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Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Business
Weingarten Realty Investors is a real estate investment trust (“REIT”) organized under the Texas Business Organizations Code. We currently operate, and intend to operate in the future, as a REIT.
We, and our predecessor entity, began the ownership of shopping centers and other commercial real estate in 1948. Our primary business is leasing space to tenants in the shopping centers we own. We also provide property management services for which we charge fees to either joint ventures where we are partners or other outside owners.
We operate a portfolio of neighborhood and community shopping centers, totaling approximately 42.4 million square feet of gross leaseable area, that is either owned by us or others. We have a diversified tenant base, with our largest tenant comprising only 2.9% of base minimum rental revenues during the first nine months of 2017. Total revenues generated by our centers located in Houston and its surrounding areas was 20.2% of total revenue for the nine months ended September 30, 2017, and an additional 9.2% of total revenue was generated during this period from centers that are located in other parts of Texas.
Basis of Presentation
Our condensed consolidated financial statements include the accounts of our subsidiaries, certain partially owned real estate joint ventures or partnerships and variable interest entities (“VIEs”) which meet the guidelines for consolidation. All intercompany balances and transactions have been eliminated.
The condensed consolidated financial statements included in this report are unaudited; however, amounts presented in the condensed consolidated balance sheet as of December 31, 2016 are derived from our audited financial statements at that date. In our opinion, all adjustments necessary for a fair presentation of such financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year.
The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and certain information included in our annual financial statements and notes thereto has been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related notes for the year ended December 31, 2016.
Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. We have evaluated subsequent events for recognition or disclosure in our condensed consolidated financial statements.
Restricted Deposits and Mortgage Escrows
Restricted deposits and mortgage escrows consist of escrow deposits held by lenders primarily for property taxes, insurance and replacement reserves and restricted cash that is held for a specific use or in a qualified escrow account for the purposes of completing like-kind exchange transactions.
Our restricted deposits and mortgage escrows consist of the following (in thousands):
 
September 30,
2017
 
December 31,
2016
Restricted cash (1)
$
3,724

 
$
23,489

Mortgage escrows
1,249

 
1,533

Total
$
4,973

 
$
25,022

_______________
(1)
The decrease between the periods presented is primarily attributable to $21 million of funds being released from a qualified escrow account for the purpose of completing like-kind exchange transactions.
Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss by component consists of the following (in thousands):
 
Gain
on
Investments
 
Gain
on
Cash Flow
Hedges
 
Defined
Benefit
Pension
Plan
 
Total
Balance, December 31, 2016
$
(964
)
 
$
(6,403
)
 
$
16,528

 
$
9,161

Change excluding amounts reclassified from accumulated other comprehensive loss
(678
)
 
29

 
 
 
(649
)
Amounts reclassified from accumulated other comprehensive loss


 
(74
)
(1) 
(1,111
)
(2) 
(1,185
)
Net other comprehensive income
(678
)
 
(45
)
 
(1,111
)
 
(1,834
)
Balance, September 30, 2017
$
(1,642
)
 
$
(6,448
)
 
$
15,417

 
$
7,327

 
Gain
on
Investments
 
Gain
on
Cash Flow
Hedges
 
Defined
Benefit
Pension
Plan
 
Total
Balance, December 31, 2015
$
(557
)
 
$
(8,160
)
 
$
16,361

 
$
7,644

Change excluding amounts reclassified from accumulated other comprehensive loss
(295
)
 
7,099

 
 
 
6,804

Amounts reclassified from accumulated other comprehensive loss


 
(1,193
)
(1) 
(1,004
)
(2) 
(2,197
)
Net other comprehensive (income) loss
(295
)
 
5,906

 
(1,004
)
 
4,607

Balance, September 30, 2016
$
(852
)
 
$
(2,254
)
 
$
15,357

 
$
12,251

_______________
(1)    This reclassification component is included in interest expense (see Note 6 for additional information).
(2)    This reclassification component is included in the computation of net periodic benefit cost (see Note 12 for additional information).
Deferred Compensation Plan
Our deferred compensation plan was amended, effective April 1, 2016, to permit participants in this plan to diversify their holdings of our common shares of beneficial interest ("common shares") six months after vesting. Thus, as of April 1, 2016, the fully vested share awards and the proportionate share of nonvested share awards eligible for diversification were reclassified from additional paid-in capital to temporary equity in our Condensed Consolidated Balance Sheet. In February 2017, our deferred compensation plan was amended to provide that participants in the plan would no longer have the right to diversify their common shares six months after vesting. Thus, the fully vested share awards and the proportionate share of nonvested share awards eligible for diversification at the amendment date were reclassified from temporary equity into additional paid-in capital in our Condensed Consolidated Balance Sheet.
The following table summarizes the eligible share award activity since inception through the February 2017 plan amendment date (in thousands):
 
September 30,
2017
 
December 31,
2016
Balance at beginning of the period/inception
$
44,758

 
$
36,261

Change in redemption value
619

 
8,600

Change in classification
988

 
3,716

Diversification of share awards
—

 
(3,819
)
Amendment reclassification
(46,365
)
 
—

Balance at end of period
$
—

 
$
44,758


Retrospective Application of Accounting Standard Update
The retrospective application of adopting Accounting Standard Update No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" on prior years' Condensed Consolidated Statement of Cash Flows was made to conform to the current year presentation (see Note 2 for additional information).