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Segment Information
3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
Segment Information
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, impairment loss, 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, 2013:
 
Boston
 
New York
 
Princeton
 
San
Francisco
 
Washington,
DC
 
Total
Rental Revenue:
 
 
 
 
 
 
 
 
 
 
 
Class A Office
$
161,503

 
$
122,096

 
$
16,427

 
$
52,671

 
$
97,865

 
$
450,562

Office/Technical
5,653

 

 

 
151

 
4,043

 
9,847

Residential
1,067

 

 

 

 
4,511

 
5,578

Hotel
8,291

 

 

 

 

 
8,291

Total
176,514

 
122,096

 
16,427

 
52,822

 
106,419

 
474,278

% of Grand Totals
37.22
%
 
25.74
%
 
3.46
%
 
11.14
%
 
22.44
%
 
100.0
%
Rental Expenses:
 
 
 
 
 
 
 
 
 
 
 
Class A Office
65,732

 
41,887

 
7,647

 
19,872

 
31,923

 
167,061

Office/Technical
1,787

 

 

 
35

 
1,004

 
2,826

Residential
443

 

 

 

 
2,290

 
2,733

Hotel
7,044

 

 

 

 

 
7,044

Total
75,006

 
41,887

 
7,647

 
19,907

 
35,217

 
179,664

% of Grand Totals
41.75
%
 
23.31
%
 
4.26
%
 
11.08
%
 
19.60
%
 
100.0
%
Net operating income
$
101,508

 
$
80,209

 
$
8,780

 
$
32,915

 
$
71,202

 
$
294,614

% of Grand Totals
34.45
%
 
27.23
%
 
2.98
%
 
11.17
%
 
24.17
%
 
100.0
%
 
For the three months ended March 31, 2012:
 
Boston
 
New York
 
Princeton
 
San
Francisco
 
Washington,
DC
 
Total
Rental Revenue:
 
 
 
 
 
 
 
 
 
 
 
Class A Office
$
140,217

 
$
117,589

 
$
14,850

 
$
50,664

 
$
90,398

 
$
413,718

Office/Technical
6,389

 

 

 
52

 
4,092

 
10,533

Residential
883

 

 

 

 
3,598

 
4,481

Hotel
6,816

 

 

 

 

 
6,816

Total
154,305

 
117,589

 
14,850

 
50,716

 
98,088

 
435,548

% of Grand Totals
35.43
%
 
27.00
%
 
3.41
%
 
11.64
%
 
22.52
%
 
100.0
%
Rental Expenses:
 
 
 
 
 
 
 
 
 
 
 
Class A Office
57,636

 
38,429

 
7,358

 
19,486

 
27,442

 
150,351

Office/Technical
1,705

 

 

 
24

 
1,047

 
2,776

Residential
390

 

 

 

 
2,325

 
2,715

Hotel
6,099

 

 

 

 

 
6,099

Total
65,830

 
38,429

 
7,358

 
19,510

 
30,814

 
161,941

% of Grand Totals
40.65
%
 
23.73
%
 
4.54
%
 
12.05
%
 
19.03
%
 
100.0
%
Net operating income
$
88,475

 
$
79,160

 
$
7,492

 
$
31,206

 
$
67,274

 
$
273,607

% of Grand Totals
32.34
%
 
28.93
%
 
2.74
%
 
11.40
%
 
24.59
%
 
100.0
%
The following is a reconciliation of Net Operating Income to net income attributable to Boston Properties, Inc.:
 
 
Three months ended
March 31,
 
2013
 
2012
Net Operating Income
$
294,614

 
$
273,607

Add:
 
 
 
Development and management services income
8,736

 
8,145

Income from unconsolidated joint ventures
8,721

 
11,721

Interest and other income
1,471

 
1,646

Gains from investments in securities
735

 
801

Gains from early extinguishments of debt

 
767

Income from discontinued operations
61

 
570

       Gain on forgiveness of debt from discontinued operations
20,182

 

Less:
 
 
 
General and administrative expense
43,571

 
27,619

Transaction costs
443

 
2,104

Depreciation and amortization expense
120,595

 
108,462

Interest expense
100,433

 
103,237

Impairment loss
8,306

 

Impairment loss from discontinued operations
3,241

 

Noncontrolling interest in property partnerships
2,574

 
546

Noncontrolling interest—redeemable preferred units of the Operating Partnership
1,180

 
801

Noncontrolling interest—common units of the Operating Partnership
4,358

 
5,973

Noncontrolling interest in discontinued operations—common units of the Operating Partnership
1,819

 
61

Net income attributable to Boston Properties, Inc.
$
48,000

 
$
48,454