Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 06, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | HOMEFED CORP | ||
Entity Central Index Key | 833795 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 15,387,500 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $231,085,900 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Real estate held for development | $143,301 | $103,465 |
Real estate held for investment, net | 43,891 | 3,607 |
Cash and cash equivalents | 61,495 | 57,306 |
Restricted cash | 6,419 | |
Investments available for sale (amortized cost of $31,894 and $31,894) | 35,898 | 31,896 |
Investment held to maturity, at amortized cost | 11,368 | |
Equity method investments | 101,228 | |
Accounts receivable, deposits and other assets | 17,393 | 1,715 |
Intangible assets, net | 12,196 | |
Net deferred tax asset | 4,921 | 6,413 |
TOTAL | 433,189 | 204,402 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 6,009 | 5,822 |
Below market lease contract intangibles, net | 4,760 | |
Non-refundable option payments | 25 | 1,015 |
Liability for environmental remediation | 1,495 | 1,543 |
Deferred revenue | 2,528 | 2,739 |
Net deferred tax liability | 4,984 | |
Income taxes payable | 3,125 | |
Other liabilities | 842 | 228 |
Total liabilities | 20,643 | 14,472 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common stock, $.01 par value; 25,000,000 shares authorized; 15,387,500 and 7,879,500 shares outstanding after deducting 395,409 shares held in treasury | 154 | 79 |
Additional paid-in capital | 597,271 | 381,171 |
Accumulated other comprehensive income | 1 | |
Accumulated deficit | -197,530 | -201,416 |
Total HomeFed Corporation common shareholders' equity | 399,895 | 179,835 |
Noncontrolling interest | 12,651 | 10,095 |
Total equity | 412,546 | 189,930 |
TOTAL | $433,189 | $204,402 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Investments available for sale, amortized cost | $35,897 | $31,894 |
Common stock, par value | $0.01 | $0.01 |
Common shares, authorized | 25,000,000 | 25,000,000 |
Common shares, shares outstanding | 15,387,500 | 7,879,500 |
Treasury stock, shares | 395,409 | 395,409 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES | |||
Sales of real estate | $35,637 | $50,097 | $28,193 |
Rental income | 17,623 | 511 | 509 |
Farming revenues | 5,199 | 5,054 | 6,590 |
Co-op marketing and advertising fees | 1,046 | 1,142 | 557 |
Total revenues | 59,505 | 56,804 | 35,849 |
EXPENSES | |||
Cost of sales | 18,593 | 23,198 | 13,659 |
Rental operating expenses | 12,835 | 124 | 128 |
Farming expenses | 3,314 | 3,031 | 3,041 |
General and administrative expenses | 15,287 | 12,381 | 8,687 |
Depreciation and amortization | 3,857 | 239 | 249 |
Reduction in estimated liability for environmental remediation | -662 | -1,500 | |
Administrative services fees to Leucadia National Corporation | 180 | 180 | 180 |
Total expenses | 54,066 | 38,491 | 24,444 |
Income before income from equity method investments | 5,439 | 18,313 | 11,405 |
Losses from equity method investments | -298 | ||
Income from operations | 5,141 | 18,313 | 11,405 |
Interest and other income | 1,074 | 889 | 107 |
Income before income taxes and noncontrolling interest | 6,215 | 19,202 | 11,512 |
Income tax provision | -1,483 | -6,498 | -4,080 |
Net income | 4,732 | 12,704 | 7,432 |
Net income attributable to the noncontrolling interest | 846 | 1,436 | 1,410 |
Net income attributable to HomeFed Corporation common shareholders | $3,886 | $11,268 | $6,022 |
Basic and diluted earnings per common share attributable to HomeFed Corporation common shareholders | $0.29 | $1.43 | $0.76 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $4,732 | $12,704 | $7,432 |
Other comprehensive income (loss): | |||
Net unrealized holding gains (losses) on investments arising during the period, net of taxes of $0, $(1) and $2 | -1 | -2 | 2 |
Net change in unrealized holding gains (losses) on investments, net of taxes of $0, $(1) and $2 | -1 | -2 | 2 |
Other comprehensive income (loss), net of income taxes | -1 | -2 | 2 |
Comprehensive income | 4,731 | 12,702 | 7,434 |
Comprehensive (income) loss attributable to the noncontrolling interest | -846 | -1,436 | -1,410 |
Comprehensive income attributable to HomeFed Corporation common shareholders | $3,885 | $11,266 | $6,024 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | $0 | ($1) | $2 |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | $0 | ($1) | $2 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Equity (USD $) | Common Stock $.01 Par Value [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Subtotal [Member] | Noncontrolling Interest [Member] | Total |
In Thousands | |||||||
Balance at Dec. 31, 2011 | $79 | $376,332 | $1 | ($218,706) | $157,706 | $16,723 | $174,429 |
Net income | 6,022 | 6,022 | 1,410 | 7,432 | |||
Acquisition of noncontrolling interest | 4,474 | 4,474 | -9,474 | -5,000 | |||
Other comprehensive loss, net of taxes | 2 | 2 | 2 | ||||
Share-based compensation expense | 176 | 176 | 176 | ||||
Balance at Dec. 31, 2012 | 79 | 380,982 | 3 | -212,684 | 168,380 | 8,659 | 177,039 |
Net income | 11,268 | 11,268 | 1,436 | 12,704 | |||
Other comprehensive loss, net of taxes | -2 | -2 | -2 | ||||
Share-based compensation expense | 189 | 189 | 189 | ||||
Balance at Dec. 31, 2013 | 79 | 381,171 | 1 | -201,416 | 179,835 | 10,095 | 189,930 |
Net income | 3,886 | 3,886 | 846 | 4,732 | |||
Other comprehensive loss, net of taxes | -1 | -1 | -1 | ||||
Shares issued to acquire assets from Leucadia National Corporation | 75 | 215,634 | 215,709 | 215,709 | |||
Noncontrolling interest acquired from Leucadia National Corporation | 1,710 | 1,710 | |||||
Share-based compensation expense | 200 | 200 | 200 | ||||
Exercise of options to purchase common shares, including excess tax benefit | 266 | 266 | 266 | ||||
Balance at Dec. 31, 2014 | $154 | $597,271 | ($197,530) | $399,895 | $12,651 | $412,546 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $4,732,000 | $12,704,000 | $7,432,000 |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||
Reduction in estimated liability for environmental remediation | -662,000 | -1,500,000 | |
Income from equity method investments | 298,000 | ||
Provision for deferred income taxes | -446,000 | 2,345,000 | 2,093,000 |
Share-based compensation expense | 200,000 | 189,000 | 176,000 |
Excess tax benefit from exercise of stock options | -78,000 | ||
Depreciation and amortization of property, equipment and leasehold improvements | 304,000 | 239,000 | 249,000 |
Other amortization | 4,449,000 | ||
Amortization related to investments | -847,000 | -35,000 | -40,000 |
Distributions from equity method investments | 549,000 | ||
Changes in operating assets and liabilities: | |||
Real estate, held for development | 38,000 | 13,579,000 | 4,458,000 |
Restricted cash related to development activities | -5,323,000 | ||
Accounts receivable, deposits and other assets | -3,149,000 | -823,000 | -20,000 |
Deferred revenue | -211,000 | 1,853,000 | 886,000 |
Accounts payable and accrued liabilities | -1,836,000 | 725,000 | 1,977,000 |
Non-refundable option payments | -990,000 | 1,015,000 | -350,000 |
Liability for environmental remediation | -48,000 | -2,402,000 | -2,865,000 |
Income taxes receivable/payable | -3,100,000 | 1,481,000 | -83,000 |
Other liabilities | 382,000 | 92,000 | -19,000 |
Net cash (used for) provided by operating activities | -5,076,000 | 30,300,000 | 12,394,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash acquired upon acquisition of assets from Leucadia National Corporation | 13,983,000 | ||
Acquisition of real estate | -1,666,000 | -507,000 | -32,178,000 |
Purchases of investments (other than short-term) | -77,586,000 | -68,374,000 | -90,549,000 |
Proceeds from maturities of investments available for sale | 73,600,000 | 72,900,000 | 94,900,000 |
Proceeds from sale of investments | 0 | 0 | 2,600,000 |
Capital distributions from equity method investments | 668,000 | ||
Net cash provided by (used for) investing activities | 8,999,000 | 4,019,000 | -25,227,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Acquisition of noncontrolling interest | -5,000,000 | ||
Exercise of options to purchase common shares | 188,000 | ||
Excess tax benefit from exercise of stock options | 78,000 | ||
Net cash provided by financing activities | 266,000 | -5,000,000 | |
Net increase (decrease) in cash and cash equivalents | 4,189,000 | 34,319,000 | -17,833,000 |
Cash and cash equivalents, beginning of period | 57,306,000 | 22,987,000 | 40,820,000 |
Cash and cash equivalents, end of period | 61,495,000 | 57,306,000 | 22,987,000 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 5,030,000 | 2,672,000 | 2,070,000 |
Non-cash investing activities: | |||
Common stock issued for acquisition of assets from Leucadia National Corporation | $215,709,000 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation – The accompanying consolidated financial statements include the accounts of HomeFed Corporation (the “Company,”) and its controlled subsidiaries. We also own equity interests in Brooklyn Renaissance Plaza, an operating business accounted for under the equity method of accounting. We are currently engaged, directly and through our subsidiaries, in the investment in and development of residential and commercial real estate properties in California, Virginia, South Carolina, Florida, Maine and New York. All intercompany balances and transactions have been eliminated in consolidation. | |
Our main business, real estate development, is highly competitive, and there are numerous residential real estate developers and development projects operating in the same geographic areas in which we operate. In addition, the real estate industry is subject to increasing environmental, building, zoning and real estate regulations that are imposed by various federal, state and local authorities. Timing of the initiation and completion of development projects depends upon receipt of necessary authorizations and approvals. Furthermore, changes in prevailing local circumstances or applicable laws may require additional approvals, or modifications of approvals previously obtained. Delays could adversely affect our ability to complete our projects, significantly increase the costs of doing so or drive potential customers to purchase competitors’ products. Environmental laws may cause us to incur substantial compliance, mitigation and other costs, may restrict or prohibit development in certain areas and may delay completion of our development projects. Delays arising from compliance with environmental laws and regulations could adversely affect our ability to complete our projects and significantly increase development costs. Our business may also be adversely affected by inflation and is interest-rate sensitive. | |
Certain amounts have been reclassified to be consistent with the 2014 presentation. | |
Basis of Consolidation – Our policy is to consolidate all entities in which we can vote a majority of the outstanding voting stock. In addition, we consolidate entities which meet the definition of a variable interest entity for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to noncontrolling interests. All intercompany transactions and balances are eliminated in consolidation. In situations where we have significant influence, but not control, of an entity that does not qualify as a variable interest entity, we apply the equity method of accounting. | |
Critical Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities. On an on-going basis, we evaluate all of these estimates and assumptions. Actual results could differ from those estimates. | |
Profit Recognition on Sales of Real Estate – When we have an obligation to complete improvements on property subsequent to the date of sale, we utilize the percentage of completion method of accounting to record revenues and cost of sales. Under percentage of completion accounting, we recognize revenues and cost of sales based upon the ratio of development costs completed as of the date of sale to an estimate of total development costs which will ultimately be incurred, including an estimate for common areas. Revenues which cannot be recognized as of the date of sale are reported as deferred revenue on the consolidated balance sheets. | |
We believe we can reasonably estimate our future costs and profit allocation in order to determine how much revenue should be deferred. However, such estimates are based on numerous assumptions and require management’s judgment. For example, the estimate of future development costs includes an assumption about the cost of construction services for which we have no current contractual arrangement. If the estimate of these future costs proves to be too low, then we will have recognized too much profit as of the date of sale resulting in less profit to be reported as the improvements are completed. However, to date our estimates of future development costs that have been used to determine the amount of revenue to be deferred at the date of sale have subsequently been proven to be reasonably accurate. | |
Income Taxes – We provide for income taxes using the liability method. We record a valuation allowance to reduce our net deferred tax asset to an amount that we expect is more likely than not to be realized. If our estimate of the realizability of our deferred tax asset changes in the future, an adjustment to the valuation allowance would be recorded which would either increase or decrease income tax expense in such period. The valuation allowance is determined after considering all relevant facts and circumstances, and is based, in significant part, on our projection of taxable income in the future. Since any projection of future profitability is inherently uncertain, changes in the valuation allowance can be expected. | |
During 2014, we concluded that we had enough profitable, historical evidence related to the Ashville Park project to include our sales forecasts of the project into our projection of taxable income. As a result, we were able to conclude that it is more likely than not that we will be able to realize an additional portion of our net deferred tax asset; accordingly, approximately $900,000 of the deferred tax valuation allowance was released as a credit to income tax expense during 2014. | |
During 2013, we generated profits from lot sales at the San Elijo Hills and Ashville Park projects that were greater than projected as of December 31, 2012. Also, as of December 31, 2013, we had entered into agreements to sell additional lots at both projects which were expected to close during 2014. We considered its recent results and pending lot sale agreements to be positive evidence to be considered when estimating its future taxable income. As a result, we were able to conclude that it is more likely than not that we will be able to realize an additional portion of our net deferred tax asset; accordingly, approximately $1,350,000 of the deferred tax valuation allowance was released as a credit to income tax expense during 2013. | |
During 2012 we acquired the Ashville Park project, profitably sold finished lots during 2012 and entered into an agreement to sell additional lots in 2013, some of which closed during the first quarter of 2013. We believed that these sales represented positive evidence to be considered when estimating future taxable income that may be generated at the Ashville Park project. We also lowered our estimated liability for environmental remediation costs during 2012, and updated our consolidated projection of future taxable income for this activity and for recent developments at our other projects. As a result, we were able to conclude that it is more likely than not that we will be able to realize an additional portion of our net deferred tax asset; accordingly, approximately $750,000 of the deferred tax valuation allowance was released as a credit to income tax expense during 2012. | |
The projection of future taxable income is based upon numerous assumptions about the future, including future market conditions where our projects are located, regulatory requirements, estimates of future real estate revenues and development costs, future interest expense, operating and overhead costs and other factors. To the extent our actual taxable income in the future exceeds our estimate, we will recognize additional tax benefits and reduce our valuation allowance; conversely, if the actual taxable income is less than the amounts projected, an addition to the valuation allowance would be recorded that would increase tax expense in the future. Adjustments to the valuation allowance in the future can be expected. | |
We record interest and penalties, if any, with respect to uncertain tax positions as components of income tax expense. Based on our evaluation of our tax filings at December 31, 2014 and 2013, we did not record any amounts for uncertain tax positions. If any of our tax filing positions are successfully challenged, payments could be required that might be material. | |
Provision for Environmental Remediation – We record environmental liabilities when it is probable that a liability has been incurred and the amount or range of the liability is reasonably estimable. During 2002, we recorded a charge of $11,150,000 representing our estimate of the cost (including legal fees) to implement the most likely remediation alternative with respect to approximately 30 acres of undeveloped land owned by a subsidiary of Otay Land Company. The estimated liability was neither discounted nor reduced for claims for recovery from previous owners and users of the land who may be liable, and may increase or decrease based upon the actual extent and nature of the remediation required, the actual cost of the remediation, the expenses of the regulatory process, the costs of post-remediation monitoring requirements, inflation and other items. | |
We have periodically examined, and when appropriate, adjusted our liability for environmental remediation to reflect our current best estimate. A change to the current estimate could result from, among other things, that the cost to implement the remediation is different than our current estimate, that the cost of future on-going monitoring efforts is different than our current estimate, and/or requirements imposed by regulatory authorities that we did not anticipate but is nevertheless required to implement. During 2012, we revised our estimate of future remediation costs, including on-going monitoring expenses, which resulted in a reduction in the previously accrued estimate of $1,500,000. Such amount was reflected on the consolidated statement of operations as a reduction to expenses. | |
During the fourth quarter of 2012, upon receipt of required approvals, we commenced remediation activities, which were completed in February 2013. We received final approval from the County of San Diego Department of Environmental Health in June 2013; as a result, we reduced our liability for environmental remediation by $650,000. | |
Provision for Impairment Losses on Real Estate – Our real estate is carried at cost. Whenever events or changes in circumstances suggest that the carrying amount may not be recoverable, management assesses the recoverability of the carrying amount of its real estate in accordance with GAAP. | |
Some of the events or changes in circumstances that we consider as indicators of potential impairment include: (i) a change in market conditions in the local markets where we own real estate, (ii) a change in the availability of mortgages for retail buyers or a significant change in interest rates for mortgages, (iii) a change in expected use or development plans for properties, (iv) continuing operating or cash flow losses for real estate held for investment purposes, (v) an accumulation of costs in a development property that significantly exceeds its historical basis in property held long-term and (vi) a significant weather event that may have a negative impact on the property value. | |
We use varying methods to determine if impairment exists, such as considering indicators of potential impairment and analyzing expected future cash flows and comparing the expected future undiscounted cash flows of the property to the carrying value. | |
The accounting estimate related to the real estate impairment evaluation is susceptible to the use of assumptions about future sales proceeds and future expenditures. For projects under development, an estimate of future cash flows on an undiscounted basis is performed using estimated future expenditures necessary to maintain the existing project and using management’s best estimates about future sales prices and planned holding periods. | |
If a property is considered impaired, the impairment charge is determined by the amount of the property’s carrying value exceeds its fair value. We did not record any provisions for impairment losses during the years ended December 31, 2014, 2013 and 2012. | |
Purchase Price Allocation – Under current authoritative accounting guidance, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and the liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method of accounting. We record our investments based on the fair value of the identifiable assets acquired, intangible assets acquired, liabilities assumed and any noncontrolling interest in the acquired entity, as well as recognizing and measuring goodwill or a gain from a bargain purchase at the acquisition date. Assets are recorded at fair value using appraisals and valuations performed by management and independent third parties. Fair values are based on the exit price (i.e. the price that would be received in an orderly transaction to sell an asset or transfer a liability between market participants at the measurement date). We evaluate several factors, including market data for similar assets, expected cash flows discounted at risk adjusted rates and replacement cost for the assets to determine an appropriate exit cost when evaluating the fair value of our assets. We immediately expense acquisition-related costs and fees associated with business combinations. | |
Real Estate – Real estate includes all expenditures incurred in connection with the acquisition, development and construction of the property, including interest paid to third parties and property taxes. At acquisition, land costs are allocated to individual parcels or lots based on relative fair values or specific identification. Subsequent to acquisition, substantially all development costs are specifically identifiable to individual parcels or lots, or are considered allocated costs that are allocated principally based on relative sales value (principally property taxes, legal fees and consulting fees). Capitalized land costs are charged to cost of sales at the time that revenue is recognized. For Real estate held for investment, maintenance costs are expensed when incurred and depreciation is expensed on a straight-line basis over the estimated useful life of the assets or, if less, the term of the underlying lease. | |
Cash and Cash Equivalents – Cash equivalents are money market accounts and short‑term, highly liquid investments that have maturities of less than three months at the time of acquisition. | |
Restricted Cash – Restricted cash consists of amounts escrowed pursuant to the terms of our Purchase Agreement related to BRP Leasing's obligation under the master lease with Brooklyn Renaissance Plaza. Also included in restricted cash are funds held in an interest bearing bank account serving as collateral for a letter of credit for the benefit of the City of Myrtle Beach related to future development improvements planned at The Market Common. | |
Investments – Investments with maturities equal to or greater than three months at the time of acquisition and classified as available for sale are carried at fair value with unrealized gains and losses reflected as a separate component of shareholders’ equity, net of taxes. The cost of securities sold is based on specific identification. We have one investment security that is classified as a held-to-maturity investment, which we have the intention to hold to maturity and the ability to do so. It is carried at cost, less impairments, plus accreted interest. We evaluate investments with unrealized losses to determine if they experienced an other-than-temporary impairment. This evaluation is based on various factors, including length of time securities were in a loss position, ability and intent to hold investments until unrealized losses are recovered or they mature and amount of the unrealized loss. See Note 3 for more information. | |
Fair Value Hierarchy-- In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: | |
Level 1:Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | |
Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. | |
Level 3:Instruments that have little to no pricing observability as of the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | |
Investments available for sale are valued at quoted market prices. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current as of the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based upon consideration of available information, including types of financial instruments, current financial information, restrictions on dispositions, fair values of underlying financial instruments and quotations for similar instruments. | |
The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models may be made when, in management’s judgment, features of the financial instrument such as its complexity, the market in which the financial instrument is traded and risk uncertainties about market conditions require that an adjustment be made to the value derived from the models. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. | |
The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. Transfers among the levels are recognized at the beginning of each period. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. | |
Equity Method Investments – In situations where we have significant influence, but not control, of an entity we apply the equity method of accounting. Under the equity method of accounting, our share of the investee’s underlying net income or loss is recorded as income (loss) from equity method investments. The recognition of our share of the investees’ results takes into account any special rights or priorities of investors; accordingly, we employ the hypothetical liquidation at book value model to calculate our share of the investees’ profits or losses, and additionally, amortizing the difference between the fair value of the assets at the date of acquisition and the historical book basis over the remaining useful life of each asset, to calculate our share of the investment. Our equity interests in Brooklyn Renaissance Plaza are the only investments accounted for under the equity method of accounting. We are required to periodically compare an investment’s carrying value to its estimated fair value. We would recognize an impairment charge if the carrying value exceeds the estimated fair value and is determined to be other than temporary. | |
Allowance For Doubtful Accounts - We provide an allowance for doubtful accounts against the portion of accounts receivable, including straight-line rents, which is estimated to be uncollectible. Such allowances are reviewed periodically based upon our recovery experience. | |
Deferred Leasing Commissions -Deferred leasing commissions represent costs to obtain tenants at our retail and office rental properties. We amortize these charges over the original term of the lease and are reflected in Depreciation and amortization expense. | |
Intangible Assets (Liabilities), Net – Intangibles includes above market lease value and lease in place value as assets and below market lease value as a liability, all recorded at fair value at the date of Acquisition. Above and below market lease value is amortized on a straight-line basis over the remaining term of the underlying lease and is included in Rental income. Lease in place value is amortized over the term of the underlying lease and is included in Depreciation and amortization expense. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist, primarily changes in the underlying lease. | |
An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary. Impairment exists when the carrying amount exceeds its fair value. Fair value will be determined using valuation techniques consistent with what a market participant would use. | |
Sales of Real Estate – Revenues from real estate sales are recognized when a sale is closed and title transfers to the buyer, the buyer’s initial investment is adequate, any receivables are probable of collection and the usual risks and rewards of ownership have been transferred to the buyer. | |
Rental Income – Rental income is recognized on a straight-line basis over the terms of the leases. Any rent payments received in excess of the amounts recognized as revenue are deferred and reflected as Deferred revenue in the consolidated balance sheets. For those leases that provide for billing of common area maintenance, such revenue is recognized in the period that the related estimated expenses are incurred based upon the tenant lease provision. | |
Recognition of Fee Income – We may be contractually entitled to receive co-op marketing and advertising fees that are due when builders sell homes. These fees are generally based upon a fixed percentage of the homes’ selling price and are recorded as revenue when the home is sold. | |
Revenue and Profit Sharing Arrangements – Certain of our lot purchase agreements with homebuilders include provisions that entitle us to a share of the revenues or profits realized by the homebuilders upon their sale of the homes, after certain thresholds are achieved. The actual amount which could be received by us is generally based on a formula and other specified criteria contained in the lot purchase agreements, and are generally not payable and cannot be determined with reasonable certainty until the builder has completed the sale of a substantial portion of the homes covered by the lot purchase agreement. Our policy is to accrue revenue earned pursuant to these agreements when amounts are fully earned and payable pursuant to the lot purchase agreements, which is classified as Sales of real estate. Any amounts received from homebuilders prior to then are deferred. | |
Option Deposits – Option payments received from prospective buyers are recognized as liabilities until the title of the real estate is transferred or the option is forfeited, or in the case of refundable deposits, the prospective buyer decides not to purchase the real estate and the deposit is returned. | |
Capitalization of Interest and Real Estate Taxes – Interest and real estate taxes attributable to land and property construction are capitalized and added to the cost of those properties when active development begins and ends when the property development is fully completed and ready for its intended use. | |
Farming Revenues and Expenses – Income from farming related activities are recognized when grapes are sold, and expenses from farming related activities are recognized when incurred. | |
Share-Based Compensation – The cost of all share-based payments to employees, including grants of employee stock options and warrants, are recognized in the financial statements based on their fair values. The cost is recognized as an expense over the vesting period of the award on the straight-line basis. The fair value of each award is estimated at the date of grant using the Black-Scholes option pricing model. | |
Recently Adopted or Issued Accounting Pronouncements – In January 2014, we adopted new Financial Accounting Standards Board (“FASB”) guidance that requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or tax credit carryforward, unless such net operating loss carryforward, similar tax loss or tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes resulting from the disallowance of a tax position. In the event that the tax position is disallowed or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit shall be presented in the financial statements as a liability and shall not be combined with deferred tax assets. The adoption of this guidance did not have an impact on our consolidated financial statements. | |
In April 2014, the FASB issued new guidance on the reporting of discontinued operations. The new guidance requires that disposal of a component of an entity or a group of components of an entity be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, and would require expanded disclosures. This guidance will be effective prospectively within annual periods beginning on or after December 15, 2014. The adoption of this guidance is not expected to have a material impact on our financial statements. | |
In May 2014, the FASB issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This guidance will be effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact this new guidance will have on our consolidated financial statements. | |
In February 2015, the FASB issued new guidance that amends current consolidation guidance including changes to both the variable and voting interest models used to evaluate whether an entity should be consolidated. This guidance will be effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. We are evaluating the impact this new guidance will have on our consolidated financial statements. | |
Acquisition
Acquisition | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Acquisition [Abstract] | ||||||
Acquisition | 2. ACQUISITION | |||||
On February 28, 2014, we entered into an agreement with Leucadia National Corporation (“Leucadia”) pursuant to which we purchased substantially all of Leucadia’s real estate properties and operations, its membership interests in Brooklyn Renaissance Holding Company LLC (“BRP Holding”) and Brooklyn Renaissance Hotel LLC (“BRP Hotel,” and collectively with BRP Holding, “Brooklyn Renaissance Plaza”), and cash in exchange for 7.5 million newly issued unregistered shares of HomeFed common stock (the “Acquisition”). On March 28, 2014, we completed the initial closing of the Acquisition, which consisted of all of the assets to be acquired except for a portion of Leucadia’s membership interest in BRP Holding, and cash of approximately $14,000,000 (including cash acquired as part of working capital of approximately $1,500,000), subject to certain post-closing adjustments. At the initial closing, we issued to Leucadia 6,986,337 shares of our unregistered common stock. During September 2014, we acquired the balance of Leucadia’s membership interest in BRP Holding in exchange for 513,663 additional shares of our unregistered common stock. | ||||||
The entities and assets acquired from Leucadia are described below. Except for the 90% partnership interest in each of Pacho Limited Partnership and San Luis Bay Limited Partnership and the membership interests in Brooklyn Renaissance Plaza, we acquired 100% of the equity interests of the entities listed below. All of the entities are consolidated by us, except for the membership interests in Brooklyn Renaissance Plaza, which are accounted for under the equity method of accounting. We did not assume any debt or liabilities in the transaction other than liabilities incurred in the normal course of business. | ||||||
Entities/Assets Acquired | Business | Location | ||||
BEI-Beach, LLC; LUK-MB2, LLC; LUK-MB3, LLC; LUK-MB5, LLC; Palm Isle Capital, LLC (collectively, “The Market Common”) | Fully developed mixed-used retail, commercial and residential lifestyle center properties that are being leased; land for commercial and residential development | Myrtle Beach, | ||||
South Carolina | ||||||
Panama City BEI Holdings, LLC and its subsidiaries (the “SweetBay Project”) | Mixed-use master planned community on 700 acres of land under development | Panama City, Florida | ||||
North East Point, LLC, HFC-Glen Cove, LLC, HFC-Rockport, LLC and Maine Seaboard Realty LLC (collectively, the “Maine Projects”) | 160 acres of land under development for residential lots; and various mixed used buildings | Islesboro, Maine, Brewster Point, Maine and Rockport, Maine | ||||
BRP Leasing LLC (“BRP Leasing”) | Indirect obligor of certain leased office space at Brooklyn Renaissance Plaza and beneficiary of related subleases | Brooklyn, New York | ||||
90% partnership interests in Pacho Limited Partnership and San Luis Bay Limited Partnership (“Pacho Project”) | Long-term leasehold interest in 2,369 acres of unentitled land | San Luis Obispo County, California | ||||
BRP Hotel | 25.8% membership interest in a 665 room Marriott hotel | Brooklyn, New York | ||||
BRP Holding | 61.25% membership interest in a 850,000 square foot office building complex and 888 space parking garage | Brooklyn, New York | ||||
At December 31, 2014, Leucadia’s aggregate interest in our common stock, including Leucadia’s approximate 31% interest owned prior to the Acquisition, is approximately 65%. Pursuant to a stockholders agreement between us and Leucadia, Leucadia has agreed to limit its voting rights such that it will not have a majority voting interest in the Company. | ||||||
The Acquisition was accounted for using the acquisition method of accounting. The aggregate purchase price of approximately $215,700,000 (or approximately $29 per our common share included in the consideration) was based on the fair value of the assets and liabilities acquired in the transaction and represent the best estimates of management. The following table reflects the allocation of the purchase price to the assets acquired and liabilities assumed at the acquisition date (in thousands): | ||||||
Assets | ||||||
Real estate held for development | $ | 38,292 | ||||
Real estate held for investment | 41,187 | |||||
Cash | 13,983 | |||||
Restricted cash | 1,096 | |||||
Investment held to maturity | 10,619 | |||||
Equity method investments | 102,743 | |||||
Intangible assets | 14,960 | |||||
Accounts receivable, deposits and other assets | 14,225 | |||||
Total assets | $ | 237,105 | ||||
Accounts payable | 2,023 | |||||
Below market lease contract intangibles | 5,588 | |||||
Net deferred tax liability | 11,843 | |||||
Other liabilities | 232 | |||||
Total liabilities | 19,686 | |||||
Noncontrolling interests | 1,710 | |||||
Net assets acquired | $ | 215,709 | ||||
GAAP specifies a hierarchy to classify fair value measurements as Level 1, Level 2 or Level 3, based on the degree to which the inputs to valuation techniques are observable. Level 3 valuations rely on inputs that are both significant to the fair value measurement and unobservable. With the exception of working capital components, the fair values of assets and liabilities acquired were determined using inputs that are principally unobservable, and as such are considered to be Level 3 valuations. | ||||||
Our management employed an independent third-party appraiser to assist us in determining the fair values of the assets acquired and liabilities assumed. The fair values of the individual real estate projects and investments were estimated by applying various valuation techniques including the income, market and cost approach. The income approach included discounted cash flow analyses, the market approach included comparable sales and rental information in local and national markets, and the cost approach incorporated replacement cost information. Generally, all three valuation techniques were used to determine the fair values of real estate assets and equity method investments, the income approach was used to determine the fair value of the investment held to maturity and the market approach was used to determine the fair value of intangibles. The more significant assumptions include discount rates ranging from 7% to 22%, and terminal values based on direct cap rates ranging from 6.5% to 9.5%. The fair values of noncontrolling interests, which represent 10% of the partnership interests in the Pacho Project, were based on the fair values determined for the entire project. | ||||||
Amounts allocated to intangibles and the amortization periods are as follows (in thousands): | ||||||
Amortization | ||||||
Amount | (in years) | |||||
Above market lease contracts | $ | 10,874 | 1 to 24 | |||
Lease in place value | 4,086 | 1 to 24 | ||||
Intangible assets | $ | 14,960 | ||||
Below market lease contracts | $ | 5,588 | 1 to 24 | |||
Aggregate revenues and pre-tax income reflected in the consolidated statement of operations for the acquired assets were $18,950,000 and $800,000 during 2014, respectively. We expensed $2,200,000 for costs related to the Acquisition during 2014 reflected in General and administrative expenses. | ||||||
Unaudited pro forma operating results for the years ended December 31, 2014 and 2013, assuming the Acquisition had occurred on January 1, 2013, are as follows (in thousands, except per share amounts): | ||||||
2014 | 2013 | |||||
Revenues | $ | 64,604 | $ | 80,317 | ||
Net income attributable to HomeFed | ||||||
common shareholders | $ | 3,454 | $ | 7,188 | ||
Basic and diluted earnings per common share | ||||||
attributable to HomeFed common shareholders | $ | 0.22 | $ | 0.47 | ||
Pro forma adjustments principally reflect the amortization of acquired intangibles and the below market lease contracts, as well as adjustments to historical depreciation expense to account for the difference between the fair value of the acquired assets and their historical cost. In addition, our share of Brooklyn Renaissance Plaza’s results is less than historical amounts, reflecting our share of additional depreciation and amortization expenses for Brooklyn Renaissance Plaza due to its fair value being greater than historical cost. Actual acquisition costs incurred during 2014 have been removed from the pro forma 2014 period and are reflected in the pro forma 2013 period. The unaudited pro forma data is not indicative of future results of operations or what would have resulted if the Acquisition had actually occurred as of January 1, 2013. | ||||||
Investments
Investments | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||
Investments | 3. INVESTMENTS | |||||||||||||||||||||
Available for Sale: | ||||||||||||||||||||||
At December 31, 2014 and 2013, the Company’s investments consisted of fixed income securities issued by the U.S. Government, which were classified as available for sale. All of the Company’s investments mature in one year or less. The par value, amortized cost, gross unrealized gains and losses and estimated fair value of these investments as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||||||||
Active Markets | Other | |||||||||||||||||||||
Gross | Gross | for | Observable | Total | ||||||||||||||||||
Par | Amortized | Unrealized | Unrealized | Identical Assets | Inputs | Fair Value | ||||||||||||||||
Value | Cost | Gains | Losses | (Level 1) | (Level 2) | Measurements | ||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
U.S. Treasury securities | $ | 35,900 | $ | 35,897 | $ | 1 | $ | - | $ | 35,898 | $ | - | $ | 35,898 | ||||||||
31-Dec-13 | ||||||||||||||||||||||
U.S. Treasury securities | $ | 31,900 | $ | 31,894 | $ | 2 | $ | - | $ | 31,896 | $ | - | $ | 31,896 | ||||||||
There were no proceeds from sales of investments classified as available for sale during 2014 and 2013. Proceeds from sales of investments classified as available for sale were $2,600,000 during 2012. | ||||||||||||||||||||||
The difference between the par value and amortized cost of an individual investment is accreted to interest income over the remaining life of the investment using the effective interest rate method. | ||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||
In connection with The Market Common, Leucadia purchased bonds designated as “Tax Increment Bonds (Myrtle Beach Air Force Base Redevelopment Project Area, Junior Lien Series 2006B)” (the “Series 2006B Bonds”) issued by the City of Myrtle Beach, South Carolina (the “City”). We acquired these bonds as part of the Acquisition. Interest and principal on the Series 2006B Bonds are special obligations of the City payable only from a specified tax increment to be deposited in a special revenue account pursuant to an ordinance enacted by the City Council. The Series 2006B Bonds are junior to Series 2006A Bonds issued by the City in the original principal amount of $30,795,000. Interest and principal on the Series 2006B Bonds will not be paid until there is sufficient tax increment to service the interest and principal due on the Series 2006A Bonds and to establish various reserves and deposits. The tax increment that is pledged to service both bond series is generated from developed and to be developed residential and commercial property owned by us, and from two other large residential development projects adjacent to our project owned by third parties that are currently under development. The Series 2006B Bonds bear interest at the rate of 7.5% per annum, payable semi-annually. Currently there is not sufficient tax increment to fully pay interest on the Series 2006B Bonds. The Series 2006B Bonds mature in October 2031. | ||||||||||||||||||||||
At acquisition on March 28, 2014, we recorded the Series 2006B bonds at fair value of $10,619,000 based on expected future cash flows discounted at 10%. The Series 2006B Bonds have been classified as held-to-maturity investments as the Company has the positive intent and ability to hold the securities to maturity. The principal amount outstanding and accrued interest aggregated approximately $14,000,000 at December 31, 2014. The par value, amortized cost and estimated fair value of this investment as of December 31, 2014 are as follows (in thousands): | ||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||||||||
Active Markets | Other | |||||||||||||||||||||
for | Observable | Unobservable | Total | |||||||||||||||||||
Par | Amortized | Identical Assets | Inputs | Inputs | Fair Value | |||||||||||||||||
Value | Cost | (Level 1) | (Level 2) | (Level 3) | Measurements | |||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
Non-public bond | $ | 10,050 | $ | 11,368 | $ | - | $ | - | $ | 11,368 | $ | 11,368 | ||||||||||
Real_Estate
Real Estate | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Real Estate [Abstract] | ||||||
Real Estate | 4. REAL ESTATE | |||||
Real estate carrying values are as follows (in thousands): | ||||||
December 31, | ||||||
2014 | 2013 | |||||
Real estate held for development: | ||||||
Otay Ranch project | $ | 41,809 | $ | 38,848 | ||
San Elijo Hills project | 27,080 | 35,915 | ||||
Pacho project | 17,496 | - | ||||
Fanita Ranch property | 15,440 | 14,688 | ||||
SweetBay project | 10,717 | - | ||||
Maine projects | 9,023 | - | ||||
Ashville Park project | 8,616 | 9,469 | ||||
The Market Common | 6,909 | - | ||||
Rampage property | 6,211 | 4,545 | ||||
Total | $ | 143,301 | $ | 103,465 | ||
Real estate held for investment, gross | ||||||
Land: | ||||||
The Market Common | $ | 3,744 | $ | - | ||
Maine projects | 474 | - | ||||
Buildings: | ||||||
The Market Common | 35,783 | - | ||||
San Elijo Hills project | 4,045 | 4,045 | ||||
Maine projects | 663 | - | ||||
SweetBay project | 523 | - | ||||
45,232 | 4,045 | |||||
Less: Accumulated depreciation | -1,341 | -438 | ||||
Real estate held for investment, net | $ | 43,891 | $ | 3,607 | ||
Buildings classified as Real estate held for investment are depreciated over estimated useful lives ranging from 2 to 43 years. | ||||||
Intangible_Assets_Net
Intangible Assets, Net | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Intangible Assets, Net [Abstract] | |||||
Intangible Assets, Net | |||||
5. INTANGIBLE ASSETS, NET | |||||
A summary of intangible assets, net at December 31, 2014 is as follows (in thousands): | |||||
Amortization | |||||
Amount | (in years) | ||||
Above market lease contracts | $ | 9,151 | 1 to 24 | ||
Lease in place value | 3,045 | 1 to 24 | |||
Intangible assets | $ | 12,196 | |||
Below market lease contracts | $ | 4,760 | 1 to 24 | ||
The amortization of above and below market lease contracts is recognized in Rental income, and the lease in place intangible is amortized over the life of the related lease and reflected in Depreciation and amortization expenses. Amortization expense on intangible assets was $1,050,000 from the date of acquisition to December 31, 2014. The estimated future amortization expense for the lease in place intangible asset for each of the next five years is as follows: 2015 - $750,000; 2016 - $550,000; 2017 - $500,000; 2018 - $300,000; 2019 - $150,000 and thereafter - $800,000. | |||||
Equity_Method_Investments
Equity Method Investments | 12 Months Ended | ||
Dec. 31, 2014 | |||
Equity Method Investments [Abstract] | |||
Equity Method Investments | 6. EQUITY METHOD INVESTMENTS | ||
At December 31, 2014, our equity method investments are comprised of the following (in thousands): | |||
2014 | |||
BRP Holding | $ | 76,478 | |
BRP Hotel | 24,750 | ||
Total | $ | 101,228 | |
Income related to equity investment companies includes the following for the period from the acquisition date to December 31, 2014 (in thousands): | |||
2014 | |||
BRP Holding | $ | -847 | |
BRP Hotel | 549 | ||
Total | $ | -298 | |
The following table provides summarized data with respect to our equity method investments for the period from the acquisition date to December 31, 2014 (in thousands): | |||
2014 | |||
Assets | $ | 220,926 | |
Liabilities | $ | 213,061 | |
Total revenues | $ | 102,637 | |
Income from continuing operations before extraordinary items | $ | 7,084 | |
Net income | $ | 7,084 | |
Our (losses) related to equity investment companies | $ | -298 | |
We have not provided any guarantees, nor are we contingently liable for any of the liabilities reflected in the above table. All such liabilities are non-recourse to us. Our exposure to adverse events at the investee companies is limited to the book value of the investment. | |||
There are no undistributed earnings of the equity investment companies accounted for under the equity method of accounting included in our consolidated retained earnings at December 31, 2014. | |||
Noncontrolling_Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2014 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 7. NONCONTROLLING INTEREST |
Our ownership of San Elijo Hills project is through our indirect 85% owned subsidiary, San Elijo Ranch, Inc. (“SERI”). Pursuant to a stockholders’ agreement with the holders of the noncontrolling interests in SERI, we loan funds to SERI and charge a 12% annual rate. Once this loan is fully repaid, the noncontrolling shareholders of SERI are entitled to 15% of future cash flows distributed to shareholders. As of December 31, 2014, approximately $11,000,000 has been recognized for the SERI noncontrolling interests. Amounts recorded for the noncontrolling interests have been reduced for income taxes calculated pursuant to tax sharing agreements. | |
In December 2012, we purchased an indirect 20% noncontrolling interest in SERI for $5,000,000, increasing our effective interest in SERI from 68% to 85%. The amount paid was $4,450,000 less than the amount recorded for the noncontrolling interest; such amount was credited to additional paid in capital. As part of the purchase, pending litigation commenced by the holder of the purchased noncontrolling interest against the Company was settled without any payment. | |
At December 31, 2014, noncontrolling interest includes $1,650,000 for the 10% minority shareholder in the Pacho project. | |
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Stock Incentive Plans [Abstract] | ||||||||||
Stock Incentive Plans | 8. STOCK INCENTIVE PLANS | |||||||||
On August 13, 2014, the Board of Directors adopted the RSU Opportunity Plan (the “RSU Plan”) and approved a RSU Opportunity Notice (the “Notice”). An aggregate of 100,000 shares of Common Stock is available to be issued under the RSU Plan to our executive officers (the “Participants”). Participants may be granted restricted stock units (“RSUs”) based on satisfaction of established performance criteria at the end of the performance period specified in the RSU Plan. The performance period ends on December 31, 2016, and the degree which performance criteria has been satisfied and the actual amount of any awards to be granted are in the sole discretion of the Board of Directors. In the event that the Board of Directors determines that awards should be granted, the Board will issue awards no later than April 1, 2017. No awards have been made under the RSU Plan. | ||||||||||
Under our Amended and Restated 1999 Stock Incentive Plan (the “Plan”), we may grant options, stock appreciation rights and restricted stock to non-employee directors, certain non-employees and employees up to a maximum grant of 30,000 shares to any individual in a given taxable year. Pursuant to the Plan, each director of the Company is automatically granted options to purchase 1,000 shares on the date on which the annual meeting of stockholders is held. In August 2004, following shareholder approval, the Plan was amended to, among other things, increase the number of shares of common stock available for issuance by 300,000 shares. The Plan provides for the issuance of options and rights at not less than 100% of the fair market value of the underlying stock at the date of grant. Options granted to employees and certain non-employees generally become exercisable in five equal instalments starting one year from the date of grant and must be exercised within six years from the date of grant. Options granted to directors generally become exercisable in four equal instalments starting one year from the date of grant and must be exercised within five years from the date of grant. No stock appreciation rights have been granted. As of December 31, 2014, 398,400 shares were available for grant under the Plan. | ||||||||||
A summary of activity with respect to the Plan for 2014, 2013 and 2012 is as follows: | ||||||||||
Weighted- | ||||||||||
Common | Weighted- | Average | ||||||||
Shares | Average | Remaining | Aggregate | |||||||
Subject to | Exercise | Contractual | Intrinsic | |||||||
Option | Price | Term | Value | |||||||
Balance at January 1, 2012 | 104,500 | $ | 27.50 | |||||||
Granted | 6,000 | $ | 22.35 | |||||||
Cancelled | -14,000 | $ | 41.18 | |||||||
Balance at December 31, 2012 | 96,500 | $ | 25.19 | |||||||
Granted | 6,000 | $ | 32.30 | |||||||
Cancelled | -8,000 | $ | 36.44 | |||||||
Balance at December 31, 2013 | 94,500 | $ | 24.69 | |||||||
Granted | 7,000 | $ | 58.00 | |||||||
Exercised | -8,000 | $ | 23.50 | $ | 266,850 | |||||
Balance at December 31, 2014 | 93,500 | $ | 27.29 | 1.8 years | $ | 1,747,100 | ||||
Exercisable at December 31, 2014 | 64,600 | $ | 24.43 | 1.4 years | $ | 1,328,750 | ||||
We recorded compensation cost related to stock incentive plans of $200,000, $190,000 and $180,000 for the years ended December 31, 2014, 2013 and 2012, respectively; such costs reduced net income by $120,000, $110,000 and $110,000 for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, total unrecognized compensation cost related to nonvested share-based compensation plans was $200,000; this cost is expected to be recognized over a weighted-average period of 1.2 years. | ||||||||||
The following summary presents the weighted-average assumptions used for the Black-Scholes option pricing model to determine the fair value for each of the stock option grants made during each of the three years in the period ended December 31: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Risk free rate | 1.48% | 1.20% | 0.56% | |||||||
Expected volatility | 29.60% | 30.85% | 46.90% | |||||||
Expected dividend yield | 0.0% | 0.0% | 0.0% | |||||||
Expected life | 4.3 years | 4.3 years | 4.3 years | |||||||
Fair value per grant | $ | 15.34 | $ | 8.70 | $ | 8.49 | ||||
The expected life assumptions were based on historical behavior for the awards identified. The expected volatility was based on the historical behavior of the Company’s stock price. | ||||||||||
In July 2004, the Board of Directors approved the repurchase of up to 500,000 shares of our common stock. In 2008, we purchased 394,931 shares of our common stock for approximately $5,900,000 in a private transaction with an unrelated party. During 2009, we purchased 478 shares of our common stock in an open market transaction in accordance with the Company’s repurchase plan. After considering these transactions, we can repurchase up to 104,591 shares of common stock without additional board approval. Repurchased shares would be available for, among other things, use in connection with our stock option plan. The shares may be purchased from time to time, subject to prevailing market conditions, in the open market, in privately negotiated transactions or otherwise. Any such purchases may be commenced or suspended at any time without prior notice. | ||||||||||
Sales_Of_Real_Estate
Sales Of Real Estate | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Sales Of Real Estate [Abstract] | ||||||||||
Sales Of Real Estate | 9. SALES OF REAL ESTATE | |||||||||
Revenues from sales of real estate for each of the three years in the period ended December 31, is comprised of the following (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
San Elijo Hills project: | ||||||||||
Developed lots | $ | 10,468 | $ | 37,370 | $ | 20,649 | ||||
Single family homes | 15,279 | - | - | |||||||
Revenues from profit sharing agreements | 1,784 | - | - | |||||||
Residential condominium units at San Elijo Hills | - | 689 | - | |||||||
Ashville Park project: | ||||||||||
Developed lots | 6,298 | 12,038 | 7,544 | |||||||
The Market Common: | ||||||||||
Developed lots | 1,241 | - | - | |||||||
Revenues from profit sharing agreements | 567 | - | - | |||||||
Total | $ | 35,637 | $ | 50,097 | $ | 28,193 | ||||
At the time we close on sales of real estate, a portion of the revenue is initially deferred if we are required to make significant improvements to the property. For the years ended December 31, 2014 and 2013, the activity in the deferred revenue account is as follows (in thousands): | ||||||||||
2014 | 2013 | |||||||||
Deferred revenue balance at January 1, | $ | 2,739 | $ | 886 | ||||||
Revenue deferred on the date of sale | 1,062 | 2,660 | ||||||||
Deferred revenue recognized in operations | -1,273 | -807 | ||||||||
Deferred revenue balance at December 31, | $ | 2,528 | $ | 2,739 | ||||||
As of December 31, 2014, we estimate that we will spend approximately $1,550,000 to complete the required improvements, including costs related to common areas. We estimate these improvements will be substantially complete by the end of 2015. | ||||||||||
As of February 6, 2015, we had entered into agreements to sell 37 lots at the Ashville Park project to homebuilders for net cash consideration of $5,200,000 and 47 single family lots for $1,650,000 and 53 multi-family lots for $1,350,000 at The Market Common to a homebuilder. A non-refundable option deposit of $25,000 related to The Market Common was transferred from Leucadia to us as part of the Acquisition. | ||||||||||
Other_Results_Of_Operations
Other Results Of Operations | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Interest And Other Income [Abstract] | ||||||||||
Other Results Of Operations | 10. OTHER RESULTS OF OPERATIONS | |||||||||
Interest and other income for each of the three years in the period ended December 31, consists of the following (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
Interest income | $ | 914 | $ | 55 | $ | 79 | ||||
Gain on settlement of a lawsuit | - | 764 | - | |||||||
Gain on settlement of a contract dispute | - | - | 15 | |||||||
Management fee income from Leucadia | 45 | - | - | |||||||
Other | 115 | 70 | 13 | |||||||
Total | $ | 1,074 | $ | 889 | $ | 107 | ||||
Advertising costs included in general and administrative expenses were $600,000, $650,000 and $650,000 for 2014, 2013 and 2012, respectively. | ||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Income Taxes | 11. INCOME TAXES | |||||||||
The benefit (provision) for income taxes for each of the three years in the period ended December 31, was as follows (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
State income taxes-- current | $ | -428 | $ | -1,212 | $ | -642 | ||||
State income taxes-- deferred | 36 | -340 | -389 | |||||||
Federal income taxes-- current | -1,501 | -2,905 | -1,337 | |||||||
Federal income taxes-- deferred | 410 | -2,041 | -1,712 | |||||||
$ | -1,483 | $ | -6,498 | $ | -4,080 | |||||
Current federal income taxes for 2013 and 2012 principally relates to federal alternative minimum tax. | ||||||||||
The table below reconciles the expected statutory federal income tax to the actual income tax provision (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected federal income tax provision | $ | -2,175 | $ | -6,721 | $ | -4,029 | ||||
State income taxes, net of federal income tax benefit | -255 | -1,009 | -670 | |||||||
Decrease in deferred tax valuation allowance | 897 | 1,360 | 742 | |||||||
Permanent differences | 115 | -77 | -61 | |||||||
Other | -65 | -51 | -62 | |||||||
Actual income tax provision | $ | -1,483 | $ | -6,498 | $ | -4,080 | ||||
At December 31, 2014 and 2013, the net deferred tax asset (liability) consisted of the following (in thousands): | ||||||||||
2014 | 2013 | |||||||||
Deferred Tax Asset: | ||||||||||
Land basis | $ | 2,423 | $ | 3,503 | ||||||
Minimum tax credit carryovers | 34,311 | 35,349 | ||||||||
Other, net | 1,589 | 1,860 | ||||||||
38,323 | 40,712 | |||||||||
Valuation allowance | -33,402 | -34,299 | ||||||||
4,921 | 6,413 | |||||||||
Deferred Tax Liability: | ||||||||||
Buildings | -6,930 | - | ||||||||
Leaseholds | -2,975 | - | ||||||||
-9,905 | - | |||||||||
Net deferred tax asset (liability) | $ | -4,984 | $ | 6,413 | ||||||
As discussed above, during 2014, 2013 and 2012 we were able to conclude that it is more likely than not that we will be able to realize an additional portion of our net deferred tax asset; accordingly, approximately $900,000, $1,350,000 and $750,000 of the deferred tax valuation allowance was released as a credit to income tax expense during 2014, 2013 and 2012, respectively. | ||||||||||
The valuation allowance reserves for a substantial portion of our alternative minimum tax credit carryovers, which have no expiration date. Minimum tax credit carryovers do not offset alternative minimum tax; however, they are able to reduce our federal income tax rate to 20% in any given year. In order to fully utilize its alternative minimum tax credit carryovers, we would have to generate an additional $215,000,000 of taxable income above our current estimate to fully utilize all of the credits. We have reserved for this benefit in the valuation allowance. | ||||||||||
We do not have any amounts in our consolidated balance sheet for unrecognized tax benefits related to uncertain tax positions at December 31, 2014 and 2013. The statute of limitations with respect to the Company’s federal income tax returns has expired for all years through 2010 and with respect to California state income tax returns has expired for all years through 2009. | ||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Earnings Per Share | 12. EARNINGS PER SHARE | |||||||||
Basic earnings per share of common stock was calculated by dividing net income by the sum of the weighted average number of common shares outstanding, and for diluted earnings per share, the incremental weighted average number of shares issuable upon exercise of outstanding options for the periods they were outstanding. The treasury stock method is used for these calculations. The numerators and denominators used to calculate basic and diluted earnings per share for 2014, 2013 and 2012 are as follows (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
Numerator – net income attributable to HomeFed Corporation common shareholders | $ | 3,886 | $ | 11,268 | $ | 6,022 | ||||
Denominator for basic earnings per share– weighted average shares | 13,364 | 7,880 | 7,880 | |||||||
Stock options | 38 | 13 | 1 | |||||||
Denominator for diluted earnings per share– weighted average shares | 13,402 | 7,893 | 7,881 | |||||||
Options to purchase 4,400, 6,000 and 85,500 weighted-average shares of common stock were outstanding during the years ended December 31, 2014, 2013 and 2012, respectively, but were not included in the computation of diluted per share amounts as the effect was antidilutive. | ||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies [Abstract] | |||||
Commitments And Contingencies | 13. COMMITMENTS AND CONTINGENCIES | ||||
BRP Leasing is the indirect obligor under a lease for office space at BRP Holding. See Note 14 for information concerning BRP Leasing’s minimum annual rental expense. | |||||
Future minimum annual rental income (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) from real estate held for investment are aggregated as follows at December 31, 2014 (in thousands): | |||||
2015 | $ | 4,246 | |||
2016 | 4,235 | ||||
2017 | 4,127 | ||||
2018 | 3,094 | ||||
2019 | 2,430 | ||||
Thereafter | 16,931 | ||||
$ | 35,063 | ||||
A school at the SweetBay Project has an outstanding loan of $5,525,000 for which we have pledged 42 acres of land as collateral; although we are not obligated to repay the loan should the school fail to do so, we could lose the land we have pledged as collateral. | |||||
Our corporate office space is leased under a non-cancellable lease that expires in October 2018. Rental expense (net of sublease income) was $250,000, $350,000 and $350,000, respectively, for 2014, 2013 and 2012. Future minimum annual rentals (exclusive of real estate, maintenance and other charges) are approximately $250,000 per year for the remainder of the lease term. A portion of this space is leased to Leucadia; see Note 14 for more information. | |||||
We are required to obtain infrastructure improvement bonds primarily for the benefit of the City of San Marcos (the “City”) prior to the beginning of lot construction work and warranty bonds upon completion of such improvements in the San Elijo Hills project. These bonds provide funds primarily to the City in the event we are unable or unwilling to complete certain infrastructure improvements in the San Elijo Hills project. Leucadia is contractually obligated to obtain these bonds on behalf of the project pursuant to the terms of agreements entered into when the project was acquired by us. We are responsible for paying all third party fees related to obtaining the bonds. Should the City or others draw on the bonds for any reason, one of our subsidiaries would be obligated to reimburse Leucadia for the amount drawn. As of December 31, 2014, the amount of outstanding bonds was approximately $4,900,000, none of which has been drawn upon. | |||||
We are also required to obtain infrastructure improvement bonds for the benefit of the City of Virginia Beach in connection with the Ashville Park project. As of December 31, 2014, the amount of outstanding bonds was approximately $1,200,000, none of which has been drawn upon. | |||||
The Market Common is required to provide a letter of credit for the benefit of the City of Myrtle Beach to secure the completion of certain infrastructure improvements in the amount of $5,000,000. Prior to closing of the Acquisition, we were required to replace the existing letter of credit. We placed $5,000,000 on deposit with a qualified financial institution to obtain the replacement letter of credit; such amount is reflected as restricted cash. | |||||
BRP Leasing is required to keep a minimum of $500,000 on deposit in an escrow account to secure its lease obligations. At December 31, 2014, $1,400,000 was in the escrow account and is classified as restricted cash. | |||||
The Company has purchased a $10,000,000 excess insurance policy that provides coverage for general liability claims relating to homes sold at the San Elijo Hills project through August 1, 2011. In 2012, we purchased a new $1,000,000 primary insurance policy and $10,000,000 excess insurance policy that provides coverage for general liability claims relating to unsold lots as of August 1, 2012. In 2013, we purchased a new $1,000,000 primary insurance policy that provides coverage for general liability claims relating to unsold lots as of August 1, 2013. In March 2012, we purchased a $1,000,000 primary policy and $10,000,000 excess policy that provide coverage for general liability claims related to homes sold at the Ashville Park project that expires in March 2015. No claims have ever been made under these policies. In addition, we are indemnified by our homebuilders and are named an additional insured by any contractor who works on the property. | |||||
We agreed to indemnify Leucadia for certain lease obligations of BRP Leasing that were assumed from a former subsidiary of Leucadia that was sold to a third party prior to the Acquisition. The former subsidiary of Leucadia remains the primary obligor under the lease obligations and Leucadia agreed to indemnify the third party buyer. The primary lease expires in 2018 and the aggregate amount of lease obligations as of December 31, 2014 was approximately $41,200,000 of which includes approximately $12,200,000 projected operating expenses and taxes related to the real estate. Substantially all of the space under the primary lease has been sublet to various third-party tenants for the full length of the lease term in amounts in excess of the obligations under the primary lease. | |||||
We are subject to litigation which arises in the course of its business. We do not believe that the ultimate resolution of any such matters will materially affect our consolidated financial position, our consolidated results of operations or liquidity. | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Related Party Transactions | |||||
14. RELATED PARTY TRANSACTIONS | |||||
Brooklyn Renaissance Plaza | |||||
As discussed above, BRP Holding is the developer and owner of an 850,000 square foot office tower and parking garage located in Brooklyn, NY. We own a non-controlling 61.25% interest in the office tower and garage; the remaining interest in the office tower and garage is held by MWR L.L.C. (“MWR”). | |||||
Prior to the construction of the project, Empire Insurance Company (“Empire”), a former subsidiary of Leucadia, entered into a twenty year master lease for nine floors in the office tower (approximately 286,000 square feet) that expires in October 2018. Empire immediately subleased four of the floors to Leucadia under the same terms and rates Empire committed to under the master lease. During 2000 and 2001, Empire subleased the remaining five floors to third party tenants for a term concurrent with the end of the master lease at amounts in excess of the rent Empire was obligated to pay under the master lease. | |||||
MWR Associates (“Associates”), an affiliate of MWR, has the right to sublease two floors of the office tower. Leucadia and Associates entered into a pooling agreement, pursuant to which the subleasing of Leucadia’s four floors and Associates two floors would be jointly managed; sublease income and related expenses are shared pro rata between the parties based on the floors contributed to the pooling agreement. In connection with the sale of Empire to a third party, all of Empire’s and Leucadia’s rights and obligations under the master lease and subleases were assigned to and assumed by BRP Leasing. In connection with the Acquisition, Leucadia assigned its interest in the pooling agreement to HomeFed. | |||||
Included in accounts receivable, deposits and other assets is $2,500,000 representing BRP Leasing’s share of undistributed amounts under the pooling agreement at December 31, 2014. For the year ended December 31, 2014, rental income includes BRP Leasing’s share of the pooling agreement of $3,950,000, and rental income includes $6,150,000 of sublease income for the five floors originally sublet by Empire. Rental income includes non-cash amount of $1,300,000 of amortization related to purchase price accounting. For the year ended December 31, 2014, rental operating expenses includes rent paid to BRP Holding (for all nine floors) of $7,950,000. | |||||
Future minimum annual rental income (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) from subleasing office space and participation in the pooling agreement is as follows at December 31, 2014 (in thousands): | |||||
2015 | $ | 11,986 | |||
2016 | 12,129 | ||||
2017 | 12,299 | ||||
2018 | 10,266 | ||||
2019 | - | ||||
Thereafter | - | ||||
$ | 46,680 | ||||
Future minimum annual rental expense (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) that BRP Leasing is obligated to pay rent to BRP Holding for office space is as follows at December 31, 2014 (in thousands): | |||||
2015 | $ | 7,561 | |||
2016 | 7,561 | ||||
2017 | 7,561 | ||||
2018 | 6,301 | ||||
2019 | - | ||||
Thereafter | - | ||||
$ | 28,984 | ||||
Leucadia | |||||
A portion of our corporate office space is sublet to Leucadia. Sublease payments from Leucadia reflected in other income were $12,000 in each of 2014, 2013 and 2012. | |||||
We also receive $5,000 monthly in fee income related to the management and supervision of certain real estate in the Maine projects retained by Leucadia. This agreement will remain in place until ownership is transferred to us which will not occur until five years has elapsed. For the year ended December, 31, 2014, we recognized $45,000. | |||||
Pursuant to administrative services agreements, Leucadia provides administrative and accounting services to us, including providing the services of the Company’s Secretary. Administrative fees paid to Leucadia were $180,000 in each of 2014, 2013 and 2012. The administrative services agreement automatically renews for successive annual periods unless terminated in accordance with its terms. Leucadia has the right to terminate the agreement by giving the Company not less than one year’s prior notice, in which event the then monthly fee will remain in effect until the end of the notice period. We have the right to terminate the agreement, without restriction or penalty, upon 30 days prior written notice to Leucadia. The agreement has not been terminated by either party. | |||||
Leucadia is contractually obligated to obtain infrastructure improvement bonds on behalf of the San Elijo Hills project; see Note 13 for more information. | |||||
See Note 2 for information concerning the purchase of assets from Leucadia. Our Chairman, Joseph S. Steinberg, is a significant stockholder of Leucadia and Chairman of Leucadia’s Board, and one of our Directors, Brian P. Friedman, is the President of Leucadia. The terms and conditions of the purchase of assets from Leucadia were negotiated and approved by a special independent committee of our Board of Directors and ratified by our Board of Directors. | |||||
Fair_Value
Fair Value | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value [Abstract] | |
Fair Value | 15. FAIR VALUE |
Our material financial instruments include cash and cash equivalents and investments classified as available for sale or held to maturity. The carrying amounts of such financial instruments approximate their fair values. | |
No assets or liabilities were measured at fair value on a nonrecurring basis as of December 31, 2014 and 2013. | |
Segment_Information
Segment Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Information [Abstract] | |||||||||
Segment Information | 16. SEGMENT INFORMATION | ||||||||
As the result of our entering into an agreement to purchase 95 acres of land adjacent to the Rampage property during the second quarter of 2014, we reevaluated our reportable segments and determined that we have three reportable segments—real estate, farming and corporate. Real estate operations consist of a variety of residential land development projects and commercial properties and other unimproved land, all in various stages of development. Real estate also includes the equity method investments in BRP Holding and BRP Hotel, all of which were acquired during 2014 in the Acquisition. Farming operations consist of the Rampage property which includes an operating grape vineyard and an almond orchard under development. Corporate primarily consists of investment income and overhead expenses. Corporate amounts are not allocated to the operating units. | |||||||||
Certain information concerning our segments for the years ended 2014, 2013 and 2012 is presented in the following table. Consolidated subsidiaries are reflected as of the date a majority controlling interest was acquired. Consolidated operations are reflected from the date of acquisition, which for the Acquisition was March 28, 2014. | |||||||||
2014 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Revenues: | |||||||||
Real estate | $ | 54,294 | $ | 51,738 | $ | 29,247 | |||
Farming | 5,199 | 5,054 | 6,590 | ||||||
Corporate | 12 | 12 | 12 | ||||||
Total consolidated revenues | $ | 59,505 | $ | 56,804 | $ | 35,849 | |||
Income (loss) from continuing operations before income | |||||||||
taxes and noncontrolling interest: | |||||||||
Real estate | $ | 14,470 | $ | 24,822 | $ | 13,616 | |||
Farming | 1,719 | 1,899 | 3,437 | ||||||
Corporate | -9,974 | -7,519 | -5,541 | ||||||
Total consolidated income (loss) from continuing | |||||||||
operations before income taxes and noncontrolling | |||||||||
interest | $ | 6,215 | $ | 19,202 | $ | 11,512 | |||
Depreciation and amortization expenses: | |||||||||
Real estate | $ | 3,781 | $ | 191 | $ | 181 | |||
Farming | 49 | - | - | ||||||
Corporate | 27 | 48 | 68 | ||||||
Total consolidated depreciation and amortization expenses | $ | 3,857 | $ | 239 | $ | 249 | |||
Identifiable assets employed: | |||||||||
Real estate | $ | 378,170 | $ | 138,444 | |||||
Farming | 11,531 | 13,904 | |||||||
Corporate | 43,488 | 52,054 | |||||||
Total consolidated assets | $ | 433,189 | $ | 204,402 | |||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Data [Abstract] | |||||||||||||
Selected Quarterly Financial Data | 17. SELECTED QUARTERLY FINANCIAL DATA (unaudited) | ||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
2014:00:00 | |||||||||||||
Sales of real estate | $ | 2,622 | $ | 16,708 | $ | 2,632 | $ | 13,675 | |||||
Rental income | $ | 287 | $ | 5,591 | $ | 6,004 | $ | 5,741 | |||||
Farming revenues | $ | - | $ | - | $ | 4,600 | $ | 599 | |||||
Co-op marketing and advertising fees | $ | 278 | $ | 290 | $ | 216 | $ | 262 | |||||
Cost of sales | $ | 1,350 | $ | 10,920 | $ | 308 | $ | 6,015 | |||||
Reduction in estimated liability for environmental | |||||||||||||
remediation | $ | - | $ | - | $ | - | $ | - | |||||
Farming expenses | $ | 991 | $ | 934 | $ | 980 | $ | 409 | |||||
Income (loss) from operations | $ | -3,282 | $ | 2,354 | $ | 2,526 | $ | 3,543 | |||||
Net income (loss) attributable to HomeFed | |||||||||||||
Corporation common shareholders | $ | -1,981 | $ | 1,255 | $ | 1,554 | $ | 3,058 | |||||
Basic earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.24 | $ | 0.08 | $ | 0.10 | $ | 0.20 | |||||
Diluted earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.24 | $ | 0.08 | $ | 0.10 | $ | 0.20 | |||||
2013:00:00 | |||||||||||||
Sales of real estate | $ | 8,271 | $ | 953 | $ | 803 | $ | 40,070 | |||||
Rental income | $ | 121 | $ | 133 | $ | 126 | $ | 131 | |||||
Farming revenues | $ | - | $ | - | $ | 3,805 | $ | 1,249 | |||||
Co-op marketing and advertising fees | $ | 236 | $ | 280 | $ | 356 | $ | 270 | |||||
Cost of sales | $ | 5,759 | $ | 561 | $ | 471 | $ | 16,407 | |||||
Reduction in estimated liability for environmental | |||||||||||||
remediation | $ | - | $ | -662 | $ | - | $ | - | |||||
Farming expenses | $ | 876 | $ | 897 | $ | 881 | $ | 377 | |||||
Income (loss) from operations | $ | -1,305 | $ | -2,345 | $ | 1,126 | $ | 20,837 | |||||
Net income (loss) attributable to HomeFed | |||||||||||||
Corporation common shareholders | $ | -769 | $ | -1,131 | $ | 902 | $ | 12,266 | |||||
Basic earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.1 | $ | -0.14 | $ | 0.11 | $ | 1.56 | |||||
Diluted earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.1 | $ | -0.14 | $ | 0.11 | $ | 1.56 | |||||
In 2014, the totals of quarterly per share amounts do not equal annual per share amounts because of changes in outstanding shares during the year. | |||||||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Abstract] | |
Subsequent Event | 18. SUBSEQUENT EVENTS |
As more fully discussed in the Annual Report on Form 10-K for the year ended December 31, 2013, upon receipt of required approvals, we commenced remediation activities on approximately 30 acres of undeveloped land owned by Flat Rock Land Company, LLC (“Flat Rock”), a subsidiary of Otay Ranch. The remediation activities were completed in February 2013. We received final approval of the remediation from the County of San Diego Department of Environmental Health in June 2013. Otay Ranch and Flat Rock had commenced a lawsuit in California Superior Court seeking compensation from the parties who they believe are responsible for the contamination of the property. In February 2015, the court denied us any recovery. We are presently evaluating the potential merits of an appeal of this decision; however, we can give no assurances that any appeal, if pursued, will be successful. The defendants will be entitled to seek an award of certain allowable court costs in future post-trial proceedings. | |
In February 2015, we entered into an agreement to purchase 64 acres of land in the Otay Ranch area of San Diego County for $3,750,000. The land is entitled for 26 acres of industrial development and 62 single family homes. We made a non-refundable option payment of $250,000 and closing is anticipated in March 2015. | |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation – The accompanying consolidated financial statements include the accounts of HomeFed Corporation (the “Company,”) and its controlled subsidiaries. We also own equity interests in Brooklyn Renaissance Plaza, an operating business accounted for under the equity method of accounting. We are currently engaged, directly and through our subsidiaries, in the investment in and development of residential and commercial real estate properties in California, Virginia, South Carolina, Florida, Maine and New York. All intercompany balances and transactions have been eliminated in consolidation. |
Our main business, real estate development, is highly competitive, and there are numerous residential real estate developers and development projects operating in the same geographic areas in which we operate. In addition, the real estate industry is subject to increasing environmental, building, zoning and real estate regulations that are imposed by various federal, state and local authorities. Timing of the initiation and completion of development projects depends upon receipt of necessary authorizations and approvals. Furthermore, changes in prevailing local circumstances or applicable laws may require additional approvals, or modifications of approvals previously obtained. Delays could adversely affect our ability to complete our projects, significantly increase the costs of doing so or drive potential customers to purchase competitors’ products. Environmental laws may cause us to incur substantial compliance, mitigation and other costs, may restrict or prohibit development in certain areas and may delay completion of our development projects. Delays arising from compliance with environmental laws and regulations could adversely affect our ability to complete our projects and significantly increase development costs. Our business may also be adversely affected by inflation and is interest-rate sensitive. | |
Certain amounts have been reclassified to be consistent with the 2014 presentation. | |
Basis Of Consolidation | Basis of Consolidation – Our policy is to consolidate all entities in which we can vote a majority of the outstanding voting stock. In addition, we consolidate entities which meet the definition of a variable interest entity for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to noncontrolling interests. All intercompany transactions and balances are eliminated in consolidation. In situations where we have significant influence, but not control, of an entity that does not qualify as a variable interest entity, we apply the equity method of accounting. |
Critical Accounting Estimates | |
Critical Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities. On an on-going basis, we evaluate all of these estimates and assumptions. Actual results could differ from those estimates. | |
Profit Recognition On Sales Of Real Estate | |
Profit Recognition on Sales of Real Estate – When we have an obligation to complete improvements on property subsequent to the date of sale, we utilize the percentage of completion method of accounting to record revenues and cost of sales. Under percentage of completion accounting, we recognize revenues and cost of sales based upon the ratio of development costs completed as of the date of sale to an estimate of total development costs which will ultimately be incurred, including an estimate for common areas. Revenues which cannot be recognized as of the date of sale are reported as deferred revenue on the consolidated balance sheets. | |
We believe we can reasonably estimate our future costs and profit allocation in order to determine how much revenue should be deferred. However, such estimates are based on numerous assumptions and require management’s judgment. For example, the estimate of future development costs includes an assumption about the cost of construction services for which we have no current contractual arrangement. If the estimate of these future costs proves to be too low, then we will have recognized too much profit as of the date of sale resulting in less profit to be reported as the improvements are completed. However, to date our estimates of future development costs that have been used to determine the amount of revenue to be deferred at the date of sale have subsequently been proven to be reasonably accurate. | |
Income Taxes | |
Income Taxes – We provide for income taxes using the liability method. We record a valuation allowance to reduce our net deferred tax asset to an amount that we expect is more likely than not to be realized. If our estimate of the realizability of our deferred tax asset changes in the future, an adjustment to the valuation allowance would be recorded which would either increase or decrease income tax expense in such period. The valuation allowance is determined after considering all relevant facts and circumstances, and is based, in significant part, on our projection of taxable income in the future. Since any projection of future profitability is inherently uncertain, changes in the valuation allowance can be expected. | |
During 2014, we concluded that we had enough profitable, historical evidence related to the Ashville Park project to include our sales forecasts of the project into our projection of taxable income. As a result, we were able to conclude that it is more likely than not that we will be able to realize an additional portion of our net deferred tax asset; accordingly, approximately $900,000 of the deferred tax valuation allowance was released as a credit to income tax expense during 2014. | |
During 2013, we generated profits from lot sales at the San Elijo Hills and Ashville Park projects that were greater than projected as of December 31, 2012. Also, as of December 31, 2013, we had entered into agreements to sell additional lots at both projects which were expected to close during 2014. We considered its recent results and pending lot sale agreements to be positive evidence to be considered when estimating its future taxable income. As a result, we were able to conclude that it is more likely than not that we will be able to realize an additional portion of our net deferred tax asset; accordingly, approximately $1,350,000 of the deferred tax valuation allowance was released as a credit to income tax expense during 2013. | |
During 2012 we acquired the Ashville Park project, profitably sold finished lots during 2012 and entered into an agreement to sell additional lots in 2013, some of which closed during the first quarter of 2013. We believed that these sales represented positive evidence to be considered when estimating future taxable income that may be generated at the Ashville Park project. We also lowered our estimated liability for environmental remediation costs during 2012, and updated our consolidated projection of future taxable income for this activity and for recent developments at our other projects. As a result, we were able to conclude that it is more likely than not that we will be able to realize an additional portion of our net deferred tax asset; accordingly, approximately $750,000 of the deferred tax valuation allowance was released as a credit to income tax expense during 2012. | |
The projection of future taxable income is based upon numerous assumptions about the future, including future market conditions where our projects are located, regulatory requirements, estimates of future real estate revenues and development costs, future interest expense, operating and overhead costs and other factors. To the extent our actual taxable income in the future exceeds our estimate, we will recognize additional tax benefits and reduce our valuation allowance; conversely, if the actual taxable income is less than the amounts projected, an addition to the valuation allowance would be recorded that would increase tax expense in the future. Adjustments to the valuation allowance in the future can be expected. | |
We record interest and penalties, if any, with respect to uncertain tax positions as components of income tax expense. Based on our evaluation of our tax filings at December 31, 2014 and 2013, we did not record any amounts for uncertain tax positions. If any of our tax filing positions are successfully challenged, payments could be required that might be material. | |
Provision For Environmental Remediation | Provision for Environmental Remediation – We record environmental liabilities when it is probable that a liability has been incurred and the amount or range of the liability is reasonably estimable. During 2002, we recorded a charge of $11,150,000 representing our estimate of the cost (including legal fees) to implement the most likely remediation alternative with respect to approximately 30 acres of undeveloped land owned by a subsidiary of Otay Land Company. The estimated liability was neither discounted nor reduced for claims for recovery from previous owners and users of the land who may be liable, and may increase or decrease based upon the actual extent and nature of the remediation required, the actual cost of the remediation, the expenses of the regulatory process, the costs of post-remediation monitoring requirements, inflation and other items. |
We have periodically examined, and when appropriate, adjusted our liability for environmental remediation to reflect our current best estimate. A change to the current estimate could result from, among other things, that the cost to implement the remediation is different than our current estimate, that the cost of future on-going monitoring efforts is different than our current estimate, and/or requirements imposed by regulatory authorities that we did not anticipate but is nevertheless required to implement. During 2012, we revised our estimate of future remediation costs, including on-going monitoring expenses, which resulted in a reduction in the previously accrued estimate of $1,500,000. Such amount was reflected on the consolidated statement of operations as a reduction to expenses. | |
During the fourth quarter of 2012, upon receipt of required approvals, we commenced remediation activities, which were completed in February 2013. We received final approval from the County of San Diego Department of Environmental Health in June 2013; as a result, we reduced our liability for environmental remediation by $650,000. | |
Provision For Impairment Losses On Real Estate | Provision for Impairment Losses on Real Estate – Our real estate is carried at cost. Whenever events or changes in circumstances suggest that the carrying amount may not be recoverable, management assesses the recoverability of the carrying amount of its real estate in accordance with GAAP. |
Some of the events or changes in circumstances that we consider as indicators of potential impairment include: (i) a change in market conditions in the local markets where we own real estate, (ii) a change in the availability of mortgages for retail buyers or a significant change in interest rates for mortgages, (iii) a change in expected use or development plans for properties, (iv) continuing operating or cash flow losses for real estate held for investment purposes, (v) an accumulation of costs in a development property that significantly exceeds its historical basis in property held long-term and (vi) a significant weather event that may have a negative impact on the property value. | |
We use varying methods to determine if impairment exists, such as considering indicators of potential impairment and analyzing expected future cash flows and comparing the expected future undiscounted cash flows of the property to the carrying value. | |
The accounting estimate related to the real estate impairment evaluation is susceptible to the use of assumptions about future sales proceeds and future expenditures. For projects under development, an estimate of future cash flows on an undiscounted basis is performed using estimated future expenditures necessary to maintain the existing project and using management’s best estimates about future sales prices and planned holding periods. | |
If a property is considered impaired, the impairment charge is determined by the amount of the property’s carrying value exceeds its fair value. We did not record any provisions for impairment losses during the years ended December 31, 2014, 2013 and 2012. | |
Purchase Price Allocation | Purchase Price Allocation – Under current authoritative accounting guidance, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and the liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method of accounting. We record our investments based on the fair value of the identifiable assets acquired, intangible assets acquired, liabilities assumed and any noncontrolling interest in the acquired entity, as well as recognizing and measuring goodwill or a gain from a bargain purchase at the acquisition date. Assets are recorded at fair value using appraisals and valuations performed by management and independent third parties. Fair values are based on the exit price (i.e. the price that would be received in an orderly transaction to sell an asset or transfer a liability between market participants at the measurement date). We evaluate several factors, including market data for similar assets, expected cash flows discounted at risk adjusted rates and replacement cost for the assets to determine an appropriate exit cost when evaluating the fair value of our assets. We immediately expense acquisition-related costs and fees associated with business combinations. |
Real Estate | Real Estate – Real estate includes all expenditures incurred in connection with the acquisition, development and construction of the property, including interest paid to third parties and property taxes. At acquisition, land costs are allocated to individual parcels or lots based on relative fair values or specific identification. Subsequent to acquisition, substantially all development costs are specifically identifiable to individual parcels or lots, or are considered allocated costs that are allocated principally based on relative sales value (principally property taxes, legal fees and consulting fees). Capitalized land costs are charged to cost of sales at the time that revenue is recognized. For Real estate held for investment, maintenance costs are expensed when incurred and depreciation is expensed on a straight-line basis over the estimated useful life of the assets or, if less, the term of the underlying lease. |
Cash And Cash Equivalents | For Real estate held for investment, maintenance costs are expensed when incurred and depreciation is expensed on a straight-line basis over the estimated useful life of the assets or, if less, the term of the underlying lease. |
Cash and Cash Equivalents – Cash equivalents are money market accounts and short‑term, highly liquid investments that have maturities of less than three months at the time of acquisition. | |
Restricted Cash | Restricted Cash – Restricted cash consists of amounts escrowed pursuant to the terms of our Purchase Agreement related to BRP Leasing's obligation under the master lease with Brooklyn Renaissance Plaza. Also included in restricted cash are funds held in an interest bearing bank account serving as collateral for a letter of credit for the benefit of the City of Myrtle Beach related to future development improvements planned at The Market Common. |
Investments | Investments – Investments with maturities equal to or greater than three months at the time of acquisition and classified as available for sale are carried at fair value with unrealized gains and losses reflected as a separate component of shareholders’ equity, net of taxes. The cost of securities sold is based on specific identification. We have one investment security that is classified as a held-to-maturity investment, which we have the intention to hold to maturity and the ability to do so. It is carried at cost, less impairments, plus accreted interest. We evaluate investments with unrealized losses to determine if they experienced an other-than-temporary impairment. This evaluation is based on various factors, including length of time securities were in a loss position, ability and intent to hold investments until unrealized losses are recovered or they mature and amount of the unrealized loss. See Note 3 for more information. |
Fair Value Hierarchy | |
Fair Value Hierarchy-- In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: | |
Level 1:Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | |
Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. | |
Level 3:Instruments that have little to no pricing observability as of the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | |
Investments available for sale are valued at quoted market prices. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current as of the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based upon consideration of available information, including types of financial instruments, current financial information, restrictions on dispositions, fair values of underlying financial instruments and quotations for similar instruments. | |
The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models may be made when, in management’s judgment, features of the financial instrument such as its complexity, the market in which the financial instrument is traded and risk uncertainties about market conditions require that an adjustment be made to the value derived from the models. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. | |
The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. Transfers among the levels are recognized at the beginning of each period. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. | |
Equity Method Investments | Equity Method Investments – In situations where we have significant influence, but not control, of an entity we apply the equity method of accounting. Under the equity method of accounting, our share of the investee’s underlying net income or loss is recorded as income (loss) from equity method investments. The recognition of our share of the investees’ results takes into account any special rights or priorities of investors; accordingly, we employ the hypothetical liquidation at book value model to calculate our share of the investees’ profits or losses, and additionally, amortizing the difference between the fair value of the assets at the date of acquisition and the historical book basis over the remaining useful life of each asset, to calculate our share of the investment. Our equity interests in Brooklyn Renaissance Plaza are the only investments accounted for under the equity method of accounting. We are required to periodically compare an investment’s carrying value to its estimated fair value. We would recognize an impairment charge if the carrying value exceeds the estimated fair value and is determined to be other than temporary. |
Allowance For Doubtful Accounts | Allowance For Doubtful Accounts - We provide an allowance for doubtful accounts against the portion of accounts receivable, including straight-line rents, which is estimated to be uncollectible. Such allowances are reviewed periodically based upon our recovery experience. |
Deferred Leasing Commissions | Deferred Leasing Commissions -Deferred leasing commissions represent costs to obtain tenants at our retail and office rental properties. We amortize these charges over the original term of the lease and are reflected in Depreciation and amortization expense. |
Intangible Assets, Net | Intangible Assets (Liabilities), Net – Intangibles includes above market lease value and lease in place value as assets and below market lease value as a liability, all recorded at fair value at the date of Acquisition. Above and below market lease value is amortized on a straight-line basis over the remaining term of the underlying lease and is included in Rental income. Lease in place value is amortized over the term of the underlying lease and is included in Depreciation and amortization expense. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist, primarily changes in the underlying lease. |
An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary. Impairment exists when the carrying amount exceeds its fair value. Fair value will be determined using valuation techniques consistent with what a market participant would use. | |
Sales Of Real Estate | Sales of Real Estate – Revenues from real estate sales are recognized when a sale is closed and title transfers to the buyer, the buyer’s initial investment is adequate, any receivables are probable of collection and the usual risks and rewards of ownership have been transferred to the buyer. |
Rental Income | Rental Income – Rental income is recognized on a straight-line basis over the terms of the leases. Any rent payments received in excess of the amounts recognized as revenue are deferred and reflected as Deferred revenue in the consolidated balance sheets. For those leases that provide for billing of common area maintenance, such revenue is recognized in the period that the related estimated expenses are incurred based upon the tenant lease provision. |
Recognition Of Fee Income | Recognition of Fee Income – We may be contractually entitled to receive co-op marketing and advertising fees that are due when builders sell homes. These fees are generally based upon a fixed percentage of the homes’ selling price and are recorded as revenue when the home is sold. |
Revenue And Profit Sharing Arrangements | Revenue and Profit Sharing Arrangements – Certain of our lot purchase agreements with homebuilders include provisions that entitle us to a share of the revenues or profits realized by the homebuilders upon their sale of the homes, after certain thresholds are achieved. The actual amount which could be received by us is generally based on a formula and other specified criteria contained in the lot purchase agreements, and are generally not payable and cannot be determined with reasonable certainty until the builder has completed the sale of a substantial portion of the homes covered by the lot purchase agreement. Our policy is to accrue revenue earned pursuant to these agreements when amounts are fully earned and payable pursuant to the lot purchase agreements, which is classified as Sales of real estate. Any amounts received from homebuilders prior to then are deferred. |
Option Deposits | Option Deposits – Option payments received from prospective buyers are recognized as liabilities until the title of the real estate is transferred or the option is forfeited, or in the case of refundable deposits, the prospective buyer decides not to purchase the real estate and the deposit is returned. |
Capitalization Of Interest And Real Estate Taxes | Capitalization of Interest and Real Estate Taxes – Interest and real estate taxes attributable to land and property construction are capitalized and added to the cost of those properties when active development begins and ends when the property development is fully completed and ready for its intended use. |
Farming Revenues And Expenses | |
Farming Revenues and Expenses – Income from farming related activities are recognized when grapes are sold, and expenses from farming related activities are recognized when incurred. | |
Share-Based Compensation | Share-Based Compensation – The cost of all share-based payments to employees, including grants of employee stock options and warrants, are recognized in the financial statements based on their fair values. The cost is recognized as an expense over the vesting period of the award on the straight-line basis. The fair value of each award is estimated at the date of grant using the Black-Scholes option pricing model. |
Recently Adopted Or Issued Accounting Pronouncements | Recently Adopted or Issued Accounting Pronouncements – In January 2014, we adopted new Financial Accounting Standards Board (“FASB”) guidance that requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or tax credit carryforward, unless such net operating loss carryforward, similar tax loss or tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes resulting from the disallowance of a tax position. In the event that the tax position is disallowed or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit shall be presented in the financial statements as a liability and shall not be combined with deferred tax assets. The adoption of this guidance did not have an impact on our consolidated financial statements. |
In April 2014, the FASB issued new guidance on the reporting of discontinued operations. The new guidance requires that disposal of a component of an entity or a group of components of an entity be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, and would require expanded disclosures. This guidance will be effective prospectively within annual periods beginning on or after December 15, 2014. The adoption of this guidance is not expected to have a material impact on our financial statements. | |
In May 2014, the FASB issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This guidance will be effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact this new guidance will have on our consolidated financial statements. | |
In February 2015, the FASB issued new guidance that amends current consolidation guidance including changes to both the variable and voting interest models used to evaluate whether an entity should be consolidated. This guidance will be effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. We are evaluating the impact this new guidance will have on our consolidated financial statements. | |
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Acquisition [Abstract] | ||||||
Schedule Of Allocation Of Purchase Price To Assets Acquired And Liabilities Assumed | ||||||
Assets | ||||||
Real estate held for development | $ | 38,292 | ||||
Real estate held for investment | 41,187 | |||||
Cash | 13,983 | |||||
Restricted cash | 1,096 | |||||
Investment held to maturity | 10,619 | |||||
Equity method investments | 102,743 | |||||
Intangible assets | 14,960 | |||||
Accounts receivable, deposits and other assets | 14,225 | |||||
Total assets | $ | 237,105 | ||||
Accounts payable | 2,023 | |||||
Below market lease contract intangibles | 5,588 | |||||
Net deferred tax liability | 11,843 | |||||
Other liabilities | 232 | |||||
Total liabilities | 19,686 | |||||
Noncontrolling interests | 1,710 | |||||
Net assets acquired | $ | 215,709 | ||||
Schedule Of Acquired Finite-Lived Intangible Assets | ||||||
Amortization | ||||||
Amount | (in years) | |||||
Above market lease contracts | $ | 10,874 | 1 to 24 | |||
Lease in place value | 4,086 | 1 to 24 | ||||
Intangible assets | $ | 14,960 | ||||
Below market lease contracts | $ | 5,588 | 1 to 24 | |||
Schedule Of Proforma Information | ||||||
2014 | 2013 | |||||
Revenues | $ | 64,604 | $ | 80,317 | ||
Net income attributable to HomeFed | ||||||
common shareholders | $ | 3,454 | $ | 7,188 | ||
Basic and diluted earnings per common share | ||||||
attributable to HomeFed common shareholders | $ | 0.22 | $ | 0.47 | ||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||
Schedule Of Available For Sale Investments | ||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||||||||
Active Markets | Other | |||||||||||||||||||||
Gross | Gross | for | Observable | Total | ||||||||||||||||||
Par | Amortized | Unrealized | Unrealized | Identical Assets | Inputs | Fair Value | ||||||||||||||||
Value | Cost | Gains | Losses | (Level 1) | (Level 2) | Measurements | ||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
U.S. Treasury securities | $ | 35,900 | $ | 35,897 | $ | 1 | $ | - | $ | 35,898 | $ | - | $ | 35,898 | ||||||||
31-Dec-13 | ||||||||||||||||||||||
U.S. Treasury securities | $ | 31,900 | $ | 31,894 | $ | 2 | $ | - | $ | 31,896 | $ | - | $ | 31,896 | ||||||||
Schedule Of Held To Maturity Securities | ||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||||||||
Active Markets | Other | |||||||||||||||||||||
for | Observable | Unobservable | Total | |||||||||||||||||||
Par | Amortized | Identical Assets | Inputs | Inputs | Fair Value | |||||||||||||||||
Value | Cost | (Level 1) | (Level 2) | (Level 3) | Measurements | |||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
Non-public bond | $ | 10,050 | $ | 11,368 | $ | - | $ | - | $ | 11,368 | $ | 11,368 | ||||||||||
Real_Estate_Tables
Real Estate (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Real Estate [Abstract] | ||||||
Schedule Of Real Estate | ||||||
December 31, | ||||||
2014 | 2013 | |||||
Real estate held for development: | ||||||
Otay Ranch project | $ | 41,809 | $ | 38,848 | ||
San Elijo Hills project | 27,080 | 35,915 | ||||
Pacho project | 17,496 | - | ||||
Fanita Ranch property | 15,440 | 14,688 | ||||
SweetBay project | 10,717 | - | ||||
Maine projects | 9,023 | - | ||||
Ashville Park project | 8,616 | 9,469 | ||||
The Market Common | 6,909 | - | ||||
Rampage property | 6,211 | 4,545 | ||||
Total | $ | 143,301 | $ | 103,465 | ||
Real estate held for investment, gross | ||||||
Land: | ||||||
The Market Common | $ | 3,744 | $ | - | ||
Maine projects | 474 | - | ||||
Buildings: | ||||||
The Market Common | 35,783 | - | ||||
San Elijo Hills project | 4,045 | 4,045 | ||||
Maine projects | 663 | - | ||||
SweetBay project | 523 | - | ||||
45,232 | 4,045 | |||||
Less: Accumulated depreciation | -1,341 | -438 | ||||
Real estate held for investment, net | $ | 43,891 | $ | 3,607 | ||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Intangible Assets, Net [Abstract] | |||||
Schedule Of Intangible Assets | |||||
Amortization | |||||
Amount | (in years) | ||||
Above market lease contracts | $ | 9,151 | 1 to 24 | ||
Lease in place value | 3,045 | 1 to 24 | |||
Intangible assets | $ | 12,196 | |||
Below market lease contracts | $ | 4,760 | 1 to 24 | ||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Equity Method Investments [Abstract] | |||
Schedule Of Equity Method Investments | |||
2014 | |||
BRP Holding | $ | 76,478 | |
BRP Hotel | 24,750 | ||
Total | $ | 101,228 | |
Schedule Of Income Related To Equity Investment | |||
2014 | |||
BRP Holding | $ | -847 | |
BRP Hotel | 549 | ||
Total | $ | -298 | |
Schedule Of Equity Method Investments Summarized Financial Information | |||
2014 | |||
Assets | $ | 220,926 | |
Liabilities | $ | 213,061 | |
Total revenues | $ | 102,637 | |
Income from continuing operations before extraordinary items | $ | 7,084 | |
Net income | $ | 7,084 | |
Our (losses) related to equity investment companies | $ | -298 | |
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Stock Incentive Plans [Abstract] | ||||||||||
Schedule Of Option Activity | ||||||||||
Weighted- | ||||||||||
Common | Weighted- | Average | ||||||||
Shares | Average | Remaining | Aggregate | |||||||
Subject to | Exercise | Contractual | Intrinsic | |||||||
Option | Price | Term | Value | |||||||
Balance at January 1, 2012 | 104,500 | $ | 27.50 | |||||||
Granted | 6,000 | $ | 22.35 | |||||||
Cancelled | -14,000 | $ | 41.18 | |||||||
Balance at December 31, 2012 | 96,500 | $ | 25.19 | |||||||
Granted | 6,000 | $ | 32.30 | |||||||
Cancelled | -8,000 | $ | 36.44 | |||||||
Balance at December 31, 2013 | 94,500 | $ | 24.69 | |||||||
Granted | 7,000 | $ | 58.00 | |||||||
Exercised | -8,000 | $ | 23.50 | $ | 266,850 | |||||
Balance at December 31, 2014 | 93,500 | $ | 27.29 | 1.8 years | $ | 1,747,100 | ||||
Exercisable at December 31, 2014 | 64,600 | $ | 24.43 | 1.4 years | $ | 1,328,750 | ||||
Summary Of Weighted-Average Assumptions | ||||||||||
2014 | 2013 | 2012 | ||||||||
Risk free rate | 1.48% | 1.20% | 0.56% | |||||||
Expected volatility | 29.60% | 30.85% | 46.90% | |||||||
Expected dividend yield | 0.0% | 0.0% | 0.0% | |||||||
Expected life | 4.3 years | 4.3 years | 4.3 years | |||||||
Fair value per grant | $ | 15.34 | $ | 8.70 | $ | 8.49 | ||||
Sales_Of_Real_Estate_Tables
Sales Of Real Estate (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Sales Of Real Estate [Abstract] | ||||||||||
Schedule Of Real Estate Sales | ||||||||||
2014 | 2013 | 2012 | ||||||||
San Elijo Hills project: | ||||||||||
Developed lots | $ | 10,468 | $ | 37,370 | $ | 20,649 | ||||
Single family homes | 15,279 | - | - | |||||||
Revenues from profit sharing agreements | 1,784 | - | - | |||||||
Residential condominium units at San Elijo Hills | - | 689 | - | |||||||
Ashville Park project: | ||||||||||
Developed lots | 6,298 | 12,038 | 7,544 | |||||||
The Market Common: | ||||||||||
Developed lots | 1,241 | - | - | |||||||
Revenues from profit sharing agreements | 567 | - | - | |||||||
Total | $ | 35,637 | $ | 50,097 | $ | 28,193 | ||||
Schedule Of Changes In Deferred Revenue | ||||||||||
2014 | 2013 | |||||||||
Deferred revenue balance at January 1, | $ | 2,739 | $ | 886 | ||||||
Revenue deferred on the date of sale | 1,062 | 2,660 | ||||||||
Deferred revenue recognized in operations | -1,273 | -807 | ||||||||
Deferred revenue balance at December 31, | $ | 2,528 | $ | 2,739 | ||||||
Other_Results_Of_Operations_Ta
Other Results Of Operations (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Interest And Other Income [Abstract] | ||||||||||
Schedule Of Interest And Other Income | ||||||||||
2014 | 2013 | 2012 | ||||||||
Interest income | $ | 914 | $ | 55 | $ | 79 | ||||
Gain on settlement of a lawsuit | - | 764 | - | |||||||
Gain on settlement of a contract dispute | - | - | 15 | |||||||
Management fee income from Leucadia | 45 | - | - | |||||||
Other | 115 | 70 | 13 | |||||||
Total | $ | 1,074 | $ | 889 | $ | 107 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Schedule Of Components Of Income Tax Benefit (Provision) | ||||||||||
2014 | 2013 | 2012 | ||||||||
State income taxes-- current | $ | -428 | $ | -1,212 | $ | -642 | ||||
State income taxes-- deferred | 36 | -340 | -389 | |||||||
Federal income taxes-- current | -1,501 | -2,905 | -1,337 | |||||||
Federal income taxes-- deferred | 410 | -2,041 | -1,712 | |||||||
$ | -1,483 | $ | -6,498 | $ | -4,080 | |||||
Reconciliation Of Effective Tax Provision | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected federal income tax provision | $ | -2,175 | $ | -6,721 | $ | -4,029 | ||||
State income taxes, net of federal income tax benefit | -255 | -1,009 | -670 | |||||||
Decrease in deferred tax valuation allowance | 897 | 1,360 | 742 | |||||||
Permanent differences | 115 | -77 | -61 | |||||||
Other | -65 | -51 | -62 | |||||||
Actual income tax provision | $ | -1,483 | $ | -6,498 | $ | -4,080 | ||||
Schedule Of Deferred Tax Assets | ||||||||||
2014 | 2013 | |||||||||
Deferred Tax Asset: | ||||||||||
Land basis | $ | 2,423 | $ | 3,503 | ||||||
Minimum tax credit carryovers | 34,311 | 35,349 | ||||||||
Other, net | 1,589 | 1,860 | ||||||||
38,323 | 40,712 | |||||||||
Valuation allowance | -33,402 | -34,299 | ||||||||
4,921 | 6,413 | |||||||||
Deferred Tax Liability: | ||||||||||
Buildings | -6,930 | - | ||||||||
Leaseholds | -2,975 | - | ||||||||
-9,905 | - | |||||||||
Net deferred tax asset (liability) | $ | -4,984 | $ | 6,413 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Schedule Of Calculation Of Numerator And Denominator For Loss Per Common Share | ||||||||||
2014 | 2013 | 2012 | ||||||||
Numerator – net income attributable to HomeFed Corporation common shareholders | $ | 3,886 | $ | 11,268 | $ | 6,022 | ||||
Denominator for basic earnings per share– weighted average shares | 13,364 | 7,880 | 7,880 | |||||||
Stock options | 38 | 13 | 1 | |||||||
Denominator for diluted earnings per share– weighted average shares | 13,402 | 7,893 | 7,881 | |||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies [Abstract] | |||||
Schedule Of Future Minimum Rental Payments Receivables From Real Estate Held For Investment | |||||
2015 | $ | 4,246 | |||
2016 | 4,235 | ||||
2017 | 4,127 | ||||
2018 | 3,094 | ||||
2019 | 2,430 | ||||
Thereafter | 16,931 | ||||
$ | 35,063 | ||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Schedule Of Future Minimum Annual Rental Income | |||||
2015 | $ | 11,986 | |||
2016 | 12,129 | ||||
2017 | 12,299 | ||||
2018 | 10,266 | ||||
2019 | - | ||||
Thereafter | - | ||||
$ | 46,680 | ||||
Schedule Of Future Minimum Annual Rental Expense | |||||
2015 | $ | 7,561 | |||
2016 | 7,561 | ||||
2017 | 7,561 | ||||
2018 | 6,301 | ||||
2019 | - | ||||
Thereafter | - | ||||
$ | 28,984 | ||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Information [Abstract] | |||||||||
Schedule Of Segment Reporting | |||||||||
2014 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Revenues: | |||||||||
Real estate | $ | 54,294 | $ | 51,738 | $ | 29,247 | |||
Farming | 5,199 | 5,054 | 6,590 | ||||||
Corporate | 12 | 12 | 12 | ||||||
Total consolidated revenues | $ | 59,505 | $ | 56,804 | $ | 35,849 | |||
Income (loss) from continuing operations before income | |||||||||
taxes and noncontrolling interest: | |||||||||
Real estate | $ | 14,470 | $ | 24,822 | $ | 13,616 | |||
Farming | 1,719 | 1,899 | 3,437 | ||||||
Corporate | -9,974 | -7,519 | -5,541 | ||||||
Total consolidated income (loss) from continuing | |||||||||
operations before income taxes and noncontrolling | |||||||||
interest | $ | 6,215 | $ | 19,202 | $ | 11,512 | |||
Depreciation and amortization expenses: | |||||||||
Real estate | $ | 3,781 | $ | 191 | $ | 181 | |||
Farming | 49 | - | - | ||||||
Corporate | 27 | 48 | 68 | ||||||
Total consolidated depreciation and amortization expenses | $ | 3,857 | $ | 239 | $ | 249 | |||
Identifiable assets employed: | |||||||||
Real estate | $ | 378,170 | $ | 138,444 | |||||
Farming | 11,531 | 13,904 | |||||||
Corporate | 43,488 | 52,054 | |||||||
Total consolidated assets | $ | 433,189 | $ | 204,402 | |||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Data [Abstract] | |||||||||||||
Schedule Of Quarterly Financial Data | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
2014:00:00 | |||||||||||||
Sales of real estate | $ | 2,622 | $ | 16,708 | $ | 2,632 | $ | 13,675 | |||||
Rental income | $ | 287 | $ | 5,591 | $ | 6,004 | $ | 5,741 | |||||
Farming revenues | $ | - | $ | - | $ | 4,600 | $ | 599 | |||||
Co-op marketing and advertising fees | $ | 278 | $ | 290 | $ | 216 | $ | 262 | |||||
Cost of sales | $ | 1,350 | $ | 10,920 | $ | 308 | $ | 6,015 | |||||
Reduction in estimated liability for environmental | |||||||||||||
remediation | $ | - | $ | - | $ | - | $ | - | |||||
Farming expenses | $ | 991 | $ | 934 | $ | 980 | $ | 409 | |||||
Income (loss) from operations | $ | -3,282 | $ | 2,354 | $ | 2,526 | $ | 3,543 | |||||
Net income (loss) attributable to HomeFed | |||||||||||||
Corporation common shareholders | $ | -1,981 | $ | 1,255 | $ | 1,554 | $ | 3,058 | |||||
Basic earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.24 | $ | 0.08 | $ | 0.10 | $ | 0.20 | |||||
Diluted earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.24 | $ | 0.08 | $ | 0.10 | $ | 0.20 | |||||
2013:00:00 | |||||||||||||
Sales of real estate | $ | 8,271 | $ | 953 | $ | 803 | $ | 40,070 | |||||
Rental income | $ | 121 | $ | 133 | $ | 126 | $ | 131 | |||||
Farming revenues | $ | - | $ | - | $ | 3,805 | $ | 1,249 | |||||
Co-op marketing and advertising fees | $ | 236 | $ | 280 | $ | 356 | $ | 270 | |||||
Cost of sales | $ | 5,759 | $ | 561 | $ | 471 | $ | 16,407 | |||||
Reduction in estimated liability for environmental | |||||||||||||
remediation | $ | - | $ | -662 | $ | - | $ | - | |||||
Farming expenses | $ | 876 | $ | 897 | $ | 881 | $ | 377 | |||||
Income (loss) from operations | $ | -1,305 | $ | -2,345 | $ | 1,126 | $ | 20,837 | |||||
Net income (loss) attributable to HomeFed | |||||||||||||
Corporation common shareholders | $ | -769 | $ | -1,131 | $ | 902 | $ | 12,266 | |||||
Basic earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.1 | $ | -0.14 | $ | 0.11 | $ | 1.56 | |||||
Diluted earnings (loss) per common share attributable to | |||||||||||||
HomeFed Corporation shareholders | $ | -0.1 | $ | -0.14 | $ | 0.11 | $ | 1.56 | |||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2002 | |
acre | ||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||
Deferred tax valuation allowance was released as a credit to income tax expense | $900,000 | $1,350,000 | $750,000 | |||
Environmental remediation charge | 11,150,000 | |||||
Area of land related to environmental remediation | 30 | |||||
Reduction in the previously accrued environmental remediation amount | 650,000 | 662,000 | 1,500,000 | |||
Provision for impairment losses on real estate | $0 | $0 | $0 |
Acquisition_Narrative_Details
Acquisition (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Business Acquisition [Line Items] | |
Shares issued to acquire assets | 7,500,000 |
Cash payments net of cash acquired | $14,000,000 |
Cash acquired as part of working capital | 1,500,000 |
Shares issued to acquire entity | 6,986,337 |
Shares issued to acquire entity, subject to approval | 513,663 |
Aggregate purchase price | 215,700,000 |
Aggregate purchase price per share | $29 |
Consolidated statement of operations for acquired assets, aggregate revenues | 18,950,000 |
Consolidated statement of operations for acquired assets, pre-tax income | 800,000 |
Expenses related to the acquisition | $2,200,000 |
Brooklyn Renaissance Holding Company LLC [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage | 61.25% |
Area of office space | 850,000 |
Number of garage spots | 888 |
Brooklyn Renaissance Hotel LLC [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage | 25.80% |
Number of rooms | 665 |
SweetBay Project [Member] | |
Business Acquisition [Line Items] | |
Area of land | 700 |
Maine Projects [Member] | |
Business Acquisition [Line Items] | |
Area of land | 160 |
Pacho Limited Partnership And San Luis Bay Limited Partnership [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage of consolidated entity | 90.00% |
Area of land | 2,369 |
Leucadia [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage of company by investee | 31.00% |
Leucadia [Member] | Post Acquisition [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage of company by investee | 65.00% |
Minimum [Member] | |
Business Acquisition [Line Items] | |
Discount rate | 7.00% |
Cap rate | 6.50% |
Maximum [Member] | |
Business Acquisition [Line Items] | |
Discount rate | 22.00% |
Cap rate | 9.50% |
Acquisition_Schedule_Of_Alloca
Acquisition (Schedule Of Allocation Of Purchase Price To Assets Acquired And Liabilities Assumed) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Acquisition [Abstract] | |
Real estate held for development | $38,292 |
Real estate held for investment | 41,187 |
Cash | 13,983 |
Restricted cash | 1,096 |
Investment held to maturity | 10,619 |
Equity method investments | 102,743 |
Intangible assets | 14,960 |
Accounts receivable, deposits and other assets | 14,225 |
Total assets | 237,105 |
Accounts Payable | 2,023 |
Below market lease contract intangibles | 5,588 |
Net deferred tax liability | 11,843 |
Other liabilities | 232 |
Total liabilities | 19,686 |
Noncontrolling interests | 1,710 |
Net assets acquired | $215,709 |
Acquisition_Schedule_Of_Acquir
Acquisition (Schedule Of Acquired Finite-Lived Intangible Assets) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | $14,960 |
Below market lease contracts | 5,588 |
Above Market Lease Contracts [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | 10,874 |
Leases In Place Value [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | $4,086 |
Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Below market lease contracts, amortization period | 1 year |
Minimum [Member] | Above Market Lease Contracts [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, amortization period | 1 year |
Minimum [Member] | Leases In Place Value [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, amortization period | 1 year |
Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Below market lease contracts, amortization period | 24 years |
Maximum [Member] | Above Market Lease Contracts [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, amortization period | 24 years |
Maximum [Member] | Leases In Place Value [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, amortization period | 24 years |
Acquisition_Schedule_Of_Profor
Acquisition (Schedule Of Proforma Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Acquisition [Abstract] | ||
Revenues | $64,604 | $80,317 |
Net income (loss) attributable to HomeFed common shareholders | $3,454 | $7,188 |
Basic and diluted income (loss) per common share attributable to HomeFed common shareholders | $0.22 | $0.47 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 28, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from sale of available for sale investments | $0 | $0 | $2,600,000 | |
Fair value of investment | 11,368,000 | |||
Series 2006A Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total principal amount of bonds issued by the City | 30,795,000 | |||
Series 2006B Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Interest rate | 7.50% | |||
Expected Future cash flows discount rate | 10.00% | |||
Fair value of investment | 10,619,000 | |||
Aggregated principal amount and accrued interest | $14,000,000 |
Investments_Schedule_Of_Availa
Investments (Schedule Of Available For Sale Investments) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $35,897 | $31,894 |
Available-for-sale Securities, Total | 35,898 | 31,896 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Par Value | 35,900 | 31,900 |
Amortized Cost | 35,897 | 31,894 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | ||
Available-for-sale Securities, Total | 35,898 | 31,896 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 35,898 | 31,896 |
Significant Other Observable Inputs (Level 2) [Member] | US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total |
Investments_Schedule_Of_Held_T
Investments (Schedule Of Held To Maturity) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Held-to-maturity Securities [Line Items] | |
Fair value of investment | $11,368 |
Non-Public Bond [Member] | |
Schedule of Held-to-maturity Securities [Line Items] | |
Par Value | 10,050 |
Amortized Cost | 11,368 |
Fair value of investment | 11,368 |
Unobservable Inputs (Level 3) [Member] | Non-Public Bond [Member] | |
Schedule of Held-to-maturity Securities [Line Items] | |
Fair value of investment | $11,368 |
Real_Estate_Narrative_Details
Real Estate (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2014 | |
acre | ||
Real Estate Properties [Line Items] | ||
Area of real estate property (acres) | 95 | |
Building [Member] | Minimum [Member] | ||
Real Estate Properties [Line Items] | ||
Estimated useful life | 2 years | |
Building [Member] | Maximum [Member] | ||
Real Estate Properties [Line Items] | ||
Estimated useful life | 43 years |
Real_Estate_Schedule_Of_Real_E
Real Estate (Schedule Of Real Estate) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ||
Held for development | $143,301 | $103,465 |
Land and buildings for real estate held For investment | 45,232 | 4,045 |
Less: Accumulated depreciation | -1,341 | -438 |
Real estate held for investment, net | 43,891 | 3,607 |
Otay Ranch [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 41,809 | 38,848 |
San Elijo Hills [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 27,080 | 35,915 |
Buildings | 4,045 | 4,045 |
Pacho [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 17,496 | |
Fanita Ranch [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 15,440 | 14,688 |
SweetBay Project [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 10,717 | |
Buildings | 523 | |
Maine Projects [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 9,023 | |
Buildings | 663 | |
Maine Projects [Member] | Land [Member] | ||
Real Estate Properties [Line Items] | ||
Held for investment | 474 | |
Ashville Park [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 8,616 | 9,469 |
The Market Common [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | 6,909 | |
Buildings | 35,783 | |
The Market Common [Member] | Land [Member] | ||
Real Estate Properties [Line Items] | ||
Held for investment | 3,744 | |
Rampage [Member] | ||
Real Estate Properties [Line Items] | ||
Held for development | $6,211 | $4,545 |
Intangible_Assets_Net_Narrativ
Intangible Assets, Net (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2014 | |
Intangible Assets, Net [Abstract] | ||
Amortization expense | $1,050,000 | $4,449,000 |
Future amortization expense, intangible assets, 2015 | 750,000 | 750,000 |
Future amortization expense, intangible assets, 2016 | 550,000 | 550,000 |
Future amortization expense, intangible assets, 2017 | 500,000 | 500,000 |
Future amortization expense, intangible assets, 2018 | 300,000 | 300,000 |
Future amortization expense, intangible assets, 2019 | 150,000 | 150,000 |
Future amortization expense, intangible assets, thereafter | $800,000 | $800,000 |
Intangible_Assets_Net_Schedule
Intangible Assets, Net (Schedule Of Intangible Assets) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | 12,196 |
Below market lease contracts | 4,760 |
Above Market Lease Contracts [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | 9,151 |
Leases In Place Value [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | 3,045 |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Below market lease contracts, Amortization | 1 year |
Minimum [Member] | Above Market Lease Contracts [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amortization | 1 year |
Minimum [Member] | Leases In Place Value [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amortization | 1 year |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Below market lease contracts, Amortization | 24 years |
Maximum [Member] | Above Market Lease Contracts [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amortization | 24 years |
Maximum [Member] | Leases In Place Value [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amortization | 24 years |
Equity_Method_Investments_Sche
Equity Method Investments (Schedule Of Loans To And Investments In Associated Companies) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investments | $101,228 |
BRP Holding [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investments | 76,478 |
BRP Hotel [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investments | $24,750 |
Equity_Method_Investments_Sche1
Equity Method Investments (Schedule Of Income Related To Equity Investment) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | |
Losses from equity method investments | ($298) |
BRP Holding [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Losses from equity method investments | -847 |
BRP Hotel [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Losses from equity method investments | $549 |
Equity_Method_Investments_Sche2
Equity Method Investments (Schedule Of Equity Method Investments Summarized Financial Information) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Equity Method Investments [Abstract] | |
Assets | $220,926 |
Liabilities | 213,061 |
Total revenues | 102,637 |
Income from continuing operations before extraordinary items | 7,084 |
Net income | 7,084 |
Our (losses) related to equity investment companies | ($298) |
Noncontrolling_Interest_Detail
Noncontrolling Interest (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $12,651,000 | $10,095,000 | |
CDS Devco, Inc. [Member] | |||
Noncontrolling Interest [Line Items] | |||
Previous ownership percentage of San Elijo Ranch, Inc. | 68.00% | ||
Percentage of future cash flows entitled to noncontrolling interests | 20.00% | ||
Acquisition of noncontrolling interest | 5,000,000 | ||
Difference between amount paid and recorded for noncontrolling interest | 4,450,000 | ||
San Elijo Ranch, Inc. [Member] | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage of noncontrolling interest | 85.00% | ||
Rate of return on advances to subsidiary | 12.00% | ||
Noncontrolling interest | 11,000,000 | ||
Percentage of future cash flows entitled to noncontrolling interests | 15.00% | ||
Pacho Limited Partnership [Member] | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage of noncontrolling interest | 10.00% | ||
Noncontrolling interest | $1,650,000 |
Stock_Incentive_Plans_Narrativ
Stock Incentive Plans (Narrative) (Details) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 1999 | Aug. 31, 2004 | Jul. 31, 2004 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum grants available per employee | 30,000 | |||||||
Common stock available for grant | 300,000 | |||||||
Number of shares available for grant | 398,400 | |||||||
Compensation costs related to stock incentive plans | $200,000 | $190,000 | $180,000 | |||||
Impact of compensation costs related to stock incentive plans on net income | 120,000 | 110,000 | 110,000 | |||||
Total unrecognized compensation cost | 200,000 | |||||||
Weighted-average period of recognition for total unrecognized compensation cost | 1 year 2 months 12 days | |||||||
Number of shares authorized for repurchase | 500,000 | |||||||
Common stock repurchased, shares | 478 | 394,931 | ||||||
Purchase of common shares for treasury | $5,900,000 | |||||||
Remaining number of shares authorized for repurchase | 104,591 | |||||||
Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of fair market value allowed for the issuance of options and rights | 100.00% | |||||||
Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Automatic annual grant to directors | 1,000 | |||||||
Instalment period | 4 years | |||||||
Term until first instalment of vesting becomes exercisable | 1 year | |||||||
Term until expiration | 5 years | |||||||
Employees And Certain Non-Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Instalment period | 5 years | |||||||
Term until first instalment of vesting becomes exercisable | 1 year | |||||||
Term until expiration | 6 years | |||||||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock available for grant | 100,000 |
Stock_Incentive_Plans_Schedule
Stock Incentive Plans (Schedule Of Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Incentive Plans [Abstract] | |||
Common Shares Subject to Option, Balance | 94,500 | 96,500 | 104,500 |
Common Shares Subject to Option, Granted | 7,000 | 6,000 | 6,000 |
Common Shares Subject to Option, Cancelled | -8,000 | -14,000 | |
Common Shares Subject to Option, Exercised | -8,000 | ||
Common Shares Subject to Option, Balance | 93,500 | 94,500 | 96,500 |
Common Shares Subject to Option, Exercisable at December 31, 2014 | 64,600 | ||
Weighted-Average Exercise Price, Balance | $24.69 | $25.19 | $27.50 |
Weighted-Average Exercise Price, Granted | $58 | $32.30 | $22.35 |
Weighted-Average Exercise Price, Cancelled | $36.44 | $41.18 | |
Weighted-Average Exercise Price, Exercised | $23.50 | ||
Weighted-Average Exercise Price, Balance | $27.29 | $24.69 | $25.19 |
Weighted-Average Exercise Price, Exercisable at December 31, 2014 | $24.43 | ||
Weighted Average Remaining Contractual Term, Balance at December 31, 2014 | 1 year 9 months 18 days | ||
Weighted Average Remaining Contractual Term, Exercisable at December 31, 2014 | 1 year 4 months 24 days | ||
Aggregate Intrinsic Value, Balance at December 31, 2014 | $1,747,100 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2014 | $1,328,750 |
Stock_Incentive_Plans_Summary_
Stock Incentive Plans (Summary Of Weighted-Average Assumptions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Incentive Plans [Abstract] | |||
Risk free interest rate | 1.48% | 1.20% | 0.56% |
Expected volatility | 29.60% | 30.85% | 46.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | 4 years 3 months 18 days | 4 years 3 months 18 days | 4 years 3 months 18 days |
Fair value per grant | $15.34 | $8.70 | $8.49 |
Sales_Of_Real_Estate_Narrative
Sales Of Real Estate (Narrative) (Details) (USD $) | 0 Months Ended | |
Feb. 06, 2015 | Dec. 31, 2014 | |
Real Estate Properties [Line Items] | ||
Estimated costs to complete construction, including common areas | $1,550,000 | |
Ashville Park [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties contracted to sell | 37 | |
Ashville Park [Member] | Subsequent Event [Member] | ||
Real Estate Properties [Line Items] | ||
Cash proceeds | 5,200,000 | |
The Market Common [Member] | Subsequent Event [Member] | ||
Real Estate Properties [Line Items] | ||
Non-refundable option payment received | 25,000 | |
Single Family Lots [Member] | The Market Common [Member] | Subsequent Event [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Real estate lots agreed to sell | 47 | |
Sales price of real estate lots contracted to sell | 1,650,000 | |
Multi-Family Lots [Member] | The Market Common [Member] | Subsequent Event [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Real estate lots agreed to sell | 53 | |
Sales price of real estate lots contracted to sell | $1,350,000 |
Sales_Of_Real_Estate_Schedule_
Sales Of Real Estate (Schedule Of Real Estate Sales) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | $13,675 | $2,632 | $16,708 | $2,622 | $40,070 | $803 | $953 | $8,271 | $35,637 | $50,097 | $28,193 |
Developed Lots [Member] | San Elijo Hills [Member] | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | 10,468 | 37,370 | 20,649 | ||||||||
Developed Lots [Member] | Ashville Park [Member] | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | 6,298 | 12,038 | 7,544 | ||||||||
Developed Lots [Member] | The Market Common [Member] | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | 1,241 | ||||||||||
Single Family Homes [Member] | San Elijo Hills [Member] | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | 15,279 | ||||||||||
Revenues From Profit Sharing Agreements [Member] | San Elijo Hills [Member] | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | 1,784 | ||||||||||
Revenues From Profit Sharing Agreements [Member] | The Market Common [Member] | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | 567 | ||||||||||
Residential Condominium Unit [Member] | San Elijo Hills [Member] | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Sales of real estate | $689 |
Sales_Of_Real_Estate_Schedule_1
Sales Of Real Estate (Schedule Of Changes In Deferred Revenue) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Sales Of Real Estate [Abstract] | ||
Deferred Revenue, Beginning Balance | $2,739 | $886 |
Revenue deferred on the date of sale | 1,062 | 2,660 |
Deferred revenue recognized in operations | -1,273 | -807 |
Deferred Revenue, Ending Balance | $2,528 | $2,739 |
Other_Results_Of_Operations_Na
Other Results Of Operations (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Interest And Other Income [Abstract] | |||
Advertising costs | $600,000 | $650,000 | $650,000 |
Other_Results_Of_Operations_Sc
Other Results Of Operations (Schedule Of Interest And Other Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest And Other Income [Abstract] | |||
Interest income | $914 | $55 | $79 |
Gain on settlement of a lawsuit | 764 | ||
Gain on settlement of a contract dispute | 15 | ||
Management fee income from Leucadia | 45 | ||
Other | 115 | 70 | 13 |
Total | $1,074 | $889 | $107 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | |||
Deferred tax valuation allowance was released as a credit to income tax expense | $900,000 | $1,350,000 | $750,000 |
Alternative minimum tax rate | 20.00% | ||
Taxable income necessary to utilize all alternative minimum tax credits | $215,000,000 |
Income_Taxes_Schedule_Of_Compo
Income Taxes (Schedule Of Components Of Income Tax Benefit (Provision)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
State income taxes - current | ($428) | ($1,212) | ($642) |
State income taxes - deferred | 36 | -340 | -389 |
Federal income taxes - current | -1,501 | -2,905 | -1,337 |
Federal income taxes - deferred | 410 | -2,041 | -1,712 |
Income tax provision | ($1,483) | ($6,498) | ($4,080) |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Effective Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Expected federal income tax provision | ($2,175) | ($6,721) | ($4,029) |
State income taxes, net of federal income tax benefit | -255 | -1,009 | -670 |
Decrease in deferred tax valuation allowance | 897 | 1,360 | 742 |
Permanent differences | 115 | -77 | -61 |
Other | -65 | -51 | -62 |
Income tax provision | ($1,483) | ($6,498) | ($4,080) |
Income_Taxes_Schedule_Of_Defer
Income Taxes (Schedule Of Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Land basis | $2,423 | $3,503 |
Minimum tax credit carryovers | 34,311 | 35,349 |
Other, net | 1,589 | 1,860 |
Deferred tax asset, gross | 38,323 | 40,712 |
Valuation allowance | -33,402 | -34,299 |
Deferred tax assets, net | 4,921 | 6,413 |
Buildings | -6,930 | |
Leaseholds | -2,975 | |
Deferred tax liability | -9,905 | |
Net deferred tax asset (liability) | ($4,984) | $6,413 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Numerator- net income (loss) attributable to HomeFed Corporation common shareholders | $3,058 | $1,554 | $1,255 | ($1,981) | $12,266 | $902 | ($1,131) | ($769) | $3,886 | $11,268 | $6,022 |
Denominator for basic earnings (loss) per shareb weighted average shares | 13,364 | 7,880 | 7,880 | ||||||||
Stock options | 38 | 13 | 1 | ||||||||
Denominator for diluted earnings (loss) per shareb weighted average shares | 13,402 | 7,893 | 7,881 | ||||||||
Antidilutive outstanding options excluded from the computation of earnings per share | 4,400 | 6,000 | 85,500 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 7 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2011 | |
Commitments And Contingencies [Line Items] | ||||
Rental expense (net of sublease income) | $250,000 | $350,000 | $350,000 | |
Future minimum annual rentals | 250,000 | |||
Restricted cash | 6,419,000 | |||
General Liability And Professional Liability Insurance [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Insurance coverage | 10,000,000 | 10,000,000 | ||
General Liability [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Insurance coverage | 1,000,000 | |||
San Elijo Hills [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount of outstanding bonds | 4,900,000 | |||
San Elijo Hills [Member] | General Liability [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Insurance coverage | 1,000,000 | |||
Ashville Park [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount of outstanding bonds | 1,200,000 | |||
2012 Policy [Member] | San Elijo Hills [Member] | General Liability And Professional Liability Insurance [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Insurance coverage | 10,000,000 | |||
2012 Policy [Member] | San Elijo Hills [Member] | General Liability [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Insurance coverage | 1,000,000 | |||
SweetBay Project [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loan outstanding of school | 5,525,000 | |||
Area of land, pledged as collateral | 42 | |||
The Market Common [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Letter of credit | 5,000,000 | |||
Restricted cash | 5,000,000 | |||
BRP Leasing [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount of indemnification | 41,200,000 | |||
Amount of indemnification in projected operating expenses and taxes | 12,200,000 | |||
Restricted cash | 500,000 | |||
Escrow deposits related to leasing activities | $1,400,000 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Schedule Of Future Minimum Rental Payments Receivables From Real Estate Held For Investment) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Abstract] | |
2015 | $4,246 |
2016 | 4,235 |
2017 | 4,127 |
2018 | 3,094 |
2019 | 2,430 |
Thereafter | 16,931 |
Total | $35,063 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||||||||||
Accounts receivable, deposits and other assets | $17,393,000 | $1,715,000 | $17,393,000 | $1,715,000 | |||||||
Management fee income from Leucadia | 45,000 | ||||||||||
Monthly management fee income | 5,000 | ||||||||||
Administrative services fee expenses | 180,000 | 180,000 | 180,000 | ||||||||
Rental income | 5,741,000 | 6,004,000 | 5,591,000 | 287,000 | 131,000 | 126,000 | 133,000 | 121,000 | 17,623,000 | 511,000 | 509,000 |
Rental operating expenses | 12,835,000 | 124,000 | 128,000 | ||||||||
Notice required for Leucadia to cancel agreement | 1 year | ||||||||||
Notice required for company to cancel agreement | 30 days | ||||||||||
Leucadia [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of floors | 4 | ||||||||||
Rental income | 12,000 | 12,000 | 12,000 | ||||||||
Empire [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Master lease term | 20 years | ||||||||||
Area of office space | 286,000 | ||||||||||
Number of floors | 9 | ||||||||||
Rental income | 6,150,000 | ||||||||||
Third Party Tenants [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of floors | 5 | ||||||||||
MWR Associates [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of floors | 2 | ||||||||||
BRP Holding [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Area of office space | 850,000 | ||||||||||
Noncontrolling interest percentage | 61.25% | 61.25% | |||||||||
Rental operating expenses | 7,950,000 | ||||||||||
Non-cash expense of amortization related to purchase price accounting | 1,300,000 | ||||||||||
BRP Leasing [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Accounts receivable, deposits and other assets | 2,500,000 | 2,500,000 | |||||||||
Rental income | $3,950,000 |
Related_Party_Transactions_Sch
Related Party Transactions (Schedule Of Future Minimum Annual Rental Income) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Related Party Transaction [Line Items] | |
2015 | $4,246 |
2016 | 4,235 |
2017 | 4,127 |
2018 | 3,094 |
2019 | 2,430 |
Thereafter | 16,931 |
Total | 35,063 |
BRP Holding [Member] | |
Related Party Transaction [Line Items] | |
2015 | 11,986 |
2016 | 12,129 |
2017 | 12,299 |
2018 | 10,266 |
Total | $46,680 |
Related_Party_Transactions_Sch1
Related Party Transactions (Schedule Of Future Minimum Annual Rental Expense) (Details) (USD $) | Dec. 31, 2014 |
Related Party Transaction [Line Items] | |
2015 | $250,000 |
BRP Leasing [Member] | |
Related Party Transaction [Line Items] | |
2015 | 7,561,000 |
2016 | 7,561,000 |
2017 | 7,561,000 |
2018 | 6,301,000 |
Total | $28,984,000 |
Fair_Value_Details
Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value [Abstract] | ||
Assets measured at fair value on a nonrecurring basis | $0 | $0 |
Liabilities measured at fair value on a nonrecurring basis | $0 | $0 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 |
segment | acre | |||
Segment Reporting Information [Line Items] | ||||
Area of real estate property (acres), agreed to purchase | 95 | |||
Number of reportable segments | 3 | |||
Total consolidated revenues | $59,505 | $56,804 | $35,849 | |
Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest | 6,215 | 19,202 | 11,512 | |
Total consolidated depreciation and amortization expenses | 3,857 | 239 | 249 | |
Total consolidated assets | 433,189 | 204,402 | ||
Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 54,294 | 51,738 | 29,247 | |
Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest | 14,470 | 24,822 | 13,616 | |
Total consolidated depreciation and amortization expenses | 3,781 | 191 | 181 | |
Total consolidated assets | 378,170 | 138,444 | ||
Farming [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 5,199 | 5,054 | 6,590 | |
Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest | 1,719 | 1,899 | 3,437 | |
Total consolidated depreciation and amortization expenses | 49 | |||
Total consolidated assets | 11,531 | 13,904 | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 12 | 12 | 12 | |
Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest | -9,974 | -7,519 | -5,541 | |
Total consolidated depreciation and amortization expenses | 27 | 48 | 68 | |
Total consolidated assets | $43,488 | $52,054 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Selected Quarterly Financial Data [Abstract] | ||||||||||||
Sales of real estate | $13,675,000 | $2,632,000 | $16,708,000 | $2,622,000 | $40,070,000 | $803,000 | $953,000 | $8,271,000 | $35,637,000 | $50,097,000 | $28,193,000 | |
Rental income | 5,741,000 | 6,004,000 | 5,591,000 | 287,000 | 131,000 | 126,000 | 133,000 | 121,000 | 17,623,000 | 511,000 | 509,000 | |
Farming revenues | 599,000 | 4,600,000 | 1,249,000 | 3,805,000 | 5,199,000 | 5,054,000 | 6,590,000 | |||||
Co-op marketing and advertising fees | 262,000 | 216,000 | 290,000 | 278,000 | 270,000 | 356,000 | 280,000 | 236,000 | 1,046,000 | 1,142,000 | 557,000 | |
Cost of sales | 6,015,000 | 308,000 | 10,920,000 | 1,350,000 | 16,407,000 | 471,000 | 561,000 | 5,759,000 | 18,593,000 | 23,198,000 | 13,659,000 | |
Reduction in estimated liability for environmental remediation | -650,000 | -662,000 | -1,500,000 | |||||||||
Farming expenses | 409,000 | 980,000 | 934,000 | 991,000 | 377,000 | 881,000 | 897,000 | 876,000 | 3,314,000 | 3,031,000 | 3,041,000 | |
Income (loss) from operations | 3,543,000 | 2,526,000 | 2,354,000 | -3,282,000 | 20,837,000 | 1,126,000 | -2,345,000 | -1,305,000 | 5,141,000 | 18,313,000 | 11,405,000 | |
Net income (loss) attributable to HomeFed Corporation common shareholders | $3,058,000 | $1,554,000 | $1,255,000 | ($1,981,000) | $12,266,000 | $902,000 | ($1,131,000) | ($769,000) | $3,886,000 | $11,268,000 | $6,022,000 | |
Basic earnings (loss) per common share attributable to HomeFed Corporation common shareholders | $0.20 | $0.10 | $0.08 | ($0.24) | $1.56 | $0.11 | ($0.14) | ($0.10) | ||||
Diluted earnings (loss) per common share attributable to HomeFed Corporation common shareholders | $0.20 | $0.10 | $0.08 | ($0.24) | $1.56 | $0.11 | ($0.14) | ($0.10) |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Feb. 28, 2015 | Jun. 30, 2014 |
acre | acre | acre | |
Subsequent Event [Line Items] | |||
Area of land related to environmental remediation | 30 | ||
Area of real estate property (acres), agreed to purchase | 95 | ||
Subsequent Event [Member] | Otay Ranch [Member] | |||
Subsequent Event [Line Items] | |||
Area of real estate property (acres), agreed to purchase | 64 | ||
Cash consideration | $3,750 | ||
Non-refundable option payment | $250 | ||
Subsequent Event [Member] | Otay Ranch [Member] | Single Family Homes [Member] | |||
Subsequent Event [Line Items] | |||
Number of real estate lots | 62 | ||
Subsequent Event [Member] | Otay Ranch [Member] | Industrial Development [Member] | |||
Subsequent Event [Line Items] | |||
Area of real estate property (acres), agreed to purchase | 26 |