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Segment Reporting
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
We have identified two reportable segments: (1) Real Estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of our real estate assets. Our observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and different marketing strategies. We account for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. We include our construction operation in "Other" and it includes all activities related to providing construction services to tenants and to other entities within and outside our company.

The following tables provides components of segment profit for each segment for the three and six months ended June 30, 2014 and 2013, as reviewed by management (amounts in thousands):
 
Three Months Ended June 30, 2014
 
Real Estate
 
Observatory
 
Other
 
Totals
Revenues from external customers
$
110,838

 
$
30,389

 
$
12,966

 
$
154,193

Intersegment revenues
16,298

(1) 
—

 
901

 
17,199

Total revenues
127,136

 
30,389

 
13,867

 
171,392

All operating expenses
(63,380
)
 
(25,799
)
 
(13,591
)
 
(102,770
)
Interest expense
(14,629
)
 
—

 
—

 
(14,629
)
Depreciation and amortization expense
(28,556
)
 
(77
)
 
(4
)
 
(28,637
)
Segment profit (loss)
$
20,571

 
$
4,513

 
$
272

 
$
25,356

Segment assets
$
2,221,530

 
$
243,189

 
$
11,906

 
$
2,476,625

Expenditures for segment assets
$
37,735

 
$
—

 
$
—

 
$
37,735

___________
(1)
The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building.

 
Three Months Ended June 30, 2013
 
Real Estate
 
Other
 
Totals
Revenues from external customers
$
53,303

 
$
6,218

 
$
59,521

Intersegment revenues
19

 
2,034

 
2,053

Total revenues
53,322

 
8,252

 
61,574

All operating expenses, excluding noncash items
(20,141
)
 
(8,269
)
 
(28,410
)
Interest expense
(14,715
)
 
—

 
(14,715
)
Depreciation and amortization expense
(13,118
)
 
7

 
(13,111
)
Equity in net income of non-controlled entities
6,079

 
—

 
6,079

Segment profit
$
11,427

 
$
(10
)
 
$
11,417

Segment assets
$
999,902

 
$
11,356

 
$
1,011,258

Investment in non-controlled entities
$
82,515

 
$
—

 
$
82,515

Expenditures for segment assets
$
19,968

 
$
—

 
$
19,968


 
Six Months Ended June 30, 2014
 
Real Estate
 
Observatory
 
Other
 
Totals
Revenues from external customers
$
218,865

 
$
47,690

 
$
27,944

 
$
294,499

Intersegment revenues
31,566

(1) 
—

 
1,863

 
33,429

Total revenues
250,431

 
47,690

 
29,807

 
327,928

All operating expenses
(128,942
)
 
(45,845
)
 
(28,706
)
 
(203,493
)
Interest expense
(28,966
)
 
—

 
—

 
(28,966
)
Depreciation and amortization expense
(58,607
)
 
(138
)
 
(7
)
 
(58,752
)
Segment profit (loss)
$
33,916

 
$
1,707

 
$
1,094

 
$
36,717

Segment assets
$
2,221,530

 
$
243,189

 
$
11,906

 
$
2,476,625

Expenditures for segment assets
$
54,978

 
$
—

 
$
—

 
$
54,978

___________
(1)
The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building.
 
Six Months Ended June 30, 2013
 
Real Estate
 
Other
 
Totals
Revenues from external customers
$
109,478

 
$
12,400

 
$
121,878

Intersegment revenues
37

 
4,807

 
4,844

Total revenues
109,515

 
17,207

 
126,722

All operating expenses, excluding noncash items
(41,745
)
 
(17,028
)
 
(58,773
)
Interest expense
(28,911
)
 
—

 
(28,911
)
Depreciation and amortization expense
(25,267
)
 
—

 
(25,267
)
Equity in net income of non-controlled entities
7,898

 
—

 
7,898

Segment profit
$
21,490

 
$
179

 
$
21,669

Segment assets
$
999,902

 
$
11,356

 
$
1,011,258

Investment in non-controlled entities
$
82,515

 
$
—

 
$
82,515

Expenditures for segment assets
$
33,011

 
$
—

 
$
33,011


The following table provides a reconciliation of segment data to the consolidated financial statements:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
  
2014
 
2013
 
2014
 
2013
 
Company
 
Predecessor
 
Company
 
Predecessor
Revenue reconciliation
 
 
 
 
 
 
 
Total revenues for reportable segments
$
171,392

 
$
61,574

 
327,928

 
$
126,722

Other revenues
975

 
48

 
975

 
111

Elimination for intersegment revenues
(17,199
)
 
(2,053
)
 
(33,429
)
 
(4,844
)
Total consolidated revenues
$
155,168

 
$
59,569

 
$
295,474

 
$
121,989

Profit or loss
 
 
 
 
 
 
 
Total profit or loss for reportable segments
$
25,356

 
$
11,417

 
36,717

 
$
21,669

Other profit or loss items
975

 
(6,849
)
 
975

 
(13,174
)
Formation transaction expenses
—

 
(1,305
)
 
—

 
(3,000
)
Private perpetual preferred exchange offering costs
(950
)
 
 
 
(950
)
 
 
Elimination for capitalized intersegment profit or loss
(100
)
 
(240
)
 
(230
)
 
(605
)
Unallocated amounts:
 
 
 
 
 
 
 
Investment income
—

 
48

 
—

 
111

Net income
25,281

 
3,071

 
36,512

 
$
5,001

Net income attributable to non-controlling interests
(15,447
)
 
 
 
(22,309
)
 
 
Net income attributable to Empire State Realty Trust, Inc.
$
9,834

 
 
 
$
14,203