Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheets

Condensed Consolidated Balance Sheets
As of June 30, 2016
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	48,213		$	—		$	608,027	$	—		$	656,240
Buildings and improvements, less accumulated depreciation	242,179			—			2,538,622		(300		)	2,780,501
Intangible lease assets, less accumulated amortization	997			—			70,797		—			71,794
Construction in progress	387			—			24,800		—			25,187
Real estate assets held for sale, net	69,766			—			—		—			69,766
Total real estate assets	361,542			—			3,242,246		(300		)	3,603,488
Investments in and amounts due from unconsolidated joint ventures	7,413			—			—		—			7,413
Cash and cash equivalents	16,270			150			4,689		—			21,109
Tenant and straight-line rent receivables, net	20,448			—			155,517		—			175,965
Advances to affiliates	6,115,364			1,283,243			—		(7,398,607		)	—
Investment in subsidiary	—			3,691,562			184		(3,691,746		)	—
Notes receivable	89,350			—			14,289		(103,639		)	—
Prepaid expenses, restricted cash, escrows, and other assets	17,069			75			24,839		(1,657		)	40,326
Goodwill	180,097			—			—		—			180,097
Deferred lease costs, net	18,115			—			243,225		—			261,340
Other assets held for sale, net	8,761			—			—		—			8,761
Total assets	$	6,834,429		$	4,975,030		$	3,684,989	$	(11,195,949	)	$	4,298,499
Liabilities:
Debt, net	$	1,522,642		$	—		$	465,311	$	(103,639	)	$	1,884,314
Accounts payable, accrued expenses, and accrued capital expenditures	17,525			573			105,946		(1,657		)	122,387
Advances from affiliates	641,314			5,071,390			1,775,933		(7,488,637		)	—
Deferred income	4,077			—			19,959		—			24,036
Intangible lease liabilities, net	—			—			38,970		—			38,970
Interest rate swaps	22,079			—			—		—			22,079
Total liabilities	2,207,637			5,071,963			2,406,119		(7,593,933		)	2,091,786
Stockholders’ Equity:
Common stock	—			1,452			—		—			1,452
Additional paid-in capital	3,687,562			3,674,348			1,311		(3,691,746		)	3,671,475
Retained/(cumulative distributions in excess of) earnings	950,340			(3,772,733		)	1,276,534		89,730			(1,456,129		)
Other comprehensive loss	(11,110		)	—			—		—			(11,110		)
Piedmont stockholders’ equity	4,626,792			(96,933		)	1,277,845		(3,602,016		)	2,205,688
Noncontrolling interest	—			—			1,025		—			1,025
Total stockholders’ equity	4,626,792			(96,933		)	1,278,870		(3,602,016		)	2,206,713
Total liabilities and stockholders’ equity	$	6,834,429		$	4,975,030		$	3,684,989	$	(11,195,949	)	$	4,298,499

Condensed Consolidated Balance Sheets
As of December 31, 2015
(in thousands)	Issuer		Guarantor			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	54,459	$	—		$	621,632	$	—		$	676,091
Buildings and improvements, less accumulated depreciation	270,057		—			2,567,706		(300		)	2,837,463
Intangible lease assets, less accumulated amortization	1,268		—			83,395		—			84,663
Construction in progress	240		—			20,735		—			20,975
Real estate assets held for sale, net	76,614		—			—		—			76,614
Total real estate assets	402,638		—			3,293,468		(300		)	3,695,806
Investments in and amounts due from unconsolidated joint ventures	7,577		—			—		—			7,577
Cash and cash equivalents	2,174		150			3,117		—			5,441
Tenant and straight-line rent receivables, net	23,738		—			149,994		—			173,732
Advances to affiliates	6,073,606		1,251,530			—		(7,325,136		)	—
Investment in subsidiary	—		3,752,523			186		(3,752,709		)	—
Notes receivable	134,750		—			23,890		(113,240		)	45,400
Prepaid expenses, restricted cash, escrows, and other assets	7,091		—			24,118		(1,258		)	29,951
Goodwill	180,097		—			—		—			180,097
Deferred lease costs, net	20,939		—			267,102		—			288,041
Other assets held for sale, net	8,490		—			—		—			8,490
Total assets	$	6,861,100	$	5,004,203		$	3,761,875	$	(11,192,643	)	$	4,434,535
Liabilities:
Debt, net	$	1,552,007	$	—		$	590,743	$	(113,240	)	$	2,029,510
Accounts payable, accrued expenses, and accrued capital expenditures	18,954		580			110,189		(1,258		)	128,465
Advances from affiliates	580,526		5,033,266			1,788,840		(7,402,632		)	—
Deferred income	5,905		—			21,365		—			27,270
Intangible lease liabilities, net	—		—			42,853		—			42,853
Interest rate swaps	9,993		—			—		—			9,993
Total liabilities	2,167,385		5,033,846			2,553,990		(7,517,130		)	2,238,091
Stockholders’ Equity:
Common stock	—		1,455			—		—			1,455
Additional paid-in capital	3,748,524		3,672,849			1,314		(3,752,710		)	3,669,977
Retained/(cumulative distributions in excess of) earnings	943,530		(3,703,947		)	1,205,546		77,197			(1,477,674		)
Other comprehensive loss	1,661		—			—		—			1,661
Piedmont stockholders’ equity	4,693,715		(29,643		)	1,206,860		(3,675,513		)	2,195,419
Noncontrolling interest	—		—			1,025		—			1,025
Total stockholders’ equity	4,693,715		(29,643		)	1,207,885		(3,675,513		)	2,196,444
Total liabilities and stockholders’ equity	$	6,861,100	$	5,004,203		$	3,761,875	$	(11,192,643	)	$	4,434,535

Condensed Consolidated Statements of Income

Condensed Consolidated Statements of Income
For the three months ended June 30, 2016
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	14,661		$	—		$	97,860		$	(754	)	$	111,767
Tenant reimbursements	3,753			—			19,409			(76		)	23,086
Property management fee revenue	—			—			4,178			(3,724		)	454
	18,414			—			121,447			(4,554		)	135,307
Expenses:
Property operating costs	8,307			—			48,568			(4,595		)	52,280
Depreciation	4,476			—			27,080			—			31,556
Amortization	941			—			16,461			—			17,402
Impairment loss on real estate assets	5,972			—			2,336			—			8,308
General and administrative	8,119			92			10,213			(10,096		)	8,328
	27,815			92			104,658			(14,691		)	117,874
Real estate operating income/(loss)	(9,401		)	(92		)	16,789			10,137			17,433
Other income (expense):
Interest expense	(12,170		)	—			(6,666		)	2,423			(16,413		)
Other income/(expense)	1,735			282			365			(2,423		)	(41		)
Equity in income of unconsolidated joint ventures	111			—			—			—			111
	(10,324		)	282			(6,301		)	—			(16,343		)
Income/(loss) from continuing operations	(19,725		)	190			10,488			10,137			1,090
Discontinued operations:
Operating loss	—			—			(1		)	—			(1		)
Loss from discontinued operations	—			—			(1		)	—			(1		)
Gain on sale of real estate assets	32,017			—			46,970			—			78,987
Net income	12,292			190			57,457			10,137			80,076
Less: Net income applicable to noncontrolling interest	—			—			(4		)	—			(4		)
Net income applicable to Piedmont	$	12,292		$	190		$	57,453		$	10,137		$	80,072

Condensed Consolidated Statements of Income
For the three months ended June 30, 2015
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	17,046		$	—		$	101,137		$	(729	)	$	117,454
Tenant reimbursements	3,557			—			25,427			(171		)	28,813
Property management fee revenue	—			—			4,501			(4,034		)	467
	20,603			—			131,065			(4,934		)	146,734
Expenses:
Property operating costs	9,550			—			57,046			(5,117		)	61,479
Depreciation	5,159			—			30,880			—			36,039
Amortization	1,096			—			13,859			—			14,955
Impairment loss on real estate assets	5,354			—			—			—			5,354
General and administrative	7,904			84			9,263			(9,168		)	8,083
	29,063			84			111,048			(14,285		)	125,910
Real estate operating income/(loss)	(8,460		)	(84		)	20,017			9,351			20,824
Other income (expense):
Interest expense	(13,441		)	—			(7,769		)	3,038			(18,172		)
Other income/(expense)	3,392			—			242			(3,038		)	596
Equity in income of unconsolidated joint ventures	124			—			—			—			124
	(9,925		)	—			(7,527		)	—			(17,452		)
Income/(loss) from continuing operations	(18,385		)	(84		)	12,490			9,351			3,372
Discontinued operations:
Operating loss	(2		)	—			(1		)	—			(3		)
Loss from discontinued operations	(2		)	—			(1		)	—			(3		)
Gain on sale of real estate assets	26,611			—			—			—			26,611
Net income/(loss)	8,224			(84		)	12,489			9,351			29,980
Less: Net income applicable to noncontrolling interest	—			—			(4		)	—			(4		)
Net income/(loss) applicable to Piedmont	$	8,224		$	(84	)	$	12,485		$	9,351		$	29,976

Condensed Consolidated Statements of Income
For the six months ended June 30, 2016
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	30,127		$	—		$	197,896		$	(1,518	)	$	226,505
Tenant reimbursements	7,026			—			38,980			(169		)	45,837
Property management fee revenue	—			—			8,495			(7,518		)	977
	37,153			—			245,371			(9,205		)	273,319
Expenses:
Property operating costs	16,659			—			99,083			(9,274		)	106,468
Depreciation	9,376			—			53,962			—			63,338
Amortization	1,991			—			33,217			—			35,208
Impairment loss on real estate assets	5,972			—			2,336			—			8,308
General and administrative	15,718			168			19,864			(19,558		)	16,192
	49,716			168			208,462			(28,832		)	229,514
Real estate operating income/(loss)	(12,563		)	(168		)	36,909			19,627			43,805
Other income (expense):
Interest expense	(24,360		)	—			(13,404		)	4,966			(32,798		)
Other income/(expense)	4,400			282			537			(4,966		)	253
Equity in income of unconsolidated joint ventures	226			—			—			—			226
	(19,734		)	282			(12,867		)	—			(32,319		)
Income/(loss) from continuing operations	(32,297		)	114			24,042			19,627			11,486
Discontinued operations:
Operating loss	—			—			(1		)	—			(1		)
Loss from discontinued operations	—			—			(1		)	—			(1		)
Gain on sale of real estate assets	32,012			—			46,955			—			78,967
Net income/(loss)	(285		)	114			70,996			19,627			90,452
Less: Net income applicable to noncontrolling interest	—			—			(8		)	—			(8		)
Net income/(loss) applicable to Piedmont	$	(285	)	$	114		$	70,988		$	19,627		$	90,444

Condensed Consolidated Statements of Income
For the six months ended June 30, 2015
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	35,983		$	—		$	200,714		$	(1,436	)	$	235,261
Tenant reimbursements	7,802			—			52,700			(299		)	60,203
Property management fee revenue	—			—			8,940			(7,911		)	1,029
	43,785			—			262,354			(9,646		)	296,493
Expenses:
Property operating costs	20,211			—			115,541			(10,037		)	125,715
Depreciation	10,961			—			61,310			—			72,271
Amortization	2,350			—			27,275			—			29,625
Impairment loss of real estate assets	5,354			—			—			—			5,354
General and administrative	14,104			195			16,988			(16,797		)	14,490
	52,980			195			221,114			(26,834		)	247,455
Real estate operating income/(loss)	(9,195		)	(195		)	41,240			17,188			49,038
Other income (expense):
Interest expense	(26,630		)	—			(16,717		)	6,159			(37,188		)
Other income/(expense)	6,159			—			415			(6,159		)	415
Equity in income of unconsolidated joint ventures	283			—			—			—			283
	(20,188		)	—			(16,302		)	—			(36,490		)
Income/(loss) from continuing operations	(29,383		)	(195		)	24,938			17,188			12,548
Discontinued operations:
Operating loss	(2		)	—			(1		)	—			(3		)
Loss from discontinued operations	(2		)	—			(1		)	—			(3		)
Gain on sale of real estate assets	36,684			—			—			—			36,684
Net income/(loss)	7,299			(195		)	24,937			17,188			49,229
Less: Net income applicable to noncontrolling interest	—			—			(8		)	—			(8		)
Net income/(loss) applicable to Piedmont	$	7,299		$	(195	)	$	24,929		$	17,188		$	49,221

Condensed Consolidated Statements of Cash Flows

Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2016
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	(14,105	)	$	3,075		$	94,146		$	19,628		$	102,744
Cash Flows from Investing Activities:
Investment in real estate assets and real estate related intangibles, net of accruals	(13,062		)	—			(51,360		)	—			(64,422		)
Intercompany note receivable	—			—			9,600			(9,600		)	—
Net sales proceeds from wholly-owned properties	108,550			—			93,140			—			201,690
Deferred lease costs paid	(1,712		)	—			(4,554		)	—			(6,266		)
Net cash provided by/(used in) investing activities	93,776			—			46,826			(9,600		)	131,002
Cash Flows from Financing Activities:
Debt issuance costs paid	(138		)	—			—			—			(138		)
Proceeds from debt	211,000			—			—			—			211,000
Repayments of debt	(232,000		)	—			(125,597		)	—			(357,597		)
Intercompany note payable	(9,600		)	—			—			9,600			—
Costs of issuance of common stock	—			(42		)	—			—			(42		)
Shares withheld to pay tax obligations related to employee stock compensation	—			(2,283		)	—			—			(2,283		)
Repurchases of common stock as part of announced plan	—			(7,943		)	—			—			(7,943		)
(Distributions to)/repayments from affiliates	(34,837		)	68,259			(13,794		)	(19,628		)	—
Dividends paid and discount on dividend reinvestments	—			(61,066		)	(9		)	—			(61,075		)
Net cash provided by/(used in) financing activities	(65,575		)	(3,075		)	(139,400		)	(10,028		)	(218,078		)
Net decrease in cash and cash equivalents	14,096			—			1,572			—			15,668
Cash and cash equivalents, beginning of period	2,174			150			3,117			—			5,441
Cash and cash equivalents, end of period	$	16,270		$	150		$	4,689		$	—		$	21,109

Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2015
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided by Operating Activities	$	(15,322	)	$	2,869		$	91,753		$	17,187		$	96,487
Cash Flows from Investing Activities:
Investment in real estate assets and real estate related intangibles, net of accruals	(10,269		)	—			(97,503		)	—			(107,772		)
Intercompany note receivable	72,000			—			—			(72,000		)	—
Redemption of noncontrolling interest in unconsolidated variable interest entity	—			—			(4,000		)	—			(4,000		)
Net sales proceeds from wholly-owned properties	87,925			—			—			—			87,925
Deferred lease costs paid	(2,027		)	—			(8,651		)	—			(10,678		)
Net cash provided by/(used in) investing activities	147,629			—			(110,154		)	(72,000		)	(34,525		)
Cash Flows from Financing Activities:
Debt issuance costs paid	(423		)	—			(407		)	—			(830		)
Proceeds from debt	895,578			—			159,279			—			1,054,857
Repayments of debt	(907,000		)	—			(177,576		)	72,000			(1,012,576		)
Costs of issuance of common stock	—			(326		)	—			—			(326		)
Shares withheld to pay tax obligations related to employee stock compensation	—			(1,654		)	—			—			(1,654		)
Repurchases of common stock as part of announced plan	—			(39,914		)	—			—			(39,914		)
(Distributions to)/repayments from affiliates	(122,441		)	102,205			37,423			(17,187		)	—
Dividends paid and discount on dividend reinvestments	—			(64,820		)	(8		)	—			(64,828		)
Net cash provided/(used in) by financing activities	(134,286		)	(4,509		)	18,711			54,813			(65,271		)
Net increase/(decrease) in cash and cash equivalents	(1,979		)	(1,640		)	310			—			(3,309		)
Cash and cash equivalents, beginning of period	8,143			1,790			2,373			—			12,306
Cash and cash equivalents, end of period	$	6,164		$	150		$	2,683		$	—		$	8,997