2.2.0.7 false Agreements and Transactions with Related Parties 0203 - Disclosure - Agreements and Transactions with Related Parties true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Agreements and Transactions with Related Parties [Abstract] 0 wpc_AgreementsAndTransactionsWithRelatedPartiesAbstract wpc false na duration Agreements and Transactions with Related Parties Abstract. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Agreements and Transactions with Related Parties Abstract. false 3 Agreements and Transactions with Related Parties 1 us-gaap_RelatedPartyTransactionsDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Note 3. Agreements and Transactions with Related Parties</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Advisory Agreements with the CPA</b><sup style="font-size: 85%; vertical-align: text-top"><b>®</b></sup> <b>REITs</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We have advisory agreements with each of the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs pursuant to which we earn certain fees. The agreements that are currently in effect expire on September 30, 2010, but were recently renewed for an additional year pursuant to their terms. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The following table presents a summary of revenue earned and cash received from the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs in connection with providing services as the advisor to the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Three months ended June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Six months ended June 30,</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Asset management revenue </div></td> <td> </td> <td align="left">$</td> <td align="right">19,080</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">19,227</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">37,900</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">38,335</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Structuring revenue </div></td> <td> </td> <td> </td> <td align="right">13,102</td> <td> </td> <td> </td> <td> </td> <td align="right">365</td> <td> </td> <td> </td> <td> </td> <td align="right">19,936</td> <td> </td> <td> </td> <td> </td> <td align="right">10,774</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Wholesaling revenue </div></td> <td> </td> <td> </td> <td align="right">2,230</td> <td> </td> <td> </td> <td> </td> <td align="right">1,597</td> <td> </td> <td> </td> <td> </td> <td align="right">4,333</td> <td> </td> <td> </td> <td> </td> <td align="right">2,690</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Reimbursed costs from affiliates </div></td> <td> </td> <td> </td> <td align="right">15,354</td> <td> </td> <td> </td> <td> </td> <td align="right">11,115</td> <td> </td> <td> </td> <td> </td> <td align="right">30,402</td> <td> </td> <td> </td> <td> </td> <td align="right">20,111</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Distributions of available cash (CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global only) </div></td> <td> </td> <td> </td> <td align="right">1,187</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,693</td> <td> </td> <td> </td> <td> </td> <td align="right">583</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left">$</td> <td align="right">50,953</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">32,304</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">94,264</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">72,493</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Asset Management Revenue</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We earn asset management revenue totaling 1% per annum of average invested assets, which is calculated according to the advisory agreements for each CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT. A portion of this asset management revenue is contingent upon the achievement of specific performance criteria for each CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT, which is generally defined to be a cumulative distribution return for shareholders of the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT. For CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:14, CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:15 and CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:16 — Global, this performance revenue is generally equal to 0.5% of the average invested assets of the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT. For CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global, we earn asset management revenue ranging from 0.5% of average market value for long-term net leases and certain other types of real estate investments up to 1.75% of average equity value for certain types of securities. For CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global, we receive up to 10% of distributions of available cash from its operating partnership. Distributions of available cash from CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global’s operating partnership are recorded as income from equity investments in CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs within the investment management segment. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Under the terms of the advisory agreements, we may elect to receive cash or shares of restricted stock for any revenue due from each CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT. In both 2010 and 2009, we elected to receive all asset management revenue in cash, with the exception of CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global’s asset management revenue, which we elected to receive in restricted shares. For both 2010 and 2009, we also elected to receive performance revenue from CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:16 — Global in restricted shares, while for CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:14 and CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:15 we elected to receive 80% of all performance revenue in restricted shares, with the remaining 20% payable in cash. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Structuring Revenue</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We earn revenue in connection with structuring and negotiating investments and related mortgage financing for the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs. We may receive acquisition revenue of up to an average of 4.5% of the total cost of all investments made by each CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT. A portion of this revenue (generally 2.5%) is paid when the transaction is completed, while the remainder (generally 2%) is payable in annual installments ranging from three to eight years, provided the relevant CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT meets its performance criterion. Unpaid installments bear interest at annual rates ranging from 5% to 7%. Interest earned on unpaid installments was $0.3 million and $0.4 million for the three months ended June 30, 2010 and 2009, respectively, and $0.5 million and $0.7 million for the six months ended June 30, 2010 and 2009, respectively. For certain types of non-long term net lease investments acquired on behalf of CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global, initial acquisition revenue may range from 0% to 1.75% of the equity invested plus the related acquisition revenue, with no deferred acquisition revenue being earned. We may also be entitled, subject to CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REIT board approval, to fees for structuring loan refinancings of up to 1% of the principal amount. This loan refinancing revenue, together with the acquisition revenue, is referred to as structuring revenue. In addition, we may also earn revenue related to the sale of properties, subject to subordination provisions. We will only recognize this revenue if we meet the subordination provisions. </div> <div align="right" style="font-size: 10pt; margin-top: 0pt"> <i> </i> <b> </b> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Reimbursed Costs from Affiliates and Wholesaling Revenue</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs reimburse us for certain costs, primarily broker/dealer commissions paid on behalf of the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs and marketing and personnel costs. In addition, under the terms of a sales agency agreement between our wholly-owned broker-dealer subsidiary and CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global, we earn a selling commission of up to $0.65 per share sold, selected dealer revenue of up to $0.20 per share sold and/or wholesaling revenue for selected dealers or investment advisors of up to $0.15 per share sold. We re-allow all or a portion of the selling commissions to selected dealers participating in CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global’s offering and may re-allow up to the full selected dealer revenue to selected dealers. If needed, we will use any retained portion of the selected dealer revenue together with the wholesaling revenue to cover other underwriting costs incurred in connection with CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global’s offering. Total underwriting compensation earned in connection with CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup>:17 — Global’s offering, including selling commissions, selected dealer revenue, wholesaling revenue and reimbursements made by us to selected dealers, cannot exceed the limitations prescribed by the Financial Industry Regulatory Authority (“FINRA”). The limit on underwriting compensation is currently 10% of gross offering proceeds. We may also be reimbursed up to an additional 0.5% of the gross offering proceeds for bona fide due diligence expenses. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Other Transactions with Affiliates</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We are the general partner in a limited partnership (which we consolidate for financial statement purposes) that leases our home office space and participates in an agreement with certain affiliates, including the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs, for the purpose of leasing office space used for the administration of our operations and the operations of our affiliates and for sharing the associated costs. This limited partnership does not have any significant assets, liabilities or operations other than its interest in the office lease. During each of the three month periods ended June 30, 2010 and 2009 and each of the six month periods ended June 30, 2010 and 2009, we recorded income from noncontrolling interest partners of $0.6 million and $1.2 million, respectively, in each case related to reimbursements from these affiliates. The average estimated minimum lease payments on the office lease, inclusive of noncontrolling interests, at June 30, 2010 approximates $2.9 million annually through 2016. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We own interests in entities ranging from 5% to 95%, as well as jointly-controlled tenant-in-common interests in properties, with the remaining interests generally held by affiliates, and own common stock in each of the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs. We consolidate certain of these investments and account for the remainder under the equity method of accounting. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">One of our directors and officers is the sole shareholder of Livho, Inc. (“Livho”), a subsidiary that operates a hotel investment. We consolidate the accounts of Livho in our consolidated financial statements in accordance with current accounting guidance for consolidation of VIEs because it is a VIE and we are its primary beneficiary. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Family members of one of our directors have an ownership interest in certain companies that own noncontrolling interests in one of our French majority-owned subsidiaries. These ownership interests are subject to substantially the same terms as all other ownership interests in the subsidiary companies. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">An employee owns a redeemable noncontrolling interest in W. P. Carey International LLC (“WPCI”), a subsidiary company that structures net lease transactions on behalf of the CPA<sup style="font-size: 85%; vertical-align: text-top">®</sup> REITs outside of the U.S., as well as certain related entities. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Included in Accounts payable, accrued expenses and other liabilities in the consolidated balance sheets at each of June 30, 2010 and December 31, 2009 are amounts due to affiliates totaling $0.9 million. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. 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