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Segment Reporting | 6 Months Ended
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Jun. 30, 2018
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 includes the operation of 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 marketing strategies. We account for intersegment sales and rent as if the sales or rent were to third parties, that is, at current market prices. The following tables provide components of segment profit for each segment for the three and six months ended June 30, 2018 and 2017 (amounts in thousands):
|  | Three Months Ended June 30, 2018
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 124,038 |  |  | $ | — |  |  | $ | — |  |  | $ | 124,038 |
Intercompany rental revenue |  | 21,990 |  |  | — |  |  | (21,990 | ) |  | — |
Tenant expense reimbursement |  | 16,205 |  |  | — |  |  | — |  |  | 16,205 |
Observatory revenue |  | — |  |  | 35,201 |  |  | — |  |  | 35,201 |
Lease termination fees |  | 357 |  |  | — |  |  | — |  |  | 357 |
Third-party management and other fees |  | 376 |  |  | — |  |  | — |  |  | 376 |
Other revenue and fees |  | 2,352 |  |  | — |  |  | — |  |  | 2,352 |
Total revenues |  | 165,318 |  |  | 35,201 |  |  | (21,990 | ) |  | 178,529 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 39,418 |  |  | — |  |  | — |  |  | 39,418 |
Intercompany rent expense |  | — |  |  | 21,990 |  |  | (21,990 | ) |  | — |
Ground rent expense |  | 2,332 |  |  | — |  |  | — |  |  | 2,332 |
General and administrative expenses |  | 13,225 |  |  | — |  |  | — |  |  | 13,225 |
Observatory expenses |  | — |  |  | 7,678 |  |  | — |  |  | 7,678 |
Real estate taxes |  | 26,743 |  |  | — |  |  | — |  |  | 26,743 |
Depreciation and amortization |  | 39,452 |  |  | 16 |  |  | — |  |  | 39,468 |
Total operating expenses |  | 121,170 |  |  | 29,684 |  |  | (21,990 | ) |  | 128,864 |
Total operating income |  | 44,148 |  |  | 5,517 |  |  | — |  |  | 49,665 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 2,499 |  |  | — |  |  | — |  |  | 2,499 |
Interest expense |  | (20,525 | ) |  | — |  |  | — |  |  | (20,525 | )
Income before income taxes |  | 26,122 |  |  | 5,517 |  |  | — |  |  | 31,639 |
Income tax (expense) benefit |  | (268 | ) |  | (1,187 | ) |  | — |  |  | (1,455 | )
Net income |  | $ | 25,854 |  |  | $ | 4,330 |  |  | $ | — |  |  | $ | 30,184 |
Segment assets |  | $ | 3,902,676 |  |  | $ | 260,229 |  |  | $ | — |  |  | $ | 4,162,905 |
Expenditures for segment assets |  | $ | 61,017 |  |  | $ | 15,872 |  |  | $ | — |  |  | $ | 76,889 |
|  | Three Months Ended June 30, 2017
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 120,844 |  |  | $ | — |  |  | $ | — |  |  | $ | 120,844 |
Intercompany rental revenue |  | 20,675 |  |  | — |  |  | (20,675 | ) |  | — |
Tenant expense reimbursement |  | 17,569 |  |  | — |  |  | — |  |  | 17,569 |
Observatory revenue |  | — |  |  | 33,966 |  |  | — |  |  | 33,966 |
Lease termination fees |  | 1,251 |  |  | — |  |  | — |  |  | 1,251 |
Third-party management and other fees |  | 392 |  |  | — |  |  | — |  |  | 392 |
Other revenue and fees |  | 2,327 |  |  | — |  |  | — |  |  | 2,327 |
Total revenues |  | 163,058 |  |  | 33,966 |  |  | (20,675 | ) |  | 176,349 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 38,529 |  |  | — |  |  | — |  |  | 38,529 |
Intercompany rent expense |  | — |  |  | 20,675 |  |  | (20,675 | ) |  | — |
Ground rent expense |  | 2,332 |  |  | — |  |  | — |  |  | 2,332 |
General and administrative expenses |  | 12,579 |  |  | — |  |  | — |  |  | 12,579 |
Observatory expenses |  | — |  |  | 7,176 |  |  | — |  |  | 7,176 |
Real estate taxes |  | 24,542 |  |  | — |  |  | — |  |  | 24,542 |
Depreciation and amortization |  | 40,458 |  |  | 74 |  |  | — |  |  | 40,532 |
Total operating expenses |  | 118,440 |  |  | 27,925 |  |  | (20,675 | ) |  | 125,690 |
Total operating income |  | 44,618 |  |  | 6,041 |  |  | — |  |  | 50,659 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 775 |  |  | — |  |  | — |  |  | 775 |
Interest expense |  | (17,477 | ) |  | — |  |  | — |  |  | (17,477 | )
Loss from derivative financial instruments |  | (42 | ) |  | — |  |  | — |  |  | (42 | )
Income before income taxes |  | 27,874 |  |  | 6,041 |  |  | — |  |  | 33,915 |
Income tax (expense) benefit |  | (413 | ) |  | (2,143 | ) |  | — |  |  | (2,556 | )
