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Collaborative Agreement | 3 Months Ended
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Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract] |
Collaborative Arrangement | Investments in Unconsolidated Joint Ventures: The Company has made the following recent investments and dispositions in its unconsolidated joint ventures: 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 the sale of assets of $2,290 was included in equity in income from 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 its ownership interest in 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 the sale of assets of $6,539 was included in equity in income from 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/Queen 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. On February 16, 2018, the Company's joint venture in Fashion District Philadelphia sold its ownership interest in an office building for $41,800, resulting in a gain on sale of assets of $5,545. The Company's pro rata share of the gain on the sale of assets of $2,773 was included in equity in income from unconsolidated joint ventures. The Company used its share 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:
| March 31, 2018 |  | December 31, 2017
Assets(1): |  |  |
Property, net | $ | 8,994,424 |  |  | $ | 9,052,105 |
Other assets | 602,553 |  |  | 635,838 |
Total assets | $ | 9,596,977 |  |  | $ | 9,687,943 |
Liabilities and partners' capital(1): |  |  |
Mortgage and other notes payable(2) | $ | 5,979,160 |  |  | $ | 5,296,594 |
Other liabilities | 388,245 |  |  | 405,052 |
Company's capital | 1,822,298 |  |  | 2,188,057 |
Outside partners' capital | 1,407,274 |  |  | 1,798,240 |
Total liabilities and partners' capital | $ | 9,596,977 |  |  | $ | 9,687,943 |
Investments in unconsolidated joint ventures: |  |  |
Company's capital | $ | 1,822,298 |  |  | $ | 2,188,057 |
Basis adjustment(3) | (555,691 | ) |  | (562,021 | )
| $ | 1,266,607 |  |  | $ | 1,626,036 |
Assets—Investments in unconsolidated joint ventures | $ | 1,360,486 |  |  | $ | 1,709,522 |
Liabilities—Distributions in excess of investments in unconsolidated joint ventures | (93,879 | ) |  | (83,486 | )
| $ | 1,266,607 |  |  | $ | 1,626,036 |
(1) | These amounts include the assets of $3,068,722 and $3,106,105 of Pacific Premier Retail LLC (the "PPR Portfolio") as of March 31, 2018 and December 31, 2017, respectively, and liabilities of $1,864,302 and $1,872,227 of the PPR Portfolio as of March 31, 2018 and December 31, 2017, respectively.
(2) | Included in mortgage and other notes payable are amounts due to an affiliate of Northwestern Mutual Life ("NML") of $704,402 and $482,332 as of March 31, 2018 and December 31, 2017, 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 $4,958 and $3,160 for the three months ended March 31, 2018 and 2017, 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 $4,103 and $4,027 for the three months ended March 31, 2018 and 2017, respectively.
Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
| PPR Portfolio |  |  | Other Joint Ventures |  | Total
Three Months Ended March 31, 2018 |  |  |  |  |  |
Revenues: |  |  |  |  |  |
Minimum rents | $ | 32,739 |  |  |  | $ | 127,708 |  |  | $ | 160,447 |
Percentage rents | 432 |  |  |  | 1,811 |  |  | 2,243 |
Tenant recoveries | 11,400 |  |  |  | 48,104 |  |  | 59,504 |
Other | 1,017 |  |  |  | 11,091 |  |  | 12,108 |
Total revenues | 45,588 |  |  |  | 188,714 |  |  | 234,302 |
Expenses: |  |  |  |  |  |
Shopping center and operating expenses | 9,681 |  |  |  | 61,321 |  |  | 71,002 |
Interest expense | 16,726 |  |  |  | 33,032 |  |  | 49,758 |
Depreciation and amortization | 24,484 |  |  |  | 62,412 |  |  | 86,896 |
Total operating expenses | 50,891 |  |  |  | 156,765 |  |  | 207,656 |
Gain on sale or write down of assets, net | — |  |  |  | 970 |  |  | 970 |
Net (loss) income | $ | (5,303 | ) |  |  | $ | 32,919 |  |  | $ | 27,616 |
Company's equity in net (loss) income | $ | (616 | ) |  |  | $ | 17,488 |  |  | $ | 16,872 |
Three Months Ended March 31, 2017 |  |  |  |  |  |
Revenues: |  |  |  |  |  |
Minimum rents | $ | 33,536 |  |  |  | $ | 123,503 |  |  | $ | 157,039 |
Percentage rents | 730 |  |  |  | 1,738 |  |  | 2,468 |
Tenant recoveries | 11,439 |  |  |  | 47,915 |  |  | 59,354 |
Other | 1,026 |  |  |  | 11,511 |  |  | 12,537 |
Total revenues | 46,731 |  |  |  | 184,667 |  |  | 231,398 |
Expenses: |  |  |  |  |  |
Shopping center and operating expenses | 9,760 |  |  |  | 62,195 |  |  | 71,955 |
Interest expense | 16,726 |  |  |  | 32,279 |  |  | 49,005 |
Depreciation and amortization | 26,275 |  |  |  | 62,879 |  |  | 89,154 |
Total operating expenses | 52,761 |  |  |  | 157,353 |  |  | 210,114 |
(Loss) gain on sale or write down of assets, net | (35 | ) |  |  | 4,581 |  |  | 4,546 |
Net (loss) income | $ | (6,065 | ) |  |  | $ | 31,895 |  |  | $ | 25,830 |
Company's equity in net (loss) income | $ | (962 | ) |  |  | $ | 16,805 |  |  | $ | 15,843 |
Significant accounting policies used by the unconsolidated joint ventures are similar to those used by the Company. Collaborative Arrangement: On March 1, 2018, the Company formed a 25/75 joint venture with a third party, whereby the Company agreed to contribute Westside Pavilion, a 755,000 square foot regional shopping center in Los Angeles, California in exchange for a cash payment of $142,500. The Company expects to complete the transfer during the next twelve months. Both partners share operating control of the property and the Company will be reimbursed by the outside partner for 75% of the carrying cost of the property, which are defined in the agreement as operating expenses in excess of revenues, debt service and capital expenditures. Since March 1, 2018, the Company has accounted for the operations of Westside Pavilion as a collaborative arrangement. Accordingly, the Company has reduced minimum rents, percentage rents, tenant recoveries, other revenue, shopping center and operating expenses and interest expense by its partner's 75% share and recorded a receivable due from its partner, which will be settled upon completion of the transfer of the property. The Company's partner's reimbursable 75% share of mortgage loan principal payments and capital expenditures are recorded as a receivable and a deferred gain that will be recognized when the transfer is completed. Additionally, the Company has classified the long-lived assets of Westside Pavilion as held for sale on its consolidated balance sheet as of March 1, 2018 and has ceased the recognition of depreciation and amortization expense.

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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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