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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 | ||||||||
2017 | 85,788,252 | 60,832,918 | 24,955,334 | 71% | 71% | ||||||||
2016 | 85,476,892 | 60,430,613 | 25,046,279 | 71 | 71 | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71 | 71 | ||||||||
(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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2017 | 2016 | 2015 | |||||||||
Federal current | $ | (2,509 | ) | $ | 2,238 | $ | 1,931 | ||||
Federal deferred | 1,632 | (1) | (1,310 | ) | (34 | ) | |||||
Foreign current | 849 | 404 | 628 | ||||||||
Foreign deferred | 158 | 293 | (114 | ) | |||||||
State current | (208 | ) | 782 | (528 | ) | ||||||
State deferred | 183 | (195 | ) | (72 | ) | ||||||
Total income tax expense | $ | 105 | $ | 2,212 | $ | 1,811 | |||||
Add income tax benefit allocated to Gain on Dispositions (2) | 437 | ||||||||||
Income tax expense as reported on the Consolidated Statement of Operations and Comprehensive Income | $ | 105 | $ | 2,212 | (3) | $ | 2,248 | ||||
(1) | Reflects $0.3 million of expense related to the restatement of the net Federal deferred tax asset at December 31, 2017 at the new 21% Federal corporate income tax rate under the 2017 Tax Act. |
(2) | Amount represents a reduction of the income taxes incurred as part of the Company's sale of interests in International Plaza in January 2014, which is classified within Gain on Dispositions, Net of Tax on the Consolidated Statement of Operations and Comprehensive Income. |
(3) | Includes $0.5 million of income taxes recognized at the time of conversion of a portion of the Company's investment in partnership units in Simon Property Group Limited Partnership to common shares of Simon Property Group (Note 7). |
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Federal | $ | 503 | (1) | $ | 3,230 | ||
Foreign | 1,788 | 1,673 | |||||
State | 545 | 935 | |||||
Total deferred tax assets | $ | 2,836 | $ | 5,838 | |||
Valuation allowances | (1,620 | ) | (1,812 | ) | |||
Net deferred tax assets | $ | 1,216 | $ | 4,026 | |||
Deferred tax liabilities: | |||||||
Federal | |||||||
Foreign | $ | 1,517 | 1,124 | ||||
State | |||||||
Total deferred tax liabilities | $ | 1,517 | $ | 1,124 | |||
(1) | Includes a $0.3 million reduction in the net Federal deferred tax asset due to the new 21% Federal corporate income tax rate under the 2017 Tax Act. |
Year | Dividends per common share declared | Return of capital | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | |||||||||||||||
2017 | $ | 2.5000 | $ | 0.4775 | $ | 1.3927 | $ | 0.4397 | $ | 0.1901 | ||||||||||
2016 | 2.3800 | — | 1.8427 | 0.3929 | 0.1444 | |||||||||||||||
2015 | 2.2600 | 0.0972 | 2.1621 | 0.0004 | 0.0003 | |||||||||||||||
Year | Dividends per Series J Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | ||||||||||||
2017 | $ | 1.6250 | $ | 1.0505 | $ | 0.4011 | $ | 0.1734 | ||||||||
2016 | 1.6250 | 1.2581 | 0.2683 | 0.0986 | ||||||||||||
2015 | 1.6250 | 1.6245 | 0.0003 | 0.0002 | ||||||||||||
Year | Dividends per Series K Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | ||||||||||||
2017 | $ | 1.5625 | $ | 1.0101 | $ | 0.3857 | $ | 0.1667 | ||||||||
2016 | 1.5625 | 1.2097 | 0.2580 | 0.0948 | ||||||||||||
2015 | 1.5625 | 1.5620 | 0.0003 | 0.0002 | ||||||||||||
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2017 | 2016 | ||||||
Land | $ | 232,970 | $ | 233,303 | |||
Buildings, improvements, and equipment | 3,838,862 | 3,639,256 | |||||
Construction in process and pre-development costs | 389,213 | 301,395 | |||||
$ | 4,461,045 | $ | 4,173,954 | ||||
Accumulated depreciation and amortization | (1,276,916 | ) | (1,147,390 | ) | |||
$ | 3,184,129 | $ | 3,026,564 | ||||
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Shopping Center | Ownership as of December 31, 2017 and 2016 | |
CityOn.Xi'an | 50% | |
CityOn.Zhengzhou | 49 | |
Country Club Plaza | 50 | |
Fair Oaks | 50 | |
International Plaza | 50.1 | |
The Mall at Millenia | 50 | |
Stamford Town Center | 50 | |
Starfield Hanam | 34.3 | |
Sunvalley | 50 | |
The Mall at University Town Center | 50 | |
Waterside Shops | 50 | |
Westfarms | 79 | |
December 31 2017 | December 31 2016 | ||||||
Assets: | |||||||
Properties | $ | 3,756,890 | $ | 3,371,216 | |||
Accumulated depreciation and amortization | (767,678 | ) | (661,611 | ) | |||
$ | 2,989,212 | $ | 2,709,605 | ||||
Cash and cash equivalents | 147,102 | 83,882 | |||||
Accounts and notes receivable, less allowance for doubtful accounts of $4,706 and $1,965 in 2017 and 2016 | 121,173 | 87,612 | |||||
Deferred charges and other assets | 136,837 | 67,167 | |||||
$ | 3,394,324 | $ | 2,948,266 | ||||
Liabilities and accumulated deficiency in assets: | |||||||
Notes payable, net (1) | $ | 2,860,384 | $ | 2,706,628 | |||
Accounts payable and other liabilities | 471,948 | 359,814 | |||||
TRG's accumulated deficiency in assets | (48,338 | ) | (166,226 | ) | |||
Unconsolidated Joint Venture Partners' accumulated deficiency in assets | 110,330 | 48,050 | |||||
$ | 3,394,324 | $ | 2,948,266 | ||||
TRG's accumulated deficiency in assets (above) | $ | (48,338 | ) | $ | (166,226 | ) | |
TRG's investment in and advances to CityOn.Zhengzhou | 46,106 | 112,861 | |||||
TRG basis adjustments, including elimination of intercompany profit | 63,886 | 126,240 | |||||
TCO's additional basis | 49,124 | 51,070 | |||||
Net Investment in Unconsolidated Joint Ventures | $ | 110,778 | $ | 123,945 | |||
Distributions in excess of investments in and net income of Unconsolidated Joint Ventures | 494,851 | 480,863 | |||||
Investment in Unconsolidated Joint Ventures | $ | 605,629 | $ | 604,808 | |||
(1) | The Notes Payable, net amount excludes the construction financing outstanding for CityOn.Zhengzhou of $70.5 million ($34.5 million at TRG's share) as of December 31, 2016. |
Year Ended December 31 | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenues | $ | 586,499 | $ | 477,458 | $ | 378,280 | |||||
Maintenance, taxes, utilities, promotion, and other operating expenses | $ | 218,004 | $ | 172,325 | $ | 118,909 | |||||
Interest expense | 130,339 | 103,973 | 85,198 | ||||||||
Depreciation and amortization | 127,625 | 95,051 | 55,318 | ||||||||
Total operating costs | $ | 475,968 | $ | 371,349 | $ | 259,425 | |||||
Nonoperating income (expense) | 2,894 | 317 | (1 | ) | |||||||
Income tax expense | (5,226 | ) | (375 | ) | |||||||
Gain on disposition, net of tax (1) | 3,713 | ||||||||||
Net income | $ | 111,912 | $ | 106,051 | $ | 118,854 | |||||
Net income attributable to TRG | $ | 59,994 | $ | 61,561 | $ | 65,384 | |||||
Realized intercompany profit, net of depreciation on TRG’s basis adjustments | 9,326 | 10,086 | 4,542 | ||||||||
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 | $ | 67,374 | $ | 69,701 | $ | 56,226 | |||||
Beneficial interest in Unconsolidated Joint Ventures’ operations: | |||||||||||
Revenues less maintenance, taxes, utilities, promotion, and other operating expenses | $ | 202,332 | $ | 178,009 | $ | 147,905 | |||||
Interest expense | (67,283 | ) | (54,674 | ) | (45,564 | ) | |||||
Depreciation and amortization | (66,933 | ) | (53,012 | ) | (34,361 | ) | |||||
Income tax expense | (2,825 | ) | (622 | ) | |||||||
Gain on disposition, net of tax (1) | 2,083 | ||||||||||
Beneficial interest in UJV impairment charge - Miami Worldcenter | (11,754 | ) | |||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 67,374 | $ | 69,701 | $ | 56,226 | |||||
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2017 | 2016 | ||||||
Trade | $ | 51,416 | $ | 31,958 | |||
