Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company 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, 2016, the Company owned 4,142 properties comprising 93.3 million square feet of retail and commercial space located in 49 states, Puerto Rico and Canada, which includes properties owned through consolidated joint ventures. The rentable space at these properties was 98.3% leased with a weighted-average remaining lease term of 9.9 years. In addition, as of December 31, 2016, the Company owned eight CMBS and nine mortgage notes receivable.

Cole Capital – Through its Cole Capital segment, the Company is responsible for managing the day-to-day affairs of Cole Credit Property Trust IV, Inc. (“CCPT IV”); Cole Real Estate Income Strategy (Daily NAV), Inc. (“INAV”); Cole Office & Industrial REIT (CCIT II), Inc. (“CCIT II”); Cole Office & Industrial REIT (CCIT III), Inc. (“CCIT III”), Cole Credit Property Trust V, Inc. (“CCPT V”); and other real estate offerings in registration (collectively with CCPT IV, INAV, CCIT II, CCIT III and CCPT V, the “Cole REITs”), raising capital for those Cole REITs in offering, identifying and making acquisitions and investments on the Cole REITs’ behalf and recommending to the respective board of directors of each of the Cole REITs an approach for providing investors with liquidity. Cole Capital serves as the dealer manager and distributes shares of common stock for certain Cole 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 Cole 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. See Note 18 –Related Party Transactions and Arrangements for further discussion on the Cole REITs.

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,
	2016			2015			2014
REI segment:
Revenues:
Rental income	$	1,227,937		$	1,339,787		$	1,271,574
Direct financing lease income	2,055			2,720			3,603
Operating expense reimbursements	105,455			98,628			100,522
Total real estate investment revenues	1,335,447			1,441,135			1,375,699
Operating expenses:
Acquisition related	1,257			5,649			35,578
Litigation, merger and other non-routine costs, net of insurance recoveries	3,884			33,628			197,647
Property operating	144,428			130,855			137,741
Management fees to affiliates	—			—			13,888
General and administrative	51,265			64,691			76,261
Depreciation and amortization	756,314			817,477			844,743
Impairment of real estate	182,820			91,755			100,547
Total operating expenses	1,139,968			1,144,055			1,406,405
Operating income (loss)	195,479			297,080			(30,706		)
Other (expense) income:
Interest expense	(317,376		)	(358,392		)	(452,648		)
(Loss) gain on extinguishment and forgiveness of debt, net	(771		)	4,812			(21,869		)
Other income, net	5,289			3,953			85,975
Reserve for loan loss	—			(15,300		)	—
Equity in income (loss) and gain on disposition of unconsolidated entities	9,783			9,092			(76		)
Loss on derivative instruments, net	(1,191		)	(1,460		)	(10,570		)
Total other expenses, net	(304,266		)	(357,295		)	(399,188		)
Loss before taxes and real estate dispositions	(108,787		)	(60,215		)	(429,894		)
Gain (loss) on disposition of real estate and held for sale assets, net	45,524			(72,311		)	(277,031		)
Loss before taxes	(63,263		)	(132,526		)	(706,925		)
Provision for income taxes	(6,110		)	(3,569		)	(7,313		)
Net loss	$	(69,373	)	$	(136,095	)	$	(714,238	)

	Year Ended December 31,
	2016			2015			2014
Cole Capital segment:
Revenues:
Offering-related fees and reimbursements	$	36,533		$	24,410		$	87,109
Transaction service fees and reimbursements	12,959			30,109			64,956
Management fees and reimbursements	69,884			60,363			51,493
Total Cole Capital revenues	119,376			114,882			203,558
Operating expenses:
Cole Capital reallowed fees and commissions	23,174			16,195			66,228
Acquisition related	64			594			3,362
Litigation, merger and other non-routine costs, net of insurance recoveries	—			—			1,969
General and administrative	85,343			84,375			91,167
Depreciation and amortization	31,872			30,134			71,260
Impairments	120,931			213,339			309,444
Total operating expenses	261,384			344,637			543,430
Operating loss	(142,008		)	(229,755		)	(339,872		)
Total other income, net	746			2,486			2,621
Loss before income taxes	(141,262		)	(227,269		)	(337,251		)
Benefit from income taxes	9,811			39,872			40,577
Net loss	$	(131,451	)	$	(187,397	)	$	(296,674	)
Total Company:
Total revenues	$	1,454,823		$	1,556,017		$	1,579,257
Total operating expenses	$	(1,401,352	)	$	(1,488,692	)	$	(1,949,835	)
Total other expense, net	$	(303,520	)	$	(354,809	)	$	(396,567	)
Net loss	$	(200,824	)	$	(323,492	)	$	(1,010,912	)

	Total Assets
	December 31, 2016		December 31, 2015
REI segment	$	15,337,623	$	16,966,729
Cole Capital segment	249,951		439,137
Total Company	$	15,587,574	$	17,405,866