Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Our revenues primarily consist of rental revenues and fee and other income. We operate in two reportable segments: New York and Other, with a significant portion of our revenues included in the New York segment. We have the following revenue sources and revenue recognition policies:


•	Rental revenues include revenues from the leasing of space at our properties to tenants and revenues from the Hotel Pennsylvania, trade shows and tenant services.

◦

Revenues from the leasing of space at our properties to tenants includes (i) lease components, including fixed and variable lease payments, and nonlease components which include reimbursement of common area maintenance expenses, and (ii) reimbursement of real estate taxes and insurance expenses. As lessor, we have elected to combine the lease and nonlease components of our operating lease agreements and account for the components as a single lease component in accordance with ASC 842. Lease revenues and reimbursement of common area maintenance, real estate taxes and insurance are presented on the following page as "property rentals." Revenues derived from fixed lease payments are recognized on a straight-line basis over the non-cancelable period of the lease, together with renewal options that are reasonably certain of being exercised. We commence rental revenue recognition when the underlying asset is available for use by the lessee. Revenue derived from the reimbursement of real estate taxes, insurance expenses and common area maintenance expenses are generally recognized in the same period as the related expenses are incurred.


◦	Hotel revenue arising from the operation of Hotel Pennsylvania consists of room revenue, food and beverage revenue, and banquet revenue. Room revenue is recognized when the rooms are made available for the guest, in accordance with ASC 842.


◦	Trade shows revenue arising from the operation of trade shows is primarily booth rentals. This revenue is recognized upon the occurrence of the trade shows when the trade show booths are made available for use by the exhibitors, in accordance with ASC 842.


◦	Tenant services revenue arises from sub-metered electric, elevator, trash removal and other services provided to tenants at their request. This revenue is recognized as the services are transferred in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606").


•	Fee and other income includes management, leasing and other revenue arising from contractual agreements with third parties or with partially owned entities, and includes Building Maintenance Service (“BMS”) cleaning, engineering and security services. This revenue is recognized as the services are transferred in accordance with ASC 606.


4.	Revenue Recognition - continued

Below is a summary of our revenues by segment. Additional financial information related to these reportable segments for the three months ended March 31, 2019 and 2018 is set forth in Note 22 - Segment Information.



(Amounts in thousands)	For the Three Months Ended March 31, 2019
	Total		New York		Other
Property rentals	$	457,741	$	385,803	$	71,938
Hotel Pennsylvania	12,609		12,609		—
Trade shows	16,956		—		16,956
Lease revenues	487,306		398,412		88,894
Tenant services	12,571		9,225		3,346
Rental revenues	499,877		407,637		92,240
BMS cleaning fees	29,785		31,757		(1,972		)	⁽¹⁾
Management and leasing fees	2,237		2,251		(14		)
Other income	2,769		1,640		1,129
Fee and other income	34,791		35,648		(857		)
Total revenues	$	534,668	$	443,285	$	91,383

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(1)	Represents the elimination of theMART and 555 California Street BMS cleaning fees which are included as income in the New York segment.



(Amounts in thousands)	For the Three Months Ended March 31, 2018
	Total		New York		Other
Property rentals	$	454,403	$	389,385	$	65,018
Hotel Pennsylvania	14,680		14,680		—
Trade shows	18,873		—		18,873
Lease revenues	487,956		404,065		83,891
Tenant services	12,464		9,771		2,693
Rental revenues	500,420		413,836		86,584
BMS cleaning fees	28,355		30,153		(1,798		)	⁽¹⁾
Management and leasing fees	2,764		2,481		283
Other income	4,898		2,014		2,884
Fee and other income	36,017		34,648		1,369
Total revenues	$	536,437	$	448,484	$	87,953

____________________

(1)

Represents the elimination of theMART and 555 California Street BMS cleaning fees which are included as income in the New York segment.