Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2019

(1)

Initial costs exclude subsequent impairment charges.


(2)	Consists of capital expenditures and real estate development costs, net of condemnations, easements and impairment charges.


(3)	Gross intangible lease assets of $1.9 billion and the associated accumulated amortization of $867.2 million are not reflected in the table above.


(4)	The aggregate cost for Federal income tax purposes of land, buildings, fixtures and improvements as of December 31, 2018 was $13.0 billion.


(5)	Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, five to 15 years for building fixtures and improvements.

The following is a reconciliation of the gross real estate activity for the years ended December 31, 2019, 2018 and 2017 (amounts in thousands):



	Years Ended December 31,
	2019			2018			2017
Balance, beginning of year	$	13,592,440		$	13,577,700		$	13,539,921
Additions:
Acquisitions	351,135			437,227			634,080
Improvements	56,446			31,898			28,503
Deductions/Other:
Dispositions	(947,403		)	(368,808		)	(505,403		)
Impairments	(81,078		)	(84,278		)	(82,292		)
Reclassified to assets held for sale	(33,724		)	(2,997		)	(52,376		)
Other	1,413			1,698			15,267
Balance, end of year	$	12,939,229		$	13,592,440		$	13,577,700

The following is a reconciliation of the accumulated depreciation for the years ended December 31, 2019, 2018 and 2017 (amounts in thousands):



	Years Ended December 31,
	2019			2018			2017
Balance, beginning of year	$	2,622,879		$	2,217,108		$	1,766,006
Additions:
Depreciation expense	352,531			497,511			548,901
Deductions/Other:
Dispositions	(201,319		)	(57,346		)	(34,086		)
Impairments	(34,847		)	(32,147		)	(50,828		)
Reclassified to assets held for sale	(7,602		)	(400		)	(12,885		)
Other	(4,543		)	(1,847		)	—
Balance, end of year	$	2,727,099		$	2,622,879		$	2,217,108