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Accounting for the Impairment or Disposal of Long-Lived Assets
 9 Months Ended
Sep. 30, 2012
Accounting for the Impairment or Disposal of Long-Lived Assets [Abstract]  
Accounting for the Impairment or Disposal of Long-Lived Assets
Accounting for the Impairment or Disposal of Long-Lived Assets
The operating results and gain/(loss) on disposition of real estate for properties sold and held for sale are reflected in the consolidated statements of income as discontinued operations. Prior period financial statements have been adjusted for discontinued operations. There were no proceeds from dispositions of operating properties for the three months ended September 30, 2012 and $210.8 million for the nine months ended September 30, 2012 as compared to $70.6 million and $340.2 million, respectively, for the same periods in 2011.
Below is a summary of the results of operations for the properties held for sale and disposed of through the respective disposition dates (in thousands):
 
 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30, 2012
 
September 30, 2011
 
September 30, 2012
 
September 30, 2011
Revenues
$
635

 
$
11,915

 
$
12,156

 
$
51,978

Operating expenses
(260
)
 
(5,446
)
 
(5,373
)
 
(22,738
)
Interest and other income
4

 
43

 
35

 
196

Interest expense
(601
)
 
(2,353
)
 
(3,228
)
 
(9,700
)
Depreciation and amortization
(125
)
 
(2,780
)
 
(608
)
 
(11,743
)
(Loss) income before (loss) gain on property dispositions
(347
)
 
1,379

 
2,982

 
7,993

(Loss) gain on property dispositions
(1,540
)
 
4,095

 
2,505

 
54,722

(Loss) income from discontinued operations
$
(1,887
)
 
$
5,474

 
$
5,487

 
$
62,715



Two properties totaling 257,000 square feet in the Company’s Northeast - Southeastern PA reportable segment were considered held for sale as of September 30, 2012. One of these properties was sold subsequent to September 30, 2012 for proceeds of $14.5 million.
Interest expense is allocated to discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold and held for sale (without continuing involvement) to the sum of total net assets plus consolidated debt.
Asset Impairment
During the three months ended September 30, 2012, the Company recognized $1.7 million in impairment charges in the Company's Northeast - Southeastern PA reportable segment. During the nine months ended September 30, 2012, the Company recognized $2.3 million primarily related to the Company's Northeast - Southeastern PA and Central reportable segments and are included in discontinued operations in the Company’s consolidated statements of income. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices, a Level I input according to the fair value hierarchy established in ASC 820) to be generated by the property to the carrying value of the properties. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments necessary at September 30, 2012. During the three months ended September 30, 2011, the Company recognized no impairment charges. During the nine months ended September 30, 2011, the Company recognized impairment charges of $4.7 million related to properties in the Central reportable segment. These impairments are included in discontinued operations in the Company's consolidated statements of income.