Property Dispositions, Assets Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Property Dispositions, Assets Held for Sale, and Discontinued Operations

Property Dispositions, Assets Held for Sale, and Discontinued Operations

Property Dispositions

Since the adoption of ASU 2014-08 during the year ended December 31, 2014, none of Piedmont's property dispositions have met the criteria to be reported as discontinued operations. The operational results for periods prior to sale for properties sold since the adoption of ASU 2014-08 are presented as continuing operations in the accompanying consolidated statements of income, and the gain/(loss) on sale is presented separately in the consolidated statements of income unless otherwise indicated below. Details of such properties sold are presented below (in thousands), with the calculation of each gain/loss on sale reflecting the allocation of a proportionate amount of goodwill as applicable (see Note 2 for more information):

Buildings Sold	Location	Date of Sale	Revised (2014) or Restated Gain/(Loss) on Sale				Net Sales Proceeds
2020 West 89th Street	Leawood, Kansas	May 19, 2014	$	870			$	5,515
Two Park Center (1)	Hoffman Estates, Illinois	May 29, 2014	$	(169	)		$	6,017
3900 Dallas Parkway	Plano, Texas	January 30, 2015	$	8,940			$	25,803
5601 Headquarters Drive	Plano, Texas	April 28, 2015	$	6,390			$	33,326
River Corporate Center	Tempe, Arizona	April 29, 2015	$	4,144			$	24,223
Copper Ridge Center	Lyndhurst, New Jersey	May 1, 2015	$	11,358			$	50,372	(2)
Eastpoint I & II	Mayfield Heights, Ohio	July 28, 2015	$	(177	)	(4)	$	17,342
3750 Brookside Parkway	Alpharetta, Georgia	August 10, 2015	$	761			$	13,624
Chandler Forum	Chandler, Arizona	September 1, 2015	$	13,805			$	32,267
Aon Center	Chicago, Illinois	October 29, 2015	$	84,218			$	646,243
2 Gatehall Drive	Parsippany, New Jersey	December 21, 2015	$	162		(4)	$	50,369
1055 East Colorado Boulevard	Pasadena, California	April 21, 2016	$	29,462			$	60,076
Fairway Center II	Brea, California	April 28, 2016	$	14,406			$	33,062
1901 Main Street	Irvine, California	May 2, 2016	$	29,964			$	63,149	(3)
9221 Corporate Boulevard	Rockville, Maryland	July 27, 2016	$	(192	)	(4)	$	12,035
150 West Jefferson	Detroit, Michigan	July 29, 2016	$	(664	)	(4)	$	77,844
9200 and 9211 Corporate Boulevard	Rockville, Maryland	September 28, 2016	$	(41	)	(4)	$	12,519
11695 Johns Creek Parkway	Johns Creek, Georgia	December 22, 2016	$	1,978			$	13,827
Braker Pointe III	Austin, Texas	December 29, 2016	$	18,579			$	48,006

⁽¹⁾  Property was owned as part of the unconsolidated joint venture, Fund XIII and REIT Joint Venture. As such, the loss on sale was presented as equity in income/(loss) of unconsolidated joint ventures.

⁽²⁾  As part of the transaction, Piedmont accepted a secured promissory note from the buyer for the remaining $45.4 million owed on the sale. During the year ended December 31, 2016, the note receivable was repaid in full and such proceeds are reflected in the accompanying consolidated statements of cash flows as net sales proceeds from the sale of wholly-owned properties.

⁽³⁾  As part of the transaction, Piedmont accepted a secured promissory note from the buyer for $33.0 million, and the note receivable was repaid in full during the year ended December 31, 2016. As such, the full proceeds from the sale of the property are reflected in the accompanying consolidated statements of cash flows as net sales proceeds from the sale of wholly-owned properties.

⁽⁴⁾  As discussed in Note 10 above, Piedmont recognized an impairment loss prior to, or in conjunction with, the sale of the property. Therefore, any gain/(loss) recognized upon the consummation of the sale consists solely of adjustments made subsequent to the sale for closing cost estimates or post-closing prorations.

Assets Held for Sale

As of December 31, 2016, no assets met the criteria for held for sale classification. For comparative purposes, any property which met the criteria to be presented as held for sale as of March 31, 2016, June 30, 2016, or September 30, 2016 was re-classified as held for sale as of December 31, 2015. The only property meeting this criteria was the 150 West Jefferson building (sold on July 29, 2016). Details of amounts held for sale as of December 31, 2015 are presented below (in thousands):

			(Restated)
	December 31, 2016		December 31, 2015
Real estate assets held for sale, net:
Land	$	—	$	9,759
Building and improvements, less accumulated depreciation of $0 and $32,162 as of December 31, 2016, and 2015, respectively	—		66,840
Construction in progress	—		15
Total real estate assets held for sale, net	$	—	$	76,614
Other assets held for sale, net:
Straight-line rent receivables	$	—	$	4,729
Prepaid expenses and other assets	—		66
Allocation of goodwill (see Note 2)	—		2,287
Deferred lease costs, less accumulated amortization of $0 and $1,162 as of December 31, 2016 and 2015, respectively	—		3,695
Total other assets held for sale, net	$	—	$	10,777

Discontinued Operations

Asset disposals previously classified as, and that continue to be reported as, discontinued operations for the year ended December 31, 2014 are as follows (in thousands):

			(Revised)
Building Sold	Location	Date of Sale	Gain/(Loss) on Sale			Net Sales Proceeds
11107 and 11109 Sunset Hills Road	Reston, Virginia	March 19, 2014	$	(102	)	$	22,326
1441 West Long Lake Road	Troy, Michigan	April 30, 2014	$	182		$	7,202
4685 Investment Drive	Troy, Michigan	April 30, 2014	$	191		$	11,198

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

	Years Ended December 31,
	2016		2015			2014
						(Revised)
Revenues:
Rental income	$	—	$	19		$	1,365
Tenant reimbursements	—		64			125
Property management fee revenue	—		—			1
	—		83			1,491
Expenses:
Property operating costs	—		(1		)	225
Depreciation	—		—			83
Amortization	—		—			223
	—		(1		)	531
Other income (expense):
Other income/(expense)	—		—			(6		)
	—		—			(6		)
Operating income, excluding gain/(loss) on sale of real estate assets	—		84			954
Gain/(loss) on sale of real estate assets	—		(1		)	262
Income from discontinued operations	$	—	$	83		$	1,216