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Unconsolidated Affiliates, Redeemable Interests, Noncontrolling Interests and Cost Method Investments | 9 Months Ended
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Sep. 30, 2015
Equity Method Investments and Joint Ventures [Abstract] |
Unconsolidated Affiliates, Redeemable Interests, Noncontrolling Interests and Cost Method Investments | Unconsolidated Affiliates, Redeemable Interests, Noncontrolling Interests and Cost Method Investments Unconsolidated Affiliates At September 30, 2015, the Company had investments in the following 19 entities, which are accounted for using the equity method of accounting:
Joint Venture | Property Name | Company's Interest
Ambassador Infrastructure, LLC | Ambassador Town Center - Infrastructure Improvements | 65.0%
Ambassador Town Center JV, LLC | Ambassador Town Center | 65.0%
CBL/T-C, LLC | CoolSprings Galleria, Oak Park Mall and West County Center | 50.0%
CBL-TRS Joint Venture, LLC | Friendly Center, The Shops at Friendly Center and a portfolio of four office buildings | 50.0%
CBL-TRS Joint Venture II, LLC | Renaissance Center | 50.0%
El Paso Outlet Outparcels, LLC | The Outlet Shoppes at El Paso (vacant land) | 50.0%
Fremaux Town Center JV, LLC | Fremaux Town Center Phases I and II | 65.0%
Governor’s Square IB | Governor’s Plaza | 50.0%
Governor’s Square Company | Governor’s Square | 47.5%
High Pointe Commons, LP | High Pointe Commons | 50.0%
High Pointe Commons II-HAP, LP | High Pointe Commons - Christmas Tree Shop | 50.0%
JG Gulf Coast Town Center LLC | Gulf Coast Town Center Phases I, II and III | 50.0%
Kentucky Oaks Mall Company | Kentucky Oaks Mall | 50.0%
Mall of South Carolina L.P. | Coastal Grand | 50.0%
Mall of South Carolina Outparcel L.P. | Coastal Grand (Coastal Grand Crossing and vacant land) | 50.0%
Port Orange I, LLC | The Pavilion at Port Orange Phase I and one office building | 50.0%
Triangle Town Member LLC | Triangle Town Center, Triangle Town Commons and Triangle Town Place | 50.0%
West Melbourne I, LLC | Hammock Landing Phases I and II | 50.0%
York Town Center, LP | York Town Center | 50.0%
Although the Company had majority ownership of certain joint ventures during 2015 and 2014, it evaluated the investments and concluded that the other partners or owners in these joint ventures had substantive participating rights, such as approvals of:
• | the pro forma for the development and construction of the project and any material deviations or modifications thereto;
• | the site plan and any material deviations or modifications thereto;
• | the conceptual design of the project and the initial plans and specifications for the project and any material deviations or modifications thereto;
• | any acquisition/construction loans or any permanent financings/refinancings;
• | the annual operating budgets and any material deviations or modifications thereto;
• | the initial leasing plan and leasing parameters and any material deviations or modifications thereto; and
• | any material acquisitions or dispositions with respect to the project.
As a result of the joint control over these joint ventures, the Company accounts for these investments using the equity method of accounting. Condensed combined financial statement information of these unconsolidated affiliates is as follows:
| As of
ASSETS | September 30, 2015 |  | December 31, 2014
Investment in real estate assets | $ | 2,300,650 |  |  | $ | 2,266,252 |
Accumulated depreciation | (660,584 | ) |  | (619,558 | )
| 1,640,066 |  |  | 1,646,694 |
Developments in progress | 86,038 |  |  | 75,877 |
Net investment in real estate assets | 1,726,104 |  |  | 1,722,571 |
Other assets | 170,984 |  |  | 170,554 |
Total assets | $ | 1,897,088 |  |  | $ | 1,893,125 |
LIABILITIES |  |  |
Mortgage and other indebtedness | $ | 1,533,361 |  |  | $ | 1,512,826 |
Other liabilities | 49,225 |  |  | 42,517 |
Total liabilities | 1,582,586 |  |  | 1,555,343 |
OWNERS' EQUITY |  |  |
The Company | 182,249 |  |  | 198,261 |
Other investors | 132,253 |  |  | 139,521 |
Total owners' equity | 314,502 |  |  | 337,782 |
Total liabilities and owners' equity | $ | 1,897,088 |  |  | $ | 1,893,125 |
| Total for the Three Months Ended September 30, |  | Company's Share for the Three Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Total revenues | $ | 62,098 |  |  | $ | 61,781 |  |  | $ | 32,660 |  |  | $ | 32,371 |
Depreciation and amortization | (20,313 | ) |  | (19,776 | ) |  | (10,734 | ) |  | (10,537 | )
Interest income | 331 |  |  | 336 |  |  | 255 |  |  | 257 |
Interest expense | (18,616 | ) |  | (18,861 | ) |  | (9,601 | ) |  | (9,719 | )
Operating expenses | (18,918 | ) |  | (17,788 | ) |  | (9,638 | ) |  | (9,134 | )
Gain on sales of real estate assets | 710 |  |  | 1,119 |  |  | 566 |  |  | 698 |
Net income | $ | 5,292 |  |  | $ | 6,811 |  |  | $ | 3,508 |  |  | $ | 3,936 |
| Total for the Nine Months Ended September 30, |  | Company's Share for the Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Total revenues | $ | 187,681 |  |  | $ | 185,002 |  |  | $ | 98,453 |  |  | $ | 96,389 |
Depreciation and amortization | (59,435 | ) |  | (57,793 | ) |  | (31,354 | ) |  | (30,654 | )
Interest income | 998 |  |  | 1,015 |  |  | 767 |  |  | 775 |
Interest expense | (55,999 | ) |  | (56,165 | ) |  | (28,873 | ) |  | (28,872 | )
Operating expenses | (55,692 | ) |  | (53,457 | ) |  | (28,511 | ) |  | (27,298 | )
Gain on sales of real estate assets | 2,144 |  |  | 1,119 |  |  | 1,730 |  |  | 698 |
Net income | $ | 19,697 |  |  | $ | 19,721 |  |  | $ | 12,212 |  |  | $ | 11,038 |
