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Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
State current | $ | 275 | $ | (105 | ) | $ | 725 | $ | 576 | |||||||
State deferred | (13 | ) | (106 | ) | (198 | ) | (319 | ) | ||||||||
Federal current | 11 | 56 | ||||||||||||||
Foreign current | (35 | ) | (35 | ) | ||||||||||||
Total income tax expense (benefit) | $ | 238 | $ | (211 | ) | $ | 548 | $ | 257 |
2010 | 2009 | |||||||
Deferred tax assets: | ||||||||
Federal | $ | 8,097 | $ | 8,697 | ||||
Foreign | 2,040 | 1,513 | ||||||
State | 6,742 | 6,467 | ||||||
Total deferred tax assets | $ | 16,879 | $ | 16,677 | ||||
Valuation allowances | (9,334 | ) | (9,090 | ) | ||||
Net deferred tax assets | $ | 7,545 | $ | 7,587 | ||||
Deferred tax liabilities: | ||||||||
Federal | $ | 616 | $ | 615 | ||||
State | 4,155 | 4,396 | ||||||
Total deferred tax liabilities | $ | 4,771 | $ | 5,011 |
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Shopping Center | Ownership as of September 30, 2010 and December 31, 2009 |
Arizona Mills | 50% |
Fair Oaks | 50 |
The Mall at Millenia | 50 |
Stamford Town Center | 50 |
Sunvalley | 50 |
Waterside Shops | 25 |
Westfarms | 79 |
September 30 2010 | December 31 2009 | |||||||
Assets: | ||||||||
Properties | $ | 1,093,324 | $ | 1,094,963 | ||||
Accumulated depreciation and amortization | (414,272 | ) | (396,518 | ) | ||||
$ | 679,052 | $ | 698,445 | |||||
Cash and cash equivalents | 18,030 | 18,544 | ||||||
Accounts and notes receivable, less allowance for doubtful accounts of $1,501 and $1,703 in 2010 and 2009 | 18,085 | 26,982 | ||||||
Deferred charges and other assets | 20,774 | 22,310 | ||||||
$ | 735,941 | $ | 766,281 | |||||
Liabilities and accumulated deficiency in assets: | ||||||||
Notes payable | $ | 1,128,507 | $ | 1,092,806 | ||||
Accounts payable and other liabilities | 36,417 | 50,615 | ||||||
TRG's accumulated deficiency in assets | (229,180 | ) | (205,566 | ) | ||||
Unconsolidated Joint Venture Partners' accumulated deficiency in assets | (199,803 | ) | (171,574 | ) | ||||
$ | 735,941 | $ | 766,281 | |||||
TRG's accumulated deficiency in assets (above) | $ | (229,180 | ) | $ | (205,566 | ) | ||
TRG basis adjustments, including elimination of intercompany profit | 69,112 | 70,371 | ||||||
TCO's additional basis | 63,234 | 64,694 | ||||||
Net Investment in Unconsolidated Joint Ventures | $ | (96,834 | ) | $ | (70,501 | ) | ||
Distributions in excess of investments in and net income of Unconsolidated Joint Ventures | 172,953 | 160,305 | ||||||
Investment in Unconsolidated Joint Ventures | $ | 76,119 | $ | 89,804 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues | $ | 65,775 | $ | 67,286 | $ | 192,837 | $ | 197,030 | ||||||||
Maintenance, taxes, utilities, and other operating expenses | $ | 22,557 | $ | 22,929 | $ | 66,232 | $ | 69,297 | ||||||||
Interest expense | 16,141 | 16,219 | 47,875 | 48,287 | ||||||||||||
Depreciation and amortization | 9,611 | 9,212 | 27,783 | 28,172 | ||||||||||||
Total operating costs | $ | 48,309 | $ | 48,360 | $ | 141,890 | $ | 145,756 | ||||||||
Nonoperating income | 2 | 31 | 3 | 88 | ||||||||||||
Net income | $ | 17,468 | $ | 18,957 | $ | 50,950 | $ | 51,362 | ||||||||
Net income attributable to TRG | $ | 10,069 | $ | 10,435 | $ | 29,307 | $ | 28,700 | ||||||||
Realized intercompany profit, net of depreciation on TRG's basis adjustments | 391 | 506 | 1,366 | 1,740 | ||||||||||||
Depreciation of TCO's additional basis | (487 | ) | (487 | ) | (1,460 | ) | (1,460 | ) | ||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 9,973 | $ | 10,454 | $ | 29,213 | $ | 28,980 | ||||||||
Beneficial interest in Unconsolidated Joint Ventures' operations: | ||||||||||||||||
Revenues less maintenance, taxes, utilities, and other operating expenses | $ | 24,064 | $ | 24,413 | $ | 70,555 | $ | 70,897 | ||||||||