Notes | 4,031 | 2,959 | |||||
Straight-line rent and recoveries | 33,356 | 29,568 | |||||
$ | 88,803 | $ | 64,485 | ||||
Less: Allowance for doubtful accounts | (10,237 | ) | (4,311 | ) | |||
$ | 78,566 | $ | 60,174 | ||||
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2017 | 2016 | ||||||
Leasing costs | $ | 39,252 | $ | 35,939 | |||
Accumulated amortization | (9,223 | ) | (10,519 | ) | |||
$ | 30,029 | $ | 25,420 | ||||
In-place leases, net | 4,462 | 6,264 | |||||
Investment in Simon Property Group Limited Partnership Units (Note 17) | 44,792 | ||||||
Investment in Simon Property Group common shares (Note 17) | 101,348 | 44,418 | |||||
Revolving credit facilities' deferred financing costs, net | 6,456 | 3,995 | |||||
Insurance deposit (Note 17) | 16,703 | 15,440 | |||||
Deposits | 122,878 | 116,809 | |||||
Prepaid expenses | 6,362 | 4,557 | |||||
Deferred tax asset, net | 1,216 | 4,026 | |||||
Other, net | 10,208 | 10,007 | |||||
$ | 299,662 | $ | 275,728 | ||||
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2017 | 2016 | Stated Interest Rate as of 12/31/17 | Maturity Date | Number of Extension Options | Facility Amount | |||||||||||||
Cherry Creek Shopping Center | $ | 550,000 | $ | 550,000 | 3.85% | 06/01/28 | ||||||||||||
City Creek Center | 78,703 | (1) | 80,269 | (1) | 4.37% | 08/01/23 | ||||||||||||
Great Lakes Crossing Outlets | 203,553 | 208,303 | 3.60% | 01/06/23 | ||||||||||||||
The Mall at Green Hills | 150,000 | 150,000 | LIBOR+1.60% | 12/01/18 | Two, one-year options | (2) | ||||||||||||
International Market Place | 293,801 | 257,052 | LIBOR + 1.75% | 08/14/18 | Two, one-year options | $ | 330,890 | |||||||||||
The Mall of San Juan | 302,357 | (3) | ||||||||||||||||
The Mall at Short Hills | 1,000,000 | 1,000,000 | 3.48% | 10/01/27 | ||||||||||||||
U.S. Headquarters | 12,000 | 12,000 | LIBOR + 1.40% Swapped to 3.49% | 03/01/24 | ||||||||||||||
$65M Revolving Credit Facility | 19,655 | 24,700 | LIBOR + 1.40% | 04/28/18 | 65,000 | (4) | ||||||||||||
$1.1B Revolving Credit Facility | 485,000 | (5) (6) | 210,000 | LIBOR + 1.45% | (5) | 02/01/21 | (5) | Two, six-month options | (5) | 1,100,000 | (5)( 6) | |||||||
$475M Unsecured Term Loan | 475,000 | (7) | 475,000 | (7) | LIBOR + 1.60% | (7) | 02/28/19 | |||||||||||
$300M Unsecured Term Loan | 300,000 | (6) (8) | (8) | LIBOR + 1.60% | (8) | 02/01/22 | ||||||||||||
Deferred Financing Costs, Net | (12,484 | ) | (14,169 | ) | ||||||||||||||
$ | 3,555,228 | $ | 3,255,512 | |||||||||||||||
(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) | In July 2017, the Company added an additional one-year extension option to The Mall at Green Hills loan, providing the option to extend the maturity date to December 2020. |
(3) | In March 2017, the Company repaid the outstanding balance of $302.4 million on the construction facility for The Mall of San Juan, which was scheduled to mature in April 2017. The rate on the loan was LIBOR + 2.00%. The Company funded the repayment using its revolving lines of credit. |
(4) | The unused borrowing capacity at December 31, 2017 was $40.8 million, after considering $4.6 million of letters of credit outstanding on the facility. |
(5) | In February 2017, the Company amended its $1.1 billion primary unsecured revolving credit facility extending the maturity date to February 2021, with two six-month extension options. As of December 31, 2017, the interest rate on the facility was a range of LIBOR plus 1.15% to LIBOR plus 1.70% and a facility fee of 0.20% to 0.25% based on the Company's total leverage ratio. The unused borrowing capacity at December 31, 2017 was $499.3 million. |
(6) | The $1.1 billion primary unsecured revolving line of credit includes an accordion feature, which in combination with the $300 million unsecured term loan would increase the Company's maximum aggregate total commitment to $2.0 billion between the two facilities if fully exercised, subject to obtaining additional lender commitments, customary closing conditions, covenant compliance, and minimum asset values for the unencumbered asset pool. As of December 31, 2017, the Company could not fully utilize the accordion feature unless additional assets were added to the unencumbered asset pool. |
(7) | 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 obtaining additional lender commitments, customary closing conditions, covenant compliance, and minimum asset values for the unencumbered asset pool. As of December 31, 2017, the Company could not fully utilize the accordion feature unless additional assets were 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. The LIBOR rate is swapped to a fixed interest rate of 1.65%, resulting in an effective interest rate in the range of 3.00% to 3.55% (Note 10). |
(8) | In February 2017, TRG completed a $300 million unsecured term loan that bears interest at a range of LIBOR plus 1.25% to LIBOR plus 1.90% based on the Company's total leverage ratio. Beginning January 2018, the LIBOR rate was swapped through maturity to a fixed rate of 2.14%, which will result in an effective interest rate in the range of 3.39% to 4.04% (Note 10). |
(9) | Amounts in table may not add due to rounding. |
2018 | $ | 470,019 | (1) | |
2019 | 481,820 | |||
2020 | 7,058 | |||
2021 | 492,363 | (2) | ||
2022 | 307,652 | |||
Thereafter | 1,808,800 | |||
Total principal maturities | $ | 3,567,712 | ||
Net unamortized deferred financing costs | (12,484 | ) | ||
Total notes payable, net | $ | 3,555,228 | ||
(1) | Includes a total of $443.8 million with two, one-year extension options. |
(2) | Includes $485.0 million with two six-month extension options. |
At 100% | At Beneficial Interest | |||||||||||||||
Consolidated Subsidiaries | Unconsolidated Joint Ventures | Consolidated Subsidiaries | Unconsolidated Joint Ventures | |||||||||||||
Debt as of: | ||||||||||||||||
December 31, 2017 | $ | 3,555,228 | $ | 2,860,384 | $ | 3,261,777 | $ | 1,459,854 | ||||||||
December 31, 2016 | 3,255,512 | 2,777,162 | 2,949,440 | 1,425,511 | ||||||||||||
Capitalized interest: | ||||||||||||||||
Year Ended December 31, 2017 | $ | 12,402 | (1) | $ | 456 | (2) | $ | 12,326 | (1) | $ | 456 | (2) | ||||
Year Ended December 31, 2016 | 21,864 | (1) | 2,589 | (2) | 21,728 | (1) | 2,589 | (2) | ||||||||
Interest expense: | ||||||||||||||||
Year Ended December 31, 2017 | $ | 108,572 | $ | 130,339 | $ | 96,630 | $ | 67,283 | ||||||||
Year Ended December 31, 2016 | 86,285 | 103,973 | 75,954 | 54,674 | ||||||||||||
(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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2017 | 2016 | ||||||
Balance, January 1 | $ | 8,704 | |||||
Former Taubman Asia President vested redeemable equity | (1,204 | ) | $ | 13,854 | |||
Distributions | (7,150 | ) | |||||
Contributions | 2,000 | ||||||
Allocation of net loss | (924 | ) | (656 | ) | |||
Adjustments of redeemable noncontrolling interest | 924 | 656 | |||||
Balance, December 31 | $ | 7,500 | $ | 8,704 | |||
2017 | 2016 | ||||||
Non-redeemable noncontrolling interests: | |||||||
Noncontrolling interests in consolidated joint ventures | $ | (160,359 | ) | $ | (155,919 | ) | |
Noncontrolling interests in partnership equity of TRG | (11,909 | ) | 13,136 | ||||
$ | (172,268 | ) | $ | (142,783 | ) | ||
2017 | 2016 | 2015 | |||||||||
Net income (loss) attributable to non-redeemable noncontrolling interests: | |||||||||||
Non-redeemable noncontrolling interests: | |||||||||||
Noncontrolling share of income of consolidated joint ventures | $ | 7,699 | $ | 8,761 | $ | 11,222 | |||||
Noncontrolling share of income of TRG | 25,277 | 47,433 | 47,208 | ||||||||
$ | 32,976 | $ | 56,194 | $ | 58,430 | ||||||
Redeemable noncontrolling interest: | (924 | ) | (656 | ) | |||||||
$ | 32,052 | $ | 55,538 | $ | 58,430 | ||||||
2017 | 2016 | 2015 | |||||||||
Net income attributable to Taubman Centers, Inc. common shareowners | $ | 55,267 | $ | 107,358 | $ | 109,020 | |||||
Transfers (to) from the noncontrolling interest: | |||||||||||
Increase (decrease) in Taubman Centers, Inc.’s paid-in capital for the adjustments of noncontrolling interest (1) | (1,197 | ) | 1,959 | 69,521 | |||||||
Net transfers (to) from noncontrolling interests | (1,197 | ) | 1,959 | 69,521 | |||||||
Change from net income attributable to Taubman Centers, Inc. and transfers (to) from noncontrolling interests | $ | 54,070 | $ | 109,317 | $ | 178,541 | |||||
(1) | In 2017, 2016, and 2015, 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) and issuances of stock pursuant to the continuing offer (Note 15). In 2017 and 2016, adjustments of the noncontrolling interest were also made in connection with the accounting for the Former Asia President's redeemable ownership interest. In 2015, adjustments of the noncontrolling interest were also made as a result of share 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 | % | 1.60 | % | (1) | 3.24 | % | (1) | February 2019 | |||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 175,000 | 1.65 | % | 1.60 | % | (1) | 3.25 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 100,000 | 1.64 | % | 1.60 | % | (1) | 3.24 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 100,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 100,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 50,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 50,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (3) | 100 | % | 12,000 | 2.09 | % | (3) | 1.40 | % | (3) | 3.49 | % | (3) | March 2024 | |||||
Unconsolidated Joint Ventures: | ||||||||||||||||||
Receive variable (LIBOR) /pay-fixed swap (4) | 50 | % | 130,201 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (4) | 50 | % | 130,201 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (5) | 50.1 | % | 165,656 | 1.83 | % | 1.75 | % | 3.58 | % | December 2021 | ||||||||
Receive variable (LIBOR) USD/pay-fixed KRW cross-currency interest rate swap (6) | 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 unsecured 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, resulting in an effective rate in the range of 3.00% to 3.55% during the swap period. |
(2) | 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, beginning with the January 2018 effective date of the swaps. The Company began using these forward starting swaps to manage interest rate risk on the $300 million unsecured term loan in January 2018. Beginning in January 2018, the LIBOR rate was swapped to a fixed rate of 2.14%. The credit spread on this loan can vary within a range of 1.25% to 1.90%, depending on the Company's total leverage ratio at the measurement date, resulting in an effective rate in the range of 3.39% to 4.04% during the swap period. |
(3) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on the U.S. headquarters building. |
(4) | The notional amount on each of these swaps is equal to 50% of the outstanding principal balance of the loan on Fair Oaks. |
(5) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on International Plaza. |
(6) | The notional amount on this swap is equal to the outstanding principal balance of the U.S. dollar construction loan for Starfield Hanam. 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 KRW 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) | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||||||||||
Interest rate contracts – consolidated subsidiaries | $ | 3,994 | $ | 2,234 | $ | (1,730 | ) | Interest Expense | $ | (2,879 | ) | $ | (5,823 | ) | $ | (7,211 | ) | ||||||||
Interest rate contracts – UJVs | 2,898 | 2,478 | 71 | Equity in Income of UJVs | (2,406 | ) | (3,775 | ) | (4,489 | ) | |||||||||||||||
Cross-currency interest rate contract – UJV | 201 | (109 | ) | 12 | Equity in Income of UJVs | (2,279 | ) | 259 | (321 | ) | |||||||||||||||
Total derivatives in cash flow hedging relationships | $ | 7,093 | $ | 4,603 | $ | (1,647 | ) | $ | (7,564 | ) | $ | (9,339 | ) | $ | (12,021 | ) | |||||||||
Fair Value | |||||||||
Consolidated Balance Sheet Location | December 31 2017 | December 31 2016 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Asset derivative: | |||||||||
Interest rate contracts – consolidated subsidiaries | Deferred Charges and Other Assets | $ | 939 | ||||||
Interest rate contracts – UJV | Investment in UJVs | 760 | |||||||
Cross-currency interest rate contract - UJV | Investment in UJVs | $ | 381 | ||||||
Total assets designated as hedging instruments | $ | 1,699 | $ | 381 | |||||
Liability derivatives: | |||||||||
Interest rate contracts – consolidated subsidiaries | Accounts Payable and Accrued Liabilities | $ | (484 | ) | $ | (3,548 | ) | ||
Interest rate contracts – UJV | Investment in UJVs | (357 | ) | (2,496 | ) | ||||
Cross-currency interest rate contract - UJV | Investment in UJVs | (1,630 | ) | ||||||
Total liabilities designated as hedging instruments | $ | (2,471 | ) | $ | (6,044 | ) | |||
|
|||
2018 | $ | 332,593 | |
2019 | 318,103 | ||
2020 | 292,463 | ||
2021 | 254,603 | ||
2022 | 215,625 | ||
Thereafter | 664,727 | ||
2018 | $ | 15,484 | |
2019 | 15,427 | ||
2020 | 14,288 | ||
2021 | 12,740 | ||
2022 | 13,982 | ||
Thereafter | 737,210 | ||
|
|||
|
|||
|
|||
|
|||
Fair Value Measurements as of December 31, 2017 Using | Fair Value Measurements as of December 31, 2016 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) | ||||||||||||
SPG common shares (Note 7) | $ | 101,348 | $ | 44,418 | ||||||||||||
Insurance deposit | 16,703 | 15,440 | ||||||||||||||
Derivative interest rate contracts (Note 10) | $ | 939 | ||||||||||||||
Total assets | $ | 118,051 | $ | 939 | $ | 59,858 | $ | — | ||||||||
Derivative interest rate contracts (Note 10) | $ | (484 | ) | $ | (3,548 | ) | ||||||||||
Total liabilities | $ | (484 | ) | $ | (3,548 | ) | ||||||||||
2017 | 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes payable | $ | 3,555,228 | $ | 3,503,071 | $ | 3,255,512 | $ | 3,184,036 | |||||||
|
|||
2017 | 2016 | 2015 | |||||||||
Recapitalization of The Mall of San Juan joint venture (1) | $ | 9,296 | |||||||||
Other non-cash additions to properties | $ | 79,023 | $ | 108,581 | 104,494 | ||||||
(1) | In April 2015, the Company acquired an additional 15% interest in The Mall of San Juan. The additional interest was acquired at cost. In connection with the acquisition, the noncontrolling owner used $9.3 million of previously contributed capital to fund its obligation to reimburse the Company for certain shared infrastructure costs, which was classified as a reduction of the noncontrolling interest and an offsetting reduction of properties. |
|
|||
Taubman Centers, Inc. AOCI | Noncontrolling Interests AOCI | ||||||||||||||||||||||||||||||
Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments | Fair value adjustment for marketable equity securities | Total | Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments | Fair value adjustment for marketable equity securities | Total | ||||||||||||||||||||||||
January 1, 2015 | $ | (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 | |||||||||||
Other comprehensive income (loss) before reclassifications | (12,251 | ) | (2,742 | ) | (302 | ) | (15,295 | ) | (5,088 | ) | (1,138 | ) | (126 | ) | (6,352 | ) | |||||||||||||||
