Segment Reporting | Segment Reporting Reportable Segments We had three reportable operating segments at June 30, 2016 , the first two of which consist of the ownership and rental of (i) industrial and (ii) medical office real estate investments. Beginning in 2016 our office properties are no longer presented as a separate reportable segment, as they no longer meet the quantitative thresholds for separate presentation, and are referred to as part of our non-reportable Rental Operations. The operations of our industrial and medical office properties as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations." Our third 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, 2016 and 2015 , respectively (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues Rental Operations: Industrial $ 140,219 $ 135,487 $ 283,199 $ 283,115 Medical Office 43,135 40,274 85,360 80,302 Non-reportable Rental Operations 13,529 23,691 28,425 48,826 Service Operations 26,044 23,901 49,195 76,722 Total segment revenues 222,927 223,353 446,179 488,965 Other revenue 3,637 2,544 5,339 4,368 Consolidated revenue from continuing operations 226,564 225,897 451,518 493,333 Discontinued operations 126 49 355 32,164 Consolidated revenue $ 226,690 $ 225,946 $ 451,873 $ 525,497 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, 2016 and 2015 , respectively (in thousands and excluding discontinued operations): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 PNOI Industrial $ 104,741 $ 96,629 $ 206,798 $ 191,588 Medical Office 28,179 25,820 55,421 51,051 Non-reportable Rental Operations 8,903 9,870 18,069 17,762 PNOI, excluding all sold/held for sale properties 141,823 132,319 280,288 260,401 PNOI from sold/held-for-sale properties included in continuing operations 629 8,545 2,994 22,735 PNOI, continuing operations $ 142,452 $ 140,864 $ 283,282 $ 283,136 Earnings from Service Operations 3,816 2,163 6,047 7,960 Rental Operations revenues and expenses excluded from PNOI: Straight-line rental income and expense, net 2,893 3,956 5,824 11,107 Revenues related to lease buyouts 69 94 234 958 Amortization of lease concessions and above and below market rents (425 ) (490 ) (1,058 ) (2,203 ) Intercompany rents and other adjusting items (226 ) (412 ) (219 ) (872 ) Non-Segment Items: Equity in earnings of unconsolidated companies 3,534 15,123 25,394 21,369 Gain on dissolution of unconsolidated company 30,697 — 30,697 — Promote income 24,087 — 24,087 — Interest expense (37,184 ) (42,976 ) (74,914 ) (92,567 ) Depreciation and amortization expense (80,161 ) (78,334 ) (157,959 ) (160,237 ) Gain on sale of properties 39,314 107,410 54,891 130,894 Impairment charges on non-depreciable properties (5,651 ) (5,470 ) (12,056 ) (5,470 ) Interest and other income, net 567 1,375 3,090 1,713 General and administrative expenses (11,584 ) (19,238 ) (29,682 ) (36,242 ) Gain on land sales 707 17,012 837 22,437 Other operating expenses (836 ) (1,555 ) (2,072 ) (3,112 ) Loss on extinguishment of debt (2,430 ) (82,653 ) (2,430 ) (82,653 ) Acquisition-related activity (72 ) (1,305 ) (75 ) (1,333 ) Other non-segment revenues and expenses, net 80 143 (323 ) (259 ) Income from continuing operations before income taxes $ 109,647 $ 55,707 $ 153,595 $ 94,626 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, 2016 and December 31, 2015 were as follows (in thousands): June 30, December 31, Assets Rental Operations: Industrial $ 4,629,204 $ 4,552,107 Medical Office 1,304,920 1,269,546 Non-reportable Rental Operations 313,195 367,469 Service Operations 132,622 137,257 Total segment assets 6,379,941 6,326,379 Non-segment assets 485,084 569,136 Consolidated assets $ 6,865,025 $ 6,895,515 |