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Interim Financial Statements | 6 Months Ended
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Jun. 30, 2015
Interim Financial Statements [Abstract] |
Interim Financial Statements | 1. Interim Financial Statements Principles of Consolidation - The accompanying Condensed Consolidated Financial Statements include the accounts of Kimco Realty Corporation and Subsidiaries, (the “Company”). The Company’s Subsidiaries includes subsidiaries which are wholly-owned, and all entities in which the Company has a controlling financial interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”) or meets certain criteria of a sole general partner or managing member in accordance with the Consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All inter-company balances and transactions have been eliminated in consolidation. The information presented in the accompanying Condensed Consolidated Financial Statements is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2014 Annual Report on Form 10-K for the year ended December 31, 2014 (“10-K”), as certain disclosures in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015, that would duplicate those included in the 10-K are not included in these Condensed Consolidated Financial Statements. Subsequent Events - The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements. Income Taxes - The Company elected status as a Real Estate Investment Trust (a “REIT”) for federal income tax purposes beginning in its taxable year ended December 31, 1991 and operates in a manner that enables the Company to maintain its status as a REIT. As a REIT, the Company must distribute at least 90 percent of its taxable income and will not pay federal income taxes on the amount distributed to its shareholders. Therefore, the Company is not subject to federal income taxes if it distributes 100 percent of its taxable income. Most states, where the Company holds investments in real estate, conform to the federal rules recognizing REITs. Certain subsidiaries have made a joint election with the Company to be treated as taxable REIT subsidiaries (“TRS”), which permit the Company to engage in certain business activities in which the REIT may not conduct directly. A TRS is subject to federal and state income taxes on the income from these activities and the Company includes a provision for taxes in its condensed consolidated financial statements. The Company is subject to and also includes in its tax provision non-U.S. income taxes on certain investments located in jurisdictions outside the U.S. These investments are held by the Company at the REIT level and not in the Company’s taxable REIT subsidiary. Accordingly, the Company does not expect a U.S. income tax impact associated with the repatriation of undistributed earnings from the Company’s foreign subsidiaries. Earnings Per Share - The following table sets forth the reconciliation of earnings and the weighted average number of shares used in the calculation of basic and diluted earnings per share (amounts presented in thousands except per share data):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Computation of Basic Earnings Per Share: |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations |  | $ | 101,110 |  |  | $ | 128,989 |  |  | $ | 381,869 |  |  | $ | 204,598 |
Gain on sale of operating properties, net of tax |  |  | 26,499 |  |  |  | 389 |  |  |  | 58,554 |  |  |  | 389 |
Net income attributable to noncontrolling interests |  |  | (609 | ) |  |  | (2,438 | ) |  |  | (3,006 | ) |  |  | (11,298 | )
Discontinued operations attributable to noncontrolling interests |  |  | - |  |  |  | 815 |  |  |  | - |  |  |  | 7,429 |
Preferred stock dividends |  |  | (14,573 | ) |  |  | (14,573 | ) |  |  | (29,146 | ) |  |  | (29,147 | )
Income from continuing operations available to the common shareholders |  |  | 112,427 |  |  |  | 113,182 |  |  |  | 408,271 |  |  |  | 171,971 |
Earnings attributable to participating securities |  |  | (458 | ) |  |  | (501 | ) |  |  | (1,940 | ) |  |  | (819 | )
Income from continuing operations attributable to common shareholders |  |  | 111,969 |  |  |  | 112,681 |  |  |  | 406,331 |  |  |  | 171,152 |
Loss from discontinued operations attributable to the Company |  |  | - |  |  |  | (38,243 | ) |  |  | (75 | ) |  |  | (24,606 | )
Net income attributable to the Company’s common shareholders for basic earnings per share |  | $ | 111,969 |  |  | $ | 74,438 |  |  | $ | 406,256 |  |  | $ | 146,546 |
Weighted average common shares outstanding |  |  | 411,317 |  |  |  | 408,902 |  |  |  | 411,057 |  |  |  | 408,636 |
Basic Earnings Per Share Attributable to the Company’s Common Shareholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations |  | $ | 0.27 |  |  | $ | 0.28 |  |  | $ | 0.99 |  |  | $ | 0.42 |
Loss from discontinued operations |  |  | - |  |  |  | (0.10 | ) |  |  | - |  |  |  | (0.06 | )
Net income attributable to the Company |  | $ | 0.27 |  |  | $ | 0.18 |  |  | $ | 0.99 |  |  | $ | 0.36 |
