Discontinued Operations and Gain on Disposition of Rental Properties (Tables)

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Summary of Rental Properties Included in Discontinued Operations

The following table summarizes the rental properties included in discontinued operations:



Property	Location	Square Feet/ Number of Units	Period Disposed	Three Months Ended 9/30/14	Nine Months Ended 9/30/14	Three Months Ended 9/30/13	Nine Months Ended 9/30/13
Commercial Group:
Promenade Bolingbrook	Bolingbrook, Illinois	771,000 square feet	Q2-2014 ⁽¹⁾	—	Yes	Yes	Yes
Quartermaster Plaza	Philadelphia, Pennsylvania	456,000 square feet	Q1-2014	—	Yes	Yes	Yes
Mesa del Sol - 5600 University SE	Albuquerque, New Mexico	87,000 square feet	Q1-2014	—	Yes	Yes	Yes
Orchard Town Center	Westminster, Colorado	603,000 square feet	Q4-2013	—	—	Yes	Yes
Colorado Studios	Denver, Colorado	75,000 square feet	Q3-2013	—	—	Yes	Yes
Higbee Building	Cleveland, Ohio	815,000 square feet	Q3-2013	—	—	Yes	Yes
Sheraton Station Square	Pittsburgh, Pennsylvania	399 rooms	Q3-2013	—	—	Yes	Yes
Two triple net lease properties	Various	138,000 square feet	Various⁽²⁾	—	—	Yes	Yes
Residential Group:
Millender Center	Detroit, Michigan	339 units	Q1-2013	—	—	—	Yes


(1)	Classified as held for sale as of March 31, 2014.


(2)	Includes one triple net lease property disposed of during Q4-2013 and one triple net lease property disposed of during Q1-2013.

Summary of Operating Results of Discontinued Operations

The following table summarizes the operating results related to discontinued operations:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
	(in thousands)
Revenues	$	—	$	11,997		$	7,034		$	58,423
Expenses
Operating expenses	—		6,593			3,026			32,689
Depreciation and amortization	—		3,048			987			11,523
Impairment of real estate	—		6,870			—			6,870
	—		16,511			4,013			51,082

Interest expense	—		(3,436		)	(5,538		)	(11,266		)
Amortization of mortgage procurement costs	—		(122		)	(41		)	(483		)
Loss on extinguishment of debt	—		—			(448		)	(40		)
Interest and other income	—		37			—			263
Gain on disposition of rental properties	—		22,460			28,100			43,931
Earnings before income taxes	—		14,425			25,094			39,746
Income tax expense	—		8,754			12,082			16,517
Earnings from discontinued operations	—		5,671			13,012			23,229
Noncontrolling interest
Gain on disposition of rental properties	—		125			58			5,960
Operating earnings (loss) from rental properties	—		10			(8		)	74
	—		135			50			6,034
Earnings from discontinued operations attributable to Forest City Enterprises, Inc.	$	—	$	5,536		$	12,962		$	17,195

Pre-tax Gain on Disposition of Rental Properties

The following table summarizes the pre-tax gain on disposition of rental properties:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands)
Quartermaster Plaza (Specialty Retail Center)	$	—	$	—	$	26,373	$	—
Promenade Bolingbrook (Regional Mall)	—		—		1,276		—
Office Buildings:
Mesa del Sol - 5600 University SE	—		—		451		—
Higbee Building	—		2,922		—		2,922
Colorado Studios	—		1,239		—		1,239
Sheraton Station Square (Hotel)	—		18,096		—		18,096
Millender Center (Apartment Community)	—		—		—		21,660
Other	—		203		—		14
	$	—	$	22,460	$	28,100	$	43,931

Gain on Disposition of Unconsolidated Entities

Gains and losses on the disposition of investments accounted for on the equity method are included in equity in earnings and are summarized in the following table:



		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014			2013
		(in thousands)
Mall at Stonecrest (Regional Mall)	Atlanta, Georgia	$	7,952	$	—	$	7,952		$	—
Liberty Center (Office Building)	Pittsburgh, Pennsylvania	1,237		1,540		1,237			1,540
Westin Convention Center (Hotel)	Pittsburgh, Pennsylvania	—		32,741		—			32,741
Specialty Retail Centers:
Golden Gate	Mayfield Heights, Ohio	—		—		16,440			—
Plaza at Robinson Town Center	Pittsburgh, Pennsylvania	—		—		—			(1,510		)
Apartment Communities:
Westwood Reserve	Tampa, Florida	—		—		8,904			—
Legacy Crossroads	Cary, North Carolina	—		—		6,216			—
Colonial Grand	Tampa, Florida	—		—		4,904			—
Legacy Arboretum	Charlotte, North Carolina	—		—		3,257			—
Barrington Place	Raleigh, North Carolina	—		—		1,515			—
Other		—		—		(350		)	—
		$	9,189	$	34,281	$	50,075		$	32,771

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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