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Segment Information | 9 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
Segment Information | 12. Segment Information The following tables present reconciliations 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 nine months ended September 30, 2017 and 2016. Boston Properties, Inc.
| Three months ended September 30, |  | Nine months ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
| (in thousands)
Net income attributable to Boston Properties, Inc. common shareholders | $ | 117,337 |  |  | $ | 76,753 |  |  | $ | 348,086 |  |  | $ | 355,114 |
Add: |  |  |  |  |  |  |
Preferred dividends | 2,625 |  |  | 2,589 |  |  | 7,875 |  |  | 7,796 |
Noncontrolling interest—common units of Boston Properties Limited Partnership | 13,402 |  |  | 9,387 |  |  | 40,350 |  |  | 42,120 |
Noncontrolling interests in property partnerships | 14,340 |  |  | (17,225 | ) |  | 33,967 |  |  | 53 |
Interest expense | 92,032 |  |  | 104,641 |  |  | 282,709 |  |  | 314,953 |
Losses from interest rate contracts | — |  |  | 140 |  |  | — |  |  | 140 |
Depreciation and amortization expense | 152,164 |  |  | 203,748 |  |  | 463,288 |  |  | 516,371 |
Impairment loss | — |  |  | 1,783 |  |  | — |  |  | 1,783 |
Transaction costs | 239 |  |  | 249 |  |  | 572 |  |  | 1,187 |
General and administrative expense | 25,792 |  |  | 25,165 |  |  | 84,319 |  |  | 79,936 |
Less: |  |  |  |  |  |  |
Gains on sales of real estate | 2,891 |  |  | 12,983 |  |  | 6,791 |  |  | 80,606 |
Gains (losses) from early extinguishments of debt | — |  |  | (371 | ) |  | 14,354 |  |  | (371 | )
Gains from investments in securities | 944 |  |  | 976 |  |  | 2,716 |  |  | 1,713 |
Interest and other income | 1,329 |  |  | 3,628 |  |  | 3,447 |  |  | 6,657 |
Income from unconsolidated joint ventures | 843 |  |  | 1,464 |  |  | 7,035 |  |  | 5,489 |
Development and management services revenue | 10,811 |  |  | 6,364 |  |  | 24,648 |  |  | 18,586 |
Net Operating Income | $ | 401,113 |  |  | $ | 382,186 |  |  | $ | 1,202,175 |  |  | $ | 1,206,773 |
Boston Properties Limited Partnership
| Three months ended September 30, |  | Nine months ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
| (in thousands)
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 132,693 |  |  | $ | 91,306 |  |  | $ | 395,199 |  |  | $ | 408,540 |
Add: |  |  |  |  |  |  |
Preferred distributions | 2,625 |  |  | 2,589 |  |  | 7,875 |  |  | 7,796 |
Noncontrolling interests in property partnerships | 14,340 |  |  | (17,225 | ) |  | 33,967 |  |  | 53 |
Interest expense | 92,032 |  |  | 104,641 |  |  | 282,709 |  |  | 314,953 |
Losses from interest rate contracts | — |  |  | 140 |  |  | — |  |  | 140 |
Depreciation and amortization expense | 150,210 |  |  | 198,582 |  |  | 457,102 |  |  | 507,234 |
Impairment loss | — |  |  | 1,783 |  |  | — |  |  | 1,783 |
Transaction costs | 239 |  |  | 249 |  |  | 572 |  |  | 1,187 |
General and administrative expense | 25,792 |  |  | 25,165 |  |  | 84,319 |  |  | 79,936 |
Less: |  |  |  |  |  |  |
Gains on sales of real estate | 2,891 |  |  | 12,983 |  |  | 7,368 |  |  | 82,775 |
Gains (losses) from early extinguishments of debt | — |  |  | (371 | ) |  | 14,354 |  |  | (371 | )
Gains from investments in securities | 944 |  |  | 976 |  |  | 2,716 |  |  | 1,713 |
Interest and other income | 1,329 |  |  | 3,628 |  |  | 3,447 |  |  | 6,657 |
Income from unconsolidated joint ventures | 843 |  |  | 1,464 |  |  | 7,035 |  |  | 5,489 |
Development and management services revenue | 10,811 |  |  | 6,364 |  |  | 24,648 |  |  | 18,586 |
Net Operating Income | $ | 401,113 |  |  | $ | 382,186 |  |  | $ | 1,202,175 |  |  | $ | 1,206,773 |
Net operating income (“NOI”) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders, the most directly comparable GAAP financial measures, plus (1) preferred dividends/distributions, noncontrolling interests, interest expense, losses from interest rate contracts, depreciation and amortization expense, impairment loss, transaction costs and general and administrative expense less (2) gains on sales of real estate, gains (losses) from early extinguishments of debt, gains from investments in securities, interest and other income, income from unconsolidated joint ventures and development and management services revenue. The Company believes NOI is useful to investors as a performance measure and believes it provides useful information to investors regarding its financial condition and results of operations because, when compared across periods, it reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income attributable to Boston Properties, Inc. common shareholders or net income attributable to Boston Properties Limited Partnership common unitholders. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., for other investment activity). In addition, because of historical cost accounting and useful life estimates, depreciation and amortization may distort operating performance measures at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs or real estate companies that define NOI differently. 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. Preferred dividends/distributions, noncontrolling interests, gains on sales of real estate, interest expense, losses from interest rate contracts, gains (losses) from early extinguishments of debt, gains from investments in securities, interest and other income, income from unconsolidated joint ventures, depreciation and amortization expense, impairment loss, transaction costs, general and administrative expenses and development and management services revenue 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. Information by geographic area and property type (dollars in thousands): For the three months ended September 30, 2017:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 196,687 |  |  | $ | 242,071 |  |  | $ | 87,162 |  |  | $ | 103,622 |  |  | $ | 629,542 |
Residential | 1,228 |  |  | — |  |  | — |  |  | 3,067 |  |  | 4,295 |
Hotel | 13,064 |  |  | — |  |  | — |  |  | — |  |  | 13,064 |
Total | 210,979 |  |  | 242,071 |  |  | 87,162 |  |  | 106,689 |  |  | 646,901 |
% of Grand Totals | 32.61 | % |  | 37.43 | % |  | 13.47 | % |  | 16.49 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 76,086 |  |  | 95,775 |  |  | 26,792 |  |  | 37,111 |  |  | 235,764 |
Residential | 512 |  |  | — |  |  | — |  |  | 1,065 |  |  | 1,577 |
Hotel | 8,447 |  |  | — |  |  | — |  |  | — |  |  | 8,447 |
Total | 85,045 |  |  | 95,775 |  |  | 26,792 |  |  | 38,176 |  |  | 245,788 |
% of Grand Totals | 34.60 | % |  | 38.97 | % |  | 10.90 | % |  | 15.53 | % |  | 100.00 | %
Net operating income | $ | 125,934 |  |  | $ | 146,296 |  |  | $ | 60,370 |  |  | $ | 68,513 |  |  | $ | 401,113 |
% of Grand Totals | 31.40 | % |  | 36.47 | % |  | 15.05 | % |  | 17.08 | % |  | 100.00 | %
For the three months ended September 30, 2016:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 183,975 |  |  | $ | 237,262 |  |  | $ | 80,235 |  |  | $ | 100,666 |  |  | $ | 602,138 |
