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DISCONTINUED OPERATIONS
 9 Months Ended
Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

NOTE 8. DISCONTINUED OPERATIONS

Prior to January 1, 2015, we applied the provisions of ASC 360, “Property, Plant and Equipment”, which required 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.

Effective January 1, 2015, the Company adopted the provisions of ASU 2014-08, ”Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the criteria of ASC 360 related to determining which disposals qualify to be accounted for as discontinued operations and modifies related reporting and disclosure requirements.

Disposals representing a strategic shift in operations that have a major effect on a company’s operations and financial results will be presented as discontinued operations. Companies will be required to expand their disclosures about discontinued operations to provide more information on the assets, liabilities, income and expenses of the discontinued operations. The new standard was effective January 1, 2015. Adoption of this standard will result in substantially fewer of the Company’s dispositions meeting the discontinued operations criteria.

There were no sales of income-producing properties in the first nine months of 2015. In 2014, we sold two apartment complexes (both in Texas), and two commercial properties (one in Louisiana and one in Alaska). The gain on sale of the properties is also included in discontinued operations for those years. The following table summarizes revenue and expense information for the properties sold and held for sale (dollars in thousands):

 

    For the Three Months Ended September 30,   For the Nine Months Ended September 30,
    2015   2014   2015   2014
Revenues:                
     Rental and other property revenues   $ —       $ 1,416     $ 15     $ 5,328  
      —         1,416       15       5,328  
Expenses:                                
     Property operating expenses     2       326       (346 )     2,201  
     Depreciation     —         155       —         664  
     General and administrative     (4 )     65       99       378  
          Total operating expenses     (2 )     546       (247 )     3,243  
Other income (expense):                                
     Other income     45       (36 )     45       (522 )
     Mortgage and loan interest     —         (357 )     (1 )     (1,767 )
     Litigation settlement     —         —         —         (250 )
          Total other income (expenses)     45       (393 )     44       (2,539 )
Gain (loss) from discontinued operations before gain on sale of real estate and tax     47       477       306       (454 )
     Gain on sale of real estate from discontinued operations     —         1,770       —         14,826  
     Income tax benefit (expense)     (16 )     (786 )     (107 )     (5,030 )
Income from discontinued operations   $ 31     $ 1,461     $ 199     $ 9,342  

 

Our application of ASC 360 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2015 as income from discontinued operations. This does not have an impact on net income available to common shareholders and only impacts the presentation of these properties within the Consolidated Statements of Operations.