XML 30 R15.htm IDEA: XBRL DOCUMENT v3.19.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES

Contractual Obligations

As of March 31, 2019, we had unaccrued contractual and other commitments related to our capital improvement projects and development projects of $150.6 million, including commitments related to the redevelopment of Fashion District Philadelphia, in the form of tenant allowances and contracts with general service providers and other professional service providers. In addition, our operating partnership, PREIT Associates, has jointly and severally guaranteed the obligations of the joint venture we formed with Macerich to develop Fashion District Philadelphia to commence and complete a comprehensive redevelopment of that property costing not less than $300.0 million within 48 months after commencement of construction, which was March 14, 2016. As of March 31, 2019, we expect to meet this obligation.

Provision for Employee Separation Expense

In 2019, we terminated the employment of certain employees and officers. In connection with the departure of those
employees and officers, we recorded $0.7 million of employee separation expense in the three months ended March 31, 2019. No amounts were recorded in the three months ended March 31, 2018. As of March 31, 2019, we had $1.0 million of severance accrued and unpaid related to activities related to the termination of employment of employees.

Property Damage from Natural Disaster

During September 2018, Jacksonville Mall in Jacksonville, North Carolina incurred property damage and an interruption
of business operations as a result of Hurricane Florence. The property was closed for business during and immediately after the
natural disaster, however, significant remediation efforts were quickly undertaken and the mall was reopened shortly thereafter.

During the three months ended March 31, 2019, we recorded losses of approximately $0.2 million. This amount consisted of combined remediation and business interruption expenses.