Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Segment Reporting Information

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



		Year ended
		December 31,
		2018			2017			2016
Operating revenue
	Carolinas/Richmond	$	79,271		$	74,158		$	66,270
	Chicago/Minneapolis	67,551			64,706			84,028
	Cincinnati/Columbus/Indianapolis	17,929			18,762			17,612
	Dallas	19,756			15,104			12,966
	Florida	64,486			59,526			99,733
	Houston	64,968			59,957			59,582
	Lehigh/Central PA	156,629			163,026			141,046
	Philadelphia	44,387			45,504			41,838
	Southern California	30,939			13,856			11,019
	United Kingdom	17,193			13,917			13,376
	Other	124,742			142,764			186,580
Segment-level operating revenue		687,851			671,280			734,050

Reconciliation to total operating revenues
	Development service fee income ⁽¹⁾	73,224			82,673			12,941
	Discontinued operations	(90,985		)	(117,346		)	(95,123		)
	Other	(130		)	(140		)	(283		)
Total operating revenue		$	669,960		$	636,467		$	651,585

Net operating income
	Carolinas/Richmond	$	58,722		$	54,652		$	47,872
	Chicago/Minneapolis	41,945			40,346			47,289
	Cincinnati/Columbus/Indianapolis	11,860			13,011			12,064
	Dallas	12,914			9,367			8,281
	Florida	45,467			41,195			65,273
	Houston	38,416			33,034			33,715
	Lehigh/Central PA	115,232			120,292			103,645
	Philadelphia	37,349			36,353			33,481
	Southern California	24,492			10,238			7,100
	United Kingdom	15,999			13,744			11,369
	Other	86,543			94,277			123,040
Segment-level net operating income		488,939			466,509			493,129

Reconciliation to income from continuing operations
	Interest expense ⁽²⁾	(95,442		)	(91,096		)	(115,077		)
	Loss on debt extinguishment	—			(49		)	(27,099		)
	Development service fee income	73,224			82,673			12,941
	Development service fee expense	(134,825		)	(85,805		)	(12,165		)
	Depreciation/amortization expense ^{(2) (3)}	(129,048		)	(132,613		)	(152,556		)
	Impairment - real estate assets ⁽²⁾	(39,688		)	(10,632		)	(3,879		)
	Gain on property dispositions	81,514			100,387			219,270
	Equity in earnings of unconsolidated joint ventures	21,382			17,155			21,970
	General and administrative expense ⁽²⁾	(53,834		)	(55,919		)	(63,181		)
	Other operating expenses	(11,994		)	(6,167		)	(5,017		)
	Discontinued operations excluding gain on property dispositions	(40,658		)	(39,728		)	(36,734		)
	Income taxes ⁽³⁾	(4,701		)	(240		)	47
	Other⁽⁴⁾	(6,083		)	(8,736		)	(2,238		)
Income from continuing operations		$	148,786		$	235,739		$	329,411

(1) Prior to the fourth quarter of 2016, development service fee income had been classified as other income and development service fee expense had been classified as general and administrative expense. See Note 2.

(2) Includes activity in discontinued operations.

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

(4) Includes severance activity in segment-level net operating income.

Schedule of Depreciation and Amortization

The amount of depreciation and amortization expense related to tenant improvement and lease transaction costs within each reporting segment for the net operating income calculation is as follows (in thousands):



	Year ended
	December 31,
	2018		2017		2016
Carolinas/Richmond	$	5,445	$	5,205	$	4,944
Chicago/Minneapolis	4,912		4,393		5,858
Cincinnati/Columbus/Indianapolis	941		699		805
Dallas	1,593		1,154		862
Florida	4,050		4,174		6,605
Houston	4,898		5,155		4,713
Lehigh/Central PA	13,121		14,475		12,262
Philadelphia	2,626		2,797		2,706
Southern California	850		612		367
United Kingdom	384		340		259
Other	7,205		10,273		13,154
Depreciation and amortization of tenant improvement and lease transaction costs	$	46,025	$	49,277	$	52,535

Schedule of Revenue from External Customers by Products and Services

The Company's operating revenue by product type and by reportable segment for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands):



