Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The following tables summarize financial data for the Company's reportable operating segments. All amounts in the following tables are presented in thousands.

	June 30, 2014		December 31, 2013
	Identifiable Assets
Commercial Group	$	4,300,903	$	5,120,360
Residential Group	2,727,891		2,468,708
Arena	965,774		984,937
Land Development Group	285,587		260,070
Corporate Activities	271,366		117,950
	$	8,551,521	$	8,952,025
	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,						Six Months Ended June 30,
	2014		2013		2014		2013		2014			2013			2014			2013
	Revenues								Operating Expenses
Commercial Group	$	123,791	$	177,921	$	253,876	$	350,802	$	73,157		$	97,746		$	154,705		$	197,327
Residential Group	61,553		63,950		127,222		127,281		37,673			47,497			83,342			95,024
Arena	24,572		26,853		59,929		50,993		14,818			21,898			38,294			40,310
Land Development Group	19,721		9,191		38,147		18,805		10,100			6,387			18,949			14,075
Corporate Activities	—		—		—		—		10,059			13,478			21,620			24,537
	$	229,637	$	277,915	$	479,174	$	547,881	$	145,807		$	187,006		$	316,910		$	371,273
	Depreciation and Amortization								Interest Expense
Commercial Group	$	32,193	$	58,102	$	62,452	$	99,787	$	32,279		$	49,216		$	66,845		$	99,428
Residential Group	17,656		13,490		33,052		30,021		5,817			10,109			15,002			16,716
Arena	8,674		8,001		17,206		16,374		9,649			9,393			19,206			18,275
Land Development Group	95		103		181		429		(147		)	(167		)	(285		)	(438		)
Corporate Activities	700		756		1,436		1,645		9,555			14,545			18,837			30,598
	$	59,318	$	80,452	$	114,327	$	148,256	$	57,153		$	83,096		$	119,605		$	164,579
	Interest and Other Income								Capital Expenditures
Commercial Group	$	2,222	$	2,146	$	4,006	$	4,070	$	49,381		$	49,752		$	80,378		$	108,624
Residential Group	6,599		6,307		13,044		12,261		71,058			57,276			144,849			97,700
Arena	—		—		—		—		615			17,893			6,552			32,913
Land Development Group	3,462		3,210		6,707		5,932		—			122			16			829
Corporate Activities	92		112		121		162		15			229			15			452
	$	12,375	$	11,775	$	23,878	$	22,425	$	121,069		$	125,272		$	231,810		$	240,518

The Company uses Funds From Operations (“FFO”) to report its operating results. FFO is a non-GAAP measure as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and is a measure of performance used by publicly traded Real Estate Investment Trusts ("REITs"). Although the Company is not a REIT, management believes it is important to publish this measure to allow for easier comparison of its performance to its peers. FFO is defined by NAREIT as net earnings excluding the following items at the Company’s proportional share: i) gain (loss) on disposition of rental properties, divisions and other investments (net of tax); ii) non-cash charges for real estate depreciation and amortization; iii) impairment of depreciable real estate (net of tax); iv) extraordinary items (net of tax); and v) cumulative or retrospective effect of change in accounting principle (net of tax).

The Company believes that, although its business has many facets such as development, acquisitions, disposals, and property management, the core of its business is the recurring operations of its portfolio of real estate assets. The Company’s Chief Executive Officer, the chief operating decision maker, uses FFO, as presented, to assess performance of the Company's real estate assets by reportable operating segment because it provides information on the financial performance of the core real estate portfolio operations. FFO measures the profitability of a real estate segment’s operations of collecting rent, paying operating expenses and servicing its debt.

The reconciliations of net earnings (loss) to FFO by segment are shown in the following tables. All amounts are presented in thousands.

Three Months Ended June 30, 2014	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(135,934	)	$	10,934		$	(4,511	)	$	11,493	$	25,026		$	(92,992	)
Depreciation and amortization – Real Estate Groups	45,764			24,855			5,000			42		—			75,661
Gain on disposition of unconsolidated entities	(16,090		)	—			—			—		—			(16,090		)
Impairment of consolidated depreciable real estate	129,059			—			—			—		—			129,059
Discontinued operations:
Gain on disposition of rental properties	(1,276		)	—			—			—		—			(1,276		)
Income tax expense (benefit) on non-FFO:
Gain on disposition of rental properties	—			—			—			—		8,820			8,820
Impairment of depreciable real estate	—			—			—			—		(50,053		)	(50,053		)
FFO	$	21,523		$	35,789		$	489		$	11,535	$	(16,207	)	$	53,129
Three Months Ended June 30, 2013	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(22,300	)	$	5,002		$	(6,757	)	$	7,350	$	(18,235	)	$	(34,940	)
Depreciation and amortization – Real Estate Groups	66,914			21,495			4,657			149		—			93,215
Loss on disposition of unconsolidated entities	1,510			—			—			—		—			1,510
Impairment of consolidated depreciable real estate	—			1,175			—			—		—			1,175
Discontinued operations:
Depreciation and amortization – Real Estate Groups	4,175			32			—			—		—			4,207
Income tax benefit on non-FFO:
Gain on disposition of rental properties	—			—			—			—		(649		)	(649		)
Impairment of depreciable real estate	—			—			—			—		(456		)	(456		)
FFO	$	50,299		$	27,704		$	(2,100	)	$	7,499	$	(19,340	)	$	64,062
Six Months Ended June 30, 2014	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(123,604	)	$	43,101		$	(7,803	)	$	23,086	$	(12,252	)	$	(77,472	)
Depreciation and amortization – Real Estate Groups	88,473			47,192			9,941			75		—			145,681
Net loss on disposition of partial interests in rental properties	467			—			—			—		—			467
Gain on disposition of unconsolidated entities	(16,090		)	(24,796		)	—			—		—			(40,886		)
Impairment of consolidated depreciable real estate	129,059			—			—			—		—			129,059
Discontinued operations:
Depreciation and amortization – Real Estate Groups	986			—			—			—		—			986
Gain on disposition of rental properties	(28,042		)	—			—			—		—			(28,042		)
Income tax expense (benefit) on non-FFO:
Gain on disposition of rental properties	—			—			—			—		28,718			28,718
Impairment of depreciable real estate	—			—			—			—		(50,053		)	(50,053		)
FFO	$	51,249		$	65,497		$	2,138		$	23,161	$	(33,587	)	$	108,458
Six Months Ended June 30, 2013	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to common shareholders	$	(46,258	)	$	21,198		$	(13,043	)	$	28,742	$	(45,355	)	$	(54,716	)
Preferred dividends	—			—			—			—		185			185
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(46,258	)	$	21,198		$	(13,043	)	$	28,742	$	(45,170	)	$	(54,531	)
Depreciation and amortization – Real Estate Groups	117,608			45,984			9,549			381		—			173,522
Loss on disposition of unconsolidated entities	1,510			—			—			—		—			1,510
Impairment of consolidated depreciable real estate	—			1,175			—			—		—			1,175
Discontinued operations:
Depreciation and amortization – Real Estate Groups	8,333			171			—			—		—			8,504
(Gain) loss on disposition of rental properties	189			(15,825		)	—			—		—			(15,636		)
Income tax expense (benefit) on non-FFO:
Gain on disposition of rental properties	—			—			—			—		5,472			5,472
Impairment of depreciable real estate	—			—			—			—		(456		)	(456		)
FFO	$	81,382		$	52,703		$	(3,494	)	$	29,123	$	(40,154	)	$	119,560