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Segment Reporting | 6 Months Ended
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Jun. 30, 2014
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We have identified two reportable segments: (1) Real Estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of our real estate assets. Our observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and different marketing strategies. We account for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. We include our construction operation in "Other" and it includes all activities related to providing construction services to tenants and to other entities within and outside our company. The following tables provides components of segment profit for each segment for the three and six months ended June 30, 2014 and 2013, as reviewed by management (amounts in thousands):
| Three Months Ended June 30, 2014
| Real Estate |  | Observatory |  | Other |  | Totals
Revenues from external customers | $ | 110,838 |  |  | $ | 30,389 |  |  | $ | 12,966 |  |  | $ | 154,193 |
Intersegment revenues | 16,298 |  | (1) | — |  |  | 901 |  |  | 17,199 |
Total revenues | 127,136 |  |  | 30,389 |  |  | 13,867 |  |  | 171,392 |
All operating expenses | (63,380 | ) |  | (25,799 | ) |  | (13,591 | ) |  | (102,770 | )
Interest expense | (14,629 | ) |  | — |  |  | — |  |  | (14,629 | )
Depreciation and amortization expense | (28,556 | ) |  | (77 | ) |  | (4 | ) |  | (28,637 | )
Segment profit (loss) | $ | 20,571 |  |  | $ | 4,513 |  |  | $ | 272 |  |  | $ | 25,356 |
Segment assets | $ | 2,221,530 |  |  | $ | 243,189 |  |  | $ | 11,906 |  |  | $ | 2,476,625 |
Expenditures for segment assets | $ | 37,735 |  |  | $ | — |  |  | $ | — |  |  | $ | 37,735 |
___________
(1) | The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building.
| Three Months Ended June 30, 2013
| Real Estate |  | Other |  | Totals
Revenues from external customers | $ | 53,303 |  |  | $ | 6,218 |  |  | $ | 59,521 |
Intersegment revenues | 19 |  |  | 2,034 |  |  | 2,053 |
Total revenues | 53,322 |  |  | 8,252 |  |  | 61,574 |
All operating expenses, excluding noncash items | (20,141 | ) |  | (8,269 | ) |  | (28,410 | )
Interest expense | (14,715 | ) |  | — |  |  | (14,715 | )
Depreciation and amortization expense | (13,118 | ) |  | 7 |  |  | (13,111 | )
Equity in net income of non-controlled entities | 6,079 |  |  | — |  |  | 6,079 |
Segment profit | $ | 11,427 |  |  | $ | (10 | ) |  | $ | 11,417 |
Segment assets | $ | 999,902 |  |  | $ | 11,356 |  |  | $ | 1,011,258 |
Investment in non-controlled entities | $ | 82,515 |  |  | $ | — |  |  | $ | 82,515 |
Expenditures for segment assets | $ | 19,968 |  |  | $ | — |  |  | $ | 19,968 |
| Six Months Ended June 30, 2014
| Real Estate |  | Observatory |  | Other |  | Totals
Revenues from external customers | $ | 218,865 |  |  | $ | 47,690 |  |  | $ | 27,944 |  |  | $ | 294,499 |
Intersegment revenues | 31,566 |  | (1) | — |  |  | 1,863 |  |  | 33,429 |
Total revenues | 250,431 |  |  | 47,690 |  |  | 29,807 |  |  | 327,928 |
All operating expenses | (128,942 | ) |  | (45,845 | ) |  | (28,706 | ) |  | (203,493 | )
Interest expense | (28,966 | ) |  | — |  |  | — |  |  | (28,966 | )
Depreciation and amortization expense | (58,607 | ) |  | (138 | ) |  | (7 | ) |  | (58,752 | )
Segment profit (loss) | $ | 33,916 |  |  | $ | 1,707 |  |  | $ | 1,094 |  |  | $ | 36,717 |
Segment assets | $ | 2,221,530 |  |  | $ | 243,189 |  |  | $ | 11,906 |  |  | $ | 2,476,625 |
Expenditures for segment assets | $ | 54,978 |  |  | $ | — |  |  | $ | — |  |  | $ | 54,978 |
___________
(1) | The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building.
| Six Months Ended June 30, 2013
| Real Estate |  | Other |  | Totals
Revenues from external customers | $ | 109,478 |  |  | $ | 12,400 |  |  | $ | 121,878 |
Intersegment revenues | 37 |  |  | 4,807 |  |  | 4,844 |
Total revenues | 109,515 |  |  | 17,207 |  |  | 126,722 |
All operating expenses, excluding noncash items | (41,745 | ) |  | (17,028 | ) |  | (58,773 | )
Interest expense | (28,911 | ) |  | — |  |  | (28,911 | )
Depreciation and amortization expense | (25,267 | ) |  | — |  |  | (25,267 | )
Equity in net income of non-controlled entities | 7,898 |  |  | — |  |  | 7,898 |
Segment profit | $ | 21,490 |  |  | $ | 179 |  |  | $ | 21,669 |
Segment assets | $ | 999,902 |  |  | $ | 11,356 |  |  | $ | 1,011,258 |
Investment in non-controlled entities | $ | 82,515 |  |  | $ | — |  |  | $ | 82,515 |
Expenditures for segment assets | $ | 33,011 |  |  | $ | — |  |  | $ | 33,011 |
The following table provides a reconciliation of segment data to the consolidated financial statements:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2014 |  | 2013 |  | 2014 |  | 2013
| Company |  | Predecessor |  | Company |  | Predecessor
Revenue reconciliation |  |  |  |  |  |  |
Total revenues for reportable segments | $ | 171,392 |  |  | $ | 61,574 |  |  | 327,928 |  |  | $ | 126,722 |
Other revenues | 975 |  |  | 48 |  |  | 975 |  |  | 111 |
Elimination for intersegment revenues | (17,199 | ) |  | (2,053 | ) |  | (33,429 | ) |  | (4,844 | )
Total consolidated revenues | $ | 155,168 |  |  | $ | 59,569 |  |  | $ | 295,474 |  |  | $ | 121,989 |
Profit or loss |  |  |  |  |  |  |
Total profit or loss for reportable segments | $ | 25,356 |  |  | $ | 11,417 |  |  | 36,717 |  |  | $ | 21,669 |
Other profit or loss items | 975 |  |  | (6,849 | ) |  | 975 |  |  | (13,174 | )
Formation transaction expenses | — |  |  | (1,305 | ) |  | — |  |  | (3,000 | )
Private perpetual preferred exchange offering costs | (950 | ) |  | — |  |  | (950 | ) |  | — |
Elimination for capitalized intersegment profit or loss | (100 | ) |  | (240 | ) |  | (230 | ) |  | (605 | )
Unallocated amounts: |  |  |  |  |  |  |
Investment income | — |  |  | 48 |  |  | — |  |  | 111 |
Net income | $ | 25,281 |  |  | $ | 3,071 |  |  | $ | 36,512 |  |  | $ | 5,001 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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