Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the Company’s goodwill activity by segment from January 1, 2015 to December 31, 2016 (in thousands):



	REI Segment			Cole Capital Segment			Consolidated
Balance, January 1, 2015	$	1,509,396		$	385,398		$	1,894,794
Goodwill allocated to dispositions and held for sale assets ⁽¹⁾	(98,765		)	—			(98,765		)
Impairment	—			(139,655		)	(139,655		)
Balance, December 31, 2015	$	1,410,631		$	245,743		$	1,656,374
Goodwill allocated to dispositions and held for sale assets ^{(1) (2)}	(73,240		)	—			(73,240		)
Impairment	—			(120,931		)	(120,931		)
Balance as of December 31, 2016	$	1,337,391		$	124,812		$	1,462,203

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(1)	Included in gain (loss) on disposition of real estate and held for sale assets, net, in the consolidated statement of operations.


(2)	Includes $71.0 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 11 – Debt during the year ended December 31, 2016.

Schedule of Intangible Assets

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



	Weighted-Average Useful Life	December 31, 2016		December 31, 2015
Intangible lease assets:
In-place leases, net of accumulated amortization of $494,131 and $398,770, respectively	14.8	$	1,192,756	$	1,458,354
Leasing commissions, net of accumulated amortization of $1,836 and $1,035, respectively	9.9	10,231		4,872
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $69,670 and $47,041, respectively	16.5	275,897		308,306
Total intangible lease assets, net		$	1,478,884	$	1,771,532

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $56,891 and $38,340, respectively	18.0	$	224,023	$	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 December 31, 2016 (amounts in thousands):



	2017		2018		2019		2020		2021
In-place leases:
Total projected to be included in amortization expense	$	146,814	$	134,960	$	124,008	$	115,862	$	106,889
Leasing commissions:
Total projected to be included in amortization expense	1,124		936		862		821		772
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental income	24,745		24,243		22,330		21,894		21,377
Below-market lease liabilities:
Total projected to be included in rental income	20,100		19,773		19,040		17,856		16,501