2017 Q4 Form 10-K Financial Statement

#000168979618000004 Filed on March 12, 2018

View on sec.gov

Income Statement

Concept 2017 Q4 2017 2016 Q4
Revenue $156.4M $543.0M $122.0M
YoY Change 28.13% 13.48% 2.38%
Cost Of Revenue $81.50M $237.2M $43.70M
YoY Change 86.5% 35.16% -3.74%
Gross Profit $74.90M $305.8M $78.40M
YoY Change -4.46% 0.92% 6.23%
Gross Profit Margin 47.9% 56.32% 64.24%
Selling, General & Admin $18.60M $68.60M $2.000M
YoY Change 830.0% 36.11% -83.87%
% of Gross Profit 24.83% 22.43% 2.55%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $52.90M $164.6M $35.50M
YoY Change 49.01% 21.85% 0.85%
% of Gross Profit 70.63% 53.82% 45.28%
Operating Expenses $70.50M $595.2M $46.70M
YoY Change 50.96% 62.74% -1.06%
Operating Profit $4.400M -$52.18M $31.70M
YoY Change -86.12% -146.26% 19.17%
Interest Expense -$13.90M $58.14M -$12.40M
YoY Change 12.1% 12.28% 2.48%
% of Operating Profit -315.91% -39.12%
Other Income/Expense, Net -$36.82M
YoY Change -25.97%
Pretax Income -$28.30M -$89.00M $15.60M
YoY Change -281.41% -241.14% -3.7%
Income Tax -$5.700M -$9.912M $200.0K
% Of Pretax Income 1.28%
Net Earnings -$18.75M -$71.75M $12.63M
YoY Change -248.47% -215.78% -21.06%
Net Earnings / Revenue -11.99% -13.21% 10.35%
Basic Earnings Per Share -$0.15 -$0.70 $0.13
Diluted Earnings Per Share -$0.15 -$0.70 $0.13
COMMON SHARES
Basic Shares Outstanding 118.0M shares 105.4M shares
Diluted Shares Outstanding 105.4M shares

Balance Sheet

Concept 2017 Q4 2017 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $316.7M $316.7M $29.00M
YoY Change 992.07% 992.07% -61.33%
Cash & Equivalents $316.7M $316.7M $29.00M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $193.0M $193.0M $245.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $509.7M $509.7M $274.0M
YoY Change 86.02% 81.65% -10.37%
LONG-TERM ASSETS
Property, Plant & Equipment $5.006B $5.006B $3.225B
YoY Change 55.25% 55.25% 3.02%
Goodwill
YoY Change
Intangibles $126.5M $3.063M
YoY Change 4028.86%
Long-Term Investments $261.8M $261.8M $49.80M
YoY Change 425.7% 425.7% 81.09%
Other Assets $140.8M $140.8M $102.6M
YoY Change 37.23% 37.23% 0.69%
Total Long-Term Assets $5.562B $5.562B $3.387B
YoY Change 64.24% 64.56% 3.56%
TOTAL ASSETS
Total Short-Term Assets $509.7M $509.7M $274.0M
Total Long-Term Assets $5.562B $5.562B $3.387B
Total Assets $6.072B $6.072B $3.661B
YoY Change 65.87% 65.87% 2.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $138.6M $138.6M $40.90M
YoY Change 238.88% 238.88% -24.4%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $183.3M $183.3M $40.90M
YoY Change 348.17% 348.17% -24.4%
LONG-TERM LIABILITIES
Long-Term Debt $2.204B $2.204B $1.448B
YoY Change 52.18% 52.18% 4.5%
Other Long-Term Liabilities $92.50M $92.50M $49.50M
YoY Change 86.87% 86.87% -35.21%
Total Long-Term Liabilities $2.296B $2.296B $1.498B
YoY Change 53.32% 53.32% 2.42%
TOTAL LIABILITIES
Total Short-Term Liabilities $183.3M $183.3M $40.90M
Total Long-Term Liabilities $2.296B $2.296B $1.498B
Total Liabilities $2.488B $3.101B $1.539B
YoY Change 61.69% 101.51% 1.43%
SHAREHOLDERS EQUITY
Retained Earnings -$95.81M $0.00
YoY Change
Common Stock $1.180M $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.971B $2.971B $2.122B
YoY Change
Total Liabilities & Shareholders Equity $6.072B $6.072B $3.661B
YoY Change 65.87% 65.87% 2.37%

Cashflow Statement

Concept 2017 Q4 2017 2016 Q4
OPERATING ACTIVITIES
Net Income -$18.75M -$71.75M $12.63M
YoY Change -248.47% -215.78% -21.06%
Depreciation, Depletion And Amortization $52.90M $164.6M $35.50M
YoY Change 49.01% 21.85% 0.85%
Cash From Operating Activities $50.80M $74.18M $58.10M
YoY Change -12.56% -53.5% 7.2%
INVESTING ACTIVITIES
Capital Expenditures -$94.70M -$210.6M -$52.40M
YoY Change 80.73% -11.44% -32.39%
Acquisitions
YoY Change
Other Investing Activities -$15.50M $202.9M -$2.300M
YoY Change 573.91% -1066.19% -866.67%
Cash From Investing Activities -$110.1M -$7.676M -$54.70M
YoY Change 101.28% -97.03% -29.05%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 12.50M $239.8M -11.90M
YoY Change -205.04% 369.41% -116.78%
NET CHANGE
Cash From Operating Activities 50.80M $74.18M 58.10M
Cash From Investing Activities -110.1M -$7.676M -54.70M
Cash From Financing Activities 12.50M $239.8M -11.90M
Net Change In Cash -46.80M $306.3M -8.500M
YoY Change 450.59% -735.69% -117.71%
FREE CASH FLOW
Cash From Operating Activities $50.80M $74.18M $58.10M
Capital Expenditures -$94.70M -$210.6M -$52.40M
Free Cash Flow $145.5M $284.8M $110.5M
YoY Change 31.67% -28.33% -16.1%

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24376000 USD
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12445000 USD
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0 USD
CY2017Q4 us-gaap Capital Lease Obligations
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15819000 USD
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0 USD
CY2016 us-gaap Cash Acquired From Acquisition
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0 USD
CY2017 us-gaap Cash Acquired From Acquisition
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97416000 USD
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29000000 USD
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316676000 USD
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16162000 USD
CY2015Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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80446000 USD
CY2016Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
32263000 USD
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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338557000 USD
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64284000 USD
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306294000 USD
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CY2017Q4 us-gaap Commitments And Contingencies
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0
CY2016 us-gaap Common Stock Dividends Per Share Declared
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0
CY2017 us-gaap Common Stock Dividends Per Share Declared
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0.45
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0.01
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500000000 shares
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111055000 USD
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101511000 USD
CY2016 us-gaap Cost Of Other Property Operating Expense
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100304000 USD
CY2017Q4 us-gaap Common Stock Shares Issued
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117955000 shares
CY2017Q3 us-gaap Common Stock Shares Issued
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94700000 shares
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117955000 shares
CY2017Q3 us-gaap Common Stock Shares Outstanding
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118000000 shares
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1180000 USD
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49628000 USD
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61974000 USD
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49628000 USD
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61974000 USD
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420000 USD
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1083000 USD
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496000 USD
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0 USD
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6654000 USD
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57910000 USD
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67180000 USD
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171153000 USD
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99348000 USD
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103973000 USD
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0 USD
CY2016 us-gaap Deferred Income Tax Expense Benefit
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0 USD
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0 USD
CY2017Q4 us-gaap Deferred Income Tax Liabilities
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12392000 USD
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0 USD
CY2017Q4 us-gaap Deferred Income Tax Liabilities Net
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8202000 USD
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0 USD
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0 USD
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3331000 USD
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3730000 USD
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136582000 USD
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146315000 USD
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0 USD
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4190000 USD
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0 USD
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1710000 USD
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0 USD
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133343000 USD
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1675000 USD
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0 USD
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805000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities
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0 USD
CY2017Q4 us-gaap Deferred Tax Liabilities
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8202000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities
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8200000 USD
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0 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Leasing Arrangements
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11840000 USD
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0 USD
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552000 USD
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2300000 USD
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2400000 USD
CY2017 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
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3600000 USD
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100000 USD
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6317000 USD
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144984000 USD
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161659000 USD
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146985000 USD
CY2016 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
135072000 USD
CY2017 us-gaap Depreciation Depletion And Amortization
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164580000 USD
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0 USD
CY2016 us-gaap Derivative Gain Loss On Derivative Net
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0 USD
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0 USD
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31097000 USD
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75062000 USD
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0 USD
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283232000 USD
CY2017Q4 us-gaap Due To Related Parties Current And Noncurrent
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0 USD
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0.11
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0.17
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0.21
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0.13
CY2016 us-gaap Earnings Per Share Basic
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0.62
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0.06
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0.11
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0.49
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EarningsPerShareDiluted
0.62
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0.06
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0.11
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0.11
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0 USD
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0 USD
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467000 USD
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P3Y3M18D
CY2017Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Share Based Awards Other Than Options
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124900000 USD
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1348000 USD
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1520000 USD
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2563000 USD
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2371401000 USD
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0.17
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0.21
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0.13
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EquityMethodInvestmentSummarizedFinancialInformationEquityOrCapital
270034000 USD
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EquityMethodInvestmentSummarizedFinancialInformationEquityOrCapital
1104784000 USD
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327862000 USD
CY2017Q4 us-gaap Equity Method Investment Summarized Financial Information Liabilities
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1266617000 USD
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598239000 USD
CY2017Q4 us-gaap Equity Method Investment Summarized Financial Information Liabilities And Equity
EquityMethodInvestmentSummarizedFinancialInformationLiabilitiesAndEquity
2371401000 USD
CY2016Q4 us-gaap Equity Method Investment Summarized Financial Information Minority Interest
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343000 USD
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0 USD
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340000 USD
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5234000 USD
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67275000 USD
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68118000 USD
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135256000 USD
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12908000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
26428000 USD
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44971000 USD
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FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
22338000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
11248000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
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12607000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
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16136000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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19167000 USD
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15971000 USD
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152895000 USD
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3063000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Net
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126467000 USD
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0 USD
CY2016 us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
CY2017 us-gaap Gains Losses On Extinguishment Of Debt
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50048000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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63057000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-88996000 USD
CY2015 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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269901000 USD
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281168000 USD
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297121000 USD
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-4283000 USD
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-947000 USD
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-4143000 USD
CY2015 us-gaap Income Tax Expense Benefit
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420000 USD
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IncomeTaxExpenseBenefit
1083000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2015 us-gaap Income Taxes Paid
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677000 USD
CY2016 us-gaap Income Taxes Paid
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1165000 USD
CY2017 us-gaap Income Taxes Paid
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3396000 USD
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428000 USD
CY2016 us-gaap Increase Decrease In Accounts And Notes Receivable
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3693000 USD
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2098000 USD
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-4004000 USD
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7667000 USD
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16160000 USD
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13667000 USD
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16614000 USD
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23481000 USD
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CY2017 us-gaap Increase Decrease In Other Operating Liabilities
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3063000 USD
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126467000 USD
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50823000 USD
CY2016 us-gaap Interest Expense
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51781000 USD
CY2017 us-gaap Interest Expense
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58141000 USD
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55500000 USD
CY2016 us-gaap Interest Expense Other
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54300000 USD
CY2017 us-gaap Interest Expense Other
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65400000 USD
CY2015 us-gaap Interest Paid Capitalized
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6437000 USD
CY2016 us-gaap Interest Paid Capitalized
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4076000 USD
CY2017 us-gaap Interest Paid Capitalized
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12727000 USD
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54055000 USD
CY2016 us-gaap Interest Paid Net
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45373000 USD
CY2017 us-gaap Interest Paid Net
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52388000 USD
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0 USD
CY2016Q4 us-gaap Interest Payable Current And Noncurrent
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0 USD
CY2017Q4 us-gaap Interest Payable Current And Noncurrent
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3714000 USD
CY2016Q4 us-gaap Investment Building And Building Improvements
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3064466000 USD
CY2017Q4 us-gaap Investment Building And Building Improvements
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3670268000 USD
CY2015 us-gaap Investment Income Net
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2557000 USD
CY2016 us-gaap Investment Income Net
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2992000 USD
CY2017 us-gaap Investment Income Net
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1788000 USD
CY2016Q4 us-gaap Land And Land Improvements
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939592000 USD
CY2017Q4 us-gaap Land And Land Improvements
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1368294000 USD
CY2016Q4 us-gaap Land Available For Development
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0 USD
CY2017Q4 us-gaap Land Available For Development
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8293000 USD
CY2015 us-gaap Lease And Rental Expense
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160385000 USD
CY2016 us-gaap Lease And Rental Expense
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158088000 USD
CY2017 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
177489000 USD
CY2016Q4 us-gaap Liabilities
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1538656000 USD
CY2017Q4 us-gaap Liabilities
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2487864000 USD
CY2016Q4 us-gaap Liabilities And Stockholders Equity
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3660640000 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
6071807000 USD
CY2017Q3 us-gaap Limited Partners Capital Account Units Issued
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5800000 shares
CY2017Q3 us-gaap Limited Partners Capital Account Units Outstanding
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19800000 shares
CY2016Q4 us-gaap Line Of Credit
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0 USD
CY2017Q4 us-gaap Line Of Credit
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159541000 USD
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0 USD
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0 USD
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CY2015 us-gaap Net Income Loss Attributable To Redeemable Noncontrolling Interest
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0 USD
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0 USD
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CY2016Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
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21014000 USD
CY2016Q4 us-gaap Net Income Loss Available To Common Stockholders Basic
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12630000 USD
CY2016 us-gaap Net Income Loss Available To Common Stockholders Basic
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30514000 USD
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0 USD
CY2017 us-gaap Noncash Or Part Noncash Acquisition Other Liabilities Assumed1
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0 USD
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3586000 USD
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307181000 USD
CY2017Q4 us-gaap Operating Leases Future Minimum Payments Receivable In Two Years
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1837000 USD
CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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0 USD
CY2016 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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0 USD
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0 USD
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0 USD
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1438000 USD
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48753000 USD
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OtherIncome
5381000 USD
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2359000 USD
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3763000 USD
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26540000 USD
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0 USD
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0 USD
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4556000 USD
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237814000 USD
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210593000 USD
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0 USD
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1467000 USD
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1966000 USD
CY2017 us-gaap Payments To Acquire Other Investments
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2207000 USD
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7865000 USD
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18000 USD
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23027000 USD
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16321000 USD
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2199000 USD
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9038000 USD
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0 USD
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50934000 USD
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16495000 USD
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160203000 USD
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0 USD
CY2016 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
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0 USD
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6929000 USD
CY2015 us-gaap Proceeds From Issuance Of Unsecured Debt
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0 USD
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0 USD
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50000000 USD
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0 USD
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0 USD
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115751000 USD
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0 USD
CY2017 us-gaap Proceeds From Minority Shareholders
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357000 USD
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341460000 USD
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ProceedsFromNotesPayable
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CY2017 us-gaap Proceeds From Notes Payable
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4000000 USD
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CY2016 us-gaap Profit Loss
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1400000 USD
CY2016 us-gaap Provision For Doubtful Accounts
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751000 USD
CY2016 us-gaap Provision For Doubtful Accounts
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750600 USD
CY2017 us-gaap Provision For Doubtful Accounts
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3800000 USD
CY2017 us-gaap Provision For Doubtful Accounts
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3807000 USD
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23155000 USD
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100076000 USD
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55998000 USD
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1762611000 USD
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2922442000 USD
CY2017Q4 us-gaap Real Estate And Accumulated Depreciation Initial Cost Of Land
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1340744000 USD
CY2017Q4 us-gaap Real Estate Federal Income Tax Basis
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3500000000 USD
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217261000 USD
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4155391000 USD
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45776000 USD
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261811000 USD
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RealEstateOtherAcquisitions
0 USD
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428702000 USD
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58874000 USD
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57784000 USD
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66434000 USD
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0 USD
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115630000 USD
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4000000 USD
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75000000 USD
CY2015 us-gaap Repayments Of Long Term Capital Lease Obligations
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0 USD
CY2016 us-gaap Repayments Of Long Term Capital Lease Obligations
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0 USD
CY2017 us-gaap Repayments Of Long Term Capital Lease Obligations
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17827000 USD
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CY2016 us-gaap Repayments Of Notes Payable
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24364000 USD
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272905000 USD
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21881000 USD
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CY2015 us-gaap Revenues
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470607000 USD
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116784000 USD
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116339000 USD
CY2016Q3 us-gaap Revenues
Revenues
123357000 USD
CY2016Q4 us-gaap Revenues
Revenues
122039000 USD
CY2016 us-gaap Revenues
Revenues
478519000 USD
CY2017Q1 us-gaap Revenues
Revenues
116272000 USD
CY2017Q2 us-gaap Revenues
Revenues
118020000 USD
CY2016 us-gaap Sec Schedule Iii Real Estate Accumulated Depreciation Depreciation Expense
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122612000 USD
CY2017 us-gaap Sec Schedule Iii Real Estate Accumulated Depreciation Depreciation Expense
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136559000 USD
CY2015 us-gaap Sec Schedule Iii Real Estate Writedown Or Reserve Amount
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23120000 USD
CY2016 us-gaap Sec Schedule Iii Real Estate Writedown Or Reserve Amount
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100076000 USD
CY2017 us-gaap Sec Schedule Iii Real Estate Writedown Or Reserve Amount
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CY2017 us-gaap Basis Of Accounting
BasisOfAccounting
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying consolidated and combined financial statements and notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All intercompany transactions and balances have been eliminated. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying consolidated and combined financial statements include the accounts of JBG SMITH and our wholly owned subsidiaries and those other entities, including JBG SMITH LP, in which we have a controlling financial interest, including where we have been determined to be the primary beneficiary of a variable interest entity ("VIE"). See Note 6 for additional information on our consolidated VIEs. The portions of the equity and net income (loss) of consolidated subsidiaries that are not attributable to JBG SMITH are presented separately as amounts attributable to noncontrolling interests in the consolidated and combined financial statements. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">References to the financial statements refer to our consolidated and combined financial statements as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, and for each of the three years in the period ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">. References to the balance sheets refer to our consolidated and combined balance sheets as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">. References to the statement of operations refer to our consolidated and combined statements of operations for each of the three years in the period ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">. References to the statement of cash flows refer to our consolidated and combined statements of cash flows for each of the three years in the period ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
CY2017 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
DerivativesMethodsOfAccountingHedgingDerivatives
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Derivative financial instruments are used at times to manage exposure to variable interest rate risk. Derivative financial instruments are recognized as either assets or liabilities and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designatio</font><font style="font-family:Arial;font-size:10pt;">n. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Derivative Financial Instruments Designated as Cash Flow Hedges</font><font style="font-family:inherit;font-size:10pt;"> - Certain derivative financial instruments, consisting of interest rate swap and cap agreements, are designated as cash flow hedges, and are carried at their estimated fair value on a recurring basis. We assess the effectiveness of our cash flow hedges both at inception and on an ongoing basis. If the hedges are deemed to be effective, the fair value is recorded in accumulated other comprehensive income and is subsequently reclassified into "Interest expense" in the period that the hedged forecasted transactions affect earnings. Our cash flow hedges become less than perfectly effective if the critical terms of the hedging instrument and the forecasted transactions do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and interest rates. In addition, we evaluate the default risk of the counterparty by monitoring the credit worthiness of the counterparty.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Derivative instruments and hedging activities require management to make judgments on the nature of its derivatives and their effectiveness as hedges. These judgments determine if the changes in fair value of the derivative instruments are reported in the statements of operations or as a component of comprehensive income and as a component of shareholders&#8217; equity on the balance sheets. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Derivative Financial Instruments Not Designated as Hedges</font><font style="font-family:inherit;font-size:10pt;"> - Certain derivative financial instruments, consisting of interest rate swap and cap agreements, are considered economic hedges, but not designated as accounting hedges, and are carried at their estimated fair value on a recurring basis. Realized and unrealized gains are recorded in "Interest expense" in the statements of operations in the period in which the change occurs.</font></div></div>
CY2017 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period data have been reclassified to conform to the current period presentation as follows:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Reclassification of </font><font style="font-family:inherit;font-size:10pt;">$4.0 million</font><font style="font-family:inherit;font-size:10pt;"> of investments to "Other assets" on our balance sheet as of </font><font style="font-family:inherit;font-size:10pt;">December 31, 2016</font><font style="font-family:inherit;font-size:10pt;"> as a result of the revision in the line item "Investments in and advances to unconsolidated real estate ventures" on our balance sheet to include only real estate investments. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Reclassification of </font><font style="font-family:inherit;font-size:10pt;">$19.1 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$18.2 million</font><font style="font-family:inherit;font-size:10pt;"> of expenses for the </font><font style="font-family:inherit;font-size:10pt;">years ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;"> to "General and administrative: third-party real estate services" from "Property operating expenses" as it relates to expenses incurred to provide third-party real estate services. Additionally, we reclassified </font><font style="font-family:inherit;font-size:10pt;">$16.4 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$15.9 million</font><font style="font-family:inherit;font-size:10pt;"> of income for the </font><font style="font-family:inherit;font-size:10pt;">years ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;"> to "Third-party real estate services, including reimbursements" from "Other income" as it relates to revenue earned from providing third-party real estate services.</font></div></td></tr></table></div>
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant of these estimates include: (i) the underlying cash flows used to establish the fair values recorded in connection with the Combination and used in assessing impairment, (ii) the determination of useful lives for tangible and intangible assets and (iii) the allowance for doubtful accounts. Actual results could differ from those estimates.</font></div></div>

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