Amounts reclassified from AOCI | 6,598 | 6,598 | 2,741 | 2,741 | |||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | (12,251 | ) | 3,856 | (302 | ) | (8,697 | ) | (5,088 | ) | 1,603 | (126 | ) | (3,611 | ) | |||||||||||||||||
Adjustments due to changes in ownership | (6 | ) | 7 | 1 | 6 | (7 | ) | (1 | ) | ||||||||||||||||||||||
December 31, 2016 | $ | (23,147 | ) | $ | (12,467 | ) | $ | (302 | ) | $ | (35,916 | ) | $ | (9,613 | ) | $ | 7,191 | $ | (126 | ) | $ | (2,548 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 23,615 | (333 | ) | 374 | 23,656 | 9,688 | (138 | ) | 154 | 9,704 | |||||||||||||||||||||
Amounts reclassified from AOCI | 5,364 | 5,364 | 2,200 | 2,200 | |||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 23,615 | 5,031 | 374 | 29,020 | 9,688 | 2,062 | 154 | 11,904 | |||||||||||||||||||||||
Adjustments due to changes in ownership | (84 | ) | 61 | (23 | ) | 84 | (61 | ) | 23 | ||||||||||||||||||||||
December 31, 2017 | $ | 384 | $ | (7,375 | ) | $ | 72 | $ | (6,919 | ) | $ | 159 | $ | 9,192 | $ | 28 | $ | 9,379 | |||||||||||||
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 | $ | 2,879 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 2,406 | Equity in Income in UJVs | ||||
Realized loss on cross-currency interest rate contract - UJV | 2,279 | Equity in Income in UJVs | ||||
Total reclassifications for the period | $ | 7,564 | ||||
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 | $ | 5,823 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 3,775 | Equity in Income of UJVs | ||||
Realized gain on cross-currency interest rate contract - UJV | (259 | ) | Equity in Income in UJVs | |||
Total reclassifications for the period | $ | 9,339 | ||||
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 of UJVs | ||||
Realized loss on cross-currency interest rate contract - UJV | 321 | Equity in Income of UJVs | ||||
Total reclassifications for the period | $ | 12,021 | ||||
|
|||
2017 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 149,083 | $ | 154,676 | $ | 153,222 | $ | 172,184 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 20,118 | 13,258 | 13,723 | 20,275 | ||||||||||||
Net income | 32,759 | 27,663 | 14,251 | 38,084 | ||||||||||||
Net income attributable to TCO common shareowners | 17,170 | 13,483 | 4,363 | 20,251 | ||||||||||||
Earnings per common share – basic | $ | 0.28 | $ | 0.22 | $ | 0.07 | $ | 0.33 | ||||||||
Earnings per common share – diluted | $ | 0.28 | $ | 0.22 | $ | 0.07 | $ | 0.33 | ||||||||
2016 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 139,455 | $ | 158,890 | $ | 148,021 | $ | 166,191 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 18,478 | 15,910 | 15,391 | 19,922 | ||||||||||||
Net income | 44,329 | 57,744 | 35,184 | 50,894 | ||||||||||||
Net income attributable to TCO common shareowners | 24,613 | 34,718 | 18,752 | 29,275 | ||||||||||||
Earnings per common share – basic | $ | 0.41 | $ | 0.58 | $ | 0.31 | $ | 0.48 | ||||||||
Earnings per common share – diluted | $ | 0.41 | $ | 0.57 | $ | 0.31 | $ | 0.48 | ||||||||
|
|||
|
|||
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, 2017 | |||||||||||||||||||
Allowance for doubtful receivables | $ | 4,311 | $ | 11,025 | $ | (5,099 | ) | $ | 10,237 | ||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Allowance for doubtful receivables | $ | 2,974 | $ | 4,047 | $ | (2,710 | ) | $ | 4,311 | ||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Allowance for doubtful receivables | $ | 2,927 | $ | 1,994 | $ | (1,947 | ) | $ | 2,974 | ||||||||||
|
|||
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 | $ | 200,902 | $ | 142,323 | $ | 343,225 | $ | 343,225 | $ | 190,119 | $ | 153,106 | 1982 | 40 years | |||||||||||||||||||||||||||
Cherry Creek Shopping Center Denver, CO | 99,087 | 219,260 | 318,347 | 318,347 | 166,241 | 152,106 | $ | 550,000 | 1990 / 1998 / 2015 | 40 years | |||||||||||||||||||||||||||||||
City Creek Shopping Center Salt Lake City, UT | 75,229 | 3,911 | 79,140 | 79,140 | 15,670 | 63,470 | 78,704 | 2012 | 30 years | ||||||||||||||||||||||||||||||||
Dolphin Mall, Miami, FL | $ | 34,881 | 222,301 | 125,286 | $ | 34,881 | 347,587 | 382,468 | 127,685 | 254,783 | 2001 / 2007 / 2015 | 50 years | |||||||||||||||||||||||||||||
The Gardens on El Paseo Palm Desert, CA | 23,500 | 131,858 | 7,643 | 23,500 | 139,501 | 163,001 | 24,611 | 138,390 | 1998 / 2010 | 2011 | 48 years | ||||||||||||||||||||||||||||||
Great Lakes Crossing Outlets Auburn Hills, MI | 15,506 | 188,773 | 51,907 | 15,506 | 240,680 | 256,186 | 130,722 | 125,464 | 203,553 | 1998 | 50 years | ||||||||||||||||||||||||||||||
The Mall at Green Hills Nashville, TN | 48,551 | 332,261 | 81,110 | 48,551 | 413,371 | 461,922 | 66,381 | 395,541 | 150,000 | 1955 / 2011 | 2011 | 40 years | |||||||||||||||||||||||||||||
International Market Place Honolulu, HI | 541,991 | 541,991 | 541,991 | 41,140 | 500,851 | 293,801 | 2016 | 50 years | |||||||||||||||||||||||||||||||||
The Mall of San Juan San Juan, PR | 17,617 | 523,479 | 17,617 | 523,479 | 541,096 | 61,104 | 479,992 | 2015 | 50 years | ||||||||||||||||||||||||||||||||
The Mall at Short Hills Short Hills, NJ | 25,114 | 167,595 | 171,233 | 25,114 | 338,828 | 363,942 | 195,805 | 168,137 | 1,000,000 | 1980 / 1994 / 1995 / 2011 | 40 years | ||||||||||||||||||||||||||||||
Taubman Prestige Outlets Chesterfield Chesterfield, MO | 16,079 | 108,934 | 2,841 | 16,079 | 111,775 | 127,854 | 23,678 | 104,176 | 2013 | 50 years | |||||||||||||||||||||||||||||||
Twelve Oaks Mall Novi, MI | 25,410 | 190,455 | 94,854 | 25,410 | 285,309 | 310,719 | 170,407 | 140,312 | 1977 / 1978 / 2007 / 2008 | 50 years | |||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||||||||
Office Facilities | 5,123 | 12,519 | 54,615 | 5,123 | 67,134 | 72,257 | 26,963 | 45,294 | 12,000 | 2014 | 35 years | ||||||||||||||||||||||||||||||
Peripheral Land | 17,220 | 17,220 | 17,220 | 17,220 | |||||||||||||||||||||||||||||||||||||
Construction in Process and Development - pre-construction costs | 8,058 | 14,537 | 366,618 | 8,058 | 381,155 | 389,213 | 389,213 | ||||||||||||||||||||||||||||||||||
Assets under CDD Obligations | 3,969 | 58,512 | 1,889 | 3,969 | 60,401 | 64,370 | 34,496 | 29,874 | |||||||||||||||||||||||||||||||||
Other | 28,094 | 28,094 | 28,094 | 1,894 | 26,200 | ||||||||||||||||||||||||||||||||||||
Total | $ | 241,028 | $ | 2,896,527 | $ | 1,323,490 | $ | 241,028 | $ | 4,220,017 | $ | 4,461,045 | (1) | $ | 1,276,916 | $ | 3,184,129 | ||||||||||||||||||||||||
Total Real Estate Assets | Accumulated Depreciation | ||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Balance, beginning of year | $ | 4,173,954 | $ | 3,713,215 | $ | 3,262,505 | Balance, beginning of year | $ | (1,147,390 | ) | $ | (1,052,027 | ) | $ | (970,045 | ) | |||||||||
New development and improvements | 320,977 | 528,276 | 466,307 | Depreciation | (161,091 | ) | (130,433 | ) | (98,846 | ) | |||||||||||||||
Disposals/Write-offs | (33,886 | ) | (67,537 | ) | (15,597 | ) | Disposals/Write-offs | 31,565 | 35,070 | 16,864 | |||||||||||||||
Balance, end of year | $ | 4,461,045 | $ | 4,173,954 | $ | 3,713,215 | Balance, end of year | $ | (1,276,916 | ) | $ | (1,147,390 | ) | $ | (1,052,027 | ) | |||||||||
(1) | The unaudited aggregate cost for federal income tax purposes as of December 31, 2017 was $4.787 billion. |
|
|||
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 | ||||||||
2017 | 85,788,252 | 60,832,918 | 24,955,334 | 71% | 71% | ||||||||
2016 | 85,476,892 | 60,430,613 | 25,046,279 | 71 | 71 | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71 | 71 | ||||||||
