Washington Real Estate Investment Trust Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Notes Receivable Included In Accounts Receivable

We include the following notes receivable balances in our accounts receivable balances (in thousands):



	December 31,
	2012		2010
Notes receivable, net	$	7,297	$	7,348

Deferred Financing Costs

As of December 31, 2012 and 2011 deferred financing costs were included in prepaid expenses and other assets were as follows (in thousands):



	December 31,
	2012						2011
	Gross Carrying Value		Accumulated Amortization		Net		Gross Carrying Value		Accumulated Amortization		Net
Deferred financing costs	$	19,622	$	8,902	$	10,720	$	16,131	$	7,580	$	8,551

Amortization of Deferred Financing Costs

Amortization of deferred financing costs from continuing operations for the three years ended December 31, 2012 was as follows (in thousands):



	Year Ended December 31,
	2012		2011		2010
Amortization of deferred financing costs	$	2,478	$	2,262	$	2,413

Deferred Leasing Costs

As of December 31, 2012 and 2011, deferred leasing costs included in prepaid expenses and other assets were as follows (in thousands):



	December 31,
	2012						2011
	Gross Carrying Value		Accumulated Amortization		Net		Gross Carrying Value		Accumulated Amortization		Net
Deferred leasing costs	$	39,159	$	16,348	$	22,811	$	33,011	$	12,511	$	20,500

Amortization of Deferred Leasing Costs

Amortization and writes-offs of deferred leasing costs from continuing operations for the three years ended December 31, 2012 were as follows (in thousands):



	Year Ended December 31,
	2012		2011		2010
Amortization of deferred leasing costs	$	4,514	$	4,530	$	4,357

Deferred Leasing Incentives

As of December 31, 2012 and 2011, deferred leasing incentives included in prepaid expenses and other assets were as follows (in thousands):



	December 31,
	2012						2011
	Gross Carrying Value		Accumulated Amortization		Net		Gross Carrying Value		Accumulated Amortization		Net
Deferred leasing incentives	$	6,578	$	1,698	$	4,880	$	4,651	$	909	$	3,742

Amortization of Deferred Leasing Incentives

Amortization and write-offs of deferred leasing costs from continuing operations for the three years ended December 31, 2012 were as follows (in thousands):



	Year Ended December 31,
	2012		2011		2010
Amortization of deferred leasing incentives	$	789	$	664	$	208

Depreciation Expense

Real estate depreciation expense from continuing operations for the three years ended December 31, 2012 was as follows (in thousands):



	Year Ended December 31,
	2012		2011		2010
Real estate depreciation	$	76,824	$	69,753	$	63,372

Capitalized Interest Expense

nterest expense from continuing operations and interest capitalized to real estate assets related to development and major renovation activities for the three years ended December 31, 2012 were as follows (in thousands):



	Year Ended December 31,
	2012		2011		2010
Total interest expense from continuing operations	$	66,385	$	66,952	$	67,823
Capitalized interest	1,688		738		858
Interest expense, net of capitalized interest	$	64,697	$	66,214	$	66,965

Components of Fair Value of In-Place Leases

Balances, net of accumulated depreciation or amortization, as appropriate, of the components of the fair value of in-place leases at December 31, 2012 and 2011 were as follows (in thousands):



	December 31,
	2012						2011
	Gross Carrying Value		Accumulated Amortization		Net		Gross Carrying Value		Accumulated Amortization		Net
Tenant origination costs	$	58,444	$	32,839	$	25,605	$	55,640	$	25,479	$	30,161
Leasing commissions/absorption costs	90,327		48,163		42,164		86,705		34,738		51,967
Net lease intangible assets	14,794		7,665		7,129		14,422		5,679		8,743
Net lease intangible liabilities	32,093		22,336		9,757		31,991		19,293		12,698
Below-market ground lease intangible asset	12,080		956		11,124		12,080		766		11,314

Amortization of Fair Value In-Place Leases

Amortization of these combined components from continuing operations for the three years ended December 31, 2012 were as follows (in thousands):



	Year Ended December 31,
	2012		2011		2010
Amortization	$	20,636	$	15,360	$	7,643

Components of Fair Value of In-Place Leases - Future Amortization

Amortization of these combined components from continuing operations over the next five years is projected to be as follows (in thousands):



2013	$	17,382
2014	14,837
2015	12,228
2016	8,984
2017	5,548