Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation: |
The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). |
Consolidation, Policy [Policy Text Block] | Basis of Consolidation: |
The accompanying consolidated financial statements include the accounts of SHR, its subsidiaries and other entities in which the Company has a controlling interest. If SH Funding determines that it is the holder of a variable interest in a variable interest entity (VIE), and it is the primary beneficiary, then SH Funding will consolidate the entity. At December 31, 2014, SH Funding consolidated one VIE, the entity that owns the JW Marriott Essex House Hotel (see note 6). For entities that are not considered VIEs, SH Funding consolidates those entities it controls. At December 31, 2014, SH Funding owned a 53.5% controlling interest in the entity that owns the Hyatt Regency La Jolla hotel, which is consolidated in the accompanying consolidated financial statements. It accounts for those entities over which it has a significant influence but does not control using the equity method of accounting. At December 31, 2014, SH Funding owned interests in the Four Seasons Residence Club Punta Mita (RCPM) and the Lot H5 Venture (see note 7), which are unconsolidated affiliates in the accompanying consolidated financial statements that are accounted for using the equity method of accounting. |
All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: |
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Property, Plant and Equipment, Policy [Policy Text Block] | Investment in Hotel Properties and Depreciation: |
Investment in hotel properties consists of land, a leasehold interest, buildings, building and leasehold improvements, site improvements and furniture, fixtures and equipment. |
Depreciation is computed on a straight-line basis over the following useful lives: |
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Leasehold interest | | Life of lease (51 years) | | | | | | | | | | | | |
Buildings | | 39 years | | | | | | | | | | | | |
Building and leasehold improvements | | 5 – 10 years | | | | | | | | | | | | |
Site improvements | | 15 years | | | | | | | | | | | | |
Furniture, fixtures & equipment | | 3 – 5 years | | | | | | | | | | | | |
Hotel improvements in progress include costs incurred for capital projects for hotels that are in the process of being developed, renovated, rehabilitated or expanded. Completed renovations and improvements are capitalized and depreciated over their estimated useful lives. Interest expense and certain other costs as well as project related salary and benefit costs incurred during a renovation or development period are capitalized and depreciated over the lives of the related assets. Costs incurred for repairs and maintenance are expensed. |
Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell. The Company classifies the operations of hotels sold or held for sale as discontinued operations (see note 5). Effective January 1, 2015, the Company adopted new accounting guidance related to discontinued operations. Under the guidance, only disposals that represent a strategic shift that has (or will have) a major effect on the Company's results of operations would qualify as discontinued operations. The Company will apply this new guidance prospectively. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Goodwill: |
Goodwill is the excess of the allocated purchase price over the fair value of the net assets at the time a property is acquired. The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows (in thousands): |
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| 2014 | | 2013 | | | | | | | |
Balance at the beginning of the year | | | | | | | | | | |
Goodwill | $ | 314,714 | | | $ | 316,945 | | | | | | | | |
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Accumulated impairment losses | (276,586 | ) | | (276,586 | ) | | | | | | | |
| 38,128 | | | 40,359 | | | | | | | | |
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Goodwill related to assets held for sale | — | | | (2,231 | ) | | | | | | | |
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Balance at the end of the year | | | | | | | | | | |
Goodwill | 314,714 | | | 314,714 | | | | | | | | |
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Accumulated impairment losses | (276,586 | ) | | (276,586 | ) | | | | | | | |
| $ | 38,128 | | | $ | 38,128 | | | | | | | | |
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Intangible Assets: |
Intangible assets at December 31, 2014 and 2013 include (in thousands): |
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| 2014 | | 2013 | | Weighted Average Useful Life | | | | | |
Intangible assets subject to amortization: | | | | | | | | | | |
Below market ground leases: | | | | | | | | | | |
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Fairmont Scottsdale Princess | $ | 7,656 | | | $ | — | | | 95 years, 9 months | | | | | |
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Marriott London Grosvenor Square | — | | | 34,567 | | | 51 years | | | | | |
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Golf course use agreement | 1,500 | | | 1,500 | | | 14 years | | | | | |
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Advanced bookings | 7,380 | | | 3,200 | | | 1 year, 7 months | | | | | |
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Land development entitlements | 1,988 | | | 1,988 | | | 2 years | | | | | |
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Memberships value(a) | 5,973 | | | — | | | 30 years | | | | | |
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Below market hotel management agreement(a) | 18,822 | | | — | | | 9 years, 2 months | | | | | |
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| 43,319 | | | 41,255 | | | | | | | | |
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Accumulated amortization | (7,288 | ) | | (11,753 | ) | | | | | | | |
| 36,031 | | | 29,502 | | | | | | | | |
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Intangible assets not subject to amortization: | | | | | | | | | | |
Trade name(a) | 58,293 | | | — | | | | | | | | |
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Intangible assets, net of accumulated amortization | $ | 94,324 | | | $ | 29,502 | | | | | | | | |
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(a) These intangible assets relate to the Hotel del Coronado (see note 3). |
Amortization of intangible assets is computed on a straight-line basis over the respective useful lives. For the years ended December 31, 2014, 2013 and 2012, amortization expense of intangible assets in continuing and discontinued operations was $4,652,000, $1,653,000 and $1,704,000, respectively. The estimated future aggregate annual amortization expense for intangible assets at December 31, 2014 is summarized as follows (in thousands): |
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Years ending December 31, | | | | | | | | | | | | |
2015 | $ | 7,015 | | | | | | | | | | | | |
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2016 | 2,439 | | | | | | | | | | | | |
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2017 | 2,439 | | | | | | | | | | | | |
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2018 | 2,394 | | | | | | | | | | | | |
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2019 | 2,332 | | | | | | | | | | | | |
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Thereafter | 19,412 | | | | | | | | | | | | |
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Total | $ | 36,031 | | | | | | | | | | | | |
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Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment: |
Investment in Hotel Properties (Long-Lived Assets) |
The Company reviews its investment in hotel properties for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized if the estimated future undiscounted cash flows derived from the asset are less than its carrying amount. The impairment loss is measured as the excess of the carrying value over the fair value of the asset, with fair value determined based on estimated future discounted cash flows or other relevant data as to the fair value of the asset (Level 3 inputs). |
Goodwill |
Goodwill is reviewed for impairment at least annually as of December 31 and whenever circumstances or events indicate potential impairment. The assessment of goodwill impairment consists of two steps. In the first step, the Company compares the fair value of each reporting unit, which for the Company is each hotel property, to its carrying value. The assessment of fair values of the hotel properties incorporates unobservable inputs (Level 3), including existing market-based considerations, as well as discounted cash flow analysis of the Company’s projections. When the fair value of the property is less than its carrying value, the Company is required to perform a second step in order to determine the implied fair value of each reporting unit’s goodwill, and to compare it to the carrying value of the reporting unit’s goodwill. The activities in the second step include hypothetically valuing all of the tangible and intangible assets and liabilities of the impaired reporting unit as if the reporting unit had been acquired in a business combination, which includes valuing all of the Company’s intangibles, even if they are not currently recorded within the carrying value. For reporting units with zero or negative carrying values, the second step is only performed if qualitative factors indicate that it is more likely than not that an impairment exists. |
Intangible Assets Not Subject to Amortization |
Intangible assets not subject to amortization are reviewed for impairment at least annually as of December 31 and whenever circumstances or events indicate potential impairment. The impairment assessment shall consist of a comparison of the fair value of the asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, the Company shall recognize an impairment loss in an amount equal to that excess. |
Intangible Assets Subject to Amortization |
Intangible assets subject to amortization are reviewed for impairment whenever circumstances or events indicate potential impairment, as part of the Company’s investment in hotel properties impairment process described above. |
Investment in Unconsolidated Affiliates |
A series of operating losses of an investee or other factors may indicate that a decrease in value of the Company’s investment in unconsolidated affiliates has occurred which is other-than-temporary. Accordingly, the investment in each of the unconsolidated affiliates is evaluated periodically for valuation declines that are other-than-temporary. If the investment is other than temporarily impaired, the Company writes down the investment to its estimated fair value. The Company also considers any impairments in the underlying real estate investments, the ownership and distribution preferences and limitations and rights to sell and repurchase of its ownership interests. |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs: |
Deferred financing costs consist of loan fees and other costs incurred in connection with obtaining loans. The deferred financing costs have been capitalized and are being amortized to interest expense over the initial maturity of the underlying loans using the straight-line method, which approximates the effective interest method. Upon early extinguishment of the debt, the unamortized deferred financing costs are written off and included in loss on early extinguishment of debt. |
Inventory, Policy [Policy Text Block] | Inventories: |
Inventories located at the hotel properties consist primarily of food and beverage stock. These items are stated at the lower of cost, as determined by an average cost method, or market and are included in prepaid expenses and other assets on the accompanying consolidated balance sheets. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: |
The Company considers all cash on hand, demand deposits with financial institutions and short-term highly liquid investments with purchased or original maturities of three months or less to be cash equivalents. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash and Cash Equivalents: |
As of December 31, 2014 and 2013, restricted cash and cash equivalents included $37,486,000 and $38,629,000, respectively, that will be used for property and equipment replacement in accordance with hotel management agreements. At December 31, 2014 and 2013, restricted cash and cash equivalents also included reserves of $44,024,000 and $37,287,000, respectively, required by loan and other agreements. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency: |
Foreign currency-denominated assets and liabilities, where the functional currency is the local currency, are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates during the respective periods. Gains and losses from foreign currency translation, where the functional currency is the local currency, are recorded as a separate component of accumulated other comprehensive loss within shareholders’ equity. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: |
Revenues include rooms, food and beverage and other hotel operating revenue such as spa, retail, parking, golf course, telephone, internet access and space rentals. These revenues are recorded net of taxes collected from customers and remitted to government authorities and are recognized as the related services are rendered. Lease revenue is based on an annual base rent plus additional rent contingent on the hotel meeting performance thresholds, as defined in the lease agreement. Lease revenue is recognized on an accrual basis pursuant to the terms of the lease. |
Noncontrolling Interest, Policy [Policy Text Block] | Noncontrolling Interests: |
Redeemable Noncontrolling Interests (Temporary Equity) |
Third party noncontrolling partners own an approximate 0.3% interest in SH Funding. The interests held by these noncontrolling partners are stated at the greater of carrying value or their redemption value and are presented as noncontrolling interests in SHR’s operating partnership on the consolidated balance sheets. Net income or loss attributable to the noncontrolling interest partners is presented as noncontrolling interests in SHR’s operating partnership in the consolidated statements of operations. Net income or loss and other comprehensive income or loss are attributed to noncontrolling interest partners in SH Funding based on their weighted average ownership percentages during the period. The ownership percentage is calculated by dividing the number of units held by the noncontrolling interest partners by the sum of units held by SHR and the units held by noncontrolling interest partners, all calculated based on the weighted average days outstanding at the end of the period. |
These noncontrolling partners have an option to exercise a redemption right to require SH Funding to redeem all or a portion of the units held by the noncontrolling interest partners on a specified redemption date at a redemption price equal to the number of operating partnership units multiplied by SHR’s common stock price. SH Funding is not obligated to satisfy the redemption right if SHR elects to purchase the units. SHR has the sole and absolute discretion to purchase the units. If it does purchase the units, SHR has the sole and absolute discretion to pay either in cash or shares. |
The following table reflects the activity of the noncontrolling interests in SHR’s operating partnership for the years ended December 31, 2014, 2013 and 2012 (in thousands): |
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| 2014 | | 2013 | | 2012 | | | |
Noncontrolling interests in SHR’s operating partnership | | | | | | | | |
Balance, beginning of year | $ | 7,534 | | | $ | 5,463 | | | $ | 4,583 | | | | |
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Shares of SHR common stock issued | 2,064 | | | — | | | 468 | | | | |
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Net income (loss) | 1,221 | | | 38 | | | (184 | ) | | | |
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Currency translation adjustments | 71 | | | (2 | ) | | 3 | | | | |
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Derivatives activity | 31 | | | 73 | | | 48 | | | | |
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Share-based compensation | 16 | | | 4 | | | 30 | | | | |
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Redemption value adjustment | 361 | | | 2,242 | | | 738 | | | | |
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Other | (798 | ) | | (284 | ) | | (223 | ) | | | |
Balance, end of year | $ | 10,500 | | | $ | 7,534 | | | $ | 5,463 | | | | |
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The historical cost of the redeemable noncontrolling interests is based on the proportional relationship between the carrying value of equity associated with SHR’s common shareholders relative to that of the unitholders of SH Funding, as SH Funding units may be exchanged into shares of SHR common stock on a one-for-one basis. As of December 31, 2014, 2013 and 2012, the redeemable noncontrolling interests had a redemption value of approximately $10,500,000 (based on SHR’s common stock closing share price of $13.23 on December 31, 2014), $7,534,000 (based on SHR’s common stock closing share price of $9.45 on December 31, 2013), and $5,463,000 (based on SHR’s common stock closing share price of $6.40 on December 31, 2012), respectively. |
Nonredeemable Noncontrolling Interests |
The Company also consolidates affiliates that it controls but does not wholly own. The ownership interests held by the third party noncontrolling partners are presented as noncontrolling interests in consolidated affiliates in the Company’s consolidated balance sheets. Any net income or loss attributed to the noncontrolling partners is presented as noncontrolling interests in consolidated affiliates in the consolidated statements of operations. The activity for the noncontrolling interests in consolidated affiliates for the years ended December 31, 2014, 2013 and 2012 is presented in the Company’s consolidated statements of equity. |
Income Tax, Policy [Policy Text Block] | Income Taxes: |
SHR has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Tax Code). As a REIT, SHR generally will not be subject to U.S. federal income tax if it distributes 100% of its annual taxable income to its shareholders and complies with certain other requirements. As a REIT, SHR is subject to a number of organizational and operational requirements. If it fails to qualify as a REIT in any taxable year, SHR will be subject to U.S. federal income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates. Even if it qualifies for taxation as a REIT, it may be subject to foreign, state and local income taxes and to U.S. federal income tax and excise tax on its undistributed income. In addition, taxable income from SHR’s taxable REIT subsidiaries is subject to federal, foreign, state and local income taxes. Also, the foreign countries where the Company has operations do not recognize REITs under their respective tax laws. Accordingly, the Company is subject to tax in those jurisdictions. |
Deferred tax assets and liabilities are established for net operating loss carryforwards and temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the net operating loss carryforwards are utilized and when the temporary differences reverse. The Company evaluates uncertain tax positions in accordance with applicable accounting guidance. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances that causes a change in the estimated realizability of the related deferred tax asset is included in earnings. |
Earnings Per Share, Policy [Policy Text Block] | Per Share Data: |
The Company uses the two-class method to calculate per share data for common stock and participating securities. Under the two-class method, net earnings are allocated to common stock and participating securities as if all of the net earnings for the period had been distributed. Unvested share-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing per share data pursuant to the two-class method. The Company's restricted stock units (RSUs) are considered participating securities because they contain non-forfeitable rights to dividend equivalents. To the extent the Company has undistributed earnings, it will follow the two-class method of computing per share data. |
Basic income (loss) per share of common stock is computed by dividing the net income (loss) attributable to SHR common shareholders by the weighted average shares of common stock outstanding during each period. Diluted income (loss) per common share is computed by dividing the net income (loss) attributable to SHR common shareholders as adjusted for the impact of dilutive securities, if any, by the weighted average shares of common stock outstanding plus potentially dilutive securities. Dilutive securities may include RSUs, performance-based RSUs, options to purchase shares of SHR common stock (Options), and noncontrolling interests that have an option to exchange their interests to shares of SHR common stock. No effect is shown for securities that are anti-dilutive. Potentially dilutive shares are determined using the more dilutive of either the two-class method or the treasury stock method. The following table sets forth the components of the calculation of net income (loss) attributable to SHR common shareholders used for determining per share amounts for the years ended December 31, 2014, 2013 and 2012 (in thousands): |
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| 2014 | | 2013 | | 2012 | | | |
Numerator - Basic: | | | | | | | | |
Income (loss) from continuing operations attributable to SHR | $ | 185,713 | | | $ | 5,401 | | | $ | (58,731 | ) | | | |
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Preferred shareholder dividends | (13,851 | ) | | (24,166 | ) | | (24,166 | ) | | | |
Preferred stock redemption (a) | (10,233 | ) | | — | | | — | | | | |
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Undistributed earnings allocated to participating securities - basic | (1,311 | ) | | — | | | — | | | | |
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Income (loss) from continuing operations attributable to SHR common shareholders | 160,318 | | | (18,765 | ) | | (82,897 | ) | | | |
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Discontinued operations attributable to SHR | 158,770 | | | 5,574 | | | 3,425 | | | | |
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Net income (loss) attributable to SHR common shareholders - basic | $ | 319,088 | | | $ | (13,191 | ) | | $ | (79,472 | ) | | | |
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Numerator - Diluted: | | | | | | | | |
Income (loss) from continuing operations attributable to SHR - basic | $ | 160,318 | | | $ | (18,765 | ) | | $ | (82,897 | ) | | | |
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Undistributed earnings allocated to participating securities - basic | 1,311 | | | — | | | — | | | | |
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Undistributed earnings allocated to participating securities - diluted | (1,248 | ) | | — | | | — | | | | |
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Adjustment for noncontrolling interested in consolidated affiliates (see note 6) | (2,198 | ) | | — | | | — | | | | |
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Income (loss) from continuing operations attributable to SHR common shareholders | 158,183 | | | (18,765 | ) | | (82,897 | ) | | | |
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Discontinued operations attributable to SHR | 158,770 | | | 5,574 | | | 3,425 | | | | |
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Net income (loss) attributable to SHR common shareholders - diluted | $ | 316,953 | | | $ | (13,191 | ) | | $ | (79,472 | ) | | | |
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Denominator: | | | | | | | | |
Weighted average shares of common stock - basic (b) | 233,528 | | | 206,334 | | | 201,109 | | | | |
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Effect of dilutive securities: | | | | | | | | |
Noncontrolling interests in consolidated affiliates (see note 6) | 8,740 | | | — | | | — | | | | |
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Performance-based RSUs | 1,290 | | | — | | | — | | | | |
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Weighted average shares of common stock - diluted | 243,558 | | | 206,334 | | | 201,109 | | | | |
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(a) | In April 2014, SHR redeemed all of the outstanding shares of its 8.50% Series A Cumulative Redeemable Preferred Stock (Series A Preferred Stock) (see note 11). In July 2014, SHR redeemed all of the outstanding shares of its 8.25% Series C Cumulative Redeemable Preferred Stock (Series C Preferred Stock) (see note 11). In December 2014, SHR publicly announced its intention to redeem all of the outstanding shares of its 8.25% Series B Cumulative Redeemable Preferred Stock (Series B Preferred Stock) (see notes 11 and 21). For purposes of calculating per share amounts for the year ended December 31, 2014, the difference between the fair value of the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock and the carrying amount of the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock is an adjustment to net income attributable to SHR common shareholders. | | | | | | | | | | | | | |
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(b) | Includes RSUs, performance-based RSUs and stock units payable in shares of SHR’s common stock under the Company’s Deferral Program (as defined in note 13) (Deferral Program Stock Units) of 1,552, 1,248 and 2,528 at December 31, 2014, 2013 and 2012, respectively, that have vested but have not yet been issued to shares of common stock. | | | | | | | | | | | | | |
Securities that could potentially dilute basic income (loss) per share in the future that are not included in the computation of diluted income (loss) per share because they are anti-dilutive as of December 31, 2014, 2013 and 2012 are as follows (in thousands): |
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| 2014 | | 2013 | | 2012 | | | | | | |
Noncontrolling interests in SHR's operating partnership | 794 | | | 797 | | | 853 | | | | | | | |
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Noncontrolling interests in consolidated affiliates | — | | | 11,025 | | | 11,893 | | | | | | | |
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Options, RSUs and performance-based RSUs | — | | | 2,479 | | | 2,809 | | | | | | | |
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AccumulatedOtherComprehensiveIncomeLoss [Policy Text Block] | Accumulated Other Comprehensive Loss: |
The Company’s accumulated other comprehensive loss (OCL) results from activity related to certain derivative financial instruments and unrealized gains or losses on foreign currency translation adjustments (CTA). The following table provides the changes in accumulated OCL for the years ended December 31, 2014, 2013 and 2012 (in thousands): |
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| Derivative and | | CTA | | Accumulated OCL | | | |
Other Activity | | | |
Balance at January 1, 2012 | $ | (49,510 | ) | | $ | (21,142 | ) | | $ | (70,652 | ) | | | |
Other comprehensive (loss) income before reclassifications | (10,209 | ) | | 725 | | | (9,484 | ) | | | |
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Amounts reclassified from accumulated OCL | 21,265 | | | — | | | 21,265 | | | | |
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Net other comprehensive income | 11,056 | | | 725 | | | 11,781 | | | | |
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Balance at December 31, 2012 | $ | (38,454 | ) | | $ | (20,417 | ) | | $ | (58,871 | ) | | | |
Other comprehensive loss before reclassifications | (176 | ) | | (412 | ) | | (588 | ) | | | |
Amounts reclassified from accumulated OCL | 18,014 | | | — | | | 18,014 | | | | |
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Net other comprehensive income (loss) | 17,838 | | | (412 | ) | | 17,426 | | | | |
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Balance at December 31, 2013 | $ | (20,616 | ) | | $ | (20,829 | ) | | $ | (41,445 | ) | | | |
Other comprehensive loss before reclassifications | (341 | ) | | (200 | ) | | (541 | ) | | | |
Amounts reclassified from accumulated OCL | 10,059 | | | 18,895 | | | 28,954 | | | | |
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Net other comprehensive income | 9,718 | | | 18,695 | | | 28,413 | | | | |
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Balance at December 31, 2014 | $ | (10,898 | ) | | $ | (2,134 | ) | | $ | (13,032 | ) | | | |
The reclassifications out of accumulated OCL for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands): |
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| | Amount Reclassified from Accumulated OCL | | |
Details about Accumulated OCL Components | | 2014 | | 2013 | | 2012 | | Statement of Operations Line Item |
Activity related to cash flow hedges | | $ | 10,059 | | | $ | 18,014 | | | $ | 21,265 | | | Interest expense |
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Activity related to CTA | | $ | 18,895 | | | $ | — | | | $ | — | | | Income from discontinued operations, net of tax |
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Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities: |
The Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. If certain conditions are met, a derivative may be specifically designated as (a) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, (b) a hedge of the exposure to variable cash flows of a forecasted transaction, or (c) a hedge of the foreign currency exposure of a net investment in a foreign-currency-denominated forecasted transaction. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and resulting designation. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial and Nonfinancial Instruments: |
Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy has been established that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). |
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. |
Business Combinations Policy [Policy Text Block] | Business Combinations: |
The Company recognizes identifiable assets acquired, liabilities assumed, non-controlling interests and contingent liabilities assumed in a business combination at their fair values at the acquisition date based on the exit price (the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date). Furthermore, acquisition-related costs, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the acquired assets. In certain situations, a deferred tax liability is created due to the difference between the fair value and the tax basis of the asset at the acquisition date, which also may result in a goodwill asset being recorded. The goodwill that is recorded as a result of this difference is not subject to amortization. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Guidance: |
In August 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The standard provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. This guidance is effective for the annual period ending December 31, 2016, and interim periods thereafter, with early adoption permitted. The Company will apply the guidance prospectively and does not anticipate the guidance will have a material impact on its financial statements or disclosures. |
In May 2014, the FASB issued new guidance which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that the guidance will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its financial statements. |
In April 2014, the FASB issued new guidance which amends the requirements for reporting discontinued operations. Under the guidance, only disposals that represent a strategic shift that has (or will have) a major effect on the entity's results of operations would qualify as discontinued operations. In addition, the guidance expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components. The provisions are effective on January 1, 2015, with early adoption permitted for any annual or interim period for which an entity's financial statements have not yet been made available for issuance. The Company will apply the guidance prospectively to disposal activity occurring after the effective date of this guidance. |
In February 2013, the FASB issued new guidance to require an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income if the amount is reclassified to net income in its entirety in the same reporting period. For other amounts not required to be reclassified in their entirety to net income in the same reporting period, a cross-reference to other disclosures that provide additional detail about the reclassification amounts is required. The provisions are effective for reporting periods beginning after December 15, 2012. The Company adopted this new guidance on January 1, 2013 and complied with the expanded disclosure requirements, as applicable. |
In December 2011, the FASB clarified that when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of a default on the subsidiary's nonrecourse debt, the reporting entity should apply the guidance on sales of real estate. The provisions are effective for public companies for fiscal years and interim periods within those years, beginning on or after June 15, 2012. The Company adopted the new guidance on January 1, 2013 and the guidance did not have a material impact on the Company's consolidated financial statements. |