(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 | ||||||||
2017 | 85,788,252 | 60,832,918 | 24,955,334 | 71% | 71% | ||||||||
2016 | 85,476,892 | 60,430,613 | 25,046,279 | 71 | 71 | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71 | 71 | ||||||||
(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 | ||||||||
2017 | 85,788,252 | 60,832,918 | 24,955,334 | 71% | 71% | ||||||||
2016 | 85,476,892 | 60,430,613 | 25,046,279 | 71 | 71 | ||||||||
2015 | 85,295,720 | 60,233,561 | 25,062,159 | 71 | 71 | ||||||||
(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. |
|
|||
2017 | 2016 | 2015 | |||||||||
Federal current | $ | (2,509 | ) | $ | 2,238 | $ | 1,931 | ||||
Federal deferred | 1,632 | (1) | (1,310 | ) | (34 | ) | |||||
Foreign current | 849 | 404 | 628 | ||||||||
Foreign deferred | 158 | 293 | (114 | ) | |||||||
State current | (208 | ) | 782 | (528 | ) | ||||||
State deferred | 183 | (195 | ) | (72 | ) | ||||||
Total income tax expense | $ | 105 | $ | 2,212 | $ | 1,811 | |||||
Add income tax benefit allocated to Gain on Dispositions (2) | 437 | ||||||||||
Income tax expense as reported on the Consolidated Statement of Operations and Comprehensive Income | $ | 105 | $ | 2,212 | (3) | $ | 2,248 | ||||
(1) | Reflects $0.3 million of expense related to the restatement of the net Federal deferred tax asset at December 31, 2017 at the new 21% Federal corporate income tax rate under the 2017 Tax Act. |
(2) | Amount represents a reduction of the income taxes incurred as part of the Company's sale of interests in International Plaza in January 2014, which is classified within Gain on Dispositions, Net of Tax on the Consolidated Statement of Operations and Comprehensive Income. |
(3) | Includes $0.5 million of income taxes recognized at the time of conversion of a portion of the Company's investment in partnership units in Simon Property Group Limited Partnership to common shares of Simon Property Group (Note 7). |
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Federal | $ | 503 | (1) | $ | 3,230 | ||
Foreign | 1,788 | 1,673 | |||||
State | 545 | 935 | |||||
Total deferred tax assets | $ | 2,836 | $ | 5,838 | |||
Valuation allowances | (1,620 | ) | (1,812 | ) | |||
Net deferred tax assets | $ | 1,216 | $ | 4,026 | |||
Deferred tax liabilities: | |||||||
Federal | |||||||
Foreign | $ | 1,517 | 1,124 | ||||
State | |||||||
Total deferred tax liabilities | $ | 1,517 | $ | 1,124 | |||
(1) | Includes a $0.3 million reduction in the net Federal deferred tax asset due to the new 21% Federal corporate income tax rate under the 2017 Tax Act. |
Year | Dividends per common share declared | Return of capital | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | |||||||||||||||
2017 | $ | 2.5000 | $ | 0.4775 | $ | 1.3927 | $ | 0.4397 | $ | 0.1901 | ||||||||||
2016 | 2.3800 | — | 1.8427 | 0.3929 | 0.1444 | |||||||||||||||
2015 | 2.2600 | 0.0972 | 2.1621 | 0.0004 | 0.0003 | |||||||||||||||
Year | Dividends per Series J Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | ||||||||||||
2017 | $ | 1.6250 | $ | 1.0505 | $ | 0.4011 | $ | 0.1734 | ||||||||
2016 | 1.6250 | 1.2581 | 0.2683 | 0.0986 | ||||||||||||
2015 | 1.6250 | 1.6245 | 0.0003 | 0.0002 | ||||||||||||
Year | Dividends per Series K Preferred share declared | Ordinary income | Long term capital gain | Unrecaptured Sec. 1250 capital gain | ||||||||||||
2017 | $ | 1.5625 | $ | 1.0101 | $ | 0.3857 | $ | 0.1667 | ||||||||
2016 | 1.5625 | 1.2097 | 0.2580 | 0.0948 | ||||||||||||
2015 | 1.5625 | 1.5620 | 0.0003 | 0.0002 | ||||||||||||
|
|||
2017 | 2016 | ||||||
Land | $ | 232,970 | $ | 233,303 | |||
Buildings, improvements, and equipment | 3,838,862 | 3,639,256 | |||||
Construction in process and pre-development costs | 389,213 | 301,395 | |||||
$ | 4,461,045 | $ | 4,173,954 | ||||
Accumulated depreciation and amortization | (1,276,916 | ) | (1,147,390 | ) | |||
$ | 3,184,129 | $ | 3,026,564 | ||||
|
|||
Shopping Center | Ownership as of December 31, 2017 and 2016 | |
CityOn.Xi'an | 50% | |
CityOn.Zhengzhou | 49 | |
Country Club Plaza | 50 | |
Fair Oaks | 50 | |
International Plaza | 50.1 | |
The Mall at Millenia | 50 | |
Stamford Town Center | 50 | |
Starfield Hanam | 34.3 | |
Sunvalley | 50 | |
The Mall at University Town Center | 50 | |
Waterside Shops | 50 | |
Westfarms | 79 | |
December 31 2017 | December 31 2016 | ||||||
Assets: | |||||||
Properties | $ | 3,756,890 | $ | 3,371,216 | |||
Accumulated depreciation and amortization | (767,678 | ) | (661,611 | ) | |||
$ | 2,989,212 | $ | 2,709,605 | ||||
Cash and cash equivalents | 147,102 | 83,882 | |||||
Accounts and notes receivable, less allowance for doubtful accounts of $4,706 and $1,965 in 2017 and 2016 | 121,173 | 87,612 | |||||
Deferred charges and other assets | 136,837 | 67,167 | |||||
$ | 3,394,324 | $ | 2,948,266 | ||||
Liabilities and accumulated deficiency in assets: | |||||||
Notes payable, net (1) | $ | 2,860,384 | $ | 2,706,628 | |||
Accounts payable and other liabilities | 471,948 | 359,814 | |||||
TRG's accumulated deficiency in assets | (48,338 | ) | (166,226 | ) | |||
Unconsolidated Joint Venture Partners' accumulated deficiency in assets | 110,330 | 48,050 | |||||
$ | 3,394,324 | $ | 2,948,266 | ||||
TRG's accumulated deficiency in assets (above) | $ | (48,338 | ) | $ | (166,226 | ) | |
TRG's investment in and advances to CityOn.Zhengzhou | 46,106 | 112,861 | |||||
TRG basis adjustments, including elimination of intercompany profit | 63,886 | 126,240 | |||||
TCO's additional basis | 49,124 | 51,070 | |||||
Net Investment in Unconsolidated Joint Ventures | $ | 110,778 | $ | 123,945 | |||
Distributions in excess of investments in and net income of Unconsolidated Joint Ventures | 494,851 | 480,863 | |||||
Investment in Unconsolidated Joint Ventures | $ | 605,629 | $ | 604,808 | |||
(1) | The Notes Payable, net amount excludes the construction financing outstanding for CityOn.Zhengzhou of $70.5 million ($34.5 million at TRG's share) as of December 31, 2016. |
Year Ended December 31 | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenues | $ | 586,499 | $ | 477,458 | $ | 378,280 | |||||
Maintenance, taxes, utilities, promotion, and other operating expenses | $ | 218,004 | $ | 172,325 | $ | 118,909 | |||||
Interest expense | 130,339 | 103,973 | 85,198 | ||||||||
Depreciation and amortization | 127,625 | 95,051 | 55,318 | ||||||||
Total operating costs | $ | 475,968 | $ | 371,349 | $ | 259,425 | |||||
Nonoperating income (expense) | 2,894 | 317 | (1 | ) | |||||||
Income tax expense | (5,226 | ) | (375 | ) | |||||||
Gain on disposition, net of tax (1) | 3,713 | ||||||||||
Net income | $ | 111,912 | $ | 106,051 | $ | 118,854 | |||||
Net income attributable to TRG | $ | 59,994 | $ | 61,561 | $ | 65,384 | |||||
Realized intercompany profit, net of depreciation on TRG’s basis adjustments | 9,326 | 10,086 | 4,542 | ||||||||
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 | $ | 67,374 | $ | 69,701 | $ | 56,226 | |||||
Beneficial interest in Unconsolidated Joint Ventures’ operations: | |||||||||||
Revenues less maintenance, taxes, utilities, promotion, and other operating expenses | $ | 202,332 | $ | 178,009 | $ | 147,905 | |||||
Interest expense | (67,283 | ) | (54,674 | ) | (45,564 | ) | |||||
Depreciation and amortization | (66,933 | ) | (53,012 | ) | (34,361 | ) | |||||
Income tax expense | (2,825 | ) | (622 | ) | |||||||
Gain on disposition, net of tax (1) | 2,083 | ||||||||||
Beneficial interest in UJV impairment charge - Miami Worldcenter | (11,754 | ) | |||||||||
Equity in income of Unconsolidated Joint Ventures | $ | 67,374 | $ | 69,701 | $ | 56,226 | |||||
