XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.19.2

Segment Reporting | 6 Months Ended
--- | ---
Jun. 30, 2019
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company's reportable operating segments include Established Communities, Other Stabilized Communities, and Development/Redevelopment Communities. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company's segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing each segment's performance. The Company's chief operating decision maker ("CODM") is comprised of several members of its executive management team who use net operating income ("NOI") as the primary financial measure for Established Communities and Other Stabilized Communities. NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, equity in income of unconsolidated real estate entities, depreciation expense, corporate income tax expense, casualty and impairment (gain) loss, net, gain on sale of communities, (gain) loss on other real estate transactions, net and net operating income from real estate assets sold or held for sale. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income. A reconciliation of NOI to net income for the three and six months ended June 30, 2019 and 2018 is as follows (dollars in thousands):
| For the three months ended |  | For the six months ended
| 6/30/2019 |  | 6/30/2018 |  | 6/30/2019 |  | 6/30/2018
Net income | $ | 168,305 |  |  | $ | 254,543 |  |  | $ | 338,723 |  |  | $ | 396,133 |
Indirect operating expenses, net of corporate income | 23,018 |  |  | 19,677 |  |  | 42,740 |  |  | 38,636 |
Expensed transaction, development and other pursuit costs, net of recoveries | 2,711 |  |  | 1,047 |  |  | 3,806 |  |  | 1,847 |
Interest expense, net | 50,010 |  |  | 56,585 |  |  | 97,902 |  |  | 111,698 |
Loss on extinguishment of debt, net | 229 |  |  | 642 |  |  | 509 |  |  | 1,039 |
General and administrative expense | 18,965 |  |  | 15,209 |  |  | 32,671 |  |  | 29,640 |
Equity in (income) loss of unconsolidated real estate entities | (197 | ) |  | (789 | ) |  | 863 |  |  | (2,529 | )
Depreciation expense | 162,693 |  |  | 156,685 |  |  | 324,749 |  |  | 315,743 |
Income tax expense (refund) | — |  |  | 58 |  |  | (6 | ) |  | 58 |
Casualty and impairment gain, net | — |  |  | — |  |  | — |  |  | (58 | )
Gain on sale of communities | (20,530 | ) |  | (105,201 | ) |  | (35,365 | ) |  | (105,201 | )
Gain on other real estate transactions, net | (34 | ) |  | (370 | ) |  | (300 | ) |  | (323 | )
Net operating income from real estate assets sold or held for sale | (1,495 | ) |  | (19,680 | ) |  | (4,077 | ) |  | (40,377 | )
Net operating income | $ | 403,675 |  |  | $ | 378,406 |  |  | $ | 802,215 |  |  | $ | 746,306 |
The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands):
| For the three months ended |  | For the six months ended
| 6/30/2019 |  | 6/30/2018 |  | 6/30/2019 |  | 6/30/2018
Rental income from real estate assets sold or held for sale | $ | 2,591 |  |  | $ | 30,024 |  |  | $ | 7,193 |  |  | $ | 61,857 |
Operating expenses from real estate assets sold or held for sale | (1,096 | ) |  | (10,344 | ) |  | (3,116 | ) |  | (21,480 | )
Net operating income from real estate assets sold or held for sale | $ | 1,495 |  |  | $ | 19,680 |  |  | $ | 4,077 |  |  | $ | 40,377 |
The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table provides details of the Company's segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community's status at January 1, 2019. Segment information for the three and six months ended June 30, 2019 and 2018 has been adjusted to exclude the real estate assets that were sold from January 1, 2018 through June 30, 2019, or otherwise qualify as held for sale as of June 30, 2019, as described in Note 6, "Real Estate Disposition Activities." In addition to NOI, the Company's CODM considers total revenue in assessing each segment's performance. As discussed in Note 1, "Organization, Basis of Presentation and Significant Accounting Policies," the Company changed its presentation of charges for uncollectible lease revenue beginning with the three and six months ended June 30, 2019, including it as an adjustment to revenue and not as a component of operating expenses, as it is presented for prior periods on the accompanying Condensed Consolidated Statement of Comprehensive Income. Consistent with how the Company's CODM evaluates total revenue, and to provide comparability between periods presented in the Company's segment reporting, the Company has included charges for uncollectible lease revenue for its segment results as a component of revenue for all periods presented in the following table. Total revenue for the three and six months ended June 30, 2018 as presented in the following table includes $3,576,000 and $7,611,000, respectively, of charges for uncollectible lease revenue.
