Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting

16. SEGMENT REPORTING

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We operate in four business segments: the acquisition, redevelopment, ownership and management of retail real estate, office real estate, multifamily real estate and mixed-use real estate. The products for our retail segment primarily include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products of our mixed-use segment include rental of retail space and other tenant services, including tenant reimbursements, parking and storage space rental and operation of a 369-room all-suite hotel.

Asset information by segment is not reported because we do not use this measure to assess performance and make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, interest expense, depreciation and amortization expense and other income and expense are not included in segment profit as our internal reporting addresses these items on a corporate level.

Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit in the same manner. We consider segment profit to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our properties.

The following table represents operating activity within our reportable segments (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Total Retail
Property revenue	$	22,077		$	19,181		$	43,429		$	38,242
Property expense		(6,007	)		(5,035	)		(11,452	)		(10,000	)
Segment profit		16,070			14,146			31,977			28,242
Total Office
Property revenue		15,348			6,585			29,764			12,886
Property expense		(5,525	)		(1,717	)		(9,582	)		(3,612	)
Segment profit		9,823			4,868			20,182			9,274
Total Multifamily
Property revenue		3,492			3,521			6,785			7,091
Property expense		(1,426	)		(1,110	)		(2,587	)		(2,200	)
Segment profit		2,066			2,411			4,198			4,891
Total Mixed-Use
Property revenue		11,362			—			20,337			—
Property expense		(7,231	)		—			(13,084	)		—
Segment profit		4,131			—			7,253			—
Total segments' profit	$	32,090		$	21,425		$	63,610		$	42,407

The following table is a reconciliation of segment profit to net income attributable to stockholders (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Total segments' profit	$	32,090		$	21,425		$	63,610		$	42,407
General and administrative		(3,825	)		(1,821	)		(7,064	)		(3,408	)
Depreciation and amortization		(14,277	)		(7,509	)		(26,767	)		(14,739	)
Interest expense		(14,063	)		(10,624	)		(27,142	)		(21,278	)
Early extinguishment of debt		—			—			(25,867	)		—
Loan transfer and consent fees		—			—			(9,019	)		—
Gain on acquisition		—			4,297			46,371			4,297
Other income (expense), net		530			71			(71	)		(916	)
Net income		455			5,839			14,051			6,363
Net income attributable to restricted shares		(132	)		—			(218	)		—
Net loss attributable to Predecessor's noncontrolling interests in consolidated real estate entities		—			469			2,458			899
Net income attributable to Predecessor's controlled owners equity		—			(6,308	)		(16,995	)		(7,262	)
Net (income) loss attributable to unitholders in the Operating Partnership		(104	)		—			225			—
Net income (loss) attributable to American Assets Trust, Inc. stockholders	$	219		$	—		$	(479	)	$	—