	Year Ended
	December 31, 2018							December 31, 2017							December 31, 2016
	Industrial		Office		Total			Industrial		Office		Total			Industrial		Office		Total
Carolinas/Richmond	$	79,271	$	—	$	79,271		$	74,158	$	—	$	74,158		$	66,270	$	—	$	66,270
Chicago/Minneapolis	63,393		4,158		67,551			60,826		3,880		64,706			65,007		19,021		84,028
Cincinnati/Columbus/Indianapolis	17,929		—		17,929			18,762		—		18,762			17,612		—		17,612
Dallas	19,756		—		19,756			15,104		—		15,104			12,966		—		12,966
Florida	61,878		2,608		64,486			56,923		2,603		59,526			66,028		33,705		99,733
Houston	64,968		—		64,968			58,606		1,351		59,957			58,370		1,212		59,582
Lehigh/Central PA	156,629		—		156,629			163,026		—		163,026			138,766		2,280		141,046
Philadelphia	11,923		32,464		44,387			11,914		33,590		45,504			12,842		28,996		41,838
Southern California	30,939		—		30,939			13,856		—		13,856			11,019		—		11,019
United Kingdom	13,601		3,592		17,193			10,369		3,548		13,917			10,775		2,601		13,376
Other	72,076		52,666		124,742			63,660		79,104		142,764			69,613		116,967		186,580
	$	592,363	$	95,488	687,851			$	547,204	$	124,076	671,280			$	529,268	$	204,782	734,050
Reconciliation to total operating revenue
Development service fee income					73,224							82,673							12,941
Discontinued operations					(90,985		)					(117,346		)					(95,123		)
Corporate other					(130		)					(140		)					(283		)
Total operating revenue					$	669,960						$	636,467						$	651,585

Reconciliation of Assets from Segment to Consolidated

The Company's total assets by reportable segment as of December 31, 2018 and 2017 is as follows (in thousands):



	As of December 31,
	2018		2017
Carolinas/Richmond	$	525,041	$	543,922
Chicago/Minneapolis	591,792		615,186
Cincinnati/Columbus/Indianapolis	131,400		135,523
Dallas	261,538		191,320
Florida	547,232		533,861
Houston	568,756		498,584
Lehigh/Central PA	1,210,220		1,210,746
Philadelphia	624,373		665,843
Southern California	660,688		362,122
United Kingdom	463,162		251,824
Other	1,153,518		1,359,816
Segment-level total assets	6,737,720		6,368,747
Corporate Other	196,674		71,010
Total assets	$	6,934,394	$	6,439,757

Schedule of Long-Lived Assets, by Geographical Areas

The Company's real estate assets by reportable segment as of December 31, 2018 and 2017 is as follows (in thousands):



	As of December 31,
	2018		2017
Carolinas/Richmond	$	495,149	$	491,916
Chicago/Minneapolis	524,850		535,939
Cincinnati/Columbus/Indianapolis	125,859		128,377
Dallas	248,809		180,548
Florida	492,797		483,355
Houston	509,100		456,675
Lehigh/Central PA	1,151,148		1,121,115
Philadelphia	76,673		74,514
Southern California	633,450		343,520
United Kingdom	324,000		169,562
Other	869,245		715,099
Total real estate assets	$	5,451,080	$	4,700,620

Schedule of Expenditures on Long-Lived Assets

The Company incurred the following costs related to its long-lived assets for the years ended December 31, 2018, 2017 and 2016 (in thousands):



		Year Ended December 31,
		2018		2017		2016
Costs incurred on long-lived assets
	Carolinas/Richmond	$	22,220	$	31,958	$	51,647
	Chicago/Minneapolis	3,326		14,246		29,317
	Cincinnati/Columbus/Indianapolis	2,491		14,942		1,878
	Dallas	75,199		34,166		24,116
	Florida	41,967		23,832		38,312
	Houston	77,323		17,522		25,831
	Lehigh/Central PA	63,926		89,304		176,386
	Philadelphia	3,326		30,685		57,691
	Southern California	298,580		183,842		5,599
	United Kingdom	165,276		10,501		11,492
	Other	167,904		181,040		80,731
Total costs incurred on long-lived assets		$	921,538	$	632,038	$	503,000