Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2016

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following tables present a summary of comparative results and assets for these business segments (in thousands):

Owned Real Estate



	Years Ended December 31,
	2016			2015			2014
Revenues
Lease revenues	$	663,463		$	656,956		$	573,829
Lease termination income and other	35,696			25,145			17,767
Operating property revenues	30,767			30,515			28,925
Reimbursable tenant costs	25,438			22,832			24,862
	755,364			735,448			645,383
Operating Expenses
Depreciation and amortization	272,274			276,236			233,099
Impairment charges	59,303			29,906			23,067
Property expenses, excluding reimbursable tenant costs	49,431			52,199			37,725
General and administrative	34,591			47,676			38,797
Reimbursable tenant costs	25,438			22,832			24,862
Stock-based compensation expense	5,224			7,873			12,659
Restructuring and other compensation	4,413			—			—
Property acquisition and other expenses	2,993			(9,908		)	34,465
	453,667			426,814			404,674
Other Income and Expenses
Interest expense	(183,409		)	(194,326		)	(178,122		)
Equity in earnings of equity method investments in the Managed REITs and real estate	62,724			52,972			44,116
Other income and (expenses)	3,665			1,952			(14,505		)
Gain on change in control of interests	—			—			105,947
	(117,020		)	(139,402		)	(42,564		)
Income from continuing operations before income taxes and gain on sale of real estate	184,677			169,232			198,145
Benefit from (provision for) income taxes	3,418			(17,948		)	916
Income from continuing operations before gain on sale of real estate	188,095			151,284			199,061
Income from discontinued operations, net of tax	—			—			33,318
Gain on sale of real estate, net of tax	71,318			6,487			1,581
Net Income from Owned Real Estate	259,413			157,771			233,960
Net income attributable to noncontrolling interests	(7,060		)	(10,961		)	(5,573		)
Net Income from Owned Real Estate Attributable to W. P. Carey	$	252,353		$	146,810		$	228,387

Investment Management



	Years Ended December 31,
	2016			2015			2014
Revenues
Reimbursable costs from affiliates	$	66,433		$	55,837		$	130,212
Asset management revenue	61,971			49,984			38,063
Structuring revenue	47,328			92,117			71,256
Dealer manager fees	8,002			4,794			23,532
Other advisory revenue	2,435			203			—
	186,169			202,935			263,063
Operating Expenses
Reimbursable costs from affiliates	66,433			55,837			130,212
General and administrative	47,761			55,496			52,791
Subadvisor fees	14,141			11,303			5,501
Dealer manager fees and expenses	12,808			11,403			21,760
Stock-based compensation expense	12,791			13,753			18,416
Restructuring and other compensation	7,512			—			—
Depreciation and amortization	4,236			4,079			4,024
Property acquisition and other expenses	2,384			2,144			—
	168,066			154,015			232,704
Other Income and Expenses
Other income and (expenses)	2,002			161			275
Equity in earnings (losses) of equity method investment in CCIF	1,995			(1,952		)	—
	3,997			(1,791		)	275
Income from continuing operations before income taxes	22,100			47,129			30,634
Provision for income taxes	(6,706		)	(19,673		)	(18,525		)
Net Income from Investment Management	15,394			27,456			12,109
Net income attributable to noncontrolling interests	—			(2,008		)	(812		)
Net loss attributable to redeemable noncontrolling interest	—			—			142
Net Income from Investment Management Attributable to W. P. Carey	$	15,394		$	25,448		$	11,439

Total Company



	Years Ended December 31,
	2016			2015			2014
Revenues	$	941,533		$	938,383		$	908,446
Operating expenses	621,733			580,829			637,378
Other income and (expenses)	(113,023		)	(141,193		)	(42,289		)
Provision for income taxes	(3,288		)	(37,621		)	(17,609		)
Income from discontinued operations, net of tax	—			—			33,318
Gain on sale of real estate, net of tax	71,318			6,487			1,581
Net income attributable to noncontrolling interests	(7,060		)	(12,969		)	(6,385		)
Net loss attributable to redeemable noncontrolling interest	—			—			142
Net income attributable to W. P. Carey	$	267,747		$	172,258		$	239,826

The following tables present the geographic information (in thousands):



	Years Ended December 31,
	2016			2015			2014
Domestic
Revenues	$	490,134		$	468,703		$	426,578
Operating expenses	(274,013		)	(296,265		)	(284,362		)
Interest expense	(149,615		)	(153,219		)	(117,603		)
Other income and expenses, excluding interest expense	59,683			50,891			146,156
Provision for income taxes	(4,808		)	(6,219		)	(3,238		)
Gain (loss) on sale of real estate, net of tax	56,492			2,941			(5,119		)
Net income attributable to noncontrolling interests	(7,591		)	(5,358		)	(4,233		)
Net loss attributable to noncontrolling interests in discontinued operations	—			—			(179		)
Income from continuing operations attributable to W. P. Carey	$	170,282		$	61,474		$	158,000
Germany
Revenues	$	68,372		$	65,777		$	72,978
Operating (expenses) benefits ^(a)	(28,473		)	818			(40,847		)
Interest expense	(15,681		)	(15,432		)	(18,880		)
Other income and expenses, excluding interest expense	649			4,175			(10,698		)
(Provision for) benefit from income taxes	(4,083		)	(4,357		)	3,163
Gain on sale of real estate, net of tax	—			21			—
Net income attributable to noncontrolling interests	252			(5,537		)	(1,017		)
Income from continuing operations attributable to W. P. Carey	$	21,036		$	45,465		$	4,699
Other International
Revenues	$	196,858		$	200,968		$	145,827
Operating expenses	(151,181		)	(131,367		)	(79,465		)
Interest expense	(18,113		)	(25,675		)	(41,639		)
Other income and expenses, excluding interest expense	6,057			(142		)	100
Benefit from (provision for) income taxes	12,309			(7,372		)	991
Gain on sale of real estate, net of tax	14,826			3,525			6,700
Net loss (income) attributable to noncontrolling interests	279			(66		)	(323		)
Income from continuing operations attributable to W. P. Carey	$	61,035		$	39,871		$	32,191
Total
Revenues	$	755,364		$	735,448		$	645,383
Operating expenses	(453,667		)	(426,814		)	(404,674		)
Interest expense	(183,409		)	(194,326		)	(178,122		)
Other income and expenses, excluding interest expense	66,389			54,924			135,558
Benefit from (provision for) income taxes	3,418			(17,948		)	916
Gain on sale of real estate, net of tax	71,318			6,487			1,581
Net income attributable to noncontrolling interests	(7,060		)	(10,961		)	(5,573		)
Net loss attributable to noncontrolling interests in discontinued operations	—			—			(179		)
Income from continuing operations attributable to W. P. Carey	$	252,353		$	146,810		$	194,890

Reconciliation Of Assets From Segment To Consolidated



	December 31,
	2016		2015
Domestic
Long-lived assets ^(b)	$	3,784,905	$	3,794,232
Total assets ^(c)	5,517,050		5,435,251
Germany
Long-lived assets ^(b)	$	545,672	$	581,283
Total assets ^(c)	718,397		790,895
Other International
Long-lived assets ^(b)	$	1,456,494	$	1,704,288
Total assets ^(c)	2,006,816		2,311,398
Total
Long-lived assets ^(b)	$	5,787,071	$	6,079,803
Total assets ^(c)	8,242,263		8,537,544

__________


(a)	Amount for the year ended December 31, 2015 includes a reversal of $25.0 million of liabilities for German real estate transfer taxes (Note 7).


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


(c)	In accordance with ASU 2015-03, we reclassified deferred financing costs from Other assets, net to Non-recourse debt, net, Senior Unsecured Notes, net, and Senior Unsecured Credit Facility - Term Loan, net as of December 31, 2015 (Note 2).



	Total Long-Lived Assets ^(a) at December 31,				Total Assets at December 31,
	2016		2015		2016		2015 ^(b)
Owned Real Estate	$	5,787,071	$	6,079,803	$	8,242,263	$	8,537,544
Investment Management	23,528		22,214		211,691		204,545
Total Company	$	5,810,599	$	6,102,017	$	8,453,954	$	8,742,089

__________


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


(b)	In accordance with ASU 2015-03, we reclassified deferred financing costs from Other assets, net to Non-recourse debt, net, Senior Unsecured Notes, net, and Senior Unsecured Credit Facility - Term Loan, net as of December 31, 2015 (Note 2).