Cousins Properties Incorporated 2006 Annual Report - SNL Financial

The vesting period for stock options and RSUs also changed for those employees who are estimated to meet
the retirement feature in less time than the original vesting period. See Note 7 in Notes to Consolidated
Financial Statements included in Item 8 for more information; and
As previously discussed in fee income above, general and administrative expense for all periods presented
reflect salary, benefits and other expenses reimbursed by third party and joint venture management
contracts, which increased $940,000 between 2005 and 2006.
The salary and related benefits increase between 2005 and 2006 was partially offset by a $4.6 increase in
capitalized salaries of development and leasing personnel due to a larger number of projects under
development between 2005 and 2006.
Additionally, the increase in general and administrative expenses between 2005 and 2006 was partially offset
by a decrease in charitable contributions of $4.5 million, as the Company contributed this amount in 2005 toward
establishment of a charitable foundation.
General and administrative expenses increased $8.9 million between 2004 and 2005 as a result of the
following:
Increase of $1.9 million in reimbursements from third party and joint venture management contracts
primarily due to an increase in the Company’s third-party and joint venture managed properties;
Increase in salaries and related benefits due to increased development personnel in the Retail and Industrial
Divisions and to increased personnel in the Office/Multi-Family Division related to the acquisition of The
Gellerstedt Group;
An expense of $350,000 recognized in 2005 associated with a funding obligation for its 401(k) and profit
sharing plan; and
A $4.5 million charitable contribution expense, as discussed above.
The increases in general and administrative expense between 2004 and 2005 were partially offset by increases
in capitalized salaries of development and leasing personnel due to a larger number of projects under development
between 2004 and 2005.
Depreciation and Amortization. Depreciation and amortization increased $5.1 million between 2005 and
2006 and decreased $2.8 million between 2004 and 2005. The 2006 increase was due to the following:
Increases resulting from the opening of The Avenue Carriage Crossing, San Jose MarketCenter and The
Avenue Webb Gin and the acquisitions of 191 Peachtree Tower and Cosmopolitan Center;
Increase of $579,000 at 3301 Windy Ridge Parkway where amortization of certain tenant costs was
accelerated upon the tenant’s partial lease termination;
Decrease of $3.6 million related to the five retail properties contributed to the venture with Prudential;
Decrease of $858,000 at Inforum as first generation tenant improvement and leasing costs which were
assigned to these assets upon purchase of this property in 1999 are now fully amortized; and
Decrease of $650,000 from the transfer of 615 Peachtree Street from operating properties to land held for
investment or future development.
The 2005 decrease was due to the following:
Decrease resulting from the 2004 sales of 333 John Carlyle, 1900 Duke Street and 101 Independence Center;
Decrease of $3.5 million at the Inforum related to the fully amortized assets discussed above; and
Increase related to the aforementioned opening and acquisition of office buildings and retail centers.
Interest Expense. Interest expense increased $2.0 million between 2005 and 2006 and decreased $5.5 million
between 2004 and 2005. Interest expense before capitalization increased $5.7 million in 2006 due to higher average
balances outstanding on the credit facility during 2006 over 2005, the new construction facility entered into during
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