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Investments in Unconsolidated Joint Ventures: | 12 Months Ended
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Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Joint Ventures: | Investments in Unconsolidated Joint Ventures: The following are the Company's direct or indirect investments in various joint ventures with third parties. The Company's direct or indirect ownership interest in each joint venture as of December 31, 2015 was as follows:
Joint Venture | Ownership %(1)
443 Wabash MAB LLC | 45.0 | %
AM Tysons LLC | 50.0 | %
Biltmore Shopping Center Partners LLC | 50.0 | %
Candlestick Center LLC—Fashion Outlets of San Francisco | 50.1 | %
Coolidge Holding LLC | 37.5 | %
Corte Madera Village, LLC | 50.1 | %
Fashion Outlets of Philadelphia—Various Entities | 50.0 | %
Jaren Associates #4 | 12.5 | %
Kierland Commons Investment LLC | 50.0 | %
Macerich Northwestern Associates—Broadway Plaza | 50.0 | %
MS Portfolio LLC | 50.0 | %
North Bridge Chicago LLC | 50.0 | %
One Scottsdale Investors LLC | 50.0 | %
Pacific Premier Retail LLC—Various Properties | 60.0 | %
Propcor II Associates, LLC—Boulevard Shops | 50.0 | %
Scottsdale Fashion Square Partnership | 50.0 | %
The Market at Estrella Falls LLC | 40.1 | %
Tysons Corner LLC | 50.0 | %
Tysons Corner Hotel I LLC | 50.0 | %
Tysons Corner Property Holdings II LLC | 50.0 | %
Tysons Corner Property LLC | 50.0 | %
West Acres Development, LLP | 19.0 | %
Westcor/Gilbert, L.L.C. | 50.0 | %
Westcor/Queen Creek LLC | 38.0 | %
Westcor/Surprise Auto Park LLC | 33.3 | %
WMAP, L.L.C.—Atlas Park | 50.0 | %
_______________________________________________________________________________
(1) | The Company's ownership interest in this table reflects its direct or indirect legal ownership interest. Legal ownership may, at times, not equal the Company’s economic interest in the listed entities because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests. Substantially all of the Company’s joint venture agreements contain rights of first refusal, buy-sell provisions, exit rights, default dilution remedies and/or other break up provisions or remedies which are customary in real estate joint venture agreements and which may, positively or negatively, affect the ultimate realization of cash flow and/or capital or liquidation proceeds.
The Company has made the following investments and dispositions in unconsolidated joint ventures during the years ended December 31, 2015, 2014 and 2013: On May 29, 2013, the Company's joint venture in Pacific Premier Retail LLC 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 during the year ended December 31, 2013. 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 LLC 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 during the year ended December 31, 2013. 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 LLC 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 during the year ended December 31, 2013. 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 included Camelback Colonnade in its consolidated financial statements (See Note 13—Acquisitions) until its sale on December 29, 2014 (See Note 14—Dispositions). 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 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 for the year ended December 31, 2013. 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 that it did not previously 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 of accounting. 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% ownership interest in Cascade Mall, a 589,000 square foot regional shopping center in Burlington, Washington, that it did not previously own for a cash payment of $15,233. The Company purchased Cascade Mall from its joint venture in Pacific Premier Retail LLC. The cash payment was funded by borrowings under the Company's line of credit. Prior to the acquisition, the Company had accounted for its investment in Cascade Mall under the equity method of accounting. 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 Fashion Outlets of Philadelphia, a 1,376,000 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 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. On November 13, 2014, the Company formed a joint venture to develop Fashion Outlets of San Francisco, a 500,000 square foot outlet center in San Francisco, California. In connection with the formation of the joint venture, the Company issued a note receivable for $65,130 to its joint venture partner that bears interest at LIBOR plus 2.0% and matures upon the completion of certain milestones in connection with the development of Fashion Outlets of San Francisco (See Note 17—Related Party Transactions). On November 14, 2014, the Company acquired the remaining 49% ownership interest that it did not previously own in two separate joint ventures, Pacific Premier Retail LLC and Queens JV LP, which together owned five Centers: Lakewood Center, a 2,075,000 square foot regional shopping center in Lakewood, California; Los Cerritos Center, a 1,292,000 square foot regional shopping center in Cerritos, California; Queens Center, a 966,000 square foot regional shopping center in Queens, New York; Stonewood Center, a 932,000 square foot regional shopping center in Downey, California; and Washington Square, a 1,441,000 square foot regional shopping center in Portland, Oregon (collectively referred to herein as the "PPR Queens Portfolio"). The total consideration of $1,838,886 was funded by the direct issuance of $1,166,777 of common stock of the Company (See Note 12—Stockholders' Equity) and the assumption of the third party's pro rata share