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Segment Information | 6 Months Ended
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Jun. 30, 2016
Segment Reporting [Abstract] |
Segment Information | 13. Segment Information Below is a reconciliation of Net Income Attributable to Boston Properties, Inc. Common Shareholders to Net Operating Income and Net Income Attributable to Boston Properties Limited Partnership Common Unitholders to Net Operating Income for the three and six months ended June 30, 2016 and 2015. Boston Properties, Inc.
| Three months ended June 30, |  | Six months ended June 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
| (in thousands)
Net income attributable to Boston Properties, Inc. common shareholders | $ | 96,597 |  |  | $ | 79,460 |  |  | $ | 278,323 |  |  | $ | 250,694 |
Add: |  |  |  |  |  |  |
Preferred dividends | 2,589 |  |  | 2,618 |  |  | 5,207 |  |  | 5,207 |
Noncontrolling interest—common units of the Operating Partnership | 11,357 |  |  | 9,394 |  |  | 32,771 |  |  | 29,530 |
Noncontrolling interest—redeemable preferred units of the Operating Partnership | — |  |  | 3 |  |  | — |  |  | 6 |
Noncontrolling interests in property partnerships | 6,814 |  |  | 9,264 |  |  | 17,278 |  |  | 24,472 |
Interest expense | 105,003 |  |  | 108,534 |  |  | 210,312 |  |  | 217,291 |
Depreciation and amortization expense | 153,175 |  |  | 167,844 |  |  | 312,623 |  |  | 322,067 |
Transaction costs | 913 |  |  | 208 |  |  | 938 |  |  | 535 |
General and administrative expense | 25,418 |  |  | 22,284 |  |  | 54,771 |  |  | 51,075 |
Less: |  |  |  |  |  |  |
Gains on sales of real estate | — |  |  | — |  |  | 67,623 |  |  | 95,084 |
Gains (losses) from investments in securities | 478 |  |  | (24 | ) |  | 737 |  |  | 369 |
Interest and other income | 1,524 |  |  | 1,293 |  |  | 3,029 |  |  | 2,700 |
Income from unconsolidated joint ventures | 2,234 |  |  | 3,078 |  |  | 4,025 |  |  | 17,912 |
Development and management services income | 5,533 |  |  | 4,862 |  |  | 12,222 |  |  | 10,190 |
Net Operating Income | $ | 392,097 |  |  | $ | 390,400 |  |  | $ | 824,587 |  |  | $ | 774,622 |
Boston Properties Limited Partnership
| Three months ended June 30, |  | Six months ended June 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
| (in thousands)
Net income attributable to Boston Properties Limited Partnership common unitholders | 109,938 |  |  | 90,852 |  |  | 317,234 |  |  | 284,221 |
Add: |  |  |  |  |  |  |
Preferred distributions | 2,589 |  |  | 2,618 |  |  | 5,207 |  |  | 5,207 |
Noncontrolling interest—redeemable preferred units | — |  |  | 3 |  |  | — |  |  | 6 |
Noncontrolling interests in property partnerships | 6,814 |  |  | 9,264 |  |  | 17,278 |  |  | 24,472 |
Interest expense | 105,003 |  |  | 108,534 |  |  | 210,312 |  |  | 217,291 |
Depreciation and amortization expense | 151,191 |  |  | 165,846 |  |  | 308,652 |  |  | 318,070 |
Transaction costs | 913 |  |  | 208 |  |  | 938 |  |  | 535 |
General and administrative expense | 25,418 |  |  | 22,284 |  |  | 54,771 |  |  | 51,075 |
Less: |  |  |  |  |  |  |
Gains on sales of real estate | — |  |  | — |  |  | 69,792 |  |  | 95,084 |
Gains (losses) from investments in securities | 478 |  |  | (24 | ) |  | 737 |  |  | 369 |
Interest and other income | 1,524 |  |  | 1,293 |  |  | 3,029 |  |  | 2,700 |
Income from unconsolidated joint ventures | 2,234 |  |  | 3,078 |  |  | 4,025 |  |  | 17,912 |
Development and management services income | 5,533 |  |  | 4,862 |  |  | 12,222 |  |  | 10,190 |
Net Operating Income | $ | 392,097 |  |  | $ | 390,400 |  |  | $ | 824,587 |  |  | $ | 774,622 |
Net Operating Income is not a measure of operating results 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. All companies may not calculate Net Operating Income in the same manner. The Company considers Net Operating Income to be an appropriate supplemental performance measure to net income because it helps both investors and management to understand the core operations of the Company’s properties. The Company’s management also uses Net Operating Income to evaluate regional property level performance and to make decisions about resource allocations. Further, the Company believes Net Operating Income is useful to investors as a performance measure because, when compared across periods, Net Operating Income reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspectives not immediately apparent from net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders. Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Interest and other income, development and management services income, general and administrative expenses, transaction costs, interest expense, depreciation and amortization expense, gains (losses) from investments in securities, income from unconsolidated joint ventures, gains on sales of real estate, noncontrolling interests and preferred dividends/distributions are not included in Net Operating Income as internal reporting addresses these items on a corporate level. The Company’s segments are based on the Company’s method of internal reporting which classifies its operations by both geographic area and property type. The Company’s segments by geographic area are Boston, New York, San Francisco and Washington, DC. Segments by property type include: Office, Residential and Hotel. Beginning on January 1, 2016, the properties that were historically included in the Company’s Office/Technical segment are now included in the Office segment to align with its method of internal reporting, which shifted after the disposition of 415 Main Street in Cambridge, Massachusetts. As such, the amounts previously included in Office/Technical are now included in Office for all periods presented. Information by geographic area and property type (dollars in thousands): For the three months ended June 30, 2016:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 179,048 |  |  | $ | 243,957 |  |  | $ | 78,524 |  |  | $ | 99,588 |  |  | $ | 601,117 |
Residential | 1,180 |  |  | — |  |  | — |  |  | 2,908 |  |  | 4,088 |
Hotel | 12,808 |  |  | — |  |  | — |  |  | — |  |  | 12,808 |
Total | 193,036 |  |  | 243,957 |  |  | 78,524 |  |  | 102,496 |  |  | 618,013 |
% of Grand Totals | 31.24 | % |  | 39.47 | % |  | 12.71 | % |  | 16.58 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 68,754 |  |  | 88,749 |  |  | 25,470 |  |  | 33,359 |  |  | 216,332 |
Residential | 513 |  |  | — |  |  | — |  |  | 1,093 |  |  | 1,606 |
Hotel | 7,978 |  |  | — |  |  | — |  |  | — |  |  | 7,978 |
Total | 77,245 |  |  | 88,749 |  |  | 25,470 |  |  | 34,452 |  |  | 225,916 |
% of Grand Totals | 34.19 | % |  | 39.29 | % |  | 11.27 | % |  | 15.25 | % |  | 100.00 | %
Net operating income | $ | 115,791 |  |  | $ | 155,208 |  |  | $ | 53,054 |  |  | $ | 68,044 |  |  | $ | 392,097 |
% of Grand Totals | 29.53 | % |  | 39.59 | % |  | 13.53 | % |  | 17.35 | % |  | 100.00 | %
For the three months ended June 30, 2015:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 180,936 |  |  | $ | 246,432 |  |  | $ | 74,335 |  |  | $ | 94,442 |  |  | $ | 596,145 |
Residential | 1,131 |  |  | — |  |  | — |  |  | 2,680 |  |  | 3,811 |
Hotel | 13,403 |  |  | — |  |  | — |  |  | — |  |  | 13,403 |
Total | 195,470 |  |  | 246,432 |  |  | 74,335 |  |  | 97,122 |  |  | 613,359 |
% of Grand Totals | 31.87 | % |  | 40.18 | % |  | 12.12 | % |  | 15.83 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 69,653 |  |  | 85,661 |  |  | 24,415 |  |  | 33,204 |  |  | 212,933 |
Residential | 511 |  |  | — |  |  | — |  |  | 1,020 |  |  | 1,531 |
Hotel | 8,495 |  |  | — |  |  | — |  |  | — |  |  | 8,495 |
Total | 78,659 |  |  | 85,661 |  |  | 24,415 |  |  | 34,224 |  |  | 222,959 |
% of Grand Totals | 35.28 | % |  | 38.42 | % |  | 10.95 | % |  | 15.35 | % |  | 100.00 | %
Net operating income | $ | 116,811 |  |  | $ | 160,771 |  |  | $ | 49,920 |  |  | $ | 62,898 |  |  | $ | 390,400 |
% of Grand Totals | 29.92 | % |  | 41.18 | % |  | 12.79 | % |  | 16.11 | % |  | 100.00 | %
For the six months ended June 30, 2016:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 356,875 |  |  | $ | 535,815 |  |  | $ | 154,841 |  |  | $ | 200,076 |  |  | $ | 1,247,607 |
Residential | 2,351 |  |  | — |  |  | — |  |  | 5,786 |  |  | 8,137 |
Hotel | 21,565 |  |  | — |  |  | — |  |  | — |  |  | 21,565 |
Total | 380,791 |  |  | 535,815 |  |  | 154,841 |  |  | 205,862 |  |  | 1,277,309 |
% of Grand Totals | 29.81 | % |  | 41.95 | % |  | 12.12 | % |  | 16.12 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 139,441 |  |  | 177,547 |  |  | 49,375 |  |  | 67,541 |  |  | 433,904 |
Residential | 1,033 |  |  | — |  |  | — |  |  | 2,173 |  |  | 3,206 |
Hotel | 15,612 |  |  | — |  |  | — |  |  | — |  |  | 15,612 |
Total | 156,086 |  |  | 177,547 |  |  | 49,375 |  |  | 69,714 |  |  | 452,722 |
% of Grand Totals | 34.47 | % |  | 39.22 | % |  | 10.91 | % |  | 15.40 | % |  | 100.00 | %
Net operating income | $ | 224,705 |  |  | $ | 358,268 |  |  | $ | 105,466 |  |  | $ | 136,148 |  |  | $ | 824,587 |
% of Grand Totals | 27.25 | % |  | 43.45 | % |  | 12.79 | % |  | 16.51 | % |  | 100.00 | %
For the six months ended June 30, 2015:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 356,963 |  |  | $ | 499,530 |  |  | $ | 146,246 |  |  | $ | 190,615 |  |  | $ | 1,193,354 |
Residential | 2,309 |  |  | — |  |  | — |  |  | 8,356 |  |  | 10,665 |
Hotel | 22,488 |  |  | — |  |  | — |  |  | — |  |  | 22,488 |
Total | 381,760 |  |  | 499,530 |  |  | 146,246 |  |  | 198,971 |  |  | 1,226,507 |
% of Grand Totals | 31.13 | % |  | 40.73 | % |  | 11.92 | % |  | 16.22 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 146,104 |  |  | 170,722 |  |  | 47,236 |  |  | 66,675 |  |  | 430,737 |
Residential | 1,020 |  |  | — |  |  | — |  |  | 4,057 |  |  | 5,077 |
Hotel | 16,071 |  |  | — |  |  | — |  |  | — |  |  | 16,071 |
Total | 163,195 |  |  | 170,722 |  |  | 47,236 |  |  | 70,732 |  |  | 451,885 |
% of Grand Totals | 36.12 | % |  | 37.78 | % |  | 10.45 | % |  | 15.65 | % |  | 100.00 | %
Net operating income | $ | 218,565 |  |  | $ | 328,808 |  |  | $ | 99,010 |  |  | $ | 128,239 |  |  | $ | 774,622 |
% of Grand Totals | 28.22 | % |  | 42.45 | % |  | 12.78 | % |  | 16.55 | % |  | 100.00 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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