XML 116 R27.htm IDEA: XBRL DOCUMENT v2.4.0.6
Accounting for the Impairment or Disposal of Long-Lived Assets
 12 Months Ended
Dec. 31, 2012
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 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. The proceeds from dispositions of operating properties with no continuing involvement were $228.5 million, $365.2 million and $29.0 million for the years ended December 31, 2012, 2011 and 2010, respectively.
A summary of the results of operations for the properties held for sale and disposed of through the respective disposition dates is as follows (in thousands):
 
 
For the Year Ended
 
December 31, 2012
 
December 31, 2011
 
December 31, 2010
Revenues
$
12,203

 
$
62,181

 
$
98,090

Operating expenses
(5,551
)
 
(27,838
)
 
(40,787
)
Interest and other income
36

 
325

 
370

Interest expense
(3,516
)
 
(10,328
)
 
(16,753
)
Depreciation and amortization
(634
)
 
(14,273
)
 
(24,542
)
Income before property dispositions
2,538

 
10,067

 
16,378

Gain on property dispositions
11,383

 
60,582

 
6,857

Net income
$
13,921

 
$
70,649

 
$
23,235


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 to the sum of total net assets plus consolidated debt.
Asset Impairment
During the years ended December 31, 2012, 2011 and 2010, the Company recognized impairment losses of $6.9 million, $7.8 million and $957,000, respectively. The impairment losses are for operating properties or land parcels and were in the reportable segments and for the amounts as indicated below (amounts in thousands):
 
 
Year Ended December 31,
Reportable Segment
 
2012
 
 
2011
 
 
2010
 
Southeastern PA
 
$
1,699

 
 
$
—

 
 
$
(52
)
(1) 
Lehigh/Central PA
 
—

 
 
—

 
 
—

 
Northeast - Other
 
29

 
 
538

 
 
—

 
Central
 
566

 
 
5,990

 
 
511

 
South
 
11

 
 
1,331

 
 
121

 
Metro
 
—

 
 
(30
)
(1) 
 
377

 
United Kingdom
 
4,597

 
 
—

 
 
—

 
Total
 
$
6,902

 
 
$
7,829

 
 
$
957

 
(1) Represents recovery of estimated sales costs on properties sold.
For the year ended December 31, 2012, $2.3 million in impairments related to properties sold were included in the caption discontinued operations in the Company's consolidated statements of comprehensive income and $4.6 million in impairment was included in the caption equity in (loss) earnings of unconsolidated joint ventures in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2011, $7.9 million in impairments related to properties sold were included in the caption discontinued operations in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2010, $579,000 in impairment related to properties sold was included in the caption discontinued operations in the Company's consolidated statements of comprehensive income and $378,000 in impairment was included in the caption gain on property dispositions in the Company's consolidated statements of comprehensive income. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices, a Level 1 input according to the fair value hierarchy established in ASC 820) to be generated by the properties 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 December 31, 2012.