of the mortgage notes payable on the properties of $672,109. Prior to the acquisition, the Company had accounted for its investment in these joint ventures under the equity method of accounting. Since the date of acquisition, the Company has included the PPR Queens Portfolio in its consolidated financial statements (See Note 13—Acquisitions). On November 20, 2014, the Company purchased a 45% interest in 443 North Wabash Avenue, a 65,000 square foot undeveloped site adjacent to the Company's joint venture in The Shops at North Bridge in Chicago, Illinois, for a cash payment of $18,900. The cash payment was funded by borrowings under the Company's line of credit. On February 17, 2015, the Company acquired the remaining 50% ownership interest in Inland Center, an 866,000 square foot regional shopping center in San Bernardino, California, that it did not previously own for $51,250. The purchase price was funded by a cash payment of $26,250 and the assumption of the third party's share of the mortgage note payable on the property of $25,000. Concurrent with the purchase of the joint venture interest, the Company paid off the $50,000 mortgage note payable on the property. The cash payment was funded by borrowings under the Company's line of credit. Prior to the acquisition, the Company had accounted for its investment in Inland Center under the equity method of accounting. Since the date of acquisition, the Company has included Inland Center in its consolidated financial statements (See Note 13—Acquisitions). On April 30, 2015, the Company entered into a 50/50 joint venture with Sears to own nine freestanding stores located at Arrowhead Towne Center, Chandler Fashion Center, Danbury Fair Mall, Deptford Mall, Freehold Raceway Mall, Los Cerritos Center, South Plains Mall, Vintage Faire Mall and Washington Square. The Company invested $150,000 for a 50% ownership interest in the joint venture, which was funded by borrowings under the Company's line of credit. On October 30, 2015, the Company sold a 40% ownership interest in Pacific Premier Retail LLC (the "PPR Portfolio"), which owns Lakewood Center, a 2,075,000 square foot regional shopping center in Lakewood, California; Los Cerritos Center, a 1,292,000 square foot regional shopping center in Cerritos, California; South Plains Mall, a 1,127,000 square foot regional shopping center in Lubbock, Texas; and Washington Square, a 1,441,000 square foot regional shopping center in Portland, Oregon, for a total sales price of $1,258,643, resulting in a gain on sale of assets of $311,194. The sales price was funded by a cash payment of $545,643 and the assumption of a pro rata share of the mortgage notes payable on the properties of $713,000. The Company used the cash proceeds from the sales to pay down its line of credit and for general corporate purposes, which included funding the ASR and Special Dividend (See Note 12—Stockholders' Equity). On January 6, 2016, the Company sold a 40% ownership interest in Arrowhead Towne Center, a 1,197,000 square foot regional shopping center in Glendale, Arizona; for $284,000 (See Note 22—Subsequent Events). The sales price was funded by a cash payment of $124,000 and the assumption of a pro rata share of the mortgage note payable on the property of $160,000. The Company used the cash proceeds from the sales to pay down its line of credit and for general corporate purposes, which included funding the Special Dividend (See Note 12—Stockholders' Equity). On January 14, 2016, the Company formed a joint venture, whereby the Company sold a 49% ownership interest in Deptford Mall, a 1,040,000 square foot regional shopping center in Deptford, New Jersey; FlatIron Crossing, a 1,430,000 square foot regional shopping center in Broomfield, Colorado; and Twenty Ninth Street, an 850,000 square foot regional shopping center in Boulder, Colorado for $750,980. The sales price was funded by a cash payment of $458,110 and the assumption of a pro rata share of the mortgage note payable on the properties of $292,870. (See Note 22—Subsequent Events). 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 as of December 31:
| 2015 |  | 2014
Assets(1): |  |  |
Properties, net | $ | 6,334,442 |  |  | $ | 2,967,878 |
Other assets | 517,053 |  |  | 208,726 |
Total assets | $ | 6,851,495 |  |  | $ | 3,176,604 |
Liabilities and partners' capital(1): |  |  |
Mortgage and other notes payable(2) | $ | 3,614,401 |  |  | $ | 2,038,379 |
Other liabilities | 358,156 |  |  | 195,766 |
Company's capital | 1,585,796 |  |  | 489,349 |
Outside partners' capital | 1,293,142 |  |  | 453,110 |
Total liabilities and partners' capital | $ | 6,851,495 |  |  | $ | 3,176,604 |
Investment in unconsolidated joint ventures: |  |  |
Company's capital | $ | 1,585,796 |  |  | $ | 489,349 |
Basis adjustment(3) | (77,701 | ) |  | 464,826 |
| $ | 1,508,095 |  |  | $ | 954,175 |
Assets—Investments in unconsolidated joint ventures | $ | 1,532,552 |  |  | $ | 984,132 |
Liabilities—Distributions in excess of investments in unconsolidated joint ventures | (24,457 | ) |  | (29,957 | )
| $ | 1,508,095 |  |  | $ | 954,175 |
_______________________________________________________________________________
(1) | These amounts include the assets of $3,283,702 and liabilities of $1,938,241 of Pacific Premier Retail LLC as of December 31, 2015.
(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 December 31, 2015 and 2014, a total of $5,000 and $33,540, respectively, could become recourse debt to the Company. As of December 31, 2015 and 2014, the Company has an indemnity agreement from a joint venture partner for $2,500 and $16,770, respectively, of the guaranteed amount.
