Segment Information

12 Months Ended

Dec. 31, 2015

Notes To Financial Statements [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

As of December 31, 2015, we owned or had an ownership interest in 254 multifamily apartment communities in 15 different states from which we derived all significant sources of earnings and operating cash flows. Senior management evaluates performance and determines resource allocations of each of our apartment communities on a Large Market Same Store, Secondary Market Same Store, and Non-Same Store and Other basis, as well as an individual apartment community basis.  This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. The following are the three reportable operating segments for MAA and the Operating Partnership:

• Large market same store communities are generally communities in markets with a population of at least 1 million and at least 1% of the total public multifamily REIT units that we have owned and have been stabilized for at least a full 12 months.

• Secondary market same store communities are generally communities in markets with populations of more than 1 million but less than 1% of the total public multifamily REIT units or markets with populations of less than 1 million that we have owned and have been stabilized for at least a full 12 months.

• Non same store communities and other includes recent acquisitions, communities in development or lease-up, communities that have been identified for disposition, and communities that have undergone a significant casualty loss. Also included in non same store communities are non multifamily activities which represent less than 1% of our portfolio.

On the first day of each calendar year, we determine the composition of our same store operating segments for that year as well as adjusting the previous year, which allows us to evaluate full period-over-period operating comparisons. Properties in development or lease-up will be added to the same store portfolio on the first day of the calendar year after they have been owned and stabilized for at least a full 12 months. Communities are considered stabilized after achieving 90% occupancy for 90 days. Communities that have been identified for disposition are excluded from our same store portfolio.

We utilize net operating income, or NOI, in evaluating the performance of the segments.  Total NOI represents total property revenues less total property operating expenses, excluding depreciation and amortization, for all properties held during the period regardless of their status as held for sale. We believe NOI is a helpful tool in evaluating the operating performance of our segments because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

A redevelopment community is a community with a specific plan in place to upgrade at least half of the community's units over a period of time with new finishes, fixtures, and appliances, among other upgrades.  These plans include spending a pre-defined amount of capital per unit to achieve a rent increase as a result of the upgrades.  We separately identify redevelopment communities that would cause a material distortion of normal same store operating results. Routine renovations occur at a property as items need to be replaced as a normal part of operations and is done with an expectation to maintain the current level of quality at the property. There is no specified plan in place for routine renovations.

Revenues and NOI for each reportable segment for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands):

	2015			2014			2013 (1)
Revenues
Large Market Same Store	$	587,896		$	553,038		$	241,194
Secondary Market Same Store	324,771			310,281			242,464
Non-Same Store and Other	130,112			128,859			151,185
Total property revenues	1,042,779			992,178			634,843
Management fee income	—			154			647
Total operating revenues	$	1,042,779		$	992,332		$	635,490
NOI
Large Market Same Store	$	361,285		$	334,255		$	142,988
Secondary Market Same Store	200,989			190,348			147,607
Non-Same Store and Other	79,860			74,211			98,417
Total NOI	642,134			598,814			389,012
Discontinued operations NOI included above	—			16			(7,802		)
Management fee income	—			154			647
Depreciation and amortization	(294,520		)	(301,812		)	(186,979		)
Acquisition expense	(2,777		)	(2,388		)	(1,393		)
Property management expense	(30,990		)	(32,095		)	(23,083		)
General and administrative expense	(25,716		)	(20,909		)	(15,569		)
Merger related expenses	—			(3,152		)	(32,403		)
Integration costs	—			(8,395		)	(5,102		)
Interest and other non-property (expense) income	(368		)	770			466
Interest expense	(122,344		)	(123,953		)	(78,978		)
Loss on debt extinguishment/modification	(3,602		)	(2,586		)	(426		)
Net casualty (loss) gain after insurance and other settlement proceeds	473			(476		)	(143		)
Gain on sale of depreciable real estate assets excluded from discontinued operations	189,958			42,649			—
Income tax expense	(1,673		)	(2,050		)	(893		)
Gain on sale of non-depreciable real estate assets	172			350			—
(Loss) gain from real estate joint ventures	(2		)	6,009			338
Discontinued operations	—			5,331			81,587
Net income attributable to noncontrolling interests	(18,458		)	(8,297		)	(3,998		)
Net income available to MAA common shareholders	$	332,287		$	147,980		$	115,281

⁽¹⁾ The 2013 column shows the segment break down based on the 2014 same store portfolios. A comparison using the 2015 same store portfolio would not be comparative due to the nature of the classifications.

Assets for each reportable segment as of December 31, 2015 and 2014 were as follows (dollars in thousands):

	December 31, 2015		December 31, 2014
Assets
Large Market Same Store	$	3,768,455	$	3,867,457
Secondary Market Same Store	1,661,956		1,708,389
Non-Same Store and Other	1,344,833		1,189,682
Corporate assets	72,537		56,250
Total assets	$	6,847,781	$	6,821,778