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Basis of Presentation and Recently Issued Accounting Pronouncements | 3 Months Ended
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Mar. 31, 2018
Accounting Policies [Abstract] |
Basis of Presentation and Recently Issued Accounting Pronouncements | Basis of Presentation and Recently Issued Accounting Pronouncements The accompanying condensed consolidated financial statements reflect the condensed consolidated financial position of the Company as of March 31, 2018 and December 31, 2017 and the condensed consolidated results of its operations and cash flows for the three months ended March 31, 2018 and 2017. These condensed consolidated financial statements have been prepared in accordance with GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, judgments and assumptions are required in a number of areas, including, but not limited to, evaluating the impairment of long-lived assets, allocating the purchase price of acquired assets, determining the fair value of debt and evaluating the collectability of accounts receivable. The Company bases these estimates, judgments and assumptions on historical experience and various other factors that the Company believes to be reasonable under the circumstances. Actual results may differ from these estimates. Reclassifications The Company has made certain reclassifications to the condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2017 to conform to the 2018 presentation, including a $915 reclassification of certain payroll costs from general and administrative expenses to property operating expenses based on the determination by the Company that certain functions' activities were more directly associated with the operations of the retail properties and not that of corporate level activities. In addition, certain reclassifications have been made to the condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2017 to reflect the results of Worldgate Plaza as discontinued operations. Upon the adoption of ASU No. 2016-18, Statement of Cash Flows, the Company has made certain reclassifications to the condensed consolidated statement of cash flows for the three months ended March 31, 2017 to conform to the 2018 presentation. For the three months ended March 31, 2017, the adoption resulted in a net $7,327 decrease in cash used in investing activities. Additionally, the Company determined the reflection of funds held in escrow for potential future property acquisitions as restricted cash most appropriately reflects the nature of the restrictions on the balances and underlying transactions; historically, the funds were recorded as deferred costs and other assets, net. This reclassification increased restricted cash by $0, $14,900 and $6,650 as of December 31, 2017, March 31, 2017 and December 31, 2016, respectively. As a result, the Company made certain reclassifications to the condensed consolidated statement of cash flows for the three months ended March 31, 2017 to conform to the 2018 presentation, including a $8,250 decrease in net cash used in investing activities resulting from the reclassification of funds held in escrow for potential future property acquisitions. Recently Issued Accounting Pronouncements Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those promised goods or services. The Company has included "Note 3. Revenue Recognition" to address the incremental disclosures pertaining to the new standard. The Company adopted ASU No. 2014-09 and the related subsequent updates as of January 1, 2018 on a modified retrospective basis. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which, among other requirements, generally requires equity investments to be measured at fair value with changes in fair value recognized in net income. Upon the Company’s modified retrospective adoption on January 1, 2018, the Company recognized the net unrealized gain of $275 on available-for-sale equity securities as an adjustment to accumulated comprehensive income with a corresponding adjustment to the opening balance of distributions in excess of accumulated net income. Subsequent to January 1, 2018, all changes in the fair value of the Company’s investments are recognized through net income and the Company adjusts net income for the unrealized gain or loss to determine cash flows from operating activities. The Company classifies cash flows from purchases and sales of marketable securities as an investing activity. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows. This guidance is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Upon the Company’s retrospective adoption on January 1, 2018, the Company presents debt prepayment and extinguishment costs as cash outflows from financing activities, cash proceeds from the settlement of insurance claims based on the nature of the loss, and distributions from equity method investments as investing or operating, or some combination thereof, based on the nature of the distribution approach. The classification of debt prepayment costs as a financing outflow would impact the Company’s condensed consolidated statements of cash flows as these costs had previously been reflected as operating outflows. For the three months ended March 31, 2018 and 2017, the Company incurred no prepayment penalties. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows. Under the standard, entities are required to explain the changes in the combined total of restricted and unrestricted cash in the statement of cash flows. Upon the Company’s retrospective adoption on January 1, 2018, the Company includes amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents. For the three months ended March 31, 2017, the adoption resulted in a net $7,327 decrease in net cash used in investing activities. In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets. The standard, which adds guidance for partial sales of nonfinancial assets and clarifies the scope of Subtopic 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets, applies to the derecognition of all nonfinancial assets (including real estate) for which the counterparty is not a customer. The new guidance requires an entity to derecognize a nonfinancial asset in a partial sale transaction when it ceases to have a controlling financial interest in the asset and has transferred control of the asset and generally requires the full gain be recognized. For property sales where the Company has no continuing involvement, there should be no change to the Company's timing of gain or loss recognition. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases, amending the existing guidance for lease accounting for both parties to a lease contract (i.e. lessees and lessors). ASU No. 2016-02 will be effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The new standard requires a modified retrospective transition method for all leases existing at the date of initial application, with an option to use certain practical expedients available. Due to the new standard’s narrowed definition of initial direct costs, the Company expects to expense as incurred certain lease origination costs currently capitalized and amortized to expense over the lease term. However, the Company does not believe this change will have a material impact on its condensed consolidated financial statements. As a lessee, the Company believes the most significant change relates to the recognition of a new right-of-use asset and lease liability on the condensed consolidated balance sheets for its corporate office leases as well as one ground lease agreement. As a lessor, the Company believes substantially all of the Company's leases will continue to be classified as operating leases under the new standard. The Company is continuing to evaluate the impact of this guidance, including the recently approved amendment to create a lessor practical expedient pertaining to the separation of lease and non-lease components, on the condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). This guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance also applies to how the Company determines its allowance for doubtful accounts on tenant receivables. The transition guidance provides the option of early adopting the new standard using a modified retrospective transition method in any interim period, or alternatively requires adoption for fiscal years beginning after December 15, 2019. This adoption method will require the Company to recognize the cumulative effect of initially applying the ASU as an adjustment to the opening balance of distributions in excess of accumulated net income as of the beginning of the fiscal year that it adopts the update. The Company is continuing to evaluate the impact of this guidance on the condensed consolidated financial statements and related disclosures but does not expect its adoption will have a significant impact on the condensed consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. This guidance is intended to better align financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides the option of early adopting the new standard using a modified retrospective transition method in any interim period, or alternatively requires adoption for fiscal years beginning after December 15, 2018. This adoption method will require the Company to recognize the cumulative effect of initially applying the ASU as an adjustment to accumulated comprehensive income with a corresponding adjustment to the opening balance of distributions in excess of accumulated net income as of the beginning of the fiscal year that it adopts the update. The Company is continuing to evaluate this guidance on the condensed consolidated financial statements but does not expect its adoption will have a significant impact on the condensed consolidated financial statements.

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