debt securities: | |||||||||||
Unrealized gains on available-for-sale investments | $ | 3,710 | $ | (1,465 | ) | $ | 2,245 | ||||
Less: reclassification adjustment for gains included in earnings | (5,276 | ) | 2,522 | (2,754 | ) | ||||||
Net unrealized gains | (1,566 | ) | 1,057 | (509 | ) | ||||||
Other comprehensive loss | $ | (1,566 | ) | $ | 1,057 | $ | (509 | ) |
Nine Months Ended September 30, 2016 | |||||||||||
Before-Tax Amount | Tax Benefit or (Expense) | Net-of-Tax Amount | |||||||||
Unrealized gains on debt securities: | |||||||||||
Unrealized gains on available-for-sale investments | $ | 3,259 | $ | (1,254 | ) | $ | 2,005 | ||||
Less: reclassification adjustment for gains included in earnings | (40 | ) | 15 | (25 | ) | ||||||
Net unrealized gains | 3,219 | (1,239 | ) | 1,980 | |||||||
Other comprehensive income | $ | 3,219 | $ | (1,239 | ) | $ | 1,980 |
Nine Months Ended September 30, 2015 | |||||||||||
Before-Tax Amount | Tax Benefit or (Expense) | Net-of-Tax Amount | |||||||||
Unrealized gains on debt securities: | |||||||||||
Unrealized gains on available-for-sale investments | $ | 6,956 | $ | (2,738 | ) | $ | 4,218 | ||||
Less: reclassification adjustment for gains included in earnings | (5,276 | ) | 2,522 | (2,754 | ) | ||||||
Net unrealized gains | 1,680 | (216 | ) | 1,464 | |||||||
Other comprehensive income | $ | 1,680 | $ | (216 | ) | $ | 1,464 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Investment income, net | ||||||||||||||||
Net investment income from available-for-sale securities | ||||||||||||||||
Interest and dividend income | $ | 1,528 | $ | 1,120 | $ | 1,969 | $ | 5,509 | ||||||||
Accretion income | 960 | 639 | 2,002 | 2,184 | ||||||||||||
Realized gains on the sale of investments | 40 | 5,276 | 40 | 5,276 | ||||||||||||
Total net investment income from available-for-sale securities | 2,528 | 7,035 | 4,011 | 12,969 | ||||||||||||
Interest income from investments in special purpose entities | 2,051 | 2,050 | 6,151 | 6,150 | ||||||||||||
Interest accrued on notes receivable and other interest | 110 | 40 | 216 | 657 | ||||||||||||
Total investment income, net | 4,689 | 9,125 | 10,378 | 19,776 | ||||||||||||
Interest expense | ||||||||||||||||
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity | (2,259 | ) | (2,189 | ) | (6,640 | ) | (6,566 | ) | ||||||||
Interest expense | (816 | ) | (686 | ) | (2,615 | ) | (1,831 | ) | ||||||||
Total interest expense | (3,075 | ) | (2,875 | ) | (9,255 | ) | (8,397 | ) | ||||||||
Claim settlement | — | — | 12,548 | — | ||||||||||||
Other, net | ||||||||||||||||
Fees and expenses for the SEC investigation | — | (438 | ) | — | (7,869 | ) | ||||||||||
Accretion income from retained interest investments | 249 | 237 | 733 | 674 | ||||||||||||
Hunting lease income | 138 | 135 | 415 | 425 | ||||||||||||
Other income, net | 48 | 201 | 339 | 468 | ||||||||||||
Other, net | 435 | 135 | 1,487 | (6,302 | ) | |||||||||||
Total other income | $ | 2,049 | $ | 6,385 | $ | 15,158 | $ | 5,077 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating Revenue | |||||||||||||||
Residential real estate | $ | 3,122 | $ | 4,861 | $ | 15,905 | $ | 14,291 | |||||||
Commercial real estate | 631 | — | 631 | 4,660 | |||||||||||
Resorts and leisure | 19,046 | 18,537 | 47,590 | 45,657 | |||||||||||
Leasing operations | 2,655 | 2,528 | 7,336 | 6,741 | |||||||||||
Forestry | 1,509 | 1,885 | 5,233 | 11,355 | |||||||||||
Other | 229 | 19 | 302 | 64 | |||||||||||
Total operating revenue | $ | 27,192 | $ | 27,830 | $ | 76,997 | $ | 82,768 | |||||||
Income (loss) before income taxes: | |||||||||||||||
Residential real estate | $ | 237 | $ | (1,622 | ) | $ | 4,676 | $ | (1,617 | ) | |||||
Commercial real estate | (496 | ) | (654 | ) | (1,644 | ) | (1,265 | ) | |||||||
Resorts and leisure | 2,420 | 2,607 | 3,414 | 3,142 | |||||||||||
Leasing operations | 454 | 517 | 75 | 1,001 | |||||||||||
Forestry | 1,282 | 1,759 | 4,376 | 10,167 | |||||||||||
Other | (253 | ) | 1,395 | 7,103 | (8,623 | ) | |||||||||
Total income before income taxes | $ | 3,644 | $ | 4,002 | $ | 18,000 | $ | 2,805 | |||||||
September 30, 2016 | December 31, 2015 | ||||||
Total Assets: | |||||||
Residential real estate | $ | 108,514 | $ | 109,791 | |||
Commercial real estate | 60,484 | 62,649 | |||||
Resorts and leisure | 72,720 | 75,441 | |||||
Leasing operations | 81,188 | 81,400 | |||||
Forestry | 20,213 | 20,244 | |||||
Other | 643,310 | 633,217 | |||||
Total assets | $ | 986,429 | $ | 982,742 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Segment Operating Revenue | |||||||||||
Residential real estate | 11.5 | % | 17.4 | % | 20.7 | % | 17.3 | % | |||
Commercial real estate | 2.3 | % | — | % | 0.8 | % | 5.6 | % | |||
Resorts and leisure | 70.0 | % | 66.6 | % | 61.8 | % | 55.2 | % | |||
Leasing operations | 9.8 | % | 9.1 | % | 9.5 | % | 8.1 | % | |||
Forestry | 5.6 | % | 6.8 | % | 6.8 | % | 13.7 | % | |||
Other | 0.8 | % | 0.1 | % | 0.4 | % | 0.1 | % | |||
Consolidated operating revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Revenue: | |||||||||||||||
Real estate revenue | $ | 4.2 | $ | 4.9 | $ | 18.0 | $ | 24.3 | |||||||
Resorts and leisure revenue | 19.0 | 18.5 | 47.6 | 45.7 | |||||||||||
Leasing revenue | 2.7 | 2.5 | 7.4 | 6.8 | |||||||||||
Timber revenue | 1.3 | 1.9 | 4.0 | 6.0 | |||||||||||
Total | 27.2 | 27.8 | 77.0 | 82.8 | |||||||||||
Expenses: | |||||||||||||||
Cost of real estate revenue | 2.0 | 2.5 | 6.7 | 12.3 | |||||||||||
Cost of resorts and leisure revenue | 15.4 | 14.7 | 40.4 | 38.2 | |||||||||||
Cost of leasing revenue | 0.7 | 0.7 | 2.2 | 2.0 | |||||||||||
Cost of timber revenue | 0.2 | 0.2 | 0.6 | 0.6 | |||||||||||
Other operating and corporate expenses | 5.2 | 9.9 | 17.7 | 24.7 | |||||||||||
Depreciation, depletion and amortization | 2.1 | 2.2 | 6.5 | 7.3 | |||||||||||
Total expenses | 25.6 | 30.2 | 74.1 | 85.1 | |||||||||||
Operating income (loss) | 1.6 | (2.4 | ) | 2.9 | (2.3 | ) | |||||||||
Other income (expense): | |||||||||||||||
Investment income, net | 4.7 | 9.1 | 10.4 | 19.8 | |||||||||||
Interest expense | (3.1 | ) | (2.9 | ) | (9.3 | ) | (8.4 | ) | |||||||
Claim settlement | — | — | 12.5 | — | |||||||||||
Other, net | 0.4 | 0.2 | 1.5 | (6.3 | ) | ||||||||||
Total other income | 2.0 | 6.4 | 15.1 | 5.1 | |||||||||||
Income before income taxes | 3.6 | 4.0 | 18.0 | 2.8 | |||||||||||
Income tax expense | (0.9 | ) | (1.2 | ) | (5.2 | ) | (2.0 | ) | |||||||
Net income | $ | 2.7 | $ | 2.8 | $ | 12.8 | $ | 0.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2016 | % (1) | 2015 | % (1) | 2016 | % (1) | 2015 | % (1) | ||||||||||||||||||||
Dollars in millions | Dollars in millions | ||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Residential real estate revenue | $ | 3.1 | 73.8 | % | $ | 4.9 | 100.0 | % | $ | 15.9 | 88.4 | % | $ | 14.3 | 58.9 | % | |||||||||||
Commercial real estate revenue | 0.6 | 14.3 | % | — | — | % | 0.6 | 3.3 | % | 4.7 | 19.3 | % | |||||||||||||||
Rural land and other revenue | 0.5 | 11.9 | % | — | — | % | 1.5 | 8.3 | % | 5.3 | 21.8 | % | |||||||||||||||
Real estate revenue | $ | 4.2 | 100.0 | % | $ | 4.9 | 100.0 | % | $ | 18.0 | 100.0 | % | $ | 24.3 | 100.0 | % | |||||||||||
Gross profit: | |||||||||||||||||||||||||||
Residential real estate revenue | $ | 1.8 | 58.1 | % | $ | 2.4 | 49.0 | % | $ | 10.1 | 63.5 | % | $ | 6.8 | 47.6 | % | |||||||||||
Commercial real estate revenue | — | — | % | — | — | % | — | — | % | 0.5 | 10.6 | % | |||||||||||||||
Rural land and other revenue | 0.4 | 80.0 | % | — | — | % | 1.2 | 80.0 | % | 4.7 | 88.7 | % | |||||||||||||||
Gross profit | $ | 2.2 | 52.4 | % | $ | 2.4 | 49.0 | % | $ | 11.3 | 62.8 | % | $ | 12.0 | 49.4 | % |
(1) | Calculated percentage of total real estate revenue and the respective gross margin percentage. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Dollars in millions | |||||||||||||||
Resorts and leisure revenue | $ | 19.0 | $ | 18.5 | $ | 47.6 | $ | 45.7 | |||||||
Gross profit | $ | 3.6 | $ | 3.8 | $ | 7.2 | $ | 7.5 | |||||||
Gross margin | 18.9 | % | 20.5 | % | 15.1 | % | 16.4 | % | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Dollars in millions | |||||||||||||||
Leasing revenue | $ | 2.7 | $ | 2.5 | $ | 7.4 | $ | 6.8 | |||||||
Gross profit | $ | 2.0 | $ | 1.8 | $ | 5.2 | $ | 4.8 | |||||||
Gross margin | 74.1 | % | 72.0 | % | 70.3 | % | 70.6 | % | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Dollars in millions | |||||||||||||||
Timber revenue | $ | 1.3 | $ | 1.9 | $ | 4.0 | $ | 6.0 | |||||||
Gross profit | $ | 1.1 | $ | 1.7 | $ | 3.4 | $ | 5.4 | |||||||
Gross margin | 84.6 | % | 89.5 | % | 85.0 | % | 90.0 | % | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Employee costs | $ | 1.8 | $ | 4.5 | $ | 5.3 | $ | 10.0 | |||||||
401(k) contribution / pension costs | — | — | 1.4 | 1.1 | |||||||||||
Non-cash stock compensation costs | — | — | 0.1 | 0.2 | |||||||||||
Property taxes and insurance | 1.4 | 1.4 | 4.2 | 4.4 | |||||||||||
Professional fees | 1.2 | 2.8 | 3.8 | 5.6 | |||||||||||
Marketing and owner association costs | 0.3 | 0.3 | 1.0 | 1.0 | |||||||||||
Occupancy, repairs and maintenance | 0.2 | 0.2 | 0.5 | 0.7 | |||||||||||
Other | 0.3 | 0.7 | 1.4 | 1.7 | |||||||||||
Total other operating and corporate expense | $ | 5.2 | $ | 9.9 | $ | 17.7 | $ | 24.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Net investment income from available-for-sale securities | |||||||||||||||
Interest and dividend income | $ | 1.5 | $ | 1.1 | $ | 2.0 | $ | 5.5 | |||||||
Accretion income | 1.0 | 0.6 | 2.0 | 2.1 | |||||||||||
Realized gains on the sale of investments | — | 5.3 | — | 5.3 | |||||||||||
Total net investment income from available-for-sale securities | 2.5 | 7.0 | 4.0 | 12.9 | |||||||||||
Interest income from investments in special purpose entities | 2.1 | 2.1 | 6.2 | 6.2 | |||||||||||
Interest accrued on notes receivable and other interest | 0.1 | — | 0.2 | 0.7 | |||||||||||
Total investment income, net | $ | 4.7 | $ | 9.1 | $ | 10.4 | $ | 19.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity | $ | 2.3 | $ | 2.2 | $ | 6.7 | $ | 6.6 | |||||||
Interest expense | 0.8 | 0.7 | 2.6 | 1.8 | |||||||||||
Total interest expense | $ | 3.1 | $ | 2.9 | $ | 9.3 | $ | 8.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Revenue: | |||||||||||||||
Real estate revenue | $ | 2.7 | $ | 4.4 | $ | 14.4 | $ | 13.0 | |||||||
Other revenue | 0.4 | 0.5 | 1.5 | 1.3 | |||||||||||
Total revenue | 3.1 | 4.9 | 15.9 | 14.3 | |||||||||||
Expenses: | |||||||||||||||
Cost of real estate and other revenue | 1.3 | 2.5 | 5.8 | 7.5 | |||||||||||
Other operating expenses | 1.3 | 3.6 | 4.2 | 8.0 | |||||||||||
Depreciation and amortization | — | 0.1 | 0.3 | 0.4 | |||||||||||
Total expenses | 2.6 | 6.2 | 10.3 | 15.9 | |||||||||||
Operating income (loss) | 0.5 | (1.3 | ) | 5.6 | (1.6 | ) | |||||||||
Other expense | (0.3 | ) | (0.3 | ) | (0.9 | ) | — | ||||||||
Net income (loss) before income taxes | $ | 0.2 | $ | (1.6 | ) | $ | 4.7 | $ | (1.6 | ) |
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||
Units Sold | Revenue | Cost of Revenue | Gross Profit | Gross Margin | Units Sold | Revenue | Cost of Revenue | Gross Profit | Gross Margin | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Resort homesites | 2 | $ | 1.2 | $ | 0.3 | $ | 0.9 | 75.0 | % | 3 | $ | 1.4 | $ | 0.4 | $ | 1.0 | 71.4 | % | |||||||||||||||||
Primary homesites | 32 | 1.5 | 0.7 | 0.8 | 53.3 | % | 31 | 3.0 | 1.7 | 1.3 | 43.3 | % | |||||||||||||||||||||||
Total | 34 | $ | 2.7 | $ | 1.0 | $ | 1.7 | 63.0 | % | 34 | $ | 4.4 | $ | 2.1 | $ | 2.3 | 52.3 | % |
Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||
Units Sold | Revenue | Cost of Revenue | Gross Profit | Gross Margin | Units Sold | Revenue | Cost of Revenue | Gross Profit | Gross Margin | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Resort homesites | 10 | $ | 5.8 | $ | 2.2 | $ | 3.6 | 62.1 | % | 17 | $ | 5.9 | $ | 2.1 | $ | 3.8 | 64.4 | % | |||||||||||||||||
Resort home | — | — | — | — | — | % | 1 | 0.8 | 0.8 | — | — | % | |||||||||||||||||||||||
Primary homesites | 69 | 5.2 | 2.6 | 2.6 | 50.0 | % | 104 | 6.3 | 3.6 | 2.7 | 42.9 | % | |||||||||||||||||||||||
Land sale | N/A | 3.4 | 0.1 | 3.3 | 97.1 | % | N/A | — | — | — | — | % | |||||||||||||||||||||||
Total | 79 | $ | 14.4 | $ | 4.9 | $ | 9.5 | 66.0 | % | 122 | $ | 13.0 | $ | 6.5 | $ | 6.5 | 50.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Revenue: | |||||||||||||||
Real estate revenue | $ | 0.6 | $ | — | $ | 0.6 | $ | 4.7 | |||||||
Expenses: | |||||||||||||||
Cost of real estate revenue | 0.6 | — | 0.6 | 4.2 | |||||||||||
Other operating expenses | 0.5 | 0.6 | 1.6 | 1.7 | |||||||||||
Total expenses | 1.1 | 0.6 | 2.2 | 5.9 | |||||||||||
Operating loss | (0.5 | ) | (0.6 | ) | (1.6 | ) | (1.2 | ) | |||||||
Other expense | — | (0.1 | ) | — | (0.1 | ) | |||||||||
Net loss before income taxes | $ | (0.5 | ) | $ | (0.7 | ) | $ | (1.6 | ) | $ | (1.3 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Revenue: | |||||||||||||||
Resorts and leisure revenue | $ | 19.0 | $ | 18.5 | $ | 47.6 | $ | 45.7 | |||||||
Expenses: | |||||||||||||||
Cost of resorts and leisure revenue | 15.4 | 14.7 | 40.4 | 38.2 | |||||||||||
Other operating expenses | 0.1 | 0.1 | 0.5 | 0.3 | |||||||||||
Depreciation | 1.1 | 1.1 | 3.3 | 4.0 | |||||||||||
Total expenses | 16.6 | 15.9 | 44.2 | 42.5 | |||||||||||
Net income before income taxes | $ | 2.4 | $ | 2.6 | $ | 3.4 | $ | 3.2 |
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | ||||||||||||||||||||
Revenue | Gross Profit | Gross Margin | Revenue | Gross Profit | Gross Margin | ||||||||||||||||
Dollars in millions | |||||||||||||||||||||
Resorts, vacation rentals and other management services | $ | 14.6 | $ | 3.0 | 20.5 | % | $ | 14.1 | $ | 3.3 | 23.4 | % | |||||||||
Clubs | 3.6 | 0.4 | 11.1 | % | 3.4 | 0.2 | 5.9 | % | |||||||||||||
Marinas | 0.8 | 0.2 | 25.0 | % | 1.0 | 0.3 | 30.0 | % | |||||||||||||
Total | $ | 19.0 | $ | 3.6 | 18.9 | % | $ | 18.5 | $ | 3.8 | 20.5 | % |
Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | ||||||||||||||||||||
Revenue | Gross Profit | Gross Margin | Revenue | Gross Profit | Gross Margin | ||||||||||||||||
Dollars in millions | |||||||||||||||||||||
Resorts, vacation rentals and other management services | $ | 35.3 | $ | 5.9 | 16.7 | % | $ | 33.8 | $ | 6.1 | 18.0 | % | |||||||||
Clubs | 10.2 | 0.8 | 7.8 | % | 9.5 | 0.8 | 8.4 | % | |||||||||||||
Marinas | 2.1 | 0.5 | 23.8 | % | 2.4 | 0.6 | 25.0 | % | |||||||||||||
Total | $ | 47.6 | $ | 7.2 | 15.1 | % | $ | 45.7 | $ | 7.5 | 16.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Revenue: | |||||||||||||||
Leasing revenue | $ | 2.7 | $ | 2.5 | $ | 7.4 | $ | 6.8 | |||||||
Expenses: | |||||||||||||||
Cost of leasing revenue | 0.7 | 0.7 | 2.2 | 2.0 | |||||||||||
Other operating expenses | 0.2 | 0.2 | 1.1 | 0.6 | |||||||||||
Depreciation | 0.8 | 0.8 | 2.4 | 2.3 | |||||||||||
Total expenses | 1.7 | 1.7 | 5.7 | 4.9 | |||||||||||
Operating income | 1.0 | 0.8 | 1.7 | 1.9 | |||||||||||
Other expense | (0.5 | ) | (0.3 | ) | (1.6 | ) | (0.8 | ) | |||||||
Net income before income taxes | $ | 0.5 | $ | 0.5 | $ | 0.1 | $ | 1.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
In millions | |||||||||||||||
Revenue: | |||||||||||||||
Timber revenue | $ | 1.3 | $ | 1.9 | $ | 4.0 | $ | 6.0 | |||||||
Real estate revenue - Other rural land revenue | 0.2 | — | 1.2 | 5.3 | |||||||||||
Total revenue | 1.5 | 1.9 | 5.2 | 11.3 | |||||||||||
Expenses: | |||||||||||||||
Cost of timber revenue | 0.2 | 0.2 | 0.6 | 0.6 | |||||||||||
Cost of real estate revenue - other rural land revenue | 0.1 | — | 0.3 | 0.6 | |||||||||||
Other operating expenses | 0.1 | 0.1 | 0.4 | 0.4 | |||||||||||
Depreciation and depletion | 0.1 | 0.2 | 0.4 | 0.5 | |||||||||||
Total expenses | 0.5 | 0.5 | 1.7 | 2.1 | |||||||||||
Operating income | 1.0 | 1.4 | 3.5 | 9.2 | |||||||||||
Other income | 0.3 | 0.4 | 0.8 | 0.9 | |||||||||||
Net income before income taxes | $ | 1.3 | $ | 1.8 | $ | 4.3 | $ | 10.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
Pine pulpwood | 62,000 | 73.8 | % | 73,000 | 67.0 | % | 166,000 | 72.5 | % | 216,000 | 63.9 | % | |||||||||||
Pine sawtimber | 19,000 | 22.6 | % | 28,000 | 25.7 | % | 51,000 | 22.3 | % | 95,000 | 28.1 | % | |||||||||||
Pine grade logs | 3,000 | 3.6 | % | 8,000 | 7.3 | % | 10,000 | 4.4 | % | 24,000 | 7.1 | % | |||||||||||
Other | — | — | % | — | — | % | 2,000 | 0.8 | % | 3,000 | 0.9 | % | |||||||||||
Total | 84,000 | 100.0 | % | 109,000 | 100.0 | % | 229,000 | 100.0 | % | 338,000 | 100.0 | % |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Net cash provided by operating activities | $ | 10.6 | $ | 35.6 | |||
Net cash (used in) provided by investing activities | (42.9 | ) | 387.0 | ||||
Net cash used in financing activities | (15.2 | ) | (299.2 | ) | |||
Net (decrease) increase in cash and cash equivalents | (47.5 | ) | 123.4 | ||||
Cash and cash equivalents at beginning of the period | 212.8 | 34.5 | |||||
Cash and cash equivalents at end of the period | $ | 165.3 | $ | 157.9 |
• | our expectations concerning our future business strategy and our intent to seek higher and better uses for our real estate assets; |
• | our beliefs regarding growth in the retirement demographic and the strategic opportunities provided to us by such growing retirement demographic; |
• | our expectations regarding the wide range of residential and commercial uses of our Bay-Walton Sector Plan land holdings, including to serve the active adult retirement market; |
• | our expectations regarding the amount and timing of the impact fees which we will receive in connection with the RiverTown Sale; |
• | our expectation regarding our liquidity or ability to satisfy our working capital needs, expected capital expenditures and principal and interest payments on our long term debt; |
• | our estimates and assumptions regarding the installment notes and the Timber Note; |
• | our expectation regarding the impact of pending litigation, claims, other disputes or governmental proceedings, on our cash flows, financial condition or results of operations; and |
• | any changes in our strategic objectives and our ability to successfully implement such strategic objectives; |
• | any potential negative impact of our longer-term property development strategy, including losses and negative cash flows for an extended period of time if we continue with the self-development of recently granted entitlements; |
• | our ability and the ability of our investment advisor to identify and acquire suitable investments for our investment portfolio that meet our risk and return criteria; |
• | significant decreases in the market value of our investments in securities or any other investments; |
• | our ability to capitalize on strategic opportunities presented by a growing retirement demographic; |
• | our ability to accurately predict market demand for the range of potential residential and commercial uses of our real estate, including our Bay-Walton Sector holdings; |
• | volatility in the consistency and pace of our residential real estate revenue; |
• | any downturns in real estate markets in Florida or across the nation; |
• | our dependence on the real estate industry and the cyclical nature of our real estate operations; |
• | our ability to successfully and timely obtain land use entitlements and construction financing, maintain compliance with state law requirements and address issues that arise in connection with the use and development of our land, including the permits required for mixed-use and active adult communities; |
• | changes in laws, regulations or the regulatory environment affecting the development of real estate; |
• | our ability to effectively deploy and invest our assets, including our available-for-sale securities; |
• | our ability to effectively manage our real estate assets, as well as the ability of our joint venture partner to effectively manage the day-to-day activities of the Pier Park North joint venture; |
• | our ability to successfully estimate the amount and timing of the impact fees we will receive in connection with the RiverTown Sale; |
• | increases in operating costs, including costs related to real estate taxes, owner association fees, construction materials, labor and insurance and our ability to manage our cost structure; |
• | the sufficiency of our current cash position, anticipated cash flows from cash equivalents and short term investments and cash generated from operations to satisfy our anticipated working capital needs, capital expenditures and principal and interest payments; |
• | our ability to anticipate the impact of pending environmental litigation matters or governmental proceedings on our financial condition or results of operations; |
• | the expense, management distraction and possible liability associated with litigation, claims, other disputes or governmental proceedings; |
• | potential liability under environmental or construction laws, or other laws or regulations; |
• | our ability to receive payments of settlement amounts due under our claims settlement receivable; |
• | our ability to successfully estimate the impact of certain accounting and tax matters that arise from the installment notes and the Timber Note; and |
• | the performance of the surplus assets in the Pension Plan may not be what we expected. |
Exhibit Number | Description | |
*10.49c | Amendment to Investment Management Agreement, dated, November 1, 2016, between Fairholme Trust Company, LLC and The St. Joe Company. | |
