Segment Information

3 Months Ended

Mar. 31, 2015

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.

	March 31, 2015			December 31, 2014
	Identifiable Assets
Commercial Group	$	4,211,742		$	4,210,714
Residential Group	3,298,255			3,172,188
Arena	963,029			955,570
Land Development Group	259,399			250,833
Corporate Activities	62,966			225,635
	$	8,795,391		$	8,814,940
	Three Months Ended March 31,						Three Months Ended March 31,
	2015			2014			2015		2014
	Revenues						Operating Expenses
Commercial Group	$	128,545		$	130,085		$	73,090	$	81,548
Residential Group	69,660			65,669			43,239		45,669
Arena	28,820			35,357			19,958		23,476
Land Development Group	10,057			18,426			4,641		8,849
Corporate Activities	—			—			19,715		11,561
	$	237,082		$	249,537		$	160,643	$	171,103
	Depreciation and Amortization						Interest and Other Income
Commercial Group	$	32,851		$	30,259		$	2,633	$	1,784
Residential Group	19,376			15,396			2,996		6,445
Arena	8,790			8,532			—		—
Land Development Group	89			86			4,040		3,245
Corporate Activities	708			736			35		29
	$	61,814		$	55,009		$	9,704	$	11,503
	Interest Expense						Capital Expenditures
Commercial Group	$	30,322		$	34,566		$	28,882	$	30,997
Residential Group	4,465			9,185			43,440		53,803
Arena	10,108			9,557			2,652		5,937
Land Development Group	(465		)	(138		)	15		16
Corporate Activities	8,146			9,282			—		—
	$	52,576		$	62,452		$	74,989	$	90,753

The Company uses Funds From Operations (“FFO”) to report its operating results. FFO, a non-GAAP measure as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), 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); and iv) 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 March 31, 2015	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(67	)	$	5,637		$	(5,048	)	$	10,562	$	(65,293	)	$	(54,209	)
Depreciation and amortization – Real Estate Groups	45,684			24,000			5,055			41		—			74,780
FFO	$	45,617		$	29,637		$	7		$	10,603	$	(65,293	)	$	20,571
Three Months Ended March 31, 2014	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	12,330		$	32,167		$	(3,292	)	$	11,593	$	(37,278	)	$	15,520
Depreciation and amortization – Real Estate Groups	42,709			22,337			4,941			33		—			70,020
Net loss on disposition of partial interests in rental properties	467			—			—			—		—			467
Gain on disposition of unconsolidated entities	—			(24,796		)	—			—		—			(24,796		)
Discontinued operations:
Depreciation and amortization – Real Estate Groups	986			—			—			—		—			986
Gain on disposition of rental properties	(26,766		)	—			—			—		—			(26,766		)
Income tax expense on non-FFO:
Gain on disposition of rental properties	—			—			—			—		19,898			19,898
FFO	$	29,726		$	29,708		$	1,649		$	11,626	$	(17,380	)	$	55,329