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DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2014
DISCONTINUED OPERATIONS  
DISCONTINUED OPERATIONS

NOTE 14.     DISCONTINUED OPERATIONS

 

The Company applies the provisions of ASC Topic 360 “Property, Plant and Equipment.” ASC Topic 360 requires that long-lived assets that are to be disposed of by sale be measured at the lesser of (1) book value or (2) fair value less cost to sell. In addition, it requires that one accounting model be used for long-lived assets to be disposed of by sale and broadens the presentation of discontinued operations to include more disposal transactions.

 

Discontinued operations relates to properties that were either sold or repositioned as held for sale as of the year ended 2014, 2013 and 2012. Income from discontinued operations relates to 5, 19, and 25 properties that were sold or repositioned in 2014, 2013 and 2012, respectively. The following table summarizes revenue and expense information for these properties sold and held for sale (dollars in thousands):

 

 

 

For the Years Ended December 31,

 

 

 

2014

 

 

2013

 

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

     Rental and other property revenues

 

$

5,612

 

 

$

34,922

 

 

$

43,589

 

 

 

 

5,612

 

 

 

34,922

 

 

 

43,589

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

     Property operating expenses

 

 

2,350

 

 

 

16,479

 

 

 

23,326

 

     Depreciation

 

 

751

 

 

 

5,563

 

 

 

7,691

 

     General and administrative

 

 

451

 

 

 

966

 

 

 

1,224

 

     Provision on impairment of notes receivable and real estate assets

 

 

-

 

 

 

-

 

 

 

2,400

 

        Total operating expenses

 

$

3,552

 

 

$

23,008

 

 

$

34,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

    Other income (expense)

 

 

(507

)

 

 

45

 

 

 

7

 

    Mortgage and loan interest

 

 

(1,743

)

 

 

(8,082

)

 

 

(12,737

)

    Deferred borrowing costs amortization

 

 

(1,461

)

 

 

(3,015

)

 

 

(1,793

)

    Loan charges and prepayment penalties

 

 

(1,656

)

 

 

(3,246

)

 

 

(3,472

)

    Litigation settlement

 

 

(250

)

 

 

(250

)

 

 

(250

)

        Total other expenses

 

$

(5,617

)

 

$

(14,548

)

 

$

(18,245

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations before gain on sale of real estate and taxes

 

 

(3,557

)

 

 

(2,634

)

 

 

(9,297

)

     Gain on sale of real estate from discontinued operations

 

 

61,879

 

 

 

98,951

 

 

 

8,885

 

     Income tax benefit (expense)

 

 

(20,413

)

 

 

(33,711

)

 

 

144

 

Income (loss) from discontinued operations

 

$

37,909

 

 

$

62,606

 

 

$

(268

)

 

 The Company’s application of ASC Topic 360 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2014, 2013 and 2012 as income from discontinued operations. The application of ASC Topic 360 does not have an impact on net income available to common shareholders. ASC Topic 360 only impacts the presentation of these properties within the Consolidated Statements of Operations.