XML 33 R18.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Contingencies | 9 Months Ended
--- | ---
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract] |
Contingencies | Contingencies Litigation The Company is currently involved in certain litigation that arises in the ordinary course of business, most of which is expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters using the latest information available. The Company records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, the Company accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, the Company discloses the nature and estimate of the possible loss of the litigation. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business or financial condition of the Company. Environmental Contingencies The Company evaluates potential loss contingencies related to environmental matters using the same criteria described above related to litigation matters. Based on current information, an unfavorable outcome concerning such environmental matters, both individually and in the aggregate, is considered to be reasonably possible. However, the Company believes its maximum potential exposure to loss would not be material to its results of operations or financial condition. The Company has a master insurance policy that provides coverage through 2022 for certain environmental claims up to $10,000 per occurrence and up to $50,000 in the aggregate, subject to deductibles and certain exclusions. At certain locations, individual policies are in place. Guarantees The Operating Partnership may guarantee the debt of a joint venture primarily because it allows the joint venture to obtain funding at a lower cost than could be obtained otherwise. This results in a higher return for the joint venture on its investment, and a higher return on the Operating Partnership’s investment in the joint venture. The Operating Partnership may receive a fee from the joint venture for providing the guaranty. Additionally, when the Operating Partnership issues a guaranty, the terms of the joint venture agreement typically provide that the Operating Partnership may receive indemnification from the joint venture partner or have the ability to increase its ownership interest. The guarantees expire upon repayment of the debt, unless noted otherwise. The following table represents the Operating Partnership's guarantees of unconsolidated affiliates' debt as reflected in the accompanying condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017:
|  | As of September 30, 2018 |  | Obligation Recorded to Reflect Guaranty
Unconsolidated Affiliate |  | Company's Ownership Interest |  | Outstanding Balance |  | Percentage Guaranteed by the Operating Partnership |  | Maximum Guaranteed Amount |  | Debt Maturity Date (1) |  | 9/30/2018 |  | 12/31/2017
West Melbourne I, LLC - Phase I (2) |  | 50% |  | $ | 41,737 |  |  | 50 | % | (3) |  | $ | 20,869 |  |  | Feb-2021 | (3) |  | $ | 209 |  |  | $ | 86 |
West Melbourne I, LLC - Phase II (2) |  | 50% |  | 16,097 |  |  | 50 | % | (3) |  | 8,049 |  |  | Feb-2021 | (3) |  | 80 |  |  | 33 |
Port Orange I, LLC |  | 50% |  | 56,366 |  |  | 50 | % | (3) |  | 28,183 |  |  | Feb-2021 | (3) |  | 282 |  |  | 116 |
Ambassador Infrastructure, LLC |  | 65% |  | 10,605 |  |  | 100 | % |  |  | 10,605 |  |  | Aug-2020 |  |  | 106 |  |  | 177 |
Shoppes at Eagle Point, LLC |  | 50% |  | 32,679 |  |  | 100 | % | (4) |  | 36,400 |  |  | Oct-2020 | (5) |  | 364 |  |  | 364 |
EastGate Storage, LLC |  | 50% |  | 4,162 |  |  | 100 | % | (6) |  | 6,500 |  |  | Dec-2022 |  |  | 65 |  |  | 65 |
Self Storage at Mid Rivers, LLC (7) |  | 50% |  | 2,021 |  |  | 100 | % |  |  | 5,987 |  |  | Apr-2023 |  |  | 60 |  |  | — |
|  |  |  |  |  | Total guaranty liability |  |  | $ | 1,166 |  |  | $ | 841 |
(1) | Excludes any extension options.
(2) | The loan is secured by Hammock Landing - Phase I and Hammock Landing - Phase II, respectively.
(3) | The loan was amended in May 2018 to extend the maturity date and increase the guaranty from 20%. The loan has two one-year extension options for an outside maturity date of February 2023. See Note 6 for more information.
(4) | The guaranty will be reduced to 35% once construction is complete.
(5) | The loan has one two-year extension option, at the joint venture's election, for an outside maturity date of October 2022.
(6) | Once construction is complete, the guaranty will be reduced to 50%. The guaranty will be further reduced to 25% once certain debt and operational metrics are met.
(7) | The Company received a 1% fee for the guaranty when the loan was issued in April 2018. The guaranty will be reduced to 50% once construction is complete. The guaranty will be further reduced to 25% once certain debt and operational metrics are met. See Note 6 for additional information.
The Company has guaranteed the lease performance of York Town Center, LP ("YTC"), an unconsolidated affiliate in which the Company owns a 50% interest, under the terms of an agreement with a third party that owns property as part of York Town Center. Under the terms of that agreement, YTC is obligated to cause performance of the third party’s obligations as landlord under its lease with its sole tenant, including, but not limited to, provisions such as co-tenancy and exclusivity requirements. Should YTC fail to cause performance, then the tenant under the third party landlord’s lease may pursue certain remedies ranging from rights to terminate its lease to receiving reductions in rent. The Company has guaranteed YTC’s performance under this agreement up to a maximum of $22,000, which decreases by $800 annually until the guaranteed amount is reduced to $10,000. The guaranty expires on December 31, 2020. The maximum guaranteed obligation was $13,200 as of September 30, 2018. The Company entered into an agreement with its joint venture partner under which the joint venture partner has agreed to reimburse the Company 50% of any amounts it is obligated to fund under the guaranty. The Company did not include an obligation for this guaranty because it determined that the fair value of the guaranty was not material as of September 30, 2018 and December 31, 2017. Performance Bonds The Company has issued various bonds that it would have to satisfy in the event of non-performance. The total amount outstanding on these bonds was $17,309 and $16,998 at September 30, 2018 and December 31, 2017, respectively.

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

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration