Segment Reporting We have identified two reportable segments: (1) Real Estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of our real estate assets. Our observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and different marketing strategies. We account for intersegment sales and rents as if the sales or rents were to third parties, that is, at current market prices. The following tables provide components of segment profit for each segment for the years ended December 31, 2019 , 2018 and 2017, as reviewed by management (amounts in thousands): 2019 Real Estate Observatory Intersegment Elimination Total Revenues: Rental revenue $ 586,414 $  $  $ 586,414 Intercompany rental revenue 82,469  (82,469 )  Observatory revenue  128,769  128,769 Lease termination fees 4,352   4,352 Third-party management and other fees 1,254   1,254 Other revenue and fees 10,554   10,554 Total revenues 685,043 128,769 (82,469 ) 731,343 Operating expenses: Property operating expenses 174,977   174,977 Intercompany rent expense  82,469 (82,469 )  Ground rent expense 9,326   9,326 General and administrative expenses 61,063   61,063 Observatory expenses  33,767  33,767 Real estate taxes 115,916   115,916 Depreciation and amortization 181,558 30  181,588 Total operating expenses 542,840 116,266 (82,469 ) 576,637 Total operating income 142,203 12,503  154,706 Other income (expense): Interest income 11,259   11,259 Interest expense (79,246 )   (79,246 ) Income before income taxes 74,216 12,503  86,719 Income tax expense (896 ) (1,533 )  (2,429 ) Net income $ 73,320 $ 10,970 $  $ 84,290 Segment assets $ 3,671,211 $ 260,623 $  $ 3,931,834 Expenditures for segment assets $ 191,630 $ 64,294 $  $ 255,924 2018 Real Estate Observatory Intersegment Elimination Total Revenues: Rental revenue $ 493,231 $  $  $ 493,231 Intercompany rental revenue 79,954  (79,954 )  Tenant expense reimbursement 72,372   72,372 Observatory revenue  131,227  131,227 Lease termination fees 20,847   20,847 Third-party management and other fees 1,440   1,440 Other revenue and fees 12,394   12,394 Total revenues 680,238 131,227 (79,954 ) 731,511 Operating expenses: Property operating expenses 167,379   167,379 Intercompany rent expense  79,954 (79,954 )  Ground rent expense 9,326   9,326 General and administrative expenses 52,674   52,674 Observatory expenses  32,767  32,767 Real estate taxes 110,000   110,000 Depreciation and amortization 168,430 78  168,508 Total operating expenses 507,809 112,799 (79,954 ) 540,654 Total operating income 172,429 18,428  190,857 Other income (expense): Interest income 10,661   10,661 Interest expense (79,623 )   (79,623 ) Loss on early extinguishment of debt     Loss from derivative financial instrument     Income before income taxes 103,467 18,428  121,895 Income tax expense (1,114 ) (3,528 )  (4,642 ) Net income $ 102,353 $ 14,900 $  $ 117,253 Segment assets $ 3,930,330 $ 265,450 $  $ 4,195,780 Expenditures for segment assets $ 201,685 $ 54,811 $  $ 256,496 2017 Real Estate Observatory Intersegment Elimination Total Revenues: Rental revenue $ 483,944 $  $  $ 483,944 Intercompany rental revenue 77,646  (77,646 )  Tenant expense reimbursement 73,679   73,679 Observatory revenue  127,118  127,118 Lease termination fees 13,551   13,551 Third-party management and other fees 1,400   1,400 Other revenue and fees 9,834   9,834 Total revenues 660,054 127,118 (77,646 ) 709,526 Operating expenses: Property operating expenses 163,531   163,531 Intercompany rent expense  77,646 (77,646 )  Ground rent expense 9,326   9,326 General and administrative expenses 50,315   50,315 Observatory expenses  30,275  30,275 Real estate taxes 102,466   102,466 Acquisition expenses     Depreciation and amortization 160,630 80  160,710 Total operating expenses 486,268 108,001 (77,646 ) 516,623 Total operating income 173,786 19,117  192,903 Other income (expense): Interest income 2,942   2,942 Interest expense (68,473 )   (68,473 ) Loss on early extinguishment of debt (2,157 )   (2,157 ) Loss from derivative financial instrument (289 )   (289 ) Income before income taxes 105,809 19,117  124,926 Income tax expense (1,306 ) (5,367 )  (6,673 ) Net income $ 104,503 $ 13,750 $  $ 118,253 Segment assets $ 3,670,907 $ 260,440 $  $ 3,931,347 Expenditures for segment assets $ 191,541 $ 36,621 $  $ 228,162