OTHER INCOME (EXPENSE)

12 Months Ended

Dec. 31, 2012

OTHER INCOME (EXPENSE)

16. OTHER INCOME (EXPENSE)

In 2012, 2011 and 2010, other expense included state franchise taxes of $625, $600 and $580, respectively. Franchise taxes are associated with the income-based taxes in Texas that became effective in 2007. In addition for 2012, other income (expense) included income of $1,554 related to the settlement of construction litigation at one of the Company’s apartment communities, income of $62 from the sale of a technology investment and income of $43 related to receivable recoveries. In 2011, other income (expense) primarily included a state income tax benefit of $470 relating to the true-up of a prior year tax provision, income of $475 related to the sale of a technology investment and income of $274 related to legal settlements and miscellaneous receivable recoveries. In 2010, other income (expense) also primarily included impairment losses related to certain corporate assets of $1,165 partially offset by expense reimbursements of $517 related to the settlement of a legal matter associated with a former ground lease, income of $168 related to the sale of a technology investment and adjustments to certain prior year loss accruals of $187.