All of the debt on the properties owned by the unconsolidated affiliates is non-recourse, except for Ambassador, Ambassador Infrastructure, Fremaux Phases I and II, West Melbourne and Port Orange. See Note 12 for a description of guarantees the Company has issued related to certain unconsolidated affiliates. Financings In July 2015, the joint venture loan, secured by Gulf Coast Town Center Phase III, was amended and extended to July 2017. The loan bears interest at a variable rate of LIBOR plus 200 basis points. As part of the refinancing agreement, the loan is no longer guaranteed by the Operating Partnership. Subsequent to September 30, 2015, CBL/T-C, LLC closed on an operating property loan. The proceeds from the new loan were primarily used to retire an existing loan. See Note 16 for more information. Other In September 2015, the lender of the non-recourse mortgage loan secured by Phases I and II of Gulf Coast Town Center in Ft. Myers, FL sent a formal notice of default and initiated foreclosure proceedings. Gulf Coast Town Center generates insufficient cash flow to cover the debt service on the mortgage, which had a balance of $190,800 (of which the Company's 50.0% share was $95,400) at September 30, 2015 and a contractual maturity date of July 2017. In the third quarter of 2015, the lender on the loan began receiving the net operating cash flows of the property each month in lieu of scheduled monthly mortgage payments. Redeemable Interests Redeemable common units of $21,991 and $31,104 at September 30, 2015 and December 31, 2014, respectively, include a partnership interest in the Operating Partnership for which the partnership agreement includes redemption provisions that may require the Operating Partnership to redeem the partnership interest for real property. Redeemable noncontrolling interests of $6,324 and $6,455 at September 30, 2015 and December 31, 2014, respectively, include the aggregate noncontrolling ownership interest in consolidated subsidiaries that is held by third parties and for which the related partnership agreements contain redemption provisions at the holder's election that allow for redemption through cash and/or properties. Noncontrolling Interests of the Operating Partnership Noncontrolling interests include the aggregate noncontrolling ownership interest in the Operating Partnership's consolidated subsidiaries that is held by third parties and for which the related partnership agreements either do not include redemption provisions or are subject to redemption provisions that do not require classification outside of permanent equity. Total noncontrolling interest was $6,695 and $8,908, as of September 30, 2015 and December 31, 2014, respectively. Noncontrolling Interests of the Company The noncontrolling interests of the Company include the third party interests discussed above as well as the aggregate noncontrolling partnership interest in the Operating Partnership that is not owned by the Company and for which each of the noncontrolling limited partners has the right to exchange all or a portion of its partnership interests for shares of the Company’s common stock or, at the Company’s election, their cash equivalent. As of September 30, 2015, the Company's total noncontrolling interests of $128,927 consisted of noncontrolling interests in the Operating Partnership and in other consolidated subsidiaries of $122,232 and $6,695, respectively. The Company's total noncontrolling interests at December 31, 2014 of $143,376 consisted of noncontrolling interests in the Operating Partnership and in other consolidated subsidiaries of $134,468 and $8,908, respectively. Cost Method Investment The Company owns a 6.2% noncontrolling interest in subsidiaries of Jinsheng, an established mall operating and real estate development company located in Nanjing, China. The Company accounts for its noncontrolling interest in Jinsheng using the cost method because the Company does not exercise significant influence over Jinsheng and there is no readily determinable market value of Jinsheng’s shares since they are not publicly traded. The carrying amount of this investment was $5,325 at September 30, 2015 and December 31, 2014. The noncontrolling interest is reflected as investment in unconsolidated affiliates in the accompanying condensed consolidated balance sheets. Variable Interest Entities Triangle Town Member LLC The Company holds a 50% ownership interest in this joint venture. The Company determined that its investment in this joint venture represents an interest in a VIE. The entity is under joint control, and therefore the Company accounts for it as an unconsolidated affiliate using the equity method of accounting as of September 30, 2015 and December 31, 2014, respectively. JG Gulf Coast Town Center LLC The Company holds a 50% ownership interest in this joint venture. The Company determined that its investment in this joint venture represents an interest in a VIE. The entity is under joint control, and therefore the Company accounts for it as an unconsolidated affiliate using the equity method of accounting as of September 30, 2015 and December 31, 2014, respectively. Gettysburg Outlet Center Holding LLC The Company holds a 50% ownership interest in this joint venture. The Company determined that its investment in this joint venture represents an interest in a VIE and that the Company is the primary beneficiary since it has the power to direct activities of the joint venture that most significantly impact the joint venture's economic performance as well as the obligation to absorb losses or right to receive benefits from the VIE that could be significant. As a result, the joint venture is presented in the accompanying condensed consolidated financial statements as of September 30, 2015 and December 31, 2014 on a consolidated basis, with the interests of the third party reflected as a noncontrolling interest. El Paso Outlet Center Holding, LLC The Company holds a 75% ownership interest in the joint venture. The Company determined that its investment in this joint venture represents an interest in a VIE and that the Company is the primary beneficiary since it has the power to direct the activities of the joint venture that most significantly impact the joint venture's economic performance as well as the obligation to absorb losses or right to receive benefits from the VIE that could be significant. As a result, the joint venture is presented in the accompanying condensed consolidated financial statements as of September 30, 2015 and December 31, 2014 on a consolidated basis, with the interests of the third party reflected as a noncontrolling interest.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
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