Included in mortgage notes payable are amounts due to affiliates of Northwestern Mutual Life ("NML") of $461,778 and $606,263 as of December 31, 2015 and 2014, 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 incurred on these borrowings amounted to $29,372, $38,113 and $31,549 for the years ended December 31, 2015, 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 $5,619, $5,109 and $10,734 for the years ended December 31, 2015, 2014 and 2013, respectively.
Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
|  |  | Pacific Premier Retail LLC(1) |  | Other Joint Ventures |  | Total
Year Ended December 31, 2015 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents |  |  | $ | 21,172 |  |  | $ | 293,921 |  |  | $ | 315,093 |
Percentage rents |  |  | 2,569 |  |  | 13,188 |  |  | 15,757 |
Tenant recoveries |  |  | 8,408 |  |  | 129,059 |  |  | 137,467 |
Other |  |  | 1,182 |  |  | 33,931 |  |  | 35,113 |
Total revenues |  |  | 33,331 |  |  | 470,099 |  |  | 503,430 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses |  |  | 6,852 |  |  | 165,795 |  |  | 172,647 |
Interest expense |  |  | 10,448 |  |  | 78,279 |  |  | 88,727 |
Depreciation and amortization |  |  | 16,919 |  |  | 133,707 |  |  | 150,626 |
Total operating expenses |  |  | 34,219 |  |  | 377,781 |  |  | 412,000 |
Gain on sale of assets |  |  | — |  |  | 9,850 |  |  | 9,850 |
Loss on early extinguishment of debt |  |  | — |  |  | (3 | ) |  | (3 | )
Net income |  |  | $ | (888 | ) |  | $ | 102,165 |  |  | $ | 101,277 |
Company's equity in net income |  |  | $ | 1,409 |  |  | $ | 43,755 |  |  | $ | 45,164 |
Year Ended December 31, 2014 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents |  |  | $ | 88,831 |  |  | $ | 299,532 |  |  | $ | 388,363 |
Percentage rents |  |  | 2,652 |  |  | 14,509 |  |  | 17,161 |
Tenant recoveries |  |  | 40,118 |  |  | 146,623 |  |  | 186,741 |
Other |  |  | 4,090 |  |  | 36,615 |  |  | 40,705 |
Total revenues |  |  | 135,691 |  |  | 497,279 |  |  | 632,970 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses |  |  | 37,113 |  |  | 178,299 |  |  | 215,412 |
Interest expense |  |  | 34,113 |  |  | 102,974 |  |  | 137,087 |
Depreciation and amortization |  |  | 29,688 |  |  | 114,715 |  |  | 144,403 |
Total operating expenses |  |  | 100,914 |  |  | 395,988 |  |  | 496,902 |
(Loss) gain on sale of assets |  |  | (7,044 | ) |  | 10,687 |  |  | 3,643 |
Net income |  |  | $ | 27,733 |  |  | $ | 111,978 |  |  | $ | 139,711 |
Company's equity in net income |  |  | $ | 9,743 |  |  | $ | 50,883 |  |  | $ | 60,626 |
|  |  | Pacific Premier Retail LLC(1) |  | Other Joint Ventures |  | Total
Year Ended December 31, 2013 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents |  |  | $ | 118,164 |  |  | $ | 300,560 |  |  | $ | 418,724 |
Percentage rents |  |  | 4,586 |  |  | 15,003 |  |  | 19,589 |
Tenant recoveries |  |  | 52,470 |  |  | 151,701 |  |  | 204,171 |
Other |  |  | 5,882 |  |  | 39,745 |  |  | 45,627 |
Total revenues |  |  | 181,102 |  |  | 507,009 |  |  | 688,111 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses |  |  | 53,039 |  |  | 176,779 |  |  | 229,818 |
Interest expense |  |  | 43,445 |  |  | 101,877 |  |  | 145,322 |
Depreciation and amortization |  |  | 39,616 |  |  | 107,693 |  |  | 147,309 |
Total operating expenses |  |  | 136,100 |  |  | 386,349 |  |  | 522,449 |
Gain on sale of assets |  |  | 182,754 |  |  | 7,772 |  |  | 190,526 |
Gain on early extinguishment of debt |  |  | — |  |  | 14 |  |  | 14 |
Net income |  |  | $ | 227,756 |  |  | $ | 128,446 |  |  | $ | 356,202 |
Company's equity in net income |  |  | $ | 110,798 |  |  | $ | 56,782 |  |  | $ | 167,580 |
_______________________________________________________________________________
(1) | These amounts exclude the results of operations from November 14, 2014 to October 29, 2015, as Pacific Premier Retail LLC became wholly-owned as a result of the PPR Queens Portfolio acquisition. Pacific Premier Retail LLC was converted from wholly-owned to an unconsolidated joint venture effective October 30, 2015, as a result of the PPR Portfolio transaction, as discussed above.
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 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: 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=49116238&loc=d3e32847-111569 Reference 3: 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 4: 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=49116238&loc=d3e32787-111569 + Details
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