XML 45 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
8 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
The effect of these revisions on our condensed consolidated balance sheet is as follows:
 
(in thousands)
 
As previously reported at April 30, 2017
 
Adjustment
As revised at April 30, 2017
Common shares of beneficial interest
$
916,121

 
$
(7,216
)
$
908,905

Noncontrolling interests - consolidated real estate entities
1,924

 
7,280

9,204

Redeemable noncontrolling interests - consolidated real estate entities
7,181

 
(64
)
7,117

 
(in thousands)
 
As previously reported at April 30, 2018
 
Adjustment
As revised at April 30, 2018
Common shares of beneficial interest
$
907,843

 
$
(7,746
)
$
900,097

Noncontrolling interests - consolidated real estate entities
1,078

 
7,810

8,888

Redeemable noncontrolling interests - consolidated real estate entities
6,708

 
(64
)
6,644

The effect of these revisions on our condensed consolidated statements of equity is as follows:
 
(in thousands)
 
As previously reported at April 30, 2017
 
Adjustment
As revised at April 30, 2017
Common shares of beneficial interest
$
916,121

 
$
(7,216
)
$
908,905

Nonredeemable noncontrolling interests
75,157

 
7,280

82,437

 
(in thousands)
 
As previously reported at April 30, 2018
 
Adjustment
As revised at April 30, 2018
Common shares of beneficial interest
$
907,843

 
$
(7,746
)
$
900,097

Nonredeemable noncontrolling interests
74,090

 
7,810

81,900

Schedule of Recent Accounting Standards Updates
The following table provides a brief description of recent GAAP accounting standards updates (“ASUs”).





Standard
Description
Date of Adoption
Effect on the Financial Statements or Other Significant Matters
ASU 2014-09,  Revenue from Contracts with Customers
This ASU will eliminate the transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle based approach for determining revenue recognition. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied.
This ASU is effective for annual reporting periods beginning after December 15, 2017, as a result of a deferral of the effective date arising from the issuance of ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date. Early adoption is permitted. We adopted the new standard effective May 1, 2018 using the modified retrospective approach.
The majority of our revenue is derived from rental income, which is scoped out from this standard and will be accounted for under ASC 840, Leases. Our other revenue streams, which were evaluated under this ASU, include but are not limited to other income from residents determined not to be within the scope of ASC 840 and gains and losses from real estate dispositions. Refer to the Revenues section below for information regarding the impact of adopting the standard on our consolidated financial statements.  
ASU 2016-02, Leases
This ASU amends existing accounting standards for lease accounting, including by requiring lessees to recognize most leases on the balance sheet and making certain changes to lessor accounting.
This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted.
Our residential leases, where we are the lessor, will continue to be accounted for as operating leases under the new standard. As a result, there is not a significant change in the accounting for lease revenue. For leases where we are the lessee, we will recognize a right of use asset and related lease liability on our consolidated balance sheets upon adoption. The adoption of this standard will not have a material impact on our consolidated financial statements.
ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments
This ASU addresses eight specific cash flow issues with the objective of reducing diversity in practice.  The cash flow issues include debt prepayment or debt extinguishment costs and proceeds from the settlement of insurance claims.
This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective May 1, 2018.
The standard requires we present combined inflows and outflows of cash, cash equivalents, and restricted cash in the consolidated statement of cash flows. See additional disclosures regarding the required change below.
ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash
This ASU requires the statement of cash flows to explain the change in total cash, cash equivalents, and amounts generally described as restricted cash. It also requires that restricted cash be included when reconciling the beginning and end of period amounts on the statement of cash flows.
This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective May 1, 2018.
The standard requires we present combined inflows and outflows of cash, cash equivalents, and restricted cash in the consolidated statement of cash flows. See additional disclosures regarding the required change below.
ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets
This ASU clarifies the definition of an in-substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business pursuant to ASU 2017-01.  This ASU allows for either a retrospective or modified retrospective approach.
This ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted the new standard effective May 1, 2018 using the modified retrospective approach.
Refer to the Revenues section below for information regarding the impact of adopting the standard on our condensed consolidated financial statements.
ASU 2018-10, Codification Improvements to Topic 842, Leases
This ASU was issued to increase shareholders' awareness of narrow aspects of the guidance issued in the amendments and to expedite the improvements under ASU 2016-02.
This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted.
The adoption of this standard will not have a material impact on our consolidated financial statements.

Standard
Description
Date of Adoption
Effect on the Financial Statements or Other Significant Matters
ASU 2018-11, Leases: Targeted Improvements
This ASU allows lessors to account for lease and non-lease components, by class of underlying assets, as a single lease component if certain criteria are met. The new standard also indicates that companies are permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption in lieu of the modified retrospective approach and provides other practical expedients.
This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted.
The adoption of this standard will not have a material impact on our consolidated financial statements.
ASU 2018-13, Fair Value Measurements (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurements
This ASU eliminates certain disclosure requirements affecting all levels of measurement, and modifies and adds new disclosure requirements for Level 3 measurements.
This ASU is effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted.
We are currently evaluating the impact the new standard may have on our disclosures.
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract
This ASU reduces the complexity for the accounting for costs of implementing a cloud computing service arrangement. The standard aligns various requirements for capitalizing implementation costs.
This ASU is effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted.
We are currently evaluating the impact the new standard may have on our consolidated financial statements.
ASU 2018-20, Leases (Topic 842) - Narrow-Scope Improvements for Lessors
This ASU reduces a lessor's implementation and ongoing costs associated with applying the new leases standard. The ASU also clarifies a specific lessor accounting requirements.
This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted.
The adoption of this standard will not have a material impact on our consolidated financial statements.
We revised our consolidated statements of cash flows for the years ended April 30, 2018 , 2017, and 2016 to conform to this presentation, and the effect of the revisions to net cash flows from operating and investing activities as previously reported for the years ended April 30, 2018, 2017, and 2016 are summarized in the following table:
 
