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Discontinued Operations
 12 Months Ended
Dec. 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 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 the Cole Purchaser, an affiliate of CIM Group, LLC for approximately $120.0 million paid in cash at closing. The Company could also earn up to an aggregate of $80.0 million of Net Revenue Payments in each calendar year through December 31, 2023 if future revenues of Cole Capital exceed a specified dollar threshold in a calendar year. There were no Net Revenue Payments received or earned since the sale. 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 year ended December 31, 2019. There were also no assets and liabilities related to discontinued operations and real estate assets held for sale as of December 31, 2019 and 2018.
The following is a summary of the financial information for discontinued operations for the years ended December 31, 2018 and 2017 (in thousands):
 
 
Year Ended

 
2018
 
2017
Revenues:
 
 
 
 
Offering-related fees and reimbursements
 
$
1,027

 
$
16,096

Transaction service fees and reimbursements
 
334

 
13,929

Management fees and reimbursements
 
6,452

 
76,214

Total revenues

7,813


106,239

Operating expenses:
 
 
 
 
Cole Capital reallowed fees and commissions
 
602

 
9,879

Transaction costs (1)
 
(654
)
 
3,802

General and administrative
 
4,450

 
63,783

Amortization of intangible assets
 
—

 
14,490

Total operating expenses

4,398


91,954

Other income, net
 
—

 
464

Loss on disposition and assets held for sale
 
(1,815
)
 
(20,027
)
Income (loss) before taxes

1,600


(5,278
)
Benefit from (provision for) income taxes
 
2,095

 
(13,839
)
Income (loss) from discontinued operations, net of income taxes

$
3,695


$
(19,117
)
___________________________________
(1)
The negative balance for the year ended December 31, 2018 is a result of estimated costs accrued in prior periods that exceeded actual expenses incurred.
The following is a summary of cash flows related to discontinued operations for the years ended December 31, 2018 and 2017 (in thousands):
 
 
Year Ended
 
 
2018
 
2017
Cash flows related to discontinued operations:
 
 
 
 
Cash flows (used in) provided by operating activities
 
$
(10,468
)
 
$
33,232

Cash flows from investing activities
 
$
122,915

 
$
—


Income Taxes
Cole Capital’s business, substantially all of which was conducted through a TRS, recognized a benefit of $2.1 million for the year ended December 31, 2018 and a provision of $13.8 million the year ended December 31, 2017. There was no related benefit or provision for the year ended December 31, 2019.
The following table presents the reconciliation of the (benefit from) provision for income taxes with the amount computed by applying the statutory federal income tax rate to loss before income taxes for the years ended December 31, 2018 and 2017 (in thousands):
 
 
Year Ended
 
 
2018
 
2017
Income (loss) before taxes
 
$
1,600

 
$
(5,278
)
Less: Income from non-taxable entities
 
(685
)
 
(9,523
)
Income (loss) attributable to taxable subsidiaries before income taxes
 
$
915

 
$
(14,801
)
 
 
 
 
 
Federal benefit from (provision for) at statutory rate
 
192

 
(5,180
)
Impairment of goodwill
 
—

 
—

Nondeductible portion of transaction costs and loss recognized on classification as held for sale
 
(719
)
 
8,283

Impact of change in federal tax rate
 
—

 
3,481

Impact of valuation allowance
 
(1,158
)
 
6,165

State income taxes and other
 
(410
)
 
1,090

Total (benefit from) provision for income taxes - Cole Capital
 
$
(2,095
)
 
$
13,839


The following table presents the components of the (benefit from) provision for income taxes for the years ended December 31, 2018 and 2017 (in thousands):
 
 
Year Ended
 
 
2018
 
2017
Current
 
 
 
 
Federal
 
$
(74
)
 
$
(120
)
State
 
(166
)
 
602

Total current (benefit from) provision for income taxes
 
(240
)
 
482

Deferred
 
 
 
 
Federal
 
(1,756
)
 
12,016

State
 
(99
)
 
1,341

Total deferred (benefit from) provision for income taxes
 
(1,855
)
 
13,357

Total (benefit from) provision for income taxes - Cole Capital
 
$
(2,095
)
 
$
13,839