XML 46 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation and Equity (Tables)
 3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Restricted and Conditional Award Activity
Nonvested restricted share awards, or RSAs, RSUs, and PSUs at March 31, 2018 and changes during the three months ended March 31, 2018 were as follows:
 
RSA and RSU Awards
 
PSU Awards
 
Shares
 
Weighted-Average
Grant Date
Fair Value
 
Shares
 
Weighted-Average
Grant Date
Fair Value
Nonvested at January 1, 2018
324,339

 
$
61.43

 
281,299

 
$
74.57

Granted (a)
123,485

 
64.38

 
75,864

 
75.81

Vested (b)
(167,813
)
 
61.89

 
(66,632
)
 
76.96

Forfeited
(324
)
 
61.62

 
—

 
—

Adjustment (c)
—

 
—

 
38,794

 
76.01

Nonvested at March 31, 2018 (d)
279,687

 
$
62.46

 
329,325

 
$
78.56

__________
(a)
The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the three months ended March 31, 2018, we used a risk-free interest rate of 2.2%, an expected volatility rate of 17.2%, and assumed a dividend yield of zero.
(b)
The grant date fair value of shares vested during the three months ended March 31, 2018 was $15.5 million. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At March 31, 2018 and December 31, 2017, we had an obligation to issue 874,542 and 1,140,632 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $36.1 million and $46.7 million, respectively.
(c)
Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments at March 31, 2018 to reflect the number of shares expected to be issued when the PSUs vest.
(d)
At March 31, 2018, total unrecognized compensation expense related to these awards was approximately $27.9 million, with an aggregate weighted-average remaining term of 2.2 years.
Earnings Per Share Reconciliation
The following table summarizes basic and diluted earnings (in thousands, except share amounts):
 
Three Months Ended March 31,
 
2018
 
2017
Net income attributable to W. P. Carey
$
65,274

 
$
57,484

Net income attributable to nonvested participating RSUs and RSAs
(85
)
 
(202
)
Net income — basic and diluted
$
65,189

 
$
57,282

 
 
 
 
Weighted-average shares outstanding — basic
108,057,940

 
107,562,484

Effect of dilutive securities
153,996

 
201,795

Weighted-average shares outstanding — diluted
108,211,936

 
107,764,279
Reclassification Out of Accumulated Other Comprehensive Income
The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands):
 
Three Months Ended March 31, 2018
 
Gains and (Losses) on Derivative Instruments
 
Foreign Currency Translation Adjustments
 
Gains and (Losses) on Investments
 
Total
Beginning balance
$
9,172

 
$
(245,022
)
 
$
(161
)
 
$
(236,011
)
Other comprehensive income before reclassifications
(7,014
)
 
18,516

 
428

 
11,930

Amounts reclassified from accumulated other comprehensive loss to:
 
 
 
 
 
 
 
Interest expense
211

 
—

 
—

 
211

Other gains and (losses)
(1,589
)
 
—

 
—

 
(1,589
)
Total
(1,378
)
 
—

 
—

 
(1,378
)
Net current period other comprehensive income
(8,392
)
 
18,516

 
428

 
10,552

Net current period other comprehensive gain attributable to noncontrolling interests
3

 
(3,782
)
 
—

 
(3,779
)
Ending balance
$
783

 
$
(230,288
)
 
$
267

 
$
(229,238
)

 
Three Months Ended March 31, 2017
 
Gains and (Losses) on Derivative Instruments
 
Foreign Currency Translation Adjustments
 
Gains and (Losses) on Investments
 
Total
Beginning balance
$
46,935

 
$
(301,330
)
 
$
(90
)
 
$
(254,485
)
Other comprehensive income before reclassifications
(2,626
)
 
14,750

 
(253
)
 
11,871

Amounts reclassified from accumulated other comprehensive loss to:
 
 
 
 
 
 
 
Interest expense
398

 
—

 
—

 
398

Other gains and (losses)
(3,445
)
 
—

 
—

 
(3,445
)
Total
(3,047
)
 
—

 
—

 
(3,047
)
Net current period other comprehensive income
(5,673
)
 
14,750

 
(253
)
 
8,824

Net current period other comprehensive gain attributable to noncontrolling interests
(3
)
 
(570
)
 
—

 
(573
)
Ending balance
$
41,259

 
$
(287,150
)
 
$
(343
)
 
$
(246,234
)