Segment Information

9 Months Ended

Sep. 30, 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.

	September 30, 2015			December 31, 2014
	Identifiable Assets
Commercial Group	$	5,015,253		$	4,210,714
Residential Group	3,583,466			3,172,188
Arena	955,409			955,570
Land Development Group	275,502			250,833
Corporate Activities	130,611			225,635
	$	9,960,241		$	8,814,940
	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,				Nine Months Ended September 30,
	2015			2014			2015			2014			2015		2014		2015		2014
	Revenues												Operating Expenses
Commercial Group	$	159,706		$	129,345		$	422,858		$	383,221		$	79,720	$	70,224	$	226,929	$	224,929
Residential Group	79,703			63,303			230,223			190,525			44,715		43,704		134,117		127,046
Arena	24,637			25,039			80,497			84,968			17,199		17,105		55,019		55,399
Land Development Group	25,011			17,056			52,320			55,203			11,869		5,358		23,234		24,307
Corporate Activities	—			—			—			—			19,706		13,763		61,393		35,383
	$	289,057		$	234,743		$	785,898		$	713,917		$	173,209	$	150,154	$	500,692	$	467,064
	Depreciation and Amortization												Interest and Other Income
Commercial Group	$	48,819		$	29,304		$	115,392		$	91,756		$	1,708	$	1,579	$	5,614	$	5,585
Residential Group	21,670			16,608			62,363			49,660			3,030		5,101		9,790		18,145
Arena	8,811			8,793			26,403			25,999			—		—		—		—
Land Development Group	28			88			540			269			4,213		3,384		12,394		10,091
Corporate Activities	638			718			2,084			2,154			44		32		179		153
	$	79,966		$	55,511		$	206,782		$	169,838		$	8,995	$	10,096	$	27,977	$	33,974
	Interest Expense												Capital Expenditures
Commercial Group	$	29,040		$	31,093		$	89,211		$	97,938		$	50,788	$	17,655	$	122,001	$	98,033
Residential Group	6,019			8,030			12,629			23,032			83,250		62,795		199,433		187,656
Arena	9,415			10,895			29,650			30,101			12,500		2,890		17,022		9,442
Land Development Group	(189		)	(287		)	(1,059		)	(572		)	—		20		15		36
Corporate Activities	4,722			9,581			18,904			28,418			—		—		19		15
	$	49,007		$	59,312		$	149,335		$	178,917		$	146,538	$	83,360	$	338,490	$	295,182

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 September 30, 2015	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(407,249	)	$	604		$	(5,733	)	$	15,027	$	95,132		$	(302,219	)
Depreciation and amortization – Real Estate Groups	60,852			25,549			5,075			14		—			91,490
Net gain on disposition of full or partial interests in rental properties	(1,746		)	—			—			—		—			(1,746		)
Gain on disposition of unconsolidated entities	(1,009		)	—			—			—		—			(1,009		)
Impairment of consolidated depreciable real estate	400,733			8,423			—			—		—			409,156
Income tax expense (benefit) on non-FFO:
Gain on disposition of rental properties	—			—			—			—		1,088			1,088
Impairment of depreciable real estate	—			—			—			—		(158,805		)	(158,805		)
FFO attributable to Forest City Enterprises, Inc.	$	51,581		$	34,576		$	(658	)	$	15,041	$	(62,585	)	$	37,955
Three Months Ended September 30, 2014	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	12,190		$	5,512		$	(5,575	)	$	13,171	$	(24,612	)	$	686
Depreciation and amortization – Real Estate Groups	41,725			24,175			4,986			41		—			70,927
Net loss on disposition of full or partial interests in rental properties	173			—			—			—		—			173
Gain on disposition of unconsolidated entities	(9,189		)	—			—			—		—			(9,189		)
Income tax expense on non-FFO:
Gain on disposition of rental properties	—			—			—			—		3,310			3,310
FFO attributable to Forest City Enterprises, Inc.	$	44,899		$	29,687		$	(589	)	$	13,212	$	(21,302	)	$	65,907
Nine Months Ended September 30, 2015	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	52,631		$	54,034		$	(15,763	)	$	38,254	$	(181,828	)	$	(52,672	)
Depreciation and amortization – Real Estate Groups	152,708			74,657			15,192			427		—			242,984
Net gain on disposition of full or partial interests in rental properties	(1,746		)	—			—			—		—			(1,746		)
Gain on disposition of unconsolidated entities	(1,009		)	(19,284		)	—			—		—			(20,293		)
Impairment of consolidated depreciable real estate	400,733			8,423			—			—		—			409,156
Income tax expense (benefit) on non-FFO:
Gain on disposition of rental properties	—			—			—			—		8,549			8,549
Impairment of depreciable real estate	—			—			—			—		(158,805		)	(158,805		)
FFO attributable to Forest City Enterprises, Inc.	$	603,317		$	117,830		$	(571	)	$	38,681	$	(332,084	)	$	427,173
Nine Months Ended September 30, 2014	Commercial Group			Residential Group			Arena			Land Development Group		Corporate Activities			Total
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(111,414	)	$	48,613		$	(13,378	)	$	36,257	$	(36,864	)	$	(76,786	)
Depreciation and amortization – Real Estate Groups	130,198			71,367			14,927			116		—			216,608
Net loss on disposition of full or partial interests in rental properties	640			—			—			—		—			640
Gain on disposition of unconsolidated entities	(25,279		)	(24,796		)	—			—		—			(50,075		)
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	—			—			—			—		32,028			32,028
Impairment of depreciable real estate	—			—			—			—		(50,053		)	(50,053		)
FFO attributable to Forest City Enterprises, Inc.	$	96,148		$	95,184		$	1,549		$	36,373	$	(54,889	)	$	174,365