Interest expense | (8,360 | ) | (8,416 | ) | (24,810 | ) | (25,069 | ) | ||||||||
Depreciation and amortization | (5,731 | ) | (5,543 | ) | (16,532 | ) | (16,848 | ) | ||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 9,973 | $ | 10,454 | $ | 29,213 | $ | 28,980 |
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At 100% | At Beneficial Interest | |||||||||||||||
Consolidated Subsidiaries | Unconsolidated Joint Ventures | Consolidated Subsidiaries | Unconsolidated Joint Ventures | |||||||||||||
Debt as of: | ||||||||||||||||
September 30, 2010 | $ | 2,657,819 | $ | 1,128,507 | $ | 2,298,719 | $ | 576,826 | ||||||||
December 31, 2009 | 2,691,019 | 1,092,806 | 2,332,030 | 559,817 | ||||||||||||
Capitalized interest: | ||||||||||||||||
Nine months ended September 30, 2010 | $ | 176 | $ | 176 | ||||||||||||
Nine months ended September 30, 2009 | 915 | $ | 23 | 905 | $ | 11 | ||||||||||
Interest expense: | ||||||||||||||||
Nine months ended September 30, 2010 | $ | 114,246 | $ | 47,875 | $ | 98,377 | $ | 24,810 | ||||||||
Nine months ended September 30, 2009 | 109,113 | 48,287 | 94,318 | 25,069 |
Center | Loan Balance as of 9/30/10 | TRG's Beneficial Interest in Loan Balance as of 9/30/10 | Amount of Loan Balance Guaranteed by TRG as of 9/30/10 | % of Loan Balance Guaranteed by TRG | % of Interest Guaranteed by TRG | |||||||||||||||
(in millions) | ||||||||||||||||||||
Dolphin Mall | $ | 10.0 | $ | 10.0 | $ | 10.0 | 100 | % | 100 | % | ||||||||||
Fairlane Town Center | 80.0 | 80.0 | 80.0 | 100 | 100 | |||||||||||||||
Twelve Oaks Mall | – | – | – | 100 | 100 |
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2010 | 2009 | |||||||
Noncontrolling interests: | ||||||||
Noncontrolling interests in consolidated joint ventures | $ | (101,207 | ) | $ | (100,014 | ) | ||
Noncontrolling interests in partnership equity of TRG | (97,128 | ) | (75,393 | ) | ||||
Preferred equity of TRG | 29,217 | 29,217 | ||||||
$ | (169,118 | ) | $ | (146,190 | ) |
2010 | 2009 | |||||||
Net income (loss) attributable to noncontrolling interests: | ||||||||
Noncontrolling share of income (loss) of consolidated joint ventures | $ | 1,920 | $ | (3,456 | ) | |||
TRG Series F preferred distributions | 615 | 615 | ||||||
Noncontrolling share of income (loss) of TRG | 1,172 | (45,894 | ) | |||||
$ | 3,707 | $ | (48,735 | ) |
2010 | 2009 | |||||||
Net income (loss) attributable to noncontrolling interests: | ||||||||
Noncontrolling share of income of consolidated joint ventures | $ | 5,901 | $ | 270 | ||||
TRG Series F preferred distributions | 1,845 | 1,845 | ||||||
Noncontrolling share of income (loss) of TRG | 9,482 | (34,018 | ) | |||||
$ | 17,228 | $ | (31,903 | ) |
2010 | 2009 | |||||||
Net income (loss) attributable to Taubman Centers, Inc. common shareowners | $ | 14,458 | $ | (73,666 | ) | |||
Transfers (to) from the noncontrolling interest - | ||||||||
Decrease in Taubman Centers, Inc.'s paid-in capital for the acquisition of additional units of TRG under the Continuing Offer | (611 | ) | (7 | ) | ||||
Net transfers (to) from noncontrolling interests | (611 | ) | (7 | ) | ||||
Change from net income (loss) attributable to Taubman Centers, Inc. and transfers (to) from noncontrolling interests | $ | 13,847 | $ | (73,673 | ) |
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Instrument Type | Ownership | Notional Amount | Swap Rate | Credit Spread on Loan | Total Swapped Rate on Loan | Maturity Date | |||||||||||||||
Consolidated Subsidiaries: | |||||||||||||||||||||
Receive variable (LIBOR) /pay-fixed swap | 50.1 | % | $ | 325,000 | 3.86 | % | 1.15 | % | 5.01 | % | January 2011 | ||||||||||
Receive variable (LIBOR) /pay-fixed swap (1) | 95.0 | 131,000 | 2.64 | 2.35 | 4.99 | September 2020 | |||||||||||||||