Net income |  | $ | 27,461 |  |  | $ | 3,898 |  |  | $ | — |  |  | $ | 31,359 |
Segment assets |  | $ | 3,579,873 |  |  | $ | 251,328 |  |  | $ | — |  |  | $ | 3,831,201 |
Expenditures for segment assets |  | $ | 54,474 |  |  | $ | 6,850 |  |  | $ | — |  |  | $ | 61,324 |
|  | Six Months Ended June 30, 2018
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 246,349 |  |  | $ | — |  |  | $ | — |  |  | $ | 246,349 |
Intercompany rental revenue |  | 35,551 |  |  | — |  |  | (35,551 | ) |  | — |
Tenant expense reimbursement |  | 33,999 |  |  | — |  |  | — |  |  | 33,999 |
Observatory revenue |  | — |  |  | 56,450 |  |  | — |  |  | 56,450 |
Lease termination fees |  | 979 |  |  | — |  |  | — |  |  | 979 |
Third-party management and other fees |  | 839 |  |  | — |  |  | — |  |  | 839 |
Other revenue and fees |  | 7,184 |  |  | — |  |  | — |  |  | 7,184 |
Total revenues |  | 324,901 |  |  | 56,450 |  |  | (35,551 | ) |  | 345,800 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 83,603 |  |  | — |  |  | — |  |  | 83,603 |
Intercompany rent expense |  | — |  |  | 35,551 |  |  | (35,551 | ) |  | — |
Ground rent expense |  | 4,663 |  |  | — |  |  | — |  |  | 4,663 |
General and administrative expenses |  | 25,853 |  |  | — |  |  | — |  |  | 25,853 |
Observatory expenses |  | — |  |  | 15,014 |  |  | — |  |  | 15,014 |
Real estate taxes |  | 53,487 |  |  | — |  |  | — |  |  | 53,487 |
Depreciation and amortization |  | 79,317 |  |  | 34 |  |  | — |  |  | 79,351 |
Total operating expenses |  | 246,923 |  |  | 50,599 |  |  | (35,551 | ) |  | 261,971 |
Total operating income |  | 77,978 |  |  | 5,851 |  |  | — |  |  | 83,829 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 3,724 |  |  | — |  |  | — |  |  | 3,724 |
Interest expense |  | (38,116 | ) |  | — |  |  | — |  |  | (38,116 | )
Income before income taxes |  | 43,586 |  |  | 5,851 |  |  | — |  |  | 49,437 |
Income tax expense |  | (575 | ) |  | (620 | ) |  | — |  |  | (1,195 | )
Net income |  | $ | 43,011 |  |  | $ | 5,231 |  |  | $ | — |  |  | $ | 48,242 |
Expenditures for segment assets |  | $ | 95,816 |  |  | $ | 27,423 |  |  | $ | — |  |  | $ | 123,239 |
|  | Six Months Ended June 30, 2017
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 237,957 |  |  | $ | — |  |  | $ | — |  |  | $ | 237,957 |
Intercompany rental revenue |  | 34,053 |  |  | — |  |  | (34,053 | ) |  | — |
Tenant expense reimbursement |  | 33,543 |  |  | — |  |  | — |  |  | 33,543 |
Observatory revenue |  | — |  |  | 54,906 |  |  | — |  |  | 54,906 |
Lease termination fees |  | 9,189 |  |  | — |  |  | — |  |  | 9,189 |
Third-party management and other fees |  | 743 |  |  | — |  |  | — |  |  | 743 |
Other revenue and fees |  | 4,344 |  |  | — |  |  | — |  |  | 4,344 |
Total revenues |  | 319,829 |  |  | 54,906 |  |  | (34,053 | ) |  | 340,682 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 80,739 |  |  | — |  |  | — |  |  | 80,739 |
Intercompany rent expense |  | — |  |  | 34,053 |  |  | (34,053 | ) |  | — |
Ground rent expense |  | 4,663 |  |  | — |  |  | — |  |  | 4,663 |
General and administrative expenses |  | 23,667 |  |  | — |  |  | — |  |  | 23,667 |
Observatory expenses |  | — |  |  | 14,431 |  |  | — |  |  | 14,431 |
Real estate taxes |  | 49,100 |  |  | — |  |  | — |  |  | 49,100 |
Depreciation and amortization |  | 81,291 |  |  | 87 |  |  | — |  |  | 81,378 |
Total operating expenses |  | 239,460 |  |  | 48,571 |  |  | (34,053 | ) |  | 253,978 |
Total operating income |  | 80,369 |  |  | 6,335 |  |  | — |  |  | 86,704 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 1,396 |  |  | — |  |  | — |  |  | 1,396 |
Interest expense |  | (35,219 | ) |  | — |  |  | — |  |  | (35,219 | )
Loss from derivative financial instruments |  | (289 | ) |  | — |  |  | — |  |  | (289 | )
Income before income taxes |  | 46,257 |  |  | 6,335 |  |  | — |  |  | 52,592 |
Income tax expense |  | (696 | ) |  | (1,392 | ) |  | — |  |  | (2,088 | )
Net income |  | $ | 45,561 |  |  | $ | 4,943 |  |  | $ | — |  |  | $ | 50,504 |
Expenditures for segment assets |  | $ | 102,534 |  |  | $ | 6,850 |  |  | $ | — |  |  | $ | 109,384 |

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- References No definition available. + Details
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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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