Goodwill and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the Company’s goodwill activity by segment during the nine months ended September 30, 2016 and 2015 (in thousands):



	REI Segment			Cole Capital Segment		Consolidated
Balance as of December 31, 2015	$	1,410,631		$	245,743	$	1,656,374
Goodwill allocated to dispositions and held for sale assets ^{(1) (2)}	(53,764		)	—		(53,764		)
Balance as of September 30, 2016	$	1,356,867		$	245,743	$	1,602,610



	REI Segment			Cole Capital Segment		Consolidated
Balance as of December 31, 2014	$	1,509,396		$	385,398	$	1,894,794
Goodwill allocated to dispositions and held for sale assets ⁽¹⁾	(66,789		)	—		(66,789		)
Balance as of September 30, 2015	$	1,442,607		$	385,398	$	1,828,005

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(1)	Included in gain (loss) on disposition of real estate, net, in the consolidated statement of operations.


(2)	Includes $51.5 million of goodwill allocated to the cost basis of properties disposed of and classified as held for sale as discussed in Note 5 – Real Estate Investments and $2.3 million of goodwill allocated to the cost basis of two properties foreclosed upon as discussed in Note 10 – Debt during the nine months ended September 30, 2016.

Schedule of Intangible Assets

Intangible lease assets and liabilities of the Company consisted of the following as of September 30, 2016 and December 31, 2015 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	September 30, 2016		December 31, 2015
Intangible lease assets:
In-place leases, net of accumulated amortization of $469,617 and $398,770, respectively	14.8	$	1,246,392	$	1,458,354
Leasing commissions, net of accumulated amortization of $1,681 and $1,035, respectively	9.5	8,541		4,872
Above-market leases, net of accumulated amortization of $63,952 and $47,041, respectively	16.6	282,893		308,306
Total intangible lease assets, net		$	1,537,826	$	1,771,532

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $52,027 and $38,340, respectively	18.0	$	229,340	$	251,692

Schedule of Projected Amortization Expense and Adjustments

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 September 30, 2016 (amounts in thousands):



	October 1, 2016 - December 31, 2016		2017		2018		2019		2020
In-place leases:
Total projected to be included in amortization expense	$	41,368	$	149,340	$	136,656	$	125,238	$	116,997
Leasing Commissions
Total projected to be included in amortization expense	271		1,167		979		901		850
Above-market lease assets:
Total projected to be deducted from rental income	6,371		24,995		24,460		22,529		22,087
Below-market lease liabilities:
Total projected to be included in rental income	6,629		20,114		19,787		19,049		17,857