Unconsolidated Joint Ventures: | |||||||||||||||||||||
Receive variable (LIBOR) /pay-fixed swap | 50.0 | 250,000 | 2.82 | 1.40 | 4.22 | April 2011 | |||||||||||||||
Receive variable (LIBOR) /pay-fixed swap | 50.0 | 30,000 | 5.05 | 0.90 | 5.95 | November 2012 |
(1) | The notional amount of the swap is equal to the outstanding principal balance on the loan, which begins amortizing after the first two years. |
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||
Three months ended September 30 | Three months ended September 30 | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||
Interest rate contracts - consolidated subsidiaries | $ | (308 | ) | $ | 820 | Interest Expense | $ | (3,208 | ) | $ | (2,970 | ) | |||||
Interest rate contracts - UJVs | 574 | (180 | ) | Equity in Income of UJVs | (976 | ) | (981 | ) | |||||||||
Total derivatives in cash flow hedging relationships | $ | 266 | $ | 640 | $ | (4,184 | ) | $ | (3,951 | ) | |||||||
Realized losses on settled cash flow hedges: | |||||||||||||||||
Interest rate contracts - consolidated subsidiaries | Interest Expense | $ | (221 | ) | $ | (221 | ) | ||||||||||
Interest rate contract - UJVs | Equity in Income of UJVs | (94 | ) | (94 | ) | ||||||||||||
Total realized losses on settled cash flow hedges | $ | (315 | ) | $ | (315 | ) |
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||
Nine months ended September 30 | Nine months ended September 30 | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||
Interest rate contracts - consolidated subsidiaries | $ | 4,592 | $ | 4,156 | Interest Expense | $ | (9,088 | ) | $ | (8,471 | ) | ||||||
Interest rate contracts - UJVs | 1,508 | 950 | Equity in Income of UJVs | (2,944 | ) | (2,755 | ) | ||||||||||
Total derivatives in cash flow hedging relationships | $ | 6,100 | $ | 5,106 | $ | (12,032 | ) | $ | (11,226 | ) | |||||||
Realized losses on settled cash flow hedges: | |||||||||||||||||
Interest rate contracts - consolidated subsidiaries | Interest Expense | $ | (664 | ) | $ | (664 | ) | ||||||||||
Interest rate contract - UJVs | Equity in Income of UJVs | (282 | ) | (282 | ) | ||||||||||||
Total realized losses on settled cash flow hedges | $ | (946 | ) | $ | (946 | ) |
Liability Derivatives | |||||||||
Consolidated Balance Sheet Location | September 30 2010 | December 31 2009 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Interest rate contracts - consolidated subsidiaries | Accounts Payable and Accrued Liabilities | $ | 6,194 | $ | 10,786 | ||||
Interest rate contracts - UJVs | Investment in UJVs | 2,950 | 4,458 | ||||||
Total derivatives designated as hedging instruments | $ | 9,144 | $ | 15,244 | |||||
Total derivatives | $ | 9,144 | $ | 15,244 |
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Fair Value Measurements as of September 30, 2010 Using | Fair Value Measurements as of December 31, 2009 Using | |||||||||||||||
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | ||||||||||||
Available-for-sale securities | $ | 2,033 | $ | 1,665 | ||||||||||||
Insurance deposit | 10,308 | 9,689 | ||||||||||||||
Total assets | $ | 12,341 | $ | 11,354 | ||||||||||||
Derivative interest rate contracts (Note 7) | $ | (6,194 | ) | $ | (10,786 | ) | ||||||||||
Total liabilities | $ | (6,194 | ) | $ | (10,786 | ) |
Description | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Total Impairment Losses | ||||||
The Pier Shops investment | $ | 52,300 | $ | (107,652 | ) | |||
Regency Square investment | 28,800 | (59,028 | ) | |||||
Total assets | $ | 81,100 | $ | (166,680 | ) |
2010 | 2009 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Notes payable | $ | 2,657,819 | $ | 2,667,662 | $ | 2,691,019 | $ | 2,523,759 |
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