*31.1 | Certification by Jorge Gonzalez, President, Chief Executive Officer and Director, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
*31.2 | Certification by Marek Bakun, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
*32.1 | Certification by Jorge Gonzalez, President, Chief Executive Officer and Director, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
*32.2 | Certification by Marek Bakun, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
**101.INS | XBRL Instance Document. | |
**101.SCH | XBRL Taxonomy Extension Schema Document. | |
**101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
**101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
**101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
**101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. |
** | Furnished herewith. |
THE ST. JOE COMPANY | ||
Date: | November 3, 2016 | /s/ Jorge Gonzalez |
Jorge Gonzalez | ||
President and Chief Executive Officer | ||
Date: | November 3, 2016 | /s/ Marek Bakun |
Marek Bakun | ||
Chief Financial Officer | ||
FAIRHOLME TRUST COMPANY, LLC | THE ST. JOE COMPANY | |||
By: | /s/ Wayne Kellner | By: | /s/ Marek Bakun | |
Name: | Wayne Kellner | Name: | Marek Bakun | |
Title: | Chief Financial Officer | Title: | Executive Vice President and Chief Financial Officer |
FAIRHOLME TRUST COMPANY, LLC | THE ST. JOE COMPANY | |||
By: | /s/ Wayne Kellner | By: | /s/ Marek Bakun | |
Name: | Wayne Kellner | Name: | Marek Bakun | |
Title: | Chief Financial Officer | Title: | Executive Vice President and Chief Financial Officer |
By: | /s/ Marek Bakun |
Name: | Marek Bakun |
Title: | Executive Vice President and Chief Financial Officer |
By: | /s/ Marek Bakun |
Name: | Marek Bakun |
Title: | Manager |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2016 of The St. Joe Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Jorge Gonzalez | |
Jorge Gonzalez President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2016 of The St. Joe Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Marek Bakun | |
Marek Bakun Chief Financial Officer |
/s/ Jorge Gonzalez | |
Jorge Gonzalez President and Chief Executive Officer |
/s/ Marek Bakun | |
Marek Bakun Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 31, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ST JOE CO | |
Trading Symbol | JOE | |
Entity Central Index Key | 0000745308 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Common Stock, Shares Outstanding (in shares) | 74,342,826 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Property and equipment, Accumulated depreciation | $ 57.2 | $ 57.1 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, issued (in shares) | 74,342,826 | 92,332,565 |
Common stock, outstanding (in shares) | 74,342,826 | 75,329,557 |
Treasury stock (in shares) | 0 | 17,003,008 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Revenue: | ||||
Real estate revenue | $ 4,163,000 | $ 4,880,000 | $ 17,988,000 | $ 24,337,000 |
Resorts and leisure revenue | 19,046,000 | 18,537,000 | 47,590,000 | 45,657,000 |
Leasing revenue | 2,685,000 | 2,528,000 | 7,366,000 | 6,741,000 |
Timber revenue | 1,298,000 | 1,885,000 | 4,053,000 | 6,033,000 |
Total revenue | 27,192,000 | 27,830,000 | 76,997,000 | 82,768,000 |
Expenses: | ||||
Cost of real estate revenue | 1,949,000 | 2,480,000 | 6,688,000 | 12,204,000 |
Cost of resorts and leisure revenue | 15,438,000 | 14,720,000 | 40,402,000 | 38,220,000 |
Cost of leasing revenue | 710,000 | 734,000 | 2,219,000 | 1,996,000 |
Cost of timber revenue | 213,000 | 201,000 | 626,000 | 643,000 |
Other operating and corporate expenses | 5,193,000 | 9,847,000 | 17,736,000 | 24,696,000 |
Depreciation, depletion and amortization | 2,094,000 | 2,231,000 | 6,484,000 | 7,281,000 |
Impairment losses | 400,000 | 0 | 400,000 | 0 |
Total expenses | 25,597,000 | 30,213,000 | 74,155,000 | 85,040,000 |
Operating income (loss) | 1,595,000 | (2,383,000) | 2,842,000 | (2,272,000) |
Other income (expense): | ||||
Investment income, net | 4,689,000 | 9,125,000 | 10,378,000 | 19,776,000 |
Interest expense | (3,075,000) | (2,875,000) | (9,255,000) | (8,397,000) |
Claim settlement | 0 | 0 | 12,548,000 | 0 |
Other, net | 435,000 | 135,000 | 1,487,000 | (6,302,000) |
Total other income | 2,049,000 | 6,385,000 | 15,158,000 | 5,077,000 |
Income before income taxes | 3,644,000 | 4,002,000 | 18,000,000 | 2,805,000 |
Income tax expense | (948,000) | (1,244,000) | (5,170,000) | (2,034,000) |
Net income | 2,696,000 | 2,758,000 | 12,830,000 | 771,000 |
Net loss attributable to non-controlling interest | 15,000 | 14,000 | 356,000 | 39,000 |
Net income attributable to the Company | $ 2,711,000 | $ 2,772,000 | $ 13,186,000 | $ 810,000 |
Basic and Diluted | ||||
Weighted average shares outstanding (in shares) | 74,342,826 | 92,026,894 | 74,496,058 | 92,088,253 |
Net income per share attributable to the Company (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.18 | $ 0.01 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income: | $ 2,696 | $ 2,758 | $ 12,830 | $ 771 |
Other comprehensive income, net of tax: | ||||
Net unrealized gains on available-for-sale investments | 3,257 | 3,710 | 3,259 | 6,956 |
Reclassification of realized gains included in earnings | (40) | (5,276) | (40) | (5,276) |
Total before income taxes | 3,217 | (1,566) | 3,219 | 1,680 |
Income tax (expense) benefit | (1,238) | 1,057 | (1,239) | (216) |
Total other comprehensive income (loss), net of tax | 1,979 | (509) | 1,980 | 1,464 |
Total comprehensive income, net of tax | $ 4,675 | $ 2,249 | $ 14,810 | $ 2,235 |
Nature of Operations |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The St. Joe Company together with its consolidated subsidiaries (the “Company”) is a real estate development, asset management and operating company with real estate assets and operations currently concentrated primarily between Tallahassee and Destin, Florida. The Company conducts primarily all of its business in the following five reportable operating segments: 1) residential real estate, 2) commercial real estate, 3) resorts and leisure, 4) leasing operations and 5) forestry. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries. The equity method of accounting is used for investments in which the Company has significant influence, but not a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. The December 31, 2015 balance sheet amounts have been derived from the Company’s December 31, 2015 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported stockholders’ equity or net income. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results of the Company that may be expected for the year ending December 31, 2016. A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The Company consolidates VIEs when it is the primary beneficiary of the VIE, including real estate joint ventures determined to be VIEs (see Note 9, Real Estate Joint Ventures) and VIEs involved in a 2014 real estate sale. The statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2015 annual financial statements. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates. Recently Adopted Accounting Pronouncements Consolidation In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-02 that amends the existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination and (iv) certain investment funds. These changes are expected to limit the number of consolidation models and place more emphasis on risk of loss when determining a controlling financial interest. The Company adopted the new guidance as of January 1, 2016. The adoption of this guidance had no impact on the Company’s condensed consolidated balance sheets, statements of income, statements of comprehensive income, statements of cash flows or notes to the condensed consolidated financial statements. Debt issuance costs In April 2015, the FASB issued ASU 2015-03 that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendment does not affect the recognition and measurement guidance for debt issuance costs. As of January 1, 2016, the Company adopted this ASU, which required retrospective application and resulted in the reclassification of debt issuance costs of $2.1 million from other assets to a reduction of $0.7 million in debt and a reduction of $1.4 million in Senior Notes held by special purpose entity in the Company’s condensed consolidated balance sheet as of December 31, 2015. Other than this change in presentation, this ASU did not have an impact on the Company’s condensed consolidated financial condition, results of operations or cash flows. See Note 10, Debt for more information. Recently Issued Accounting Pronouncements Revenue recognition In May 2014, the FASB issued an ASU that establishes the principles used to recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 that further clarifies the implementation guidance on principal versus agent considerations. The new guidance will be effective for annual and interim periods beginning after December 15, 2017. Early application will be permitted, but not before annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of this guidance will have on its financial condition, results of operations and cash flows. Financial Instruments In January 2016, the FASB issued ASU 2016-01 that amends existing guidance to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The new guidance will require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in results of operations. Additionally, certain disclosure requirements and other aspects of accounting for financial instruments may change as a result of the new guidance, which is effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact that the adoption of the new guidance will have on its financial condition, results of operations and cash flows. Leases In February 2016, the FASB issued ASU 2016-02 that amends the existing accounting standards for lease accounting, including requiring lessees to recognize both finance and operating leases with terms of more than 12 months on the balance sheet. The accounting applied by a lessor is largely unchanged from existing guidance. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The new guidance will be effective for annual and interim periods beginning after December 15, 2018 and requires a modified retrospective adoption. The Company is currently evaluating the impact that the adoption of this guidance will have on its financial condition, results of operations and cash flows. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13 that requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected and requires that credit losses from available-for-sale debt securities be presented as an allowance for credit losses. This new guidance will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of the new guidance will have on its financial condition, results of operations and cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15 that amends the classification of certain cash receipts and cash payments, to reduce the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the impact that the adoption of the new guidance will have on its financial condition, results of operations and cash flows. |
