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Investments in Unconsolidated Joint Ventures | 9 Months Ended
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Sep. 30, 2018
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 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 $13,426. The Company's pro rata share of the gain on the sale of assets of $6,713 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. On July 6, 2018, the Company’s joint venture in The Market at Estrella Falls, a 298,000 square foot community center in Goodyear, Arizona, sold the property for $49,100, resulting in a gain on sale of assets of $12,598. The Company's share of the gain of $2,996 was included in equity in income from unconsolidated joint ventures. The proceeds were used to pay off the $24,118 mortgage loan payable on the property, settle development obligations and for distributions to the partners. The Company used its share of the net proceeds for general corporate purposes. On August 31, 2018, the Company completed the sale of a 75% ownership interest in Westside Pavilion, a 755,000 square foot regional shopping center in Los Angeles, California, for $142,500, resulting in a gain on sale of assets of $46,242. The sales price was funded by a cash payment of $36,903 and the assumption of a pro rata share of the mortgage note payable on the property of $105,597. From March 1, 2018 to the completion of the sale, the Company accounted for its interest in Westside Pavilion as a collaborative arrangement (See Note 14—Collaborative Arrangement). Since completion of the sale, the Company has accounted for its ownership interest in Westside Pavilion under the equity method of accounting. On September 6, 2018, the Company formed a 50/50 joint venture with Simon Property Group to develop Los Angeles Premium Outlets, a 400,000 square foot outlet center in Carson, California. The joint venture expects to complete the first phase of the development in fall 2021. 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, 2018 |  | December 31, 2017
Assets(1): |  |  |
Property, net | $ | 9,212,359 |  |  | $ | 9,052,105 |
Other assets | 717,509 |  |  | 635,838 |
Total assets | $ | 9,929,868 |  |  | $ | 9,687,943 |
Liabilities and partners' capital(1): |  |  |
Mortgage and other notes payable(2) | $ | 6,064,931 |  |  | $ | 5,296,594 |
Other liabilities | 390,211 |  |  | 405,052 |
Company's capital | 1,893,278 |  |  | 2,188,057 |
Outside partners' capital | 1,581,448 |  |  | 1,798,240 |
Total liabilities and partners' capital | $ | 9,929,868 |  |  | $ | 9,687,943 |
Investments in unconsolidated joint ventures: |  |  |
Company's capital | $ | 1,893,278 |  |  | $ | 2,188,057 |
Basis adjustment(3) | (543,403 | ) |  | (562,021 | )
| $ | 1,349,875 |  |  | $ | 1,626,036 |
Assets—Investments in unconsolidated joint ventures | $ | 1,465,174 |  |  | $ | 1,709,522 |
Liabilities—Distributions in excess of investments in unconsolidated joint ventures | (115,299 | ) |  | (83,486 | )
| $ | 1,349,875 |  |  | $ | 1,626,036 |
(1) | These amounts include the assets of $3,047,915 and $3,106,105 of Pacific Premier Retail LLC (the "PPR Portfolio") as of September 30, 2018 and December 31, 2017, respectively, and liabilities of $1,856,185 and $1,872,227 of the PPR Portfolio as of September 30, 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 $699,437 and $482,332 as of September 30, 2018 and December 31, 2017, respectively. NML is considered a related party because it was a joint venture partner with the Company in Macerich Northwestern Associates—Broadway Plaza until October 12, 2018. Interest expense on these borrowings was $7,148 and $4,903 for the three months ended September 30, 2018 and 2017, respectively, and $19,264 and $12,992 for the nine months ended September 30, 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 $1,160 and $4,227 for the three months ended September 30, 2018 and 2017, respectively, and $8,787 and $12,451 for the nine months ended September 30, 2018 and 2017, respectively.
Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
| PPR Portfolio |  | Other Joint Ventures |  | Total
Three Months Ended September 30, 2018 |  |  |  |  |
Revenues: |  |  |  |  |
Minimum rents | $ | 32,999 |  |  | $ | 123,799 |  |  | $ | 156,798 |
Percentage rents | 1,012 |  |  | 4,591 |  |  | 5,603 |
Tenant recoveries | 11,884 |  |  | 47,286 |  |  | 59,170 |
Other | 991 |  |  | 13,081 |  |  | 14,072 |
Total revenues | 46,886 |  |  | 188,757 |  |  | 235,643 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 9,893 |  |  | 61,528 |  |  | 71,421 |
Interest expense | 16,680 |  |  | 37,968 |  |  | 54,648 |
Depreciation and amortization | 24,582 |  |  | 61,323 |  |  | 85,905 |
Total operating expenses | 51,155 |  |  | 160,819 |  |  | 211,974 |
(Loss) gain on sale or write down of assets, net | (47 | ) |  | 12,622 |  |  | 12,575 |
Net (loss) income | $ | (4,316 | ) |  | $ | 40,560 |  |  | $ | 36,244 |
Company's equity in net (loss) income | $ | (148 | ) |  | $ | 18,937 |  |  | $ | 18,789 |
Three Months Ended September 30, 2017 |  |  |  |  |
Revenues: |  |  |  |  |
Minimum rents | $ | 35,052 |  |  | $ | 123,663 |  |  | $ | 158,715 |
Percentage rents | 903 |  |  | 3,953 |  |  | 4,856 |
Tenant recoveries | 12,015 |  |  | 47,841 |  |  | 59,856 |
Other | 1,713 |  |  | 12,329 |  |  | 14,042 |
Total revenues | 49,683 |  |  | 187,786 |  |  | 237,469 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 10,591 |  |  | 60,394 |  |  | 70,985 |
Interest expense | 16,890 |  |  | 33,214 |  |  | 50,104 |
Depreciation and amortization | 25,449 |  |  | 62,958 |  |  | 88,407 |
Total operating expenses | 52,930 |  |  | 156,566 |  |  | 209,496 |
Gain on sale or write down of assets, net | — |  |  | 13,426 |  |  | 13,426 |
Net (loss) income | $ | (3,247 | ) |  | $ | 44,646 |  |  | $ | 41,399 |
Company's equity in net income | $ | 620 |  |  | $ | 23,373 |  |  | $ | 23,993 |
| PPR Portfolio |  |  | Other Joint Ventures |  | Total
Nine Months Ended September 30, 2018 |  |  |  |  |  |
Revenues: |  |  |  |  |  |
Minimum rents | $ | 98,619 |  |  |  | $ | 375,447 |  |  | $ | 474,066 |
Percentage rents | 1,713 |  |  |  | 7,664 |  |  | 9,377 |
Tenant recoveries | 34,684 |  |  |  | 142,702 |  |  | 177,386 |
Other | 3,252 |  |  |  | 39,145 |  |  | 42,397 |
Total revenues | 138,268 |  |  |  | 564,958 |  |  | 703,226 |
Expenses: |  |  |  |  |  |
Shopping center and operating expenses | 29,091 |  |  |  | 183,174 |  |  | 212,265 |
Interest expense | 50,176 |  |  |  | 108,356 |  |  | 158,532 |
Depreciation and amortization | 73,137 |  |  |  | 184,708 |  |  | 257,845 |
Total operating expenses | 152,404 |  |  |  | 476,238 |  |  | 628,642 |
(Loss) gain on sale or write down of assets, net | (47 | ) |  |  | 14,151 |  |  | 14,104 |
Net (loss) income | $ | (14,183 | ) |  |  | $ | 102,871 |  |  | $ | 88,688 |
Company's equity in net (loss) income | $ | (1,021 | ) |  |  | $ | 52,351 |  |  | $ | 51,330 |
Nine Months Ended September 30, 2017 |  |  |  |  |  |
Revenues: |  |  |  |  |  |
Minimum rents | $ | 100,633 |  |  |  | $ | 373,931 |  |  | $ | 474,564 |
Percentage rents | 1,854 |  |  |  | 7,817 |  |  | 9,671 |
Tenant recoveries | 34,827 |  |  |  | 141,875 |  |  | 176,702 |
Other | 4,141 |  |  |  | 36,857 |  |  | 40,998 |
Total revenues | 141,455 |  |  |  | 560,480 |  |  | 701,935 |
Expenses: |  |  |  |  |  |
Shopping center and operating expenses | 30,062 |  |  |  | 181,475 |  |  | 211,537 |
Interest expense | 50,291 |  |  |  | 98,469 |  |  | 148,760 |
Depreciation and amortization | 76,527 |  |  |  | 187,927 |  |  | 264,454 |
Total operating expenses | 156,880 |  |  |  | 467,871 |  |  | 624,751 |
(Loss) gain on sale or write down of assets, net | (35 | ) |  |  | 18,005 |  |  | 17,970 |
Net (loss) income | $ | (15,460 | ) |  |  | $ | 110,614 |  |  | $ | 95,154 |
Company's equity in net (loss) income | $ | (1,376 | ) |  |  | $ | 58,148 |  |  | $ | 56,772 |
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 completed the transfer on August 31, 2018. During the period from March 1, 2018 to August 31, 2018, the Company accounted for the operations of Westside Pavilion as a collaborative arrangement. Both partners shared operating control of the property and the Company was reimbursed by the outside partner for 75% of the carrying cost of the property, which were defined in the agreement as operating expenses in excess of revenues, debt service and capital expenditures. Accordingly, the Company 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 was settled upon completion of the transfer of the property. In addition, the Company was reimbursed by its partner for its 75% share of mortgage loan principal payments and capital expenditures during the period. Since completion of the transfer, the Company has accounted for its investment in Westside Pavilion under the equity method of accounting (See Note 4—Investments in Unconsolidated Joint Ventures).

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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