Simon Property Group, Inc. Simon Property Group, L.P. Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions)
Accumulated Other Comprehensive Income (Loss) Simon The total accumulated other comprehensive income (loss) related to Simon’s currency translation adjustment was ($250.2) million, ($221.6) million and ($199.5) million as of December 31, 2024, 2023 and 2022, respectively. The reclassifications out of accumulated other comprehensive income (loss) consisted of the following as of December 31: For the Year Ended December 31, Affected line item where 2024 2023 2022 net income is presented
5,623
Accumulated derivative gains, net. . . . . $
$
4,084 $
1,595 Interest expense
Net income attributable to noncontrolling interests
(757)
(533)
(202)
4,866
$
$
3,551 $
1,393
The Operating Partnership The total accumulated other comprehensive income (loss) related to the Operating Partnership’s currency translation adjustment was ($289.1) million, ($254.9) million and ($228.3) million as of December 31, 2024, 2023 and 2022, respectively. The reclassifications out of accumulated other comprehensive income (loss) consisted of the following as of December 31: For the Year Ended December 31, Affected line item where 2024 2023 2022 net income is presented
5,623
Accumulated derivative gains, net. . . . . $
$
4,084 $
1,595 Interest expense
Revenue Recognition We, as a lessor, primarily under long-term leases, retain substantially all of the risks and benefits of ownership of the investment properties and account for our leases as operating leases. We accrue fixed lease income on a straight-line basis over the terms of the leases when we believe substantially all lease income, including the related straight-line rent receivable, is probable of collection. Substantially all of our retail tenants are also required to pay overage rents based on reported sales over a stated base amount during the lease year. We recognize this variable lease consideration only when each tenant’s reported sales exceed the applicable sales threshold. We amortize any tenant inducements as a reduction of lease income utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. We structure our leases to allow us to recover a significant portion of our property operating, real estate taxes, repairs and maintenance, and advertising and promotion expenses from our tenants. A substantial portion of our leases, other than those for anchor stores, require the tenant to reimburse us for a substantial portion of our operating expenses, including common area maintenance, or CAM, real estate taxes and insurance. Such property operating expenses typically include utility, insurance, security, janitorial, landscaping, food court and other administrative expenses. This significantly reduces our exposure to increases in costs and operating expenses resulting from inflation or otherwise. For substantially all of our leases in the U.S. mall portfolio, we receive a fixed payment from the tenant for the CAM component which is
109
Powered by FlippingBook