COPT Defense Properties Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Information by Business Segment (Tables)

Information by Business Segment (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of segment financial information for real estate operations

The table below reports segment financial information for our reportable segments (in thousands). We measure the performance of our segments through the measure we define as NOI from real estate operations, which is derived by subtracting property operating expenses from revenues from real estate operations.



	Operating Office Property Segments
	Baltimore/ Washington Corridor		Northern Virginia		San Antonio			Huntsville		Washington, DC - Capitol Riverfront		St. Mary’s & King George Counties		Greater Baltimore		Greater Philadelphia		Colorado Springs			Other		Operating Wholesale Data Center		Total
Year Ended December 31, 2014
Revenues from real estate operations	$	236,191	$	89,263	$	36,377		$	10,446	$	14,599	$	16,736	$	43,591	$	11,929	$	(1	)	$	10,150	$	10,430	$	479,711
Property operating expenses	81,132		31,532		20,562			3,066		7,308		5,268		17,778		4,386		12			1,469		7,286		179,799
NOI from real estate operations	$	155,059	$	57,731	$	15,815		$	7,380	$	7,291	$	11,468	$	25,813	$	7,543	$	(13	)	$	8,681	$	3,144	$	299,912
Additions to long-lived assets	$	24,174	$	17,447	$	(6	)	$	4,077	$	1,185	$	8,825	$	7,925	$	952	$	—		$	—	$	22	$	64,601
Transfers from non-operating properties	$	56,699	$	43,154	$	—		$	21,014	$	—	$	—	$	3,550	$	16,344	$	30		$	—	$	1,108	$	141,899
Segment assets at December 31, 2014	$	1,277,600	$	642,429	$	116,252		$	97,209	$	95,195	$	100,777	$	274,091	$	106,931	$	—		$	77,834	$	163,177	$	2,951,495

Year Ended December 31, 2013
Revenues from real estate operations	$	237,869	$	92,010	$	33,060		$	5,050	$	16,863	$	16,568	$	42,653	$	11,924	$	25,290		$	10,075	$	7,271	$	498,633
Property operating expenses	80,554		31,973		17,631			1,282		7,844		5,028		16,583		3,431		9,002			1,016		6,360		180,704
NOI from real estate operations	$	157,315	$	60,037	$	15,429		$	3,768	$	9,019	$	11,540	$	26,070	$	8,493	$	16,288		$	9,059	$	911	$	317,929
Additions to long-lived assets	$	28,087	$	13,090	$	335		$	3,563	$	2,604	$	2,341	$	2,913	$	406	$	2,940		$	—	$	598	$	56,877
Transfers from non-operating properties	$	50,105	$	61,434	$	—		$	48,799	$	—	$	14	$	360	$	28,034	$	5,438		$	—	$	70,106	$	264,290
Segment assets at December 31, 2013	$	1,243,099	$	616,082	$	118,299		$	77,773	$	98,962	$	96,143	$	303,823	$	104,657	$	—		$	80,002	$	166,790	$	2,905,630

Year Ended December 31, 2012
Revenues from real estate operations	$	238,488	$	79,574	$	32,018		$	3,867	$	16,697	$	16,392	$	52,616	$	9,698	$	24,987		$	12,116	$	6,647	$	493,100
Property operating expenses	83,050		29,103		16,499			689		7,555		4,745		19,917		2,562		9,231			2,569		4,815		180,735
NOI from real estate operations	$	155,438	$	50,471	$	15,519		$	3,178	$	9,142	$	11,647	$	32,699	$	7,136	$	15,756		$	9,547	$	1,832	$	312,365
Additions to long-lived assets	$	25,921	$	65,157	$	280		$	26	$	317	$	1,844	$	9,690	$	286	$	2,929		$	152	$	199	$	106,801
Transfers from non-operating properties	$	65,108	$	44,250	$	468		$	—	$	—	$	289	$	37,558	$	10,626	$	4,295		$	394	$	58,009	$	220,997
Segment assets at December 31, 2012	$	1,267,357	$	569,860	$	119,369		$	28,730	$	104,544	$	98,027	$	320,548	$	78,798	$	175,830		$	82,090	$	100,777	$	2,945,930

Schedule of reconciliation of segment revenues to total revenues

The following table reconciles our segment revenues to total revenues as reported on our consolidated statements of operations (in thousands):



	For the Years Ended December 31,
	2014		2013			2012
Segment revenues from real estate operations	$	479,711	$	498,633		$	493,100
Construction contract and other service revenues	106,748		62,363			73,836
Less: Revenues from discontinued operations (Note 20)	14		(37,636		)	(58,801		)
Total revenues	$	586,473	$	523,360		$	508,135

Schedule of reconciliation of segment property operating expenses to total property operating expenses

The following table reconciles our segment property operating expenses to property operating expenses as reported on our consolidated statements of operations (in thousands):



	For the Years Ended December 31,
	2014		2013			2012
Segment property operating expenses	$	179,799	$	180,704		$	180,735
Less: Property operating expenses from discontinued operations (Note 20)	135		(13,505		)	(21,529		)
Total property operating expenses	$	179,934	$	167,199		$	159,206

Schedule of computation of net operating income from service operations

The table below sets forth the computation of our NOI from service operations (in thousands):



	For the Years Ended December 31,
	2014			2013			2012
Construction contract and other service revenues	$	106,748		$	62,363		$	73,836
Construction contract and other service expenses	(100,058		)	(58,875		)	(70,576		)
NOI from service operations	$	6,690		$	3,488		$	3,260

Schedule of reconciliation of net operating income from real estate operations and service operations to (loss) income from continuing operations

The following table reconciles our NOI from real estate operations for reportable segments and NOI from service operations to income from continuing operations as reported on our consolidated statements of operations (in thousands):



	For the Years Ended December 31,
	2014			2013			2012
NOI from real estate operations	$	299,912		$	317,929		$	312,365
NOI from service operations	6,690			3,488			3,260
Interest and other income	4,923			3,834			7,172
Equity in income (loss) of unconsolidated entities	229			2,110			(546		)
Income tax expense	(310		)	(1,978		)	(381		)
Other adjustments:	—
Depreciation and other amortization associated with real estate operations	(136,086		)	(113,214		)	(107,998		)
Impairment losses	(1,416		)	(5,857		)	(43,678		)
General, administrative and leasing expenses	(31,794		)	(30,869		)	(31,900		)
Business development expenses and land carry costs	(5,573		)	(5,436		)	(5,711		)
Interest expense on continuing operations	(92,393		)	(82,010		)	(86,401		)
NOI from discontinued operations	(121		)	(24,131		)	(37,272		)
Loss on early extinguishment of debt	(9,552		)	(27,030		)	(943		)
COPT consolidated income from continuing operations	$	34,509		$	36,836		$	7,967

Schedule of reconciliation of segment assets to total assets

The following table reconciles our segment assets to the consolidated total assets of COPT and subsidiaries (in thousands):



	As of December 31,
	2014		2013
Segment assets	$	2,951,495	$	2,905,630
Non-operating property assets	567,586		517,564
Other assets	151,176		206,758
Total COPT consolidated assets	$	3,670,257	$	3,629,952

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details