Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2014

Guarantor and Non-Guarantor Financial Information [Abstract]

Condensed Consolidated Balance Sheets

Condensed Consolidated Balance Sheets
As of June 30, 2014
(in thousands)	Issuer		Guarantor			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	82,922	$	—		$	607,637	$	—		$	690,559
Buildings and improvements, less accumulated depreciation	452,262		—			2,719,993		(300		)	3,171,955
Intangible lease assets, less accumulated amortization	2,084		—			68,963		—			71,047
Construction in progress	10,560		—			24,208		—			34,768
Total real estate assets	547,828		—			3,420,801		(300		)	3,968,329
Investments in and amounts due from unconsolidated joint ventures	7,549		—			—		—			7,549
Cash and cash equivalents	5,099		150			3,314		—			8,563
Tenant and straight-line rent receivables, net	34,072		—			146,962		—			181,034
Advances to affiliates	5,961,447		1,282,506			—		(7,243,953		)	—
Investment in subsidiary	—		3,942,084			195		(3,942,279		)	—
Notes receivable	160,100		2,000			23,889		(185,989		)	—
Prepaid expenses, restricted cash, escrows, and other assets	14,934		186			18,970		(1,047		)	33,043
Goodwill	180,097		—			—		—			180,097
Deferred financing costs, net	7,847		—			539		—			8,386
Deferred lease costs, net	32,372		—			242,453		—			274,825
Total assets	$	6,951,345	$	5,226,926		$	3,857,123	$	(11,373,568	)	$	4,661,826
Liabilities:
Debt	$	1,681,298	$	—		$	611,777	$	(185,990	)	$	2,107,085
Accounts payable, accrued expenses, and accrued capital expenditures	17,485		339			109,496		(1,047		)	126,273
Advances from affiliates	347,240		4,911,155			2,035,347		(7,293,742		)	—
Deferred income	6,214		—			15,709		—			21,923
Intangible lease liabilities, net	—		—			43,389		—			43,389
Interest rate swaps	5,971		—			—		—			5,971
Total liabilities	2,058,208		4,911,494			2,815,718		(7,480,779		)	2,304,641
Stockholders’ Equity:
Common stock	—		1,543			—		—			1,543
Additional paid-in capital	3,942,083		3,668,836			195		(3,942,278		)	3,668,836
Retained/(cumulative distributions in excess of) earnings	941,950		(3,354,947		)	1,039,601		49,489			(1,323,907		)
Other comprehensive loss	9,104		—			—		—			9,104
Piedmont stockholders’ equity	4,893,137		315,432			1,039,796		(3,892,789		)	2,355,576
Noncontrolling interest	—		—			1,609		—			1,609
Total stockholders’ equity	4,893,137		315,432			1,041,405		(3,892,789		)	2,357,185
Total liabilities and stockholders’ equity	$	6,951,345	$	5,226,926		$	3,857,123	$	(11,373,568	)	$	4,661,826

Condensed Consolidated Balance Sheets
As of December 31, 2013
(in thousands)	Issuer		Guarantor			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	88,054	$	—		$	600,707	$	—		$	688,761
Buildings and improvements, less accumulated depreciation	477,712		—			2,687,163		(300		)	3,164,575
Intangible lease assets, less accumulated amortization	2,356		—			72,021		—			74,377
Construction in progress	4,627		—			19,643		—			24,270
Total real estate assets	572,749		—			3,379,534		(300		)	3,951,983
Investments in and amounts due from unconsolidated joint ventures	14,388		—			—		—			14,388
Cash and cash equivalents	3,352		150			3,471		—			6,973
Tenant receivables, net	36,142		—			134,409		—			170,551
Advances to affiliates	5,312,384		1,288,547			—		(6,600,931		)	—
Investment in subsidiary	—		4,003,806			197		(4,004,003		)	—
Notes receivable	160,000		2,000			23,890		(185,890		)	—
Prepaid expenses, restricted cash, escrows, and other assets	5,319		44			20,779		(977		)	25,165
Goodwill	180,097		—			—		—			180,097
Interest rate swaps	24,176		—			—		—			24,176
Deferred financing costs, net	7,764		—			995		—			8,759
Deferred lease costs, net	34,413		—			249,583		—			283,996
Total assets	$	6,350,784	$	5,294,547		$	3,812,858	$	(10,792,101	)	$	4,666,088
Liabilities:
Debt	$	1,038,570	$	—		$	1,149,525	$	(185,890	)	$	2,002,205
Accounts payable, accrued expenses, and accrued capital expenditures	13,824		2,376			113,595		(977		)	128,818
Advances from affiliates	312,881		4,863,672			1,467,334		(6,643,887		)	—
Deferred income	5,086		—			17,181		—			22,267
Intangible lease liabilities, net	—		—			47,113					47,113
Interest rate swaps	4,526		—			—		—			4,526
Total liabilities	1,374,887		4,866,048			2,794,748		(6,830,754		)	2,204,929
Stockholders’ Equity:
Common stock	—		1,575			—		—			1,575
Additional paid-in capital	4,003,806		3,668,906			197		(4,004,003		)	3,668,906
Retained/(cumulative distributions in excess of) earnings	951,813		(3,241,982		)	1,016,304		42,656			(1,231,209		)
Other comprehensive loss	20,278		—			—		—			20,278
Piedmont stockholders’ equity	4,975,897		428,499			1,016,501		(3,961,347		)	2,459,550
Noncontrolling interest	—		—			1,609		—			1,609
Total stockholders’ equity	4,975,897		428,499			1,018,110		(3,961,347		)	2,461,159
Total liabilities and stockholders’ equity	$	6,350,784	$	5,294,547		$	3,812,858	$	(10,792,101	)	$	4,666,088

Condensed Consolidated Statements of Income

Condensed Consolidated Statements of Income
For the three months ended June 30, 2014
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	17,109		$	—		$	97,694		$	(1,516	)	$	113,287
Tenant reimbursements	3,917			—			20,921			(93		)	24,745
Property management fee revenue	—			—			3,939			(3,391		)	548
	21,026			—			122,554			(5,000		)	138,580
Expenses:
Property operating costs	10,330			—			52,008			(5,202		)	57,136
Depreciation	5,650			—			28,494			—			34,144
Amortization	1,105			—			12,494			—			13,599
General and administrative	6,949			66			7,851			(7,721		)	7,145
	24,034			66			100,847			(12,923		)	112,024
Real estate operating income/(loss)	(3,008		)	(66		)	21,707			7,923			26,556
Other income (expense):
Interest expense	(12,482		)	—			(8,664		)	3,134			(18,012		)
Other income/(expense)	2,797			35			(64		)	(3,134		)	(366		)
Net recoveries from casualty events and litigation settlements	1			1,479			—			—			1,480
Equity in loss of unconsolidated joint ventures	(333		)	—			—			—			(333		)
	(10,017		)	1,514			(8,728		)	—			(17,231		)
Income/(loss) from continuing operations	(13,025		)	1,448			12,979			7,923			9,325
Discontinued operations:
Operating income/(loss)	461			—			53			—			514
Gain on sale of real estate assets, net	557			—			747			—			1,304
Income from discontinued operations	1,018			—			800			—			1,818
Gain on sale of real estate assets	—			—			1,140			—			1,140
Net income/(loss)	(12,007		)	1,448			14,919			7,923			12,283
Less: Net income attributable to noncontrolling interest	—			—			(4		)	—			(4		)
Net income/(loss) attributable to Piedmont	$	(12,007	)	$	1,448		$	14,915		$	7,923		$	12,279

Condensed Consolidated Statements of Income
For the three months ended June 30, 2013
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	17,057		$	—		$	92,125		$	(1,231	)	$	107,951
Tenant reimbursements	3,951			—			20,219			(69		)	24,101
Property management fee revenue	—			—			3,931			(3,418		)	513
	21,008			—			116,275			(4,718		)	132,565
Expenses:
Property operating costs	9,394			—			47,464			(4,635		)	52,223
Depreciation	5,577			—			24,592			—			30,169
Amortization	1,205			—			9,996			—			11,201
General and administrative	6,013			67			7,009			(6,810		)	6,279
	22,189			67			89,061			(11,445		)	99,872
Real estate operating income/(loss)	(1,181		)	(67		)	27,214			6,727			32,693
Other income (expense):
Interest expense	(5,410		)	—			(15,960		)	3,142			(18,228		)
Other income/(expense)	2,793			44			234			(3,143		)	(72		)
Net recoveries from casualty events and litigation settlements	1,038			—			2,515			—			3,553
Equity in income of unconsolidated joint ventures	163			—			—			—			163
	(1,416		)	44			(13,211		)	(1		)	(14,584		)
Income/(loss) from continuing operations	(2,597		)	(23		)	14,003			6,726			18,109
Discontinued operations:
Operating income	711			—			284			—			995
Gain/(loss) on sale of real estate assets, net	(9		)	—			16,267			—			16,258
Income from discontinued operations	702			—			16,551			—			17,253
Net income/(loss)	(1,895		)	(23		)	30,554			6,726			35,362
Less: Net income attributable to noncontrolling interest	—			—			(4		)	—			(4		)
Net income/(loss) attributable to Piedmont	$	(1,895	)	$	(23	)	$	30,550		$	6,726		$	35,358

Condensed Consolidated Statements of Income
For the six months ended June 30, 2014
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	34,510		$	—		$	192,850		$	(3,169	)	$	224,191
Tenant reimbursements	7,778			—			42,100			(204		)	49,674
Property management fee revenue	—			—			8,110			(7,075		)	1,035
	42,288			—			243,060			(10,448		)	274,900
Expenses:
Property operating costs	20,375			—			105,886			(10,854		)	115,407
Depreciation	11,490			—			56,298			—			67,788
Amortization	2,217			—			25,955			—			28,172
General and administrative	11,418			143			13,812			(13,673		)	11,700
	45,500			143			201,951			(24,527		)	223,067
Real estate operating income/(loss)	(3,212		)	(143		)	41,109			14,079			51,833
Other income (expense):
Interest expense	(21,602		)	—			(21,603		)	6,267			(36,938		)
Other income/(expense)	5,560			69			182			(6,267		)	(456		)
Net recoveries from casualty events and litigation settlements	1,352			1,479			1,691			—			4,522
Equity in loss of unconsolidated joint ventures	(599		)	—			—			—			(599		)
	(15,289		)	1,548			(19,730		)	—			(33,471		)
Income/(loss) from continuing operations	(18,501		)	1,405			21,379			14,079			18,362
Discontinued operations:
Operating income	941			—			39			—			980
Gain on sale of real estate assets, net	451			—			747			—			1,198
Income from discontinued operations	1,392			—			786			—			2,178
Gain on sale of real estate assets	—			—			1,140			—			1,140
Net income/(loss)	(17,109		)	1,405			23,305			14,079			21,680
Less: Net income attributable to noncontrolling interest	—			—			(8		)	—			(8		)
Net income/(loss) attributable to Piedmont	$	(17,109	)	$	1,405		$	23,297		$	14,079		$	21,672

Condensed Consolidated Statements of Income
For the six months ended June 30, 2013
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	34,016		$	—		$	182,439		$	(2,449	)	$	214,006
Tenant reimbursements	7,800			—			41,905			(139		)	49,566
Property management fee revenue	—			—			7,389			(6,245		)	1,144
	41,816			—			231,733			(8,833		)	264,716
Expenses:
Property operating costs	18,829			—			94,481			(8,932		)	104,378
Depreciation	11,097			—			47,897			—			58,994
Amortization	2,417			—			17,793			—			20,210
General and administrative	10,391			185			12,427			(12,176		)	10,827
	42,734			185			172,598			(21,108		)	194,409
Real estate operating income/(loss)	(918		)	(185		)	59,135			12,275			70,307
Other income (expense):
Interest expense	(9,034		)	—			(31,851		)	6,284			(34,601		)
Other income/(expense)	5,571			87			(723		)	(6,284		)	(1,349		)
Net recoveries from casualty events and litigation settlements	1,096			—			2,296			—			3,392
Equity in income of unconsolidated joint ventures	558			—			—			—			558
	(1,809		)	87			(30,278		)	—			(32,000		)
Income/(loss) from continuing operations	(2,727		)	(98		)	28,857			12,275			38,307
Discontinued operations:
Operating income	1,181			—			673			—			1,854
Impairment loss	(6,402		)	—			—			—			(6,402		)
Gain/(loss) on sale of real estate assets, net	(9		)	—			16,267			—			16,258
Income/(loss) from discontinued operations	(5,230		)	—			16,940			—			11,710
Net income/(loss)	(7,957		)	(98		)	45,797			12,275			50,017
Less: Net income attributable to noncontrolling interest	—			—			(8		)	—			(8		)
Net income/(loss) attributable to Piedmont	$	(7,957	)	$	(98	)	$	45,789		$	12,275		$	50,009

Condensed Consolidated Statements of Cash Flows

Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2014
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	9,461		$	1,259		$	84,096		$	14,079		$	108,895
Cash Flows from Investing Activities:
Investment in real estate assets and real estate related intangibles, net of accruals	(13,072		)	—			(85,044		)	—			(98,116		)
Intercompany note receivable	(100		)	—			—			100			—
Net sales proceeds from wholly-owned properties	29,519			—			16,721			—			46,240
Net sales proceeds received from unconsolidated joint ventures	6,017			—			—			—			6,017
Investments in unconsolidated joint ventures	(42		)	—			—			—			(42		)
Deferred lease costs paid	(2,403		)	—			(8,967		)	—			(11,370		)
Net cash provided by/(used in) investing activities	19,919			—			(77,290		)	100			(57,271		)
Cash Flows from Financing Activities:
Deferred financing costs paid	(1,016		)	—			—			—			(1,016		)
Proceeds from debt	846,564			—			—			—			846,564
Repayments of debt	(204,000		)	—			(575,070		)	—			(779,070		)
Intercompany note payable	—			—			100			(100		)	—
Repurchases of common stock as part of announced plan	—			(54,685		)	—			—			(54,685		)
(Distributions to)/repayments from affiliates	(669,181		)	115,245			568,015			(14,079		)	—
Dividends paid and discount on dividend reinvestments	—			(61,819		)	(8		)	—			(61,827		)
Net cash used in financing activities	(27,633		)	(1,259		)	(6,963		)	(14,179		)	(50,034		)
Net increase/(decrease) in cash and cash equivalents	1,747			—			(157		)	—			1,590
Cash and cash equivalents, beginning of period	3,352			150			3,471			—			6,973
Cash and cash equivalents, end of period	$	5,099		$	150		$	3,314		$	—		$	8,563

Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2013
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	4,323		$	626		$	69,563		$	12,274		$	86,786
Cash Flows from Investing Activities:
Investment in real estate assets and real estate related intangibles, net of accruals	(3,448		)	—			(328,685		)	300			(331,833		)
Net sales proceeds from wholly-owned properties	3,753			—			45,573			—			49,326
Investments in unconsolidated joint ventures	(777		)	—			—			—			(777		)
Deferred lease costs paid	(4,457		)	—			(8,723		)	—			(13,180		)
Net cash (used in)/provided by investing activities	(4,929		)	—			(291,835		)	300			(296,464		)
Cash Flows from Financing Activities:
Deferred financing costs paid	(3,343		)	—			—			—			(3,343		)
Proceeds from debt	694,604			—			—			—			694,604
Repayments of debt	(402,000		)	—			—			—			(402,000		)
Net costs of issuance of common stock	—			(24		)	—			—			(24		)
Repurchases of common stock as part of announced plan	—			(14,844		)	—			—			(14,844		)
Intercompany distributions	(282,321		)	81,319			213,576			(12,574		)	—
Dividends paid and discount on dividend reinvestments	—			(67,164		)	(8		)	—			(67,172		)
Net cash provided by/(used in) financing activities	6,940			(713		)	213,568			(12,574		)	207,221
Net increase/(decrease) in cash and cash equivalents	6,334			(87		)	(8,704		)	—			(2,457		)
Cash and cash equivalents, beginning of period	62,371			238			(49,652		)	—			12,957
Cash and cash equivalents, end of period	$	68,705		$	151		$	(58,356	)	$	—		$	10,500