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Assets classified as "held for sale"
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Assets classified as held for sale
Assets classified as held for sale

As of June 30, 2016, two operating properties in North America with an aggregate 90,690 RSF and several properties and land parcels located in Asia were classified as held for sale, none of which met the criteria for classification as a discontinued operation in our consolidated financial statements.

Assets located in North America

The following is a summary of net assets held for sale in North America as of June 30, 2016, and December 31, 2015 (in thousands):
 
June 30, 2016
 
December 31, 2015
Total assets
$
15,154

 
$
12,896

Total liabilities
—

 
—

Net assets classified as held for sale – North America
$
15,154

 
$
12,896


The following is a summary of operating information of our real estate investments in North America classified as held for sale as of June 30, 2016, and real estate investments in North America sold subsequent to January 1, 2015 (in thousands):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Total revenues
 
$
648

 
$
1,152

 
$
1,650

 
$
2,152

Operating expenses
 
(200
)
 
(574
)
 
(569
)
 
(1,144
)
Total revenues less operating expenses
 
448

 
578

 
1,081

 
1,008

General and administrative expenses
 
(29
)
 
(14
)
 
(31
)
 
(16
)
Depreciation expense
 
(7
)
 
(443
)
 
(122
)
 
(787
)
Impairment of real estate
 
(863
)
 
—

 
(863
)
 
—

(Loss) income from assets classified as held for sale – North America (1)
 
$
(451
)
 
$
121

 
$
65

 
$
205


(1)
Includes the results of operations of two properties with an aggregate 90,690 RSF that were classified as held for sale as of June 30, 2016, and properties sold subsequent to January 1, 2015, including two properties with an aggregate 153,874 RSF and one land parcel. These properties did not qualify for classification as discontinued operations. For additional information, refer to Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to these unaudited consolidated financial statements.

Assets located in Asia

On March 31, 2016, we evaluated two separate potential transactions to sell land parcels in our India submarket aggregating 28 acres. We determined that these land parcels met the criteria for classification as held for sale as of March 31, 2016, including among others, the following: (i) management having the authority committed to sell the real estate, and (ii) the sale was probable within one year. Upon classification as held for sale, we recognized an impairment charge of $29.0 million to lower the carrying amount of the real estate to its estimated fair value less cost to sell of approximately $10.2 million. In determining the carrying amount for evaluating the real estate for impairment, we considered our net book value, cost to sell, and a $10.6 million cumulative foreign currency translation loss. During the three months ended June 30, 2016, we sold one of these land parcels totaling five acres for an aggregate sales price of $7.5 million at no gain or loss.

On April 22, 2016, we decided to monetize our remaining real estate investments located in Asia in order to invest capital into our highly leased value-creation pipeline. We determined that these investments met the criteria for classification as held for sale when we achieved the following, among other criteria: (i) committed to sell all of our real estate investments in Asia, (ii) obtained approval from our Board of Directors, and (iii) determined that the sale of each property/land parcel was probable within one year. During the three months ended June 30, 2016, upon classification as held for sale, we recognized an impairment charge of $154.1 million related to our remaining real estate investments located in Asia, to lower the carrying costs of the real estate to its estimated fair value less cost to sell. In determining the carrying amount for evaluating the real estate for impairment, we considered our net book value, cost to sell, and a $40.2 million cumulative foreign currency translation loss.
The fair value considered in our impairment of each investment was determined based on the following: (i) preliminary non-binding letters of intent, (ii) significant other observable inputs, including the consideration of certain local government land acquisition programs, and (iii) discounted cash flow analyses.

We evaluated whether our real estate investments in Asia met the criteria for classification as discontinued operations, including, among others, (i) if the properties meet the held for sale criteria, and (ii) if the sale of these assets represents a strategic shift that has or will have a major effect on our operations and financial results. In our assessment, we considered, among other factors, that our total revenue from properties located in Asia was approximately 1.5% of our total consolidated revenues. At the time of evaluation, we also noted total assets related to our investment in Asia were approximately 2.5% of our total assets. Consequently, we concluded that the monetization of our real estate investments in Asia did not represent a strategic shift that will have a major effect in our operations and financial results and, therefore, did not meet the criteria for classification as discontinued operations.

As of June 30, 2016, we had eight operating properties aggregating 1.2 million RSF and land parcels aggregating 191 acres remaining in Asia. As of June 30, 2016, all our investments in Asia continued to meet the classification of held for sale. We expect to complete the transactions over the next several quarters and to recover our remaining net book value, after disposition costs, from sales of all real estate assets in Asia classified as held for sale as of June 30, 2016.

The following is a summary of net assets of our real estate investments in Asia that were classified as held for sale as of June 30, 2016 (in thousands):


June 30, 2016
 
December 31, 2015
Total assets
$
72,575

 
$
229,561

Total liabilities
(19,712
)
 
(11,416
)
Total accumulated other comprehensive loss
44,662

(1) 
44,598

Net assets located in Asia as of June 30, 2016
$
97,525

 
$
262,743


(1)
Represents cumulative foreign currency translation losses related to our real estate investments located in Asia.

The following is a summary of operating information of our real estate investments in Asia, including, (i) eight operating properties aggregating 1.2 million RSF and land parcels aggregating 191 acres that were classified as held for sale as of June 30, 2016, and (ii) a land parcel and a development project in India that were sold subsequent to January 1, 2015 (in thousands):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Total revenues
 
$
3,297

 
$
1,732

 
$
6,516

 
$
3,384

Rental operations
 
(2,417
)
 
(1,861
)
 
(4,724
)
 
(3,184
)
 
 
880

 
(129
)
 
1,792

 
200

General and administrative
 
(757
)
 
(1,023
)
 
(1,722
)
 
(2,828
)
 
 
123

 
(1,152
)
 
70

 
(2,628
)
Depreciation expense
 
(761
)
 
(2,022
)
 
(3,009
)
 
(4,148
)
Impairment of real estate
 
(154,117
)
 
—

 
(183,097
)
 
(14,510
)
Net loss related to real estate located in Asia
 
$
(154,755
)
 
$
(3,174
)
 
$
(186,036
)
 
$
(21,286
)