| For the three months ended |  | For the six months ended |  |
| Total revenue |  | NOI |  | Total revenue |  | NOI |  | Gross real estate (1)
For the period ended June 30, 2019 |  |  |  |  |  |  |
Established |  |  |  |  |  |  |  |  |  |  |  |
New England | $ | 63,819 |  |  | $ | 41,907 |  |  | $ | 127,092 |  |  | $ | 83,715 |  |  | $ | 2,118,237 |
Metro NY/NJ | 103,073 |  |  | 73,212 |  |  | 204,276 |  |  | 145,055 |  |  | 3,531,694 |
Mid-Atlantic | 73,094 |  |  | 51,073 |  |  | 145,103 |  |  | 102,125 |  |  | 2,674,020 |
Pacific Northwest | 28,224 |  |  | 20,605 |  |  | 56,026 |  |  | 40,815 |  |  | 987,121 |
Northern California | 88,301 |  |  | 67,384 |  |  | 175,661 |  |  | 135,622 |  |  | 2,776,718 |
Southern California | 101,288 |  |  | 72,593 |  |  | 201,829 |  |  | 145,288 |  |  | 3,589,188 |
Total Established | 457,799 |  |  | 326,774 |  |  | 909,987 |  |  | 652,620 |  |  | 15,676,978 |
Other Stabilized | 75,696 |  |  | 50,813 |  |  | 148,371 |  |  | 100,024 |  |  | 3,327,804 |
Development / Redevelopment | 40,063 |  |  | 26,088 |  |  | 75,643 |  |  | 49,571 |  |  | 3,719,999 |
Land Held for Development | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | 18,606 |
Non-allocated (2) | 1,114 |  |  | N/A |  |  | 2,252 |  |  | N/A |  |  | 98,492 |
Total | $ | 574,672 |  |  | $ | 403,675 |  |  | $ | 1,136,253 |  |  | $ | 802,215 |  |  | $ | 22,841,879 |
For the period ended June 30, 2018 |  |  |  |  |  |  |
Established |  |  |  |  |  |  |  |  |  |  |  |
New England | $ | 62,110 |  |  | $ | 40,750 |  |  | $ | 123,318 |  |  | $ | 80,441 |  |  | $ | 2,109,273 |
Metro NY/NJ | 99,745 |  |  | 70,412 |  |  | 197,774 |  |  | 139,429 |  |  | 3,518,123 |
Mid-Atlantic | 71,099 |  |  | 49,917 |  |  | 140,868 |  |  | 98,772 |  |  | 2,662,775 |
Pacific Northwest | 26,894 |  |  | 19,142 |  |  | 53,381 |  |  | 37,766 |  |  | 984,029 |
Northern California | 85,559 |  |  | 66,133 |  |  | 169,983 |  |  | 130,946 |  |  | 2,764,856 |
Southern California | 98,179 |  |  | 71,482 |  |  | 195,094 |  |  | 141,082 |  |  | 3,561,270 |
Total Established | 443,586 |  |  | 317,836 |  |  | 880,418 |  |  | 628,436 |  |  | 15,600,326 |
Other Stabilized | 59,134 |  |  | 38,776 |  |  | 114,894 |  |  | 75,000 |  |  | 2,764,061 |
Development / Redevelopment | 31,965 |  |  | 21,794 |  |  | 63,411 |  |  | 42,870 |  |  | 2,618,434 |
Land Held for Development | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | 130,802 |
Non-allocated (2) | 954 |  |  | N/A |  |  | 1,841 |  |  | N/A |  |  | 79,703 |
Total | $ | 535,639 |  |  | $ | 378,406 |  |  | $ | 1,060,564 |  |  | $ | 746,306 |  |  | $ | 21,193,326 |
__________________________________
(1) | Does not include gross real estate assets held for sale of $77,030 as of June 30, 2019 and gross real estate either sold or classified as held for sale subsequent to June 30, 2018 of $1,153,352.
(2) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration