Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Discontinued Operations

Piedmont has classified the results of operations related to the following properties as discontinued operations (in thousands):

Building Sold		Location	Date of Sale	Gain/(Loss) on Sale			Net Sales Proceeds
111 Sylvan Avenue	(1)	Englewood Cliffs, New Jersey	December 8, 2010	$	(817	)	$	51,637
Eastpointe Corporate Center		Issaquah, Washington	July 1, 2011	$	12,152		$	31,704
5000 Corporate Court		Holtsville, New York	August 31, 2011	$	14,367		$	36,100
35 West Wacker Drive	(2)	Chicago, Illinois	December 15, 2011	$	96,138		$	223,981
Portland Portfolio	(3)	Beaverton, Oregon	March 19, 2012	$	17,823		$	43,832
26200 Enterprise Way		Lake Forest, California	May 31, 2012	$	10,013		$	24,412
110 & 112 Hidden Lake Circle Buildings		Duncan, South Carolina	September 21, 2012	$	(259	)	$	25,595

⁽¹⁾  Piedmont reclassified the operational results of the property, including a $9.6 million impairment charge that resulted from adjusting the assets to fair value, as discontinued operations in the accompanying 2010 statement of operations. The fair value measurement used in the evaluation of this non-financial asset was considered to be a Level 1 valuation within the fair value hierarchy as defined by GAAP, as there were direct observations and transactions involving the asset (i.e. the asset was sold to a third-party purchaser).

⁽²⁾  Piedmont sold its approximate 96.5% ownership in the property. Transaction data above is presented at Piedmont's ownership percentage.

⁽³⁾  The Portland Portfolio consisted of four office properties known as the Deschutes building, the Rhein building, the Rogue building, and the Willamette building, as well as 18.19 acres of adjoining, undeveloped land.

Income from Discontinued Operations

The details comprising income from discontinued operations are presented below (in thousands):

	Years Ended December 31,
	2012		2011			2010
Revenues:
Rental income	$	2,955	$	37,887		$	47,370
Tenant reimbursements	451		19,363			21,105
Lease termination income	—		304			2,761
	3,406		57,554			71,236
Expenses:
Property operating costs	564		21,576			23,305
Depreciation	848		6,926			9,223
Amortization of deferred leasing costs	148		5,517			7,418
General and administrative expenses	45		(170		)	507
	1,605		33,849			40,453
Other income (expense):
Interest expense	—		(5,932		)	(6,274		)
Interest and other income	—		1			2
Net income attributable to noncontrolling interest	—		(453		)	(516		)
	—		(6,384		)	(6,788		)
Operating income, excluding impairment loss and gain/(loss) on sale of real estate assets	1,801		17,321			23,995
Impairment loss	—		—			(9,587		)
Gain/(loss) on sale of real estate assets	27,577		122,657			(817		)
Income from discontinued operations	$	29,378	$	139,978		$	13,591