Annual report pursuant to Section 13 and 15(d)

Deferred Charges, Goodwill And Other Assets, Net (Tables)

v3.8.0.1
Deferred Charges, Goodwill And Other Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2017
Deferred Charges, Goodwill And Other Assets [Line Items]  
Schedule Of Deferred Charges, Goodwill And Other Assets



 

 

 

 

 



 

 

 

 

 



 

December 31,

(dollars in thousands)

 

2017

 

 

2016

Deferred leasing costs

$

 199,515 

 

$

 220,947 

Deferred financing costs - unsecured revolving credit facility (a)

 

 4,945 

 

 

 5,400 



 

 204,460 

 

 

 226,347 

Accumulated amortization

 

 (98,956)

 

 

 (107,359)

Deferred charges, net

 

 105,504 

 

 

 118,988 

Notes receivable (b)

 

 50,167 

 

 

 13,251 

In-place lease values, related intangibles and other assets, net (c) (d)

 

 102,757 

 

 

 72,046 

Goodwill (e)

 

 2,945 

 

 

 2,945 

Prepaid expenses and other assets, net (f)

 

 80,947 

 

 

 60,720 



 

 

 

 

 

Total deferred charges, goodwill and other assets, net

$

 342,320 

 

$

 267,950 



(a)Deferred financing costs related to all other debt liabilities (other than for the unsecured revolving credit facility) are netted against those debt liabilities for all periods presented. See Note 2: Significant Accounting Policies – Deferred Financing Costs.

(b)Includes as of December 31, 2017: a mortgage receivable with a balance of $45.7 million (acquired in August 2017) which bears interest at 5.85 percent and matures in July 2019, with a three-month extension option and an interest-free note receivable with a net present value of $2.5 million which matures in April 2023.   The Company believes these balances are fully collectible.

(c)In accordance with ASC 805, Business Combinations, the Company recognizes rental revenue of acquired above and below market lease intangibles over the terms of the respective leases.  The impact of amortizing the acquired above and below-market lease intangibles increased revenue by approximately $7.9 million, $1.9 million and $0.2 million for the years ended December 31, 2017,  2016 and 2015, respectively.  The following table summarizes, as of December 31, 2017, the scheduled amortization of the Company’s acquired above and below-market lease intangibles for each of the five succeeding years (dollars in thousands). 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2018

$

 (5,084)

 

$

 6,888 

 

$

 1,804 

2019

 

 (4,716)

 

 

 5,183 

 

 

 467 

2020

 

 (3,398)

 

 

 4,304 

 

 

 906 

2021

 

 (2,779)

 

 

 4,186 

 

 

 1,407 

2022

 

 (2,665)

 

 

 4,063 

 

 

 1,398 



(d)The value of acquired in-place lease intangibles are amortized to expense over the remaining initial terms of the respective leases.  The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $32.2 million, $14.3 million and $1.4 million for the years ended December 31, 2017,  2016 and 2015, respectively.  The following table summarizes, as of December 31, 2017, the scheduled amortization of the Company’s acquired in-place lease values for each of the five succeeding years (dollars in thousands). 



 

 

 



 

 

 

Year

 

 

 

2018

 

$

 10,657 

2019

 

 

 8,406 

2020

 

 

 7,078 

2021

 

 

 6,347 

2022

 

 

 5,526 





(e)All goodwill is attributable to the Company’s Multi-family Services segment.

(f)Includes as of December 31, 2017,  $26.9 million of proceeds from property sales held by a qualified intermediary.

Schedule Of Fair Value Of The Derivative Financial Instruments



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Fair Value

 

 

 

 

Asset  Derivatives designated

 

December 31,

 

 

 

 

as hedging instruments

 

 

2017

 

 

2016

 

 

Balance sheet location

 

Interest rate swaps

 

$

 8,060 

 

$

 2,847 

 

 

Deferred charges, goodwill and other assets

 



Schedule Of Cash Flow Hedging, Derivative Financial Instruments On The Income Statement



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Cash Flow Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)

 

 

 

 

Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

 

 

Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

 

 

Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion, Reclassification for Forecasted Transactions No Longer Probable of Occurring and Amount Excluded from Effectiveness Testing)



 

2017

 

 

2016

 

 

 2015 

 

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

2017

 

 

2016

 

 

2015

Year ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

$

 2,869 

 

$

 (1,183)

 

$

 -

 

Interest expense

 

$

 (2,381)

 

$

 (3,398)

 

$

 -

Interest and other investment income (loss)

 

$

 (37)

 

$

 631 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Acquired Above And Below Market Lease Intangibles [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2018

$

 (5,084)

 

$

 6,888 

 

$

 1,804 

2019

 

 (4,716)

 

 

 5,183 

 

 

 467 

2020

 

 (3,398)

 

 

 4,304 

 

 

 906 

2021

 

 (2,779)

 

 

 4,186 

 

 

 1,407 

2022

 

 (2,665)

 

 

 4,063 

 

 

 1,398 



In-Place Leases [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 



 

 

 

Year

 

 

 

2018

 

$

 10,657 

2019

 

 

 8,406 

2020

 

 

 7,078 

2021

 

 

 6,347 

2022

 

 

 5,526 



Mack-Cali Realty LP [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Schedule Of Deferred Charges, Goodwill And Other Assets



 

 

 

 

 



 

 

 

 

 



 

December 31,

(dollars in thousands)

 

2017

 

 

2016

Deferred leasing costs

$

 199,515 

 

$

 220,947 

Deferred financing costs - unsecured revolving credit facility (a)

 

 4,945 

 

 

 5,400 



 

 204,460 

 

 

 226,347 

Accumulated amortization

 

 (98,956)

 

 

 (107,359)

Deferred charges, net

 

 105,504 

 

 

 118,988 

Notes receivable (b)

 

 50,167 

 

 

 13,251 

In-place lease values, related intangibles and other assets, net (c) (d)

 

 102,757 

 

 

 72,046 

Goodwill (e)

 

 2,945 

 

 

 2,945 

Prepaid expenses and other assets, net (f)

 

 80,947 

 

 

 60,720 



 

 

 

 

 

Total deferred charges, goodwill and other assets, net

$

 342,320 

 

$

 267,950 



(a)Deferred financing costs related to all other debt liabilities (other than for the unsecured revolving credit facility) are netted against those debt liabilities for all periods presented. See Note 2: Significant Accounting Policies – Deferred Financing Costs.

(b)Includes as of December 31, 2017: a mortgage receivable with a balance of $45.7 million (acquired in August 2017) which bears interest at 5.85 percent and matures in July 2019, with a three-month extension option and an interest-free note receivable with a net present value of $2.5 million which matures in April 2023.   The Company believes these balances are fully collectible.

(c)In accordance with ASC 805, Business Combinations, the Company recognizes rental revenue of acquired above and below market lease intangibles over the terms of the respective leases.  The impact of amortizing the acquired above and below-market lease intangibles increased revenue by approximately $7.9 million, $1.9 million and $0.2 million for the years ended December 31, 2017,  2016 and 2015, respectively.  The following table summarizes, as of December 31, 2017, the scheduled amortization of the Company’s acquired above and below-market lease intangibles for each of the five succeeding years (dollars in thousands). 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2018

$

 (5,084)

 

$

 6,888 

 

$

 1,804 

2019

 

 (4,716)

 

 

 5,183 

 

 

 467 

2020

 

 (3,398)

 

 

 4,304 

 

 

 906 

2021

 

 (2,779)

 

 

 4,186 

 

 

 1,407 

2022

 

 (2,665)

 

 

 4,063 

 

 

 1,398 



(d)The value of acquired in-place lease intangibles are amortized to expense over the remaining initial terms of the respective leases.  The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $32.2 million, $14.3 million and $1.4 million for the years ended December 31, 2017,  2016 and 2015, respectively.  The following table summarizes, as of December 31, 2017, the scheduled amortization of the Company’s acquired in-place lease values for each of the five succeeding years (dollars in thousands). 



 

 

 



 

 

 

Year

 

 

 

2018

 

$

 10,657 

2019

 

 

 8,406 

2020

 

 

 7,078 

2021

 

 

 6,347 

2022

 

 

 5,526 





(e)All goodwill is attributable to the Company’s Multi-family Services segment.

(f)Includes as of December 31, 2017,  $26.9 million of proceeds from property sales held by a qualified intermediary.

Schedule Of Fair Value Of The Derivative Financial Instruments



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Fair Value

 

 

 

 

Asset  Derivatives designated

 

December 31,

 

 

 

 

as hedging instruments

 

 

2017

 

 

2016

 

 

Balance sheet location

 

Interest rate swaps

 

$

 8,060 

 

$

 2,847 

 

 

Deferred charges, goodwill and other assets

 



Schedule Of Cash Flow Hedging, Derivative Financial Instruments On The Income Statement



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Cash Flow Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)

 

 

 

 

Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

 

 

Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

 

 

Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion, Reclassification for Forecasted Transactions No Longer Probable of Occurring and Amount Excluded from Effectiveness Testing)



 

2017

 

 

2016

 

 

 2015 

 

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

2017

 

 

2016

 

 

2015

Year ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

$

 2,869 

 

$

 (1,183)

 

$

 -

 

Interest expense

 

$

 (2,381)

 

$

 (3,398)

 

$

 -

Interest and other investment income (loss)

 

$

 (37)

 

$

 631 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Mack-Cali Realty LP [Member] | Acquired Above And Below Market Lease Intangibles [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2018

$

 (5,084)

 

$

 6,888 

 

$

 1,804 

2019

 

 (4,716)

 

 

 5,183 

 

 

 467 

2020

 

 (3,398)

 

 

 4,304 

 

 

 906 

2021

 

 (2,779)

 

 

 4,186 

 

 

 1,407 

2022

 

 (2,665)

 

 

 4,063 

 

 

 1,398 



Mack-Cali Realty LP [Member] | In-Place Leases [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 



 

 

 

Year

 

 

 

2018

 

$

 10,657 

2019

 

 

 8,406 

2020

 

 

 7,078 

2021

 

 

 6,347 

2022

 

 

 5,526