Cousins Properties Incorporated 2006 Annual Report - SNL Financial

outstanding. The income amounts used in the Company’s EPS calculations are reduced for the effect of preferred
dividends and are the same for both basic and diluted EPS. Share data is as follows (in thousands):
2006 2005 2004
Weighted-average shares-basic. ..............................
Dilutive potential common shares:
50,655 49,989 49,005
Stock options ......................................... 1,676 1,630 1,911
Restricted stock ........................................ 182 128 100
Weighted-average shares-diluted ............................. 52,513 51,747 51,016
Anti-dilutive options at period end not included .................. 952 871 918
Cash and Cash Equivalents and Restricted Cash
Cash and cash equivalents include cash and highly liquid money market instruments. Highly liquid money
market instruments include securities and repurchase agreements with original maturities of three months or less,
money market mutual funds and United States Treasury Bills with maturities of 30 days or less. Restricted cash
primarily represents amounts restricted under debt agreements for future capital expenditures or amounts restricted
under purchase agreements to be expended only for prescribed use.
New Accounting Pronouncements
In addition to the new FASB pronouncement, FIN 48, previously discussed in the Income Tax section, the
Securities and Exchange Commission issued SAB No. 108, “Considering the Effects of Prior Year Misstatements
When Quantifying Misstatements in Current Year Financial Statements,” in September 2006. This statement
requires that registrants analyze the effect of financial statement misstatements on both their balance sheet and their
income statement and contains guidance on correcting errors under this approach. The Company adopted SAB 108
on December 31, 2006 and, in accordance with the initial application provisions of SAB 108, adjusted retained
earnings as of January 1, 2006. All of these adjustments were considered to be immaterial individually and in the
aggregate in prior years based on the Company’s historical method of determining materiality. See Note 15 for
further discussion.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions that affect the amounts reported in the
accompanying financial statements and notes. Actual results could differ from those estimates.
Reclassifications
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In periods prior to 2006, the Company recorded reimbursements of salary and benefits of on-site employees
pursuant to management agreements with third parties and unconsolidated joint ventures as reductions of general
and administrative expenses. In 2006, the Company determined that these amounts should have been recorded as
revenues in accordance with EITF No. 99-19 and, accordingly, began recording these reimbursements in Fee
Income on the Consolidated Statements of Income. Prior period amounts have been revised to conform to the 2006
presentation. As a result, Fee Income and General and Administrative Expenses have increased by $15.1 million in
2005 and $13.2 million in 2004 when compared to amounts previously reported.
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