DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 15.     DISCONTINUED OPERATIONS

The Company applies the provisions of ASC Topic 360 “Property, Plant and Equipment.” ASC Topic 360 requires that long-lived assets that are to be disposed of by sale be measured at the lesser of (1) book value or (2) fair value less cost to sell. In addition, it requires that one accounting model be used for long-lived assets to be disposed of by sale and broadens the presentation of discontinued operations to include more disposal transactions.

Discontinued operations relates to properties that were either sold or repositioned as held for sale as of the year ended 2012, 2011 and 2010. Income from discontinued operations relates to 7, 27, and 38 properties that were sold or repositioned in 2012, 2011 and 2010, respectively. The following table summarizes revenue and expense information for these properties sold and held for sale (dollars in thousands):

	For the Year Ended December 31,
	2012			2011			2010
Revenue
Rental	$	5,916		$	34,869		$	61,930
		5,916			34,869			61,930
Expenses
Property operations		(3,930	)		(23,081	)		(40,440	)
Other income		-			-			4,067
Mortgage and loan Interest		(1,449	)		(10,627	)		(21,420	)
General and administrative		(1,406	)		(2,084	)		(693	)
Depreciation		(948	)		(5,553	)		(10,072	)
Provision for asset impairment		-			(5,655	)		(9,723	)
	$	(7,733	)	$	(47,000	)	$	(78,281	)
Net loss from discontinued operations before gains on sale of real estate, taxes, and fees		(1,817	)		(12,131	)		(16,351	)
Gain on sale of discontinued operations		8,885			56,907			19,306
Income from discontinued operations before tax		7,068			44,776			2,955
Tax expense		(2,474	)		(15,672	)		(1,034	)
Income from discontinued operations	$	4,594		$	29,104		$	1,921

 The Company’s application of ASC Topic 360 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2011, 2010 and 2009 as income from discontinued operations. The application of ASC Topic 360 does not have an impact on net income available to common shareholders. ASC Topic 360 only impacts the presentation of these properties within the Consolidated Statements of Operations.