Segment Reporting Disclosure [Text Block] | 12. Segment Information The following tables present reconciliations of Net Income Attributable to Boston Properties, Inc. Common Shareholders to the Company’s share of Net Operating Income and Net Income Attributable to Boston Properties Limited Partnership Common Unitholders to the Company’s share of Net Operating Income for the three and six months ended June 30, 2020 and 2019. Boston Properties, Inc. Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (in thousands) Net income attributable to Boston Properties, Inc. common shareholders $ 266,525 $ 164,318 $ 764,232 $ 262,431 Add: Preferred dividends 2,625 2,625 5,250 5,250 Noncontrolling interest—common units of the Operating Partnership 30,197 19,036 87,525 30,627 Noncontrolling interests in property partnerships (767) 17,482 18,719 36,312 Interest expense 107,142 102,357 208,733 203,366 Impairment loss — — — 24,038 Net operating income from unconsolidated joint ventures 27,911 24,715 56,669 50,064 Depreciation and amortization expense 178,188 177,411 349,282 342,005 Transaction costs 332 417 947 877 Payroll and related costs from management services contracts 2,484 2,403 5,721 5,798 General and administrative expense 37,743 35,071 74,197 76,833 Less: Net operating income attributable to noncontrolling interests in property partnerships 32,427 45,562 80,088 92,647 Gains (losses) from investments in securities 4,552 1,165 (893) 4,134 Interest and other income (loss) 1,305 3,615 4,322 7,368 Gains on sales of real estate 203,767 1,686 613,932 781 Income from unconsolidated joint ventures 1,832 47,964 1,463 48,177 Direct reimbursements of payroll and related costs from management services contracts 2,484 2,403 5,721 5,798 Development and management services revenue 8,125 9,986 16,004 19,263 Company’s share of Net Operating Income $ 397,888 $ 433,454 $ 850,638 $ 859,433 Boston Properties Limited Partnership Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (in thousands) Net income attributable to Boston Properties Limited Partnership common unitholders $ 301,975 $ 185,715 $ 868,308 $ 299,097 Add: Preferred distributions 2,625 2,625 5,250 5,250 Noncontrolling interests in property partnerships (767) 17,482 18,719 36,312 Interest expense 107,142 102,357 208,733 203,366 Impairment loss — — — 22,272 Net operating income from unconsolidated joint ventures 27,911 24,715 56,669 50,064 Depreciation and amortization expense 176,409 175,199 345,694 337,881 Transaction costs 332 417 947 877 Payroll and related costs from management services contracts 2,484 2,403 5,721 5,798 General and administrative expense 37,743 35,071 74,197 76,833 Less: Net operating income attributable to noncontrolling interests in property partnerships 32,427 45,562 80,088 92,647 Gains (losses) from investments in securities 4,552 1,165 (893) 4,134 Interest and other income (loss) 1,305 3,615 4,322 7,368 Gains on sales of real estate 207,241 1,835 626,895 930 Income from unconsolidated joint ventures 1,832 47,964 1,463 48,177 Direct reimbursements of payroll and related costs from management services contracts 2,484 2,403 5,721 5,798 Development and management services revenue 8,125 9,986 16,004 19,263 Company’s share of Net Operating Income $ 397,888 $ 433,454 $ 850,638 $ 859,433 Net operating income (“NOI”) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders, as applicable, the most directly comparable GAAP financial measures, plus (1) preferred dividends/distributions, net income attributable to noncontrolling interests, interest expense, impairment loss, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts and corporate general and administrative expense less (2) gains (losses) from investments in securities, interest and other income (loss), gains on sales of real estate, income from unconsolidated joint ventures, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue. The Company believes NOI is useful to investors as a performance measure and believes it provides useful information to investors regarding its results of operations and financial condition because, when compared across periods, it reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense, because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs or real estate companies that define NOI differently. The Company’s internal reporting utilizes its share of NOI, which includes its share of NOI from consolidated and unconsolidated joint ventures, which is a non-GAAP financial measure that is calculated as the consolidated amount, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s economic percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ economic percentage ownership interests and, in some cases, after priority allocations, income allocation to private REIT shareholders and their share of fees due to the Company). The Company’s share of NOI from unconsolidated joint ventures does not include its share of gains on sale of real estate from unconsolidated joint ventures, which is included within Income From Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations. Management utilizes its share of NOI in assessing its performance as the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, the presentations of the Company’s share of NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Preferred dividends/distributions, interest expense, impairment loss, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts, corporate general and administrative expense, gains (losses) from investments in securities, interest and other income (loss), gains on sales of real estate, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue are not included in NOI and are provided as reconciling items to the Company’s reconciliations of its share of NOI to net income attributable to common shareholders/unitholders. The Company’s segments are based on the Company’s method of internal reporting which classifies its operations by geographic area. The Company’s segments by geographic area are Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company also presents information for each segment by property type, including Office, Residential and Hotel. Included within the Office property type are commercial office and retail leases, as well as parking revenue. Upon the adoption of ASC 842, any write-off for bad debt, including accrued rent, will be recorded as a reduction to lease revenue. As a result of COVID-19, during the three and six months ended June 30, 2020, the Company wrote off approximately $35.9 million and $37.4 million, respectively, related to accrued rent balances and approximately $18.0 million and $18.9 million, respectively, related to accounts receivable balances. The write-offs were for tenants, primarily in the retail sector, that either terminated their leases or that the Company considered their accrued rent and/or accounts receivable balances no longer probable of collection. In addition, parking and other revenue for the three and six months ended June 30, 2020 decreased by approximately $12.4 million and $12.8 million, respectively, compared to 2019. These decreases were primarily in transient and monthly parking revenue. The degree to which the Company’s commercial and retail tenants’ and parking operators’ businesses are, or will continue to be, negatively impacted by COVID-19, including by measures intended to reduce its spread, such as mandatory business closures and “stay-at-home” orders, could result in a reduction in the Company’s cash flows or require that the Company write off additional accrued rent and/or accounts receivable balances, and this could have a material adverse effect on lease revenue and thus the results of the Company’s Office property type. The Boston Marriott Cambridge closed in March 2020 and did not re-open during the second quarter. The Company is uncertain as to when the hotel will re-open. The hotel is operating at a monthly deficit and its continued closure has had, and will continue to have, a material adverse impact on the hotel’s operations and thus the results of the Company’s Hotel property type. Information by geographic area and property type (dollars in thousands): For the three months ended June 30, 2020: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 218,351 $ — $ 204,242 $ 128,233 $ 83,837 $ 634,663 Residential 3,401 — — — 6,001 9,402 Hotel 99 — — — — 99 Total 221,851 — 204,242 128,233 89,838 644,164 % of Grand Totals 34.43 % — % 31.71 % 19.91 % 13.95 % 100.00 % Rental Expenses: Office 75,694 — 88,367 39,081 32,680 235,822 Residential 1,235 — — — 2,730 3,965 Hotel 1,973 — — — — 1,973 Total 78,902 — 88,367 39,081 35,410 241,760 % of Grand Totals 32.64 % — % 36.54 % 16.17 % 14.65 % 100.00 % Net operating income $ 142,949 $ — $ 115,875 $ 89,152 $ 54,428 $ 402,404 % of Grand Totals 35.52 % — % 28.80 % 22.15 % 13.53 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (10,576) — (21,851) — — (32,427) Add: Company’s share of net operating income from unconsolidated joint ventures 2,627 15,026 815 4,127 5,316 27,911 Company’s share of net operating income $ 135,000 $ 15,026 $ 94,839 $ 93,279 $ 59,744 $ 397,888 % of Grand Totals 33.92 % 3.78 % 23.84 % 23.44 % 15.02 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. For the three months ended June 30, 2019: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 217,961 $ — $ 251,556 $ 131,506 $ 96,486 $ 697,509 Residential 3,222 — — — 5,777 8,999 Hotel 14,844 — — — — 14,844 Total 236,027 — 251,556 131,506 102,263 721,352 % of Grand Totals 32.72 % — % 34.87 % 18.23 % 14.18 % 100.00 % Rental Expenses: Office 77,660 — 96,809 43,708 35,672 253,849 Residential 1,279 — — — 2,843 4,122 Hotel 9,080 — — — — 9,080 Total 88,019 — 96,809 43,708 38,515 267,051 % of Grand Totals 32.96 % — % 36.25 % 16.37 % 14.42 % 100.00 % Net operating income $ 148,008 $ — $ 154,747 $ 87,798 $ 63,748 $ 454,301 % of Grand Totals 32.58 % — % 34.06 % 19.33 % 14.03 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (10,031) — (35,531) — — (45,562) Add: Company’s share of net operating income from unconsolidated joint ventures 818 15,454 1,696 — 6,747 24,715 Company’s share of net operating income $ 138,795 $ 15,454 $ 120,912 $ 87,798 $ 70,495 $ 433,454 % of Grand Totals 32.01 % 3.57 % 27.90 % 20.26 % 16.26 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. For the six months ended June 30, 2020: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 457,849 $ — $ 459,528 $ 264,972 $ 176,973 $ 1,359,322 Residential 7,469 — — — 11,889 19,358 Hotel 6,924 — — — — 6,924 Total 472,242 — 459,528 264,972 188,862 1,385,604 % of Grand Totals 34.09 % — % 33.16 % 19.12 % 13.63 % 100.00 % Rental Expenses: Office 158,239 — 187,507 81,650 67,328 494,724 Residential 2,575 — — — 5,454 8,029 Hotel 8,794 — — — — 8,794 Total 169,608 — 187,507 81,650 72,782 511,547 % of Grand Totals 33.16 % — % 36.65 % 15.96 % 14.23 % 100.00 % Net operating income $ 302,634 $ — $ 272,021 $ 183,322 $ 116,080 $ 874,057 % of Grand Totals 34.63 % — % 31.12 % 20.97 % 13.28 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (21,239) — (58,849) — — (80,088) Add: Company’s share of net operating income from unconsolidated joint ventures 5,726 30,956 1,571 7,286 11,130 56,669 Company’s share of net operating income $ 287,121 $ 30,956 $ 214,743 $ 190,608 $ 127,210 $ 850,638 % of Grand Totals 33.76 % 3.64 % 25.24 % 22.41 % 14.95 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. For the six months ended June 30, 2019: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 435,372 $ — $ 510,187 $ 255,561 $ 192,831 $ 1,393,951 Residential 5,923 — — — 10,791 16,714 Hotel 23,782 — — — — 23,782 Total 465,077 — 510,187 255,561 203,622 1,434,447 % of Grand Totals 32.42 % — % 35.56 % 17.82 % 14.20 % 100.00 % Rental Expenses: Office 157,160 — 193,780 84,833 71,819 507,592 Residential 2,485 — — — 5,411 7,896 Hotel 16,943 — — — — 16,943 Total 176,588 — 193,780 84,833 77,230 532,431 % of Grand Totals 33.17 % — % 36.39 % 15.93 % 14.51 % 100.00 % Net operating income $ 288,489 $ — $ 316,407 $ 170,728 $ 126,392 $ 902,016 % of Grand Totals 31.98 % — % 35.08 % 18.93 % 14.01 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (19,404) — (72,795) (448) — (92,647) Add: Company’s share of net operating income from unconsolidated joint ventures 1,590 31,162 3,482 — 13,830 50,064 Company’s share of net operating income $ 270,675 $ 31,162 $ 247,094 $ 170,280 $ 140,222 $ 859,433 % of Grand Totals 31.49 % 3.63 % 28.75 % 19.81 % 16.32 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. |