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Discontinued Operations | 12 Months Ended
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Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 4. Dispositions and Real Estate Assets Held for Sale Operating Property Dispositions The following table summarizes the properties sold during the years ended December 31, 2015, 2014 and 2013:
Location |  | Month of Disposition |  | Number of Buildings |  | Rentable Square Feet (unaudited) |  | Sales Price (in millions) (1)
2015 Dispositions |  |  |  |  |  |  |  |
15050 NE 36th Street, Redmond, WA |  | April |  | 1 |  | 122,103 |  |  | $ | 51.2 |
San Diego Properties - Tranches 1 and 2 (2) |  | April/July |  | 9 |  | 924,291 |  |  | 258.0 |
Total 2015 Dispositions |  |  |  | 10 |  | 1,046,394 |  |  | $ | 309.2 |
2014 Dispositions (3) |  |  |  |  |  |  |  |
San Diego Properties, San Diego, CA (4) |  | January |  | 12 |  | 1,049,035 |  |  | $ | 294.7 |
9785 & 9791 Towne Centre Drive, San Diego, CA |  | June |  | 2 |  | 126,000 |  |  | 29.5 |
111 Pacifica, Irvine, CA |  | September |  | 1 |  | 67,496 |  |  | 15.1 |
4040 Civic Center Drive, San Rafael, CA |  | October |  | 1 |  | 130,237 |  |  | 34.9 |
999 Town & Country Road, Orange, CA |  | December |  | 1 |  | 98,551 |  |  | 25.3 |
Total 2014 Dispositions |  |  |  | 17 |  | 1,471,319 |  |  | $ | 399.5 |
2013 Dispositions (3) |  |  |  |  |  |  |  |
26541 Agoura Road, Calabasas, CA |  | June |  | 1 |  | 90,156 |  |  | $ | 14.7 |
8101 Kaiser Boulevard, Anaheim, CA |  | October |  | 1 |  | 59,790 |  |  | 9.6 |
4910 Directors Place, San Diego CA |  | December |  | 1 |  | 50,360 |  |  | 32.6 |
Total 2013 Dispositions |  |  |  | 3 |  | 200,306 |  |  | $ | 56.9 |
__________________
(1) | Represents gross sales price before the impact of broker commissions and closing costs.
(2) | The San Diego Properties - Tranche 1 includes the following properties: 10770 Wateridge Circle, 6200 Greenwich Drive, and 6220 Greenwich Drive. The San Diego Properties - Tranche 2 includes the following properties: 6260 Sequence Drive, 6290, Sequence Drive, 6310 Sequence Drive, 6340 Sequence Drive, 6350 Sequence Drive and 4921 Directors Place.
(3) | The Company adopted ASU 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” for additional information). As a result, results of operations for properties disposed of subsequent of January 1, 2015 are presented in continuing operations because they did not represent strategic shifts. Properties disposed of prior to January 1, 2015 are presented in discontinued operations.
(4) | The San Diego Properties included the following: 10020 Pacific Mesa Boulevard, 6055 Lusk Avenue, 5010 and 5005 Wateridge Vista Drive, 15435 and 15445 Innovation Drive, and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science. These properties were held for sale as of December 31, 2013.
The operations of the ten properties sold during the year ended December 31, 2015 are presented in continuing operations for the year ended December 31, 2015. The total gains on sales of the ten properties sold during the year ended December 31, 2015 was $110.0 million. For the year ended December 31, 2014, discontinued operations includes the income and gains on all of the properties sold in 2014. For the year ended December 31, 2013, discontinued operations includes the income and gains on all of the properties sold in 2014 and 2013 (see Note 2 “Basis of Presentation and Significant Accounting Policies” and Note 19 “Discontinued Operations” for additional information). Operating Properties Held for Sale As of December 31, 2015, the properties listed below were classified as held for sale. We did not have any properties classified as held for sale as of December 31, 2014.
Properties |  | Submarket |  | Property Type |  | Number of Buildings |  | Rentable Square Feet (unaudited)
Torrey Santa Fe Properties (1)(2) |  | Del Mar |  | Office |  | 4 |  | 465,812 |
__________________
(1) | The Torrey Santa Fe Properties include the following properties: 7525 Torrey Santa Fe, 7535 Torrey Santa Fe, 7545 Torrey Santa Fe, and 7555 Torrey Santa Fe.
(2) | In January 2016, the Company completed the sale of these properties for a total sales price of $262.3 million.
The major classes of assets and liabilities of the properties held for sale as of December 31, 2015 were as follows:
Real estate assets and other assets held for sale | (in thousands)
Land and improvements | $ | 10,534 |
Buildings and improvements | 144,716 |
Undeveloped land and construction in progress | 4,824 |
Total real estate held for sale | 160,074 |
Accumulated depreciation and amortization | (46,191 | )
Total real estate held for sale, net | 113,883 |
Deferred rent receivables, net | 2,500 |
Deferred leasing costs and acquisition-related intangible assets, net | 1,115 |
Prepaid expenses and other assets, net | 168 |
Real estate and other assets held for sale, net | $ | 117,666 |
Liabilities and deferred revenue of real estate assets held for sale |
Secured debt | $ | 561 |
Accounts payable, accrued expenses and other liabilities | 2,497 |
Deferred revenue and acquisition-related intangible liabilities, net | 2,899 |
Rents received in advance and tenant security deposits | 1,586 |
Liabilities and deferred revenue of real estate assets held for sale | $ | 7,543 |
Land Dispositions The following table summarizes the land dispositions completed during the years ended December 31, 2015 and 2014:
Properties |  | Submarket |  | Month of Disposition |  | Gross Site Acreage (unaudited) |  | Sales Price(1) (in millions)
2015 Land Disposition |  |  |  |  |  |  |  |
17150 Von Karman (2) |  | Irvine |  | January |  | 8.5 |  | $ | 26.0 |
2014 Land Disposition |  |  |  |  |  |  |  |
10850 Via Frontera (3) |  | Rancho Bernardo |  | April |  | 21.0 |  | $ | 33.1 |
__________________
(1) | Represents gross sales price before the impact of commissions and closing costs.
(2) | This transaction resulted in a gain on sale of $17.3 million.
(3) | This transaction resulted in a gain on sale of $3.5 million.
Land Held for Sale As of December 31, 2015 and 2014, the following land parcels were classified as held for sale:
Properties |  | Submarket |  | Gross Site Acreage (unaudited) |  | Sales Price (in millions)
2015 Held for Sale |  |  |  |  |  |
Carlsbad Oaks - Lot 7 (1)(2) |  | Carlsbad |  | 7.6 |  | $ | 4.5 |
2014 Held for Sale |  |  |  |  |  |
17150 Von Karman |  | Irvine |  | 8.5 |  | $ | 26.0 |
__________________
(1) | During the year ended December 31, 2015, the Company recognized a loss relating to selling costs of approximately $0.2 million.
(2) | In January 2016, the Company completed the sale of the Carlsbad Oaks - Lot 7 land parcel.
Restricted Cash Related to Dispositions As of December 31, 2014, approximately $59.2 million of net proceeds related to the land and office property dispositions during the year ended December 31, 2014 were temporarily being held at a qualified intermediary, at our direction, for the purpose of facilitating Section 1031 Exchanges. The cash proceeds were included in restricted cash on the consolidated balance sheet at December 31, 2014. In January 2015, we successfully completed Section 1031 Exchanges and the $59.2 million of cash proceeds comprising the balances as of December 31, 2014 were released from the qualified intermediary. We did not have any restricted cash related to dispositions or Section 1031 Exchanges as of December 31, 2015. Discontinued Operations For the years ended December 31, 2014 and 2013, discontinued operations included the results of all properties sold in 2014 and 2013 and classified as held for sale at December 31, 2013, except for the operations deemed immaterial related to a June 2014 office property disposition. The following table summarizes the revenue and expense components that comprise income from discontinued operations for the years ended December 31, 2014 and 2013:
| 2014 |  | 2013
| (in thousands)
Revenues: |  |  |
Rental income | $ | 7,206 |  |  | $ | 31,984 |
Tenant reimbursements | 278 |  |  | 3,546 |
Other property income | 13 |  |  | 5,178 |
Total revenues | 7,497 |  |  | 40,708 |
Expenses: |  |  |
Property expenses | 2,171 |  |  | 7,207 |
Real estate taxes | 692 |  |  | 3,523 |
Depreciation and amortization | 2,061 |  |  | 12,600 |
Total expenses | 4,924 |  |  | 23,330 |
Income from discontinued operations before net gain on dispositions of discontinued operations | 2,573 |  |  | 17,378 |
Net gain on dispositions of discontinued operations | 121,922 |  |  | 12,252 |
Total income from discontinued operations | $ | 124,495 |  |  | $ | 29,630 |

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 + Details
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