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Investments in Unconsolidated Joint Ventures: | 9 Months Ended
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Sep. 30, 2014
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Joint Ventures: | Investments in Unconsolidated Joint Ventures: The Company has made the following recent investments and dispositions relating to its unconsolidated joint ventures: On May 29, 2013, the Company's joint venture in Pacific Premier Retail LP sold Redmond Town Center Office, a 582,000 square foot office building in Redmond, Washington, for $185,000, resulting in a gain on the sale of assets of $89,157 to the joint venture. The Company's share of the gain was $44,424, which was included in equity in income of unconsolidated joint ventures. The Company used its share of the proceeds from the sale to pay down its line of credit and for general corporate purposes. On June 12, 2013, the Company's joint venture in Pacific Premier Retail LP sold Kitsap Mall, an 846,000 square foot regional shopping center in Silverdale, Washington, for $127,000, resulting in a gain on the sale of assets of $55,150 to the joint venture. The Company's share of the gain was $28,127, which was included in equity in income of unconsolidated joint ventures. The Company used its share of the proceeds from the sale to pay down its line of credit and for general corporate purposes. On August 1, 2013, the Company's joint venture in Pacific Premier Retail LP sold Redmond Town Center, a 695,000 square foot community center in Redmond, Washington, for $127,000, resulting in a gain on the sale of assets of $38,447 to the joint venture. The Company's share of the gain was $18,251, which was included in equity in income of unconsolidated joint ventures. The Company used its share of the proceeds from the sale to pay down its line of credit and for general corporate purposes. On September 17, 2013, the Company’s joint venture in Camelback Colonnade, a 619,000 square foot community center in Phoenix, Arizona, was restructured. As a result of the restructuring, the Company’s ownership interest in Camelback Colonnade decreased from 73.2% to 67.5%. Prior to the restructuring, the Company had accounted for its investment in Camelback Colonnade under the equity method of accounting due to substantive participation rights held by the outside partners. Upon completion of the restructuring, these substantive participation rights were terminated and the Company obtained voting control of the joint venture. This transaction is referred to herein as the "Camelback Colonnade Restructuring." Since the date of the restructuring, the Company has included Camelback Colonnade in its consolidated financial statements (See Note 13—Acquisitions). On October 8, 2013, the Company's joint venture in Ridgmar Mall, a 1,273,000 square foot regional shopping center in Fort Worth, Texas, sold the property for $60,900, resulting in a gain on the sale of assets of $6,243 to the joint venture. The Company's share of the gain was $3,121, which was included in equity in income from joint ventures. The cash proceeds from the sale were used to pay off the $51,657 mortgage loan on the property and the remaining $9,243, net of closing costs, was distributed to the partners. The Company used its share of the proceeds from the sale to pay down its line of credit and for general corporate purposes. On October 24, 2013, the Company acquired the remaining 33.3% ownership interest in Superstition Springs Center, a 1,082,000 square foot regional shopping center in Mesa, Arizona, that it did not own for $46,162. The purchase price was funded by a cash payment of $23,662 and the assumption of the third party's pro rata share of the mortgage note payable on the property of $22,500. Prior to the acquisition, the Company had accounted for its investment in Superstition Springs Center under the equity method. Since the date of acquisition, the Company has included Superstition Springs Center in its consolidated financial statements (See Note 13—Acquisitions). On June 4, 2014, the Company acquired the remaining 49.0% ownership interest in Cascade Mall, a 593,000 square foot regional shopping center in Burlington, Washington, that it did not own for a cash payment of $15,233. The Company purchased Cascade Mall from its joint venture in Pacific Premier Retail LP. Prior to the acquisition, the Company had accounted for its investment in Cascade Mall under the equity method. Since the date of