| Leases
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Year | TRG units outstanding at December 31 | TRG units owned by TCO at December 31(1) | TRG units owned by noncontrolling interests at December 31 | TCO's % interest in TRG at December 31 | TCO's average interest % in TRG | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71% | 71% | ||||||||
2014 | 88,459,859 | 63,324,409 | 25,135,450 | 72 | 72 | ||||||||
2013 | 88,271,133 | 63,101,614 | 25,169,519 | 71 | 72 |
(1) | There is a one-for-one relationship between TRG units owned by TCO and TCO common shares outstanding; amounts in this column are equal to TCO’s common shares outstanding as of the specified dates. |
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2015 | 2014 | 2013 | |||||||||
Federal current | $ | 1,931 | $ | 8,036 | $ | 547 | |||||
Federal deferred | (34 | ) | 1,354 | 632 | |||||||
Foreign current | 628 | 1,300 | 2,193 | ||||||||
Foreign deferred | (114 | ) | (48 | ) | (116 | ) | |||||
State current | (528 | ) | 1,361 | 230 | |||||||
State deferred | (72 | ) | (3 | ) | (77 | ) | |||||
Total income tax expense | $ | 1,811 | $ | 12,000 | $ | 3,409 | |||||
Less income tax (expense) benefit allocated to Gain on Dispositions (1) | 437 | (9,733 | ) | ||||||||
Income tax expense as reported on the Consolidated Statement of Operations and Comprehensive Income | $ | 2,248 | $ | 2,267 | $ | 3,409 |
(1) | Amount represents the income taxes incurred as part of the Company's sale of interests in International Plaza in January 2014. The tax on the sale is classified within Gain on Dispositions, Net of Tax on the Consolidated Statement of Operations and Comprehensive Income. In September 2015, an adjustment of $0.4 million was made to reduce the tax recognized as a result of the sale. |
2015 | 2014 | ||||||
Deferred tax assets: | |||||||
Federal | $ | 1,427 | $ | 1,382 | |||
Foreign | 1,676 | 1,806 | |||||
State | 944 | 471 | |||||
Total deferred tax assets | $ | 4,047 | $ | 3,659 | |||
Valuation allowances | (1,913 | ) | (1,703 | ) | |||
Net deferred tax assets | $ | 2,134 | $ | 1,956 | |||
Deferred tax liabilities: | |||||||
Federal | $ | 602 | $ | 592 | |||
Foreign | 501 | 473 | |||||
State | 70 | 89 | |||||
Total deferred tax liabilities | $ | 1,173 | $ | 1,154 |
Year | Dividends per common share declared | Return of capital | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | ||||||||||||||||
2015 | $ | 2.2600 | $ | 0.0972 | $ | 2.1621 | $ | 0.0004 | $ | 0.0003 | |||||||||||
2014 | 4.7500 | (1) | 0.7057 | 0.0000 | 1.8748 | (2) | 2.1695 | (2) | |||||||||||||
2014 | 2.1600 | 0.3208 | 1.7773 | 0.0287 | (2) | 0.0332 | (2) | ||||||||||||||
2013 | 2.0000 | 0.2636 | 1.7364 | 0.0000 | 0.0000 |
(1) | Includes a special dividend of $4.75 per share of common stock declared and paid during December 2014, which was declared as a result of the Company's disposition of a portfolio of seven centers to Starwood in October 2014 (Note 2). |
(2) | The portion of the per share common dividends paid on December 31, 2014 designated as capital gain (long term and unrecaptured Sec. 1250) dividends for tax purposes is $0.0619 per share of the $0.54 dividend and $4.0443 per share of the $4.75 dividend). |
Year | Dividends per Series J Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | |||||||||||||
2015 | $ | 1.6250 | $ | 1.6245 | $ | 0.0003 | $ | 0.0002 | |||||||||
2014 | 1.6250 | 0.49072 | 0.52580 | (1) | 0.60848 | (1) | |||||||||||
2013 | 1.6250 | 1.6250 | 0.0000 | 0.0000 |
(1) | The portion of the per share Series J preferred dividends designated as capital gain (long term and unrecaptured Sec. 1250) for tax purposes is as follows; $0.32178 per share of the $0.40625 paid on June 30, 2014, $0.40625 per share of the $0.40625 paid on September 30, 2014, and $0.40625 per share of the $0.40625 paid on December 31, 2014. |
Year | Dividends per Series K Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | |||||||||||||
2015 | $ | 1.56250 | $ | 1.5620 | $ | 0.0003 | $ | 0.0002 | |||||||||
2014 | 1.56250 | 0.47185 | 0.50558 | (1) | 0.58507 | (1) | |||||||||||
2013 | 1.24132 | 1.24132 | 0.0000 | 0.0000 |
(1) | The portion of the per share Series K preferred dividends designated as capital gain (long term and unrecaptured Sec. 1250) for tax purposes is as follows; $0.30939 per share of the $0.39063 paid on June 30, 2014, $0.39063 per share of the $0.39063 paid on September 30, 2014, and $0.39063 per share of the $0.39063 paid on December 31, 2014. |
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2015 | 2014 | ||||||
Land | $ | 243,870 | $ | 226,252 | |||
Buildings, improvements, and equipment | 3,107,338 | 2,457,660 | |||||
Construction in process and pre-development costs | 362,007 | 578,593 | |||||
$ | 3,713,215 | $ | 3,262,505 | ||||
Accumulated depreciation and amortization | (1,052,027 | ) | (970,045 | ) | |||
$ | 2,661,188 | $ | 2,292,460 |
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Shopping Center | Ownership as of December 31, 2015 and 2014 | |
CityOn.Xi'an (under construction) | Note 2 | |
CityOn.Zhengzhou (under construction) | Note 2 | |
Fair Oaks | 50% | |
Hanam Union Square (under construction) | Note 2 | |
International Plaza | 50.1 | |
The Mall at Millenia | 50 | |
Stamford Town Center | 50 | |
Sunvalley | 50 | |
The Mall at University Town Center | 50 | |
Waterside Shops | 50 | |
Westfarms | 79 |
December 31 2015 | December 31 2014 | ||||||
Assets: | |||||||
Properties | $ | 1,628,492 | $ | 1,580,926 | |||
Accumulated depreciation and amortization | (589,145 | ) | (548,646 | ) | |||
$ | 1,039,347 | $ | 1,032,280 | ||||
Cash and cash equivalents | 36,047 | 49,765 | |||||
Accounts and notes receivable, less allowance for doubtful accounts of $1,602 and $1,590 in 2015 and 2014 | 42,361 | 38,788 | |||||
Deferred charges and other assets | 39,562 | 33,200 | |||||
$ | 1,157,317 | $ | 1,154,033 | ||||
Liabilities and accumulated deficiency in assets: | |||||||
Notes payable (1) | $ | 2,001,200 | $ | 1,989,546 | |||
Accounts payable and other liabilities | 70,539 | 103,161 | |||||
TRG's accumulated deficiency in assets | (512,256 | ) | (525,759 | ) | |||
Unconsolidated Joint Venture Partners' accumulated deficiency in assets | (402,166 | ) | (412,915 | ) | |||
$ | 1,157,317 | $ | 1,154,033 | ||||
TRG's accumulated deficiency in assets (above) | $ | (512,256 | ) | $ | (525,759 | ) | |
TRG's investment in properties under construction (Note 2) | 296,847 | 232,091 | |||||
TRG basis adjustments, including elimination of intercompany profit | 132,218 | 132,058 | |||||
TCO's additional basis | 53,016 | 54,963 | |||||
Net Investment in Unconsolidated Joint Ventures | $ | (30,175 | ) | $ | (106,647 | ) | |
Distributions in excess of investments in and net income of Unconsolidated Joint Ventures | 464,086 | 476,651 | |||||
Investment in Unconsolidated Joint Ventures | $ | 433,911 | $ | 370,004 |
(1) | As the balances presented exclude those of centers under construction, the Notes Payable amount excludes the construction loans outstanding for Hanam Union Square of $52.9 million ($18.1 million at TRG's share) and CityOn.Zhengzhou of $44.7 million ($14.2 million at TRG's share) at December 31, 2015. |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
Revenues | $ | 378,280 | $ | 338,017 | $ | 294,720 | |||||
Maintenance, taxes, utilities, promotion, and other operating expenses | $ | 118,909 | $ | 106,249 | $ | 92,901 | |||||
Interest expense | 85,198 | 74,806 | 68,998 | ||||||||
Depreciation and amortization | 55,318 | 47,377 | 36,644 | ||||||||
Total operating costs | $ | 259,425 | $ | 228,432 | $ | 198,543 | |||||
Nonoperating expense | (1 | ) | (22 | ) | |||||||
Net income | $ | 118,854 | $ | 109,563 | $ | 96,177 | |||||
Net income attributable to TRG | $ | 65,384 | $ | 60,690 | $ | 53,166 | |||||
Realized intercompany profit, net of depreciation on TRG’s basis adjustments | 4,542 | 3,258 | 1,245 | ||||||||
Depreciation of TCO's additional basis | (1,946 | ) | (1,946 | ) | (1,946 | ) | |||||
Beneficial interest in UJV impairment charge - Miami Worldcenter | (11,754 | ) | |||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 56,226 | $ | 62,002 | $ | 52,465 | |||||
Beneficial interest in Unconsolidated Joint Ventures’ operations: | |||||||||||
Revenues less maintenance, taxes, utilities, promotion, and other operating expenses | $ | 147,905 | $ | 132,652 | $ | 114,939 | |||||
Interest expense | (45,564 | ) | (40,416 | ) | (37,554 | ) | |||||
Depreciation and amortization | (34,361 | ) | (30,234 | ) | (24,920 | ) | |||||
Beneficial interest in UJV impairment charge - Miami Worldcenter | (11,754 | ) | |||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 56,226 | $ | 62,002 | $ | 52,465 |
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2015 | 2014 | ||||||