(in thousands)
 
As previously reported
 
Impact of ASUs
 
As adjusted and currently reported
 
April 30, 2018
 
2016-15 and 2016-18
 
April 30, 2018
Net cash provided by operating activities
$
48,035

 
$
7,160

 
$
55,195

Net cash provided by (used by) investing activities
104,189

 
(24,077
)
 
80,112

Net cash provided by (used by) financing activities
(169,152
)
 
(6,839
)
 
(175,991
)
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents
(16,928
)
 
16,928

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 
(40,684
)
 
(40,684
)
 
 
 
 
 
 
Cash and cash equivalents at beginning of period
28,819

 
(28,819
)
 

Cash, cash equivalents, and restricted cash at beginning of period

 
56,800

 
56,800

Cash and cash equivalents at end of period
$
11,891

 
 
 
 
Cash, cash equivalents, and restricted cash at end of period
 
 
$
4,225

 
$
16,116

 
(in thousands)
 
As previously reported
 
Impact of ASUs
 
As adjusted and currently reported
 
April 30, 2017
 
2016-15 and 2016-18
 
April 30, 2017
Net cash provided by operating activities
$
73,930

 
$
5,122

 
$
79,052

Net cash provided by (used by) investing activities
202,263

 
21,897

 
224,160

Net cash provided by (used by) financing activities
(314,072
)
 
(3,848
)
 
(317,920
)
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents
(37,879
)
 
37,879

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 
(14,708
)
 
(14,708
)
 
 
 
 
 
 
Cash and cash equivalents at beginning of period
66,698

 
(66,698
)
 

Cash, cash equivalents, and restricted cash at beginning of period

 
71,508

 
71,508

Cash and cash equivalents at end of period
$
28,819

 
 
 
 
Cash, cash equivalents, and restricted cash at end of period
 
 
$
27,981

 
$
56,800

 
(in thousands)
 
As previously reported
 
Impact of ASUs
 
As adjusted and currently reported
 
April 30, 2016
 
2016-15 and 2016-18
 
April 30, 2016
Net cash provided by operating activities
$
66,493

 
$
5,768

 
$
72,261

Net cash provided by (used by) investing activities
134,252

 
(5,700
)
 
128,552

Net cash provided by (used by) financing activities
(183,017
)
 
(6,321
)
 
(189,338
)
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents
17,728

 
(17,728
)
 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 
11,475

 
11,475

 
 
 
 
 
 
Cash and cash equivalents at beginning of period
48,970

 
(48,970
)
 

Cash, cash equivalents, and restricted cash at beginning of period

 
60,033

 
60,033

Cash and cash equivalents at end of period
$
66,698

 
 
 
 
Cash, cash equivalents, and restricted cash at end of period
 
 
$
4,810

 
$
71,508

Disaggregation of Revenue
The following table presents the disaggregation of revenue streams of our rental income for the transition period ended December 31, 2018:
 
 
 
(in thousands, except percentages)
 
 
 
Eight Months Ended December 31, 2018
Revenue Stream
Applicable Standard
 
Amount of Revenue
Percent of Revenue
Rental revenue
Leases
 
$
117,575

96.5
%
Other property revenue
Revenue Recognition
 
4,296

3.5
%
 
 
 
$
121,871

100.0
%
Schedule of Other Assets
As of December 31, 2018, April 30, 2018, and April 30, 2017, other assets consisted of the following amounts:
 
in thousands
 
December 31, 2018

April 30, 2018

April 30, 2017

Receivable arising from straight line rents
$
1,145

$
1,458

$
2,145

Accounts receivable, net of allowance
71

81

476

Fair value of interest rate swaps
818

1,779


Loans receivable
16,399

15,480


Prepaid and other assets
3,802

5,334

4,891

Intangible assets
498

1,469

202

Property and equipment, net of accumulated depreciation
686

820

901

Goodwill
1,546

1,553

1,572

Deferred charges and leasing costs
2,300

2,323

3,119

Total Other Assets
$
27,265

$
30,297

$
13,306

Restrictions on Cash and Cash Equivalents
 
(in thousands)
Balance sheet description
December 31, 2018
 
April 30, 2018
 
April 30, 2017

Cash and cash equivalents
$
13,792

 
$
11,891

 
$
28,819

Restricted cash
5,464

 
4,225

 
27,981

Total cash, cash equivalents and restricted cash
$
19,256

 
$
16,116

 
$
56,800

Schedule of Cash and Cash Equivalents
 
(in thousands)
Balance sheet description
December 31, 2018
 
April 30, 2018
 
April 30, 2017

Cash and cash equivalents
$
13,792

 
$
11,891

 
$
28,819

Restricted cash
5,464

 
4,225

 
27,981

Total cash, cash equivalents and restricted cash
$
19,256

 
$
16,116

 
$
56,800