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The following table provides a reconciliation of comprehensive income (in thousands): 

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## Investments 

We hold equity investments in certain publicly-traded companies and privately held entities primarily involved in the life science industry. All of our investments in publicly-traded companies are considered “available for sale” under the provisions of Statement of Financial Accounting Standards No. 115, “Accounting for Certain Investments in Debt and Equity Securities” (“SFAS 115”), and are recorded at fair value. Fair value has been determined by the closing trading price at the balance sheet date, with unrealized gains and losses shown as a separate component of stockholders’ equity. The classification of investments under SFAS 115 is determined at the time each investment is made, and such determination is reevaluated at each balance sheet date. The cost of investments sold is determined by the specific identification method, with realized gains and losses included in other income. 

Investments in privately held entities are generally accounted for under the cost method because we do not influence any operat- ing or financial policies of the entities in which we invest. Certain investments are accounted for under the equity method of account- ing under the provisions of Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in Common Stock” (“APB 18”) and Emerging Issues Task Force (“EITF”) Topic D-46, “Accounting for Limited Partnership Investments”. Pursuant to APB 18, the equity method of accounting should be used when an investor has “the ability to exercise significant influ- ence over operating and financial policies of an investee even though the investor holds 50% or less of the voting stock”. EITF Topic D-46 further clarifies the Securities and Exchange Commission’s position on the accounting for limited partnerships and provides that the equity method of accounting be used unless the investor’s interest “is so minor that the limited partner may have virtually no influence over partnership operating and financial policies”. Under the equity method of accounting, we record our investment initially at cost and adjust the carrying amount of the investment to recognize our share of the earnings or losses of the investee subsequent to the date of our investment. 

For all of our investments, if a decline in the fair value of an investment below its carrying value is determined to be other than temporary, such investment is written down to its estimated fair value with a non-cash charge to current earnings. 

The factors that we consider in making these assessments include, but are not limited to, market prices, market conditions, prospects for favorable or unfavorable clinical trial results, new product initiatives and new collaborative agreements. As a result of these assessments, during 2002 we recognized aggregate non-cash impairment charges of $2,545,000 for other than temporary declines in the fair value of investments. 

## Rental Properties and Properties Under Development 

In accordance with Statement of Financial Accounting Standards No. 141, “Business Combinations” (“SFAS 141”), we perform the following procedures when making an allocation of the purchase price of real estate: 1) estimate the value of the real estate as of the acquisition date on an “as if vacant” basis, 2) allocate the “as if vacant” value among land, land improvements, buildings, building improvements, tenant improvements and equipment, 3) calculate the value of the intangibles as the difference between the “as if vacant” value and the purchase price, and 4) allocate the intangible value to above, below and at market leases, origination costs associated with in-place leases, tenant relationships and other intangible assets. 

The values allocated to land improvements, buildings, building improvements, tenant improvements and equipment are depreciat- ed on a straight-line basis using an estimated life of 20 years for land improvements, 40 years for buildings and building improve- ments, the respective lease term for tenant improvements and the estimated useful life of equipment. The values of above and below market leases are amortized over the life of the related lease and recorded as either an increase (for below market leases) or a decrease (for above market leases) to rental income. The values of at-market leases and origination costs are classified as leasing costs, included in other assets on our balance sheets and amortized over the remaining life of the lease. The values of other intangible assets are amortized over the estimated useful life. 