acquisition, the Company has included Cascade Mall in its consolidated financial statements (See Note 13—Acquisitions). On July 30, 2014, the Company formed a joint venture with Pennsylvania Real Estate Investment Trust to redevelop The Gallery, a 1,405,000 square foot regional shopping center in Philadelphia, Pennsylvania. The Company invested $106,800 for a 50% interest in the joint venture, which was funded by borrowings under its line of credit. On August 28, 2014, the Company sold its 30% ownership interest in Wilshire Boulevard, a 40,000 square foot freestanding store in Santa Monica, California, for a total sales price of $17,100, resulting in a gain on the sale of assets of $9,033, which was included in gain (loss) on remeasurement, sale or write down of assets, net. The sales price was funded by a cash payment of $15,386 and the assumption of the Company's share of the mortgage note payable on the property of $1,714. The Company used the cash proceeds from the sale to pay down its line of credit and for general corporate purposes. Combined and condensed balance sheets and statements of operations are presented below for all unconsolidated joint ventures. Combined and Condensed Balance Sheets of Unconsolidated Joint Ventures:
| September 30, 2014 |  | December 31, 2013
Assets(1): |  |  |
Properties, net | $ | 3,798,082 |  |  | $ | 3,435,737 |
Other assets | 305,649 |  |  | 295,719 |
Total assets | $ | 4,103,731 |  |  | $ | 3,731,456 |
Liabilities and partners' capital(1): |  |  |
Mortgage notes payable(2) | $ | 3,420,951 |  |  | $ | 3,518,215 |
Other liabilities | 242,861 |  |  | 202,444 |
Company's capital (deficit) | 200,943 |  |  | (25,367 | )
Outside partners' capital | 238,976 |  |  | 36,164 |
Total liabilities and partners' capital | $ | 4,103,731 |  |  | $ | 3,731,456 |
Investments in unconsolidated joint ventures: |  |  |
Company's capital (deficit) | $ | 200,943 |  |  | $ | (25,367 | )
Basis adjustment(3) | 472,808 |  |  | 474,658 |
| $ | 673,751 |  |  | $ | 449,291 |
Assets—Investments in unconsolidated joint ventures | $ | 927,424 |  |  | $ | 701,483 |
Liabilities—Distributions in excess of investments in unconsolidated joint ventures | (253,673 | ) |  | (252,192 | )
| $ | 673,751 |  |  | $ | 449,291 |
(1) | These amounts include the assets and liabilities of the following joint ventures as of September 30, 2014 and December 31, 2013:
| Pacific Premier Retail LP |  | Tysons Corner LLC
As of September 30, 2014: |  |  |
Total Assets | $ | 736,872 |  |  | $ | 340,973 |
Total Liabilities | $ | 813,400 |  |  | $ | 873,896 |
As of December 31, 2013: |  |  |
Total Assets | $ | 775,012 |  |  | $ | 356,871 |
Total Liabilities | $ | 812,725 |  |  | $ | 887,413 |
(2) | Certain mortgage notes payable could become recourse debt to the Company should the joint venture be unable to discharge the obligations of the related debt. As of September 30, 2014 and December 31, 2013, a total of $33,540 could become recourse debt to the Company. As of September 30, 2014 and December 31, 2013, the Company had an indemnity agreement from a joint venture partner for $16,770 of the guaranteed amount.
Included in mortgage notes payable are amounts due to affiliates of Northwestern Mutual Life ("NML") of $703,589 and $712,455 as of September 30, 2014 and December 31, 2013, respectively. NML is considered a related party because it is a joint venture partner with the Company in Macerich Northwestern Associates—Broadway Plaza. Interest expense on these borrowings was $9,645 and $7,920 for the three months ended September 30, 2014 and 2013, respectively, and $28,992 and $21,717 for the nine months ended September 30, 2014 and 2013, respectively.
(3) | The Company amortizes the difference between the cost of its investments in unconsolidated joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was $948 and $3,860 for the three months ended September 30, 2014 and 2013, respectively, and $3,227 and $9,753 for the nine months ended September 30, 2014 and 2013, respectively.
Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
| Pacific Premier Retail LP |  | Tysons Corner LLC |  | Other Joint Ventures |  | Total
Three Months Ended September 30, 2014 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents | $ | 25,095 |  |  | $ | 15,542 |  |  | $ | 61,522 |  |  | $ | 102,159 |
Percentage rents | 653 |  |  | 115 |  |  | 3,683 |  |  | 4,451 |
Tenant recoveries | 11,495 |  |  | 11,757 |  |  | 26,235 |  |  | 49,487 |
Other | 962 |  |  | 678 |  |  | 9,523 |  |  | 11,163 |
