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Investments in Unconsolidated Joint Ventures | 12 Months Ended
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Dec. 31, 2017
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, 2017 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 | %
Country Club Plaza KC Partners LLC | 50.0 | %
Fashion District Philadelphia—Various Entities | 50.0 | %
Jaren Associates #4 | 12.5 | %
Kierland Commons Investment LLC | 50.0 | %
Macerich HHF Centers LLC—Various Properties | 51.0 | %
Macerich Northwestern Associates—Broadway Plaza | 50.0 | %
MS Portfolio LLC | 50.0 | %
New River Associates LLC—Arrowhead Towne Center | 60.0 | %
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 | %
TM TRS Holding Company LLC | 50.0 | %
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/Queen Creek LLC | 38.2 | %
Westcor/Surprise Auto Park LLC | 33.3 | %
WMAP, L.L.C.—Atlas Park, The Shops at | 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.
The Company has made the following investments and dispositions in unconsolidated joint ventures during the years ended December 31, 2017, 2016 and 2015: On February 17, 2015, the Company acquired the remaining 50% ownership interest in Inland Center, an 869,000 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 14—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 2,070,000 square foot regional shopping center in Lakewood, California; Los Cerritos Center, a 1,305,000 square foot regional shopping center in Cerritos, California; South Plains Mall, a 1,128,000 square foot regional shopping center in Lubbock, Texas; and Washington Square, a 1,442,000 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 and other 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 13—Stockholders' Equity). Upon completion of the sale of the ownership interest, the Company no longer has a controlling interest in the joint venture due to the substantive participation rights of the outside partner. Accordingly, the Company accounts for its investment in the PPR Portfolio under the equity method of accounting. 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 $289,496, resulting in a gain on the sale of assets of $101,629. The sales price was funded by a cash payment of $129,496 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 sale to pay down its line of credit and for general corporate purposes, which included funding the Special Dividend (See Note 13—Stockholders' Equity). Upon completion of the sale of the ownership interest, the Company no longer has a controlling interest in the joint venture due to the substantive participation rights of the outside partner. Accordingly, the Company accounts for its investment in Arrowhead Towne Center under the equity method of accounting. 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 1,433,000 square foot regional shopping center in Broomfield, Colorado; and Twenty Ninth Street, an 847,000 square foot regional shopping center in Boulder, Colorado (the "MAC Heitman Portfolio"), for $771,478, resulting in a gain on the sale of assets of $340,734. The sales price was funded by a cash payment of $478,608 and the assumption of a pro rata share of the mortgage notes payable on the properties of $292,870. The Company used the cash proceeds from the sale to pay down its line of credit and for general corporate purposes. Upon completion of the sale of the ownership interest, the Company no longer has a controlling interest in the joint venture due to the substantive participation rights of the outside partner. Accordingly, the Company accounts for its investment in the MAC Heitman Portfolio under the equity method of accounting. On March 1, 2016, the Company, through a 50/50 joint venture, acquired Country Club Plaza, a 1,001,000 square foot regional shopping center in Kansas City, Missouri, for a purchase price of $660,000. The Company funded its pro rata share of the purchase price of $330,000 from borrowings under its line of credit. On March 28, 2016, the joint venture placed a $320,000 loan on the property that bears interest at an effective rate of 3.88% and matures on April 1, 2026. The Company used its pro rata share of the proceeds to pay down its line of credit and for general corporate purposes. On March 17, 2017, the Company's joint venture in Country Club Plaza sold an office building for $78,000, resulting in a gain on sale of assets of $4,580. The Company's pro rata share of the gain on sale of assets of $2,290 was included in equity in income of unconsolidated joint ventures. The Company used its share of the proceeds to fund repurchases under the 2017 Stock Buyback Program (See Note 13—Stockholders' Equity). On September 18, 2017, the Company's joint venture in Fashion District Philadelphia sold an office building for $61,500, resulting in a gain on sale of assets of $13,078. The Company's pro rata share of the gain on sale of assets of $6,539 was included in equity in income of unconsolidated joint ventures. The Company used its share of the proceeds to fund repurchases under the 2017 Stock Buyback Program (See Note 13—Stockholders' Equity). On December 14, 2017, the Company’s joint venture in Westcor/Queens Creek LLC sold land for $30,491, resulting in a gain on sale of assets of $14,853. The Company’s share of the gain on sale was $5,436, which was included in equity in income of unconsolidated joint ventures. The Company used its portion of the proceeds 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:
| 2017 |  | 2016
Assets(1): |  |  |
Property, net | $ | 9,052,105 |  |  | $ | 9,176,642 |
Other assets | 635,838 |  |  | 614,607 |
Total assets | $ | 9,687,943 |  |  | $ | 9,791,249 |
Liabilities and partners' capital(1): |  |  |
Mortgage and other notes payable(2) | $ | 5,296,594 |  |  | $ | 5,224,713 |
Other liabilities | 405,052 |  |  | 403,369 |
Company's capital | 2,188,057 |  |  | 2,279,819 |
Outside partners' capital | 1,798,240 |  |  | 1,883,348 |
Total liabilities and partners' capital | $ | 9,687,943 |  |  | $ | 9,791,249 |
Investment in unconsolidated joint ventures: |  |  |
Company's capital | $ | 2,188,057 |  |  | $ | 2,279,819 |
Basis adjustment(3) | (562,021 | ) |  | (584,887 | )
| $ | 1,626,036 |  |  | $ | 1,694,932 |
Assets—Investments in unconsolidated joint ventures | $ | 1,709,522 |  |  | $ | 1,773,558 |
Liabilities—Distributions in excess of investments in unconsolidated joint ventures | (83,486 | ) |  | (78,626 | )
| $ | 1,626,036 |  |  | $ | 1,694,932 |
_______________________________________________________________________________
(1) | These amounts include the assets of $3,106,105 and $3,179,255 of the PPR Portfolio as of December 31, 2017 and 2016, respectively, and liabilities of $1,872,227 and $1,887,952 of the PPR Portfolio as of December 31, 2017 and 2016, respectively.
