XML 35 R19.htm IDEA: XBRL DOCUMENT v3.24.0.1
Goodwill and Other Intangibles
 12 Months Ended
Dec. 31, 2023
Goodwill And Intangible Assets Liabilities Disclosure [Abstract]  
Goodwill and Other Intangibles Goodwill and Other Intangibles
We have recorded lease and internal-use software development intangibles that are being amortized over periods ranging from one year 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 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.

Net lease intangibles recorded in connection with property acquisitions during the year ended December 31, 2023 are described in Note 6.

In connection with certain business combinations, including the CPA:18 Merger (Note 4), we recorded goodwill as a result of consideration exceeding the fair values of the assets acquired and liabilities assumed (Note 2). The goodwill was attributed to our Real Estate reporting unit as it relates to the real estate assets we acquired in such business combinations. The following table presents a reconciliation of our goodwill (in thousands):
Real EstateInvestment ManagementTotal
Balance at January 1, 2021
$881,484 $29,334 $910,818 
Foreign currency translation adjustments(9,289)— (9,289)
Balance at December 31, 2021
872,195 29,334 901,529 
Acquisition of CPA:18 – Global (Note 4)
172,346 — 172,346 
Foreign currency translation adjustments(7,129)— (7,129)
Impairment charges (Note 10)
— (29,334)(29,334)
Balance at December 31, 2022
1,037,412 — 1,037,412 
Allocation of goodwill distributed to NLOP (Note 3)
(61,737)— (61,737)
Foreign currency translation adjustments2,614 — 2,614 
Balance at December 31, 2023
$978,289 $— $978,289 

Current accounting guidance requires that we test for the recoverability of goodwill at the reporting unit level. The test for recoverability must be conducted at least annually, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. We performed (i) our annual test for impairment in October 2023 and (ii) a test for impairment in connection with the Spin-Off in November 2023, for goodwill recorded in our Real Estate segment and found no impairment indicated.
Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands):
December 31,
20232022
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Finite-Lived Intangible Assets
Internal-use software development costs
$20,745 $(19,569)$1,176 $19,812 $(19,144)$668 
20,745 (19,569)1,176 19,812 (19,144)668 
Lease Intangibles:
In-place lease2,168,739 (934,138)1,234,601 2,523,318 (1,061,235)1,462,083 
Above-market rent706,773 (481,554)225,219 833,751 (507,436)326,315 
2,875,512 (1,415,692)1,459,820 3,357,069 (1,568,671)1,788,398 
Goodwill
Goodwill978,289 — 978,289 1,037,412 — 1,037,412 
Total intangible assets$3,874,546 $(1,435,261)$2,439,285 $4,414,293 $(1,587,815)$2,826,478 
Finite-Lived Intangible Liabilities
Below-market rent$(203,413)$66,541 $(136,872)$(293,160)$125,287 $(167,873)
Indefinite-Lived Intangible Liabilities
Below-market purchase option— — — (16,711)— (16,711)
Total intangible liabilities$(203,413)$66,541 $(136,872)$(309,871)$125,287 $(184,584)

During 2023, the U.S. dollar weakened against the euro, resulting in an increase of $18.8 million in the carrying value of our net intangible assets from December 31, 2022 to December 31, 2023. See Note 3 for a description of intangible assets and liabilities derecognized in connection with the Spin-Off. See Note 7 for a description of intangible assets and liabilities reclassified to net investments in sales-type leases during the year ended December 31, 2023.

Net amortization of intangibles, including the effect of foreign currency translation, was $247.5 million, $229.2 million, and $236.6 million for the years ended December 31, 2023, 2022, and 2021, 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 and in-place lease intangibles is included in Depreciation and amortization.

Based on the intangible assets and liabilities recorded at December 31, 2023, scheduled annual net amortization of intangibles for each of the next five calendar years and thereafter is as follows (in thousands):
Years Ending December 31,Net Decrease in Lease RevenuesIncrease to AmortizationTotal
2024$22,580 $131,143 $153,723 
202519,957 117,599 137,556 
202615,918 107,938 123,856 
202712,654 102,445 115,099 
202811,470 92,572 104,042 
Thereafter5,768 684,080 689,848 
Total$88,347 $1,235,777 $1,324,124