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Guarantor and Non-Guarantor Financial Information

12 Months Ended

Dec. 31, 2019

Guarantor and Non-Guarantor Financial Information [Abstract]

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, 2019
(in thousands)	Piedmont (Parent) (Guarantor)		Piedmont OP (the Issuer)		Non-Guarantors		Eliminations		Consolidated
Assets:
Real estate assets, at cost:
Land	$	—	$	36,094	$	470,295	$	—	$	506,389
Buildings and improvements, less accumulated depreciation	—		177,798		2,147,724		(300)		2,325,222
Intangible lease assets, less accumulated amortization	—		—		80,979		—		80,979
Construction in progress	—		2,412		27,508		—		29,920

Total real estate assets	—		216,304		2,726,506		(300)		2,942,510

Cash and cash equivalents	150		9,674		3,721		—		13,545
Tenant and straight-line receivables, net	—		16,450		142,894		—		159,344
Investment in subsidiaries	1,845,797		2,810,875		161		(4,656,833)		—
Notes receivable	—		810		144,500		(145,310)		—
Prepaid expenses, restricted cash, escrows, interest rate swaps, and other assets	—		6,180		21,112		(24)		27,268
Goodwill	—		98,918		—		—		98,918


Deferred lease costs, net	—		16,249		258,923		—		275,172

Total assets	$	1,845,947	$	3,175,460	$	3,297,817	$	(4,802,467)	$	3,516,757
Liabilities:
Debt, net	$	—	$	1,292,334	$	334,380	$	(145,310)	$	1,481,404
Accounts payable, accrued expenses, dividends payable, interest rate swaps and accrued capital expenditures	26,973		21,069		101,026		(24)		149,044
Deferred income	—		3,505		31,104		—		34,609
Intangible lease liabilities, net	—		—		32,726		—		32,726


Total liabilities	26,973		1,316,908		499,236		(145,334)		1,697,783
Equity:
Total stockholders’ equity	1,818,974		1,858,552		2,798,581		(4,657,133)		1,818,974
Total liabilities and stockholders’ equity	$	1,845,947	$	3,175,460	$	3,297,817	$	(4,802,467)	$	3,516,757


Condensed Consolidated Balance Sheets
As of December 31, 2018
(in thousands)	Piedmont (Parent) (Guarantor)		Piedmont OP (the Issuer)		Non-Guarantors		Eliminations		Consolidated
Assets:
Real estate assets, at cost:
Land	$	—	$	36,094	$	434,338	$	—	$	470,432
Buildings and improvements, less accumulated depreciation	—		176,927		1,944,943		(300)		2,121,570
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	—		—		331,068		—		331,068
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 rent receivables	—		16,143		131,419		—		147,562

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 swaps, and other assets	42		5,682		21,653		(24)		27,353
Goodwill	—		98,918		—		—		98,918


Deferred lease costs, net	—		15,158		221,040		—		236,198
Other assets held for sale, net	—		—		61,233		—		61,233
Total assets	$	1,744,314	$	3,059,777	$	3,383,115	$	(4,594,777)	$	3,592,429
Liabilities:
Debt, net	$	—	$	1,495,065	$	335,717	$	(145,310)	$	1,685,472
Accounts payable, accrued expenses, dividends payable, interest rate swaps, and accrued capital expenditures	32,174		15,382		74,536		(542)		121,550

Deferred income	—		2,274		26,505		—		28,779
Intangible lease liabilities, net	—		—		35,708		—		35,708

Other liabilities held for sale	—		—		8,780		—		8,780
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 Statements of Income
For the year ended December 31, 2019
(in thousands)	Piedmont (Parent) (Guarantor)		Piedmont OP (the Issuer)		Non-Guarantors		Eliminations		Consolidated
Revenues:


Rental and tenant reimbursement revenue	$	—	$	46,669	$	468,070	$	(2,834)	$	511,905
Property management fee revenue	—		—		19,362		(15,964)		3,398
Other property related income	—		158		17,717		—		17,875
	—		46,827		505,149		(18,798)		533,178
Expenses:
Property operating costs	—		21,314		208,864		(18,798)		211,380
Depreciation	—		12,171		93,844		—		106,015
Amortization	—		1,940		74,726		—		76,666
Impairment loss on real estate assets	—		7,000		1,953		—		8,953
General and administrative	218		6,716		30,961		—		37,895
	218		49,141		410,348		(18,798)		440,909

Other income (expense):
Interest expense	—		(54,721)		(14,408)		7,535		(61,594)
Other income/(expense)	—		188		8,918		(7,535)		1,571




Gain on sale of real estate assets	—		113		196,897		—		197,010
	—		(54,420)		191,407		—		136,987
Income/(loss) before consolidated subsidiaries	(218)		(56,734)		286,208		—		229,256
Income from subsidiaries	229,479		255,325		—		(484,804)		—
Net income	229,261		198,591		286,208		(484,804)		229,256
Net loss applicable to noncontrolling interest	—		—		5		—		5
Net income applicable to Piedmont	$	229,261	$	198,591	$	286,213	$	(484,804)	$	229,261


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 and tenant reimbursement revenue	$	—	$	44,710	$	462,173	$	(2,473)	$	504,410
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

General and administrative	289		6,576		22,848		—		29,713
	289		39,663		388,491		(18,141)		410,302

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 and tenant reimbursement revenue	$	—	$	54,109	$	501,420	$	(2,265)	$	553,264
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	—		87		46,374		—		46,461
General and administrative	347		6,443		22,529		—		29,319
	347		45,379		465,885		(18,735)		492,876

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	—		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


Consolidating Statements of Comprehensive Income
For the Year Ended December 31, 2019
(in thousands)	Piedmont (Parent) (Guarantor)		Piedmont OP (the Issuer)		Non-Guarantors		Eliminations		Consolidated
Net income	$	229,261	$	198,591	$	286,213	$	(484,804)	$	229,261
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges	(5,659)		(5,659)		—		5,659		(5,659)
Plus: Reclassification of net (gain)/loss included in net income	(1,836)		(1,836)		—		1,836		(1,836)
Other comprehensive income	(7,495)		(7,495)		—		7,495		(7,495)

Comprehensive income	$	221,766	$	191,096	$	286,213	$	(477,309)	$	221,766


Consolidating Statements of Comprehensive Income
For the Year Ended December 31, 2018
(in thousands)	Piedmont (Parent) (Guarantor)		Piedmont OP (the Issuer)		Non-Guarantors		Eliminations		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, 2019
(in thousands)	Piedmont (Parent) (Guarantor)		Piedmont OP (the Issuer)		Non-Guarantors		Eliminations		Consolidated
Net Cash Provided By Operating Activities	$	236,214	$	220,068	$	236,477	$	(484,275)	$	208,484

Cash Flows from Investing Activities:
Investment in real estate assets and intangibles	—		(16,020)		(413,733)		—		(429,753)



Net sales proceeds from wholly-owned properties	—		113		589,654		—		589,767




Deferred lease costs paid	—		(3,220)		(22,419)		—		(25,639)
Distributions from subsidiaries	(108,918)		19,287		—		89,631		—
Net cash provided by/(used in) investing activities	(108,918)		160		153,502		89,631		134,375
Cash Flows from Financing Activities:
Debt issuance costs paid	—		(151)		—		—		(151)
Proceeds from debt	—		592,000		—		—		592,000
Repayments of debt	—		(797,000)		(1,019)		—		(798,019)


Costs of issuance of common stock	(710)		—		—		—		(710)
Value of shares withheld to pay tax obligations related to employee stock compensation	(3,295)		—		—		—		(3,295)
Repurchases of common stock as part of announced plan	(16,899)		—		—		—		(16,899)

Distributions	(106,392)		(5,420)		(389,783)		395,162		(106,433)
Net cash used in financing activities	(127,296)		(210,571)		(390,802)		395,162		(333,507)
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows	—		9,657		(823)		518		9,352
Cash, cash equivalents, and restricted cash and escrows, beginning of year	150		34		6,368		(518)		6,034
Cash, cash equivalents, and restricted cash and escrows, end of year	$	150	$	9,691	$	5,545	$	—	$	15,386


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 Operating Activities	$	135,755	$	141,293	$	235,562	$	(309,741)	$	202,869

Cash Flows from Investing Activities:
Investment in real estate assets and intangibles	—		(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 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 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/(Used In) by 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	—		(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 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 used in financing activities	(5,497)		(9,402)		(419,357)		(48,610)		(482,866)
Net increase 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