Total revenues | 38,205 |  |  | 28,092 |  |  | 100,963 |  |  | 167,260 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses | 9,959 |  |  | 9,694 |  |  | 37,384 |  |  | 57,037 |
Interest expense | 9,643 |  |  | 8,107 |  |  | 17,651 |  |  | 35,401 |
Depreciation and amortization | 8,199 |  |  | 5,162 |  |  | 24,006 |  |  | 37,367 |
Total operating expenses | 27,801 |  |  | 22,963 |  |  | 79,041 |  |  | 129,805 |
Loss on remeasurement, sale or write down of assets, net | (732 | ) |  | — |  |  | (6 | ) |  | (738 | )
Net income | $ | 9,672 |  |  | $ | 5,129 |  |  | $ | 21,916 |  |  | $ | 36,717 |
Company's equity in net income | $ | 4,379 |  |  | $ | 988 |  |  | $ | 11,568 |  |  | $ | 16,935 |
Three Months Ended September 30, 2013 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents | $ | 27,426 |  |  | $ | 15,344 |  |  | $ | 59,940 |  |  | $ | 102,710 |
Percentage rents | 572 |  |  | (12 | ) |  | 2,938 |  |  | 3,498 |
Tenant recoveries | 12,115 |  |  | 11,304 |  |  | 28,361 |  |  | 51,780 |
Other | 1,086 |  |  | 510 |  |  | 8,143 |  |  | 9,739 |
Total revenues | 41,199 |  |  | 27,146 |  |  | 99,382 |  |  | 167,727 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses | 12,231 |  |  | 9,818 |  |  | 35,926 |  |  | 57,975 |
Interest expense | 10,251 |  |  | 3,801 |  |  | 21,062 |  |  | 35,114 |
Depreciation and amortization | 9,067 |  |  | 4,568 |  |  | 22,688 |  |  | 36,323 |
Total operating expenses | 31,549 |  |  | 18,187 |  |  | 79,676 |  |  | 129,412 |
Gain (loss) on remeasurement, sale or write down of assets, net | 38,432 |  |  | — |  |  | (328 | ) |  | 38,104 |
Gain on extinguishment of debt | — |  |  | 14 |  |  | — |  |  | 14 |
Net income | $ | 48,082 |  |  | $ | 8,973 |  |  | $ | 19,378 |  |  | $ | 76,433 |
Company's equity in net income | $ | 21,567 |  |  | $ | 2,919 |  |  | $ | 10,675 |  |  | $ | 35,161 |
| Pacific Premier Retail LP |  | Tysons Corner LLC |  | Other Joint Ventures |  | Total
Nine Months Ended September 30, 2014 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents | $ | 76,829 |  |  | $ | 47,516 |  |  | $ | 173,710 |  |  | $ | 298,055 |
Percentage rents | 1,862 |  |  | 719 |  |  | 7,915 |  |  | 10,496 |
Tenant recoveries | 34,614 |  |  | 35,140 |  |  | 75,606 |  |  | 145,360 |
Other | 3,652 |  |  | 2,294 |  |  | 25,821 |  |  | 31,767 |
Total revenues | 116,957 |  |  | 85,669 |  |  | 283,052 |  |  | 485,678 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses | 31,772 |  |  | 29,374 |  |  | 101,522 |  |  | 162,668 |
Interest expense | 29,572 |  |  | 23,590 |  |  | 56,717 |  |  | 109,879 |
Depreciation and amortization | 25,747 |  |  | 14,520 |  |  | 66,768 |  |  | 107,035 |
Total operating expenses | 87,091 |  |  | 67,484 |  |  | 225,007 |  |  | 379,582 |
Loss on remeasurement, sale or write down of assets, net | (7,044 | ) |  | — |  |  | (66 | ) |  | (7,110 | )
Net income | $ | 22,822 |  |  | $ | 18,185 |  |  | $ | 57,979 |  |  | $ | 98,986 |
Company's equity in net income | $ | 9,865 |  |  | $ | 4,357 |  |  | $ | 30,385 |  |  | $ | 44,607 |
Nine Months Ended September 30, 2013 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents | $ | 91,779 |  |  | $ | 46,526 |  |  | $ | 180,870 |  |  | $ | 319,175 |
Percentage rents | 2,155 |  |  | 734 |  |  | 7,176 |  |  | 10,065 |
Tenant recoveries | 40,555 |  |  | 34,025 |  |  | 82,261 |  |  | 156,841 |
Other | 3,980 |  |  | 2,080 |  |  | 26,923 |  |  | 32,983 |
Total revenues | 138,469 |  |  | 83,365 |  |  | 297,230 |  |  | 519,064 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses | 40,948 |  |  | 26,819 |  |  | 106,887 |  |  | 174,654 |
Interest expense | 33,118 |  |  | 7,825 |  |  | 66,108 |  |  | 107,051 |
Depreciation and amortization | 30,697 |  |  | 13,499 |  |  | 67,808 |  |  | 112,004 |
Total operating expenses | 104,763 |  |  | 48,143 |  |  | 240,803 |  |  | 393,709 |
Gain on remeasurement, sale or write down of assets, net | 182,781 |  |  | — |  |  | 373 |  |  | 183,154 |
Gain on extinguishment of debt | — |  |  | 14 |  |  | — |  |  | 14 |
Net income | $ | 216,487 |  |  | $ | 35,236 |  |  | $ | 56,800 |  |  | $ | 308,523 |
Company's equity in net income | $ | 105,684 |  |  | $ | 12,957 |  |  | $ | 26,836 |  |  | $ | 145,477 |
Significant accounting policies used by the unconsolidated joint ventures are similar to those used by the Company.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32787-111569 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32847-111569 + Details
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