Segment Reporting

3 Months Ended

Mar. 31, 2015

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 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 months ended March 31, 2015 and 2014, as reviewed by management (amounts in thousands):

	Three Months Ended March 31, 2015
	Real Estate			Observatory			Other			Intersegment Elimination			Total
Revenues:
Rental revenue	$	110,058		$	—		$	—		$	—		$	110,058
Intercompany rental revenue	11,664			—			—			(11,664		)	—
Tenant expense reimbursement	18,200			—			—			—			18,200
Observatory revenue	—			18,223			—			—			18,223
Construction revenue	—			—			3,922			(2,315		)	1,607
Third-party management and other fees	446			—			—			—			446
Other revenue and fees	3,348			—			—			—			3,348
Total revenues	143,716			18,223			3,922			(13,979		)	151,882
Operating expenses:
Property operating expenses	42,452			—			—			—			42,452
Intercompany rent expense	—			11,664			—			(11,664		)	—
Ground rent expense	2,331			—			—			—			2,331
Marketing, general, and administrative expenses	9,100			—			—			—			9,100
Observatory expenses	—			6,977			—			—			6,977
Construction expenses	—			—			4,973			(2,104		)	2,869
Real estate taxes	22,978			—			—			—			22,978
Depreciation and amortization	41,233			79			106			—			41,418
Total operating expenses	118,094			18,720			5,079			(13,768		)	128,125
Total operating income (loss)	25,622			(497		)	(1,157		)	(211		)	23,757
Interest expense	(16,047		)	—			—			—			(16,047		)
Income (loss) before income taxes	9,575			(497		)	(1,157		)	(211		)	7,710
Income tax (expense) benefit	(351		)	256			273			—			178
Net income (loss)	$	9,224		$	(241	)	$	(884	)	$	(211	)	$	7,888
Segment assets	$	3,017,669		$	251,662		$	3,657		$	—		$	3,272,988
Expenditures for segment assets	$	37,393		$	—		$	—		$	—		$	37,393

	Three Months Ended March 31, 2014
	Real Estate			Observatory			Other			Intersegment Elimination			Total
Revenues:
Rental revenue	$	90,204		$	—		$	—		$	—		$	90,204
Intercompany rental revenue	15,268			—			—			(15,268		)	—
Tenant expense reimbursement	15,153			—			—			—			15,153
Observatory revenue	—			17,301			—			—			17,301
Construction revenue	—			—			15,925			(962		)	14,963
Third-party management and other fees	611			—			—			—			611
Other revenue and fees	2,074			—			—			—			2,074
Total revenues	123,310			17,301			15,925			(16,230		)	140,306
Operating expenses:
Property operating expenses	35,860			—			—			—			35,860
Intercompany rent expense	—			15,268			—			(15,268		)	—
Ground rent expense	451			—			—			—			451
Marketing, general, and administrative expenses	10,155			—			—			—			10,155
Observatory expenses	—			6,981			—			—			6,981
Construction expenses	—			—			15,115			(832		)	14,283
Real estate taxes	18,373			—			—			—			18,373
Depreciation and amortization	30,051			61			3			—			30,115
Total operating expenses	94,890			22,310			15,118			(16,100		)	116,218
Total operating income (loss)	28,420			(5,009		)	807			(130		)	24,088
Interest expense	(14,337		)	—			—			—			(14,337		)
Income (loss) before income taxes	14,083			(5,009		)	807			(130		)	9,751
Income tax (expense) benefit	(300		)	2,203			(423		)	—			1,480
Net income (loss)	$	13,783		$	(2,806	)	$	384		$	(130	)	$	11,231
Segment assets	$	2,191,390		$	245,999		$	13,027		$	—		$	2,450,416
Expenditures for segment assets	$	17,243		$	—		$	—		$	—		$	17,243