Accounting for the Impairment or Disposal of Long-Lived Assets

6 Months Ended

Jun. 30, 2013

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 on disposition of real estate for properties sold and held for sale are reflected in the consolidated statements of comprehensive income as discontinued operations. Prior period financial statements have been adjusted for discontinued operations. The proceeds from dispositions of operating properties for the three and six months ended June 30, 2013 were $51.4 million and $126.0 million, respectively, as compared to $204.3 million and $210.8 million, respectively, for the same periods in 2012.

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 Six Months Ended
	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Revenues	$	436		$	5,281		$	3,955		$	19,663
Operating expenses	(656		)	(2,173		)	(1,634		)	(8,049		)
Interest and other income	3			304			13			643
Interest expense	(135		)	(583		)	(491		)	(3,481		)
Depreciation and amortization	(320		)	(1,000		)	(1,103		)	(2,072		)
Income (loss) before gain on property dispositions	(672		)	1,829			740			6,704
Gain on property dispositions	7,625			2,981			49,338			4,045
Income from discontinued operations	$	6,953		$	4,810		$	50,078		$	10,749

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 and six months ended June 30, 2013, the Company recognized $535,000 in impairment charges. These impairments primarily related to the Company's South reportable segment and are included in discontinued operations in the Company’s consolidated statements of comprehensive income. During the three and six months ended June 30, 2012, the Company recognized impairment charges of $537,000 and $594,000, respectively. These impairments primarily related to the Company's Central reportable segment and are included in discontinued operations 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 I input according to the fair value hierarchy established by the FASB in Topic 820, “Fair Value Measurements and Disclosures") 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 were no additional valuation adjustments necessary at June 30, 2013.