Guarantor and Non-Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2013

Guarantor and Non-Guarantor Financial Information [Abstract]

Condensed Consolidated Balance Sheets

Condensed Consolidated Balance Sheets
As of September 30, 2013
(in thousands)	Issuer		Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	88,054	$	—		$	587,227		$	—		$	675,281
Buildings and improvements, less accumulated depreciation	492,098		—			2,558,107			(300		)	3,049,905
Intangible lease assets, less accumulated amortization	2,547		—			64,323			—			66,870
Construction in progress	2,546		—			58,616			—			61,162
Real estate assets held for sale, net	19,734		—			—			—			19,734
Total real estate assets	604,979		—			3,268,273			(300		)	3,872,952
Investments in and amounts due from unconsolidated joint ventures	18,668		—			—			—			18,668
Cash and cash equivalents	12,096		146			3,730			—			15,972
Tenant and straight-line rent receivables, net	35,914		—			130,579			—			166,493
Advances to affiliates	5,110,420		1,293,461			(1,086,177		)	(5,317,704		)	—
Investment in subsidiary	—		4,035,964			199			(4,036,163		)	—
Notes receivable	160,000		2,000			23,890			(185,890		)	—
Prepaid expenses, restricted cash, escrows, and other assets	5,671		47			13,218			(941		)	17,995
Goodwill	180,097		—			—			—			180,097
Interest rate swaps	19,192		—			—			—			19,192
Deferred financing costs, net	6,703		—			1,287			—			7,990
Deferred lease costs, net	36,293		—			238,941			—			275,234
Other assets held for sale, net	1,960		—			—			—			1,960
Total assets	$	6,191,993	$	5,331,618		$	2,593,940		$	(9,540,998	)	$	4,576,553
Liabilities:
Secured and unsecured debt	$	859,540	$	—		$	1,149,525		$	(185,890	)	$	1,823,175
Accounts payable, accrued expenses, and accrued capital expenditures	20,937		1,360			138,319			(941		)	159,675
Advances from affiliates	306,636		4,807,113			244,499			(5,358,248		)	—
Deferred income	8,533		—			18,042			—			26,575
Intangible lease liabilities, net	6		—			41,429			—			41,435
Interest rate swaps	5,010		—			—			—			5,010
Total liabilities	1,200,662		4,808,473			1,591,814			(5,545,079		)	2,055,870
Stockholders’ Equity:
Common stock	—		1,613			—			—			1,613
Additional paid-in capital	4,035,964		3,668,424			199			(4,036,163		)	3,668,424
Retained/(cumulative distributions in excess of) earnings	940,540		(3,146,892		)	1,000,314			40,244			(1,165,794		)
Other comprehensive loss	14,827		—			—			—			14,827
Piedmont stockholders’ equity	4,991,331		523,145			1,000,513			(3,995,919		)	2,519,070
Noncontrolling interest	—		—			1,613			—			1,613
Total stockholders’ equity	4,991,331		523,145			1,002,126			(3,995,919		)	2,520,683
Total liabilities and stockholders’ equity	$	6,191,993	$	5,331,618		$	2,593,940		$	(9,540,998	)	$	4,576,553

Condensed Consolidated Balance Sheets
As of December 31, 2012
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	91,782		$	—		$	535,569		$	—		$	627,351
Buildings and improvements, less accumulated depreciation	511,793			—			2,379,530			—			2,891,323
Intangible lease assets, less accumulated amortization	3,265			—			51,479			—			54,744
Construction in progress	1,056			—			19,317			—			20,373
Real estate assets held for sale, net	18,941			—			—			—			18,941
Total real estate assets	626,837			—			2,985,895			—			3,612,732
Investments in and amounts due from unconsolidated joint ventures	37,689			—			—			—			37,689
Cash and cash equivalents	62,371			238			(49,652		)	—			12,957
Tenant receivables, net	33,495			—			113,049			—			146,544
Advances to affiliates	4,623,173			1,300,158			(908,506		)	(5,014,825		)	—
Investment in subsidiary	—			4,068,844			200			(4,069,044		)	—
Notes receivable	160,000			2,500			23,890			(186,390		)	—
Prepaid expenses, restricted cash, escrows, and other assets	4,218			15			10,071			(948		)	13,356
Goodwill	180,097			—			—			—			180,097
Interest rate swaps	1,075			—			—			—			1,075
Deferred financing costs, net	4,292			—			2,162			—			6,454
Deferred lease costs, net	31,357			—			211,821			—			243,178
Other assets held for sale, net	793			—			—			—			793
Total assets	$	5,765,397		$	5,371,755		$	2,388,930		$	(9,271,207	)	$	4,254,875
Liabilities:
Secured and unsecured debt	$	452,890		$	—		$	1,150,025		$	(186,390	)	$	1,416,525
Accounts payable, accrued expenses, and accrued capital expenditures	20,443			645			107,123			(948		)	127,263
Advances from affiliates	274,159			4,636,936			135,940			(5,047,035		)	—
Deferred income	5,991			—			15,561			—			21,552
Intangible lease liabilities, net	24			—			40,781						40,805
Interest rate swaps	8,235			—			—			—			8,235
Total liabilities	761,742			4,637,581			1,449,430			(5,234,373		)	1,614,380
Stockholders’ Equity:
Common stock	—			1,676			—			—			1,676
Additional paid-in capital	4,068,844			3,667,051			200			(4,069,044		)	3,667,051
Retained/(cumulative distributions in excess of) earnings	941,971			(2,934,553		)	937,691			32,210			(1,022,681		)
Other comprehensive loss	(7,160		)	—			—			—			(7,160		)
Piedmont stockholders’ equity	5,003,655			734,174			937,891			(4,036,834		)	2,638,886
Noncontrolling interest	—			—			1,609			—			1,609
Total stockholders’ equity	5,003,655			734,174			939,500			(4,036,834		)	2,640,495
Total liabilities and stockholders’ equity	$	5,765,397		$	5,371,755		$	2,388,930		$	(9,271,207	)	$	4,254,875

Condensed Consolidated Statements of Income

Condensed Consolidated Statements of Income
For the three months ended September 30, 2013
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	20,700		$	—		$	97,492		$	(1,382	)	$	116,810
Tenant reimbursements	4,035			—			23,452			(69		)	27,418
Property management fee revenue	—			—			4,003			(3,113		)	890
	24,735			—			124,947			(4,564		)	145,118
Expenses:
Property operating costs	10,939			—			52,597			(4,769		)	58,767
Depreciation	6,068			—			24,717			—			30,785
Amortization	1,353			—			12,525			—			13,878
General and administrative	5,624			64			6,469			(6,316		)	5,841
	23,984			64			96,308			(11,085		)	109,271
Real estate operating income/(loss)	751			(64		)	28,639			6,521			35,847
Other income (expense):
Interest expense	(6,444		)	—			(16,028		)	3,141			(19,331		)
Interest and other income/(expense)	2,262			42			226			(3,141		)	(611		)
Net casualty (loss)/recoveries	(85		)	—			4,004			—			3,919
Equity in income of unconsolidated joint ventures	46			—			—			—			46
Loss on consolidation	(898		)	—			—			—			(898		)
	(5,119		)	42			(11,798		)	—			(16,875		)
Income/(loss) from continuing operations	(4,368		)	(22		)	16,841			6,521			18,972
Discontinued operations:
Operating income/(loss)	131			—			(3		)	—			128
Income/(loss) from discontinued operations	131			—			(3		)	—			128
Net income/(loss)	(4,237		)	(22		)	16,838			6,521			19,100
Less: Net income attributable to noncontrolling interest	—			—			(4		)	—			(4		)
Net income/(loss) attributable to Piedmont	$	(4,237	)	$	(22	)	$	16,834		$	6,521		$	19,096

Condensed Consolidated Statements of Income
For the three months ended September 30, 2012
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	18,889		$	—		$	87,448		$	(1,389	)	$	104,948
Tenant reimbursements	4,655			—			22,547			(70		)	27,132
Property management fee revenue	—			—			3,634			(3,114		)	520
	23,544			—			113,629			(4,573		)	132,600
Expenses:
Property operating costs	11,279			—			44,006			(4,802		)	50,483
Depreciation	6,200			—			21,721			—			27,921
Amortization	1,378			—			13,787			—			15,165
General and administrative	4,895			84			6,503			(5,974		)	5,508
	23,752			84			86,017			(10,776		)	99,077
Real estate operating income/(loss)	(208		)	(84		)	27,612			6,203			33,523
Other income (expense):
Interest expense	(3,360		)	—			(16,041		)	3,154			(16,247		)
Interest and other income/(expense)	3,245			—			292			(3,154		)	383
Litigation settlement expense	(7,500		)	—			—			—			(7,500		)
Equity in income of unconsolidated joint ventures	323			—			—			—			323
	(7,292		)	—			(15,749		)	—			(23,041		)
Income/(loss) from continuing operations	(7,500		)	(84		)	11,863			6,203			10,482
Discontinued operations:
Operating income	509			—			98			—			607
Loss on sale of real estate assets	(254		)	—			—			—			(254		)
Income from discontinued operations	255			—			98			—			353
Net income/(loss)	(7,245		)	(84		)	11,961			6,203			10,835
Less: Net income attributable to noncontrolling interest	—			—			(4		)	—			(4		)
Net income/(loss) attributable to Piedmont	$	(7,245	)	$	(84	)	$	11,957		$	6,203		$	10,831

Condensed Consolidated Statements of Income
For the nine months ended September 30, 2013
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	57,754		$	—		$	279,931		$	(3,830	)	$	333,855
Tenant reimbursements	12,018			—			65,357			(207		)	77,168
Property management fee revenue	—			—			11,392			(9,358		)	2,034
	69,772			—			356,680			(13,395		)	413,057
Expenses:
Property operating costs	31,107			—			147,014			(13,701		)	164,420
Depreciation	18,074			—			72,614			—			90,688
Amortization	3,926			—			30,318			—			34,244
General and administrative	16,024			249			18,896			(18,491		)	16,678
	69,131			249			268,842			(32,192		)	306,030
Real estate operating income/(loss)	641			(249		)	87,838			18,797			107,027
Other income (expense):
Interest expense	(15,478		)	—			(47,879		)	9,425			(53,932		)
Interest and other income/(expense)	7,834			128			(497		)	(9,425		)	(1,960		)
Litigation settlement recovery	1,250			—			—			—			1,250
Net casualty (loss)/recoveries	(239		)	—			6,300			—			6,061
Equity in income of unconsolidated joint ventures	604			—			—			—			604
Loss on consolidation	(898		)	—			—			—			(898		)
	(6,927		)	128			(42,076		)	—			(48,875		)
Income/(loss) from continuing operations	(6,286		)	(121		)	45,762			18,797			58,152
Discontinued operations:
Operating income, excluding impairment loss	503			—			606						1,109
Impairment loss	(6,402		)	—			—			—			(6,402		)
Gain/(loss) on sale of real estate assets	(9		)	—			16,267			—			16,258
Income/(loss) from discontinued operations	(5,908		)	—			16,873			—			10,965
Net income/(loss)	(12,194		)	(121		)	62,635			18,797			69,117
Less: Net income attributable to noncontrolling interest	—			—			(12		)	—			(12		)
Net income/(loss) attributable to Piedmont	$	(12,194	)	$	(121	)	$	62,623		$	18,797		$	69,105

Condensed Consolidated Statements of Income
For the nine months ended September 30, 2012
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	55,272		$	—		$	260,287		$	(3,552	)	$	312,007
Tenant reimbursements	12,774			—			67,727			(211		)	80,290
Property management fee revenue	—			—			10,705			(8,985		)	1,720
	68,046			—			338,719			(12,748		)	394,017
Expenses:
Property operating costs	31,416			—			136,444			(13,292		)	154,568
Depreciation	17,439			—			64,282			—			81,721
Amortization	3,981			—			35,114			—			39,095
General and administrative	14,930			224			18,057			(17,582		)	15,629
	67,766			224			253,897			(30,874		)	291,013
Real estate operating income/(loss)	280			(224		)	84,822			18,126			103,004
Other income (expense):
Interest expense	(9,120		)	—			(48,965		)	9,358			(48,727		)
Interest and other income/(expense)	9,268			—			855			(9,358		)	765
Litigation settlement expense	(7,500		)	—			—			—			(7,500		)
Equity in income of unconsolidated joint ventures	739			—			—			—			739
	(6,613		)	—			(48,110		)	—			(54,723		)
Income/(loss) from continuing operations	(6,333		)	(224		)	36,712			18,126			48,281
Discontinued operations:
Operating income	2,795			—			119			—			2,914
Gain on sale of real estate assets	27,582			—			1			—			27,583
Income from discontinued operations	30,377			—			120			—			30,497
Net income/(loss)	24,044			(224		)	36,832			18,126			78,778
Less: Net income attributable to noncontrolling interest	—			—			(12		)	—			(12		)
Net income/(loss) attributable to Piedmont	$	24,044		$	(224	)	$	36,820		$	18,126		$	78,766

Condensed Consolidated Statements of Cash Flows

Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2013
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	18,325		$	1,363		$	129,863		$	18,797		$	168,348
Cash Flows from Investing Activities:
Investment in real estate assets and real estate related intangibles, net of accruals	(5,858		)	—			(357,055		)	300			(362,613		)
Intercompany note receivable	—			500			—			(500		)	—
Assets assumed upon acquisition of joint ventures	18,045			—			(32,287		)	—			(14,242		)
Net sales proceeds from wholly-owned properties	3,752			—			45,574			—			49,326
Investments in unconsolidated joint ventures	(793		)	—			—			—			(793		)
Deferred lease costs paid	(10,015		)	—			(18,334		)	—			(28,349		)
Net cash (used in)/provided by investing activities	5,131			500			(362,102		)	(200		)	(356,671		)
Cash Flows from Financing Activities:
Deferred financing costs paid	(3,447		)	—			—			—			(3,447		)
Proceeds from debt	832,603			—			—			—			832,603
Repayments of debt	(426,000		)	—			—			—			(426,000		)
Intercompany note payable	—			—			(500		)	500			—
Costs of issuance of common stock	—			(91		)	—			—			(91		)
Repurchases of common stock as part of announced plan	—			(111,625		)	—			—			(111,625		)
Distributions to/repayments from affiliates	(476,887		)	209,855			286,129			(19,097		)	—
Dividends paid and discount on dividend reinvestments	—			(100,094		)	(8		)	—			(100,102		)
Net cash provided by/(used in) financing activities	(73,731		)	(1,955		)	285,621			(18,597		)	191,338
Net increase/(decrease) in cash and cash equivalents	(50,275		)	(92		)	53,382			—			3,015
Cash and cash equivalents, beginning of period	62,371			238			(49,652		)	—			12,957
Cash and cash equivalents, end of period	$	12,096		$	146		$	3,730		$	—		$	15,972

Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2012
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	748		$	1,527		$	122,202		$	18,126		$	142,603
Cash Flows from Investing Activities:
Investment in real estate assets and real estate related intangibles, net of accruals	(16,558		)	—			(57,878		)	—			(74,436		)
Intercompany note receivable	(3,100		)	—			—			3,100			—
Net sales proceeds from wholly-owned properties	74,845			—			—			—			74,845
Deferred lease costs paid	(2,837		)	—			(36,482		)	—			(39,319		)
Net cash provided by/(used in) investing activities	52,350			—			(94,360		)	3,100			(38,910		)
Cash Flows from Financing Activities:
Deferred financing costs paid	(2,991		)	—			—			—			(2,991		)
Proceeds from debt	365,000			—			—			—			365,000
Repayments of debt	(216,500		)	—			(185,000		)	—			(401,500		)
Intercompany note payable	—			—			3,100			(3,100		)	—
Costs of issuance of common stock	—			(229		)	—			—			(229		)
Repurchases of common stock as part of announced plan	—			(80,130		)	—			—			(80,130		)
Distributions to/repayments from affiliates	(305,743		)	181,605			142,264			(18,126		)	—
Dividends paid and discount on dividend reinvestments	—			(102,762		)	(8		)	—			(102,770		)
Net cash used in financing activities	(160,234		)	(1,516		)	(39,644		)	(21,226		)	(222,620		)
Net (decrease)/increase in cash and cash equivalents	(107,136		)	11			(11,802		)	—			(118,927		)
Cash and cash equivalents, beginning of period	166,920			139			(27,369		)	—			139,690
Cash and cash equivalents, end of period	$	59,784		$	150		$	(39,171	)	$	—		$	20,763