(2) | Included in mortgage and other notes payable are amounts due to affiliates of Northwestern Mutual Life ("NML") of $482,332 and $265,863 as of December 31, 2017 and 2016, 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 $17,898, $16,898 and $29,372 for the years ended December 31, 2017, 2016 and 2015, 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 $16,562, $17,610 and $5,619 for the years ended December 31, 2017, 2016 and 2015, respectively.
Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
|  |  | PPR Portfolio |  | Other Joint Ventures |  | Total
Year Ended December 31, 2017 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents |  |  | $ | 134,450 |  |  | $ | 501,732 |  |  | $ | 636,182 |
Percentage rents |  |  | 5,050 |  |  | 13,866 |  |  | 18,916 |
Tenant recoveries |  |  | 46,575 |  |  | 189,059 |  |  | 235,634 |
Other |  |  | 5,959 |  |  | 51,767 |  |  | 57,726 |
Total revenues |  |  | 192,034 |  |  | 756,424 |  |  | 948,458 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses |  |  | 41,340 |  |  | 243,271 |  |  | 284,611 |
Interest expense |  |  | 67,053 |  |  | 131,714 |  |  | 198,767 |
Depreciation and amortization |  |  | 101,625 |  |  | 250,921 |  |  | 352,546 |
Total operating expenses |  |  | 210,018 |  |  | 625,906 |  |  | 835,924 |
(Loss) gain on sale of assets |  |  | (36 | ) |  | 33,861 |  |  | 33,825 |
Net (loss) income |  |  | $ | (18,020 | ) |  | $ | 164,379 |  |  | $ | 146,359 |
Company's equity in net (loss) income |  |  | $ | (453 | ) |  | $ | 85,999 |  |  | $ | 85,546 |
Year Ended December 31, 2016 |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Minimum rents |  |  | $ | 129,145 |  |  | $ | 471,139 |  |  | $ | 600,284 |
Percentage rents |  |  | 5,437 |  |  | 15,480 |  |  | 20,917 |
Tenant recoveries |  |  | 47,856 |  |  | 187,288 |  |  | 235,144 |
Other |  |  | 6,303 |  |  | 49,937 |  |  | 56,240 |
Total revenues |  |  | 188,741 |  |  | 723,844 |  |  | 912,585 |
Expenses: |  |  |  |  |  |  |
Shopping center and operating expenses |  |  | 39,804 |  |  | 234,704 |  |  | 274,508 |
Interest expense |  |  | 64,626 |  |  | 123,043 |  |  | 187,669 |
Depreciation and amortization |  |  | 108,880 |  |  | 251,498 |  |  | 360,378 |
Total operating expenses |  |  | 213,310 |  |  | 609,245 |  |  | 822,555 |
Loss on sale of assets |  |  | — |  |  | (375 | ) |  | (375 | )
Net (loss) income |  |  | $ | (24,569 | ) |  | $ | 114,224 |  |  | $ | 89,655 |
Company's equity in net (loss) income |  |  | $ | (3,088 | ) |  | $ | 60,029 |  |  | $ | 56,941 |
|  |  | PPR Portfolio(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 extinguishment of debt |  |  | — |  |  | (3 | ) |  | (3 | )
Net (loss) income |  |  | $ | (888 | ) |  | $ | 102,165 |  |  | $ | 101,277 |
Company's equity in net income |  |  | $ | 1,409 |  |  | $ | 43,755 |  |  | $ | 45,164 |
_______________________________________________________________________________
(1) | These amounts exclude the results of operations from January 1, 2015 to October 29, 2015, as the PPR Portfolio was converted from Consolidated Centers to an Unconsolidated Joint Venture Centers 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 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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