Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has two reportable segments as it has organized its operations into two segments for management and internal financial reporting purposes, REI and Cole Capital, as further discussed below.

REI – Through its REI segment, the Company owns and actively manages a diversified portfolio of retail, restaurant, office and industrial real estate properties subject to long-term net leases with creditworthy tenants. As of December 31, 2015, the Company owned 4,435 properties comprising 99.6 million square feet of retail and commercial space located in 49 states, the District of Columbia, Puerto Rico and Canada, which includes properties owned through consolidated joint ventures. The rentable space at these properties was 98.6% leased with a weighted-average remaining lease term of 10.6 years. In addition, as of December 31, 2015, the Company owned 10 CMBS and 10 loans held for investment.

Cole Capital – Through its Cole Capital segment, the Company is responsible for managing the day-to-day affairs of the Managed REITs, raising capital for those Managed REITs still in offering, identifying and making acquisitions and investments on the Managed REITs’ behalf and recommending to the respective board of directors of each of the Managed REITs an approach for providing investors with liquidity. Cole Capital serves as the dealer manager and distributes shares of common stock for certain Managed REITs and advises them regarding offerings, manages relationships with participating broker-dealers and financial advisors and provides assistance in connection with compliance matters relating to the offerings. Cole Capital receives compensation and reimbursement for services relating to the Managed REITs’ offerings and the investment, management, financing and disposition of their respective assets, as applicable. Cole Capital also develops new REIT offerings and assists in obtaining regulatory approvals from the SEC, the Financial Industry Regulatory Authority, Inc. and various blue sky jurisdictions for such offerings.

The Company allocates certain operating expenses, such as legal fees, employee related costs and benefits and general overhead expenses between its operating segments. The following tables present a summary of the comparative financial results and total assets for each segment (in thousands):

	Year Ended December 31,
	2015			2014			2013
REI segment:
Revenues:
Rental income	$	1,339,787		$	1,271,574		$	310,508
Direct financing lease income	2,720			3,603			2,244
Operating expense reimbursements	98,628			100,522			16,571
Total real estate investment revenues	1,441,135			1,375,699			329,323
Operating expenses:
Acquisition related	5,649			35,578			76,113
Merger and other non-routine transactions, net of insurance recoveries	33,628			197,647			210,543
Property operating	130,855			137,741			23,629
Management fees to affiliates	—			13,888			17,462
General and administrative	64,691			76,261			120,998
Depreciation and amortization	817,477			844,743			210,976
Impairment of real estate	91,755			100,547			3,346
Total operating expenses	1,144,055			1,406,405			663,067
Operating income (loss)	297,080			(30,706		)	(333,744		)
Other (expense) income:
Interest expense	(358,392		)	(452,648		)	(105,548		)
Gain (loss) on extinguishment and forgiveness of debt, net	4,812			(21,869		)	—
Other income, net	6,251			79,542			3,824
Reserve for loan loss	(15,300		)	—			—
Gain on disposition of interest in joint venture	6,729			—			—
Loss on derivative instruments, net	(1,460		)	(10,570		)	(67,946		)
Gain (loss) on investment securities	65			6,357			(2,206		)
Total other expenses, net	(357,295		)	(399,188		)	(171,876		)
Loss before taxes and real estate dispositions	(60,215		)	(429,894		)	(505,620		)
Loss on disposition of real estate, net	(72,311		)	(277,031		)	—
Loss before taxes	(132,526		)	(706,925		)	(505,620		)
Provision for income taxes	(3,569		)	(7,313		)	(2,195		)
Net loss	$	(136,095	)	$	(714,238	)	$	(507,815	)

	Year Ended December 31,
	2015			2014			2013
Cole Capital segment:
Revenues:
Offering-related fees and reimbursements	$	24,410		$	87,109		$	—
Transaction service fees and reimbursements	30,109			64,956			—
Management fees and reimbursements	60,363			51,493			—
Total Cole Capital revenues	114,882			203,558			—
Operating expenses:
Cole Capital reallowed fees and commissions	16,195			66,228			—
Acquisition related	594			3,362			—
Merger and other non-routine transactions, net of insurance recoveries	—			1,969			—
General and administrative	84,375			91,167			—
Depreciation and amortization	30,134			71,260			—
Impairments of goodwill and intangibles	213,339			309,444			—
Total operating expenses	344,637			543,430			—
Operating loss	(229,755		)	(339,872		)	—
Total other income, net	2,486			2,621			—
Loss before taxes	(227,269		)	(337,251		)	—
Benefit from income taxes	39,872			40,577			—
Net loss	$	(187,397	)	$	(296,674	)	$	—
Total Company:
Total revenues	$	1,556,017		$	1,579,257		$	329,323
Total operating expenses	$	1,488,692		$	1,949,835		$	663,067
Total other expense, net	$	(354,809	)	$	(396,567	)	$	(171,876	)
Net loss	$	(323,492	)	$	(1,010,912	)	$	(507,815	)

	Total Assets
	December 31, 2015		December 31, 2014
REI segment	$	16,966,729	$	19,683,135
Cole Capital segment	439,137		744,001
Total Company	$	17,405,866	$	20,427,136