Net operating income is defined as total revenue less property operating expenses, real estate taxes and third party management
expenses. Segment net operating income includes revenue, real estate taxes and property operating expenses directly related to
operation of the properties within the respective geographical region. Segment net operating income excludes property level
depreciation and amortization, revenue and expenses directly associated with third party real estate management services, expenses
associated with corporate administrative support services, and inter-company eliminations. Below is a reconciliation of consolidated
net operating income to consolidated income (loss) from continuing operations:
Year Ended December 31,
2009
(amounts in thousands)
336,436
$
344,798
$
2010
Consolidated net operating income
Less:
Interest expense
Deferred financing costs
Depreciation and amortization
Administrative expenses
Provision for impairment on land inventory
Recognized Hedge Activity
Plus:
Interest income
Equity in income of real estate ventures
Gain (loss) on early extinguishment of debt
$
(132,640)
(3,770)
(212,775)
(23,306)
-
Income (loss) from continuing operations
Income from discontinued operations
Net income (loss)
$
2008
356,333
(135,740)
(5,864)
(205,863)
(20,821)
(916)
(146,646)
(5,450)
(199,447)
(23,002)
(10,841)
-
3,222
5,305
(2,110)
2,499
4,069
23,177
1,839
8,447
18,105
(29,638)
12,032
5,339
2,750
(662)
39,187
(17,606)
$
8,089
$
38,525
21. OPERATING LEASES
The Company leases properties to tenants under operating leases with various expiration dates extending to 2030. Minimum future
rentals on non-cancelable leases at December 31, 2010 are as follows (in thousands):
Year
Minimum Rent
2011
2012
2013
2014
2015
Thereafter
$
552,109
487,290
429,763
372,185
313,411
1,062,209
Total minimum future rentals presented above do not include amounts to be received as tenant reimbursements for operating costs.
22. COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Company is involved from time to time in litigation on various matters, including disputes with tenants and disputes arising out of
agreements to purchase or sell properties. Given the nature of the Company’s business activities, these lawsuits are considered routine
to the conduct of its business. The result of any particular lawsuit cannot be predicted, because of the very nature of litigation, the
litigation process and its adversarial nature, and the jury system. The Company does not expect that the liabilities, if any, that may
ultimately result from such legal actions will have a material adverse effect on the consolidated financial position, results of operations
or cash flows of the Company.
F - 53