Discontinued Operations

6 Months Ended

Jun. 30, 2015

Notes To Financial Statements [Abstract]

Discontinued Operations

Discontinued Operations

In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. We adopted ASU 2014-08 during the period ending March 31, 2014. Due to the early adoption of ASU 2014-08, we did not classify Brookwood Mall, Colonial Village at North Arlington, Colonial Village at Vista Ridge, Greenbrook, Colonial Village at Inverness, Colonial Village at Charleston Place, Colonial Village at Huntleigh Woods, Colonial Village at Ashford Place, or Colonial Promenade Huntsville, which were sold during the year ended December 31, 2014, as discontinued operations. We also did not classify Vistas, Austin Chase, Fairways at Hartland, Fountain Lake, Post House Jackson, Post House North, Woodwinds, Oaks, Woods of Post House, Bradford Pointe, Huntington Chase, Westbury Creek, Colony at South Park, Paddock Park, Anatole, Bradford Chase, Sutton Place, Southland Station, or Colonial Promenade Craft Farms, which were sold during the six months ended June 30, 2015, as discontinued operations.

As part of the merger with Colonial Properties Trust, Inc., or Colonial, on October 1, 2013, we acquired the Nord du Lac commercial property. Starting on this date, the criteria for classifying this property as Held for Sale were met and as a result the assets and liabilities for this property were presented as held for sale in the Condensed Consolidated Balance Sheets , and the results of operations were included within discontinued operations in the Condensed Consolidated Statement of Operations for all periods presented through the period ended March 31, 2015. Additionally, we ceased recording depreciation and amortization following the held for sale designation. On May 29, 2015, after several amendments to the original sale agreement extending the closing date, the buyer elected not to purchase the property and consequently, the Nord Du Lac Property no longer meets the criteria to be classified as held for sale as of June 30, 2015. Approximately $34.1 million of real estate assets that were classified as held for sale as of March 31, 2015 was reclassified to held for use as of June 30, 2015, and included in the applicable line item in the accompanying Condensed Consolidated Balance Sheets. We measured the property to be reclassified at the lower of (1) its carrying value before being classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had the asset been continuously classified as held for use or (2) its fair value at the date of the subsequent decision not to sell. As a result of this reclassification, we recorded an additional $2.3 million of depreciation and amortization expense during the three months ended June 30, 2015, which represents the depreciation and amortization expense on the Nord du Lac property that would have been recognized had the property been continuously classified as held for use. Additionally, the related results of operations previously recorded in discontinued operations have been included in the applicable line items of continuing operations in the accompanying Condensed Consolidated Statements of Operations for all periods presented, and thus are not presented in discontinued operations in the tables below.

Willow Creek, one of the properties that we sold during the six months ended June 30, 2014, has been classified as discontinued operations in the Consolidated Statements of Operations. Willow Creek is included in discontinued operations because it was shown in discontinued operations as of December 31, 2013, and thus is not subject to ASU 2014-08.

The following is a summary of income from continuing and discontinued operations attributable to MAA and noncontrolling interest for the three- and six-month periods ended June 30, 2015 and 2014 (dollars in thousands):

	Three months ended June 30,					Six months ended June 30,
	2015		2014			2015		2014
Income from continuing operations:
Attributable to MAA	$	136,299	$	31,618		$	197,566	$	41,341
Attributable to noncontrolling interest	7,574		1,773			10,984		2,332
Income from continuing operations	$	143,873	$	33,391		$	208,550	$	43,673
Income from discontinued operations:
Attributable to MAA	$	—	$	(5	)	$	—	$	5,138
Attributable to noncontrolling interest	—		—			—		289
Income from discontinued operations	$	—	$	(5	)	$	—	$	5,427

The following is a summary of earnings from discontinued operations for MAA and MAALP for the three- and six-month periods ended June 30, 2015 and 2014 (dollars in thousands):

	Three months ended June 30,					Six months ended June 30,
	2015		2014			2015		2014
Revenues
Rental revenues	$	—	$	6		$	—	$	76
Other revenues	—		—			—		10
Total revenues	$	—	$	6		$	—	$	86
Expenses
Property operating expenses	$	—	$	10		$	—	$	59
Depreciation and amortization	—		—			—		42
Interest expense and other	—		—			—		36
Total expense	$	—	$	10		$	—	$	137
Loss from discontinued operations before gain on sale	$	—	$	(4	)	$	—	$	(51	)
Net loss on insurance and other settlement proceeds on discontinued operations	—		(1		)	—		(3		)
Gain on sale of discontinued operations	—		—			—		5,481
(Loss) Income from discontinued operations	$	—	$	(5	)	$	—	$	5,427