Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting

Segment Reporting

Note18.Segment Reporting

We evaluate our results from operations by our two major business segments — Real Estate Ownership and Investment Management (Note1).Effective April 1, 2012, we include cash distributions and deferred revenue received and earned from the operating partnerships of CPA®:16 – Global, CPA®:17 – Global and CWI in our Real Estate Ownership segment. Effective January 1, 2011, we include our equity investments in the Managed REITs in our Real Estate Ownership segment.The equity income or loss from the Managed REITs that is now included in our Real Estate Ownership segment represents our proportionate share of the revenue less expenses of the net-leased properties held by the Managed REITS.This treatment is consistent with that of our directly-owned properties.Results of operations for the prior years have been reclassified to conform to the current year presentation. The following table presents a summary of comparative results of these business segments (in thousands):

	Years Ended December 31,
	2012		2011		2010
Real Estate Ownership (a)
Revenues	$	150,815	$	85,137	$	68,755
Operating expenses (b)		(118,152)		(44,901)		(35,346)
Interest expense		(50,573)		(21,770)		(15,636)
Other, net (c)		83,409		82,912		30,131
Provision for income taxes		(4,012)		(2,243)		(2,154)
Income from continuing operations attributable to W. P. Carey	$	61,487	$	99,135	$	45,750
Investment Management
Revenues (d)	$	223,180	$	242,647	$	191,890
Operating expenses (d)		(207,050)		(157,572)		(133,683)
Other, net (e)		3,878		2,695		2,559
Provision for income taxes		(2,771)		(34,971)		(23,660)
Income from continuing operations attributable to W. P. Carey	$	17,237	$	52,799	$	37,106
Total Company
Revenues (d)	$	373,995	$	327,784	$	260,645
Operating expenses (d)		(325,202)		(202,473)		(169,029)
Interest expense		(50,573)		(21,770)		(15,636)
Other, net (c) (e)		87,287		85,607		32,690
Provision for income taxes		(6,783)		(37,214)		(25,814)
Income from continuing operations attributable to W. P. Carey	$	78,724	$	151,934	$	82,856

	Total Long-Lived Assets at (f)				Total Assets at
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
Real Estate Ownership	$	4,236,993	$	1,273,521	$	4,484,821	$	1,334,066
Investment Management		69,258		70,369		124,221		128,557
Total Company	$	4,306,251	$	1,343,890	$	4,609,042	$	1,462,623

__________

• Included within the Real Estate Ownership segment is our total investment in shares of CPA®:16 – Global, which representedapproximately 6.8% of our total assets at December 31, 2012 (Note7).
• Includes expenses incurred of $31.7 million related to the Merger for the year ended December 31, 2012.
• Includes Other interest income, Income from equity investments in real estate and the Managed REITs, Gain on change in control of interests, Other income and (expenses), and Net income attributable to noncontrolling interests.
• Included in revenues and operating expenses are reimbursable costs from affiliates totaling $98.2 million,$64.8 million and $60.0 million for theyears endedDecember 31, 2012,2011 and 2010, respectively.
• Includes Other interest income, Other income and (expenses), Net loss attributable to noncontrolling interests and Net loss (income) attributable to redeemable noncontrolling interest.
• Long-lived assets include Net investments in real estate, Goodwill and Intangible assets, net.

At December 31, 2012, our international investments within our Real Estate Ownership segment were comprised of investments inFrance, Poland, Germany, Spain, Belgium, Finland, Netherlands and the United Kingdom. The following tables present information about these investments (in thousands):

Year Ended December 31, 2012		Domestic		Foreign (a)		Total
Revenues		$	120,702	$	30,113	$	150,815
Operating expenses			(115,632)		(2,520)		(118,152)
Interest expense			(39,042)		(11,531)		(50,573)
Other, net (b) (c)			76,803		6,606		83,409
Provision for income taxes			(2,697)		(1,315)		(4,012)
	Income from continuing operations attributable to W. P. Carey	$	40,134	$	21,353	$	61,487
Total assets		$	3,527,918	$	956,903	$	4,484,821
Total long-lived assets (d)		$	3,361,197	$	875,796	$	4,236,993
Year Ended December 31, 2011		Domestic		Foreign (a)		Total
Revenues		$	75,408	$	9,729	$	85,137
Operating expenses			(40,042)		(4,859)		(44,901)
Interest expense			(20,075)		(1,695)		(21,770)
Other, net (c)			76,736		6,176		82,912
Provision for income taxes			(2,135)		(108)		(2,243)
	Income from continuing operations attributable to W. P. Carey	$	89,892	$	9,243	$	99,135
Total assets		$	1,258,544	$	75,522	$	1,334,066
Total long-lived assets (d)		$	1,203,474	$	70,047	$	1,273,521
Year Ended December 31, 2010		Domestic		Foreign (a)		Total
Revenues		$	61,049	$	7,706	$	68,755
Operating expenses			(31,604)		(3,742)		(35,346)
Interest expense			(13,894)		(1,742)		(15,636)
Other, net (c)			26,188		3,943		30,131
Provision for income taxes			(2,124)		(30)		(2,154)
	Income from continuing operations attributable to W. P. Carey	$	39,615	$	6,135	$	45,750
Total assets		$	965,418	$	82,987	$	1,048,405
Total long-lived assets (d)		$	961,298	$	73,447	$	1,034,745

__________

• All years include operations in France, Germany, Poland and Spain. The year ended December 31, 2012 also includes operations in Belgium, Finland, the Netherlands and the United Kingdom through properties acquired from CPA®:15 in the Merger.
• Amount for the year ended December 31, 2012 includes our $15.1 million share of the net gain recognized by a jointly-owned entity in connection with selling its interests in the Médica investment.
• Includes Other interest income, Income from equity investments in real estate and the Managed REITs, Gain on change in control of interests, Other income and (expenses), and Net income attributable to noncontrolling interests.
• Consists of Net investments in real estate,Goodwill and Intangible assets,net, as applicable.