Segment Reporting | Segment Reporting Reportable Segments We had four reportable operating segments at June 30, 2015 , the first three of which consist of the ownership and rental of (i) industrial, (ii) medical office and (iii) office real estate investments. The operations of our industrial, medical office and office properties, along with our retail properties, are collectively referred to as "Rental Operations." Properties not included in our reportable segments, which do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are referred to as non-reportable Rental Operations. The fourth reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." Our reportable segments offer different products or services and are managed separately because each segment requires different operating strategies and management expertise. Revenues by Reportable Segment The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues, for the three and six months ended June 30, 2015 and 2014 , respectively (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues Rental Operations: Industrial $ 135,487 $ 128,263 $ 283,115 $ 261,554 Medical Office 40,274 34,954 80,302 68,264 Office 23,691 38,586 48,826 77,565 Non-reportable Rental Operations — 1,629 — 3,716 Service Operations 23,901 69,512 76,722 125,332 Total segment revenues 223,353 272,944 488,965 536,431 Other revenue 2,544 1,348 4,368 2,327 Consolidated revenue from continuing operations 225,897 274,292 493,333 538,758 Discontinued operations 49 29,331 32,164 59,403 Consolidated revenue $ 225,946 $ 303,623 $ 525,497 $ 598,161 Supplemental Performance Measure Property level net operating income on a cash basis ("PNOI") is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments. We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations"). The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes for the three and six months ended June 30, 2015 and 2014 , respectively (in thousands and excluding discontinued operations): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 PNOI Industrial $ 99,408 $ 87,897 $ 195,456 $ 172,056 Medical Office 25,820 22,015 51,051 42,592 Office 12,885 13,611 25,166 25,525 Non-reportable Rental Operations — 1,300 — 2,405 PNOI, excluding all sold/held for sale properties 138,113 124,823 271,673 242,578 PNOI from sold/held-for-sale properties included in continuing operations 2,751 16,306 11,463 31,602 PNOI, continuing operations 140,864 141,129 283,136 274,180 Earnings from Service Operations 2,163 5,655 7,960 14,204 Rental Operations revenues and expenses excluded from PNOI: Straight-line rental income and expense, net 3,956 4,077 11,107 9,778 Revenues related to lease buyouts 94 1,525 958 4,220 Amortization of lease concessions and above and below market rents (490 ) (1,389 ) (2,203 ) (3,600 ) Intercompany rents and other adjusting items (412 ) (1,355 ) (872 ) (2,497 ) Non-Segment Items: Equity in earnings of unconsolidated companies 15,123 60,826 21,369 63,147 Interest expense (42,976 ) (51,448 ) (92,567 ) (103,306 ) Depreciation expense (78,334 ) (88,500 ) (160,237 ) (176,798 ) Gain on sale of properties 107,410 70,318 130,894 86,171 Impairment charges on non-depreciable properties (5,470 ) (2,523 ) (5,470 ) (2,523 ) Interest and other income, net 1,375 229 1,713 580 General and administrative expenses (19,238 ) (10,365 ) (36,242 ) (25,059 ) Gain on land sales 17,012 3,889 22,437 4,041 Other operating expenses (1,555 ) (1,987 ) (3,112 ) (4,203 ) Loss on extinguishment of debt (82,653 ) (139 ) (82,653 ) (139 ) Acquisition-related activity (1,305 ) (747 ) (1,333 ) (761 ) Other non-segment revenues and expenses, net 143 (80 ) (259 ) (772 ) Income from continuing operations before income taxes $ 55,707 $ 129,115 $ 94,626 $ 136,663 The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies. Assets by Reportable Segment The assets for each of the reportable segments at June 30, 2015 and December 31, 2014 were as follows (in thousands): June 30, December 31, Assets Rental Operations: Industrial $ 4,510,800 $ 4,677,047 Medical Office 1,226,567 1,229,632 Office 654,467 1,252,627 Non-reportable Rental Operations — 71,741 Service Operations 136,614 158,762 Total segment assets 6,528,448 7,389,809 Non-segment assets 586,073 365,030 Consolidated assets $ 7,114,521 $ 7,754,839 |