Discontinued Operations

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On November 13, 2017, the Company entered into a purchase and sale agreement (as amended by that certain First Amendment to the Purchase and Sale Agreement, dated as of February 1, 2018, the “Cole Capital Purchase and Sale Agreement”). On February 1, 2018, the Company completed the sale of its investment management segment, Cole Capital, under the terms of the Cole Capital Purchase and Sale Agreement. Substantially all of the Cole Capital segment’s operations were conducted through Cole Capital Advisors, Inc. (“CCA”), an Arizona corporation and a wholly owned subsidiary of the OP. The OP sold all of the issued and outstanding shares of common stock of CCA and certain of CCA’s subsidiaries to CCA Acquisition, LLC (the “Cole Purchaser”), an affiliate of CIM Group, LLC for approximately $120.0 million paid in cash at closing. The Company could also receive up to an aggregate of $80.0 million of additional fees over the next six years if future revenues of Cole Capital exceed a specified dollar threshold (the “Net Revenue Payments”). There were no Net Revenue Payments received or earned for the three months ended March 31, 2019. Substantially all of the Cole Capital segment financial results are reflected in the financial statements as discontinued operations. There were no discontinued operations or cash flows for the three months ended March 31, 2019.

The following is a summary of the financial information for discontinued operations for the three months ended March 31, 2018 (in thousands):

	Three Months Ended March 31, 2018
Revenues:
Offering-related fees and reimbursements	$	1,027
Transaction service fees and reimbursements	334
Management fees and reimbursements	6,452
Total revenues	$	7,813
Operating expenses:
Cole Capital reallowed fees and commissions	602
Transaction costs	(654		)
General and administrative	4,450
Total operating expenses	4,398
Operating income (loss)	3,415
Loss on disposition and assets held for sale	(2,009		)
Income before taxes	1,406
Benefit from income taxes	2,095
Income from discontinued operations, net of income taxes	$	3,501

The following is a summary of cash flows related to discontinued operations for the three months ended March 31, 2018 (in thousands):

	Three Months Ended March 31,
	2018
Cash flows related to discontinued operations:
Net cash used in operating activities	$	(10,662	)
Cash flows from investing activities	$	123,925