XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.20.2

Segment Reporting | 9 Months Ended
--- | ---
Sep. 30, 2020
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 traditional 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 nine months ended September 30, 2020 and 2019 (amounts in thousands):
|  | Three Months Ended September 30, 2020
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 139,909 |  |  | $ | — |  |  | $ | — |  |  | $ | 139,909 |
Intercompany rental revenue |  | (2,233 | ) |  | — |  |  | 2,233 |  |  | — |
Observatory revenue |  | — |  |  | 4,419 |  |  | — |  |  | 4,419 |
Lease termination fees |  | 331 |  |  | — |  |  | — |  |  | 331 |
Third-party management and other fees |  | 283 |  |  | — |  |  | — |  |  | 283 |
Other revenue and fees |  | 1,633 |  |  | — |  |  | — |  |  | 1,633 |
Total revenues |  | 139,923 |  |  | 4,419 |  |  | 2,233 |  |  | 146,575 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 33,836 |  |  | — |  |  | — |  |  | 33,836 |
Intercompany rent expense |  | — |  |  | (2,233 | ) |  | 2,233 |  |  | — |
Ground rent expense |  | 2,331 |  |  | — |  |  | — |  |  | 2,331 |
General and administrative expenses |  | 14,517 |  |  | — |  |  | — |  |  | 14,517 |
Observatory expenses |  | — |  |  | 5,931 |  |  | — |  |  | 5,931 |
Real estate taxes |  | 31,196 |  |  | — |  |  | — |  |  | 31,196 |
Impairment charge |  | 2,103 |  |  | — |  |  | — |  |  | 2,103 |
Depreciation and amortization |  | 44,679 |  |  | 54 |  |  | — |  |  | 44,733 |
Total operating expenses |  | 128,662 |  |  | 3,752 |  |  | 2,233 |  |  | 134,647 |
Total operating income (loss) |  | 11,261 |  |  | 667 |  |  | — |  |  | 11,928 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 360 |  |  | 6 |  |  | — |  |  | 366 |
Interest expense |  | (23,360 | ) |  | — |  |  | — |  |  | (23,360 | )
Loss on early extinguishment of debt |  | — |  |  | — |  |  | — |  |  | — |
IPO litigation expense |  | (1,165 | ) |  | — |  |  | — |  |  | (1,165 | )
Income (loss) before income taxes |  | (12,904 | ) |  | 673 |  |  | — |  |  | (12,231 | )
Income tax (expense) benefit |  | (196 | ) |  | 158 |  |  | — |  |  | (38 | )
Net income (loss) |  | $ | (13,100 | ) |  | $ | 831 |  |  | $ | — |  |  | $ | (12,269 | )
Segment assets |  | $ | 3,771,476 |  |  | $ | 239,238 |  |  | $ | — |  |  | $ | 4,010,714 |
Expenditures for segment assets |  | $ | 30,831 |  |  | $ | 516 |  |  | $ | — |  |  | $ | 31,347 |
|  | Three Months Ended September 30, 2019
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 150,225 |  |  | $ | — |  |  | $ | — |  |  | $ | 150,225 |
Intercompany rental revenue |  | 23,242 |  |  | — |  |  | (23,242 | ) |  | — |
Observatory revenue |  | — |  |  | 37,575 |  |  | — |  |  | 37,575 |
Lease termination fees |  | 2,361 |  |  | — |  |  | — |  |  | 2,361 |
Third-party management and other fees |  | 304 |  |  | — |  |  | — |  |  | 304 |
Other revenue and fees |  | 2,408 |  |  | — |  |  | — |  |  | 2,408 |
Total revenues |  | 178,540 |  |  | 37,575 |  |  | (23,242 | ) |  | 192,873 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 47,894 |  |  | — |  |  | — |  |  | 47,894 |
Intercompany rent expense |  | — |  |  | 23,242 |  |  | (23,242 | ) |  | — |
Ground rent expense |  | 2,331 |  |  | — |  |  | — |  |  | 2,331 |
General and administrative expenses |  | 14,421 |  |  | — |  |  | — |  |  | 14,421 |
Observatory expenses |  | — |  |  | 9,089 |  |  | — |  |  | 9,089 |
Real estate taxes |  | 29,599 |  |  | — |  |  | — |  |  | 29,599 |
Depreciation and amortization |  | 44,253 |  |  | 7 |  |  | — |  |  | 44,260 |
Total operating expenses |  | 138,498 |  |  | 32,338 |  |  | (23,242 | ) |  | 147,594 |
Total operating income |  | 40,042 |  |  | 5,237 |  |  | — |  |  | 45,279 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 2,269 |  |  | — |  |  | — |  |  | 2,269 |
Interest expense |  | (19,426 | ) |  | — |  |  | — |  |  | (19,426 | )
Income before income taxes |  | 22,885 |  |  | 5,237 |  |  | — |  |  | 28,122 |
Income tax expense |  | (267 | ) |  | (1,071 | ) |  | — |  |  | (1,338 | )
Net income |  | $ | 22,618 |  |  | $ | 4,166 |  |  | $ | — |  |  | $ | 26,784 |
Segment assets |  | $ | 3,659,592 |  |  | $ | 265,725 |  |  | $ | — |  |  | $ | 3,925,317 |
Expenditures for segment assets |  | $ | 42,901 |  |  | $ | 18,375 |  |  | $ | — |  |  | $ | 61,276 |
|  | Nine Months Ended September 30, 2020
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 426,021 |  |  | $ | — |  |  | $ | — |  |  | $ | 426,021 |
Intercompany rental revenue |  | 13,356 |  |  | — |  |  | (13,356 | ) |  | — |
Observatory revenue |  | — |  |  | 24,049 |  |  | — |  |  | 24,049 |
Lease termination fees |  | 1,575 |  |  | — |  |  | — |  |  | 1,575 |
Third-party management and other fees |  | 930 |  |  | — |  |  | — |  |  | 930 |
Other revenue and fees |  | 5,254 |  |  | — |  |  | — |  |  | 5,254 |
Total revenues |  | 447,136 |  |  | 24,049 |  |  | (13,356 | ) |  | 457,829 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 105,054 |  |  | — |  |  | — |  |  | 105,054 |
Intercompany rent expense |  | — |  |  | 13,356 |  |  | (13,356 | ) |  | — |
Ground rent expense |  | 6,994 |  |  | — |  |  | — |  |  | 6,994 |
General and administrative expenses |  | 48,617 |  |  | — |  |  | — |  |  | 48,617 |
Observatory expenses |  | — |  |  | 18,087 |  |  | — |  |  | 18,087 |
Real estate taxes |  | 90,029 |  |  | — |  |  | — |  |  | 90,029 |
Impairment charges |  | 6,204 |  |  | — |  |  | — |  |  | 6,204 |
Depreciation and amortization |  | 143,522 |  |  | 87 |  |  | — |  |  | 143,609 |
Total operating expenses |  | 400,420 |  |  | 31,530 |  |  | (13,356 | ) |  | 418,594 |
Total operating income (loss) |  | 46,716 |  |  | (7,481 | ) |  | — |  |  | 39,235 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 2,438 |  |  | 91 |  |  | — |  |  | 2,529 |
Interest expense |  | (66,906 | ) |  | — |  |  | — |  |  | (66,906 | )
Loss on early extinguishment of debt |  | (86 | ) |  | — |  |  | — |  |  | (86 | )
IPO litigation expense |  | (1,165 | ) |  | — |  |  | — |  |  | (1,165 | )
Loss before income taxes |  | (19,003 | ) |  | (7,390 | ) |  | — |  |  | (26,393 | )
Income tax (expense) benefit |  | (692 | ) |  | 3,486 |  |  | — |  |  | 2,794 |
Net loss |  | $ | (19,695 | ) |  | $ | (3,904 | ) |  | $ | — |  |  | $ | (23,599 | )
Expenditures for segment assets |  | $ | 77,503 |  |  | $ | 2,748 |  |  | $ | — |  |  | $ | 80,251 |
|  | Nine Months Ended September 30, 2019
|  | Real Estate |  | Observatory |  | Intersegment Elimination |  | Total
Revenues: |  |  |  |  |  |  |  |
Rental revenue |  | $ | 434,713 |  |  | $ | — |  |  | $ | — |  |  | $ | 434,713 |
Intercompany rental revenue |  | 58,754 |  |  | — |  |  | (58,754 | ) |  | — |
Observatory revenue |  | — |  |  | 91,039 |  |  | — |  |  | 91,039 |
Lease termination fees |  | 3,112 |  |  | — |  |  | — |  |  | 3,112 |
Third-party management and other fees |  | 955 |  |  | — |  |  | — |  |  | 955 |
Other revenue and fees |  | 6,591 |  |  | — |  |  | — |  |  | 6,591 |
Total revenues |  | 504,125 |  |  | 91,039 |  |  | (58,754 | ) |  | 536,410 |
Operating expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 131,076 |  |  | — |  |  | — |  |  | 131,076 |
Intercompany rent expense |  | — |  |  | 58,754 |  |  | (58,754 | ) |  | — |
Ground rent expense |  | 6,994 |  |  | — |  |  | — |  |  | 6,994 |
General and administrative expenses |  | 44,445 |  |  | — |  |  | — |  |  | 44,445 |
Observatory expenses |  | — |  |  | 25,024 |  |  | — |  |  | 25,024 |
Real estate taxes |  | 86,098 |  |  | — |  |  | — |  |  | 86,098 |
Depreciation and amortization |  | 135,157 |  |  | 22 |  |  | — |  |  | 135,179 |
Total operating expenses |  | 403,770 |  |  | 83,800 |  |  | (58,754 | ) |  | 428,816 |
Total operating income |  | 100,355 |  |  | 7,239 |  |  | — |  |  | 107,594 |
Other income (expense): |  |  |  |  |  |  |  |
Interest income |  | 9,907 |  |  | — |  |  | — |  |  | 9,907 |
Interest expense |  | (60,712 | ) |  | — |  |  | — |  |  | (60,712 | )
Income before income taxes |  | 49,550 |  |  | 7,239 |  |  | — |  |  | 56,789 |
Income tax expense |  | (762 | ) |  | (457 | ) |  | — |  |  | (1,219 | )
Net income |  | $ | 48,788 |  |  | $ | 6,782 |  |  | $ | — |  |  | $ | 55,570 |
Expenditures for segment assets |  | $ | 134,865 |  |  | $ | 46,703 |  |  | $ | — |  |  | $ | 181,568 |
During the second quarter 2020, we wrote-off $4.1 million of prior expenditures on a potential energy efficiency project in our real estate segment that is not economically feasible in today's regulatory environment. During the third quarter 2020, we also wrote off $2.1 million of prior expenditures on a build-to-suit development project in our real estate segment that was halted due to reconsideration by the user driven by the COVID-19 pandemic. For the nine months ended September 30, 2020, the total $6.2 million write-off is shown as Impairment charge in the condensed consolidated statements of operations.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration