Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

Note N - Segment Information

Parkway's primary business is the ownership and operation of office properties. The Company accounts for each office property or groups of related office properties as an individual operating segment.  Parkway has aggregated its individual operating segments into a single reporting segment due to the fact that the individual operating segments have similar operating and economic characteristics.

The Company believes that the individual operating segments exhibit similar economic characteristics such as being leased by the square foot, sharing the same primary operating expenses and ancillary revenue opportunities and being cyclical in the economic performance based on current supply and demand conditions.  The individual operating segments are also similar in that revenues are derived from the leasing of office space to customers and each office property is managed and operated consistently in accordance with Parkway's standard operating procedures.  The range and type of customer uses of our properties is similar throughout our portfolio regardless of location or class of building and the needs and priorities of our customers do not vary from building to building.  Therefore, Parkway's management responsibilities do not vary from location to location based on the size of the building, geographic location or class.

The management of the Company evaluates the performance of the reportable office segment based on funds from operations attributable to common stockholders ("FFO").  Management believes that FFO is an appropriate measure of performance for equity REITs and computes this measure in accordance with the National Association of Real Estate Investment Trusts ("NAREIT") definition of FFO.  Funds from operations is defined by NAREIT as net income (computed in accordance with GAAP), reduced by preferred dividends, excluding gains or losses on depreciable real estate and extraordinary items under GAAP, plus depreciation and amortization, and after adjustments to derive the Company's pro rata share of FFO of consolidated and unconsolidated joint ventures.  Further, the Company does not adjust FFO to eliminate the effects of non-recurring charges.  On October 31, 2011, NAREIT issued updated guidance on reporting FFO such that impairment losses on depreciable real estate should be excluded from the computation of FFO for current and prior periods.  The Company believes that FFO is a meaningful supplemental measure of its operating performance because historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization expenses.  However, since real estate values have historically risen or fallen with market and other conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient.  Thus, NAREIT created FFO as a supplemental measure of operating performance for real estate investment trusts that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP.  The Company believes that the use of FFO, combined with the required GAAP presentations, has been beneficial in improving the understanding of operating results of real estate investment trusts among the investing public and making comparisons of operating results among such companies more meaningful.  FFO as reported by Parkway may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition.  Funds from operations do not represent cash generated from operating activities in accordance with accounting principles generally accepted in the United States and is not an indication of cash available to fund cash needs.  Funds from operations should not be considered an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flow as a measure of liquidity.

The following is a reconciliation of FFO and net income (loss) attributable to common stockholders for office properties and total consolidated entities for the years ending December 31, 2011, 2010 and 2009.  Amounts presented as "Unallocated and Other" represent primarily income and expense associated with providing management services, corporate general and administration expense, interest expense on unsecured credit facility and preferred dividends.

	At or for the year ended December 31, 2011
	Office		Unallocated
	Properties		and Other		Consolidated
	(in thousands)
Income from office and parking properties (a)	$	149,000	$	-	$	149,000
Management company income	-		16,896		16,896
Property operating expenses (b)	(61,637)		-		(61,637)
Depreciation and amortization	(57,002)		-		(57,002)
Management company expenses	-		(13,337)		(13,337)
General and administrative expenses	-		(18,805)		(18,805)
Other income	-		938		938
Equity in earnings of unconsolidated joint ventures	57		-		57
Gain on sale of real estate	743		-		743
Impairment loss on mortgage loan receivable	-		(9,235)		(9,235)
Change in fair value of contingent consideration	-		13,000		13,000
Interest expense (c)	(24,888)		(6,724)		(31,612)
Adjustment for noncontrolling interest - real estate partnerships	85,100		-		85,100
Loss from discontinued operations	(195,139)		-		(195,139)
Gain on sale of real estate from discontinued operations	17,825		-		17,825
Impairment loss on real estate	(6,420)		-		(6,420)
Acquisition costs	(1,225)		(15,994)		(17,219)
Income tax	-		(56)		(56)
Dividends on preferred stock	-		(10,052)		(10,052)
Net loss available to common stockholders	(93,586)		(43,369)		(136,955)
Depreciation and amortization	57,002		-		57,002
Depreciation and amortization - discontinued operations	54,148		-		54,148
Depreciation and amortization - noncontrolling interest - real estate    partnerships	(36,091)		-		(36,091)
Adjustment for depreciation and amortization - unconsolidated joint ventures	231		-		231
Adjustment for noncontrolling interest - unit holders	(5)		-		(5)
Impairment loss on real estate	119,137		-		119,137
Gain on sale of real estate (Parkway's share)	(10,510)		-		(10,510)
Funds from operations available to common stockholders	$	90,326	$	(43,369)	$	46,957
Total assets	$	1,532,803	$	103,508	$	1,636,311
Office and parking properties	$	921,937	$	-	$	921,937
Assets held for sale	$	382,789	$	-	$	382,789
Capital expenditures (d)	$	58,758	$	-	$	58,758
(a)      Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
(b)      Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses.
(c)      Interest expense for office properties represents interest expense on property secured mortgage debt.  It does not include interest expense on the Company's unsecured credit facility, which is included in "Unallocated and Other".
(d)      Capital expenditures include building improvements, tenant improvements and leasing costs.

	At or for the year ended December 31, 2010
	Office		Unallocated
	Properties		and Other		Consolidated
	(in thousands)
Income from office and parking properties (a)	$	95,190	$	-	$	95,190
Management company income	-		1,652		1,652
Property operating expenses (b)	(41,268)		-		(41,268)
Depreciation and amortization	(28,961)		-		(28,961)
Management company expenses	-		(2,756)		(2,756)
General and administrative expenses	-		(15,318)		(15,318)
Acquisition costs	(846)		-		(846)
Other income	-		1,487		1,487
Equity in earnings of unconsolidated joint ventures	326		-		326
Gain on involuntary conversion	40		-		40
Interest expense (c)	(14,255)		(6,016)		(20,271)
Adjustment for noncontrolling interest - real estate partnerships	10,789		-		10,789
Loss from discontinued operations	(11,198)		-		(11,198)
Gain on sale of real estate from discontinued operations	8,518		-		8,518
Income tax expense	-		(2)		(2)
Dividends on preferred stock	-		(6,325)		(6,325)
Net income (loss) available to common stockholders	18,335		(27,278)		(8,943)
Depreciation and amortization	28,961		-		28,961
Depreciation and amortization - discontinued operations	63,350		-		63,350
Depreciation and amortization - noncontrolling interest - real estate partnerships	(17,668)		-		(17,668)
Adjustment for depreciation and amortization - unconsolidated joint ventures	342		-		342
Impairment loss on real estate	4,120		-		4,120
Gain on sale of real estate from discontinued operations	(8,518)		-		(8,518)
Funds from operations available to common stockholders	$	88,922	$	(27,278)	$	61,644
Total assets	$	1,590,545	$	13,137	$	1,603,682
Office and parking properties	$	1,389,767	$	-	$	1,389,767
Capital expenditures (d)	$	49,760	$	-	$	49,760
(a)  Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
(b)  Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses.
(c)  Interest expense for office properties represents interest expense on property secured mortgage debt.  It does not include interest expense on the Company's unsecured credit facility, which is included in "Unallocated and Other".
(d)  Capital expenditures include building improvements, tenant improvements and leasing costs.

	At or for the year ended December 31, 2009
	Office		Unallocated
	Properties		and Other		Consolidated
	(in thousands)
Income from office and parking properties (a)	$	96,720	$	-	$	96,720
Management company income	-		1,870		1,870
Property operating expenses (b)	(42,917)		-		(42,917)
Depreciation and amortization	(28,295)		-		(28,295)
Management company expenses	-		(1,987)		(1,987)
General and administrative expenses	-		(14,157)		(14,157)
Acquisition costs	(148)		-		(148)
Other income	-		1,597		1,597
Equity in earnings of unconsolidated joint ventures	445		-		445
Gain on involuntary conversion	823		-		823
Gain on sale of real estate	470		-		470
Interest expense (c)	(12,588)		(6,570)		(19,158)
Adjustment for noncontrolling interest - real estate partnerships	10,562		-		10,562
Loss from discontinued operations	(8,608)		-		(8,608)
Impairment loss on real estate	(8,817)		-		(8,817)
Income tax expense	-		(3)		(3)
Dividends on preferred stock	-		(4,800)		(4,800)
Net income (loss) available to common stockholders	7,647		(24,050)		(16,403)
Depreciation and amortization	28,295		-		28,295
Depreciation and amortization - discontinued operations	64,431		-		64,431
Depreciation and amortization - noncontrolling interest - real estate partnerships	(20,138)		-		(20,138)
Adjustment for depreciation and amortization - unconsolidated joint ventures	848		-		848
Impairment loss on real estate	8,817		-		8,817
Gain on sale of real estate	(470)		-		(470)
Funds from operations available to common stockholders	$	89,430	$	(24,050)	$	65,380
Total assets	$	1,597,806	$	14,340	$	1,612,146
Office and parking properties	$	1,401,890	$	-	$	1,401,890
Capital expenditures (d)	$	44,768	$	-	$	44,768
(a)  Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
(b)  Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses.
(c)  Interest expense for office properties represents interest expense on property secured mortgage debt.  It does not include interest expense on the Company's unsecured credit facility, which is included in "Unallocated and Other".
(d)  Capital expenditures include building improvements, tenant improvements and leasing costs.