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Summary of Significant Accounting Policies | 12 Months Ended
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Dec. 31, 2013
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This Form 10-K provides separate consolidated financial statements for the Company and the Operating Partnership. Due to the Company's ability as general partner to control the Operating Partnership, the Company consolidates the Operating Partnership within its consolidated financial statements for financial reporting purposes. The notes to consolidated financial statements apply to both the Company and the Operating Partnership, unless specifically noted otherwise. The accompanying consolidated financial statements include the consolidated accounts of the Company, the Operating Partnership and their wholly owned subsidiaries, as well as entities in which the Company has a controlling financial interest or entities where the Company is deemed to be the primary beneficiary of a VIE. For entities in which the Company has less than a controlling financial interest or entities where the Company is not deemed to be the primary beneficiary of a VIE, the entities are accounted for using the equity method of accounting. Accordingly, the Company's share of the net earnings or losses of these entities is included in consolidated net income. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany transactions have been eliminated. Certain historical amounts have been reclassified to conform to the current year presentation. The financial results of certain Properties are reported as discontinued operations in the consolidated financial statements. Except where noted, the information presented in the Notes to Consolidated Financial Statements excludes discontinued operations. Accounting Guidance Adopted In February 2013, the FASB issued ASU 2013-02. The objective of ASU 2013-02 is to improve reporting of reclassifications out of AOCI by presenting information about such reclassifications and their corresponding effect on net income primarily in one place, either on the face of the financial statements or in the notes. ASU 2013-02 requires an entity to disclose information by component for significant amounts reclassified out of AOCI if the amounts reclassified are required to be reclassified under GAAP to net income in their entirety in the same reporting period. For amounts not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. For public companies, this guidance was effective on a prospective basis for fiscal years, and interim periods within those years, beginning after December 15, 2012. ASU 2013-02 did not change the calculation of or amounts reported as net income and comprehensive income but did change the presentation of the components of AOCI reported in the Company's consolidated financial statements. In July 2013, the FASB issued ASU 2013-10. ASU 2013-10 permits the OIS Rate, also referred to as the Fed Funds Effective Swap Rate, to be used as a U.S. benchmark for hedge accounting purposes, in addition to LIBOR and interest rates on direct U.S. Treasury obligations. The guidance also removes the restriction on using different benchmarks for similar hedges. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedges entered into on or after July 17, 2013. The adoption of this guidance did not have a material effect on the Company's consolidated financial statements. Accounting Pronouncements Not Yet Effective In February 2013, the FASB issued ASU 2013-04. ASU 2013-04 addresses the diversity in practice related to the recognition, measurement and disclosure of certain obligations which are not addressed within existing GAAP guidance. Such obligations under the scope of ASU 2013-04 include debt arrangements, other contractual obligations, settled litigation and judicial rulings. The guidance requires an entity to measure these joint and several obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors as well as any additional amount the reporting entity expects to pay on behalf of its co-obligors. ASU 2013-04 also requires an entity to disclose information about the nature and amount of these obligations. For public companies, ASU 2013-04 is effective on a retrospective basis for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company may elect to use hindsight for the comparative periods (if the Company changes its accounting as a result of the adoption of this guidance). Early adoption is permitted. The Company is evaluating the impact that this update may have on its consolidated financial statements. In July 2013, the FASB issued ASU 2013-11. The objective of this update is to reduce the diversity in practice related to the presentation of certain unrecognized tax benefits. ASU 2013-11 provides that unrecognized tax benefits are to be presented as a reduction of a deferred tax asset for an NOL carryforward, a similar tax loss or a tax credit carryforward when settlement in this manner is available under the governing tax law. To the extent such an NOL carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position or the entity does not intend to use the deferred tax asset for this purpose, the unrecognized tax benefit is to be recorded as a liability in the financial statements and should not be netted with a deferred tax asset. ASU 2013-11 is effective for public companies for fiscal years beginning after December 15, 2013 and interim periods within those years. The guidance should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Early adoption and retrospective application are permitted. The Company is evaluating the impact that this update may have on its consolidated financial statements. Real Estate Assets The Company capitalizes predevelopment project costs paid to third parties. All previously capitalized predevelopment costs are expensed when it is no longer probable that the project will be completed. Once development of a project commences, all direct costs incurred to construct the project, including interest and real estate taxes, are capitalized. Additionally, certain general and administrative expenses are allocated to the projects and capitalized based on the amount of time applicable personnel work on the development project. Ordinary repairs and maintenance are expensed as incurred. Major replacements and improvements are capitalized and depreciated over their estimated useful lives. All acquired real estate assets have been accounted for using the acquisition method of accounting and accordingly, the results of operations are included in the consolidated statements of operations from the respective dates of acquisition. The Company allocates the purchase price to (i) tangible assets, consisting of land, buildings and improvements, as if vacant, and tenant improvements, and (ii) identifiable intangible assets and liabilities, generally consisting of above-market leases, in-place leases and tenant relationships, which are included in other assets, and below-market leases, which are included in accounts payable and accrued liabilities. The Company uses estimates of fair value based on estimated cash flows, using appropriate discount rates, and other valuation techniques to allocate the purchase price to the acquired tangible and intangible assets. Liabilities assumed generally consist of mortgage debt on the real estate assets acquired. Assumed debt is recorded at its fair value based on estimated market interest rates at the date of acquisition. Depreciation is computed on a straight-line basis over estimated lives of 40 years for buildings, 10 to 20 years for certain improvements and 7 to 10 years for equipment and fixtures. Tenant improvements are capitalized and depreciated on a straight-line basis over the term of the related lease. Lease-related intangibles from acquisitions of real estate assets are generally amortized over the remaining terms of the related leases. The amortization of above- and below-market leases is recorded as an adjustment to minimum rental revenue, while the amortization of all other lease-related intangibles is recorded as amortization expense. Any difference between the face value of the debt assumed and its fair value is amortized to interest expense over the remaining term of the debt using the effective interest method. The Company’s intangibles and their balance sheet classifications as of December 31, 2013 and 2012, are summarized as follows:
| December 31, 2013 |  | December 31, 2012
| Cost |  | Accumulated Amortization |  | Cost |  | Accumulated Amortization
Intangible lease assets and other assets: |  |  |  |  |  |  |
Above-market leases | $ | 65,932 |  |  | $ | (41,230 | ) |  | $ | 69,360 |  |  | $ | (37,454 | )
In-place leases | 111,769 |  |  | (60,243 | ) |  | 117,631 |  |  | (46,767 | )
Tenant relationships | 27,381 |  |  | (4,004 | ) |  | 27,880 |  |  | (3,350 | )
Accounts payable and accrued liabilities: |  |  |  |  |  |  |  |  |  |  |
Below-market leases | 101,901 |  |  | (64,046 | ) |  | 104,012 |  |  | (57,625 | )
These intangibles are related to specific tenant leases. Should a termination occur earlier than the date indicated in the lease, the related intangible assets or liabilities, if any, related to the lease are recorded as expense or income, as applicable. The total net amortization expense of the above intangibles was $19,030, $10,558 and $7,108 in 2013, 2012 and 2011, respectively. The estimated total net amortization expense for the next five succeeding years is $13,421 in 2014, $10,475 in 2015, $6,219 in 2016, $4,537 in 2017 and $2,079 in 2018. Total interest expense capitalized was $4,889, $2,671 and $4,955 in 2013, 2012 and 2011, respectively. Carrying Value of Long-Lived Assets The Company evaluates the carrying value of long-lived assets to be held and used when events or changes in circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when its estimated future undiscounted cash flows are less than its carrying value. The Company estimates fair value using the undiscounted cash flows expected to be generated by each Property, which are based on a number of assumptions such as leasing expectations, operating budgets, estimated useful lives, future maintenance expenditures, intent to hold for use and capitalization rates. If it is determined that impairment has occurred, the amount of the impairment charge is equal to the excess of the asset’s carrying value over its estimated fair value. These assumptions are subject to economic and market uncertainties including, but not limited to, demand for space, competition for tenants, changes in market rental rates and costs to operate each Property. As these factors are difficult to predict and are subject to future events that may alter the assumptions used, the future cash flows estimated in the Company’s impairment analyses may not be achieved. See Note 4 and Note 15 for information related to the impairment of long-lived assets for 2013, 2012 and 2011. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less as cash equivalents. Restricted Cash Restricted cash of $46,252 and $42,880 was included in intangible lease assets and other assets at December 31, 2013 and 2012, respectively. Restricted cash consists primarily of cash held in escrow accounts for debt service, insurance, real estate taxes, capital improvements and deferred maintenance as required by the terms of certain mortgage notes payable, as well as contributions from tenants to be used for future marketing activities. The Company’s restricted cash included $81 and $110 as of December 31, 2013 and 2012, respectively, related to funds held in a trust account for certain construction costs associated with our developments. Allowance for Doubtful Accounts The Company periodically performs a detailed review of amounts due from tenants to determine if accounts receivable balances are realizable based on factors affecting the collectability of those balances. The Company’s estimate of the allowance for doubtful accounts requires management to exercise significant judgment about the timing, frequency and severity of collection losses, which affects the allowance and net income. The Company recorded a provision for doubtful accounts of $1,253, $798 and $1,670 for 2013, 2012 and 2011, respectively. Investments in Unconsolidated Affiliates The Company evaluates its joint venture arrangements to determine whether they should be recorded on a consolidated basis. The percentage of ownership interest in the joint venture, an evaluation of control and whether a VIE exists are all considered in the Company’s consolidation assessment. Initial investments in joint ventures that are in economic substance a capital contribution to the joint venture are recorded in an amount equal to the Company’s historical carryover basis in the real estate contributed. Initial investments in joint ventures that are in economic substance the sale of a portion of the Company’s interest in the real estate are accounted for as a contribution of real estate recorded in an amount equal to the Company’s historical carryover basis in the ownership percentage retained and as a sale of real estate with profit recognized to the extent of the other joint venturers’ interests in the joint venture. Profit recognition assumes the Company has no commitment to reinvest with respect to the percentage of the real estate sold and the accounting requirements of the full accrual method are met. The Company accounts for its investment in joint ventures where it owns a non-controlling interest or where it is not the primary beneficiary of a VIE using the equity method of accounting. Under the equity method, the Company’s cost of investment is adjusted for its share of equity in the earnings of the unconsolidated affiliate and reduced by distributions received. Generally, distributions of cash flows from operations and capital events are first made to partners to pay cumulative unpaid preferences on unreturned capital balances and then to the partners in accordance with the terms of the joint venture agreements. Any differences between the cost of the Company’s investment in an unconsolidated affiliate and its underlying equity as reflected in the unconsolidated affiliate’s financial statements generally result from costs of the Company’s investment that are not reflected on the unconsolidated affiliate’s financial statements, capitalized interest on its investment and the Company’s share of development and leasing fees that are paid by the unconsolidated affiliate to the Company for development and leasing services provided to the unconsolidated affiliate during any development periods. At December 31, 2013 and 2012, the components of the net difference between the Company’s investment in unconsolidated affiliates and the underlying equity of unconsolidated affiliates, which are amortized over a period equal to the useful life of the unconsolidated affiliates' asset/liability that is related to the basis difference, was $14,650 and $11,674, respectively. On a periodic basis, the Company assesses whether there are any indicators that the fair value of the Company's investments in unconsolidated affiliates may be impaired. An investment is impaired only if the Company’s estimate of the fair value of the investment is less than the carrying value of the investment and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. The Company's estimates of fair value for each investment are based on a number of assumptions that are subject to economic and market uncertainties including, but not limited to, demand for space, competition for tenants, changes in market rental rates, and operating costs. As these factors are difficult to predict and are subject to future events that may alter the Company’s assumptions, the fair values estimated in the impairment analyses may not be realized. No impairments of investments in unconsolidated affiliates were recorded in 2013, 2012 and 2011. Deferred Financing Costs Net deferred financing costs of $25,061 and $24,821 were included in intangible lease assets and other assets at December 31, 2013 and 2012, respectively. Deferred financing costs include fees and costs incurred to obtain financing and are amortized on a straight-line basis to interest expense over the terms of the related indebtedness. Amortization expense was $7,468, $10,263 and $11,744 in 2013, 2012 and 2011, respectively. Accumulated amortization was $14,656 and $8,932 as of December 31, 2013 and 2012, respectively. Marketable Securities Intangible lease assets and other assets include marketable securities consisting of corporate equity securities and bonds that are classified as available-for-sale. Unrealized gains and losses on available-for-sale securities that are deemed to be temporary in nature are recorded as a component of accumulated other comprehensive income (loss) ("AOCI/L") in redeemable noncontrolling interests, shareholders’ equity and partners' capital, and noncontrolling interests. Realized gains and losses are recorded in other income. Gains or losses on securities sold are based on the specific identification method. The Company did not recognize any realized gains or losses related to sales of marketable securities in 2013. The Company recognized net realized gains on sales of available-for-sale securities of $224 in 2012 and net realized losses on sales of available-for-sale securities of $22 in 2011. If a decline in the value of an investment is deemed to be other than temporary, the investment is written down to fair value and an impairment loss is recognized in the current period to the extent of the decline in value. In determining when a decline in fair value below cost of an investment in marketable securities is other-than-temporary, the following factors, among others, are evaluated:
• | the probability of recovery;
• | the Company’s ability and intent to retain the security for a sufficient period of time for it to recover;
• | the significance of the decline in value;
• | the time period during which there has been a significant decline in value;
• | current and future business prospects and trends of earnings;
• | relevant industry conditions and trends relative to their historical cycles; and
• | market conditions.
There were no other-than-temporary impairments of marketable securities incurred during 2013, 2012 and 2011. The following is a summary of the marketable securities held by the Company as of December 31, 2013 and 2012:
|  |  | Gross Unrealized |  |
| Adjusted Cost |  | Gains |  | Losses |  | Fair Value
December 31, 2013: |  |  |  |  |  |  |
Common stocks | $ | 4,195 |  |  | $ | 9,778 |  |  | $ | — |  |  | $ | 13,973 |
December 31, 2012: |  |  |  |  |  |  |  |  |  |  |
Common stocks | $ | 4,195 |  |  | $ | 12,361 |  |  | $ | — |  |  | $ | 16,556 |
Government and government sponsored entities | 11,123 |  |  | — |  |  | — |  |  | 11,123 |
| $ | 15,318 |  |  | $ | 12,361 |  |  | $ | — |  |  | $ | 27,679 |
Interest Rate Hedging Instruments The Company recognizes its derivative financial instruments in either accounts payable and accrued liabilities or intangible lease assets and other assets, as applicable, in the consolidated balance sheets and measures those instruments at fair value. The accounting for changes in the fair value (i.e., gain or loss) of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. To qualify as a hedging instrument, a derivative must pass prescribed effectiveness tests, performed quarterly using both qualitative and quantitative methods. The Company has entered into derivative agreements as of December 31, 2013 and 2012 that qualify as hedging instruments and were designated, based upon the exposure being hedged, as cash flow hedges. The fair value of these cash flow hedges as of December 31, 2013 and 2012 was $4,007 and $5,805, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. To the extent they are effective, changes in the fair values of cash flow hedges are reported in other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. The ineffective portion of the hedge, if any, is recognized in current earnings during the period of change in fair value. The gain or loss on the termination of an effective cash flow hedge is reported in other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. The Company also assesses the credit risk that the counterparty will not perform according to the terms of the contract. See Notes 6 and 15 for additional information regarding the Company’s interest rate hedging instruments. Revenue Recognition Minimum rental revenue from operating leases is recognized on a straight-line basis over the initial terms of the related leases. Certain tenants are required to pay percentage rent if their sales volumes exceed thresholds specified in their lease agreements. Percentage rent is recognized as revenue when the thresholds are achieved and the amounts become determinable. The Company receives reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses as provided in the lease agreements. Tenant reimbursements are recognized when earned in accordance with the tenant lease agreements. Tenant reimbursements related to certain capital expenditures are billed to tenants over periods of 5 to 15 years and are recognized as revenue in accordance with underlying lease terms. The Company receives management, leasing and development fees from third parties and unconsolidated affiliates. Management fees are charged as a percentage of revenues (as defined in the management agreement) and are recognized as revenue when earned. Development fees are recognized as revenue on a pro rata basis over the development period. Leasing fees are charged for newly executed leases and lease renewals and are recognized as revenue when earned. Development and leasing fees received from an unconsolidated affiliate during the development period are recognized as revenue only to the extent of the third-party partner’s ownership interest. Development and leasing fees during the development period, to the extent of the Company’s ownership interest, are recorded as a reduction to the Company’s investment in the unconsolidated affiliate. Gain on Sales of Real Estate Assets Gain on sales of real estate assets is recognized when it is determined that the sale has been consummated, the buyer’s initial and continuing investment is adequate, the Company’s receivable, if any, is not subject to future subordination, and the buyer has assumed the usual risks and rewards of ownership of the asset. When the Company has an ownership interest in the buyer, gain is recognized to the extent of the third party partner’s ownership interest and the portion of the gain attributable to the Company’s ownership interest is deferred. Income Taxes The Company is qualified as a REIT under the provisions of the Internal Revenue Code. To maintain qualification as a REIT, the Company is required to distribute at least 90% of its taxable income to shareholders and meet certain other requirements. As a REIT, the Company is generally not liable for federal corporate income taxes. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal and state income taxes on its taxable income at regular corporate tax rates. Even if the Company maintains its qualification as a REIT, the Company may be subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed income. State tax expense was $3,570, $3,530 and $3,766 during 2013, 2012 and 2011, respectively. The Company has also elected taxable REIT subsidiary status for some of its subsidiaries. This enables the Company to receive income and provide services that would otherwise be impermissible for REITs. For these entities, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized. An increase or decrease in the valuation allowance that results from the change in circumstances that causes a change in our judgment about the realizability of the related deferred tax asset is included in income or expense, as applicable. The Company recorded an income tax provision of $1,305 and $1,404 in 2013 and 2012, respectively, and an income tax benefit of $269 in 2011. The income tax provision in 2013 consisted of a current income tax benefit of $518 and a deferred income tax provision of $1,823. The income tax provision in 2012 consisted of a current income tax benefit of $1,691 and a deferred income tax provision of $3,095. The income tax benefit in 2011 consisted of a current income tax provision of $5,426 and a deferred income tax benefit of $5,695, The Company had a net deferred tax asset of $4,893 and $6,607 at December 31, 2013 and 2012, respectively. The net deferred tax asset at December 31, 2013 and 2012 is included in intangible lease assets and other assets and primarily consisted of operating expense accruals and differences between book and tax depreciation. As of December 31, 2013, tax years that generally remain subject to examination by the Company’s major tax jurisdictions include 2010, 2011, 2012 and 2013. The Company reports any income tax penalties attributable to its properties as property operating expenses and any corporate-related income tax penalties as general and administrative expenses in its statement of operations. In addition, any interest incurred on tax assessments is reported as interest expense. The Company reported nominal interest and penalty amounts in 2013, 2012 and 2011. Concentration of Credit Risk The Company’s tenants include national, regional and local retailers. Financial instruments that subject the Company to concentrations of credit risk consist primarily of tenant receivables. The Company generally does not obtain collateral or other security to support financial instruments subject to credit risk, but monitors the credit standing of tenants. The Company derives a substantial portion of its rental income from various national and regional retail companies; however, no single tenant collectively accounted for more than 3.4% of the Company’s total revenues in 2013, 2012 or 2011. Earnings Per Share and Earnings per Unit See Note 7 for information regarding significant CBL equity offerings that affected per share and per unit amounts for each period presented. Earnings per Share of the Company Basic earnings per share ("EPS") is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS assumes the issuance of common stock for all potential dilutive common shares outstanding. The limited partners’ rights to convert their noncontrolling interests in the Operating Partnership into shares of common stock are not dilutive. The following summarizes the impact of potential dilutive common shares on the denominator used to compute EPS:
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Denominator – basic | 167,027 |  |  | 154,762 |  |  | 148,289 |
Stock options | — |  |  | 3 |  |  | 3 |
Deemed shares related to deferred compensation arrangements | — |  |  | 42 |  |  | 42 |
Denominator – diluted | 167,027 |  |  | 154,807 |  |  | 148,334 |
There were no outstanding stock options in 2013. There were no anti-dilutive shares related to stock options in 2012. For the year ended December 31, 2011, 23,000 shares related to stock options were excluded from the computation of diluted EPS because the effect of including the stock options would have been anti-dilutive. Earnings per Unit of the Operating Partnership Basic earnings per unit ("EPU") is computed by dividing net income attributable to common unitholders by the weighted-average number of common units outstanding for the period. Diluted EPU assumes the issuance of common units for all potential dilutive common units outstanding. The following summarizes the impact of potential dilutive common units on the denominator used to compute EPU:
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Denominator – basic | 196,572 |  |  | 190,223 |  |  | 190,335 |
Stock options | — |  |  | 3 |  |  | 3 |
Deemed units related to deferred compensation arrangements | — |  |  | 42 |  |  | 42 |
Denominator – diluted | 196,572 |  |  | 190,268 |  |  | 190,380 |
Comprehensive Income Accumulated Other Comprehensive Income of the Company Comprehensive income of the Company includes all changes in redeemable noncontrolling interests and total equity during the period, except those resulting from investments by shareholders and partners, distributions to shareholders and partners and redemption valuation adjustments. Other comprehensive income (loss) (“OCI/L”) includes changes in unrealized gains (losses) on available-for-sale securities and interest rate hedge agreements. The changes in the components of AOCI for the years ended December 31, 2013 and 2012 are as follows:
| Redeemable Noncontrolling Interests |  | The Company |  | Noncontrolling Interests |  |
| Unrealized Gains (Losses) |  |
| Hedging Agreements |  | Available-for-Sale Securities |  | Hedging Agreements |  | Available-for-Sale Securities |  | Hedging Agreements |  | Available-for-Sale Securities |  | Total
Beginning balance, January 1, 2012 | $ | 377 |  |  | $ | 328 |  |  | $ | (2,628 | ) |  | $ | 6,053 |  |  | $ | (3,488 | ) |  | $ | 1,775 |  |  | $ | 2,417 |
OCI before reclassifications | (4 | ) |  | 23 |  |  | 2,139 |  |  | 3,510 |  |  | (75 | ) |  | 445 |  |  | 6,038 |
Amounts reclassified from AOCI (1) | — |  |  | 2 |  |  | (2,267 | ) |  | 179 |  |  | — |  |  | 43 |  |  | (2,043 | )
Net year-to-date period OCI | (4 | ) |  | 25 |  |  | (128 | ) |  | 3,689 |  |  | (75 | ) |  | 488 |  |  | 3,995 |
Ending balance, December 31, 2012 | 373 |  |  | 353 |  |  | (2,756 | ) |  | 9,742 |  |  | (3,563 | ) |  | 2,263 |  |  | 6,412 |
OCI before reclassifications | 14 |  |  | (20 | ) |  | 3,839 |  |  | (2,203 | ) |  | 259 |  |  | $ | (360 | ) |  | 1,529 |
Amounts reclassified from AOCI (1) | — |  |  | — |  |  | (2,297 | ) |  | — |  |  | — |  |  | — |  |  | (2,297 | )
Net year-to-date period OCI | 14 |  |  | (20 | ) |  | 1,542 |  |  | (2,203 | ) |  | 259 |  |  | (360 | ) |  | (768 | )
Ending balance, December 31, 2013 | $ | 387 |  |  | $ | 333 |  |  | $ | (1,214 | ) |  | $ | 7,539 |  |  | $ | (3,304 | ) |  | $ | 1,903 |  |  | $ | 5,644 |
(1) Reclassified $2,297 and $2,267 of interest on cash flow hedges to Interest Expense in the consolidated statements of operations for the years ended December 31, 2013 and 2012, respectively. Reclassified $224 realized gain on available-for-sale securities to Interest and Other Income in the consolidated statements of operations for the year ended December 31, 2012. Accumulated Other Comprehensive Income of the Operating Partnership Comprehensive income of the Operating Partnership includes all changes in redeemable common units and partners' capital during the period, except those resulting from investments by unitholders, distributions to unitholders and redemption valuation adjustments. OCI/L includes changes in unrealized gains (losses) on available-for-sale securities and interest rate hedge agreements. The changes in the components of AOCI for the years ended December 31, 2013 and 2012 are as follows:
| Redeemable Common Units |  | Partners' Capital |  |
| Unrealized Gains (Losses) |  |
| Hedging Agreements |  | Available-for-Sale Securities |  | Hedging Agreements |  | Available-for-Sale Securities |  | Total
Beginning balance, January 1, 2012 | $ | 377 |  |  | $ | 328 |  |  | $ | (6,116 | ) |  | $ | 7,828 |  |  | $ | 2,417 |
OCI before reclassifications | (4 | ) |  | 23 |  |  | 2,064 |  |  | 3,955 |  |  | 6,038 |
Amounts reclassified from AOCI (1) | — |  |  | 2 |  |  | (2,267 | ) |  | 222 |  |  | (2,043 | )
Net year-to-date period OCI | (4 | ) |  | 25 |  |  | (203 | ) |  | 4,177 |  |  | 3,995 |
Ending balance, December 31, 2012 | 373 |  |  | 353 |  |  | (6,319 | ) |  | 12,005 |  |  | 6,412 |
OCI before reclassifications | 14 |  |  | (20 | ) |  | 4,098 |  |  | (2,563 | ) |  | 1,529 |
Amounts reclassified from AOCI (1) | — |  |  | — |  |  | (2,297 | ) |  | — |  |  | (2,297 | )
Net year-to-date period OCI | 14 |  |  | (20 | ) |  | 1,801 |  |  | (2,563 | ) |  | (768 | )
Ending balance, December 31, 2013 | $ | 387 |  |  | $ | 333 |  |  | $ | (4,518 | ) |  | $ | 9,442 |  |  | 5,644 |
(1) Reclassified $2,297 and $2,267 of interest on cash flow hedges to Interest Expense in the consolidated statements of operations for the years ended December 31, 2013 and 2012, respectively. Reclassified $224 realized gain on available-for-sale securities to Interest and Other Income in the consolidated statements of operations for the year ended December 31, 2012. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.

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