Segment Information

12 Months Ended

Dec. 31, 2011

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

The Company operates its portfolio of industrial and office properties primarily throughout the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States and the United Kingdom. The Company reviews the performance of the portfolio on a geographical basis. During the year ended December 31, 2011, the Company realigned the reportable segments due to changes in internal reporting responsibilities. As such, the following are considered the Company’s reportable segments:

REGIONS	MARKETS
Northeast	Southeastern PA; Lehigh/Central PA; New Jersey; Maryland
Central	Minnesota; Chicago/Milwaukee; Houston; Arizona
South	Richmond; Virginia Beach; Carolinas; Jacksonville; Orlando; South Florida; Tampa
Metro	Philadelphia; Metro Washington, D.C.
United Kingdom	County of Kent; West Midlands

The following lists the Company’s reportable segments as characterized in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010:

REGIONS (BEFORE 2011 CHANGES)	MARKETS (BEFORE 2011 CHANGES)
Northeast	Southeastern PA; Lehigh/Central PA; New Jersey
Midwest	Minnesota; Milwaukee; Chicago
Mid-Atlantic	Maryland; Carolinas; Richmond; Virginia Beach
South	Jacksonville; Orlando; South Florida; Tampa; Texas; Arizona
Philadelphia/D.C.	Philadelphia; Metro Washington, D.C.
United Kingdom	County of Kent; West Midlands

The Company evaluates the performance of its reportable segments based on net operating income. Net operating income includes operating revenue from external customers, real estate taxes, amortization of lease transaction costs and other operating expenses which relate directly to the management and operation of the assets within each reportable segment. The Company's performance measure disclosed in its 2010 annual report on Form 10-K was property level operating income. The primary difference between property level operating income and net operating income is the deduction of amortization of lease transaction costs. Comparative prior periods have been restated to reflect current segment disclosures.

The Company's accounting policies for the segments are the same as those used in the Company's Consolidated Financial Statements. There are no material inter-segment transactions.

The operating information by reportable segment is as follows (in thousands):

		Year ended
		December 31,
		2011			2010			2009
Operating revenue
	Northeast - Southeastern PA	$	174,063		$	181,412		$	185,158
	Northeast - Lehigh / Central PA	99,311			103,802			101,473
	Northeast - Other	70,582			74,660			82,221
	Central	126,268			125,501			129,340
	South	222,004			232,071			235,021
	Metro	28,578			28,617			22,057
	United Kingdom	4,408			4,211			4,403
Segment-level operating revenue		725,214			750,274			759,673
Reconciliation to total operating revenues
	Discontinued operations	(57,828		)	(93,097		)	(115,021		)
	Other	208			(176		)	44
Total operating revenue		$	667,594		$	657,001		$	644,696
Net operating income
	Northeast - Southeastern PA	$	101,982		$	108,593		$	112,148
	Northeast - Lehigh / Central PA	64,786			66,632			65,827
	Northeast - Other	35,017			37,234			43,953
	Central	68,114			70,386			73,249
	South	132,703			136,135			140,361
	Metro	19,370			20,713			15,525
	United Kingdom	(178		)	243			1,293
Segment-level net operating income		421,794			439,936			452,356
Reconciliation to income from continuing operations before income taxes
	Interest expense (1)	(131,046		)	(149,704		)	(151,764		)
	Depreciation/amortization expense (2)	(106,487		)	(109,265		)	(109,474		)
	Gain on property dispositions	5,025			4,616			1,687
	Equity in earnings of unconsolidated joint ventures	3,496			2,296			2,161
	General and administrative expense (2)	(36,140		)	(32,805		)	(31,056		)
	Discontinued operations excluding gain on property dispositions	(10,257		)	(16,516		)	(30,607		)
	Impairment charges - investment in unconsolidated joint ventures and other	—			(378		)	(82,552		)
	- goodwill	—			—			(15,700		)
	Other	(5,494		)	(6,442		)	(4,031		)
Total income from continuing operations before income taxes		$	140,891		$	131,738		$	31,020

(1) Includes interest on discontinued operations.

(2) Excludes costs which are included in determining segment-level net operating income.

operating revenue by product type and by reportable segment for the years ended December 31, 2011, 2010 and 2009 is as follows (in thousands):

	Year Ended
	December 31, 2011							December 31, 2010							December 31, 2009
	Industrial		Office		Total			Industrial		Office		Total			Industrial		Office		Total
Northeast - Southeastern PA	$	29,290	$	144,773	$	174,063		$	30,515	$	150,897	$	181,412		$	33,382	$	151,776	$	185,158
Northeast - Lehigh / Central PA	93,193		6,118		99,311			91,826		11,976		103,802			88,398		13,075		101,473
Northeast - Other	18,369		52,213		70,582			20,862		53,798		74,660			21,294		60,927		82,221
Central	61,370		64,898		126,268			57,438		68,063		125,501			63,472		65,868		129,340
South	91,439		130,565		222,004			95,123		136,948		232,071			96,172		138,849		235,021
Metro	7,817		20,761		28,578			7,591		21,026		28,617			3,470		18,587		22,057
United Kingdom	1,288		3,120		4,408			1,263		2,948		4,211			1,294		3,109		4,403
	$	302,766	$	422,448	725,214			$	304,618	$	445,656	750,274			$	307,482	$	452,191	759,673
Reconciliation to total operating revenue
Discontinued operations					(57,828		)					(93,097		)					(115,021		)
Other					208							(176		)					44
Total operating revenue					$	667,594						$	657,001						$	644,696

		As of December 31,
		2011		2010
Total assets
	Northeast - Southeastern PA	$	842,779	$	857,762
	Northeast - Lehigh / Central PA	716,772		749,137
	Northeast - Other	424,005		438,613
	Central	991,776		967,170
	South	1,448,849		1,506,972
	Metro	383,725		281,258
	United Kingdom	144,558		126,597
	Other	37,209		137,290
Total assets		$	4,989,673	$	5,064,799

The Company's real estate assets by reportable segment as of December 31, 2011 and 2010 is as follows (in thousands):

		As of December 31,
		2011		2010
Real estate assets
	Northeast - Southeastern PA	$	780,228	$	797,071
	Northeast - Lehigh / Central PA	677,519		632,399
	Northeast - Other	360,043		369,172
	Central	843,844		756,553
	South	1,288,907		1,232,983
	Metro	227,931		138,220
	United Kingdom	41,483		43,531
Total real estate assets		$	4,219,955	$	3,969,929

The Company incurred the following costs related to its long-lived assets for the years ended December 31, 2011, 2010 and 2009 (in thousands):

		Year Ended December 31,
		2011		2010		2009
Costs incurred on long-lived assets
	Northeast - Southeastern PA	$	14,851	$	9,567	$	16,850
	Northeast - Lehigh / Central PA	66,472		26,139		24,507
	Northeast - Other	9,232		11,974		9,370
	Central	119,654		28,042		40,747
	South	123,833		53,192		46,340
	Metro	98,193		428		17,982
	United Kingdom	4,838		4,805		7,465
Total costs incurred on long-lived assets		$	437,073	$	134,147	$	163,261