Investments in Unconsolidated Joint Ventures: (Tables)

12 Months Ended

Dec. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Schedule of ownership interest in 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	%

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(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.

Combined and Condensed Balance Sheets of Unconsolidated Joint Ventures and Other Related Information

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

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(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

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

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(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.