| Segment Reporting |
15. SEGMENT REPORTING
The Company operates in two business segments: (i) real estate and (ii) construction services. The Company provides leasing, property and facilities management, acquisition, development, construction and tenant-related services for its portfolio. In May 2006, in conjunction with the Company's acquisition of the Gale Company and related businesses, the Company acquired a business specializing solely in construction and related services whose operations comprise the Company's construction services segment. The Company had no revenues from foreign countries recorded for the three months ended March 31, 2012 and 2011. The Company had no long lived assets in foreign locations as of March 31, 2012 and December 31, 2011. The accounting policies of the segments are the same as those described in Note 2: Significant Accounting Policies, excluding depreciation and amortization.
The Company evaluates performance based upon net operating income from the combined properties in the real estate segment and net operating income from its construction services segment.
Selected results of operations for the three months ended March 31, 2012 and 2011 and selected asset information as of March 31, 2012 and December 31, 2011 regarding the Company's operating segments are as follows (dollars in thousands):
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Construction
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Corporate
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Total
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Real Estate
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Services
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& Other (d)
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Company
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Total revenues:
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Three months ended:
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March 31, 2012
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$178,887
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$3,833
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$ 260
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$182,980
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March 31, 2011
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179,736
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3,915
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562
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184,213
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Total operating and interest expenses(a):
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Three months ended:
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March 31, 2012
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$ 65,230
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$3,890
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$41,190
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$110,310
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(e)
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March 31, 2011
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74,881
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4,122
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38,967
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117,970
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(f)
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Equity in earnings (loss) of unconsolidated
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joint ventures:
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Three months ended:
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March 31, 2012
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$ 600
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--
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--
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$ 600
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March 31, 2011
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(101)
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--
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--
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(101)
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Net operating income (b):
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Three months ended:
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March 31, 2012
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$114,257
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$ (57)
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$(40,930)
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$ 73,270
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(e)
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March 31, 2011
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104,754
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(207)
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(38,405)
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66,142
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(f)
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Total assets:
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March 31, 2012
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$4,285,146
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$6,862
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$ 7,426
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$4,299,434
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December 31, 2011
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4,272,469
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7,022
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16,268
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4,295,759
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Total long-lived assets (c):
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March 31, 2012
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$4,035,730
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--
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$ 2,178
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$4,037,908
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December 31, 2011
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4,034,651
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--
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2,272
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4,036,923
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(a)
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Total operating and interest expenses represent the sum of: real estate taxes; utilities; operating services; direct construction costs; real estate services salaries, wages and other costs; general and administrative and interest expense (net of interest income). All interest expense, net of interest income, (including for property-level mortgages) is excluded from segment amounts and classified in Corporate & Other for all periods.
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(b)
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Net operating income represents total revenues less total operating and interest expenses [as defined in Note (a)], plus equity in earnings (loss) of unconsolidated joint ventures, for the period.
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(c)
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Long-lived assets are comprised of net investment in rental property, unbilled rents receivable and investments in unconsolidated joint ventures.
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(d)
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Corporate & Other represents all corporate-level items (including interest and other investment income, interest expense and non-property general and administrative expense) as well as intercompany eliminations necessary to reconcile to consolidated Company totals.
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(e)
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Excludes $47,822 of depreciation and amortization.
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(f)
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Excludes $47,707 of depreciation and amortization.
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