Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

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

	December 31, 2014			December 31, 2013
	Identifiable Assets
Commercial Group	$	4,210,714		$	5,120,360
Residential Group	3,172,188			2,468,708
Arena	955,570			984,937
Land Development Group	250,833			260,070
Corporate Activities	225,635			117,950
	$	8,814,940		$	8,952,025
	Year Ended			11 Months Ended			Year Ended			Year Ended		11 Months Ended		Year Ended
	December 31, 2014			December 31, 2013			January 31, 2013			December 31, 2014		December 31, 2013		January 31, 2013
	Revenues									Operating Expenses
Commercial Group	$	517,487		$	593,714		$	680,533		$	300,123	$	334,996	$	327,263
Residential Group	256,009			249,677			264,547			174,472		179,405		184,289
Arena	116,695			104,532			48,353			76,096		72,659		49,175
Land Development Group	75,861			50,349			54,634			32,486		33,737		48,055
Corporate Activities	—			—			—			51,116		45,021		52,450
	$	966,052		$	998,272		$	1,048,067		$	634,293	$	665,818	$	661,232
	Depreciation and Amortization									Interest and Other Income
Commercial Group	$	124,821		$	181,697		$	148,983		$	7,929	$	18,078	$	14,366
Residential Group	68,089			55,031			51,885			21,081		21,742		21,149
Arena	34,299			33,231			8,888			—		—		—
Land Development Group	359			364			840			13,597		12,218		9,866
Corporate Activities	2,898			2,731			1,658			173		245		164
	$	230,466		$	273,054		$	212,254		$	42,780	$	52,283	$	45,545
	Interest Expense									Capital Expenditures
Commercial Group	$	129,515		$	168,056		$	169,590		$	119,343	$	171,002	$	327,867
Residential Group	28,108			32,409			18,680			289,502		245,647		149,160
Arena	40,229			34,220			(122		)	10,972		43,928		325,744
Land Development Group	(1,090		)	(320		)	3,801			37		819		190
Corporate Activities	37,643			50,677			61,375			15		232		904
	$	234,405		$	285,042		$	253,324		$	419,869	$	461,628	$	803,865

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 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.

Year Ended December 31, 2014	Commercial Group			Residential Group			Arena			Land Development Group			Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(67,682	)	$	115,833		$	(17,555	)	$	51,360		$	(89,551	)	$	(7,595	)
Depreciation and amortization – Real Estate Groups	178,169			97,173			19,895			159			—			295,396
Net gain on disposition of full or partial interest in rental properties	(7,241		)	(23,013		)	—			—			—			(30,254		)
Gain on disposition of unconsolidated entities	(25,279		)	(27,142		)	—			—			—			(52,421		)
Impairment of consolidated depreciable real estate	129,059			146,039			—			—			—			275,098
Impairment of unconsolidated depreciable real estate	3,124			—			—			—			—			3,124
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	—			—			—			—			44,988			44,988
Impairment of depreciable real estate	—			—			—			—			(106,691		)	(106,691		)
FFO	$	183,094		$	308,890		$	2,340		$	51,519		$	(151,254	)	$	394,589
11 Months Ended December 31, 2013
Net earnings (loss) attributable to common shareholders	$	84,294		$	31,220		$	(19,514	)	$	18,915		$	(120,407	)	$	(5,492	)
Preferred dividends	—			—			—			—			185			185
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	84,294		$	31,220		$	(19,514	)	$	18,915		$	(120,222	)	$	(5,307	)
Depreciation and amortization – Real Estate Groups	220,135			83,154			19,119			258			—			322,666
Net gain on disposition of partial interest in rental properties	(496,092		)	—			—			—			—			(496,092		)
Gain on disposition of unconsolidated entities	(68,430		)	—			—			—			—			(68,430		)
Impairment of consolidated depreciable real estate	17,474			1,185			—			—			—			18,659
Discontinued operations:
Depreciation and amortization – Real Estate Groups	12,766			165			—			—			—			12,931
Gain on disposition of rental properties	(19,843		)	(16,028		)	—			—			—			(35,871		)
Impairment of consolidated depreciable real estate	76,713			—			—			—			—			76,713
Income tax expense (benefit) on non-FFO:
Gain on disposition of rental properties	—			—			—			—			233,980			233,980
Impairment of depreciable real estate	—			—			—			—			(36,988		)	(36,988		)
FFO	$	(172,983	)	$	99,696		$	(395	)	$	19,173		$	76,770		$	22,261
Year Ended January 31, 2013
Net earnings (loss) attributable to common shareholders	$	82,022		$	132,141		$	(497	)	$	(23,833	)	$	(185,537	)	$	4,296
Preferred dividends and inducements of preferred stock conversions	—			—			—			—			32,129			32,129
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	82,022		$	132,141		$	(497	)	$	(23,833	)	$	(153,408	)	$	36,425
Depreciation and amortization – Real Estate Groups	186,115			85,977			5,213			661			—			277,966
Gain on disposition of unconsolidated entities	(16,107		)	(34,959		)	—			—			—			(51,066		)
Impairment of consolidated depreciable real estate	30,660			—			—			—			—			30,660
Impairment of unconsolidated depreciable real estate	—			—			—			390			—			390
Discontinued operations:
Depreciation and amortization – Real Estate Groups	20,357			3,114			—			—			—			23,471
Gain on disposition of rental properties	(40,645		)	(59,290		)	—			—			—			(99,935		)
Impairment of consolidated depreciable real estate	4,254			—			—			—			—			4,254
Income tax expense (benefit) on non-FFO:
Gain on disposition of rental properties	—			—			—			—			58,935			58,935
Impairment of depreciable real estate	—			—			—			—			(13,692		)	(13,692		)
FFO	$	266,656		$	126,983		$	4,716		$	(22,782	)	$	(108,165	)	$	267,408