Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Components of Accumulated Other Comprehensive Income (Loss)

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



	December 31,			December 31,			January 31,
	2014			2013			2013
	(in thousands)
Unrealized losses on securities	$	—		$	—		$	340
Unrealized (gains) losses on foreign currency translation	137			189			(69		)
Unrealized losses on interest rate contracts ⁽¹⁾	96,084			125,059			168,497
	96,221			125,248			168,768
Income tax benefit	(37,281		)	(48,517		)	(65,382		)
Noncontrolling interest	(94		)	(149		)	(183		)
Accumulated Other Comprehensive Loss	$	58,846		$	76,582		$	103,203

(1)

Included in the amounts as of December 31, 2014, December 31, 2013 and January 31, 2013 are $73,536, $97,360 and $126,506, respectively, of unrealized loss on an interest rate swap associated with New York Times office building 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% and expires in September 2017.

Schedule of Changes in Accumulated Other Comprehensive Income

The following table summarizes the changes, net of tax and noncontrolling interest, of accumulated OCI by component:



	Securities			Foreign Currency Translation			Interest Rate Contracts			Total
	(in thousands)
Balance, February 1, 2013	$	(208	)	$	42		$	(103,037	)	$	(103,203	)
OCI before reclassifications	430			(158		)	22,707			22,979
(Gain) loss reclassified from accumulated OCI	(222		)	—			3,864			3,642
Total other comprehensive income (loss)	208			(158		)	26,571			26,621
Balance, January 1, 2014	$	—		$	(116	)	$	(76,466	)	$	(76,582	)
OCI before reclassifications	—			32			13,898			13,930
Loss reclassified from accumulated OCI	—			—			3,806			3,806
Total other comprehensive income	—			32			17,704			17,736
Balance, December 31, 2014	$	—		$	(84	)	$	(58,762	)	$	(58,846	)

Reclassification out of Accumulated Other Comprehensive Income

The following table summarizes (gains) losses reclassified from accumulated OCI and their location on the Consolidated Statements of Operations:



Accumulated OCI Components	(Gain) Loss Reclassified from Accumulated OCI			Location on Consolidated Statements of Operations
	(in thousands)
Year Ended December 31, 2014
Interest rate contracts	2,523			Interest expense
Interest rate contracts	3,666			Discontinued operations
Interest rate contracts	59			Equity in earnings
	6,248			Total before income tax and noncontrolling interest
	(2,412		)	Income tax benefit
	(30		)	Noncontrolling interest
	$	3,806		Loss reclassified from accumulated OCI
11 Months Ended December 31, 2013
Interest rate contracts	6,258			Interest expense
Interest rate contracts	82			Equity in earnings
	6,340			Total before income tax and noncontrolling interest
	(2,460		)	Income tax benefit
	(16		)	Noncontrolling interest
	$	3,864		Loss reclassified from accumulated OCI

Schedule of Transition Period Comparative Data

The following table presents certain financial information for the 11 months ended December 31, 2013 and 2012, for comparability purposes.



	11 Months Ended December 31,
	2013			2012 (Unaudited)
	(in thousands)
Revenues	$	998,272		$	963,325
Expenses
Operating expenses	665,818			600,134
Depreciation and amortization	273,054			189,168
Write-offs of abandoned development projects and demolition costs	40,414			14,029
Impairment of real estate	421,361			30,660
Net loss on land held for divestiture activity	7,382			4,457
Total expenses	1,408,029			838,448
Operating income (loss)	(409,757		)	124,877

Interest and other income	52,283			42,245
Net gain on disposition of partial interest in rental properties	496,092			—
Net gain on change in control of interests	2,762			8,351
Interest expense	(285,042		)	(228,980		)
Amortization of mortgage procurement costs	(8,375		)	(9,987		)
Gain on extinguishment of debt	4,549			6,807
Loss before income taxes	(147,488		)	(56,687		)
Income tax expense (benefit)	12,266			(12,430		)

Earnings from unconsolidated entities, including impairment, gross of tax	107,825			84,543
Net gain (loss) on land held for divestiture activity, gross of tax	1,338			(42,606		)
	109,163			41,937
Loss from continuing operations	(50,591		)	(2,320		)
Discontinued operations, net of tax	(20,199		)	59,410
Net earnings (loss)	(70,790		)	57,090
Noncontrolling interests	65,483			(5,635		)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	(5,307		)	51,455
Preferred dividends and inducements of preferred stock conversions	(185		)	(32,129		)
Net earnings (loss) attributable to common shareholders	$	(5,492	)	$	19,326

Supplemental Non-Cash Disclosures

The following table represents a summary of non-cash transactions including, but not limited to, dispositions of operating properties whereby the nonrecourse mortgage debt is assumed by the buyer, exchange of Units or senior debt for Class A common stock, conversion of Series A preferred stock to Class A common stock, changes in consolidation methods due to the occurrence of triggering events including, but not limited to, disposition of a partial interest in rental properties or development projects or acquisition of a partner’s interest, change in construction payables, change in the fair market value of redeemable noncontrolling interest and capitalization of stock-based compensation granted to employees directly involved with the development and construction of real estate.



	Year Ended			11 Months Ended			Year Ended
	December 31, 2014			December 31, 2013			January 31, 2013
	(in thousands)
Investing activities
Decrease in projects under construction and development	$	313,480		$	87,857		$	33,662
(Increase) decrease in completed rental properties	(368,588		)	842,261			170,033
(Increase) decrease in restricted cash	(1,272		)	4,326			14,463
(Increase) decrease in investments in and advances to unconsolidated entities	(202,922		)	(32,078		)	21,826
Total effect on investing activities	$	(259,302	)	$	902,366		$	239,984
Financing activities
Increase in accounts payable, accrued expenses and other liabilities	$	5,552		$	—		$	—
Decrease in nonrecourse mortgage debt and notes payable	(153,345		)	(903,085		)	(215,008		)
Decrease in convertible senior debt	—			(218,675		)	(6,049		)
Decrease in restricted cash	—			—			8,208
Decrease in preferred stock	—			(5,489		)	(209,448		)
Increase in Class A common stock	225			4,680			4,617
Increase in additional paid-in capital	111,150			241,268			200,448
Increase in treasury stock	—			(12,868		)	—
Increase (decrease) in redeemable noncontrolling interest	28,390			(50,546		)	8,424
Increase in noncontrolling interest	44,876			31,702			558
Total effect on financing activities	$	36,848		$	(913,013	)	$	(208,250	)