Business Segments (Tables)

9 Months Ended

Sep. 30, 2012

Segment Reporting, Reconciliation of Revenues, Operating Income and Assets

corporate income and expenses, are reflected as reconciling items. The following reconciliations are presented in thousands:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues:
Real estate operations (1):
Americas	$	315,958		$	270,675		$	919,748		$	607,209
Europe		104,954			113,285			327,545			196,209
Asia		59,479			50,599			168,688			107,575
Total Real Estate Operations segment		480,391			434,559			1,415,981			910,993
Private capital (2):
Americas		16,934			20,960			51,758			53,657
Europe		9,537			8,690			28,000			35,992
Asia		5,243			4,928			15,306			7,740
Total Private Capital segment		31,714			34,578			95,064			97,389
Total revenues	$	512,105		$	469,137		$	1,511,045		$	1,008,382
Net operating income:
Real estate operations (3):
Americas	$	218,188		$	186,244		$	637,931		$	420,394
Europe		79,173			85,094			246,841			140,096
Asia		46,630			39,301			131,388			82,183
Total Real Estate Operations segment		343,991			310,639			1,016,160			642,673
Private capital (2)(4):
Americas		7,581			10,666			23,326			29,380
Europe		5,762			5,340			16,564			25,183
Asia		2,641			1,492			7,488			3,598
Total Private Capital segment		15,984			17,498			47,378			58,161
Total segment net operating income		359,975			328,137			1,063,538			700,834
Reconciling items:
General and administrative expenses		(55,886	)		(53,341	)		(167,460	)		(144,364	)
Merger, acquisition and other integration expenses		(20,659	)		(12,683	)		(52,573	)		(121,723	)
Impairment of real estate properties		(9,778	)		—			(12,963	)		—
Depreciation and amortization		(194,622	)		(182,774	)		(560,563	)		(377,193	)
Earnings from unconsolidated entities, net		2,563			30,975			20,447			56,015
Interest expense		(123,161	)		(135,863	)		(384,489	)		(339,306	)
Impairment of other assets		—			—			(16,135	)		(103,823	)
Interest and other income, net		8,758			4,643			19,771			7,341
Gain on acquisitions and dispositions of investments in real estate, net (5)		12,677			8,396			280,968			114,650
Foreign currency and derivative gains (losses), net		(5,908	)		52,525			(19,930	)		43,643
Gain (loss) on early extinguishment of debt, net		—			(298	)		4,919			(298	)
Total reconciling items		(386,016	)		(288,420	)		(888,008	)		(865,058	)
Earnings (loss) before income taxes	$	(26,041	)	$	39,717		$	175,530		$	(164,224	)

	September 30, 2012		December 31, 2011
Assets:
Real estate operations:
Americas	$	15,216,074	$	13,305,147
Europe		6,258,089		6,823,814
Asia		3,794,011		3,502,033
Total Real Estate Operations segment		25,268,174		23,630,994
Private capital (6):
Americas		24,750		43,394
Europe		60,891		61,946
Asia		7,418		9,368
Total Private Capital segment		93,059		114,708
Total segment assets		25,361,233		23,745,702
Reconciling items:
Investments in and advances to unconsolidated entities		2,242,075		2,857,755
Notes receivable backed by real estate		243,979		322,834
Assets held for sale		376,642		444,850
Cash and cash equivalents		158,188		176,072
Other assets		194,305		176,699
Total reconciling items		3,215,189		3,978,210
Total assets	$	28,576,422	$	27,723,912

(1) Includes rental income of our industrial properties and land subject to ground leases, as well as development management and other income.

(2) Includes revenues earned from managing our unconsolidated entities and certain third parties.

(3) Includes rental income less rental expenses of our industrial properties and land subject to ground leases, as well as development management and other income less related expenses.

(4) Amounts are reduced by the direct costs we incur to manage the unconsolidated entities and certain third parties that are presented as Private Capital Expenses in our Consolidated Statements of Operations.

(5) Included in 2012 is a $273.0 million gain on acquisition of Prologis California in February 2012. See Note 2 for further information on this transaction.

(6) Represents management contracts recorded in connection with business combinations and goodwill associated with the Private Capital segment.