Other Matters

12 Months Ended

Dec. 31, 2011

Note L - Other Matters

Supplemental Profit and Loss Information

Included in operating expenses are taxes, principally property taxes, of $15.8 million, $10.6 million and $11.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Supplemental Cash Flow Information and Schedule of Non-Cash Investing and Financing Activity

	Year Ended December 31
	2011		2010		2009
	(In thousands)
Supplemental cash flow information:
Interest paid, net of amount capitalized	$	60,123	$	53,352	$	53,728
Cash paid (refunded) for income taxes	705		117		(7)
Supplemental schedule of non-cash investing
and financing activity:
Mortgage notes payable transferred
to purchaser	(215,285)		(8,666)		-
Mortgage note payable and interest payable transferred in deed in lieu of foreclosure	(8,601)		-		-
Mortgage loan issued to purchaser	-		(1,500)		-
Contingent consideration related to the
contribution of the Management Company	18,000		-		-
Restricted shares and deferred incentive share
units issued	1,110		1,949		3,030
Mortgage loan assumed in purchase	87,225		-		-
Shares issued in lieu of Directors' fees	319		285		58

Rents Receivable and Other Assets

	December 31
	2011		2010
	(In thousands)

Rents and fees receivable	$	5,001	$	4,913
Allowance for doubtful accounts	(1,812)		(2,810)
Straight-line rent receivable	19,183		35,037
Other receivables	14,905		5,507
Lease costs (net of accumulated amortization of
$21,087 and $42,497, respectively)	41,518		46,378
Loan costs (net of accumulated amortization of
$2,688 and $5,478, respectively)	5,160		3,815
Escrow and other deposits	16,975		27,475
Prepaid items	4,581		7,486
Investment in other assets	3,500		-
Other assets	416		4,729
	$	109,427	$	132,530

Intangible Assets

The following table reflects the portion of the purchase price of office properties allocated to intangible assets, as discussed in "Note A". The portion of purchase price allocated to below market lease value and the related accumulated amortization is reflected in the Schedule of Accounts Payable and Other Liabilities within this note.

	December 31
	2011		2010
	(In thousands)

Lease in place value	$	65,213	$	77,269
Accumulated amortization	(20,380)		(39,895)
Above market lease value	29,225		29,361
Accumulated amortization	(4,603)		(16,106)
Goodwill-management company	26,173		-
	$	95,628	$	50,629

Accounts Payable and Other Liabilities

	December 31
	2011		2010
	(In thousands)
Office property payables:
Accrued expenses and accounts payable	$	14,240	$	24,250
Accrued property taxes	6,465		27,946
Prepaid rents	8,393		12,070
Deferred revenues	447		5,202
Security deposits	3,515		4,616
Below market lease value	9,009		22,639
Accumulated amortization - below market
lease value	(3,966)		(16,306)
Capital lease obligations	57		3,760
Corporate payables	1,136		1,087
Contingent consideration	18,000		-
Deferred tax liability non-current	14,344		-
Deferred compensation plan liability	278		2,953
Dividends payable	2,711		2,187
Accrued payroll	1,985		2,344
Fair value of interest rate swaps	11,134		3,003
Interest payable	2,593		3,067
	$	90,341	$	98,818

Preferred Stock

In June 2003, the Company sold 2.4 million shares of 8.0% Series D Cumulative Redeemable Preferred Stock ("Series D Preferred") with net proceeds to the Company of approximately $58.0 million. On August 9, 2010, the Company issued an additional 1.97 million shares of its Series D Preferred stock at a price of $23.757 per share, equating to a yield of 8.5% (excluding accrued dividends). On May 18, 2011, the Company issued approximately 1.0 million additional shares of its Series D Preferred stock to an institutional investor at a price of $25.00 per share, equating to a yield of 8.0%, and the Company used the net proceeds of approximately $26.0 million to fund the combination with Eola and the Company's share of equity contributions to purchase Fund II office properties. At December 31, 2011, the Company had a total of 5.4 million shares of Series D Preferred stock outstanding, with a $25 liquidation value per share, and the shares are redeemable at the option of the Company at any time upon proper notice. The Series D Preferred stock has no stated maturity, sinking fund or mandatory redemption and is not convertible into any other securities of the Company.

The Company declared dividends of $2.00 per share for the Series D Preferred stock for each of the three years 2011, 2010 and 2009.

The Company's shares of Series D preferred stock are listed on the New York Stock Exchange and trade under the symbol "PKY PrD".