Residential | 1,227 |  |  | — |  |  | — |  |  | 3,145 |  |  | 4,372 |
Hotel | 12,354 |  |  | — |  |  | — |  |  | — |  |  | 12,354 |
Total | 197,556 |  |  | 237,262 |  |  | 80,235 |  |  | 103,811 |  |  | 618,864 |
% of Grand Totals | 31.92 | % |  | 38.34 | % |  | 12.96 | % |  | 16.78 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 71,254 |  |  | 95,073 |  |  | 26,037 |  |  | 33,973 |  |  | 226,337 |
Residential | 1,141 |  |  | — |  |  | — |  |  | 1,082 |  |  | 2,223 |
Hotel | 8,118 |  |  | — |  |  | — |  |  | — |  |  | 8,118 |
Total | 80,513 |  |  | 95,073 |  |  | 26,037 |  |  | 35,055 |  |  | 236,678 |
% of Grand Totals | 34.02 | % |  | 40.17 | % |  | 11.00 | % |  | 14.81 | % |  | 100.00 | %
Net operating income | $ | 117,043 |  |  | $ | 142,189 |  |  | $ | 54,198 |  |  | $ | 68,756 |  |  | $ | 382,186 |
% of Grand Totals | 30.62 | % |  | 37.21 | % |  | 14.18 | % |  | 17.99 | % |  | 100.00 | %
For the nine months ended September 30, 2017:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 573,883 |  |  | $ | 735,485 |  |  | $ | 257,286 |  |  | $ | 309,225 |  |  | $ | 1,875,879 |
Residential | 3,520 |  |  | — |  |  | — |  |  | 8,941 |  |  | 12,461 |
Hotel | 33,859 |  |  | — |  |  | — |  |  | — |  |  | 33,859 |
Total | 611,262 |  |  | 735,485 |  |  | 257,286 |  |  | 318,166 |  |  | 1,922,199 |
% of Grand Totals | 31.80 | % |  | 38.27 | % |  | 13.38 | % |  | 16.55 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 225,502 |  |  | 280,569 |  |  | 77,204 |  |  | 108,044 |  |  | 691,319 |
Residential | 1,552 |  |  | — |  |  | — |  |  | 3,211 |  |  | 4,763 |
Hotel | 23,942 |  |  | — |  |  | — |  |  | — |  |  | 23,942 |
Total | 250,996 |  |  | 280,569 |  |  | 77,204 |  |  | 111,255 |  |  | 720,024 |
% of Grand Totals | 34.86 | % |  | 38.97 | % |  | 10.72 | % |  | 15.45 | % |  | 100.00 | %
Net operating income | $ | 360,266 |  |  | $ | 454,916 |  |  | $ | 180,082 |  |  | $ | 206,911 |  |  | $ | 1,202,175 |
% of Grand Totals | 29.97 | % |  | 37.84 | % |  | 14.98 | % |  | 17.21 | % |  | 100.00 | %
For the nine months ended September 30, 2016:
| Boston |  | New York |  | San Francisco |  | Washington, DC |  | Total
Rental Revenue: |  |  |  |  |  |  |  |  |
Office | $ | 540,850 |  |  | $ | 773,077 |  |  | $ | 235,076 |  |  | $ | 300,742 |  |  | $ | 1,849,745 |
Residential | 3,578 |  |  | — |  |  | — |  |  | 8,931 |  |  | 12,509 |
Hotel | 33,919 |  |  | — |  |  | — |  |  | — |  |  | 33,919 |
Total | 578,347 |  |  | 773,077 |  |  | 235,076 |  |  | 309,673 |  |  | 1,896,173 |
% of Grand Totals | 30.50 | % |  | 40.77 | % |  | 12.40 | % |  | 16.33 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |
Office | 210,695 |  |  | 272,620 |  |  | 75,412 |  |  | 101,514 |  |  | 660,241 |
Residential | 2,174 |  |  | — |  |  | — |  |  | 3,255 |  |  | 5,429 |
Hotel | 23,730 |  |  | — |  |  | — |  |  | — |  |  | 23,730 |
Total | 236,599 |  |  | 272,620 |  |  | 75,412 |  |  | 104,769 |  |  | 689,400 |
% of Grand Totals | 34.32 | % |  | 39.54 | % |  | 10.94 | % |  | 15.20 | % |  | 100.00 | %
Net operating income | $ | 341,748 |  |  | $ | 500,457 |  |  | $ | 159,664 |  |  | $ | 204,904 |  |  | $ | 1,206,773 |
% of Grand Totals | 28.32 | % |  | 41.47 | % |  | 13.23 | % |  | 16.98 | % |  | 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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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