Accounting for the Impairment or Disposal of Long-Lived Assets

12 Months Ended

Dec. 31, 2014

Accounting for the Impairment or Disposal of Long-Lived Assets [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS

In November 2013, the Company entered into an Agreement of Sale and Purchase pursuant to which the Company agreed to sell 97 operating properties containing an aggregate of 6.6 million square feet and 159 acres of land for $697.3 million (the "Portfolio Sale"). In December 2013, the Company closed on the first of two planned settlements under this agreement. The proceeds from the first settlement were $367.7 million and included 49 properties totaling approximately 4.0 million square feet of space and 140 acres of land. In January 2014, the Company closed on the remaining settlement for proceeds of $329.6 million which consisted of 23 properties totaling 1.4 million square feet and 19 acres of land in the Maryland reportable segment, 24 properties and 1.2 million square feet in the New Jersey reportable segment and one property totaling 37,000 square feet in the Company's Southeastern PA reportable segment. All of the operating properties in the Portfolio Sale were considered held for sale as of December 31, 2013.

Prior to the adoption of ASU 2014-08 on January 1, 2014, the results of operations for all operating properties sold or held for sale during the reported periods were shown under discontinued operations on the consolidated statements of comprehensive income. Under ASU 2014-08, operating properties that were sold or classified as held for sale before the adoption of ASU 2014-08 continue to be classified as discontinued operations. Accordingly, operating properties previously reported as discontinued operations (including the Portfolio Sale) will continue to be presented as discontinued operations on the consolidated statements of comprehensive income for all periods presented. The proceeds from the disposition of properties excluding the Portfolio Sale that were included in discontinued operations were $136.7 million and $228.5 million for the years ended December 31, 2013 and 2012, respectively.

A summary of the results of operations for the properties classified as discontinued operations through the respective disposition dates is as follows (in thousands):

	For the Year Ended December 31,
	2014			2013			2012
Revenues	$	4,728		$	113,586		$	137,476
Operating expenses	(2,258		)	(41,875		)	(48,956		)
Interest and other income	37			213			580
Interest expense	(557		)	(15,903		)	(19,783		)
Depreciation and amortization	—			(29,566		)	(30,739		)
Income before gain on property dispositions	1,950			26,455			38,578
Gain on property dispositions	46,631			95,384			12,426
Net income	$	48,581		$	121,839		$	51,004

Interest expense has been 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.

One property totaling 83,000 square feet in the Company’s Southeastern PA reportable segment was considered held for sale as of December 31, 2014. Under ASU 2014-08, this property has not been classified as discontinued operations.

Asset Impairment Charges [Text Block]

Asset Impairment

During the years ended December 31, 2014, 2013 and 2012, the Company recognized impairment losses of $0.1 million, $1.9 million and $6.9 million, 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	2014		2013		2012
Carolinas	$	—	$	—	$	36
Chicago/Milwaukee	—		—		514
Richmond/Hampton Roads	—		—		27
South Florida	—		—		(51		)	(1)
Southeastern PA	106				1,699
Tampa	—		248		—
United Kingdom	—		784		4,597
Other	11		872		29
Total	$	117	$	1,904	$	6,851

(1) Represents recovery of estimated sales costs on properties sold.

For the year ended December 31, 2014, $0.1 million in impairments related to properties sold or held for sale were included in the caption gain on property dispositions in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2013, $0.9 million in impairments related to properties sold were included in the caption discontinued operations in the Company's consolidated statements of comprehensive income, $0.2 million in impairments related to land parcels sold were included in the caption gain on property dispositions in the Company's consolidated statements of comprehensive income and $0.8 million in impairment was included in the caption equity in earnings (loss) of unconsolidated joint ventures in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2012, $2.3 million in impairment related to properties sold was 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 earnings (loss) of unconsolidated joint ventures 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, 2014.