Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We evaluate our results from operations by our two major business segments — Real Estate Ownership and Investment Management (Note 1). The following tables present a summary of comparative results and assets for these business segments (in thousands):

	Years Ended December 31,
	2014			2013			2012
Real Estate Ownership
Revenues	$	643,130		$	315,965		$	129,181
Operating expenses (a)	(404,674		)	(178,962		)	(92,441		)
Interest expense	(178,122		)	(103,728		)	(46,448		)
Other income and expenses, excluding interest expense	137,811			61,151			84,245
Benefit from (provision) for income taxes	916			(4,703		)	(4,001		)
Gain (loss) on sale of real estate, net of tax	1,581			(332		)	2,339
Net income attributable to noncontrolling interests	(5,573		)	(33,056		)	(3,245		)
Net (loss) income attributable to noncontrolling interests of discontinued operations	(179		)	23,941			704
Income from continuing operations attributable to W. P. Carey	$	194,890		$	80,276		$	70,334
Investment Management
Revenues (b)	$	263,063		$	173,886		$	223,180
Operating expenses (b) (c)	(232,704		)	(173,744		)	(207,050		)
Other income and expenses, excluding interest expense	275			1,001			1,280
(Provision for) benefit from income taxes	(18,525		)	3,451			(2,771		)
Net (income) loss attributable to noncontrolling interests	(812		)	120			2,638
Net loss (income) attributable to redeemable noncontrolling interest	142			(353		)	(40		)
Income from continuing operations attributable to W. P. Carey	$	11,439		$	4,361		$	17,237
Total Company
Revenues (b)	$	906,193		$	489,851		$	352,361
Operating expenses (a) (b) (c)	(637,378		)	(352,706		)	(299,491		)
Interest expense	(178,122		)	(103,728		)	(46,448		)
Other income and expenses, excluding interest expense	138,086			62,152			85,525
Provision for income taxes	(17,609		)	(1,252		)	(6,772		)
Gain (loss) on sale of real estate, net of tax	1,581			(332		)	2,339
Net income attributable to noncontrolling interests	(6,385		)	(32,936		)	(607		)
Net (loss) income attributable to noncontrolling interests of discontinued operations	(179		)	23,941			704
Net loss (income) attributable to redeemable noncontrolling interest	142			(353		)	(40		)
Income from continuing operations attributable to W. P. Carey	$	206,329		$	84,637		$	87,571

	Total Long-Lived Assets (d) at December 31,				Total Assets at December 31,
	2014		2013		2014		2013
Real Estate Ownership	$	5,880,958	$	3,333,654	$	8,459,406	$	4,537,853
Investment Management	25,000		—		177,922		141,097
Total Company	$	5,905,958	$	3,333,654	$	8,637,328	$	4,678,950

__________

(a) Includes expenses incurred of $30.5 million and $5.0 million related to the CPA^®:16 Merger for the years ended December 31, 2014 and 2013, respectively. Also includes expenses incurred of $31.7 million related to the CPA^®:15 Merger for the year ended December 31, 2012.

(b) Included in revenues and operating expenses are reimbursable costs from affiliates totaling $130.2 million, $73.6 million, and $98.2 million for the years ended December 31, 2014, 2013, and 2012, respectively.

(c) Includes Stock-based compensation expense of$31.1 million, $37.3 million, and $26.2 millionfor theyears ended December 31, 2014, 2013, and 2012, respectively, of which$18.4 million,$30.0 million, and$25.8 million, respectively, were included in the Investment Management segment.

(d) Consists of Net investments in real estate and Equity investments in real estate, the Managed REITs and BDC. Total long-lived assets for our Investment Management segment consists of our equity investment in CCIF (Note 7).

Our portfolio is comprised of domestic and international investments. At December 31, 2014, our international investments within our Real Estate Ownership segment were comprised of investments in Australia, France, Japan, Poland, Germany, Spain, Belgium, Finland, the Netherlands, Thailand, Canada, Malaysia, Hungary, Mexico, Sweden, Norway, and the United Kingdom. There are no investments in foreign jurisdictions within our Investment Management segment. Other than Germany, no country or tenant individually comprised more than 10% of our total lease revenues or total long-lived assets at December 31, 2014. The following tables present the geographic information (in thousands):

	Years Ended December 31,
	2014			2013			2012
Domestic
Revenues	$	424,325		$	218,758		$	100,620
Operating expenses	(284,508		)	(131,207		)	(79,640		)
Interest expense	(117,603		)	(65,978		)	(35,238		)
Other income and expenses, excluding interest expense	138,957			57,852			63,252
(Provision for) benefit from income taxes	(3,582		)	19			(2,614		)
(Loss) gain on sale of real estate, net of tax	(5,119		)	(332		)	2,242
Net income attributable to noncontrolling interests	(3,670		)	(34,342		)	(2,631		)
Net (loss) income attributable to noncontrolling interests in discontinued operations	(177		)	24,069			706
Income from continuing operations attributable to W. P. Carey	$	148,623		$	68,839		$	46,697
Germany
Revenues	$	72,978		$	20,221		$	4,750
Operating expenses	(40,707		)	(2,933		)	(796		)
Interest expense	(18,880		)	(5,020		)	(1,258		)
Other income and expenses, excluding interest expense	(6,255		)	(2,950		)	3,279
Benefit from (provision for) income taxes	3,338			(1,663		)	(177		)
Net income attributable to noncontrolling interests	(1,581		)	(3,172		)	(870		)
Income from continuing operations attributable to W. P. Carey	$	8,893		$	4,483		$	4,928
Other International
Revenues	$	145,827		$	76,986		$	23,811
Operating expenses	(79,459		)	(44,822		)	(12,005		)
Interest expense	(41,639		)	(32,730		)	(9,952		)
Other income and expenses, excluding interest expense	5,109			6,249			17,714
Benefit from (provision for) income taxes	1,160			(3,059		)	(1,210		)
Gain on sale of real estate, net of tax	6,700			—			97
Net (income) loss attributable to noncontrolling interests	(322		)	4,458			256
Net loss attributable to noncontrolling interests in discontinued operations	(2		)	(128		)	(2		)
Income from continuing operations attributable to W. P. Carey	$	37,374		$	6,954		$	18,709
Total
Revenues	$	643,130		$	315,965		$	129,181
Operating expenses	(404,674		)	(178,962		)	(92,441		)
Interest expense	(178,122		)	(103,728		)	(46,448		)
Other income and expenses, excluding interest expense	137,811			61,151			84,245
Provision for income taxes	916			(4,703		)	(4,001		)
Gain (loss) on sale of real estate, net of tax	1,581			(332		)	2,339
Net income attributable to noncontrolling interests	(5,573		)	(33,056		)	(3,245		)
Net (loss) income attributable to noncontrolling interests in discontinued operations	(179		)	23,941			704
Income from continuing operations attributable to W. P. Carey	$	194,890		$	80,276		$	70,334

	December 31,
	2014		2013
Domestic
Long-lived assets (a)	$	3,804,424	$	2,408,869
Total assets	5,602,069		3,271,851
Germany
Long-lived assets (a)	$	603,369	$	314,423
Total assets	832,951		349,355
Other International
Long-lived assets (a)	$	1,473,165	$	610,362
Total assets	2,024,386		916,647
Total
Long-lived assets (a)	$	5,880,958	$	3,333,654
Total assets	8,459,406		4,537,853

__________

(a) Consists of Net investments in real estate and Equity investments in real estate, the Managed REITs and BDC, excluding our equity investment in CCIF (Note 7).