Trade | $ | 29,559 | $ | 24,757 | |||
Notes | 1,297 | 2,037 | |||||
Straight-line rent and recoveries | 26,665 | 25,378 | |||||
$ | 57,521 | $ | 52,172 | ||||
Less: Allowance for doubtful accounts | (2,974 | ) | (2,927 | ) | |||
$ | 54,547 | $ | 49,245 |
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2015 | 2014 | ||||||
Leasing costs | $ | 29,097 | $ | 27,454 | |||
Accumulated amortization | (10,702 | ) | (10,659 | ) | |||
$ | 18,395 | $ | 16,795 | ||||
In-place leases, net | 8,525 | 11,765 | |||||
Investment in SPG partnership units (Notes 2 and 17) | 77,711 | 77,711 | |||||
Deferred financing costs, net | 22,693 | 15,815 | |||||
Insurance deposit (Note 17) | 14,346 | 13,059 | |||||
Deposits | 40,424 | 40,257 | |||||
Prepaid expenses | 6,622 | 5,496 | |||||
Deferred tax asset, net | 2,134 | 1,956 | |||||
Other, net | 7,324 | 5,581 | |||||
$ | 198,174 | $ | 188,435 |
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2015 | 2014 | Stated Interest Rate | Maturity Date | Balance Due on Maturity | Facility Amount | |||||||||||||||
Cherry Creek Shopping Center | $ | 280,000 | $ | 280,000 | 5.24% | 06/08/16 | $ | 280,000 | ||||||||||||
City Creek Center | 81,756 | (1) | 83,189 | (1) | 4.37% | 08/01/23 | 68,575 | |||||||||||||
El Paseo Village | 15,932 | (2) | 4.42% | |||||||||||||||||
The Gardens on El Paseo | 81,920 | (3) | 83,059 | (3) | 6.10% | 06/11/16 | 81,480 | |||||||||||||
Great Lakes Crossing Outlets | 212,863 | 217,281 | 3.60% | 01/06/23 | 177,038 | |||||||||||||||
The Mall at Green Hills | 150,000 | 150,000 | LIBOR+1.60% | 12/01/18 | (4) | 150,000 | ||||||||||||||
International Market Place | 92,169 | (5) | LIBOR + 1.75% | 08/14/18 | (5) | 92,169 | $ | 330,890 | ||||||||||||
The Mall of San Juan | 258,250 | (6) | 163,779 | (6) | LIBOR + 2.00% | 04/02/17 | (6) | 258,250 | 320,000 | |||||||||||
The Mall at Short Hills | 1,000,000 | 3.48% | 10/01/27 | 1,000,000 | ||||||||||||||||
The Mall at Short Hills | 540,000 | 5.47% | ||||||||||||||||||
U.S. Headquarters Building | 12,000 | LIBOR + 1.40% | (7) | 03/01/24 | 12,000 | |||||||||||||||
U.S. Headquarters Building | 17,265 | (8) | 5.90% | |||||||||||||||||
$65M Revolving Credit Facility | (9) | (9) | LIBOR + 1.40% | 04/30/16 | 65,000 | (9) | ||||||||||||||
$1.1B Revolving Credit Facility | (10) (11) | (10) (11) | LIBOR + 1.25% | (10) | 02/28/19 | (10) | 1,100,000 | (10) | ||||||||||||
$475M Unsecured Term Loan | 475,000 | (11) (12) | 475,000 | (11) (12) | LIBOR + 1.35% | (12) | 02/28/19 | 475,000 | ||||||||||||
$ | 2,643,958 | $ | 2,025,505 |
(1) | The Operating Partnership has provided a limited guarantee of the repayment of the City Creek Center loan, which could be triggered only upon a decline in center occupancy to a level that the Company believes is remote. |
(2) | Balance includes purchase accounting premium adjustment of $0.1 million in 2014 for an above market interest rate upon acquisition of the center in December 2011. In October 2015, the Company paid off the mortgage note payable on El Paseo Village. |
(3) | Balance includes purchase accounting premium adjustment of $0.4 million and $1.6 million in 2015 and 2014, respectively, for an above market interest rate upon acquisition of the center in December 2011. |
(4) | Loan has a one-year extension option. |
(5) | The Operating Partnership has provided an unconditional guaranty of 50% of the principal balance and all accrued but unpaid interest during the term of the loan. The principal guarantee may be reduced to 25% of the outstanding principal balance or terminated upon achievement of certain performance measures. Loan has two, one-year extension options. |
(6) | The Operating Partnership has provided an unconditional guaranty of the principal balance and all accrued but unpaid interest during the term of the loan. Loan has two, one-year extension options. |
(7) | Debt is swapped via a hedge at 2.09% plus a 1.40% credit spread for an effective rate of 3.49% until maturity. |
(8) | Balance includes purchase accounting premium adjustment of $0.2 million for an above market interest rate upon acquisition of the building in February 2014 (Note 2). |
(9) | The unused borrowing capacity at December 31, 2015 was $58.8 million, after considering $6.2 million of letters of credit outstanding on the facility. |
(10) | TRG is the borrower under the $1.1 billion unsecured revolving credit facility with an accordion feature to increase the borrowing capacity to $1.5 billion, subject to certain conditions including having the borrowing capacity based on the unencumbered asset pool EBITDA and obtaining lender commitments. As of December 31, 2015, the Company cannot fully utilize the accordion feature unless additional assets are added to the unencumbered asset pool. The facility bears interest at a range of LIBOR plus 1.15% to LIBOR plus 1.70% and a facility fee of 0.20% to 0.30% based on the Company's total leverage ratio. The facility has a one-year extension option. The unused borrowing capacity at December 31, 2015 was $1.1 billion. |
(11) | As of December 31, 2015, the entities that own Beverly Center, Dolphin Mall, and Twelve Oaks Mall are guarantors under the $475 million unsecured term loan and the $1.1 billion unsecured revolving credit facility. |
(12) | TRG is the borrower under the $475 million unsecured term loan with an accordion feature to increase the borrowing capacity to $600 million, subject to certain conditions including having the borrowing capacity based on the unencumbered asset pool EBITDA and obtaining lender commitments. As of December 31, 2015, the Company cannot fully utilize the accordion feature unless additional assets are added to the unencumbered asset pool. The loan bears interest at a range of LIBOR plus 1.35% to LIBOR plus 1.90% based on the Company's total leverage ratio. From January 2014 until maturity, the LIBOR rate is swapped to a fixed rate of 1.65%, resulting in an effective rate in the range of 3.00% to 3.55% (Note 10). |
2016 | $ | 367,527 | ||
2017 | 264,566 | (1) | ||
2018 | 248,731 | (2) | ||
2019 | 481,820 | |||
2020 | 7,058 | |||
Thereafter | 1,273,816 | |||
Total principal maturities | $ | 2,643,518 | ||
Net unamortized debt premiums | 440 | |||
Total notes payable | $ | 2,643,958 |
(1) | Includes $258.3 million with two, one-year extension options. |
(2) | Includes $92.2 million with two, one-year extension options and $150.0 million with a one-year extension option. |
At 100% | At Beneficial Interest | |||||||||||||||
Consolidated Subsidiaries | Unconsolidated Joint Ventures | Consolidated Subsidiaries | Unconsolidated Joint Ventures | |||||||||||||
Debt as of: | ||||||||||||||||
December 31, 2015 | $ | 2,643,958 | $ | 2,098,776 | $ | 2,485,055 | $ | 1,121,469 | ||||||||
December 31, 2014 | 2,025,505 | 1,989,546 | 1,852,749 | 1,085,991 | ||||||||||||
Capitalized interest: | ||||||||||||||||
Year Ended December 31, 2015 | $ | 31,112 | (1) | $ | 792 | (2) | $ | 30,130 | $ | 543 | (2) | |||||
Year Ended December 31, 2014 | 27,255 | (1) | 3,121 | 26,227 | 1,578 | |||||||||||
Interest expense: | ||||||||||||||||
Year Ended December 31, 2015 | $ | 63,041 | $ | 85,198 | $ | 56,076 | $ | 45,564 | ||||||||
Year Ended December 31, 2014 | 90,803 | 74,806 | 82,702 | 40,416 |
(1) | The Company capitalizes interest costs incurred in funding its equity contributions to development projects accounted for as Unconsolidated Joint Ventures. The capitalized interest cost is included in the Company's basis in its investment in Unconsolidated Joint Ventures. Such capitalized interest reduces interest expense in the Company's Consolidated Statement of Operations and Comprehensive Income and in the table above is included within Consolidated Subsidiaries. |
(2) | Capitalized interest on the Asia Unconsolidated Joint Venture construction loans is presented at the Company's beneficial interest in both the Unconsolidated Joint Ventures (at 100%) and Unconsolidated Joint Ventures (at Beneficial Interest) columns. |
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2015 | 2014 | ||||||
Non-redeemable noncontrolling interests: | |||||||
Noncontrolling interests in consolidated joint ventures | $ | (23,569 | ) | $ | (14,796 | ) | |
Noncontrolling interests in partnership equity of TRG | 31,573 | 116,376 | |||||
$ | 8,004 | $ | 101,580 |
2015 | 2014 | 2013 | |||||||||
Net income attributable to non-redeemable noncontrolling interests: | |||||||||||
Noncontrolling share of income of consolidated joint ventures | $ | 11,222 | $ | 34,239 | $ | 10,344 | |||||
Noncontrolling share of income of TRG | 47,208 | 350,870 | 46,434 | ||||||||
$ | 58,430 | $ | 385,109 | $ | 56,778 |
2015 | 2014 | 2013 | |||||||||
Net income attributable to Taubman Centers, Inc. common shareowners | $ | 109,020 | $ | 863,857 | $ | 109,908 | |||||
Transfers (to) from the noncontrolling interest: | |||||||||||
Increase in Taubman Centers, Inc.’s paid-in capital for the adjustments of noncontrolling interest (1) | 69,521 | 83 | 15,129 | ||||||||
Decrease in Taubman Centers, Inc.’s paid-in capital related to the acquisition of additional ownership interest in an outlet joint venture | (1,050 | ) | |||||||||
Net transfers (to) from noncontrolling interests | 69,521 | 83 | 14,079 | ||||||||
Change from net income attributable to Taubman Centers, Inc. and transfers from noncontrolling interests | $ | 178,541 | $ | 863,940 | $ | 123,987 |
(1) | In 2015, 2014, and 2013, adjustments of the noncontrolling interest were made as a result of changes in the Company's ownership of the Operating Partnership in connection with the Company's share-based compensation under employee and director benefit plans (Note 13), issuances of stock pursuant to the continuing offer (Note 15), redemption of the outlet joint venture partner's interest in 2013, and stock repurchases (Note 14). |
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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 (1) | 100 | % | $ | 200,000 | 1.64 | % | 1.35 | % | (1) | 2.99 | % | (1) | February 2019 | |||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 175,000 | 1.65 | % | 1.35 | % | (1) | 3.00 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 100,000 | 1.64 | % | 1.35 | % | (1) | 2.99 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 12,000 | 2.09 | % | 1.40 | % | 3.49 | % | March 2024 | ||||||||
Unconsolidated Joint Ventures: | ||||||||||||||||||
Receive variable (LIBOR) /pay-fixed swap (3) | 50 | % | 134,698 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (3) | 50 | % | 134,698 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (4) | 50.1 | % | 172,180 | 1.83 | % | 1.75 | % | 3.58 | % | December 2021 | ||||||||
Receive variable (LIBOR) USD/pay-fixed KRW cross-currency interest rate swap (5) | 34.3 | % | 52,065 USD / 60,500,000 KRW | 1.52 | % | 1.60 | % | 3.12 | % | September 2020 |
(1) | The hedged forecasted transaction for each of these swaps is the first previously unhedged one-month LIBOR-indexed interest payments accrued and made each month on a debt principal amount equal to the swap notional amount, regardless of the specific debt agreement from which they may flow. The Company is currently using these swaps to manage interest rate risk on the $475 million TRG Term Loan. The credit spread on this loan can also vary within a range of 1.35% to 1.90%, depending on the Company's leverage ratio at the measurement date. |
(2) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on the U.S. headquarters building. |
(3) | The notional amount on each of these swaps is equal to 50% of the outstanding principal balance of the loan on Fair Oaks. |
(4) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on International Plaza. |
(5) | The notional amount on this swap is equal to the outstanding principal balance of the U.S. dollar construction loan for Hanam Union Square. There is a cross-currency interest rate swap to fix the interest rate on the loan and swap the related principal and interest payments from U.S. dollars to Korean Won in order to reduce the impact of fluctuations in interest rates and exchange rates on the cash flows of the joint venture. The currency swap exchange rate is 1,162.0. |
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) | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||||||||||
Interest rate contracts – consolidated subsidiary (1) | Nonoperating Income (Expense) (1) | $ | (4,880 | ) | |||||||||||||||||||||
Interest rate contracts – consolidated subsidiaries (1) | $ | (1,730 | ) | $ | (7,362 | ) | $ | 9,990 | Interest Expense (1) | $ | (7,211 | ) | (8,663 | ) | $ | (3,221 | ) | ||||||||
Interest rate contracts – UJVs | 71 | 893 | 5,083 | Equity in Income of UJVs | (4,489 | ) | (3,186 | ) | (3,080 | ) | |||||||||||||||
Cross-currency interest rate swap – UJV | 12 | Equity in Income of UJVs | (321 | ) | |||||||||||||||||||||
Total derivatives in cash flow hedging relationships | $ | (1,647 | ) | $ | (6,469 | ) | $ | 15,073 | $ | (12,021 | ) | $ | (16,729 | ) | $ | (6,301 | ) | ||||||||
Realized losses on settled cash flow hedges: | |||||||||||||||||||||||||
Interest rate contracts – consolidated subsidiary | Interest Expense | $ | (605 | ) | |||||||||||||||||||||
Total realized losses on settled cash flow hedges | $ | — | $ | — | $ | (605 | ) |
Fair Value | |||||||||
Consolidated Balance Sheet Location | December 31 2015 | December 31 2014 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Asset derivative: | |||||||||
Interest rate contract - UJV | Investment in UJVs | $ | 109 | ||||||
Total assets designated as hedging instruments | $ | — | $ | 109 | |||||
Liability derivatives: | |||||||||
Interest rate contracts – consolidated subsidiaries | Accounts Payable and Accrued Liabilities | $ | (6,077 | ) | $ | (4,044 | ) | ||
Interest rate contracts – UJVs | Investment in UJVs | (4,974 | ) | (5,154 | ) | ||||
Cross-currency and interest rate swap - UJV | Investment in UJVs | (11 | ) | ||||||
Total liabilities designated as hedging instruments | $ | (11,062 | ) | $ | (9,198 | ) |
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2016 | $ | 310,376 | |
2017 | 284,829 | ||
2018 | 261,734 | ||
2019 | 235,118 | ||
2020 | 202,877 | ||
Thereafter | 599,205 |
2016 | $ | 11,716 | |
2017 | 13,253 | ||
2018 | 13,215 | ||
2019 | 12,752 | ||
2020 | 12,036 | ||
Thereafter | 746,235 |
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Fair Value Measurements as of December 31, 2015 Using | Fair Value Measurements as of December 31, 2014 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) | ||||||||||||
Insurance deposit | $ | 14,346 | $ | 13,059 | ||||||||||||
Total assets | $ | 14,346 | $ | — | $ | 13,059 | $ | — | ||||||||
Derivative interest rate contracts (Note 10) | $ | (6,077 | ) | $ | (4,044 | ) | ||||||||||
Total liabilities | $ | (6,077 | ) | $ | (4,044 | ) |
2015 | 2014 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes payable | $ | 2,643,958 | $ | 2,609,582 | $ | 2,025,505 | $ | 2,056,474 |
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2015 | 2014 | 2013 | |||||||||
Recapitalization of The Mall of San Juan joint venture (Note 2) | $ | 9,296 | |||||||||
Receipt of Simon Property Group Limited Partnership units in connection with the sale of Arizona Mills (Note 2) | $ | 77,711 | |||||||||
Issuance of TRG partnership units in connection with the purchase of the U.S. headquarters building (Note 2) | 91 | ||||||||||
Assumption of debt in connection with the purchase of the U.S. headquarters building (Note 2) | 18,215 | ||||||||||
Issuance of a note receivable in connection with the sale of peripheral land | $ | 7,411 | |||||||||
Other non-cash additions to properties | 104,494 | 24,315 | 14,030 |
|
Taubman Centers, Inc. AOCI | Noncontrolling Interests AOCI | ||||||||||||||||||||||
Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments and other | Total | Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments and other | Total | ||||||||||||||||||
January 1, 2013 | $ | 1,888 | $ | (23,952 | ) | $ | (22,064 | ) | $ | 756 | $ | 1,739 | $ | 2,495 | |||||||||
Other comprehensive income before reclassifications | 3,150 | 6,117 | 9,267 | 1,257 | 2,700 | 3,957 | |||||||||||||||||
Amounts reclassified from AOCI | 3,875 | 3,875 | 1,708 | 1,708 | |||||||||||||||||||
Net current period other comprehensive income | 3,150 | 9,992 | 13,142 | 1,257 | 4,408 | 5,665 | |||||||||||||||||
Adjustments due to changes in ownership | 2 | 6 | 8 | (2 | ) | (6 | ) | (8 | ) | ||||||||||||||
December 31, 2013 | $ | 5,040 | $ | (13,954 | ) | $ | (8,914 | ) | $ | 2,011 | $ | 6,141 | $ | 8,152 | |||||||||
Other comprehensive income (loss) before reclassifications | (5,148 | ) | (12,783 | ) | (17,931 | ) | (2,045 | ) | (5,221 | ) | (7,266 | ) | |||||||||||
Amounts reclassified from AOCI | 11,747 | 11,747 | 4,982 | 4,982 | |||||||||||||||||||
Net current period other comprehensive income (loss) | (5,148 | ) | (1,036 | ) | (6,184 | ) | (2,045 | ) | (239 | ) | (2,284 | ) | |||||||||||
Adjustments due to changes in ownership | 7 | 23 | 30 | (7 | ) | (23 | ) | (30 | ) | ||||||||||||||
December 31, 2014 | $ | (101 | ) | $ | (14,967 | ) | $ | (15,068 | ) | $ | (41 | ) | $ | 5,879 | $ | 5,838 | |||||||
Other comprehensive income (loss) before reclassifications | (10,790 | ) | (9,653 | ) | (20,443 | ) | (4,489 | ) | (4,015 | ) | (8,504 | ) | |||||||||||
Amounts reclassified from AOCI | 8,489 | 8,489 | 3,532 | 3,532 | |||||||||||||||||||
Net current period other comprehensive income (loss) | (10,790 | ) | (1,164 | ) | (11,954 | ) | (4,489 | ) | (483 | ) | (4,972 | ) | |||||||||||
Adjustments due to changes in ownership | 1 | (199 | ) | (198 | ) | (1 | ) | 199 | 198 | ||||||||||||||
December 31, 2015 | $ | (10,890 | ) | $ | (16,330 | ) | $ | (27,220 | ) | $ | (4,531 | ) | $ | 5,595 | $ | 1,064 |
Details about AOCI Components | Amounts reclassified from AOCI | Affected line item in Consolidated Statement of Operations and Comprehensive Income | ||||
Losses on interest rate instruments and other: | ||||||
Realized loss on interest rate contracts - consolidated subsidiaries | $ | 7,211 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 4,489 | Equity in Income in UJVs | ||||
Realized loss on cross-currency interest rate contract - UJV | 321 | Equity in Income in UJVs | ||||
Total reclassifications for the period | $ | 12,021 |
Details about AOCI Components | Amounts reclassified from AOCI | Affected line item in Consolidated Statement of Operations and Comprehensive Income | ||||
Losses on interest rate instruments and other: | ||||||
Discontinuation of hedge accounting - consolidated subsidiary | $ | 4,880 | Nonoperating Income (Expense) | |||
Realized loss on interest rate contracts - consolidated subsidiaries | 8,663 | Interest Expense | ||||
Realized loss on interest rate contracts - UJVs | 3,186 | Equity in Income of UJVs | ||||
Total reclassifications for the period | $ | 16,729 |
Details about AOCI Components | Amounts reclassified from AOCI | Affected line item in Consolidated Statement of Operations and Comprehensive Income | ||||
(Gains)/losses on interest rate instruments and other: | ||||||
Realized loss on interest rate contracts - consolidated subsidiaries | $ | 3,826 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 3,080 | Equity in Income of UJVs | ||||
Realized gain on sale of securities | (1,323 | ) | Nonoperating Income (Expense) | |||
Total reclassifications for the period | $ | 5,583 |
|
2015 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 128,989 | $ | 131,973 | $ | 139,983 | $ | 156,227 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 17,075 | 14,004 | 15,219 | 9,928 | ||||||||||||
Net income | 51,000 | 42,333 | 52,629 | 46,595 | ||||||||||||
Net income attributable to TCO common shareowners | 29,622 | 23,230 | 30,422 | 25,746 | ||||||||||||
Earnings per common share – basic | $ | 0.47 | $ | 0.38 | $ | 0.50 | $ | 0.43 | ||||||||
Earnings per common share – diluted | $ | 0.47 | $ | 0.37 | $ | 0.50 | $ | 0.42 |
2014 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 174,778 | $ | 169,985 | $ | 176,044 | $ | 158,322 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 12,068 | 14,675 | 14,479 | 20,780 | ||||||||||||
Net income | 526,157 | 39,054 | 56,637 | 656,274 | ||||||||||||
Net income attributable to TCO common shareowners | 369,125 | 21,344 | 33,682 | 439,706 | ||||||||||||
Earnings per common share – basic | $ | 5.84 | $ | 0.34 | $ | 0.53 | $ | 6.94 | ||||||||
Earnings per common share – diluted | $ | 5.74 | $ | 0.33 | $ | 0.53 | $ | 6.86 |
|
|
Additions | |||||||||||||||||||||
Balance at beginning of year | Charged to costs and expenses | Charged to other accounts | Write-offs | Transfers, net | Balance at end of year | ||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 2,927 | $ | 1,994 | $ | (1,947 | ) | $ | 2,974 | ||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 1,934 | $ | 2,900 | $ | (1,145 | ) | $ | (762 | ) | (1) | $ | 2,927 | ||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 3,424 | $ | 489 | $ | (1,979 | ) | $ | 1,934 |
(1) | Amount represents balances associated with portfolio of seven centers sold to Starwood that were sold in the fourth quarter of 2014. |
|
Initial Cost to Company | Gross Amount at Which Carried at Close of Period | |||||||||||||||||||||||||||||||
Land | Buildings, Improvements, and Equipment | Cost Capitalized Subsequent to Acquisition | Land | BI&E | Total | Accumulated Depreciation (A/D) | Total Cost Net of A/D | Encumbrances | Year Opened / Expanded | Year Acquired | Depreciable Life | |||||||||||||||||||||
Shopping Centers: | ||||||||||||||||||||||||||||||||
Beverly Center Los Angeles, CA | $ | 209,093 | $ | 97,215 | $ | 306,308 | $ | 306,308 | $ | 178,118 | $ | 128,190 | 1982 | 40 years | ||||||||||||||||||
Cherry Creek Shopping Center Denver, CO | 99,087 | 201,697 | 300,784 | 300,784 | 146,871 | 153,913 | $ | 280,000 | 1990 / 1998 / 2015 | 40 years | ||||||||||||||||||||||
City Creek Shopping Center Salt Lake City, UT | 75,229 | 1,410 | 76,639 | 76,639 | 10,166 | 66,473 | 81,756 | 2012 | 30 years | |||||||||||||||||||||||
Dolphin Mall, Miami, FL | $ | 34,881 | 222,301 | 128,586 | $ | 34,881 | 350,887 | 385,768 | 108,844 | 276,924 | 2001 / 2007 / 2015 | 50 years | ||||||||||||||||||||
The Gardens on El Paseo/ El Paseo Village Palm Desert, CA | 23,500 | 131,858 | 6,388 | 23,500 | 138,246 | 161,746 | 15,999 | 145,747 | 81,920 | (1) | 1998 / 2010 | 2011 | 40 Years / 48 Years | |||||||||||||||||||
Great Lakes Crossing Outlets Auburn Hills, MI | 15,506 | 188,773 | 44,133 | 15,506 | 232,906 | 248,412 | 123,108 | 125,304 | 212,863 | 1998 | 50 years | |||||||||||||||||||||
The Mall at Green Hills Nashville, TN | 48,551 | 332,261 | 32,808 | 48,551 | 365,069 | 413,620 | 42,437 | 371,183 | 150,000 | 1955 / 2011 | 2011 | 40 years | ||||||||||||||||||||
The Mall of San Juan San Juan, PR | 17,617 | 496,645 | 17,617 | 496,645 | 514,262 | 14,081 | 500,181 | 258,250 | 2015 | 50 years | ||||||||||||||||||||||
The Mall at Short Hills Short Hills, NJ | 25,114 | 167,595 | 170,626 | 25,114 | 338,221 | 363,335 | 185,033 | 178,302 | 1,000,000 | 1980 / 1994 / 1995 / 2011 | 40 years | |||||||||||||||||||||
Taubman Prestige Outlets Chesterfield Chesterfield, MO | 16,079 | 108,934 | 3,988 | 16,079 | 112,922 | 129,001 | 12,677 | 116,324 | 2013 | 50 years | ||||||||||||||||||||||
Twelve Oaks Mall Novi, MI | 25,410 | 190,455 | 91,686 | 25,410 | 282,141 | 307,551 | 153,518 | 154,033 | 1977 / 1978 / 2007 / 2008 | 50 years | ||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||
Office Facilities | 5,123 | 12,519 | 34,419 | 5,123 | 46,938 | 52,061 | 29,354 | 22,707 | 12,000 | 2014 | 35 years | |||||||||||||||||||||
Peripheral Land | 28,120 | 28,120 | 28,120 | 28,120 | ||||||||||||||||||||||||||||
Construction in Process and Development - pre-construction costs | 6,920 | 119,780 | 235,307 | 6,920 | 355,087 | 362,007 | 362,007 | 92,169 | ||||||||||||||||||||||||
Assets under CDD Obligations | 3,969 | 58,512 | 3,969 | 58,512 | 62,481 | 31,054 | 31,427 | |||||||||||||||||||||||||
Other | 1,120 | 1,120 | 1,120 | 767 | 353 | |||||||||||||||||||||||||||
Total | $ | 250,790 | $ | 2,414,162 | $ | 1,048,263 | $ | 250,790 | $ | 3,462,425 | $ | 3,713,215 | (2) | $ | 1,052,027 | $ | 2,661,188 |
Total Real Estate Assets | Accumulated Depreciation | ||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Balance, beginning of year | $ | 3,262,505 | $ | 4,485,090 | $ | 4,246,000 | Balance, beginning of year | $ | (970,045 | ) | $ | (1,516,982 | ) | $ | (1,395,876 | ) | |||||||||
Acquisitions | 17,642 | (3) | Depreciation | (98,846 | ) | (110,129 | ) | (142,458 | ) | ||||||||||||||||
New development and improvements | 466,307 | 448,462 | 280,972 | Disposals/Write-offs | 16,864 | 530,916 | (4) | 21,352 | |||||||||||||||||
Disposals/Write-offs | (15,597 | ) | (1,308,529 | ) | (4) | (35,964 | ) | Transfers (In)/Out | 126,150 | (5) | |||||||||||||||
Transfers In/(Out) | (380,160 | ) | (5) | (5,918 | ) | Balance, end of year | $ | (1,052,027 | ) | $ | (970,045 | ) | $ | (1,516,982 | ) | ||||||||||
Balance, end of year | $ | 3,713,215 | $ | 3,262,505 | $ | 4,485,090 |
(1) | Balance includes a purchase accounting premium of $0.4 million for the mortgage note on The Gardens on El Paseo. |
(2) | The unaudited aggregate cost for federal income tax purposes as of December 31, 2015 was $3.521 billion. |
(3) | Primarily represents the book value of the Company's acquisition of the U.S. Headquarters building in February 2014 (Note 2). |
(4) | Primarily represents the book balances of the Sale Centers that were sold to Starwood in the fourth quarter of 2014 (Note 2). |
(5) | Primarily represents the book balances of International Plaza. In January 2014, the Company sold a total of 49.9% of its interests in the entity that owns International Plaza. The disposition decreased the Company's ownership in the center to a noncontrolling 50.1% interest. Subsequent to the disposition, International Plaza is accounted for as an Unconsolidated Joint Venture. |
|
Year | TRG units outstanding at December 31 | TRG units owned by TCO at December 31(1) | TRG units owned by noncontrolling interests at December 31 | TCO's % interest in TRG at December 31 | TCO's average interest % in TRG | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71% | 71% | ||||||||
2014 | 88,459,859 | 63,324,409 | 25,135,450 | 72 | 72 | ||||||||
2013 | 88,271,133 | 63,101,614 | 25,169,519 | 71 | 72 |
(1) | There is a one-for-one relationship between TRG units owned by TCO and TCO common shares outstanding; amounts in this column are equal to TCO’s common shares outstanding as of the specified dates. |
Year | TRG units outstanding at December 31 | TRG units owned by TCO at December 31(1) | TRG units owned by noncontrolling interests at December 31 | TCO's % interest in TRG at December 31 | TCO's average interest % in TRG | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71% | 71% | ||||||||
2014 | 88,459,859 | 63,324,409 | 25,135,450 | 72 | 72 | ||||||||
2013 | 88,271,133 | 63,101,614 | 25,169,519 | 71 | 72 |
(1) | There is a one-for-one relationship between TRG units owned by TCO and TCO common shares outstanding; amounts in this column are equal to TCO’s common shares outstanding as of the specified dates. |
|
Year | TRG units outstanding at December 31 | TRG units owned by TCO at December 31(1) | TRG units owned by noncontrolling interests at December 31 | TCO's % interest in TRG at December 31 | TCO's average interest % in TRG | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71% | 71% | ||||||||
2014 | 88,459,859 | 63,324,409 | 25,135,450 | 72 | 72 | ||||||||
2013 | 88,271,133 | 63,101,614 | 25,169,519 | 71 | 72 |
(1) | There is a one-for-one relationship between TRG units owned by TCO and TCO common shares outstanding; amounts in this column are equal to TCO’s common shares outstanding as of the specified dates. |
|
2015 | 2014 | 2013 | |||||||||
Federal current | $ | 1,931 | $ | 8,036 | $ | 547 | |||||
Federal deferred | (34 | ) | 1,354 | 632 | |||||||
Foreign current | 628 | 1,300 | 2,193 | ||||||||
Foreign deferred | (114 | ) | (48 | ) | (116 | ) | |||||
State current | (528 | ) | 1,361 | 230 | |||||||
State deferred | (72 | ) | (3 | ) | (77 | ) | |||||
Total income tax expense | $ | 1,811 | $ | 12,000 | $ | 3,409 | |||||
Less income tax (expense) benefit allocated to Gain on Dispositions (1) | 437 | (9,733 | ) | ||||||||
Income tax expense as reported on the Consolidated Statement of Operations and Comprehensive Income | $ | 2,248 | $ | 2,267 | $ | 3,409 |
(1) | Amount represents the income taxes incurred as part of the Company's sale of interests in International Plaza in January 2014. The tax on the sale is classified within Gain on Dispositions, Net of Tax on the Consolidated Statement of Operations and Comprehensive Income. In September 2015, an adjustment of $0.4 million was made to reduce the tax recognized as a result of the sale. |
2015 | 2014 | ||||||
Deferred tax assets: | |||||||
Federal | $ | 1,427 | $ | 1,382 | |||
Foreign | 1,676 | 1,806 | |||||
State | 944 | 471 | |||||
Total deferred tax assets | $ | 4,047 | $ | 3,659 | |||
Valuation allowances | (1,913 | ) | (1,703 | ) | |||
Net deferred tax assets | $ | 2,134 | $ | 1,956 | |||
Deferred tax liabilities: | |||||||
Federal | $ | 602 | $ | 592 | |||
Foreign | 501 | 473 | |||||
State | 70 | 89 | |||||
Total deferred tax liabilities | $ | 1,173 | $ | 1,154 |
Year | Dividends per common share declared | Return of capital | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | ||||||||||||||||
2015 | $ | 2.2600 | $ | 0.0972 | $ | 2.1621 | $ | 0.0004 | $ | 0.0003 | |||||||||||
2014 | 4.7500 | (1) | 0.7057 | 0.0000 | 1.8748 | (2) | 2.1695 | (2) | |||||||||||||
2014 | 2.1600 | 0.3208 | 1.7773 | 0.0287 | (2) | 0.0332 | (2) | ||||||||||||||
2013 | 2.0000 | 0.2636 | 1.7364 | 0.0000 | 0.0000 |
(1) | Includes a special dividend of $4.75 per share of common stock declared and paid during December 2014, which was declared as a result of the Company's disposition of a portfolio of seven centers to Starwood in October 2014 (Note 2). |
(2) | The portion of the per share common dividends paid on December 31, 2014 designated as capital gain (long term and unrecaptured Sec. 1250) dividends for tax purposes is $0.0619 per share of the $0.54 dividend and $4.0443 per share of the $4.75 dividend). |
Year | Dividends per Series J Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | |||||||||||||
2015 | $ | 1.6250 | $ | 1.6245 | $ | 0.0003 | $ | 0.0002 | |||||||||
2014 | 1.6250 | 0.49072 | 0.52580 | (1) | 0.60848 | (1) | |||||||||||
2013 | 1.6250 | 1.6250 | 0.0000 | 0.0000 |
(1) | The portion of the per share Series J preferred dividends designated as capital gain (long term and unrecaptured Sec. 1250) for tax purposes is as follows; $0.32178 per share of the $0.40625 paid on June 30, 2014, $0.40625 per share of the $0.40625 paid on September 30, 2014, and $0.40625 per share of the $0.40625 paid on December 31, 2014. |
Year | Dividends per Series K Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | |||||||||||||
2015 | $ | 1.56250 | $ | 1.5620 | $ | 0.0003 | $ | 0.0002 | |||||||||
2014 | 1.56250 | 0.47185 | 0.50558 | (1) | 0.58507 | (1) | |||||||||||
2013 | 1.24132 | 1.24132 | 0.0000 | 0.0000 |
(1) | The portion of the per share Series K preferred dividends designated as capital gain (long term and unrecaptured Sec. 1250) for tax purposes is as follows; $0.30939 per share of the $0.39063 paid on June 30, 2014, $0.39063 per share of the $0.39063 paid on September 30, 2014, and $0.39063 per share of the $0.39063 paid on December 31, 2014. |
|
2015 | 2014 | ||||||
Land | $ | 243,870 | $ | 226,252 | |||
Buildings, improvements, and equipment | 3,107,338 | 2,457,660 | |||||
Construction in process and pre-development costs | 362,007 | 578,593 | |||||
$ | 3,713,215 | $ | 3,262,505 | ||||
Accumulated depreciation and amortization | (1,052,027 | ) | (970,045 | ) | |||
$ | 2,661,188 | $ | 2,292,460 |
|
Shopping Center | Ownership as of December 31, 2015 and 2014 | |
CityOn.Xi'an (under construction) | Note 2 | |
CityOn.Zhengzhou (under construction) | Note 2 | |
Fair Oaks | 50% | |
Hanam Union Square (under construction) | Note 2 | |
International Plaza | 50.1 | |
The Mall at Millenia | 50 | |
Stamford Town Center | 50 | |
Sunvalley | 50 | |
The Mall at University Town Center | 50 | |
Waterside Shops | 50 | |
Westfarms | 79 |
December 31 2015 | December 31 2014 | ||||||
Assets: | |||||||
Properties | $ | 1,628,492 | $ | 1,580,926 | |||
Accumulated depreciation and amortization | (589,145 | ) | (548,646 | ) | |||
$ | 1,039,347 | $ | 1,032,280 | ||||
Cash and cash equivalents | 36,047 | 49,765 | |||||
Accounts and notes receivable, less allowance for doubtful accounts of $1,602 and $1,590 in 2015 and 2014 | 42,361 | 38,788 | |||||
Deferred charges and other assets | 39,562 | 33,200 | |||||
$ | 1,157,317 | $ | 1,154,033 | ||||
Liabilities and accumulated deficiency in assets: | |||||||
Notes payable (1) | $ | 2,001,200 | $ | 1,989,546 | |||
Accounts payable and other liabilities | 70,539 | 103,161 | |||||
TRG's accumulated deficiency in assets | (512,256 | ) | (525,759 | ) | |||
Unconsolidated Joint Venture Partners' accumulated deficiency in assets | (402,166 | ) | (412,915 | ) | |||
$ | 1,157,317 | $ | 1,154,033 | ||||
TRG's accumulated deficiency in assets (above) | $ | (512,256 | ) | $ | (525,759 | ) | |
TRG's investment in properties under construction (Note 2) | 296,847 | 232,091 | |||||
TRG basis adjustments, including elimination of intercompany profit | 132,218 | 132,058 | |||||
TCO's additional basis | 53,016 | 54,963 | |||||
Net Investment in Unconsolidated Joint Ventures | $ | (30,175 | ) | $ | (106,647 | ) | |
Distributions in excess of investments in and net income of Unconsolidated Joint Ventures | 464,086 | 476,651 | |||||
Investment in Unconsolidated Joint Ventures | $ | 433,911 | $ | 370,004 |
(1) | As the balances presented exclude those of centers under construction, the Notes Payable amount excludes the construction loans outstanding for Hanam Union Square of $52.9 million ($18.1 million at TRG's share) and CityOn.Zhengzhou of $44.7 million ($14.2 million at TRG's share) at December 31, 2015. |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
Revenues | $ | 378,280 | $ | 338,017 | $ | 294,720 | |||||
Maintenance, taxes, utilities, promotion, and other operating expenses | $ | 118,909 | $ | 106,249 | $ | 92,901 | |||||
Interest expense | 85,198 | 74,806 | 68,998 | ||||||||
Depreciation and amortization | 55,318 | 47,377 | 36,644 | ||||||||
Total operating costs | $ | 259,425 | $ | 228,432 | $ | 198,543 | |||||
Nonoperating expense | (1 | ) | (22 | ) | |||||||
Net income | $ | 118,854 | $ | 109,563 | $ | 96,177 | |||||
Net income attributable to TRG | $ | 65,384 | $ | 60,690 | $ | 53,166 | |||||
Realized intercompany profit, net of depreciation on TRG’s basis adjustments | 4,542 | 3,258 | 1,245 | ||||||||
Depreciation of TCO's additional basis | (1,946 | ) | (1,946 | ) | (1,946 | ) | |||||
Beneficial interest in UJV impairment charge - Miami Worldcenter | (11,754 | ) | |||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 56,226 | $ | 62,002 | $ | 52,465 | |||||
Beneficial interest in Unconsolidated Joint Ventures’ operations: | |||||||||||
Revenues less maintenance, taxes, utilities, promotion, and other operating expenses | $ | 147,905 | $ | 132,652 | $ | 114,939 | |||||
Interest expense | (45,564 | ) | (40,416 | ) | (37,554 | ) | |||||
Depreciation and amortization | (34,361 | ) | (30,234 | ) | (24,920 | ) | |||||
Beneficial interest in UJV impairment charge - Miami Worldcenter | (11,754 | ) | |||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 56,226 | $ | 62,002 | $ | 52,465 |
|
2015 | 2014 | ||||||
Trade | $ | 29,559 | $ | 24,757 | |||
Notes | 1,297 | 2,037 | |||||
Straight-line rent and recoveries | 26,665 | 25,378 | |||||
$ | 57,521 | $ | 52,172 | ||||
Less: Allowance for doubtful accounts | (2,974 | ) | (2,927 | ) | |||
$ | 54,547 | $ | 49,245 |
|
2015 | 2014 | ||||||
Leasing costs | $ | 29,097 | $ | 27,454 | |||
Accumulated amortization | (10,702 | ) | (10,659 | ) | |||
$ | 18,395 | $ | 16,795 | ||||
In-place leases, net | 8,525 | 11,765 | |||||
Investment in SPG partnership units (Notes 2 and 17) | 77,711 | 77,711 | |||||
Deferred financing costs, net | 22,693 | 15,815 | |||||
Insurance deposit (Note 17) | 14,346 | 13,059 | |||||
Deposits | 40,424 | 40,257 | |||||
Prepaid expenses | 6,622 | 5,496 | |||||
Deferred tax asset, net | 2,134 | 1,956 | |||||
Other, net | 7,324 | 5,581 | |||||
$ | 198,174 | $ | 188,435 |
|
2015 | 2014 | Stated Interest Rate | Maturity Date | Balance Due on Maturity | Facility Amount | |||||||||||||||
Cherry Creek Shopping Center | $ | 280,000 | $ | 280,000 | 5.24% | 06/08/16 | $ | 280,000 | ||||||||||||
City Creek Center | 81,756 | (1) | 83,189 | (1) | 4.37% | 08/01/23 | 68,575 | |||||||||||||
El Paseo Village | 15,932 | (2) | 4.42% | |||||||||||||||||
The Gardens on El Paseo | 81,920 | (3) | 83,059 | (3) | 6.10% | 06/11/16 | 81,480 | |||||||||||||
Great Lakes Crossing Outlets | 212,863 | 217,281 | 3.60% | 01/06/23 | 177,038 | |||||||||||||||
The Mall at Green Hills | 150,000 | 150,000 | LIBOR+1.60% | 12/01/18 | (4) | 150,000 | ||||||||||||||
International Market Place | 92,169 | (5) | LIBOR + 1.75% | 08/14/18 | (5) | 92,169 | $ | 330,890 | ||||||||||||
The Mall of San Juan | 258,250 | (6) | 163,779 | (6) | LIBOR + 2.00% | 04/02/17 | (6) | 258,250 | 320,000 | |||||||||||
The Mall at Short Hills | 1,000,000 | 3.48% | 10/01/27 | 1,000,000 | ||||||||||||||||
The Mall at Short Hills | 540,000 | 5.47% | ||||||||||||||||||
U.S. Headquarters Building | 12,000 | LIBOR + 1.40% | (7) | 03/01/24 | 12,000 | |||||||||||||||
U.S. Headquarters Building | 17,265 | (8) | 5.90% | |||||||||||||||||
$65M Revolving Credit Facility | (9) | (9) | LIBOR + 1.40% | 04/30/16 | 65,000 | (9) | ||||||||||||||
$1.1B Revolving Credit Facility | (10) (11) | (10) (11) | LIBOR + 1.25% | (10) | 02/28/19 | (10) | 1,100,000 | (10) | ||||||||||||
$475M Unsecured Term Loan | 475,000 | (11) (12) | 475,000 | (11) (12) | LIBOR + 1.35% | (12) | 02/28/19 | 475,000 | ||||||||||||
$ | 2,643,958 | $ | 2,025,505 |
(1) | The Operating Partnership has provided a limited guarantee of the repayment of the City Creek Center loan, which could be triggered only upon a decline in center occupancy to a level that the Company believes is remote. |
(2) | Balance includes purchase accounting premium adjustment of $0.1 million in 2014 for an above market interest rate upon acquisition of the center in December 2011. In October 2015, the Company paid off the mortgage note payable on El Paseo Village. |
(3) | Balance includes purchase accounting premium adjustment of $0.4 million and $1.6 million in 2015 and 2014, respectively, for an above market interest rate upon acquisition of the center in December 2011. |
(4) | Loan has a one-year extension option. |
(5) | The Operating Partnership has provided an unconditional guaranty of 50% of the principal balance and all accrued but unpaid interest during the term of the loan. The principal guarantee may be reduced to 25% of the outstanding principal balance or terminated upon achievement of certain performance measures. Loan has two, one-year extension options. |
(6) | The Operating Partnership has provided an unconditional guaranty of the principal balance and all accrued but unpaid interest during the term of the loan. Loan has two, one-year extension options. |
(7) | Debt is swapped via a hedge at 2.09% plus a 1.40% credit spread for an effective rate of 3.49% until maturity. |
(8) | Balance includes purchase accounting premium adjustment of $0.2 million for an above market interest rate upon acquisition of the building in February 2014 (Note 2). |
(9) | The unused borrowing capacity at December 31, 2015 was $58.8 million, after considering $6.2 million of letters of credit outstanding on the facility. |
(10) | TRG is the borrower under the $1.1 billion unsecured revolving credit facility with an accordion feature to increase the borrowing capacity to $1.5 billion, subject to certain conditions including having the borrowing capacity based on the unencumbered asset pool EBITDA and obtaining lender commitments. As of December 31, 2015, the Company cannot fully utilize the accordion feature unless additional assets are added to the unencumbered asset pool. The facility bears interest at a range of LIBOR plus 1.15% to LIBOR plus 1.70% and a facility fee of 0.20% to 0.30% based on the Company's total leverage ratio. The facility has a one-year extension option. The unused borrowing capacity at December 31, 2015 was $1.1 billion. |
(11) | As of December 31, 2015, the entities that own Beverly Center, Dolphin Mall, and Twelve Oaks Mall are guarantors under the $475 million unsecured term loan and the $1.1 billion unsecured revolving credit facility. |
(12) | TRG is the borrower under the $475 million unsecured term loan with an accordion feature to increase the borrowing capacity to $600 million, subject to certain conditions including having the borrowing capacity based on the unencumbered asset pool EBITDA and obtaining lender commitments. As of December 31, 2015, the Company cannot fully utilize the accordion feature unless additional assets are added to the unencumbered asset pool. The loan bears interest at a range of LIBOR plus 1.35% to LIBOR plus 1.90% based on the Company's total leverage ratio. From January 2014 until maturity, the LIBOR rate is swapped to a fixed rate of 1.65%, resulting in an effective rate in the range of 3.00% to 3.55% (Note 10). |
2016 | $ | 367,527 | ||
2017 | 264,566 | (1) | ||
2018 | 248,731 | (2) | ||
2019 | 481,820 | |||
2020 | 7,058 | |||
Thereafter | 1,273,816 | |||
Total principal maturities | $ | 2,643,518 | ||
Net unamortized debt premiums | 440 | |||
Total notes payable | $ | 2,643,958 |
(1) | Includes $258.3 million with two, one-year extension options. |
(2) | Includes $92.2 million with two, one-year extension options and $150.0 million with a one-year extension option. |
At 100% | At Beneficial Interest | |||||||||||||||
Consolidated Subsidiaries | Unconsolidated Joint Ventures | Consolidated Subsidiaries | Unconsolidated Joint Ventures | |||||||||||||
Debt as of: | ||||||||||||||||
December 31, 2015 | $ | 2,643,958 | $ | 2,098,776 | $ | 2,485,055 | $ | 1,121,469 | ||||||||
December 31, 2014 | 2,025,505 | 1,989,546 | 1,852,749 | 1,085,991 | ||||||||||||
Capitalized interest: | ||||||||||||||||
Year Ended December 31, 2015 | $ | 31,112 | (1) | $ | 792 | (2) | $ | 30,130 | $ | 543 | (2) | |||||
Year Ended December 31, 2014 | 27,255 | (1) | 3,121 | 26,227 | 1,578 | |||||||||||
Interest expense: | ||||||||||||||||
Year Ended December 31, 2015 | $ | 63,041 | $ | 85,198 | $ | 56,076 | $ | 45,564 | ||||||||
Year Ended December 31, 2014 | 90,803 | 74,806 | 82,702 | 40,416 |
(1) | The Company capitalizes interest costs incurred in funding its equity contributions to development projects accounted for as Unconsolidated Joint Ventures. The capitalized interest cost is included in the Company's basis in its investment in Unconsolidated Joint Ventures. Such capitalized interest reduces interest expense in the Company's Consolidated Statement of Operations and Comprehensive Income and in the table above is included within Consolidated Subsidiaries. |
(2) | Capitalized interest on the Asia Unconsolidated Joint Venture construction loans is presented at the Company's beneficial interest in both the Unconsolidated Joint Ventures (at 100%) and Unconsolidated Joint Ventures (at Beneficial Interest) columns. |
|
2015 | 2014 | ||||||
Non-redeemable noncontrolling interests: | |||||||
Noncontrolling interests in consolidated joint ventures | $ | (23,569 | ) | $ | (14,796 | ) | |
Noncontrolling interests in partnership equity of TRG | 31,573 | 116,376 | |||||
$ | 8,004 | $ | 101,580 |
2015 | 2014 | 2013 | |||||||||
Net income attributable to non-redeemable noncontrolling interests: | |||||||||||
Noncontrolling share of income of consolidated joint ventures | $ | 11,222 | $ | 34,239 | $ | 10,344 | |||||
Noncontrolling share of income of TRG | 47,208 | 350,870 | 46,434 | ||||||||
$ | 58,430 | $ | 385,109 | $ | 56,778 |
2015 | 2014 | 2013 | |||||||||
Net income attributable to Taubman Centers, Inc. common shareowners | $ | 109,020 | $ | 863,857 | $ | 109,908 | |||||
Transfers (to) from the noncontrolling interest: | |||||||||||
Increase in Taubman Centers, Inc.’s paid-in capital for the adjustments of noncontrolling interest (1) | 69,521 | 83 | 15,129 | ||||||||
Decrease in Taubman Centers, Inc.’s paid-in capital related to the acquisition of additional ownership interest in an outlet joint venture | (1,050 | ) | |||||||||
Net transfers (to) from noncontrolling interests | 69,521 | 83 | 14,079 | ||||||||
Change from net income attributable to Taubman Centers, Inc. and transfers from noncontrolling interests | $ | 178,541 | $ | 863,940 | $ | 123,987 |
(1) | In 2015, 2014, and 2013, adjustments of the noncontrolling interest were made as a result of changes in the Company's ownership of the Operating Partnership in connection with the Company's share-based compensation under employee and director benefit plans (Note 13), issuances of stock pursuant to the continuing offer (Note 15), redemption of the outlet joint venture partner's interest in 2013, and stock repurchases (Note 14) |
|
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 (1) | 100 | % | $ | 200,000 | 1.64 | % | 1.35 | % | (1) | 2.99 | % | (1) | February 2019 | |||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 175,000 | 1.65 | % | 1.35 | % | (1) | 3.00 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 100,000 | 1.64 | % | 1.35 | % | (1) | 2.99 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 12,000 | 2.09 | % | 1.40 | % | 3.49 | % | March 2024 | ||||||||
Unconsolidated Joint Ventures: | ||||||||||||||||||
Receive variable (LIBOR) /pay-fixed swap (3) | 50 | % | 134,698 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (3) | 50 | % | 134,698 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (4) | 50.1 | % | 172,180 | 1.83 | % | 1.75 | % | 3.58 | % | December 2021 | ||||||||
Receive variable (LIBOR) USD/pay-fixed KRW cross-currency interest rate swap (5) | 34.3 | % | 52,065 USD / 60,500,000 KRW | 1.52 | % | 1.60 | % | 3.12 | % | September 2020 |
(1) | The hedged forecasted transaction for each of these swaps is the first previously unhedged one-month LIBOR-indexed interest payments accrued and made each month on a debt principal amount equal to the swap notional amount, regardless of the specific debt agreement from which they may flow. The Company is currently using these swaps to manage interest rate risk on the $475 million TRG Term Loan. The credit spread on this loan can also vary within a range of 1.35% to 1.90%, depending on the Company's leverage ratio at the measurement date. |
(2) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on the U.S. headquarters building. |
(3) | The notional amount on each of these swaps is equal to 50% of the outstanding principal balance of the loan on Fair Oaks. |
(4) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on International Plaza. |
(5) | The notional amount on this swap is equal to the outstanding principal balance of the U.S. dollar construction loan for Hanam Union Square. There is a cross-currency interest rate swap to fix the interest rate on the loan and swap the related principal and interest payments from U.S. dollars to Korean Won in order to reduce the impact of fluctuations in interest rates and exchange rates on the cash flows of the joint venture. The currency swap exchange rate is 1,162.0. |
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) | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||||||||||
Interest rate contracts – consolidated subsidiary (1) | Nonoperating Income (Expense) (1) | $ | (4,880 | ) | |||||||||||||||||||||
Interest rate contracts – consolidated subsidiaries (1) | $ | (1,730 | ) | $ | (7,362 | ) | $ | 9,990 | Interest Expense (1) | $ | (7,211 | ) | (8,663 | ) | $ | (3,221 | ) | ||||||||
Interest rate contracts – UJVs | 71 | 893 | 5,083 | Equity in Income of UJVs | (4,489 | ) | (3,186 | ) | (3,080 | ) | |||||||||||||||
Cross-currency interest rate swap – UJV | 12 | Equity in Income of UJVs | (321 | ) | |||||||||||||||||||||
Total derivatives in cash flow hedging relationships | $ | (1,647 | ) | $ | (6,469 | ) | $ | 15,073 | $ | (12,021 | ) | $ | (16,729 | ) | $ | (6,301 | ) | ||||||||
Realized losses on settled cash flow hedges: | |||||||||||||||||||||||||
Interest rate contracts – consolidated subsidiary | Interest Expense | $ | (605 | ) | |||||||||||||||||||||
Total realized losses on settled cash flow hedges | $ | — | $ | — | $ | (605 | ) |
Fair Value | |||||||||
Consolidated Balance Sheet Location | December 31 2015 | December 31 2014 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Asset derivative: | |||||||||
Interest rate contract - UJV | Investment in UJVs | $ | 109 | ||||||
Total assets designated as hedging instruments | $ | — | $ | 109 | |||||
Liability derivatives: | |||||||||
Interest rate contracts – consolidated subsidiaries | Accounts Payable and Accrued Liabilities | $ | (6,077 | ) | $ | (4,044 | ) | ||
Interest rate contracts – UJVs | Investment in UJVs | (4,974 | ) | (5,154 | ) | ||||
Cross-currency and interest rate swap - UJV | Investment in UJVs | (11 | ) | ||||||
Total liabilities designated as hedging instruments | $ | (11,062 | ) | $ | (9,198 | ) |
|
2016 | $ | 310,376 | |
2017 | 284,829 | ||
2018 | 261,734 | ||
2019 | 235,118 | ||
2020 | 202,877 | ||
Thereafter | 599,205 |
2016 | $ | 11,716 | |
2017 | 13,253 | ||
2018 | 13,215 | ||
2019 | 12,752 | ||
2020 | 12,036 | ||
Thereafter | 746,235 |
|
Fair Value Measurements as of December 31, 2015 Using | Fair Value Measurements as of December 31, 2014 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) | ||||||||||||
Insurance deposit | $ | 14,346 | $ | 13,059 | ||||||||||||
Total assets | $ | 14,346 | $ | — | $ | 13,059 | $ | — | ||||||||
Derivative interest rate contracts (Note 10) | $ | (6,077 | ) | $ | (4,044 | ) | ||||||||||
Total liabilities | $ | (6,077 | ) | $ | (4,044 | ) |
2015 | 2014 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes payable | $ | 2,643,958 | $ | 2,609,582 | $ | 2,025,505 | $ | 2,056,474 |
|
2015 | 2014 | 2013 | |||||||||
Recapitalization of The Mall of San Juan joint venture (Note 2) | $ | 9,296 | |||||||||
Receipt of Simon Property Group Limited Partnership units in connection with the sale of Arizona Mills (Note 2) | $ | 77,711 | |||||||||
Issuance of TRG partnership units in connection with the purchase of the U.S. headquarters building (Note 2) | 91 | ||||||||||
Assumption of debt in connection with the purchase of the U.S. headquarters building (Note 2) | 18,215 | ||||||||||
Issuance of a note receivable in connection with the sale of peripheral land | $ | 7,411 | |||||||||
Other non-cash additions to properties | 104,494 | 24,315 | 14,030 |
|
Taubman Centers, Inc. AOCI | Noncontrolling Interests AOCI | ||||||||||||||||||||||
Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments and other | Total | Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments and other | Total | ||||||||||||||||||
January 1, 2013 | $ | 1,888 | $ | (23,952 | ) | $ | (22,064 | ) | $ | 756 | $ | 1,739 | $ | 2,495 | |||||||||
Other comprehensive income before reclassifications | 3,150 | 6,117 | 9,267 | 1,257 | 2,700 | 3,957 | |||||||||||||||||
Amounts reclassified from AOCI | 3,875 | 3,875 | 1,708 | 1,708 | |||||||||||||||||||
Net current period other comprehensive income | 3,150 | 9,992 | 13,142 | 1,257 | 4,408 | 5,665 | |||||||||||||||||
Adjustments due to changes in ownership | 2 | 6 | 8 | (2 | ) | (6 | ) | (8 | ) | ||||||||||||||
December 31, 2013 | $ | 5,040 | $ | (13,954 | ) | $ | (8,914 | ) | $ | 2,011 | $ | 6,141 | $ | 8,152 | |||||||||
Other comprehensive income (loss) before reclassifications | (5,148 | ) | (12,783 | ) | (17,931 | ) | (2,045 | ) | (5,221 | ) | (7,266 | ) | |||||||||||
Amounts reclassified from AOCI | 11,747 | 11,747 | 4,982 | 4,982 | |||||||||||||||||||
Net current period other comprehensive income (loss) | (5,148 | ) | (1,036 | ) | (6,184 | ) | (2,045 | ) | (239 | ) | (2,284 | ) | |||||||||||
Adjustments due to changes in ownership | 7 | 23 | 30 | (7 | ) | (23 | ) | (30 | ) | ||||||||||||||
December 31, 2014 | $ | (101 | ) | $ | (14,967 | ) | $ | (15,068 | ) | $ | (41 | ) | $ | 5,879 | $ | 5,838 | |||||||
Other comprehensive income (loss) before reclassifications | (10,790 | ) | (9,653 | ) | (20,443 | ) | (4,489 | ) | (4,015 | ) | (8,504 | ) | |||||||||||
Amounts reclassified from AOCI | 8,489 | 8,489 | 3,532 | 3,532 | |||||||||||||||||||
Net current period other comprehensive income (loss) | (10,790 | ) | (1,164 | ) | (11,954 | ) | (4,489 | ) | (483 | ) | (4,972 | ) | |||||||||||
Adjustments due to changes in ownership | 1 | (199 | ) | (198 | ) | (1 | ) | 199 | 198 | ||||||||||||||
December 31, 2015 | $ | (10,890 | ) | $ | (16,330 | ) | $ | (27,220 | ) | $ | (4,531 | ) | $ | 5,595 | $ | 1,064 |
Details about AOCI Components | Amounts reclassified from AOCI | Affected line item in Consolidated Statement of Operations and Comprehensive Income | ||||
Losses on interest rate instruments and other: | ||||||
Realized loss on interest rate contracts - consolidated subsidiaries | $ | 7,211 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 4,489 | Equity in Income in UJVs | ||||
Realized loss on cross-currency interest rate contract - UJV | 321 | Equity in Income in UJVs | ||||
Total reclassifications for the period | $ | 12,021 |
Details about AOCI Components | Amounts reclassified from AOCI | Affected line item in Consolidated Statement of Operations and Comprehensive Income | ||||
Losses on interest rate instruments and other: | ||||||
Discontinuation of hedge accounting - consolidated subsidiary | $ | 4,880 | Nonoperating Income (Expense) | |||
Realized loss on interest rate contracts - consolidated subsidiaries | 8,663 | Interest Expense | ||||
Realized loss on interest rate contracts - UJVs | 3,186 | Equity in Income of UJVs | ||||
Total reclassifications for the period | $ | 16,729 |
Details about AOCI Components | Amounts reclassified from AOCI | Affected line item in Consolidated Statement of Operations and Comprehensive Income | ||||
(Gains)/losses on interest rate instruments and other: | ||||||
Realized loss on interest rate contracts - consolidated subsidiaries | $ | 3,826 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 3,080 | Equity in Income of UJVs | ||||
Realized gain on sale of securities | (1,323 | ) | Nonoperating Income (Expense) | |||
Total reclassifications for the period | $ | 5,583 |
|
2015 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 128,989 | $ | 131,973 | $ | 139,983 | $ | 156,227 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 17,075 | 14,004 | 15,219 | 9,928 | ||||||||||||
Net income | 51,000 | 42,333 | 52,629 | 46,595 | ||||||||||||
Net income attributable to TCO common shareowners | 29,622 | 23,230 | 30,422 | 25,746 | ||||||||||||
Earnings per common share – basic | $ | 0.47 | $ | 0.38 | $ | 0.50 | $ | 0.43 | ||||||||
Earnings per common share – diluted | $ | 0.47 | $ | 0.37 | $ | 0.50 | $ | 0.42 |
2014 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 174,778 | $ | 169,985 | $ | 176,044 | $ | 158,322 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 12,068 | 14,675 | 14,479 | 20,780 | ||||||||||||
Net income | 526,157 | 39,054 | 56,637 | 656,274 | ||||||||||||
Net income attributable to TCO common shareowners | 369,125 | 21,344 | 33,682 | 439,706 | ||||||||||||
Earnings per common share – basic | $ | 5.84 | $ | 0.34 | $ | 0.53 | $ | 6.94 | ||||||||
Earnings per common share – diluted | $ | 5.74 | $ | 0.33 | $ | 0.53 | $ | 6.86 |
|
Additions | |||||||||||||||||||||
Balance at beginning of year | Charged to costs and expenses | Charged to other accounts | Write-offs | Transfers, net | Balance at end of year | ||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 2,927 | $ | 1,994 | $ | (1,947 | ) | $ | 2,974 | ||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 1,934 | $ | 2,900 | $ | (1,145 | ) | $ | (762 | ) | (1) | $ | 2,927 | ||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 3,424 | $ | 489 | $ | (1,979 | ) | $ | 1,934 |
(1) | Amount represents balances associated with portfolio of seven centers sold to Starwood that were sold in the fourth quarter of 2014. |
|
Initial Cost to Company | Gross Amount at Which Carried at Close of Period | |||||||||||||||||||||||||||||||
Land | Buildings, Improvements, and Equipment | Cost Capitalized Subsequent to Acquisition | Land | BI&E | Total | Accumulated Depreciation (A/D) | Total Cost Net of A/D | Encumbrances | Year Opened / Expanded | Year Acquired | Depreciable Life | |||||||||||||||||||||
Shopping Centers: | ||||||||||||||||||||||||||||||||
Beverly Center Los Angeles, CA | $ | 209,093 | $ | 97,215 | $ | 306,308 | $ | 306,308 | $ | 178,118 | $ | 128,190 | 1982 | 40 years | ||||||||||||||||||
Cherry Creek Shopping Center Denver, CO | 99,087 | 201,697 | 300,784 | 300,784 | 146,871 | 153,913 | $ | 280,000 | 1990 / 1998 / 2015 | 40 years | ||||||||||||||||||||||
City Creek Shopping Center Salt Lake City, UT | 75,229 | 1,410 | 76,639 | 76,639 | 10,166 | 66,473 | 81,756 | 2012 | 30 years | |||||||||||||||||||||||
Dolphin Mall, Miami, FL | $ | 34,881 | 222,301 | 128,586 | $ | 34,881 | 350,887 | 385,768 | 108,844 | 276,924 | 2001 / 2007 / 2015 | 50 years | ||||||||||||||||||||
The Gardens on El Paseo/ El Paseo Village Palm Desert, CA | 23,500 | 131,858 | 6,388 | 23,500 | 138,246 | 161,746 | 15,999 | 145,747 | 81,920 | (1) | 1998 / 2010 | 2011 | 40 Years / 48 Years | |||||||||||||||||||
Great Lakes Crossing Outlets Auburn Hills, MI | 15,506 | 188,773 | 44,133 | 15,506 | 232,906 | 248,412 | 123,108 | 125,304 | 212,863 | 1998 | 50 years | |||||||||||||||||||||
The Mall at Green Hills Nashville, TN | 48,551 | 332,261 | 32,808 | 48,551 | 365,069 | 413,620 | 42,437 | 371,183 | 150,000 | 1955 / 2011 | 2011 | 40 years | ||||||||||||||||||||
The Mall of San Juan San Juan, PR | 17,617 | 496,645 | 17,617 | 496,645 | 514,262 | 14,081 | 500,181 | 258,250 | 2015 | 50 years | ||||||||||||||||||||||
The Mall at Short Hills Short Hills, NJ | 25,114 | 167,595 | 170,626 | 25,114 | 338,221 | 363,335 | 185,033 | 178,302 | 1,000,000 | 1980 / 1994 / 1995 / 2011 | 40 years | |||||||||||||||||||||
Taubman Prestige Outlets Chesterfield Chesterfield, MO | 16,079 | 108,934 | 3,988 | 16,079 | 112,922 | 129,001 | 12,677 | 116,324 | 2013 | 50 years | ||||||||||||||||||||||
Twelve Oaks Mall Novi, MI | 25,410 | 190,455 | 91,686 | 25,410 | 282,141 | 307,551 | 153,518 | 154,033 | 1977 / 1978 / 2007 / 2008 | 50 years | ||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||
Office Facilities | 5,123 | 12,519 | 34,419 | 5,123 | 46,938 | 52,061 | 29,354 | 22,707 | 12,000 | 2014 | 35 years | |||||||||||||||||||||
Peripheral Land | 28,120 | 28,120 | 28,120 | 28,120 | ||||||||||||||||||||||||||||
Construction in Process and Development - pre-construction costs | 6,920 | 119,780 | 235,307 | 6,920 | 355,087 | 362,007 | 362,007 | 92,169 | ||||||||||||||||||||||||
Assets under CDD Obligations | 3,969 | 58,512 | 3,969 | 58,512 | 62,481 | 31,054 | 31,427 | |||||||||||||||||||||||||
Other | 1,120 | 1,120 | 1,120 | 767 | 353 | |||||||||||||||||||||||||||
Total | $ | 250,790 | $ | 2,414,162 | $ | 1,048,263 | $ | 250,790 | $ | 3,462,425 | $ | 3,713,215 | (2) | $ | 1,052,027 | $ | 2,661,188 |
Total Real Estate Assets | Accumulated Depreciation | ||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Balance, beginning of year | $ | 3,262,505 | $ | 4,485,090 | $ | 4,246,000 | Balance, beginning of year | $ | (970,045 | ) | $ | (1,516,982 | ) | $ | (1,395,876 | ) | |||||||||
Acquisitions | 17,642 | (3) | Depreciation | (98,846 | ) | (110,129 | ) | (142,458 | ) | ||||||||||||||||
New development and improvements | 466,307 | 448,462 | 280,972 | Disposals/Write-offs | 16,864 | 530,916 | (4) | 21,352 | |||||||||||||||||
Disposals/Write-offs | (15,597 | ) | (1,308,529 | ) | (4) | (35,964 | ) | Transfers (In)/Out | 126,150 | (5) | |||||||||||||||
Transfers In/(Out) | (380,160 | ) | (5) | (5,918 | ) | Balance, end of year | $ | (1,052,027 | ) | $ | (970,045 | ) | $ | (1,516,982 | ) | ||||||||||
Balance, end of year | $ | 3,713,215 | $ | 3,262,505 | $ | 4,485,090 |
(1) | Balance includes a purchase accounting premium of $0.4 million for the mortgage note on The Gardens on El Paseo. |
(2) | The unaudited aggregate cost for federal income tax purposes as of December 31, 2015 was $3.521 billion. |
(3) | Primarily represents the book value of the Company's acquisition of the U.S. Headquarters building in February 2014 (Note 2). |
(4) | Primarily represents the book balances of the Sale Centers that were sold to Starwood in the fourth quarter of 2014 (Note 2). |
(5) | Primarily represents the book balances of International Plaza. In January 2014, the Company sold a total of 49.9% of its interests in the entity that owns International Plaza. The disposition decreased the Company's ownership in the center to a noncontrolling 50.1% interest. Subsequent to the disposition, International Plaza is accounted for as an Unconsolidated Joint Venture. |
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