|
|||
2017 | 2016 | ||||||
Trade | $ | 51,416 | $ | 31,958 | |||
Notes | 4,031 | 2,959 | |||||
Straight-line rent and recoveries | 33,356 | 29,568 | |||||
$ | 88,803 | $ | 64,485 | ||||
Less: Allowance for doubtful accounts | (10,237 | ) | (4,311 | ) | |||
$ | 78,566 | $ | 60,174 | ||||
|
|||
2017 | 2016 | ||||||
Leasing costs | $ | 39,252 | $ | 35,939 | |||
Accumulated amortization | (9,223 | ) | (10,519 | ) | |||
$ | 30,029 | $ | 25,420 | ||||
In-place leases, net | 4,462 | 6,264 | |||||
Investment in Simon Property Group Limited Partnership Units (Note 17) | 44,792 | ||||||
Investment in Simon Property Group common shares (Note 17) | 101,348 | 44,418 | |||||
Revolving credit facilities' deferred financing costs, net | 6,456 | 3,995 | |||||
Insurance deposit (Note 17) | 16,703 | 15,440 | |||||
Deposits | 122,878 | 116,809 | |||||
Prepaid expenses | 6,362 | 4,557 | |||||
Deferred tax asset, net | 1,216 | 4,026 | |||||
Other, net | 10,208 | 10,007 | |||||
$ | 299,662 | $ | 275,728 | ||||
|
|||
2017 | 2016 | Stated Interest Rate as of 12/31/17 | Maturity Date | Number of Extension Options | Facility Amount | |||||||||||||
Cherry Creek Shopping Center | $ | 550,000 | $ | 550,000 | 3.85% | 06/01/28 | ||||||||||||
City Creek Center | 78,703 | (1) | 80,269 | (1) | 4.37% | 08/01/23 | ||||||||||||
Great Lakes Crossing Outlets | 203,553 | 208,303 | 3.60% | 01/06/23 | ||||||||||||||
The Mall at Green Hills | 150,000 | 150,000 | LIBOR+1.60% | 12/01/18 | Two, one-year options | (2) | ||||||||||||
International Market Place | 293,801 | 257,052 | LIBOR + 1.75% | 08/14/18 | Two, one-year options | $ | 330,890 | |||||||||||
The Mall of San Juan | 302,357 | (3) | ||||||||||||||||
The Mall at Short Hills | 1,000,000 | 1,000,000 | 3.48% | 10/01/27 | ||||||||||||||
U.S. Headquarters | 12,000 | 12,000 | LIBOR + 1.40% Swapped to 3.49% | 03/01/24 | ||||||||||||||
$65M Revolving Credit Facility | 19,655 | 24,700 | LIBOR + 1.40% | 04/28/18 | 65,000 | (4) | ||||||||||||
$1.1B Revolving Credit Facility | 485,000 | (5) (6) | 210,000 | LIBOR + 1.45% | (5) | 02/01/21 | (5) | Two, six-month options | (5) | 1,100,000 | (5)( 6) | |||||||
$475M Unsecured Term Loan | 475,000 | (7) | 475,000 | (7) | LIBOR + 1.60% | (7) | 02/28/19 | |||||||||||
$300M Unsecured Term Loan | 300,000 | (6) (8) | (8) | LIBOR + 1.60% | (8) | 02/01/22 | ||||||||||||
Deferred Financing Costs, Net | (12,484 | ) | (14,169 | ) | ||||||||||||||
$ | 3,555,228 | $ | 3,255,512 | |||||||||||||||
(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) | In July 2017, the Company added an additional one-year extension option to The Mall at Green Hills loan, providing the option to extend the maturity date to December 2020. |
(3) | In March 2017, the Company repaid the outstanding balance of $302.4 million on the construction facility for The Mall of San Juan, which was scheduled to mature in April 2017. The rate on the loan was LIBOR + 2.00%. The Company funded the repayment using its revolving lines of credit. |
(4) | The unused borrowing capacity at December 31, 2017 was $40.8 million, after considering $4.6 million of letters of credit outstanding on the facility. |
(5) | In February 2017, the Company amended its $1.1 billion primary unsecured revolving credit facility extending the maturity date to February 2021, with two six-month extension options. As of December 31, 2017, the interest rate on the facility was a range of LIBOR plus 1.15% to LIBOR plus 1.70% and a facility fee of 0.20% to 0.25% based on the Company's total leverage ratio. The unused borrowing capacity at December 31, 2017 was $499.3 million. |
(6) | The $1.1 billion primary unsecured revolving line of credit includes an accordion feature, which in combination with the $300 million unsecured term loan would increase the Company's maximum aggregate total commitment to $2.0 billion between the two facilities if fully exercised, subject to obtaining additional lender commitments, customary closing conditions, covenant compliance, and minimum asset values for the unencumbered asset pool. As of December 31, 2017, the Company could not fully utilize the accordion feature unless additional assets were added to the unencumbered asset pool. |
(7) | 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 obtaining additional lender commitments, customary closing conditions, covenant compliance, and minimum asset values for the unencumbered asset pool. As of December 31, 2017, the Company could not fully utilize the accordion feature unless additional assets were 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. The LIBOR rate is swapped to a fixed interest rate of 1.65%, resulting in an effective interest rate in the range of 3.00% to 3.55% (Note 10). |
(8) | In February 2017, TRG completed a $300 million unsecured term loan that bears interest at a range of LIBOR plus 1.25% to LIBOR plus 1.90% based on the Company's total leverage ratio. Beginning January 2018, the LIBOR rate was swapped through maturity to a fixed rate of 2.14%, which will result in an effective interest rate in the range of 3.39% to 4.04% (Note 10). |
(9) | Amounts in table may not add due to rounding. |
2018 | $ | 470,019 | (1) | |
2019 | 481,820 | |||
2020 | 7,058 | |||
2021 | 492,363 | (2) | ||
2022 | 307,652 | |||
Thereafter | 1,808,800 | |||
Total principal maturities | $ | 3,567,712 | ||
Net unamortized deferred financing costs | (12,484 | ) | ||
Total notes payable, net | $ | 3,555,228 | ||
(1) | Includes a total of $443.8 million with two, one-year extension options. |
(2) | Includes $485.0 million with two six-month extension options. |
At 100% | At Beneficial Interest | |||||||||||||||
Consolidated Subsidiaries | Unconsolidated Joint Ventures | Consolidated Subsidiaries | Unconsolidated Joint Ventures | |||||||||||||
Debt as of: | ||||||||||||||||
December 31, 2017 | $ | 3,555,228 | $ | 2,860,384 | $ | 3,261,777 | $ | 1,459,854 | ||||||||
December 31, 2016 | 3,255,512 | 2,777,162 | 2,949,440 | 1,425,511 | ||||||||||||
Capitalized interest: | ||||||||||||||||
Year Ended December 31, 2017 | $ | 12,402 | (1) | $ | 456 | (2) | $ | 12,326 | (1) | $ | 456 | (2) | ||||
Year Ended December 31, 2016 | 21,864 | (1) | 2,589 | (2) | 21,728 | (1) | 2,589 | (2) | ||||||||
Interest expense: | ||||||||||||||||
Year Ended December 31, 2017 | $ | 108,572 | $ | 130,339 | $ | 96,630 | $ | 67,283 | ||||||||
Year Ended December 31, 2016 | 86,285 | 103,973 | 75,954 | 54,674 | ||||||||||||
(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. |
|
|||
2017 | 2016 | ||||||
Balance, January 1 | $ | 8,704 | |||||
Former Taubman Asia President vested redeemable equity | (1,204 | ) | $ | 13,854 | |||
Distributions | (7,150 | ) | |||||
Contributions | 2,000 | ||||||
Allocation of net loss | (924 | ) | (656 | ) | |||
Adjustments of redeemable noncontrolling interest | 924 | 656 | |||||
Balance, December 31 | $ | 7,500 | $ | 8,704 | |||
2017 | 2016 | ||||||
Non-redeemable noncontrolling interests: | |||||||
Noncontrolling interests in consolidated joint ventures | $ | (160,359 | ) | $ | (155,919 | ) | |
Noncontrolling interests in partnership equity of TRG | (11,909 | ) | 13,136 | ||||
$ | (172,268 | ) | $ | (142,783 | ) | ||
2017 | 2016 | 2015 | |||||||||
Net income (loss) attributable to non-redeemable noncontrolling interests: | |||||||||||
Non-redeemable noncontrolling interests: | |||||||||||
Noncontrolling share of income of consolidated joint ventures | $ | 7,699 | $ | 8,761 | $ | 11,222 | |||||
Noncontrolling share of income of TRG | 25,277 | 47,433 | 47,208 | ||||||||
$ | 32,976 | $ | 56,194 | $ | 58,430 | ||||||
Redeemable noncontrolling interest: | (924 | ) | (656 | ) | |||||||
$ | 32,052 | $ | 55,538 | $ | 58,430 | ||||||
2017 | 2016 | 2015 | |||||||||
Net income attributable to Taubman Centers, Inc. common shareowners | $ | 55,267 | $ | 107,358 | $ | 109,020 | |||||
Transfers (to) from the noncontrolling interest: | |||||||||||
Increase (decrease) in Taubman Centers, Inc.’s paid-in capital for the adjustments of noncontrolling interest (1) | (1,197 | ) | 1,959 | 69,521 | |||||||
Net transfers (to) from noncontrolling interests | (1,197 | ) | 1,959 | 69,521 | |||||||
Change from net income attributable to Taubman Centers, Inc. and transfers (to) from noncontrolling interests | $ | 54,070 | $ | 109,317 | $ | 178,541 | |||||
(1) | In 2017, 2016, and 2015, 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) and issuances of stock pursuant to the continuing offer (Note 15). In 2017 and 2016, adjustments of the noncontrolling interest were also made in connection with the accounting for the Former Asia President's redeemable ownership interest. In 2015, adjustments of the noncontrolling interest were also made as a result of share 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 | % | 1.60 | % | (1) | 3.24 | % | (1) | February 2019 | |||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 175,000 | 1.65 | % | 1.60 | % | (1) | 3.25 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (1) | 100 | % | 100,000 | 1.64 | % | 1.60 | % | (1) | 3.24 | % | (1) | February 2019 | ||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 100,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 100,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 50,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (2) | 100 | % | 50,000 | (2) | (2) | (2) | February 2022 | |||||||||||
Receive variable (LIBOR) /pay-fixed swap (3) | 100 | % | 12,000 | 2.09 | % | (3) | 1.40 | % | (3) | 3.49 | % | (3) | March 2024 | |||||
Unconsolidated Joint Ventures: | ||||||||||||||||||
Receive variable (LIBOR) /pay-fixed swap (4) | 50 | % | 130,201 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (4) | 50 | % | 130,201 | 2.40 | % | 1.70 | % | 4.10 | % | April 2018 | ||||||||
Receive variable (LIBOR) /pay-fixed swap (5) | 50.1 | % | 165,656 | 1.83 | % | 1.75 | % | 3.58 | % | December 2021 | ||||||||
Receive variable (LIBOR) USD/pay-fixed KRW cross-currency interest rate swap (6) | 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 unsecured 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, resulting in an effective rate in the range of 3.00% to 3.55% during the swap period. |
(2) | 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, beginning with the January 2018 effective date of the swaps. The Company began using these forward starting swaps to manage interest rate risk on the $300 million unsecured term loan in January 2018. Beginning in January 2018, the LIBOR rate was swapped to a fixed rate of 2.14%. The credit spread on this loan can vary within a range of 1.25% to 1.90%, depending on the Company's total leverage ratio at the measurement date, resulting in an effective rate in the range of 3.39% to 4.04% during the swap period. |
(3) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on the U.S. headquarters building. |
(4) | The notional amount on each of these swaps is equal to 50% of the outstanding principal balance of the loan on Fair Oaks. |
(5) | The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on International Plaza. |
(6) | The notional amount on this swap is equal to the outstanding principal balance of the U.S. dollar construction loan for Starfield Hanam. 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 KRW 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) | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||||||||||
Interest rate contracts – consolidated subsidiaries | $ | 3,994 | $ | 2,234 | $ | (1,730 | ) | Interest Expense | $ | (2,879 | ) | $ | (5,823 | ) | $ | (7,211 | ) | ||||||||
Interest rate contracts – UJVs | 2,898 | 2,478 | 71 | Equity in Income of UJVs | (2,406 | ) | (3,775 | ) | (4,489 | ) | |||||||||||||||
Cross-currency interest rate contract – UJV | 201 | (109 | ) | 12 | Equity in Income of UJVs | (2,279 | ) | 259 | (321 | ) | |||||||||||||||
Total derivatives in cash flow hedging relationships | $ | 7,093 | $ | 4,603 | $ | (1,647 | ) | $ | (7,564 | ) | $ | (9,339 | ) | $ | (12,021 | ) | |||||||||
Fair Value | |||||||||
Consolidated Balance Sheet Location | December 31 2017 | December 31 2016 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Asset derivative: | |||||||||
Interest rate contracts – consolidated subsidiaries | Deferred Charges and Other Assets | $ | 939 | ||||||
Interest rate contracts – UJV | Investment in UJVs | 760 | |||||||
Cross-currency interest rate contract - UJV | Investment in UJVs | $ | 381 | ||||||
Total assets designated as hedging instruments | $ | 1,699 | $ | 381 | |||||
Liability derivatives: | |||||||||
Interest rate contracts – consolidated subsidiaries | Accounts Payable and Accrued Liabilities | $ | (484 | ) | $ | (3,548 | ) | ||
Interest rate contracts – UJV | Investment in UJVs | (357 | ) | (2,496 | ) | ||||
Cross-currency interest rate contract - UJV | Investment in UJVs | (1,630 | ) | ||||||
Total liabilities designated as hedging instruments | $ | (2,471 | ) | $ | (6,044 | ) | |||
|
|||
2018 | $ | 332,593 | |
2019 | 318,103 | ||
2020 | 292,463 | ||
2021 | 254,603 | ||
2022 | 215,625 | ||
Thereafter | 664,727 | ||
2018 | $ | 15,484 | |
2019 | 15,427 | ||
2020 | 14,288 | ||
2021 | 12,740 | ||
2022 | 13,982 | ||
Thereafter | 737,210 | ||
|
|||
Fair Value Measurements as of December 31, 2017 Using | Fair Value Measurements as of December 31, 2016 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) | ||||||||||||
SPG common shares (Note 7) | $ | 101,348 | $ | 44,418 | ||||||||||||
Insurance deposit | 16,703 | 15,440 | ||||||||||||||
Derivative interest rate contracts (Note 10) | $ | 939 | ||||||||||||||
Total assets | $ | 118,051 | $ | 939 | $ | 59,858 | $ | — | ||||||||
Derivative interest rate contracts (Note 10) | $ | (484 | ) | $ | (3,548 | ) | ||||||||||
Total liabilities | $ | (484 | ) | $ | (3,548 | ) | ||||||||||
2017 | 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes payable | $ | 3,555,228 | $ | 3,503,071 | $ | 3,255,512 | $ | 3,184,036 | |||||||
|
|||
2017 | 2016 | 2015 | |||||||||
Recapitalization of The Mall of San Juan joint venture (1) | $ | 9,296 | |||||||||
Other non-cash additions to properties | $ | 79,023 | $ | 108,581 | 104,494 | ||||||
(1) | In April 2015, the Company acquired an additional 15% interest in The Mall of San Juan. The additional interest was acquired at cost. In connection with the acquisition, the noncontrolling owner used $9.3 million of previously contributed capital to fund its obligation to reimburse the Company for certain shared infrastructure costs, which was classified as a reduction of the noncontrolling interest and an offsetting reduction of properties. |
|
|||
Taubman Centers, Inc. AOCI | Noncontrolling Interests AOCI | ||||||||||||||||||||||||||||||
Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments | Fair value adjustment for marketable equity securities | Total | Cumulative translation adjustment | Unrealized gains (losses) on interest rate instruments | Fair value adjustment for marketable equity securities | Total | ||||||||||||||||||||||||
January 1, 2015 | $ | (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 | |||||||||||
