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Note 6 - Impairments | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Asset Impairment Charges [Text Block] |
6. | Impairments :
Management assesses on a continuous basis whether there are any indicators, including property operating performance, changes in anticipated holding period, general market conditions and delays of development, that the value of the Company’s assets (including any related amortizable intangible assets or liabilities) may be impaired. To the extent impairment has occurred, the carrying value of the asset would be adjusted to an amount to reflect the estimated fair value of the asset. The Company has an active capital recycling program which provides for the disposition of certain properties, typically of lesser quality assets in less desirable locations. The Company has adjusted the anticipated hold period for these properties and as a result the Company recognized impairment charges on certain operating properties (see Footnote 15 of the Notes to Consolidated Financial Statements for fair value disclosure). The Company’s efforts to market certain assets and management’s assessment as to the likelihood and timing of such potential transactions and/or the property hold period resulted in the Company recognizing impairment charges for the years ended December 31, 2018, 2017 and 2016 as follows (in millions):
|  | 201 8 |  |  | 201 7 |  |  | 201 6 |
Properties marketed for sale (1) (2) |  | $ | 59.5 |  |  | $ | 34.0 |  |  | $ | 28.6 |
Properties disposed |  | 19.7 |  |  |  | 17.1 |  |  |  | 37.2 |
Properties held and used (3) |  |  | - |  |  |  | 16.2 |  |  |  | 27.5 |
Total gross property impairment charges* (4) |  |  | 79.2 |  |  |  | 67.3 |  |  |  | 93.3 |
Noncontrolling interests |  |  | - |  |  |  | - |  |  |  | (0.4 | )
Benefit for income taxes |  |  | - |  |  |  | - |  |  |  | (21.1 | )
Total net impairment charges |  | $ | 79.2 |  |  | $ | 67.3 |  |  | $ | 71.8 |
* See Footnote 15 of the Notes to Consolidated Financial Statements for additional disclosure on fair value.
( 1 ) | These impairment charges relate to adjustments to property carrying values for properties which the Company has marketed for sale as part of its active capital recycling program and as such has adjusted the anticipated hold periods for such properties.
( 2 ) | During December 2018, the Company recognized an impairment charge of $41.0 million related to a development project located in Jacksonville, FL, for which the Company no longer intends to develop. The Company’s intent is to now market the property as is for sale during 2019. The Company’s decision to discontinue this development project was primarily based upon the expectation of increases in estimated costs to complete the project and unfavorable market conditions which would have a negative impact on the Company’s return on its investment. In addition, the Company believes its capital allocation to other projects within its portfolio, which are located within major metro markets, offer a better opportunity for growth and would provide greater value to the Company.
( 3 ) | During 2017, the Company recognized an impairment charge of $16.2 million related to a property for which the Company had re-evaluated its long-term plan for the property due to unfavorable local market conditions.
( 4 ) | During 2016, the Company recognized aggregate impairment charges of $93.3 million, before an income tax benefit of $21.1 million and noncontrolling interests of $0.4 million, primarily related to sale of certain operating properties and certain properties maintained in the Company’s TRS for which the hold period was re-evaluated in connection with the Merger (see Footnote 21 of the Notes to Consolidated Financial Statements for additional disclosure) and adjustments to property carrying values in connection with the Company’s efforts to market certain properties and management’s assessment as to the likelihood and timing of such potential transactions and the anticipated hold period for such properties.
In addition to the impairment charges above, the Company recognized pretax impairment charges during 2018, 2017 and 2016 of $6.9 million, $4.8 million, and $15.0 million, respectively, relating to certain properties held by various unconsolidated joint ventures in which the Company holds noncontrolling interests. These impairment charges are included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income (see Footnote 7 of the Notes to Consolidated Financial Statements). The Company will continue to assess the value of its assets on an on-going basis. Based on these assessments, the Company may determine that one or more of its assets may be impaired and would therefore write-down its carrying basis accordingly.

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- Definition The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported. + References No definition available. + Details
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