Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the Company’s goodwill activity during the years ended December 31, 2014 and 2013 by segment (in thousands):



	REI Segment			Cole Capital			Consolidated
Balance as of January 1, 2013	$	—		$	—		$	—
Caplease Merger	92,789			—			92,789
Balance as of December 31, 2013	92,789			—			92,789
Cole Merger ⁽¹⁾	1,654,085			558,835			2,212,920
Measurement period adjustments	(27,339		)	49,627			22,288
Goodwill allocated to dispositions ⁽²⁾	(210,139		)	—			(210,139		)
Impairment ⁽³⁾	—			(223,064		)	(223,064		)
Balance as of December 31, 2014	$	1,509,396		$	385,398		$	1,894,794

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(1) Goodwill recognized from the Cole Merger was assigned to the REI segment and Cole Capital based on the excess consideration paid over the fair value of the assets and liabilities acquired and assumed in each segment. Refer to Note 4 – Acquisitions of CapLease, Cole and CCPT for further discussion.


(2)	Goodwill allocated to the cost basis of properties sold or classified as held for sale is included in loss on held for sale assets and disposition of properties, net, in the consolidated statement of operations.

(3) The Cole Capital reporting segment impairment was recognized during the three months ended December 31, 2014.

Schedule of Intangible Assets

Intangible lease assets and liabilities of the Company consist of the following as of December 31, 2014 and 2013 (amounts in thousands, except weighted-average remaining life):



	Weighted-Average Remaining Life	December 31,
	Weighted-Average Remaining Life	2014		2013
Intangible lease assets:
In-place leases, net accumulated amortization of $236,096 and $60,753, respectively	12.7	$	1,816,508	$	689,109
Leasing commissions, net of accumulated amortization of $505 and $155, respectively	6.7	4,205		227
Above-market leases, net of accumulated amortization of $22,471 and $658, respectively	15.3	355,269		8,693
Total intangible lease assets, net		2,175,982		698,029



	Weighted-Average Remaining Life	December 31,
	Weighted-Average Remaining Life	2014		2013
Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $19,123 and $715, respectively	13.8	$	317,838	$	77,169

Schedule of Intangible Assets, Future Amortization Expense

The following table provides the projected amortization expense and adjustments to rental income related to the intangible lease assets and liabilities for the next five years as of December 31, 2014 (amounts in thousands):



	2015			2016			2017			2018			2019
In-place leases:
Total to be included in amortization expense	$	195,682		$	182,450		$	165,900		$	151,892		$	142,032
Leasing Commissions
Total to be included in amortization expense	$	445		$	472		$	459		$	351		$	327
Above-market lease assets:
Total to be deducted from rental income	$	27,129		$	26,978		$	26,598		$	26,016		$	24,033
Below-market lease liabilities:
Total to be included in rental income	$	(28,881	)	$	(22,752	)	$	(22,608	)	$	(22,276	)	$	(21,532	)