Secured and Unsecured Debt of the Operating Partnership (Tables) (Kilroy Realty, L.P. [Member])

9 Months Ended

Sep. 30, 2014

Schedule of Term Loan Facilities [Table Text Block]

The following table summarizes the balance and terms of our term loan facility as of September 30, 2014 and December 31, 2013:



	September 30, 2014			December 31, 2013
	(in thousands)
Outstanding borrowings	$	150,000		$	150,000
Interest rate	1.40		%	1.75		%
Maturity date	July 2019			March 2016

Per Share Average Trading Price Of Companys Common Stock On Stock Exchange [Tables Text Block]

For the three and nine months ended September 30, 2014 and 2013, the per share average trading price of the Company’s common stock on the NYSE was higher than the $35.93 exchange price for the 4.25% Exchangeable Notes, as presented below:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Per share average trading price of the Company’s common stock	$62.06	$51.57	$59.27	$52.42

Schedule of Debt Conversions, Fair Value Upon Conversion [Table Text Block]

The 4.25% Exchangeable Notes were exchangeable as of September 30, 2014 and September 30, 2013. If the 4.25% Exchangeable Notes outstanding as of those dates were exchanged, the approximate fair value of the shares upon exchange at September 30, 2014 and 2013, using the per share average trading price presented in the table above, would have been as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands)
Approximate fair value of shares upon exchange	$	229,840	$	245,200	$	223,732	$	248,000
Principal amount of the 4.25% Exchangeable Notes	135,481		172,500		135,481		172,500
Approximate fair value in excess amount of principal amount	$	94,359	$	72,700	$	88,251	$	75,500

Interest expense for the exchangeable notes

The following table summarizes the total interest expense attributable to the 4.25% Exchangeable Notes based on the respective effective interest rates, before the effect of capitalized interest, for the three and nine months September 30, 2014 and 2013:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands)
Contractual interest payments	$	1,439	$	1,833	$	4,908	$	5,498
Amortization of discount	1,004		1,116		3,337		3,291
Interest expense attributable to the 4.25% Exchangeable Notes	$	2,443	$	2,949	$	8,245	$	8,789

Capped call Transactions

The table below summarizes our capped call option positions for the 4.25% Exchangeable Notes as of September 30, 2014 and December 31, 2013.



	4.25% Exchangeable Notes
	September 30, 2014		December 31, 2013
Referenced shares of common stock ⁽¹⁾	3,770,531		4,800,796
Exchange price, including effect of capped calls	$	42.81	$	42.81

________________________


(1)	The referenced shares of common stock decreased during the nine months ended September 30, 2014 as a result of the settled exchanges of the 4.25% Exchangeable Notes totaling $37.0 million.

Unsecured Revolving Credit Facility

The following table summarizes the balance and terms of our unsecured revolving credit facility as of September 30, 2014 and December 31, 2013:



	September 30, 2014			December 31, 2013
	(in thousands)
Outstanding borrowings	$	—		$	45,000
Remaining borrowing capacity	600,000			455,000
Total borrowing capacity ⁽¹⁾	$	600,000		$	500,000
Interest rate ⁽²⁾⁽³⁾	—		%	1.62		%
Facility fee-annual rate ⁽⁴⁾	0.250%			0.300%
Maturity date	July 2019			April 2017

_______________


(1)	We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $300.0 million under an accordion feature under the terms of the unsecured revolving credit facility and term loan facility.


(2)	Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.250% as of September 30, 2014.


(3)	Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of December 31, 2013.


(4)	Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of September 30, 2014, $6.2 million of deferred financing costs remains to be amortized through the amended maturity date of our unsecured revolving credit facility.

Stated debt maturities and scheduled amortization payments, excluding debt discounts

The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of September 30, 2014:



Year	(in thousands)
Remaining 2014	$	138,009
2015	395,104
2016	99,431
2017	71,748
2018	451,728
Thereafter	1,268,013
Total ⁽¹⁾	$	2,424,033

________________________


(1)	Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $4.9 million

Capitalized interest and loan fees

The following table sets forth gross interest expense reported in continuing operations, including debt discount/premium and loan cost amortization, net of capitalized interest, for the three and nine months ended September 30, 2014 and 2013. The interest expense capitalized was recorded as a cost of development and redevelopment, and increased the carrying value of undeveloped land and construction in progress.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in thousands)
Gross interest expense	$	29,936		$	27,942		$	85,740		$	83,322
Capitalized interest and loan fees	(13,328		)	(9,089		)	(35,860		)	(25,301		)
Interest expense	$	16,608		$	18,853		$	49,880		$	58,021

Secured Debt [Member]

Debt Instrument [Line Items]

Balance and significant terms of debt

The following table sets forth the composition of our secured debt as of September 30, 2014 and December 31, 2013:



Type of Debt	Annual Stated Interest Rate ⁽¹⁾	GAAP Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	September 30, 2014 ⁽³⁾		December 31, 2013 ⁽³⁾
				(in thousands)
Mortgage note payable	4.27%	4.27%	February 2018	$	131,363	$	133,117
Mortgage note payable ⁽⁴⁾	4.48%	4.48%	July 2027	97,000		97,000
Mortgage note payable ⁽⁴⁾	6.05%	3.50%	June 2019	90,065		92,502
Mortgage note payable	6.51%	6.51%	February 2017	66,907		67,663
Mortgage note payable ⁽⁴⁾	5.23%	3.50%	January 2016	53,243		54,570
Mortgage note payable ⁽⁴⁾	5.57%	3.25%	February 2016	40,611		41,654
Mortgage note payable⁽⁴⁾	5.09%	3.50%	August 2015	34,446		34,845
Mortgage note payable ⁽⁴⁾	4.94%	4.00%	April 2015	26,629		27,641
Mortgage note payable	7.15%	7.15%	May 2017	7,185		8,972
Other	Various	Various	Various	2,447		2,470
Total				$	549,896	$	560,434

______________


(1)	All interest rates presented are fixed-rate interest rates.


(2)	This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of discounts/premiums, excluding debt issuance costs.


(3)	Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented.


(4)	The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership.

Exchangeable Debt [Member]

Debt Instrument [Line Items]

Balance and significant terms of debt

The table below summarizes the balance and significant terms of the Company’s 4.25% Exchangeable Notes due November 2014 (the “4.25% Exchangeable Notes”) outstanding as of September 30, 2014 and December 31, 2013.



	4.25% Exchangeable Notes
	September 30, 2014			December 31, 2013
	(in thousands)
Principal amount	$	135,481		$	172,500
Unamortized discount	(432		)	(4,128		)
Net carrying amount of liability component	$	135,049		$	168,372
Carrying amount of equity component ⁽¹⁾	$15,578			$19,835
Issuance date	November 2009
Maturity date	November 2014
Stated coupon rate ⁽²⁾	4.25%
Effective interest rate ⁽³⁾	7.13%
Exchange rate per $1,000 principal value of the 4.25% Exchangeable Notes, as adjusted ⁽³⁾	27.8307
Exchange price, as adjusted ⁽⁴⁾	$35.93
Number of shares on which the aggregate consideration to be delivered on conversion is determined ⁽⁴⁾	3,770,531			4,800,796

_______________


(1)	The $15.6 million carrying amount of the equity component at September 30, 2014 represents the proportionate amount of the initial $19.8 million carrying value of the equity component allocated to the remaining $135.5 million outstanding principal balance of the 4.25% Exchangeable Notes at September 30, 2014.


(2)	Interest on the 4.25% Exchangeable Notes is payable semi-annually in arrears on May 15^th and November 15^th of each year.


(3)	The rate at which we record interest expense for financial reporting purposes, which reflects the amortization of the discounts on the 4.25% Exchangeable Notes. This rate represents our conventional debt borrowing rate at the date of issuance.


(4)	The exchange rate, exchange price and the number of shares to be delivered upon conversion are subject to adjustment under certain circumstances including increases in our common dividends.

Senior Notes [Member]

Debt Instrument [Line Items]

Balance and significant terms of debt

The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership as of September 30, 2014 and December 31, 2013:



					Principal Amount as of
	Issuance date	Maturity date	Stated coupon rate	Effective interest rate⁽¹⁾	September 30, 2014			December 31, 2013
					(in thousands)
4.250% Unsecured Senior Notes ⁽²⁾	July 2014	August 2029	4.250%	4.350%	$	400,000		$	—
Unamortized discount					(4,422		)	—
Net carrying amount					$	395,578		$	—

3.800% Unsecured Senior Notes ⁽³⁾	January 2013	January 2023	3.800%	3.804%	$	300,000		$	300,000
Unamortized discount					(82		)	(90		)
Net carrying amount					$	299,918		$	299,910

4.800% Unsecured Senior Notes ⁽⁴⁾	July 2011	July 2018	4.800%	4.827%	$	325,000		$	325,000
Unamortized discount					(283		)	(339		)
Net carrying amount					$	324,717		$	324,661

6.625% Unsecured Senior Notes ⁽⁵⁾	May 2010	June 2020	6.625%	6.743%	$	250,000		$	250,000
Unamortized discount					(1,207		)	(1,367		)
Net carrying amount					$	248,793		$	248,633

5.000% Unsecured Senior Notes ⁽⁶⁾	November 2010	November 2015	5.000%	5.014%	$	325,000		$	325,000
Unamortized discount					(44		)	(73		)
Net carrying amount					$	324,956		$	324,927

________________________


(1)	This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of initial issuance discounts, excluding debt issuance costs.


(2)	Interest on the 4.250% unsecured senior notes is payable semi-annually in arrears on February 15th and August 15th of each year.


(3)	Interest on the 3.800% unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year.


(4)	Interest on the 4.800% unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year.


(5)	Interest on the 6.625% unsecured senior notes is payable semi-annually in arrears on June 1st and December 1st of each year.


(6)	Interest on the 5.000% unsecured senior notes is payable semi-annually in arrears on May 3rd and November 3rd of each year.