Segment Information

3 Months Ended

Mar. 31, 2012

Segment Information [Abstract]

Segment Information

12. Segment Information

The Company's segments are based on the Company's method of internal reporting which classifies its operations by both geographic area and property type. The Company's segments by geographic area are Boston, New York, Princeton, San Francisco and Washington, DC. Segments by property type include: Class A Office, Office/Technical, Residential and Hotel.

Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Interest and other income, development and management services, general and administrative expenses, transaction costs, interest expense, depreciation and amortization expense, gains from investments in securities, gains from early extinguishments of debt, income from unconsolidated joint ventures, discontinued operations and noncontrolling interests are not included in Net Operating Income as internal reporting addresses these items on a corporate level.

Net Operating Income is not a measure of operating results or cash flows from operating activities as measured by accounting principles generally accepted in the United States of America, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate Net Operating Income in the same manner. The Company considers Net Operating Income to be an appropriate supplemental measure to net income because it helps both investors and management to understand the core operations of the Company's properties.

Information by geographic area and property type (dollars in thousands)

For the three months ended March 31, 2012:

	Boston			New York			Princeton			San Francisco			Washington, DC			Total
Rental Revenue:
Class A Office	$	140,871		$	117,589		$	14,850		$	52,197		$	90,398		$	415,905
Office/Technical		8,167			—			—			52			4,092			12,311
Residential		883			—			—			—			3,598			4,481
Hotel		6,816			—			—			—			—			6,816
Total		156,737			117,589			14,850			52,249			98,088			439,513
% of Grand Totals		35.66	%		26.75	%		3.38	%		11.89	%		22.32	%		100.0	%
Rental Expenses:
Class A Office		57,890			38,429			7,358			20,091			27,442			151,210
Office/Technical		2,510			—			—			24			1,047			3,581
Residential		390			—			—			—			2,325			2,715
Hotel		6,099			—			—			—			—			6,099
Total		66,889			38,429			7,358			20,115			30,814			163,605
% of Grand Totals		40.89	%		23.49	%		4.50	%		12.29	%		18.83	%		100.0	%
Net operating income	$	89,848		$	79,160		$	7,492		$	32,134		$	67,274		$	275,908
% of Grand Totals		32.56	%		28.69	%		2.72	%		11.65	%		24.38	%		100.0	%

For the three months ended March 31, 2011:

	Boston			New York			Princeton			San Francisco			Washington, DC			Total
Rental Revenue:
Class A Office	$	127,429		$	113,007		$	16,279		$	52,893		$	82,680		$	392,288
Office/Technical		7,558			—			—			—			3,992			11,550
Residential		—			—			—			—			—			—
Hotel		5,948			—			—			—			—			5,948
Total		140,935			113,007			16,279			52,893			86,672			409,786
% of Grand Totals		34.39	%		27.58	%		3.97	%		12.91	%		21.15	%		100.0	%
Rental Expenses:
Class A Office		47,901			37,715			7,915			19,333			23,165			136,029
Office/Technical		2,479			—			—			—			1,122			3,601
Residential		—			—			—			—			—			—
Hotel		5,739			—			—			—			—			5,739
Total		56,119			37,715			7,915			19,333			24,287			145,369
% of Grand Totals		38.61	%		25.94	%		5.44	%		13.30	%		16.71	%		100.0	%
Net operating income	$	84,816		$	75,292		$	8,364		$	33,560		$	62,385		$	264,417
% of Grand Totals		32.08	%		28.48	%		3.16	%		12.69	%		23.59	%		100.0	%

The following is a reconciliation of Net Operating Income to net income attributable to Boston Properties, Inc.:

	Three months ended March 31,
	2012		2011
Net Operating Income	$	275,908	$	264,417
Add:
Development and management services income		8,149		7,428
Income from unconsolidated joint ventures		11,721		7,976
Interest and other income		1,646		974
Gains from investments in securities		801		373
Gains from early extinguishments of debt		767		—
Gain on forgiveness of debt from discontinued operations		17,807		—
Less:
General and administrative expense		27,619		24,643
Transaction costs		2,104		72
Depreciation and amortization expense		109,673		109,237
Interest expense		103,237		98,525
Loss from discontinued operations		156		497
Noncontrolling interest in property partnerships		546		529
Noncontrolling interest—redeemable preferred units of the Operating Partnership		801		823
Noncontrolling interest—common units of the Operating Partnership		6,089		6,090
Noncontrolling interest in discontinued operations—common units of the Operating Partnership		1,942		(61	)
Net income attributable to Boston Properties, Inc.	$	64,632	$	40,813