Investment in Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Real Estate | Investment in Real Estate Real estate by property type and segment includes the following:
Development property consists of land the Company is developing or intends to develop for sale or future operations. Residential real estate includes mixed-use resort, primary and seasonal residential communities and includes costs directly associated with the land, development and construction of these communities, including common development costs such as roads, utilities and amenities and indirect costs such as development overhead, capitalized interest, marketing and project administration. Commercial real estate includes land for commercial and industrial uses, including land holdings near the Northwest Florida Beaches International Airport and Port of Port St. Joe, and includes costs directly associated with the land and development costs for these properties, which also include common development costs such as roads and utilities. Resorts and leisure development property consists of improvements and expansion of existing beach club property. Leasing development property primarily includes the land development and construction for the consolidated joint venture at Pier Park North. Development property in the leasing operations and resorts and leisure segments will be reclassified as operating property as it is placed into service. Operating property includes property that the Company uses for operations and activities. Residential real estate operating property consists primarily of residential utility assets. The resorts and leisure operating property includes the WaterColor Inn, golf courses, a beach club and marinas. Leasing operating property includes property developed or purchased by the Company and used for retail and commercial rental purposes, including property in the consolidated joint venture at Pier Park North. Forestry operating property includes the Company’s timberlands. Operating property may be sold in the future as part of the Company’s principal real estate business. The Company had no capitalized indirect development costs during the three and nine months ended September 30, 2016, and $0.1 million and $0.2 million during the three and nine months ended September 30, 2015, respectively, primarily related to the consolidated joint venture at Pier Park North. |
Impairment of Long Lived Assets |
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Sep. 30, 2016 | |||||||||||||||||||||||||
Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||
Impairment of Long Lived Assets | Impairment of Long Lived Assets The Company reviews its long-lived assets for impairment quarterly to determine whether events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Long-lived assets include the Company’s investments in operating and development property and property and equipment. As part of the Company’s review for impairment of its long-lived assets, the Company reviews long-lived asset’s carrying value, current period actual financial results as compared to prior period and forecast contained in the Company’s business plan and any other events or changes in circumstances to identify whether an indicator of potential impairment may exist. Some of the events or changes in circumstances that are considered by the Company as indicators of potential impairment include:
The Company uses varying methods to determine if an impairment exists, such as (i) considering indicators of potential impairment, (ii) analyzing expected future cash flows and comparing the expected future undiscounted cash flows of the property to its carrying value or (iii) determining market resale values. During the three and nine months ended September 30, 2016, the Company recorded an impairment charge of $0.4 million, included in cost of real estate revenue, related to a commerce park. During the three and nine months ended September 30, 2015, there were no impairments. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Investments and restricted investments consist of available-for-sale securities and are recorded at fair value, which is based on quoted market prices and pricing data from external pricing services that use prices observed for recently executed market transactions. Unrealized gains and temporary losses on investments, net of tax, are recorded in other comprehensive income (loss). Realized gains and losses are determined using the specific identification method. The amortized cost of debt securities are adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method. Such amortization and accretion is included in investment income, net. In addition, at September 30, 2016, the Company had investments in short term commercial paper that are classified as cash equivalents, since they had maturity dates of ninety days or less from the date of purchase. At September 30, 2016, investments and restricted investments classified as available-for-sale securities were as follows:
At December 31, 2015, investments and restricted investments classified as available-for-sale securities were as follows:
Fairholme Trust Company, LLC, or one of its affiliates (“Fairholme”), has served as an investment advisor to the Company since April 2013. As of September 30, 2016, funds managed by Fairholme beneficially owned approximately 32.3% of the Company’s common stock. Mr. Bruce Berkowitz is the Chief Investment Officer of Fairholme Capital Management, L.L.C., a director of Fairholme Trust Company, LLC and the Chairman of our Board of Directors. Mr. Cesar Alvarez also serves as a director of Fairholme Trust Company, LLC and is a member of our Board of Directors. Fairholme does not receive any compensation for services as the Company’s investment advisor. Pursuant to the terms of the Investment Management Agreement with Fairholme, as amended (the “Agreement”), Fairholme agreed to supervise and direct the investments of an investment account established by the Company in accordance with the investment guidelines and restrictions approved by the Investment Committee of the Company’s Board of Directors. The investment guidelines are set forth in the Agreement and require that, as of the date of any investment: (i) no more than 15% of the investment account may be invested in securities of any one issuer (excluding the U.S. Government) and (ii) any investment in any one issuer (excluding the U.S. Government) that exceeds 10%, but not 15%, requires the consent of at least two members of the Investment Committee. Effective November 1, 2016, the Company and Fairholme entered into an Amendment (the “Amendment”) to the Agreement, pursuant to which the Company modified the investment guidelines and restrictions described in the Agreement to (i) decrease from at least 50% to 25% the amount of the investment account that must be held in cash and cash equivalents, (ii) permit the investment account to be invested in common equity securities; however, common stock investments shall be limited to exchange-traded common equities, shall not exceed 5% ownership of a single issuer and, cumulatively, the common stock held in the Company’s investment portfolio shall not exceed $100.0 million market value, and (iii) provide that the aggregate market value of investments in common stock, preferred stock or other equity investments cannot exceed 25% of the market value of the Company’s investment portfolio at the time of purchase. All other material investment guidelines remain the same. As of September 30, 2016, the investment account included $99.7 million of U.S. Treasury securities, $113.7 million of corporate debt securities and $23.2 million of preferred stock investments (all of which are classified within investments on the Company’s condensed consolidated balance sheets). $9.1 million of the $113.7 million corporate debt securities and $0.2 million of the $23.2 million preferred stock are issued by Sears Holdings Corp or affiliates, which may be deemed an affiliate of Fairholme. During the three months ended September 30, 2016, realized gains from the sale of available-for-sale securities were less than $0.1 million, proceeds from the sale of available-for-sale securities were $74.9 million and there were no proceeds from the maturity of available-for-sale securities. During the nine months ended September 30, 2016, realized gains from the sale of available for-sale securities were less than $0.1 million, proceeds from the sale of available-for-sale securities were $83.3 million and proceeds from the maturity of available-for-sale securities were $185.0 million. During the three months ended September 30, 2015, realized gains from the sale of available-for-sale securities were $5.3 million, proceeds from the sale of available-for-sale securities were $182.7 million and there were no proceeds from the maturity of available-for-sale securities. During the nine months ended September 30, 2015, realized gains from the sale of available for-sale securities were $5.3 million, proceeds from the sale of available-for-sale securities were $323.7 million and proceeds from the maturity of available-for-sale securities were $310.0 million. As of September 30, 2016 and December 31, 2015, certain of the Company’s debt securities and preferred stock had unrealized losses of $0.7 million and $1.1 million, respectively, that were deemed temporary and included in accumulated other comprehensive income (loss). The following table provides the debt securities and preferred stock unrealized loss position and related fair values:
As of September 30, 2016 and December 31, 2015, the Company did not intend to sell the investments with unrealized losses and it is more likely than not that the Company will not be required to sell any of these securities prior to their anticipated recovery, which could be maturity; therefore, the Company does not believe that its investment in the debt securities and preferred stock was other-than-temporarily impaired at September 30, 2016 and December 31, 2015. The net carrying value and estimated fair value of investments and restricted investments classified as available-for-sale at September 30, 2016, by contractual maturity are shown in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations.
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Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1. Quoted prices in active markets for identical assets or liabilities; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, such as internally-developed valuation models which require the reporting entity to develop its own assumptions. The financial instruments measured at fair value on a recurring basis at September 30, 2016 were as follows:
The financial instruments measured at fair value on a recurring basis at December 31, 2015 were as follows:
Money market funds, U.S. Treasury securities, commercial paper, certain corporate debt securities and certain preferred stock are measured based on quoted market prices in an active market and categorized within level 1 of the fair value hierarchy. Money market funds and commercial paper with a maturity date of ninety days or less from the date of purchase are classified as cash equivalents in the Company’s condensed consolidated balance sheets. Certain corporate debt securities and certain preferred stock are not traded on a nationally recognized exchange but rather are traded in the U.S. over-the-counter market where there is less trading activity and these are measured primarily using pricing data from external pricing services that use prices observed for recently executed market transactions. For these reasons, the Company has determined that certain corporate debt securities and certain preferred stock are categorized as level 2 financial instruments since their fair values were determined from market inputs in an inactive market. Restricted investments include certain of the surplus assets that were transferred from the Company’s Pension Plan to a suspense account in the Company’s 401(k) Plan in December 2014. The Company has retained the risks and rewards of ownership of these assets; therefore, the assets held in the suspense account are included in the Company’s condensed consolidated financial statements until they are allocated to participants. As of December 31, 2015, the assets held in the suspense account were invested in the Prudential Guaranteed Income Fund, which is a stable value fund designed to provide safety of principal, liquidity and a rate of return. The Prudential Guaranteed Income Fund was valued based upon the contributions made to the fund, plus earnings at guaranteed crediting rates, less withdrawals and fees and was categorized as a level 2 financial instrument. During the nine months ended September 30, 2016 the assets were transferred to a Vanguard Money Market Fund, which invests in U.S. government securities and seeks to provide current income and preserve shareholders’ principal investment. The Vanguard Money Market Fund is measured based on quoted market prices in an active market and categorized within level 1 of the fair value hierarchy. The Company’s Retirement Plan Investment Committee is responsible for investing decisions and allocation decisions of the suspense account. Refer to Note 15, Employee Benefit Plans. Fair Value of Financial Instruments
The carrying amount and fair value of the Company’s financial instruments were as follows:
Retained Interest Investments The Company has a beneficial interest in certain bankruptcy remote qualified special purpose entities (the “SPEs”) used in the installment sale monetization of certain sales of timberlands in 2007 and 2008. The SPEs’ assets are not available to satisfy the Company’s liabilities or obligations and the liabilities of the SPEs are not the Company’s liabilities or obligations. In the event that proceeds from the financial instruments are insufficient to settle all of the liabilities of the SPEs, the Company is not obligated to contribute any funds to the SPEs. The Company has determined that it is not the primary beneficiary of the SPEs, since the Company is not the primary decision maker with respect to activities that could significantly impact the economic performance of the SPEs, nor does the Company perform any service activity related to the SPEs. Therefore, the SPEs’ assets and liabilities are not consolidated in the Company’s condensed consolidated financial statements as of September 30, 2016 and December 31, 2015. At the time of monetization the initial retained interest recorded was an estimate based on the present value of future excess cash flows expected to be received over the life of the retained interest, using management’s best estimate of underlying assumptions, including credit risk and discount rates. The Company’s continuing involvement with the SPEs is the receipt of the net interest payments and the remaining principal of approximately $15.0 million to be received at the end of the installment notes’ fifteen year maturity period, in 2022 through 2024. The Company has a beneficial or retained interest investment related to these SPEs of $10.5 million and $10.2 million as of September 30, 2016 and December 31, 2015, respectively, recorded in other assets on the Company’s condensed consolidated balance sheets. The Company has classified its retained interest investment as held-to-maturity because the Company has both the intent and the ability to hold its interest in the SPEs to maturity. Accordingly, the Company has recorded the retained interest investment at cost, adjusted for the accretion of investment income over the life of the retained interest using the effective yield method with rates ranging from 3.7% to 11.3%. The Company continues to update the expectation of cash flows to be collected over the term of the retained interest. Changes to the previously projected cash flows are accounted for prospectively, unless based on management’s assessment of current information and events, it is determined that there is an other-than-temporary impairment. The Company has not recorded an other-than-temporary impairment related to its retained interest investments during the three and nine months ended September 30, 2016 and 2015. In the event of a failure and liquidation of the counterparties involved in the installment sales, the Company could be required to write-off the remaining retained interest recorded on its condensed consolidated balance sheets in connection with the installment sale monetization transactions in 2007 and 2008. Investments and Senior Notes Held by Special Purpose Entities In connection with a real estate sale in 2014, the Company received consideration consisting of (i) cash, (ii) a $200.0 million fifteen-year installment note (the “Timber Note”) issued by Panama City Timber Finance Company, LLC, a buyer-sponsored special purpose entity (“AgReserves SPE”) and (iii) an Irrevocable Standby Letter of Credit issued by JPMorgan Chase Bank, N.A. (the “Letter of Credit”) at the request of AgReserves SPE, in favor of the Company. In 2014, the Company contributed the Timber Note and assigned its rights as a beneficiary under the Letter of Credit to Northwest Florida Timber Finance, LLC (“NFTF”), a bankruptcy-remote, qualified special purpose entity wholly-owned by the Company. NFTF monetized the Timber Note by issuing $180.0 million aggregate principal amount of its 4.8% Senior Secured Notes due in 2029 (the “Senior Notes”) at an issue price of 98.5% of face value to third party investors. AgReserves SPE and NFTF are VIEs, which the Company consolidates as the primary beneficiary of each entity. The investments held by the SPEs consist of a $200.0 million time deposit that, subsequent to April 2, 2014, pays interest at 4.0% and matures in March 2029, U.S. Treasuries of $8.1 million and cash of $0.4 million. The Senior Notes issued by NFTF consist of $176.3 million net of the $3.7 million discount and debt issuance costs. |
Notes Receivable, Net |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Receivable, Net | Notes Receivable, Net Notes receivable, net consists of the following:
The Company evaluates the carrying value of the notes receivable and the need for an allowance for doubtful notes receivable at each reporting date. Claim Settlement Receivable On March 24, 2016, the Company entered into a full and final release agreement with BP p.l.c. and various related entities pursuant to which the Company, on its own behalf and on behalf of certain wholly owned subsidiaries, released any and all claims related to the Deepwater Horizon oil spill which occurred on April 20, 2010. In exchange for this release, the Company will receive the amount of $13.2 million from BP Exploration & Production Inc., a large portion of which will reimburse the Company for expenses incurred. Payment of the settlement amount is to be made pursuant to the following schedule: the amount of $5.0 million due in October of 2016 followed by payments of $2.7 million due in October of 2017, 2018 and 2019. On October 3, 2016, the Company received the $5.0 million payment. The Company also received a guaranty of payments from BP North America Corporation Inc. As of March 24, 2016, the Company recorded the claim settlement receivable using an imputed interest rate of 3.0%, based on its best estimate of the prevailing market rates for the source of credit, resulting in an initial present value of $12.5 million and a discount of $0.7 million. $12.5 million of the claim settlement was recognized as other income in the Company’s condensed consolidated statements of income for the nine months ended September 30, 2016. The discount is being accreted over the term of the receivable using the effective interest method. Interest income for the three months ended September 30, 2016 and the period from March 24, 2016 to September 30, 2016 was $0.1 million and $0.2 million, respectively. |
Claim Settlement Receivable |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Claim Settlement Receivable | Notes Receivable, Net Notes receivable, net consists of the following:
The Company evaluates the carrying value of the notes receivable and the need for an allowance for doubtful notes receivable at each reporting date. Claim Settlement Receivable On March 24, 2016, the Company entered into a full and final release agreement with BP p.l.c. and various related entities pursuant to which the Company, on its own behalf and on behalf of certain wholly owned subsidiaries, released any and all claims related to the Deepwater Horizon oil spill which occurred on April 20, 2010. In exchange for this release, the Company will receive the amount of $13.2 million from BP Exploration & Production Inc., a large portion of which will reimburse the Company for expenses incurred. Payment of the settlement amount is to be made pursuant to the following schedule: the amount of $5.0 million due in October of 2016 followed by payments of $2.7 million due in October of 2017, 2018 and 2019. On October 3, 2016, the Company received the $5.0 million payment. The Company also received a guaranty of payments from BP North America Corporation Inc. As of March 24, 2016, the Company recorded the claim settlement receivable using an imputed interest rate of 3.0%, based on its best estimate of the prevailing market rates for the source of credit, resulting in an initial present value of $12.5 million and a discount of $0.7 million. $12.5 million of the claim settlement was recognized as other income in the Company’s condensed consolidated statements of income for the nine months ended September 30, 2016. The discount is being accreted over the term of the receivable using the effective interest method. Interest income for the three months ended September 30, 2016 and the period from March 24, 2016 to September 30, 2016 was $0.1 million and $0.2 million, respectively. |
Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets Other assets consist of the following:
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Real Estate Joint Ventures |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Joint Ventures | Real Estate Joint Ventures The Company enters into real estate joint ventures, from time to time, for the purpose of developing real estate in which the Company may or may not have a controlling financial interest. GAAP requires consolidation of VIEs in which an enterprise has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance and (b) the obligation to absorb the VIE losses and right to receive benefits that are significant to the VIE. The Company examines specific criteria and uses judgment when determining whether the Company is the primary beneficiary and must consolidate a VIE. The Company continues to assess whether it is the primary beneficiary on an ongoing basis. Consolidated Real Estate Joint Ventures During 2012, the Company entered into a joint venture agreement with a partner to develop a retail center at Pier Park North. The Company’s partner is responsible for the day-to-day activities of the joint venture. However, the Company has significant involvement in the design of the development and approves all major decisions, including project development, annual budgets and financing. The Company determined the joint venture is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2016 and December 31, 2015. In October 2015, the Pier Park North joint venture refinanced a construction loan by entering into a $48.2 million loan (the “Refinanced Loan”), which is secured by a first lien on, and security interest in, a majority of the Pier Park North joint venture’s property and a $6.6 million short term letter of credit. In October 2016, the letter of credit was reduced to $1.3 million based on the terms of the Refinanced Loan agreement. Additionally, in connection with this refinancing, each of the Pier Park North joint venture partners executed a limited guarantee in favor of the lender, based on their percentage ownership in the joint venture. See Note 10, Debt. In addition, the Company is the primary beneficiary of another real estate joint venture, Artisan Park, L.L.C, that is consolidated within the financial results of the Company. The Company is entitled to 74% of the profits or losses of this VIE and is responsible for the day-to-day activities of the joint venture. The Company has determined that the Company is the primary beneficiary as it has the power to direct the activities that most significantly impact the joint venture’s economic performance; therefore, the results of the VIE have been consolidated within the financial results of the Company. Unconsolidated Real Estate VIE As of September 30, 2016, the Company is a partner in ALP Liquidating Trust (“ALP”) that is accounted for using the equity method. The joint venture was entered into to develop and sell certain mixed use residential and commercial projects. The Company has evaluated the VIE consolidation requirements with respect to this joint venture and has determined that the Company is not the primary beneficiary, since the Company does not have the power to direct the activities that most significantly impact the economic performance of the VIE. The Company is not required to contribute additional funds to ALP. Summarized financial information for ALP is as follows:
(1) In 2008 the Company wrote-off its investment in ALP as a result of ALP reserving its assets to satisfy potential claims and obligations in accordance with its publicly reported liquidation basis of accounting. Subsequently, ALP changed its method of accounting to a going concern basis and reinstated its equity and stated it would report certain expenses as they are incurred. The Company has not recorded any additional equity income as a result of ALP’s change in accounting. For the three months ended September 30, 2016 and 2015, ALP reported net loss of $0.2 million and $0.4 million, respectively. For the nine months ended September 30, 2016 and 2015, ALP reported net loss of $0.5 million and $1.6 million, respectively. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consists of the following at September 30, 2016:
Debt consists of the following at December 31, 2015:
The Refinanced Loan accrues interest at a rate of 4.1% per annum and matures in November 2025. In connection with the Refinanced Loan, the Company entered into a limited guarantee in favor of the lender, based on its percentage ownership of the joint venture. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation by the Pier Park North joint venture; any voluntary transfer or encumbrance of the property in violation of the due-on-sale clause in the security instrument; upon commencement of voluntary or insolvency proceedings and upon breach of covenants in the security instrument. Community Development District (“CDD”) bonds financed the construction of infrastructure improvements at several of the Company’s projects. The principal and interest payments on the bonds are paid by assessments on, or from sales proceeds of, the properties benefited by the improvements financed by the bonds. The Company has recorded a liability for CDD assessments that are associated with platted property, which is the point at which the assessments become fixed or determinable. Additionally, the Company has recorded a liability for the balance of the CDD assessment that is associated with unplatted property if it is probable and reasonably estimable that the Company will ultimately be responsible for repaying. The Company has recorded debt of $6.7 million and $7.0 million related to CDD assessments as of September 30, 2016 and December 31, 2015, respectively. The Company’s total outstanding CDD assessments were $21.9 million and $22.5 million at September 30, 2016 and December 31, 2015, respectively. The Company pays interest on the total outstanding CDD assessments. The aggregate maturities of debt subsequent to September 30, 2016 are:
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Other Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other Liabilities Other liabilities consist of the following:
Deferred revenue at September 30, 2016 and December 31, 2015 includes $12.5 million related to a 2006 agreement pursuant to which the Company agreed to sell rural land to the Florida Department of Transportation. Revenue is recognized when title to a specific parcel is legally transferred. Membership deposits and initiation fees consist of deposits and fees received for club memberships. Initiation fees are recognized as revenue over the estimated average duration of membership. Advance deposits consist of deposits received on hotel rooms and vacation rentals. Advance deposits are recorded as other liabilities in the condensed consolidated balance sheets without regard to whether they are refundable and are recognized as income at the time the service is provided for the related deposit. Other accrued liabilities include $3.8 million of accrued property taxes as of September 30, 2016, which are generally paid annually in November. As of December 31, 2015 the Company had no accrued property taxes. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax expense differed from the amount computed by applying the federal statutory rate of 35% to pre-tax income or loss as a result of the following:
As of September 30, 2016, the Company had no federal net operating loss carryforwards and had $313.1 million of state net operating loss carryforwards, which are available to offset future taxable income through 2031. In general, a valuation allowance is recorded if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in future years in the appropriate tax jurisdictions to obtain a benefit from the reversal of deductible temporary differences and from loss carryforwards. As of December 31, 2015, based on the timing of reversal of future taxable amounts and the Company’s history of losses, management did not believe it met the requirements to realize the benefits of certain of its deferred tax assets; therefore, the Company had maintained a valuation allowance of $6.0 million. During the nine months ended September 30, 2016, the Company reversed $0.7 million of the valuation allowance that was recorded as of December 31, 2015. As of September 30, 2016, management believes it has not met the requirements to realize the benefits for a portion of its deferred tax assets for state net operating loss carryforwards; therefore, the Company has maintained a valuation allowance of $5.3 million for these deferred tax assets. The Company had approximately $1.7 million of total unrecognized tax benefits as of each September 30, 2016 and December 31, 2015. Of this total, there are no amounts of unrecognized tax benefits that, if recognized, would affect the effective income tax rate. There were no decreases or increases related to prior year or current year tax positions. |
Accumulated Other Comprehensive Income (Loss) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Following is a summary of the changes in the accumulated balances of accumulated other comprehensive income (loss), which is presented net of tax, as of September 30, 2016:
Following is a summary of the tax effects allocated to other comprehensive income (loss) for the three months ended September 30, 2016 and 2015:
Following is a summary of the tax effects allocated to other comprehensive income for the nine months ended September 30, 2016 and 2015:
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Stockholders' Equity |
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Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Repurchase Program During the nine months ended September 30, 2016, the Company repurchased 995,650 shares of its common stock at an average purchase price of $14.88 per share, for an aggregate purchase price of $14.8 million, pursuant to its stock repurchase program (the “Stock Repurchase Program”). As of September 30, 2016, the Company had a total authority of $190.9 million available for purchase of shares of its common stock pursuant to its Stock Repurchase Program. The Company may repurchase its common stock in open market purchases from time to time, in privately negotiated transactions or otherwise, pursuant to Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing and amount of any additional shares to be repurchased will depend upon a variety of factors, including market and business conditions and other factors. Repurchases may be commenced or suspended at any time or from time to time without prior notice. The Stock Repurchase Program will continue until otherwise modified or terminated by the Company’s Board of Directors at any time in its sole discretion. In July 2016, the Company retired 17,998,658 shares of treasury stock at a value of $320.1 million. Issuance of Common Stock for Director’s Fees On May 17, 2016, the Board approved the issuance of 8,919 restricted stock awards to three members of the Board of Directors as part of their compensation package and pursuant to the 2015 Performance and Equity Incentive Plan. These restricted stock awards vested 25% on the date of issue and 25% on August 17, 2016, with the remaining balance vesting 25% on November 17, 2016 and February 17, 2017. For the three and nine months ended September 30, 2016, the Company recorded expense of less than $0.1 million, related to restricted stock awards to the Company’s directors. |
Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains a 401(k) retirement plan covering substantially all officers and employees of the Company, which permits participants to defer up to the maximum allowable amount determined by the IRS of their eligible compensation. As part of the Pension Plan termination in 2014, the Company directed the Pension Plan to transfer $7.9 million of the Pension Plan’s surplus assets into a suspense account in the Company’s 401(k) Plan. The Company has retained the risks and rewards of ownership of these assets; therefore, the assets held in the suspense account are included in the Company’s condensed consolidated financial statements until they are allocated to participants. At September 30, 2016 and December 31, 2015, the fair value of these assets was recorded in restricted investments on the Company’s condensed consolidated balance sheets and were $5.6 million and $7.1 million, respectively. The Company expenses the fair value of the assets at the time the assets are allocated to participants, which is expected to be up to the next five years. During the nine months ended September 30, 2016 and 2015, the Company recorded an expense of $1.4 million and $0.9 million, respectively, for the fair value of the assets, less expenses, that were allocated to participants during that period. In addition, any gains and losses on these assets are reflected in the Company’s condensed consolidated financial statements and were less than a $0.1 million gain for both the three and nine months ended September 30, 2016 and 2015. Refer to Note 5, Financial Instruments and Fair Value Measurements. |
Other Income (Expense) |
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Other Income (Expense) | Other Income (Expense) Other income (expense) consists of the following:
Investment income, net Interest and dividend income includes interest income accrued or received on the Company’s corporate debt securities and dividend income received from the Company’s preferred stock and other investments. Accretion income includes the amortization of the premium or discount related to the Company’s available-for-sale securities, which is amortized based on an effective interest rate method over the term of the available-for-sale securities. Realized gains on the sale of investments include the gain recognized on the sale of an available-for-sale security prior to maturity. Interest income from investments in SPEs primarily includes interest accrued or received on the Timber Note, which is used to pay the interest expense for the Senior Notes issued by NFTF. Interest expense Interest expense includes interest expense related to the Company’s CDD debt and the construction loan and Refinanced Loan in the Pier Park North joint venture. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by the special purpose entity, are amortized based on the effective interest method at an effective rate of 4.9%. Claim settlement Claim settlement during the nine months ended September 30, 2016 includes $12.5 million for a settlement related to the Deepwater Horizon oil spill. See Note 7, Claim Settlement Receivable for further discussion. Other, net During the three and nine months ended September 30, 2015, the Company expensed a total of $0.4 million and $7.9 million, respectively, related to the SEC investigation, which was resolved in October 2015. This amount was included in Other, net in the condensed consolidated statements of income. The Company records the accretion of investment income from its retained interest investment over the life of the retained interest using the effective yield method with rates ranging from 3.7% to 11.3%. Hunting lease income is recognized as income over the term of the lease. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company conducts primarily all of its business in the following five reportable operating segments: 1) residential real estate, 2) commercial real estate, 3) resorts and leisure, 4) leasing and 5) forestry. The residential real estate segment generates revenue from the development and sale of homes and homesites and the sale of parcels of entitled, undeveloped lots. The commercial real estate segment sells undeveloped or developed land and commercial operating property. The resort and leisure segment generates revenue and incurs costs from the WaterColor Inn and Resort, vacation rental program, management of The Pearl Hotel, four golf courses, a beach club, marina operations and other related resort activities. The leasing segment generates revenue and costs from retail and commercial leasing operations, including the Company’s consolidated joint venture at Pier Park North. The forestry segment produces and sells woodfiber, sawtimber and other forest products and may sell the Company’s timber or rural land holdings. The Company’s reportable segments are strategic business units that offer different products and services. They are each managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company uses income before income taxes and non-controlling interest for purposes of making decisions about allocating resources to each segment and assessing each segment’s performance, which the Company believes represents current performance measures. The accounting policies of the segments are set forth in Note 2 to the Company’s consolidated financial statements contained in Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Total revenue represent sales to unaffiliated customers, as reported in the Company’s condensed consolidated statements of income. All significant intercompany accounts and transactions have been eliminated in consolidation. The caption entitled “Other” consists of mitigation credit revenue and non-allocated corporate general and administrative expenses, net of investment income. Information by business segment is as follows:
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company establishes an accrued liability when it believes it is both probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company will evaluate the range of reasonably estimated losses and record an accrued liability based on what it believes to be the minimum amount in the range, unless it believes an amount within the range is a better estimate than any other amount. In such cases, there may be an exposure to loss in excess of the amounts accrued. The Company evaluates quarterly whether further developments could affect the amount of the accrued liability previously established or would make a loss contingency both probable and reasonably estimable. The Company also provides disclosure when it believes it is reasonably possible that a loss will be incurred or when it believes it is reasonably possible that the amount of a loss will exceed the recorded liability. The Company reviews loss contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. This estimated range of possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. The Company is subject to a variety of litigation, claims, other disputes and governmental proceedings that arise from time to time in the ordinary course of its business, including litigation related to its prior homebuilding activities and those described herein. The Company cannot assure that it will be successful in defending these matters. Based on current knowledge, the Company does not believe that loss contingencies arising from pending litigation, claims, other disputes and governmental proceedings, including those described herein, will have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period. The Company is subject to costs arising out of environmental laws and regulations, which include obligations to remove or limit the effects on the environment of the disposal or release of certain wastes or substances at various sites, including sites which have been previously sold. It is the Company’s policy to accrue and charge against earnings environmental cleanup costs when it is probable that a liability has been incurred or range of loss can be reasonably estimated. As assessments and cleanups proceed, these accruals are reviewed and adjusted, if necessary, as additional information becomes available. The Company’s former paper mill site in Gulf County and certain adjacent properties are subject to various Consent Agreements and Brownfield Site Rehabilitation Agreements with the Florida Department of Environmental Protection (“FDEP”). The paper mill site has been rehabilitated by Smurfit-Stone Container Corporation in accordance with these agreements and a final Site Rehabilitation Completion Order (“SRCO”) issued by the FDEP has been received. The Company is in the process of assessing certain neighboring properties. Management is unable to quantify future rehabilitation costs above present accruals at this time or provide a reasonably estimated range of loss. Other litigation, claims, disputes and governmental proceedings, including environmental matters, are pending against the Company. Accrued aggregate liabilities related to the matters described above and other litigation matters were $2.3 million and $2.5 million as of September 30, 2016 and December 31, 2015, respectively. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable. Due to uncertainties related to these matters, accruals are based only on the information available at the time. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company's results of operations in a given period. The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage, including its timber assets. At September 30, 2016 and December 31, 2015, the Company was required to provide surety bonds that guarantee completion of certain infrastructure in certain development projects and mitigation banks of $6.2 million and $7.1 million, respectively, and standby letters of credit in the amount of $0.4 million and $0.5 million, respectively, which may potentially result in liability to the Company if certain obligations of the Company are not met. At September 30, 2016, the Company has a total of $4.8 million in contractual obligations, of which $4.1 million are for the remainder of 2016, $0.3 million are for 2017 and $0.4 million are for 2018. In connection with the Refinanced Loan, the Company guaranteed the joint venture’s obligations under a short term $6.6 million letter of credit which is securing a portion of the joint venture’s obligations under the Refinanced Loan. In October 2016, the letter of credit was reduced to $1.3 million based on the terms of the Refinanced Loan agreement. See Note 9, Real Estate Joint Ventures for a further discussion on the Refinanced Loan. As part of the AgReserves Sale in 2014 and certain sales of timberlands in 2007 and 2008, the Company generated significant tax gains. The installment notes structure allowed the Company to defer the resulting tax liability of $61.8 million until 2022 - 2024 and $69.3 million until 2029, respectively, the maturity dates for the installment notes. The Company has a deferred tax liability related to the gains in connection with these sales. |
Concentration of Risks and Uncertainties |
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Sep. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risks and Uncertainties | Concentration of Risks and Uncertainties The Company’s real estate investments are concentrated in Northwest Florida in a number of specific development projects. Uncertain economic conditions could have an adverse impact on the Company’s real estate values and could cause the Company to sell assets at depressed values in order to pay ongoing expenses. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments, notes receivable, other receivables, investments held by SPEs and investments in retained interests. The Company deposits and invests cash with regional financial institutions, which balances exceed the amount of F.D.I.C. insurance provided on such deposits. In addition, as of September 30, 2016, the Company had $99.7 million invested in U.S. Treasury securities, $113.7 million invested in eight issuers of corporate debt securities that are non-investment grade and $23.2 million invested in three issuers of preferred stock that are non-investment grade. In addition, as of September 30, 2016, the Company had investments in short term commercial paper from seven issuers of $139.5 million. |
Nature of Operations (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||
Description of Business | The St. Joe Company together with its consolidated subsidiaries (the “Company”) is a real estate development, asset management and operating company with real estate assets and operations currently concentrated primarily between Tallahassee and Destin, Florida. The Company conducts primarily all of its business in the following five reportable operating segments: 1) residential real estate, 2) commercial real estate, 3) resorts and leisure, 4) leasing operations and 5) forestry. |
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Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries. The equity method of accounting is used for investments in which the Company has significant influence, but not a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. The December 31, 2015 balance sheet amounts have been derived from the Company’s December 31, 2015 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported stockholders’ equity or net income. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results of the Company that may be expected for the year ending December 31, 2016. A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The Company consolidates VIEs when it is the primary beneficiary of the VIE, including real estate joint ventures determined to be VIEs (see Note 9, Real Estate Joint Ventures) and VIEs involved in a 2014 real estate sale. The statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2015 annual financial statements. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates. |
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Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Consolidation In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-02 that amends the existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination and (iv) certain investment funds. These changes are expected to limit the number of consolidation models and place more emphasis on risk of loss when determining a controlling financial interest. The Company adopted the new guidance as of January 1, 2016. The adoption of this guidance had no impact on the Company’s condensed consolidated balance sheets, statements of income, statements of comprehensive income, statements of cash flows or notes to the condensed consolidated financial statements. Debt issuance costs In April 2015, the FASB issued ASU 2015-03 that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendment does not affect the recognition and measurement guidance for debt issuance costs. As of January 1, 2016, the Company adopted this ASU, which required retrospective application and resulted in the reclassification of debt issuance costs of $2.1 million from other assets to a reduction of $0.7 million in debt and a reduction of $1.4 million in Senior Notes held by special purpose entity in the Company’s condensed consolidated balance sheet as of December 31, 2015. Other than this change in presentation, this ASU did not have an impact on the Company’s condensed consolidated financial condition, results of operations or cash flows. See Note 10, Debt for more information. Recently Issued Accounting Pronouncements Revenue recognition In May 2014, the FASB issued an ASU that establishes the principles used to recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 that further clarifies the implementation guidance on principal versus agent considerations. The new guidance will be effective for annual and interim periods beginning after December 15, 2017. Early application will be permitted, but not before annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of this guidance will have on its financial condition, results of operations and cash flows. Financial Instruments In January 2016, the FASB issued ASU 2016-01 that amends existing guidance to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The new guidance will require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in results of operations. Additionally, certain disclosure requirements and other aspects of accounting for financial instruments may change as a result of the new guidance, which is effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact that the adoption of the new guidance will have on its financial condition, results of operations and cash flows. Leases In February 2016, the FASB issued ASU 2016-02 that amends the existing accounting standards for lease accounting, including requiring lessees to recognize both finance and operating leases with terms of more than 12 months on the balance sheet. The accounting applied by a lessor is largely unchanged from existing guidance. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The new guidance will be effective for annual and interim periods beginning after December 15, 2018 and requires a modified retrospective adoption. The Company is currently evaluating the impact that the adoption of this guidance will have on its financial condition, results of operations and cash flows. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13 that requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected and requires that credit losses from available-for-sale debt securities be presented as an allowance for credit losses. This new guidance will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of the new guidance will have on its financial condition, results of operations and cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15 that amends the classification of certain cash receipts and cash payments, to reduce the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the impact that the adoption of the new guidance will have on its financial condition, results of operations and cash flows. |
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Impairment or Disposal of Long-Lived Assets | The Company reviews its long-lived assets for impairment quarterly to determine whether events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Long-lived assets include the Company’s investments in operating and development property and property and equipment. As part of the Company’s review for impairment of its long-lived assets, the Company reviews long-lived asset’s carrying value, current period actual financial results as compared to prior period and forecast contained in the Company’s business plan and any other events or changes in circumstances to identify whether an indicator of potential impairment may exist. Some of the events or changes in circumstances that are considered by the Company as indicators of potential impairment include:
The Company uses varying methods to determine if an impairment exists, such as (i) considering indicators of potential impairment, (ii) analyzing expected future cash flows and comparing the expected future undiscounted cash flows of the property to its carrying value or (iii) determining market resale values. |
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Investments | Investments and restricted investments consist of available-for-sale securities and are recorded at fair value, which is based on quoted market prices and pricing data from external pricing services that use prices observed for recently executed market transactions. Unrealized gains and temporary losses on investments, net of tax, are recorded in other comprehensive income (loss). Realized gains and losses are determined using the specific identification method. The amortized cost of debt securities are adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method. Such amortization and accretion is included in investment income, net. In addition, at September 30, 2016, the Company had investments in short term commercial paper that are classified as cash equivalents, since they had maturity dates of ninety days or less from the date of purchase. |
Investment in Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate by property type and segment | Real estate by property type and segment includes the following:
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Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investments | At September 30, 2016, investments and restricted investments classified as available-for-sale securities were as follows:
At December 31, 2015, investments and restricted investments classified as available-for-sale securities were as follows:
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Continuous Unrealized Loss Position | The following table provides the debt securities and preferred stock unrealized loss position and related fair values:
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Contractual Maturities of Investments | The net carrying value and estimated fair value of investments and restricted investments classified as available-for-sale at September 30, 2016, by contractual maturity are shown in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations.
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Financial Instruments and Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | The financial instruments measured at fair value on a recurring basis at September 30, 2016 were as follows:
The financial instruments measured at fair value on a recurring basis at December 31, 2015 were as follows:
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Carrying Amount and Fair Value of Financial Instruments | The carrying amount and fair value of the Company’s financial instruments were as follows:
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Notes Receivable, Net (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Receivable, Net | Notes receivable, net consists of the following:
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Other Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets consist of the following:
|
Real Estate Joint Ventures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Balance Sheets for Unconsolidated Investments | Summarized financial information for ALP is as follows:
(1) In 2008 the Company wrote-off its investment in ALP as a result of ALP reserving its assets to satisfy potential claims and obligations in accordance with its publicly reported liquidation basis of accounting. Subsequently, ALP changed its method of accounting to a going concern basis and reinstated its equity and stated it would report certain expenses as they are incurred. The Company has not recorded any additional equity income as a result of ALP’s change in accounting. |
Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt consists of the following at September 30, 2016:
Debt consists of the following at December 31, 2015:
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Maturities of Debt | The aggregate maturities of debt subsequent to September 30, 2016 are:
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Other Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Deferred Credits | Other liabilities consist of the following:
|
Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of effective income tax rate reconciliation | Income tax expense differed from the amount computed by applying the federal statutory rate of 35% to pre-tax income or loss as a result of the following:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive (Loss) Income | Following is a summary of the changes in the accumulated balances of accumulated other comprehensive income (loss), which is presented net of tax, as of September 30, 2016:
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Reclassification out of Accumulated Other Comprehensive (Loss) Income | Following is a summary of the tax effects allocated to other comprehensive income (loss) for the three months ended September 30, 2016 and 2015:
Following is a summary of the tax effects allocated to other comprehensive income for the nine months ended September 30, 2016 and 2015:
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Other Income (Expense) (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other income (expense) | Other income (expense) consists of the following:
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information by Business Segment | Information by business segment is as follows:
|
Investments in Real Estate - Real Estate by Property Type and Segment (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Real Estate Properties [Line Items] | |||||
Development property | $ 163,024,000 | $ 163,024,000 | $ 161,252,000 | ||
Operating property | 218,311,000 | 218,311,000 | 216,416,000 | ||
Less: Accumulated depreciation | 68,327,000 | 68,327,000 | 64,069,000 | ||
Total operating property, net | 149,984,000 | 149,984,000 | 152,347,000 | ||
Investment in real estate, net | 313,008,000 | 313,008,000 | 313,599,000 | ||
Capitalized indirect costs incurred | 0 | $ 100,000 | 0 | $ 200,000 | |
Residential real estate | |||||
Real Estate Properties [Line Items] | |||||
Development property | 99,545,000 | 99,545,000 | 99,413,000 | ||
Operating property | 8,091,000 | 8,091,000 | 8,091,000 | ||
Commercial real estate | |||||
Real Estate Properties [Line Items] | |||||
Development property | 57,248,000 | 57,248,000 | 56,587,000 | ||
Resorts and leisure | |||||
Real Estate Properties [Line Items] | |||||
Development property | 214,000 | 214,000 | 0 | ||
Operating property | 109,346,000 | 109,346,000 | 109,425,000 | ||
Leasing operations | |||||
Real Estate Properties [Line Items] | |||||
Development property | 1,119,000 | 1,119,000 | 360,000 | ||
Operating property | 81,307,000 | 81,307,000 | 79,550,000 | ||
Forestry | |||||
Real Estate Properties [Line Items] | |||||
Development property | 2,509,000 | 2,509,000 | 2,681,000 | ||
Operating property | 19,517,000 | 19,517,000 | 19,300,000 | ||
Other | |||||
Real Estate Properties [Line Items] | |||||
Operating property | 50,000 | 50,000 | 50,000 | ||
Corporate | |||||
Real Estate Properties [Line Items] | |||||
Development property | $ 2,389,000 | $ 2,389,000 | $ 2,211,000 |
Impairment of Long Lived Assets (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Asset Impairment Charges [Abstract] | ||||
Impairment charges | $ 400,000 | $ 0 | $ 400,000 | $ 0 |
Investments - Contractual Maturities of Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 113,393 | |
Due after one year through five years | 98,130 | |
Due after ten years through fifteen years | 99 | |
Amortized Cost | 211,622 | |
Preferred stock | 22,930 | |
Restricted investments | 5,640 | |
Amortized Cost | 240,192 | $ 199,429 |
Fair Value | ||
Due in one year or less | 113,944 | |
Due after one year through five years | 99,398 | |
Due after ten years through fifteen years | 82 | |
Fair Value | 213,424 | |
Preferred stock | 23,232 | |
Restricted investments | 5,640 | |
Fair Value | $ 242,296 | $ 198,312 |
Other Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Retained interest investments | $ 10,494 | $ 10,246 |
Accounts receivable, net | 4,134 | 4,382 |
Prepaid expenses | 5,823 | 5,849 |
Straight line rent | 3,848 | 3,732 |
Income tax receivable | 327 | 2,275 |
Other assets | 7,782 | 6,751 |
Accrued interest receivable for Senior Notes held by special purpose entity | 935 | 3,338 |
Total other assets | $ 33,343 | $ 36,573 |
Real Estate Joint Ventures - Summarized Financial Information for Unconsolidated Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Investments in and Advances to Affiliates [Line Items] | ||||
Cash and cash equivalents | $ 165,286 | $ 212,773 | $ 157,887 | $ 34,515 |
Other assets | 33,343 | 36,573 | ||
Total assets | 986,429 | 982,742 | ||
Equity | 665,333 | 665,263 | ||
Total liabilities and equity | 986,429 | 982,742 | ||
Other affiliates | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Cash and cash equivalents | 12,796 | 13,760 | ||
Other assets | 59 | 58 | ||
Total assets | 12,855 | 13,818 | ||
Accounts payable and other liabilities | 1,535 | 1,978 | ||
Equity | 11,320 | 11,840 | ||
Total liabilities and equity | $ 12,855 | $ 13,818 |
Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Principal | $ 54,868 | $ 55,194 |
Unamortized Discount and Debt Issuance Costs | 635 | 720 |
Debt | 54,233 | 54,474 |
Construction loan | Refinanced Loan in the Pier Park North joint venture, due November 2025, bearing interest at 4.1% | ||
Debt Instrument [Line Items] | ||
Principal | 48,200 | 48,200 |
Unamortized Discount and Debt Issuance Costs | 635 | 720 |
Debt | 47,565 | 47,480 |
Secured debt | Community Development District debt, secured by certain real estate and standby note purchase agreements, due May 2031 - May 2039, bearing interest at 3.1% to 7.0% at June 30, 2016 and 2.8% to 7.0% at December 31, 2015 | ||
Debt Instrument [Line Items] | ||
Principal | 6,668 | 6,994 |
Unamortized Discount and Debt Issuance Costs | 0 | 0 |
Debt | $ 6,668 | $ 6,994 |
Debt - Narrative (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Debt interest rate | 4.80% | ||
Debt | $ 54,233 | $ 54,474 | |
Total community development district debt | $ 21,900 | 22,500 | |
Refinanced Loan in the Pier Park North joint venture, due November 2025, bearing interest at 4.1% | Consolidated variable interest entities | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 4.10% | ||
Secured debt | Community Development District debt, secured by certain real estate and standby note purchase agreements, due May 2031 - May 2039, bearing interest at 3.1% to 7.0% at June 30, 2016 and 2.8% to 7.0% at December 31, 2015 | |||
Debt Instrument [Line Items] | |||
Debt | $ 6,668 | $ 6,994 |
Debt - Maturities of Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Disclosure [Abstract] | ||
2016 | $ 96 | |
2017 | 991 | |
2018 | 1,032 | |
2019 | 1,075 | |
2020 | 1,119 | |
Thereafter | 50,555 | |
Long-term debt | $ 54,868 | $ 55,194 |
Other Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accrued Liabilities And Deferred Credits [Line Items] | ||
Accounts payable | $ 2,724 | $ 2,585 |
Accrued compensation | 2,541 | 3,366 |
Deferred revenue | 15,493 | 15,584 |
Membership deposits and initiation fees | 7,305 | 7,416 |
Advance deposits | 3,291 | 3,574 |
Other accrued liabilities | 11,339 | 6,505 |
Total other liabilities | 43,405 | 41,880 |
Special Purpose Entities | ||
Accrued Liabilities And Deferred Credits [Line Items] | ||
Accrued interest expense for Senior Notes held by special purpose entity | $ 712 | $ 2,850 |
Other Liabilities - Narrative (Details) - USD ($) |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Deferred revenue | $ 15,493,000 | $ 15,584,000 |
Accrued property taxes | 3,800,000 | 0 |
Florida Department of Transportation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Deferred revenue | $ 12,500,000 | $ 12,500,000 |
Income Taxes - Income Tax Expense (Benefit) Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Tax expense at the federal statutory rate | $ 1,280 | $ 1,415 | $ 6,424 | $ 996 |
State income tax expense (net of federal benefit) | 128 | 142 | 642 | 100 |
Tax effect of timber at the federal statutory rate of 23.8% | (121) | 0 | (381) | 0 |
Decrease in valuation allowance | (350) | (87) | (713) | (245) |
Fees and expenses for the SEC investigation | 0 | (256) | 0 | 1,092 |
Other | 11 | 30 | (802) | 91 |
Total income tax expense | $ 948 | $ 1,244 | $ 5,170 | $ 2,034 |
Timber statutory federal rate | 23.80% |
Income Taxes - Narrative (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 35.00% | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets, valuation allowance | $ 5,300,000 | $ 6,000,000 |
Valuation allowance increase (decrease) | (700,000) | |
Unrecognized tax benefits | 1,700,000 | $ 1,700,000 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 0 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 313,100,000 |
Employee Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
|
Compensation and Retirement Disclosure [Abstract] | ||||||
Assets contributed to 401(k) Plan | $ 7,900 | |||||
Restricted investments | $ 5,640 | $ 5,640 | $ 7,072 | |||
401(k) Plan distribution period (in years) | 5 years | |||||
Compensation expense for assets allocated to participants | $ 1,400 | $ 900 | ||||
Gain on allocated asset (less than) | $ 100 | $ 100 | $ 100 | $ 100 |
Other Income (Expense) - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Other Income (Expense) [Line Items] | ||||
Effective interest rate | 4.90% | 4.90% | ||
Litigation settlement proceeds | $ 0 | $ 0 | $ 12,548 | $ 0 |
Fees and expenses for the resolved SEC investigation | $ 0 | $ 438 | $ 0 | $ 7,869 |
Minimum | ||||
Other Income (Expense) [Line Items] | ||||
Retained interest, effective interest rate | 3.70% | |||
Maximum | ||||
Other Income (Expense) [Line Items] | ||||
Retained interest, effective interest rate | 11.30% |
Concentration of Risks and Uncertainties (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
issuer
|
---|---|
Concentration Risk [Line Items] | |
Corporate debt securities | $ 213,424 |
U.S. Treasury Securities | |
Concentration Risk [Line Items] | |
U.S. Treasury securities | 99,700 |
Corporate debt securities | |
Concentration Risk [Line Items] | |
Corporate debt securities | 113,700 |
Preferred stock | |
Concentration Risk [Line Items] | |
Preferred stock investments | $ 23,200 |
Commercial paper | |
Concentration Risk [Line Items] | |
Number of issuers | issuer | 7 |
Commercial paper | $ 139,500 |
Non-investment grade | Corporate debt securities | |
Concentration Risk [Line Items] | |
Corporate debt securities | $ 113,700 |
Number of issuers | issuer | 8 |
Non-investment grade | Preferred stock | |
Concentration Risk [Line Items] | |
Number of issuers | issuer | 3 |
Preferred stock investments | $ 23,200 |
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