Computation of Diluted Earnings Per Share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations attributable to common shareholders |  | $ | 111,969 |  |  | $ | 112,681 |  |  | $ | 406,331 |  |  | $ | 171,152 |
Loss from discontinued operations attributable to the Company |  |  | - |  |  |  | (38,243 | ) |  |  | (75 | ) |  |  | (24,606 | )
Distributions on convertible units |  |  | 139 |  |  |  | 721 |  |  |  | 373 |  |  |  | 262 |
Net income attributable to the Company’s common shareholders for diluted earnings per share |  | $ | 112,108 |  |  | $ | 75,159 |  |  | $ | 406,629 |  |  | $ | 146,808 |
Weighted average common shares outstanding – basic |  |  | 411,317 |  |  |  | 408,902 |  |  |  | 411,057 |  |  |  | 408,636 |
Effect of dilutive securities (a): Equity awards |  |  | 1,103 |  |  |  | 2,923 |  |  |  | 1,281 |  |  |  | 1,046 |
Assumed conversion of convertible units |  |  | 666 |  |  |  | 1,519 |  |  |  | 810 |  |  |  | 727 |
Shares for diluted earnings per common share |  |  | 413,086 |  |  |  | 413,344 |  |  |  | 413,148 |  |  |  | 410,409 |
Diluted Earnings Per Share Attributable to the Company’s Common Shareholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations |  | $ | 0.27 |  |  | $ | 0.27 |  |  | $ | 0.98 |  |  | $ | 0.42 |
Loss from discontinued operations |  |  | - |  |  |  | (0.09 | ) |  |  | - |  |  |  | (0.06 | )
Net income attributable to the Company |  | $ | 0.27 |  |  | $ | 0.18 |  |  | $ | 0.98 |  |  | $ | 0.36 |
| (a) | For the three and six months ended June 30, 2015 and 2014, the effect of certain convertible units would have an anti-dilutive effect upon the calculation of Income from continuing operations per share. Accordingly, the impact of such conversion has not been included in the determination of diluted earnings per share calculations. Additionally, there were 6,802,560 and 8,952,148 stock options that were not dilutive at June 30, 2015 and 2014, respectively.
The Company's unvested restricted share awards and convertible units (the “Participating securities”) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the Participating securities on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Participating securities based on dividends declared and the Participating securities rights in undistributed earnings. New Accounting Pronouncements – In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments in ASU 2015-03 are effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company elected to early adopt ASU 2015-03 beginning in its fiscal year 2015 (see Footnote 9). The adoption of ASU 2015-03 did not have a material impact on the Company’s financial position or results of operations. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 focuses to minimize situations under previously existing guidance in which a reporting entity was required to consolidate another legal entity in which that reporting entity did not have: (1) the ability through contractual rights to act primarily on its own behalf; (2) ownership of the majority of the legal entity's voting rights; or (3) the exposure to a majority of the legal entity's economic benefits. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 will be effective for periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact the adoption of ASU 2015-02 will have on the Company’s financial position or results of operations. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter, early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 was effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption was not permitted. On July 9, 2015 the FASB decided to delay the effective date of ASU 2014-09 by one year making it effective for the first interim period within annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date. The Company is currently in the process of evaluating the impact the adoption of ASU 2014-09 will have on the Company’s financial position or results of operations. In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). The amendments in ASU 2014-08 change the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The amendments in ASU 2014-08 are effective for fiscal years beginning after December 15, 2014. The Company adopted ASU 2014-08 beginning January 1, 2015 and appropriately applied the guidance prospectively to disposals of its operating properties. Prior to January 1, 2015, properties identified as held-for-sale and/or disposed of were presented in discontinued operations for all periods presented. The adoption and implementation of this ASU resulted in the operations of certain current period dispositions in the ordinary course of business to be classified within continuing operations on the Company’s Condensed Consolidated Statements of Income. The adoption did not have an impact on the Company’s financial position or cash flows. The disclosures required by this ASU have been incorporated in the notes included herein.

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