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DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2013
DISCONTINUED OPERATIONS  
Discontinued Operations

NOTE 10.       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 2013, 2012 and 2011. There were no properties sold in 2013 or 2012. In 2011, we sold 13.0 acres of land with a storage warehouse (Eagle Crest).  The statements of operations for all prior periods presented have been restated to reflect the reclassification to discontinued operations. The results of operations from these properties are shown below (dollars in thousands):

  

 

For Years Ended December 31,

 

 

 

2012

 

 

2011

 

 

2010

 

Revenue

 

 

 

 

 

 

 

 

 

     Rental and other property revenues

 

$

-

 

 

$

-

 

 

$

159

 

 

 

 

-

 

 

 

-

 

 

 

159

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

     Property operating expense

 

 

 

 

 

 

-

 

 

 

27

 

     Mortgage and loan interest expense

 

 

-

 

 

 

-

 

 

 

84

 

     General and administrative

 

 

24

 

 

 

106

 

 

 

1

 

     Provision on impairment of real estate assets

 

 

 

 

 

 

-

 

 

 

1,474

 

          Total operating expenses

 

 

24

 

 

 

106

 

 

 

1,586

 

Loss from discontinued operations before gains on sale of real estate, taxes, and fees

 

 

(24

)

 

 

(106

)

 

 

(1,427

)

     Gain on sale of discontinued operations

 

 

-

 

 

 

-

 

 

 

947

 

Loss from discontinued operations

 

 

(24

)

 

 

(106

)

 

 

(480

)

     Income tax benefit

 

 

8

 

 

 

37

 

 

 

168

 

Net loss from discontinued operations

 

$

(16

)

 

$

(69

)

 

$

(312

)

 

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 2013, 2012 and 2011 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.