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Revenue Recognition | 9 Months Ended
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Sep. 30, 2019
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Operating Leases The majority of revenue recognized from the Company's retail properties consists of minimum lease payments received from tenants under long-term operating leases with varying terms. In addition to minimum lease payments, some leases provide for the reimbursement of the tenant’s pro rata share of certain operating expenses incurred by the landlord as recoveries, including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees and certain capital repairs. Certain other tenants are subject to net leases whereby the tenant is responsible for fixed minimum lease payments to the Company, as well as directly paying all costs and expenses associated with occupancy to third party service providers. Such direct payments to third parties are not recorded as revenue and expense by the Company. In conjunction with the adoption of Topic 842, Leases ("Topic 842") on January 1, 2019, the Company elected the package of practical expedients that permits the Company to not reassess: (1) whether any expired or existing contracts are or contain leases; (2) the lease classification for any expired or existing leases; and (3) any initial direct costs for existing leases as of the effective date. Except as described below, the Company's accounting policies and resulting recognition of lease income remained substantially consistent with previous guidance. As a result of the narrowed definition of initial direct costs under Topic 842, the Company expenses as incurred certain lease origination costs previously capitalized and amortized to expense over the lease term. The Company has elected the practical expedient of not separating lease and non-lease components for all qualifying leases. In effect, this will generally relieve the Company from the requirement to account for certain consideration under the new revenue standard. As a result of the accounting policy election, all income arising from leases is presented on a combined basis as lease income, net on the condensed consolidated statements of operations and comprehensive income. Beginning on January 1, 2019, the provision for estimated credit losses resulting from changes in the collectability of lease payments will be recognized as a direct reduction to lease income on the condensed consolidated statements of operations and comprehensive income and a direct write-off of the operating lease receivable on the condensed consolidated balance sheets. Changes in collectability occur when the Company no longer believes it is probable that substantially all of the lease payments will be collected. If collection is not probable, the lease payments will be accounted for on a cash basis, and revenue will be recorded as received. When reassessed and the collection of substantially all of the lease payments from the tenant becomes probable, the accrual basis of revenue recognition will be reestablished. Consistent with previous guidance, unless there is a change in the minimum lease payment credit risk, changes in the collectability of billed and unbilled recoveries will continue to be recognized as bad debt expense in property operating expenses on the condensed consolidated statements of operations and comprehensive income and an allowance for doubtful accounts established on the condensed consolidated balance sheets. As of September 30, 2019, minimum lease payments to be received under long-term operating leases and short-term specialty leases, excluding additional percentage rent based on tenants' sales volume and tenant reimbursements of certain operating expenses, and assuming no exercise of renewal options or early termination rights, are as follows:
| Minimum Lease Payments
Remaining 2019 | $ | 40,463 |
2020 | 154,921 |
2021 | 142,373 |
2022 | 121,061 |
2023 | 104,764 |
Thereafter | 377,833 |
Total | $ | 941,415 |
As of December 31, 2018, minimum lease payments to be received under long-term operating leases and short-term specialty leases, excluding additional percentage rent based on tenants' sales volume and tenant reimbursements of certain operating expenses, and assuming no exercise of renewal options or early termination rights, are as follows:
| Minimum Lease Payments
2019 | $ | 151,874 |
2020 | 139,290 |
2021 | 124,366 |
2022 | 103,204 |
2023 | 83,744 |
Thereafter | 282,629 |
Total | $ | 885,107 |
Topic 842 Reclassifications The Company has chosen to apply the combined presentation of lease income, net, required by Topic 842 retrospectively to the three and nine months ended September 30, 2018, by combining amounts previously reported as rental income and tenant recovery income, and making certain other reclassifications to the condensed consolidated statements of operations and comprehensive income. The following table reflects the disaggregation of lease income, net:
| Three months ended September 30 |  | Nine months ended September 30
| 2019 |  | 2018 |  | 2019 |  | 2018
Minimum lease payments | $ | 40,664 |  |  | $ | 42,990 |  |  | $ | 119,130 |  |  | $ | 131,173 |
Billed and unbilled tax and insurance recoveries | 8,520 |  |  | 7,613 |  |  | 25,495 |  |  | 25,788 |
Billed and unbilled common area maintenance and other recoveries | 5,627 |  |  | 6,000 |  |  | 16,752 |  |  | 18,602 |
Amortization of above and below-market leases and lease inducements, net | 1,628 |  |  | 1,104 |  |  | 4,546 |  |  | 3,852 |
Short-term, termination fee and other lease income | 505 |  |  | 1,458 |  |  | 2,654 |  |  | 2,489 |
Estimated credit losses | (176 | ) |  | (399 | ) |  | (1,265 | ) |  | (765 | )
Lease income, net | $ | 56,768 |  |  | $ | 58,766 |  |  | $ | 167,312 |  |  | $ | 181,139 |
Contracts with Customers The Company earned other fee income of $1,068 and $2,833 for the three and nine months ended September 30, 2019, respectively, and $965 and $2,965 for the three and nine months ended September 30, 2018, respectively, which is comprised of fees derived from services provided to IAGM Retail Fund I, LLC ("IAGM"), an unconsolidated retail joint venture partnership between the Company as 55% owner and PGGM Private Real Estate Fund ("PGGM"), as disclosed in "Note 6. Investment in Consolidated and Unconsolidated Entities", and therefore deemed to be related party transactions. The property management, asset management, leasing and other services are provided over the term of the contract, which has a remaining original duration through 2023. The Company has receivables of $473 and $778 as of September 30, 2019 and December 31, 2018, respectively, from services provided to IAGM which are included in deferred costs and other assets, net, on the condensed consolidated balance sheets. The following table reflects the disaggregation of other fee income:
| Three months ended September 30 |  | Nine months ended September 30
| 2019 |  | 2018 |  | 2019 |  | 2018
Property management fees | $ | 592 |  |  | $ | 631 |  |  | $ | 1,818 |  |  | $ | 1,996 |
Asset management fees | 278 |  |  | 269 |  |  | 795 |  |  | 831 |
Leasing commissions and other fees | 198 |  |  | 65 |  |  | 220 |  |  | 138 |
Other fee income | $ | 1,068 |  |  | $ | 965 |  |  | $ | 2,833 |  |  | $ | 2,965 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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