Note 20 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

20.

  

Commitments and Contingencies:

Operations

The Company and its subsidiaries are primarily engaged in the operation of shopping centers that are either owned or held under long-term leases that expire at various dates through

2115.

The Company and its subsidiaries, in turn, lease premises in these centers to

tenants

pursuant to lease agreements which provide for terms ranging generally from

5

to

25

years and for annual minimum rentals plus incremental rents based on operating expense levels and

tenants'

sales volumes. Annual minimum rentals plus incremental rents based on operating expense levels and percentage rents comprised

98%

of total revenues from rental properties for each of the

three

years ended

December

31,

2016,

2015

and

2014.

The minimum revenues from rental properties under the terms of all non-cancelable

tenant

leases for future years, assuming no new or renegotiated leases are executed for such premises, are as follows (in millions):

2017,

$834.6;

2018,

$755.9;

2019,

$664.1;

2020,

$567.7;

2021,

$471.5

and thereafter;

$1,971.7.

Base rental revenues from rental properties are recognized on a straight-line basis over the terms of the related leases. The difference between the amount of rental income contracted through leases and rental income recognized on a straight-line basis before allowances for the years ended

December

31,

2016,

2015

and

2014

was

$16.5

million,

$14.8

million and

$8.4

million, respectively.

Minimum rental payments to be made by the Company under the terms of all non-cancelable operating ground leases for future years are as follows (in millions):

2017,

$10.3;

2018,

$9.9;

2019,

$9.2;

2020,

$8.6;

2021,

$8.3

and thereafter,

$143.0.

Letters of Credit

The Company has issued letters of credit in connection with the completion and repayment guarantees for loans encumbering certain of the Company’s development and redevelopment projects and guaranty of payment related to the Company’s insurance program. At

December

31,

2016,

these letters of credit aggregated

$40.8

million.

Other

In connection with the construction of its development and redevelopment projects and related infrastructure, certain public agencies require posting of performance and surety bonds to guarantee that the Company’s obligations are satisfied. These bonds expire upon the completion of the improvements and infrastructure. As of

December

31,

2016,

there were

$30.1

million in performance and surety bonds outstanding.

On

January

28,

2013,

the Company received a subpoena from the Enforcement Division of the SEC in connection with an investigation, In the Matter of Wal-Mart Stores, Inc. (FW-

3678),

that the SEC Staff is currently conducting with respect to possible violations of the Foreign Corrupt Practices Act. The Company has cooperated, and will continue to cooperate, with the SEC and the U.S. Department of Justice (“DOJ”), which is conducting a parallel investigation. At this point, we are unable to predict the duration, scope or result of the SEC or DOJ investigations.

The Company is subject to various other legal proceedings and claims that arise in the ordinary course of business. Management believes that the final outcome of such matters will not have a material adverse effect on the financial position, results of operations or liquidity of the Company as of

December

31,

2016.