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

Annual report pursuant to Section 13 and 15(d)

Accounting Policies Accounting Policies (Tables)

Accounting Policies Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Notes Receivable Included In Accounts Receivable

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



	December 31, 2011		December 31, 2010
Notes receivable, net	$	7.3	$	8.1

Deferred Financing Costs

As of December 31, 2011 and 2010 deferred financing costs were included in prepaid expenses and other assets as follows (in millions):



	December 31,
	2011					2010
	Gross Carrying Value		Accumulated Amortization	Net		Gross Carrying Value		Accumulated Amortization	Net
Deferred financing costs	$	16.1	7.6	$	8.5	$	13.8	6.7	$	7.1

Amortization of Deferred Financing Costs

Amortization of deferred financing costs for the three years ended December 31, 2011 was as follows (in millions):



	2011		2010		2009
Deferred financing costs amortization	$	2.3	$	2.4	$	3.1

Deferred Leasing Costs

As of December 31, 2011 and 2010 deferred leasing costs were included in prepaid expenses and other assets as follows (in millions):



	December 31,
	2011					2010
	Gross Carrying Value		Accumulated Amortization	Net		Gross Carrying Value		Accumulated Amortization	Net
Deferred leasing costs	$	33.4	12.7	$	20.7	$	31.6	12.1	$	19.5

Amortization of Deferred Leasing Costs

Amortization and writes-offs of deferred leasing costs for the three years ended December 31, 2011 were as follows (in millions):



	2011		2010		2009
Deferred leasing costs amortization	$	4.6	$	4.4	$	4.0

Deferred Leasing Incentives

As of December 31, 2011 and 2010 deferred leasing incentives were included in prepaid expenses and other assets as follows (in millions):



	December 31,
	2011					2010
	Gross Carrying Value		Accumulated Amortization	Net		Gross Carrying Value		Accumulated Amortization	Net
Deferred leasing incentives	$	4.8	1.0	$	3.8	$	2.6	0.4	$	2.2

Amortization of Deferred Leasing Incentives

Amortization and write-offs of deferred leasing costs for the three years ended December 31, 2011 were as follows (in millions):



	2011		2010		2009
Deferred leasing incentives amortization	$	0.7	$	0.2	$	0.1

Depreciation Expense

Real estate depreciation expense from continuing operations for the three years ended December 31, 2011 was as follows (in millions):



	2011		2010		2009
Real estate depreciation	$	71.2	$	64.8	$	62.3

Capitalized Interest Expense

Total interest expense capitalized to real estate assets related to development and major renovation activities for the three years ended December 31, 2010 was as follows (in millions):



	2011		2010		2009
Capitalized interest	$	0.7	$	0.9	$	1.4

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, 2011 and 2010 are as follows (in millions):



	December 31,
	2011						2010
	Gross Carrying Value		Accumulated Amortization		Net		Gross Carrying Value		Accumulated Amortization		Net
Tenant origination costs	$	55.7	$	25.5	$	30.2	$	40.5	$	19.6	$	20.9
Leasing commissions/absorption costs	$	86.7	$	34.8	$	51.9	$	58.0	$	24.9	$	33.1
Net lease intangible assets	$	14.5	$	5.7	$	8.8	$	7.6	$	4.3	$	3.3
Net lease intangible liabilities	$	32.0	$	19.3	$	12.7	$	29.8	$	16.1	$	13.7
Below-market ground lease intangible asset	$	12.1	$	0.8	$	11.3	$	12.1	$	0.6	$	11.5

Amortization of Fair Value In-Place Leases

Amortization of these components combined was as follows (in millions):



	2011		2010		2009
Amortization	$	15.4	$	7.7	$	7.3

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

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



	Amortization
2012	$	19.4
2013	$	15.8
2014	$	13.7
2015	$	11.3
2016	$	8.2