Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting

17.   SEGMENT REPORTING

 

The Company operates in two business segments: (i) real estate and (ii) construction services.  The Company provides leasing, property 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 years ended December 31, 2012, 2011and 2010.  The Company had no long lived assets in foreign locations as of December 31, 2012, 2011 and 2010.  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 years ended December 31, 2012, 2011 and 2010 and selected asset information as of December 31, 2012 and 2011 regarding the Company’s operating segments are as follows: (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

Corporate

 

 

Total

 

 

 

Real Estate

 

 

Services

 

 

& Other (d)

 

 

Company

 

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

2012

$
686,839 

 

$
15,825 

 

$
2,079 

 

$
704,743 

 

2011

 
693,947 

 

 
13,079 

 

 
2,080 

 

 
709,106 

 

2010

 
712,436 

 

 
63,702 

 

 
(2,395)

 

 
773,743 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and interest expenses(a):

 

 

 

 

 

 

 

 

 

 

 

 

2012

$
267,439 

 

$
16,363 

 

$
166,536 

(h)

$
450,338 

(e)

2011

 
273,816 

 

 
13,874 

 

 
155,586 

 

 
443,276 

(f)

2010

 
278,126 

 

 
63,141 

 

 
177,737 

 

 
519,004 

(g)

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of unconsolidated

 

 

 

 

 

 

 

 

 

 

 

 

 joint ventures(i):

 

 

 

 

 

 

 

 

 

 

 

 

2012

$
4,089 

 

 

 -

 

 

 -

 

$
4,089 

 

2011

 
2,022 

 

 

 -

 

 

 -

 

 
2,022 

 

2010

 
2,276 

 

 

 -

 

 

 -

 

 
2,276 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

2012

$
423,489 

 

$
(538)

 

$
(164,457)

(h)

$
258,494 

(e)

2011

 
422,153 

 

 
(795)

 

 
(153,506)

 

 
267,852 

(f)

2010

 
436,586 

 

 
561 

 

 
(180,132)

 

 
257,015 

(g)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets(i):

 

 

 

 

 

 

 

 

 

 

 

 

2012

$
4,460,244 

 

$
6,255 

 

$
59,546 

 

$
4,526,045 

 

2011

 
4,272,469 

 

 
7,022 

 

 
16,268 

 

 
4,295,759 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c)(i):

 

 

 

 

 

 

 

 

 

 

 

 

2012

$
4,230,823 

 

 

 -

 

$
3,585 

 

$
4,234,408 

 

2011

 
4,034,651 

 

 

 -

 

 
2,272 

 

 
4,036,923 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)  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.

(b)  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.

(c)  Long-lived assets are comprised of net investment in rental property, unbilled rents receivable and investments in unconsolidated joint ventures.

(d)  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.  Also includes the revenues and expenses attributable to the Roseland Business acquired in 2012.

(e)  Excludes $189,008 of depreciation and amortization and $18,245 of impairments.

(f)    Excludes $190,050 of depreciation and amortization.

(g)  Excludes $187,592 of depreciation and amortization.

(h)   Included in these amounts for the year ended December 31, 2012 were transaction costs related to Roseland Transaction of $5.8 million.

(i)            Included in the real estate segment for these items are the effects of the Roseland Assets acquired in 2012.