Accounting Policies (Tables)

6 Months Ended

Jul. 31, 2012

Revision of prior period financial statements

The following are selected financial statement line items illustrating the effect of the error correction thereon:



	As Reported ⁽¹⁾			Adjustment			As Revised
Consolidated Statement of Operations for the three months ended July 31, 2011	(in thousands, except per share data)
Operating expenses	$	154,756		$	(2,000	)	$	152,756
Deferred income tax expense (benefit)	(4,537		)	776			(3,761		)
Earnings (loss) from continuing operations	(10,521		)	1,224			(9,297		)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	4,284			1,224			5,508
Basic earnings (loss) per common share from continuing operations attributable to Forest City Enterprises, Inc. common shareholders	(0.09		)	0.01			(0.08		)
Diluted earnings (loss) per common share from continuing operations attributable to Forest City Enterprises, Inc. common shareholders	(0.09		)	0.01			(0.08		)
Basic net earnings per common share attributable to Forest City Enterprises, Inc. common shareholders	0.02			0.01			0.03
Diluted net earnings per common share attributable to Forest City Enterprises, Inc. common shareholders	0.02			0.01			0.03


(1)	Adjusted to reflect the impact of discontinued operations (see Note M).

The components of accumulated other comprehensive income (loss) (accumulated OCI)

The following table summarizes the components of accumulated other comprehensive income (loss) (“accumulated OCI”):



	July 31, 2012			January 31, 2012
	(in thousands)
Unrealized losses on securities	$	428		$	445
Unrealized losses on foreign currency translation	—			1,558
Unrealized losses on interest rate contracts ⁽¹⁾	191,110			194,928
	191,538			196,931
Noncontrolling interest and income tax benefit	(74,409		)	(76,471		)
Accumulated Other Comprehensive Loss	$	117,129		$	120,460

(1)

Included in the amounts as of July 31 and January 31, 2012 are $141,840 and $143,303, respectively, of unrealized losses on an interest rate swap associated with New York Times, an office building in Manhattan, New York, on its nonrecourse mortgage debt with a notional amount of $640,000. This swap effectively fixes the mortgage at an all-in lender interest rate of 6.40% (5.50% swap rate plus 0.90% lender spread) and expires in September 2017.

Schedule of summarized financial information of equity method investments

Summarized financial information for BBH is as follows:



	Six Months Ended July 31,
	2012			2011
	(in thousands)
Operations:
Revenues	$	57,470		$	49,132
Operating expenses	(81,151		)	(71,647		)
Interest expense, net	(7,228		)	(6,764		)
Depreciation and amortization	(4,938		)	(4,599		)
Net loss (pre-tax)	$	(35,847	)	$	(33,878	)
Company's portion of net loss (pre-tax)	$	(15,230	)	$	(3,686	)

- Definition

Tabular disclosure of equity method investments in common stock. The disclosure may include: (a) the name of each investee or group of investments for which combined disclosure is appropriate, (2) the percentage ownership of common stock, (3) the difference, if any, between the carrying amount of an investment and the value of the underlying equity in the net assets and the accounting treatment of difference, if any, and (4) the aggregate value of each identified investment based on its quoted market price, if available.

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- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

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