Earnings from Discontinued Operations

12 Months Ended

Dec. 31, 2015

Notes To Financial Statements [Abstract]

EARNINGS FROM DISCONTINUED OPERATIONS

EARNINGS FROM 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 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, Colonial Promenade Craft Farms, Colonial Grand Wilmington, Savannah Creek, or Whisperwood, which were sold during 2015, as discontinued operations.

As part of the Merger on October 1, 2013, we acquired the Nord du Lac commercial property. Starting on October 1, 2013, 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 met 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 items in the accompanying Consolidated Balance Sheets. We also reclassified the balances in the Consolidated Balance Sheets as of December 31, 2014. 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 Consolidated Statements of Operations for all periods presented, and thus are not presented in discontinued operations in the tables below.

One of the ten properties that we sold during 2014, Willow Creek, as well as all nine properties sold during 2013 have been classified as discontinued operations in the accompanying Consolidated Statements of Operations. Willow Creek is included in discontinued operations because it had been designated as held for sale and was shown in discontinued operations as of December 31, 2013, and thus was not subject to ASU 2014-08.

As a result of the adoption of ASU No. 2014-08, the Company did not report any discontinued operations for the year ended December 31, 2015. The following is a summary of income from continuing and discontinued operations attributable to MAA and noncontrolling interest for the years ended December 31, 2015, 2014 and 2013 (dollars in thousands):

	2015		2014		2013
Income from continuing operations:
Attributable to MAA	$	332,287	$	142,933	$	36,539
Attributable to noncontrolling interest	18,458		8,013		1,153
Income from continuing operations	$	350,745	$	150,946	$	37,692
Income from discontinued operations:
Attributable to MAA	$	—	$	5,047	$	78,742
Attributable to noncontrolling interest	—		284		2,845
Income from discontinued operations	$	—	$	5,331	$	81,587

The following is a summary of earnings from discontinued operations for MAA for the years ended December 31, 2014 and 2013 (dollars in thousands):

	2014			2013
Revenues:
Rental revenues	$	75		$	12,499
Other revenues	10			1,189
Total revenues	85			13,688
Expenses:
Property operating expenses	74			5,886
Depreciation and amortization	42			2,716
Interest expense	32			436
Total expenses	148			9,038
Income from discontinued operations before gain on sale	(63		)	4,650
Net gain on insurance and other settlement proceeds on discontinued operations	—			93
Gain on sale of discontinued operations	5,394			76,844
Income from discontinued operations	$	5,331		$	81,587

The following is a summary of earnings from discontinued operations for MAALP for the years ended December 31, 2014 and 2013 (dollars in thousands):

	2014			2013
Revenues:
Rental revenues	$	75		$	11,446
Other revenues	10			1,099
Total revenues	85			12,545
Expenses:
Property operating expenses	74			5,390
Depreciation and amortization	42			2,480
Interest expense	32			436
Total expenses	148			8,306
Income from discontinued operations before gain on sale	(63		)	4,239
Net gain on insurance and other settlement proceeds on discontinued operations	—			93
Gain on sale of discontinued operations	5,394			65,520
Income from discontinued operations	$	5,331		$	69,852