Segment Reporting

3 Months Ended

Mar. 31, 2022

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 traditional real estate assets. Our observatory segment includes the operation of 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 rents as if the sales or rents were to third parties, that is, at current market prices.

The following tables provide components of segment net income (loss) for each segment for the three months ended March 31, 2022 and 2021 (amounts in thousands):

	Three Months Ended March 31, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	147,514	$	—	$	—	$	147,514
Intercompany rental revenue	10,620		—		(10,620)		—
Observatory revenue	—		13,241		—		13,241
Lease termination fees	1,173		—		—		1,173
Third-party management and other fees	310		—		—		310
Other revenue and fees	1,796		—		—		1,796
Total revenues	161,413		13,241		(10,620)		164,034
Operating expenses:
Property operating expenses	38,644		—		—		38,644
Intercompany rent expense	—		10,620		(10,620)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	13,686		—		—		13,686
Observatory expenses	—		6,215		—		6,215
Real estate taxes	30,004		—		—		30,004
Depreciation and amortization	67,071		35		—		67,106
Total operating expenses	151,736		16,870		(10,620)		157,986
Total operating income	9,677		(3,629)		—		6,048
Other income (expense):
Interest income	149		—		—		149
Interest expense	(25,014)		—		—		(25,014)
Loss before income taxes	(15,188)		(3,629)		—		(18,817)
Income tax (expense) benefit	(144)		1,740		—		1,596
Net loss	$	(15,332)	$	(1,889)	$	—	$	(17,221)
Segment assets	$	3,998,791	$	244,539	$	—	$	4,243,330
Expenditures for segment assets	$	38,884	$	291	$	—	$	39,175

	Three Months Ended March 31, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	140,231	$	—	$	—	$	140,231
Intercompany rental revenue	4,932		—		(4,932)		—
Observatory revenue	—		2,603		—		2,603
Lease termination fees	1,289		—		—		1,289
Third-party management and other fees	276		—		—		276
Other revenue and fees	905		—		—		905
Total revenues	147,633		2,603		(4,932)		145,304
Operating expenses:
Property operating expenses	30,279		—		—		30,279
Intercompany rent expense	—		4,932		(4,932)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	13,853		—		—		13,853
Observatory expenses	—		4,588		—		4,588
Real estate taxes	31,447		—		—		31,447
Depreciation and amortization	44,419		38		—		44,457
Total operating expenses	122,329		9,558		(4,932)		126,955
Total operating income	25,304		(6,955)		—		18,349
Other income (expense):
Interest income	120		2		—		122
Interest expense	(23,554)		—		—		(23,554)
Loss on early extinguishment of debt	(214)		—		—		(214)
Income (loss) before income taxes	1,656		(6,953)		—		(5,297)
Income tax (expense) benefit	(283)		2,389		—		2,106
Net income (loss)	$	1,373	$	(4,564)	$	—	$	(3,191)
Segment assets	$	3,910,152	$	241,371	$	—	$	4,151,523
Expenditures for segment assets	$	23,331	$	4	$	—	$	23,335