Other comprehensive income (loss) before reclassifications | (12,251 | ) | (2,742 | ) | (302 | ) | (15,295 | ) | (5,088 | ) | (1,138 | ) | (126 | ) | (6,352 | ) | |||||||||||||||
Amounts reclassified from AOCI | 6,598 | 6,598 | 2,741 | 2,741 | |||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | (12,251 | ) | 3,856 | (302 | ) | (8,697 | ) | (5,088 | ) | 1,603 | (126 | ) | (3,611 | ) | |||||||||||||||||
Adjustments due to changes in ownership | (6 | ) | 7 | 1 | 6 | (7 | ) | (1 | ) | ||||||||||||||||||||||
December 31, 2016 | $ | (23,147 | ) | $ | (12,467 | ) | $ | (302 | ) | $ | (35,916 | ) | $ | (9,613 | ) | $ | 7,191 | $ | (126 | ) | $ | (2,548 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 23,615 | (333 | ) | 374 | 23,656 | 9,688 | (138 | ) | 154 | 9,704 | |||||||||||||||||||||
Amounts reclassified from AOCI | 5,364 | 5,364 | 2,200 | 2,200 | |||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 23,615 | 5,031 | 374 | 29,020 | 9,688 | 2,062 | 154 | 11,904 | |||||||||||||||||||||||
Adjustments due to changes in ownership | (84 | ) | 61 | (23 | ) | 84 | (61 | ) | 23 | ||||||||||||||||||||||
December 31, 2017 | $ | 384 | $ | (7,375 | ) | $ | 72 | $ | (6,919 | ) | $ | 159 | $ | 9,192 | $ | 28 | $ | 9,379 | |||||||||||||
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 | $ | 2,879 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 2,406 | Equity in Income in UJVs | ||||
Realized loss on cross-currency interest rate contract - UJV | 2,279 | Equity in Income in UJVs | ||||
Total reclassifications for the period | $ | 7,564 | ||||
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 | $ | 5,823 | Interest Expense | |||
Realized loss on interest rate contracts - UJVs | 3,775 | Equity in Income of UJVs | ||||
Realized gain on cross-currency interest rate contract - UJV | (259 | ) | Equity in Income in UJVs | |||
Total reclassifications for the period | $ | 9,339 | ||||
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 of UJVs | ||||
Realized loss on cross-currency interest rate contract - UJV | 321 | Equity in Income of UJVs | ||||
Total reclassifications for the period | $ | 12,021 | ||||
|
||||||
2017 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 149,083 | $ | 154,676 | $ | 153,222 | $ | 172,184 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 20,118 | 13,258 | 13,723 | 20,275 | ||||||||||||
Net income | 32,759 | 27,663 | 14,251 | 38,084 | ||||||||||||
Net income attributable to TCO common shareowners | 17,170 | 13,483 | 4,363 | 20,251 | ||||||||||||
Earnings per common share – basic | $ | 0.28 | $ | 0.22 | $ | 0.07 | $ | 0.33 | ||||||||
Earnings per common share – diluted | $ | 0.28 | $ | 0.22 | $ | 0.07 | $ | 0.33 | ||||||||
2016 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Revenues | $ | 139,455 | $ | 158,890 | $ | 148,021 | $ | 166,191 | ||||||||
Equity in income of Unconsolidated Joint Ventures | 18,478 | 15,910 | 15,391 | 19,922 | ||||||||||||
Net income | 44,329 | 57,744 | 35,184 | 50,894 | ||||||||||||
Net income attributable to TCO common shareowners | 24,613 | 34,718 | 18,752 | 29,275 | ||||||||||||
Earnings per common share – basic | $ | 0.41 | $ | 0.58 | $ | 0.31 | $ | 0.48 | ||||||||
Earnings per common share – diluted | $ | 0.41 | $ | 0.57 | $ | 0.31 | $ | 0.48 | ||||||||
|
|||
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, 2017 | |||||||||||||||||||
Allowance for doubtful receivables | $ | 4,311 | $ | 11,025 | $ | (5,099 | ) | $ | 10,237 | ||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Allowance for doubtful receivables | $ | 2,974 | $ | 4,047 | $ | (2,710 | ) | $ | 4,311 | ||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Allowance for doubtful receivables | $ | 2,927 | $ | 1,994 | $ | (1,947 | ) | $ | 2,974 | ||||||||||
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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 | $ | 200,902 | $ | 142,323 | $ | 343,225 | $ | 343,225 | $ | 190,119 | $ | 153,106 | 1982 | 40 years | |||||||||||||||||||||||||||
Cherry Creek Shopping Center Denver, CO | 99,087 | 219,260 | 318,347 | 318,347 | 166,241 | 152,106 | $ | 550,000 | 1990 / 1998 / 2015 | 40 years | |||||||||||||||||||||||||||||||
City Creek Shopping Center Salt Lake City, UT | 75,229 | 3,911 | 79,140 | 79,140 | 15,670 | 63,470 | 78,704 | 2012 | 30 years | ||||||||||||||||||||||||||||||||
Dolphin Mall, Miami, FL | $ | 34,881 | 222,301 | 125,286 | $ | 34,881 | 347,587 | 382,468 | 127,685 | 254,783 | 2001 / 2007 / 2015 | 50 years | |||||||||||||||||||||||||||||
The Gardens on El Paseo Palm Desert, CA | 23,500 | 131,858 | 7,643 | 23,500 | 139,501 | 163,001 | 24,611 | 138,390 | 1998 / 2010 | 2011 | 48 years | ||||||||||||||||||||||||||||||
Great Lakes Crossing Outlets Auburn Hills, MI | 15,506 | 188,773 | 51,907 | 15,506 | 240,680 | 256,186 | 130,722 | 125,464 | 203,553 | 1998 | 50 years | ||||||||||||||||||||||||||||||
The Mall at Green Hills Nashville, TN | 48,551 | 332,261 | 81,110 | 48,551 | 413,371 | 461,922 | 66,381 | 395,541 | 150,000 | 1955 / 2011 | 2011 | 40 years | |||||||||||||||||||||||||||||
International Market Place Honolulu, HI | 541,991 | 541,991 | 541,991 | 41,140 | 500,851 | 293,801 | 2016 | 50 years | |||||||||||||||||||||||||||||||||
The Mall of San Juan San Juan, PR | 17,617 | 523,479 | 17,617 | 523,479 | 541,096 | 61,104 | 479,992 | 2015 | 50 years | ||||||||||||||||||||||||||||||||
The Mall at Short Hills Short Hills, NJ | 25,114 | 167,595 | 171,233 | 25,114 | 338,828 | 363,942 | 195,805 | 168,137 | 1,000,000 | 1980 / 1994 / 1995 / 2011 | 40 years | ||||||||||||||||||||||||||||||
Taubman Prestige Outlets Chesterfield Chesterfield, MO | 16,079 | 108,934 | 2,841 | 16,079 | 111,775 | 127,854 | 23,678 | 104,176 | 2013 | 50 years | |||||||||||||||||||||||||||||||
Twelve Oaks Mall Novi, MI | 25,410 | 190,455 | 94,854 | 25,410 | 285,309 | 310,719 | 170,407 | 140,312 | 1977 / 1978 / 2007 / 2008 | 50 years | |||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||||||||
Office Facilities | 5,123 | 12,519 | 54,615 | 5,123 | 67,134 | 72,257 | 26,963 | 45,294 | 12,000 | 2014 | 35 years | ||||||||||||||||||||||||||||||
Peripheral Land | 17,220 | 17,220 | 17,220 | 17,220 | |||||||||||||||||||||||||||||||||||||
Construction in Process and Development - pre-construction costs | 8,058 | 14,537 | 366,618 | 8,058 | 381,155 | 389,213 | 389,213 | ||||||||||||||||||||||||||||||||||
Assets under CDD Obligations | 3,969 | 58,512 | 1,889 | 3,969 | 60,401 | 64,370 | 34,496 | 29,874 | |||||||||||||||||||||||||||||||||
Other | 28,094 | 28,094 | 28,094 | 1,894 | 26,200 | ||||||||||||||||||||||||||||||||||||
Total | $ | 241,028 | $ | 2,896,527 | $ | 1,323,490 | $ | 241,028 | $ | 4,220,017 | $ | 4,461,045 | (1) | $ | 1,276,916 | $ | 3,184,129 | ||||||||||||||||||||||||
Total Real Estate Assets | Accumulated Depreciation | ||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Balance, beginning of year | $ | 4,173,954 | $ | 3,713,215 | $ | 3,262,505 | Balance, beginning of year | $ | (1,147,390 | ) | $ | (1,052,027 | ) | $ | (970,045 | ) | |||||||||
New development and improvements | 320,977 | 528,276 | 466,307 | Depreciation | (161,091 | ) | (130,433 | ) | (98,846 | ) | |||||||||||||||
Disposals/Write-offs | (33,886 | ) | (67,537 | ) | (15,597 | ) | Disposals/Write-offs | 31,565 | 35,070 | 16,864 | |||||||||||||||
Balance, end of year | $ | 4,461,045 | $ | 4,173,954 | $ | 3,713,215 | Balance, end of year | $ | (1,276,916 | ) | $ | (1,147,390 | ) | $ | (1,052,027 | ) | |||||||||
(1) | The unaudited aggregate cost for federal income tax purposes as of December 31, 2017 was $4.787 billion. |
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