Deferred Costs, Acquired Lease Intangibles and Goodwill

3 Months Ended

Mar. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net consisted of the following as of March 31, 2016 and December 31, 2015 (amounts in thousands):

	March 31, 2016			December 31, 2015
Leasing costs	$	127,886		$	121,864
Acquired in-place lease value and deferred leasing costs	283,557			285,902
Acquired above-market leases	79,618			81,680
	491,061			489,446
Less: accumulated amortization	(190,502		)	(178,767		)
Total deferred costs, net, excluding net deferred financing costs	$	300,559		$	310,679

At March 31, 2016, there were no outstanding borrowings on our unsecured revolving credit facility. Consequently, $4.4 million of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet at March 31, 2016.    

Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $5.8 million and $5.9 million for the three months ended March 31, 2016 and 2015, respectively. Amortization expense related to acquired lease intangibles was $7.7 million and $10.3 million for the three months ended March 31, 2016 and 2015, respectively.

Amortizing acquired intangible assets and liabilities consisted of the following as of March 31, 2016 and December 31, 2015 (amounts in thousands):

	March 31, 2016			December 31, 2015
Acquired below-market ground leases	$	396,916		$	396,916
Less: accumulated amortization	(14,982		)	(13,025		)
Acquired below-market ground leases, net	$	381,934		$	383,891

	March 31, 2016			December 31, 2015
Acquired below-market leases	$	(162,314	)	$	(163,290	)
Less: accumulated amortization	66,069			59,119
Acquired below-market leases, net	$	(96,245	)	$	(104,171	)

Rental revenue related to the amortization of below-market leases, net of above-market leases, was $4.2 million and $5.3 million for the three months ended March 31, 2016 and 2015, respectively.

As of March 31, 2016, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate segment.