Goodwill and Other Intangibles

6 Months Ended

Jun. 30, 2021

Goodwill And Intangible Assets Liabilities Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other IntangiblesWe have recorded net lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from three years to 48 years. In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements.

Goodwill within our Real Estate segment decreased by $3.5 million during the six months ended June 30, 2021 due to foreign currency translation adjustments, from $881.5 million as of December 31, 2020 to $878.0 million as of June 30, 2021. Goodwill within our Investment Management segment was $29.3 million as of June 30, 2021, unchanged from December 31, 2020.

Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands):

	June 30, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-Lived Intangible Assets
Internal-use software development costs	$	19,333	$	(17,119)	$	2,214	$	19,204	$	(15,711)	$	3,493
Trade name	3,975		(3,184)		791		3,975		(2,786)		1,189
	23,308		(20,303)		3,005		23,179		(18,497)		4,682
Lease Intangibles:
In-place lease	2,282,941		(884,875)		1,398,066		2,181,584		(828,219)		1,353,365
Above-market rent	868,970		(468,924)		400,046		881,159		(440,952)		440,207
	3,151,911		(1,353,799)		1,798,112		3,062,743		(1,269,171)		1,793,572
Indefinite-Lived Goodwill
Goodwill	907,295		—		907,295		910,818		—		910,818
Total intangible assets	$	4,082,514	$	(1,374,102)	$	2,708,412	$	3,996,740	$	(1,287,668)	$	2,709,072
Finite-Lived Intangible Liabilities
Below-market rent	$	(277,704)	$	97,348	$	(180,356)	$	(270,730)	$	90,193	$	(180,537)
Indefinite-Lived Intangible Liabilities
Below-market purchase option	(16,711)		—		(16,711)		(16,711)		—		(16,711)
Total intangible liabilities	$	(294,415)	$	97,348	$	(197,067)	$	(287,441)	$	90,193	$	(197,248)

During the six months ended June 30, 2021, the U.S. dollar strengthened against the euro, resulting in a decrease of $16.3 million in the carrying value of our net intangible assets from December 31, 2020 to June 30, 2021. Net amortization of intangibles, including the effect of foreign currency translation, was $57.6 million and $56.8 million for the three months ended June 30, 2021 and 2020, respectively, and $111.6 million and $117.3 million for the six months ended June 30, 2021 and 2020, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization.