XML 40 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Guarantor and Non-Guarantor Financial Information
 12 Months Ended
Dec. 31, 2018
Guarantor and Non-Guarantor Financial Information [Abstract]  
Guarantor and Non-Guarantor Financial Information Guarantor and Non-Guarantor Financial Information

The following condensed consolidating financial information for Piedmont (the "Parent", "Guarantor", and/or "Consolidated"), Piedmont OP (the "Issuer"), and the other directly and indirectly owned subsidiaries of Piedmont as the Guarantor (the "Non-Guarantors") is provided pursuant to the requirements of Rule 3-10 of Regulation S-X regarding financial statements of guarantors and issuers of guaranteed registered securities. The Issuer is a wholly-owned subsidiary of the Guarantor, and all guarantees by the Guarantor of securities issued by the Issuer are full and unconditional. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with the Non-Guarantor Subsidiaries.
Condensed Consolidated Balance Sheets
As of December 31, 2018
(in thousands)
Piedmont
(Parent)
(Guarantor)
 
Piedmont OP
(the Issuer)
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Assets:
 
 
 
 
 
 
 
 
 
Real estate assets, at cost:
 
 
 
 
 
 
 
 
 
Land
$
—

 
$
36,094

 
$
471,328

 
$
—

 
$
507,422

Buildings and improvements, less accumulated depreciation
—

 
176,927

 
2,128,469

 
(300
)
 
2,305,096

Intangible lease assets, less accumulated amortization
—

 
—

 
77,676

 
—

 
77,676

Construction in progress
—

 
5,708

 
10,140

 
—

 
15,848

Real estate assets held for sale, net
—

 
—

 
110,552

 
—

 
110,552

Total real estate assets
—

 
218,729

 
2,798,165

 
(300
)
 
3,016,594

Cash and cash equivalents
150

 
—

 
4,939

 
(518
)
 
4,571

Tenant and straight-line receivables, net
—

 
16,143

 
157,246

 
—

 
173,389

Investment in subsidiaries
1,744,122

 
2,704,337

 
166

 
(4,448,625
)
 
—

Notes receivable
—

 
810

 
144,500

 
(145,310
)
 
—

Prepaid expenses, restricted cash, escrows, interest rate swaps, and other assets
42

 
5,682

 
22,318

 
(24
)
 
28,018

Goodwill
—

 
98,918

 
—

 
—

 
98,918

Deferred lease costs, net
—

 
15,158

 
234,990

 
—

 
250,148

Other assets held for sale, net
—

 
—

 
20,791

 
—

 
20,791

Total assets
$
1,744,314

 
$
3,059,777

 
$
3,383,115

 
$
(4,594,777
)
 
$
3,592,429

Liabilities:
 
 
 
 
 
 
 
 
 
Debt, net
$
—

 
$
1,495,904

 
$
335,717

 
$
(145,310
)
 
$
1,686,311

Accounts payable, accrued expenses, dividends payable, interest rate swaps and accrued capital expenditures
32,174

 
14,543

 
83,316

 
(542
)
 
129,491

Deferred income
—

 
2,274

 
26,505

 
—

 
28,779

Intangible lease liabilities, net
—

 
—

 
35,708

 
—

 
35,708

Total liabilities
32,174

 
1,512,721

 
481,246

 
(145,852
)
 
1,880,289

Equity:
 
 
 
 
 
 
 
 
 
Total stockholders’ equity
1,712,140

 
1,547,056

 
2,901,869

 
(4,448,925
)
 
1,712,140

Total liabilities and stockholders’ equity
$
1,744,314

 
$
3,059,777

 
$
3,383,115

 
$
(4,594,777
)
 
$
3,592,429


Condensed Consolidated Balance Sheets
As of December 31, 2017
(in thousands)
Piedmont
(Parent)
(Guarantor)
 
Piedmont OP
(the Issuer)
 
Non-Guarantors
 
Eliminations
 
Piedmont (Consolidated)
Assets:
 
 
 
 
 
 
 
 
 
Real estate assets, at cost:
 
 
 
 
 
 
 
 
 
Land
$
—

 
$
36,094

 
$
454,531

 
$
—

 
$
490,625

Buildings and improvements, less accumulated depreciation
—

 
180,886

 
2,062,933

 
(300
)
 
2,243,519

Intangible lease assets, less accumulated amortization
—

 
181

 
77,624

 
—

 
77,805

Construction in progress
—

 
85

 
11,259

 
—

 
11,344

Real estate assets held for sale, net
—

 
32,815

 
528,634

 
—

 
561,449

Total real estate assets
—

 
250,061

 
3,134,981

 
(300
)
 
3,384,742

Cash and cash equivalents
150

 
3,890

 
3,342

 
—

 
7,382

Tenant and straight-line rent receivables, net, and amounts from unconsolidated joint ventures
—

 
16,891

 
139,727

 
—

 
156,618

Advances to affiliates
1,674,276

 
6,297,632

 
—

 
(7,971,908
)
 
—

Investment in subsidiary
3,437,299

 
—

 
172

 
(3,437,471
)
 
—

Notes receivable
—

 
88,810

 
144,500

 
(233,310
)
 
—

Prepaid expenses, restricted cash, escrows, interest swaps and other assets
2

 
5,094

 
18,483

 
(740
)
 
22,839

Goodwill
—

 
98,918

 
—

 
—

 
98,918

Deferred lease costs, net
—

 
16,611

 
228,564

 
—

 
245,175

Other assets held for sale, net
—

 
2,266

 
82,027

 
—

 
84,293

Total assets
$
5,111,727

 
$
6,780,173

 
$
3,751,796

 
$
(11,643,729
)
 
$
3,999,967

Liabilities:
 
 
 
 
 
 
 
 
 
Debt, net
$
—

 
$
1,535,239

 
$
424,998

 
$
(233,310
)
 
$
1,726,927

Accounts payable, accrued expenses, dividends payable, and accrued capital expenditures
104,028

 
20,279

 
93,086

 
(740
)
 
216,653

Advances from affiliates
5,277,957

 
941,494

 
1,850,712

 
(8,070,163
)
 
—

Deferred income
—

 
3,631

 
25,951

 
—

 
29,582

Intangible lease liabilities, net
—

 
—

 
38,458

 
—

 
38,458

Interest rate swaps
—

 
1,478

 
—

 
—

 
1,478

Liabilities held for sale, net
—

 
—

 
380

 
—

 
380

Total liabilities
5,381,985

 
2,502,121

 
2,433,585

 
(8,304,213
)
 
2,013,478

Equity:
 
 
 
 
 
 
 
 
 
Total stockholders’ equity
(270,258
)
 
4,278,052

 
1,318,211

 
(3,339,516
)
 
1,986,489

Total liabilities and stockholders’ equity
$
5,111,727

 
$
6,780,173

 
$
3,751,796

 
$
(11,643,729
)
 
$
3,999,967


Condensed Consolidated Statements of Income
For the year ended December 31, 2018
(in thousands)
Piedmont
(Parent)
(Guarantor)
 
Piedmont OP
(the Issuer)
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Rental income
$
—

 
$
35,221

 
$
378,473

 
$
(2,027
)
 
$
411,667

Tenant reimbursements
—

 
9,489

 
83,700

 
(446
)
 
92,743

Property management fee revenue
—

 
—

 
17,118

 
(15,668
)
 
1,450

Other property related income
—

 
130

 
19,977

 
—

 
20,107

 
—

 
44,840

 
499,268

 
(18,141
)
 
525,967

Expenses:
 
 
 
 
 
 
 
 
 
Property operating costs
—

 
19,583

 
207,896

 
(18,141
)
 
209,338

Depreciation
—

 
11,514

 
96,442

 
—

 
107,956

Amortization
—

 
1,990

 
61,305

 
—

 
63,295

Impairment loss on real estate assets
—

 
—

 
—

 
—

 
—

General and administrative
289

 
6,576

 
22,848

 
—

 
29,713

 
289

 
39,663

 
388,491

 
(18,141
)
 
410,302

 
(289
)
 
5,177

 
110,777

 
—

 
115,665

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
—

 
(54,095
)
 
(14,558
)
 
7,630

 
(61,023
)
Other income/(expense)
—

 
144

 
9,124

 
(7,630
)
 
1,638

Loss on extinguishment of debt
—

 
(1,680
)
 
—

 
—

 
(1,680
)
Gain on sale of real estate assets
—

 
1,417

 
74,274

 
—

 
75,691

 
—

 
(54,214
)
 
68,840

 
—

 
14,626

Income/(loss) before consolidated subsidiaries
(289
)
 
(49,037
)
 
179,617

 
—

 
130,291

Income from subsidiaries
130,585

 
178,648

 
—

 
(309,233
)
 
—

Net income
130,296

 
129,611

 
179,617

 
(309,233
)
 
130,291

Net loss applicable to noncontrolling interest
—

 
—

 
5

 
—

 
5

Net income applicable to Piedmont
$
130,296

 
$
129,611

 
$
179,622

 
$
(309,233
)
 
$
130,296





Condensed Consolidated Statements of Income
For the year ended December 31, 2017
(in thousands)
Piedmont
(Parent)
(Guarantor)
 
Piedmont OP
(the Issuer)
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Rental income
$
—

 
$
42,407

 
$
414,509

 
$
(1,791
)
 
$
455,125

Tenant reimbursements
—

 
11,702

 
86,911

 
(474
)
 
98,139

Property management fee revenue
—

 
—

 
18,205

 
(16,470
)
 
1,735

Other property related income
—

 
144

 
19,030

 
—

 
19,174

 
—

 
54,253

 
538,655

 
(18,735
)
 
574,173

Expenses:
 
 
 
 
 
 
 
 
 
Property operating costs
—

 
22,805

 
218,371

 
(18,735
)
 
222,441

Depreciation
—

 
12,995

 
106,293

 
—

 
119,288

Amortization
—

 
3,049

 
72,318

 
—

 
75,367

Impairment loss on real estate assets
—

 
87

 
46,374

 
—

 
46,461

General and administrative
347

 
6,443

 
22,529

 
—

 
29,319

 
347

 
45,379

 
465,885

 
(18,735
)
 
492,876

 
(347
)
 
8,874

 
72,770

 
—

 
81,297

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
—

 
(56,769
)
 
(26,715
)
 
15,360

 
(68,124
)
Other income/(expense)
—

 
9,168

 
6,849

 
(15,360
)
 
657

Equity in income of unconsolidated joint ventures
—

 
3,845

 
—

 
—

 
3,845

Gain on sale of real estate assets, net
—

 
6,431

 
109,443

 
—

 
115,874

 
—

 
(37,325
)
 
89,577

 
—

 
52,252

Net income/(loss)
(347
)
 
(28,451
)
 
162,347

 
—

 
133,549

Net loss applicable to noncontrolling interest
—

 
—

 
15

 
—

 
15

Net income/(loss) applicable to Piedmont
$
(347
)
 
$
(28,451
)
 
$
162,362

 
$
—

 
$
133,564



Condensed Consolidated Statements of Income
For the year ended December 31, 2016
(in thousands)
Piedmont
(Parent)
(Guarantor)
 
Piedmont OP
(the Issuer)
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Rental income
$
—

 
$
53,527

 
$
389,022

 
$
(2,631
)
 
$
439,918

Tenant reimbursements
—

 
14,295

 
81,104

 
(498
)
 
94,901

Property management fee revenue
—

 
—

 
16,947

 
(15,033
)
 
1,914

Other property related income
—

 
1,266

 
17,716

 
—

 
18,982

 
—

 
69,088

 
504,789

 
(18,162
)
 
555,715

Expenses:
 
 
 
 
 
 
 
 
 
Property operating costs
—

 
33,829

 
205,344

 
(18,377
)
 
220,796

Depreciation
—

 
16,657

 
111,076

 
—

 
127,733

Amortization
—

 
3,715

 
71,404

 
—

 
75,119

Impairment loss
—

 
8,259

 
25,642

 
—

 
33,901

General and administrative
311

 
26,452

 
36,065

 
(35,446
)
 
27,382

 
311

 
88,912

 
449,531

 
(53,823
)
 
484,931

 
(311
)
 
(19,824
)
 
55,258

 
35,661

 
70,784

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
—

 
(49,108
)
 
(27,636
)
 
11,884

 
(64,860
)
Other income/(expense)
282

 
9,560

 
2,029

 
(11,884
)
 
(13
)
Net recoveries from casualty events
—

 
—

 
34

 
—

 
34

Equity in income of unconsolidated joint ventures
—

 
362

 
—

 
—

 
362

Gain on sale of real estate assets, net
—

 
31,275

 
62,135

 
—

 
93,410

 
282

 
(7,911
)
 
36,562

 
—

 
28,933

Net income/(loss)
(29
)
 
(27,735
)
 
91,820

 
35,661

 
99,717

Net loss applicable to noncontrolling interest
—

 
—

 
15

 
—

 
15

Net income/(loss) applicable to Piedmont
$
(29
)
 
$
(27,735
)
 
$
91,835

 
$
35,661

 
$
99,732


Consolidating Statements of Comprehensive Income
For the Year Ended December 31, 2018
(in thousands)
Piedmont (Parent) (Guarantor)
 
Piedmont OP (the Issuer)
 
Non-Guarantors
 
Eliminations
 
Piedmont
(Consolidated)
Net income
$
130,296

 
$
129,611

 
$
179,622

 
$
(309,233
)
 
$
130,296

Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges
692

 
692

 
—

 
(692
)
 
692

Plus: Reclassification of net (gain)/loss included in net income
(300
)
 
(300
)
 
—

 
300

 
(300
)
Other comprehensive income
392

 
392

 
—

 
(392
)
 
392

 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
130,688

 
$
130,003

 
$
179,622

 
$
(309,625
)
 
$
130,688







Condensed Consolidated Statements of Cash Flows
For the year ended December 31, 2018
(in thousands)
Piedmont (Parent) (Guarantor)
 
Piedmont OP (the Issuer)
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net Cash Provided By/(Used In) Operating Activities
$
135,755

 
$
141,293

 
$
235,562

 
$
(309,741
)
 
$
202,869

 
 
 
 
 
 
 
 
 
 
Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Investment in real estate assets, consolidated joint venture, and real estate related intangibles, net of accruals
—

 
(14,479
)
 
(209,540
)
 
—

 
(224,019
)
Intercompany note receivable
—

 
88,000

 
—

 
(88,000
)
 
—

Net sales proceeds from wholly-owned properties
—

 
36,572

 
538,655

 
—

 
575,227

Note receivable issuance
—

 
—

 
(3,200
)
 
—

 
(3,200
)
Note receivable payment
—

 
—

 
3,200

 
—

 
3,200

Deferred lease costs paid
—

 
(3,090
)
 
(24,340
)
 
—

 
(27,430
)
Distributions from subsidiaries
349,135

 
5,405

 
—

 
(354,540
)
 
—

Net cash provided by/(used in) investing activities
349,135

 
112,408

 
304,775

 
(442,540
)
 
323,778

Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Debt issuance costs paid
—

 
(1,040
)
 
—

 
—

 
(1,040
)
Proceeds from debt
—

 
977,062

 
—

 
—

 
977,062

Repayments of debt
—

 
(1,019,000
)
 
(1,455
)
 
—

 
(1,020,455
)
Intercompany note payable
—

 
—

 
(88,000
)
 
88,000

 
—

Costs of issuance of common stock
(85
)
 
—

 
—

 
—

 
(85
)
Value of shares withheld to pay tax obligations related to employee stock compensation
(2,219
)
 
—

 
—

 
—

 
(2,219
)
Repurchases of common stock as part of announced plan
(298,538
)
 
—

 
—

 
—

 
(298,538
)
Distributions
(184,048
)
 
(214,596
)
 
(449,212
)
 
663,763

 
(184,093
)
Net cash provided by/(used in) financing activities
(484,890
)
 
(257,574
)
 
(538,667
)
 
751,763

 
(529,368
)
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows
—

 
(3,873
)
 
1,670

 
(518
)
 
(2,721
)
Cash, cash equivalents, and restricted cash and escrows, beginning of year
150

 
3,907

 
4,698

 
—

 
8,755

Cash, cash equivalents, and restricted cash and escrows, end of year
$
150

 
$
34

 
$
6,368

 
$
(518
)
 
$
6,034






Condensed Consolidated Statements of Cash Flows
For the year ended December 31, 2017
(in thousands)
Piedmont
(Parent)
(Guarantor)
 
Piedmont OP
(the Issuer)
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net Cash Provided By/(Used In) Operating Activities
$
5,497

 
$
(18,989
)
 
$
256,297

 
$
—

 
$
242,805

 
 
 
 
 
 
 
 
 
 
Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Investment in real estate assets, consolidated joint venture, and real estate related intangibles, net of accruals
—

 
(1,614
)
 
(113,479
)
 
—

 
(115,093
)
Intercompany note receivable
—

 
100

 
(48,710
)
 
48,610

 
—

Net sales proceeds from wholly-owned properties
—

 
23,028

 
352,490

 
—

 
375,518

Net sales proceeds received from unconsolidated joint ventures
—

 
12,334

 
—

 
—

 
12,334

Investments in unconsolidated joint ventures
—

 
(1,162
)
 
—

 
—

 
(1,162
)
Deferred lease costs paid
—

 
(4,081
)
 
(26,904
)
 
—

 
(30,985
)
Net cash provided by/(used in) investing activities
—

 
28,605

 
163,397

 
48,610

 
240,612

Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Debt issuance costs paid
—

 
(132
)
 
—

 
—

 
(132
)
Proceeds from debt
—

 
180,000

 
—

 
—

 
180,000

Repayments of debt
—

 
(335,000
)
 
(141,401
)
 
—

 
(476,401
)
Intercompany note payable
—

 
(14,289
)
 
62,899

 
(48,610
)
 
—

Costs of issuance of common stock
(182
)
 
—

 
—

 
—

 
(182
)
Value of shares withheld to pay tax obligations related to employee stock compensation
(3,403
)
 
—

 
—

 
—

 
(3,403
)
Repurchases of common stock as part of announced plan
(60,474
)
 
—

 
—

 
—

 
(60,474
)
(Distributions to)/repayments from affiliates
180,791

 
160,019

 
(340,810
)
 
—

 
—

Dividends paid and discount on dividend reinvestments
(122,229
)
 
—

 
(45
)
 
—

 
(122,274
)
Net cash provided by/(used in) financing activities
(5,497
)
 
(9,402
)
 
(419,357
)
 
(48,610
)
 
(482,866
)
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows
—

 
214

 
337

 
—

 
551

Cash, cash equivalents, and restricted cash and escrows, beginning of year
150

 
3,693

 
4,361

 
—

 
8,204

Cash, cash equivalents, and restricted cash and escrows, end of year
$
150

 
$
3,907

 
$
4,698

 
$
—

 
$
8,755




Condensed Consolidated Statements of Cash Flows
For the year ended December 31, 2016
(in thousands)
Piedmont
(Parent)
(Guarantor)
 
Piedmont OP
(the Issuer)
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net Cash Provided/(Used In) by Operating Activities
$
5,214

 
$
(26,263
)
 
$
217,236

 
$
35,660

 
$
231,847

 
 
 
 
 
 
 
 
 
 
Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Investment in real estate assets, consolidated joint venture, and real estate related intangibles, net of accruals
—

 
(5,060
)
 
(454,836
)
 
—

 
(459,896
)
Intercompany note receivable
—

 
440

 
(71,900
)
 
71,460

 
—

Net sales proceeds from wholly-owned properties
—

 
200,220

 
165,698

 
—

 
365,918

Deferred lease costs paid
—

 
(2,758
)
 
(23,138
)
 
—

 
(25,896
)
Net cash provided by/(used in) investing activities
—

 
192,842

 
(384,176
)
 
71,460

 
(119,874
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Debt issuance costs paid
—

 
(264
)
 
—

 
—

 
(264
)
Proceeds from debt
—

 
695,000

 
—

 
—

 
695,000

Repayments of debt
—

 
(538,000
)
 
(168,875
)
 
—

 
(706,875
)
Intercompany note payable
—

 
(9,600
)
 
81,060

 
(71,460
)
 
—

Costs of issuance of common stock
(342
)
 
—

 
—

 
—

 
(342
)
Value of shares withheld to pay tax obligations related to employee stock compensation
(2,344
)
 
—

 
—

 
—

 
(2,344
)
Repurchases of common stock as part of announced plan
(7,943
)
 
—

 
—

 
—

 
(7,943
)
(Distributions to)/repayments from affiliates
97,016

 
(312,218
)
 
250,862

 
(35,660
)
 
—

Dividends paid and discount on dividend reinvestments
(91,601
)
 
—

 
(15
)
 
—

 
(91,616
)
Net cash provided by/(used in) financing activities
(5,214
)
 
(165,082
)
 
163,032

 
(107,120
)
 
(114,384
)
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows
—

 
1,497

 
(3,908
)
 
—

 
(2,411
)
Cash, cash equivalents, and restricted cash and escrows, beginning of year
150

 
2,196

 
8,269

 
—

 
10,615

Cash, cash equivalents, and restricted cash and escrows, end of year
$
150

 
$
3,693

 
$
4,361

 
$
—

 
$
8,204