XML 22 R11.htm IDEA: XBRL DOCUMENT v3.22.2
Revenues
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenues REVENUES
The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (in thousands):
Three Months Ended June 30, 2022Six Months Ended June 30, 2022
Valencia San Francisco
Great Park(1)
Commercial(1)
TotalValencia San Francisco
Great Park(1)
Commercial(1)
Total
Land sales and land sales—related party
$1,725 $— $— $— $1,725 $2,283 $— $— $— $2,283 
Management services—related party
— — 2,602 101 2,703 — — 6,046 204 6,250 
Operating properties560 — — — 560 916 — — — 916 
2,285 — 2,602 101 4,988 3,199 — 6,046 204 9,449 
Operating properties leasing revenues283 122 — — 405 528 302 — — 830 
$2,568 $122 $2,602 $101 $5,393 $3,727 $302 $6,046 $204 $10,279 

Three Months Ended June 30, 2021Six Months Ended June 30, 2021
Valencia San Francisco
Great Park(1)
Commercial(1)
TotalValencia San Francisco
Great Park(1)
Commercial(1)
Total
Land sales and land sales—related party
$102 $— $— $— $102 $143 $— $— $— $143 
Management services—related party
— — 7,544 103 7,647 — — 19,884 202 20,086 
Operating properties187 — — — 187 464 — — — 464 
289 — 7,544 103 7,936 607 — 19,884 202 20,693 
Operating properties leasing revenues227 141 — — 368 501 290 — — 791 
$516 $141 $7,544 $103 $8,304 $1,108 $290 $19,884 $202 $21,484 
(1) The tables above do not include revenues of the Great Park Venture and the Gateway Commercial Venture, which are included in the Company’s reporting segment totals (see Notes 4 and 13).
The Company, through the Management Company, has an amended and restated development management agreement (“A&R DMA”) with the Great Park Venture. The A&R DMA had an original term commencing on December 29, 2010 and ending on December 31, 2021 (the “Initial Term”). In addition to an annual fixed base fee and variable cost reimbursements, the Initial Term of the A&R DMA included incentive compensation that becomes payable in connection with and as a percentage of distributions made to the members of the Great Park Venture, including distributions made in periods after the Initial Term. Consideration in the form of contingent incentive compensation from the A&R DMA was recognized as revenue and a contract asset as services were provided over the contract term. By mutual agreement, the Initial Term has been extended through December 31, 2022 (the "2022 Extension"). The 2022 Extension resulted in the elimination of variable cost reimbursements and an increase in the annual fixed base fee to $12.0 million for 2022. The 2022 Extension did not change the incentive compensation provisions of the A&R DMA applicable to the Initial Term, subject to the clawback amount holdback described below (see Note 8).
The opening and closing balances of the Company’s contract assets for the six months ended June 30, 2022 were $87.6 million ($79.1 million related party, see Note 8) and $87.8 million ($80.2 million related party, see Note 8), respectively. The opening and closing balances of the Company’s contract assets for the six months ended June 30, 2021 were $85.1 million ($78.1 million related party) and $72.7 million ($67.0 million related party), respectively. The increase of $0.2 million for the six months ended June 30, 2022 between the opening and closing balances of the Company’s contract assets primarily resulted from a timing difference between when payments are made and the Company’s recognition of revenue earned from marketing fees from prior period land sales and agricultural crop sales. The decrease of $12.4 million for the six months ended June 30, 2021 between the opening and closing balances of the Company’s contract assets primarily resulted from the receipt of $21.3 million in incentive compensation payments from the Great Park Venture offset by additional incentive compensation earned during the period and recognized as a contract asset.
The opening and closing balances of the Company’s other receivables from contracts with customers and contract liabilities for the six months ended June 30, 2022 and 2021 were insignificant.