Revenue Recognition

9 Months Ended

Sep. 30, 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, lease termination income, 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.


◦	Lease termination income is recognized immediately if a tenant vacates or is recognized on a straight-line basis over the shortened remaining lease term in accordance with ASC 842.


◦	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 and nine months ended September 30, 2019 and 2018 is set forth in Note 23 - Segment Information.



(Amounts in thousands)	For the Three Months Ended September 30, 2019								For the Three Months Ended September 30, 2018
	Total		New York		Other				Total		New York		Other
Property rentals	$	381,740	$	308,933	$	72,807			$	453,789	$	387,300	$	66,489
Hotel Pennsylvania	24,499		24,499		—				26,088		26,088		—
Trade shows	8,104		—		8,104				8,443		—		8,443
Lease revenues	414,343		333,432		80,911				488,320		413,388		74,932
Tenant services	13,295		9,342		3,953				15,627		11,696		3,931
Rental revenues	427,638		342,774		84,864				503,947		425,084		78,863
BMS cleaning fees	30,677		32,787		(2,110		)	⁽¹⁾	28,873		31,328		(2,455		)	⁽¹⁾
Management and leasing fees	3,326		3,746		(420		)		4,734		4,439		295
Other income	4,320		1,261		3,059				4,494		1,595		2,899
Fee and other income	38,323		37,794		529				38,101		37,362		739
Total revenues	$	465,961	$	380,568	$	85,393			$	542,048	$	462,446	$	79,602

____________________

(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 Nine Months Ended September 30, 2019								For the Nine Months Ended September 30, 2018
	Total		New York		Other				Total		New York		Other
Property rentals	$	1,211,641	$	995,661	$	215,980			$	1,358,932	$	1,160,140	$	198,792
Hotel Pennsylvania	62,633		62,633		—				67,842		67,842		—
Trade shows	36,607		—		36,607				38,903		—		38,903
Lease revenues	1,310,881		1,058,294		252,587				1,465,677		1,227,982		237,695
Tenant services	37,933		27,904		10,029				41,597		31,854		9,743
Rental revenues	1,348,814		1,086,198		262,616				1,507,274		1,259,836		247,438
BMS cleaning fees	93,032		99,488		(6,456		)	⁽¹⁾	88,095		94,888		(6,793		)	⁽¹⁾
Management and leasing fees	10,063		10,469		(406		)		10,205		9,384		821
Other income	11,823		4,079		7,744				14,729		5,374		9,355
Fee and other income	114,918		114,036		882				113,029		109,646		3,383
Total revenues	$	1,463,732	$	1,200,234	$	263,498			$	1,620,303	$	1,369,482	$	250,821

____________________

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