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Property And Equipment | 9 Months Ended
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Sep. 30, 2016
Property And Equipment [Abstract] |
Property And Equipment | Note 5 – Property and Equipment Operating Property, net As of September 30, 2016 and December 31, 2015, property associated with our operating activities is summarized as follows: ﻿
﻿ |  |  |  |  |  |
﻿ |  | September 30, |  | December 31,
﻿(Dollars in thousands) |  | 2016 |  | 2015
﻿Land |  | $ | 76,700 |  | $ | 70,063
﻿Building and improvements |  |  | 132,446 |  |  | 126,622
﻿Leasehold improvements |  |  | 47,485 |  |  | 46,874
﻿Fixtures and equipment |  |  | 117,320 |  |  | 112,423
﻿Construction-in-progress |  |  | 20,014 |  |  | 7,825
﻿Total cost |  |  | 393,965 |  |  | 363,807
﻿ Less: accumulated depreciation |  |  | (166,046) |  |  | (153,509)
﻿Operating property, net |  | $ | 227,919 |  | $ | 210,298
﻿ Depreciation expense for operating property was $4.0 million and $11.2 million for the quarter and nine months ended September 30, 2016, respectively, and $3.3 million and $10.1 million for the quarter and nine months ended September 30, 2015, respectively. New Corporate Headquarters in Los Angeles On April 11, 2016, we purchased a 24,000 square foot Class B office building with 72 parking spaces located at 5995 Sepulveda Boulevard in Culver City, California (a Los Angeles suburb) for $11.2 million. We intend to use approximately 50% of the leasable area for our headquarters offices and to lease the remainder to unaffiliated third parties. We anticipate, when the move is completed at the end of 2016 or early 2017 and the excess space is leased, that we will be able to reduce our headquarters occupancy cost by approximately $350,000 per annum. Burwood, Australia On May 12, 2014, we entered into a contract to sell our undeveloped 50.6 acre parcel in Burwood, Victoria, Australia, to Australand Holdings Limited (now known as Frasers Property Australia) for a purchase price of $50.8 million (AU$65.0 million). We received $5.9 million (AU$6.5 million) on May 23, 2014. The remaining purchase price of $44.9 million (AU$58.5 million) is due on December 31, 2017. Refer to Note 18 – Subsequent Events for further information. Our book value in the property is $40.0 million (AU$52.1 million) and $38.0 (AU$52.1 million) as of September 30, 2016 and December 31, 2015, respectively (the difference being attributable solely to currency fluctuations). While the transaction was treated as a sale for tax purposes in 2014, it does not qualify as a sale under US GAAP until the receipt of the payment of the balance of the purchase price due on December 31, 2017 (or earlier depending upon whether any prepayment obligation is triggered). The asset is classified as long-term land held for sale on the consolidated balance sheets as of September 30, 2016 and December 31, 2015. Doheny Condo, Los Angeles On February 25, 2015, we sold our Los Angeles Condo for $3.0 million resulting in a $2.8 million gain on sale. Taupo, New Zealand On April 1, 2015, we entered into two definitive purchase and sale agreements to sell our properties at Taupo, New Zealand for a combined sales price of $2.4 million (NZ$3.4 million). The first agreement related to a property with a sales price of $1.6 million (NZ$2.2 million) and a book value of $1.3 million (NZ$1.8 million), which closed on April 30, 2015 when we received the sales price in full. The other agreement related to a property with a sales price of $831,000 (NZ$1.2 million) and a book value of $426,000 (NZ$615,000) which was completed and for which we received cash settlement representing the full sales price on March 31, 2016. The first transaction qualified as a sale under both U.S. GAAP and tax purposes during the year-ended December 31, 2015. The second transaction was recorded as a sale during the three months ended March 31, 2016. Moonee Ponds, Australia On October 15, 2013, we entered into a definitive purchase and sale agreement to sell this property for a sales price of $17.5 million (AU$23.0 million) payable in full upon closing of the transaction on April 16, 2015. In accordance with the requirements under U.S. GAAP, we recognized a gain on sale of $8.0 million (AU$10.3 million) in the prior-year second quarter upon the receipt of sale proceeds on April 16, 2015. Cannon Park, Queensland, Australia On December 23, 2015, we completed a 100% acquisition of two adjoining entertainment-themed centers (“ETCs”) in Townsville, Australia for a total of $24.1 million (AU$33.4 million) in cash. The properties are located approximately 6 miles from downtown Townsville, the second largest city in Queensland, Australia. The total gross leasable area of the two adjoining properties, the Cannon Park City Centre and the Cannon Park Discount Centre, is 133,000 square feet. The Cannon Park City Centre is anchored by Reading Cinemas, which is operated by Reading International’s 75% owned subsidiary, Australia Country Cinemas, and has three mini-major tenants and ten specialty family oriented restaurant tenants. The Cannon Park Discount Centre is anchored by Kingpin Bowling and supported by four other retailers. This acquisition is consistent with our business plan to own, where practical, the land underlying our entertainment assets. The acquired assets consist primarily of the land and buildings, which, at the time of acquisition, was approximately 98% leased to existing tenants. Tenancies ranged from having 9 months to 8 years left to run on their leases at the time of purchase. During the quarter ended September 30, 2016, the Company finalized the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on its estimates of their fair values on the acquisition date. The acquired value components of this real estate acquisition included both tangible and intangible assets. The determination of the fair values of the acquired assets and assumed liabilities (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. The estimates and assumptions include projected timing and amount of future cash flows and discount rates reflecting the risk inherent in the future cash flows. Typical of a real estate acquisition, there was no goodwill recorded as the purchase price did not exceed the fair value estimates of the net acquired assets. The following table summarizes the final allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed at the date of acquisition, as well as adjustments made during the measurement period: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  | Measurement |  |  |  |  |  |
﻿ |  | Preliminary Purchase Price |  | Period |  | Final Purchase Price
﻿ |  | Allocation |  | Adjustments(2) |  | Allocation
﻿(Dollars in thousands) |  | US Dollars(1) |  | AU dollars |  | AU dollars |  | US Dollars(1) |  | AU dollars
﻿Tangible Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Operating property: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Land |  |  | 7,525 |  |  | 10,421 |  | $ | 721 |  |  | 8,046 |  |  | 11,142
﻿Building and improvements |  |  | 16,588 |  |  | 22,971 |  |  | (6,453) |  |  | 11,928 |  |  | 16,518
﻿Site improvements |  |  | -- |  |  | -- |  |  | 2,321 |  |  | 1,676 |  |  | 2,321
﻿Tenant improvements |  |  | -- |  |  | -- |  |  | 957 |  |  | 691 |  |  | 957
﻿Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Above-market leases |  |  | -- |  |  | -- |  |  | 61 |  |  | 44 |  |  | 61
﻿In-place leases |  |  | -- |  |  | -- |  |  | 2,135 |  |  | 1,542 |  |  | 2,135
﻿Unamortized leasing commissions |  |  | -- |  |  | -- |  |  | 333 |  |  | 240 |  |  | 333
﻿Unamortized legal fees |  |  | -- |  |  | -- |  |  | 55 |  |  | 40 |  |  | 55
﻿Total assets acquired |  |  | 24,113 |  |  | 33,392 |  |  | 130 |  |  | 24,207 |  |  | 33,522
﻿Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Below-market leases |  |  | -- |  |  | -- |  |  | (130) |  |  | (94) |  |  | (130)
﻿Net assets acquired |  | $ | 24,113 |  | $ | 33,392 |  | $ | -- |  | $ | 24,113 |  |  | 33,392
﻿ (1) The balances were translated into U.S. Dollars based on the applicable exchange rate as of the date of acquisition, December 23, 2015. (2) The measurement period adjustments were mainly due to the finalization of the valuations of the tangible land, building and improvements, site improvements and tenant improvements, as well as valuations of intangible assets and liabilities typically present in an acquisition of a regional mall with existing tenancies. This resulted in a reallocation of the purchase price from Building to other tangible assets (site and tenant improvements), as well as to intangible assets, including above and below market leases, in-place leases and unamortized lease origination costs. ﻿ Investment and Development Property As of September 30, 2016 and December 31, 2015, our investment and development property is summarized below:
﻿ |  |  |  |  |  |
﻿ |  | September 30, |  | December 31,
﻿(Dollars in thousands) |  | 2016 |  | 2015
﻿Land |  | $ | 24,784 |  | $ | 21,434
﻿Building |  |  | 1,900 |  |  | --
﻿Construction-in-progress |  |  | 10,806 |  |  | 1,568
﻿Investment and development property |  | $ | 37,490 |  | $ | 23,002

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- Definition Disclosure of real estate assets (normally turning over within one year or one business cycle if longer) that are sold, held for sale apart from normal operations and anticipated to be sold within one year, real estate property currently under development, real estate currently held for development and long-lived, property that is physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables. + References No definition available. + Details
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