Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We evaluate our results from operations by our two major business segments — Real Estate Ownership and Investment Management (Note 1). The following tables present a summary of comparative results and assets for these business segments (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Real Estate Ownership
Revenues	$	164,212		$	79,810		$	476,018		$	233,951
Operating expenses (a)	(94,227		)	(45,298		)	(294,572		)	(127,790		)
Interest expense	(46,534		)	(26,262		)	(133,342		)	(77,596		)
Other income and expenses, excluding interest expense	7,370			11,713			129,573			58,231
Provision for income taxes	(1,872		)	(3,689		)	(944		)	(7,260		)
Gain (loss) on sale of real estate, net of tax	260			—			(3,482		)	(332		)
Net income attributable to noncontrolling interests	(757		)	(2,957		)	(4,470		)	(7,776		)
Net income (loss) attributable to noncontrolling interests of discontinued operations	5			413			(173		)	1,021
Income from continuing operations attributable to W. P. Carey	$	28,457		$	13,730		$	168,608		$	72,449
Investment Management
Revenues (b)	$	31,733		$	52,782		$	181,843		$	116,892
Operating expenses (b) (c)	(33,992		)	(46,327		)	(166,616		)	(119,840		)
Other income and expenses, excluding interest expense	160			245			(7		)	773
Benefit from (provision for) income taxes	971			(1,702		)	(10,231		)	4,210
Net (income) loss attributable to noncontrolling interests	(236		)	45			(444		)	464
Net loss (income) attributable to redeemable noncontrolling interests	14			(232		)	(137		)	(139		)
(Loss) income from continuing operations attributable to W. P. Carey	$	(1,350	)	$	4,811		$	4,408		$	2,360
Total Company
Revenues (b)	$	195,945		$	132,592		$	657,861		$	350,843
Operating expenses (b) (c)	(128,219		)	(91,625		)	(461,188		)	(247,630		)
Interest expense	(46,534		)	(26,262		)	(133,342		)	(77,596		)
Other income and expenses, excluding interest expense	7,530			11,958			129,566			59,004
Provision for income taxes	(901		)	(5,391		)	(11,175		)	(3,050		)
Gain (loss) on sale of real estate, net of tax	260			—			(3,482		)	(332		)
Net income attributable to noncontrolling interests	(993		)	(2,912		)	(4,914		)	(7,312		)
Net income (loss) attributable to noncontrolling interests of discontinued operations	5			413			(173		)	1,021
Net loss (income) attributable to redeemable noncontrolling interests	14			(232		)	(137		)	(139		)
Income from continuing operations attributable to W. P. Carey	$	27,107		$	18,541		$	173,016		$	74,809

	Total Long-Lived Assets at (d)				Total Assets at
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Real Estate Ownership	$	5,469,846	$	3,333,654	$	8,146,004	$	4,537,853
Investment Management	—		—		355,445		141,097
Total Company	$	5,469,846	$	3,333,654	$	8,501,449	$	4,678,950

__________

(a) Includes expenses incurred of $30.4 million related to the CPA^®:16 Merger for the nine months endedSeptember 30, 2014.

(b) Included in revenues and operating expenses are reimbursable costs from affiliates totaling $14.7 million and $23.3 million for the three months ended September 30, 2014 and 2013, respectively, and $96.4 million and $50.7 million for the nine months endedSeptember 30, 2014 and 2013, respectively.

(c) Includes Stock-based compensation expense of $8.0 million and $7.9 million for the three months ended September 30, 2014 and 2013, respectively, of which $7.7 million and $7.6 million, respectively, were included in the Investment Management segment; and $23.0 million and $25.4 million for the nine months endedSeptember 30, 2014 and 2013, respectively, of which $22.3 million and $24.1 million, respectively, were included in the Investment Management segment.

(d) Consists of Net investments in real estate.

Our portfolio is comprised of domestic and international investments. At September 30, 2014, our international investments within our Real Estate Ownership segment were comprised of investments in France, Japan, Poland, Germany, Spain, Belgium, Finland, the Netherlands, Thailand, Canada, Malaysia, Hungary, Mexico, Sweden, Norway, and the United Kingdom. There are no investments in foreign jurisdictions within our Investment Management segment. Other than Germany, no country or tenant individually comprised more than 10% of our total lease revenues or total long-lived assets at September 30, 2014. The following tables present the geographic information (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Domestic
Revenues	$	107,799		$	54,953		$	314,911		$	162,784
Income from continuing operations (a)	15,146			14,087			160,238			71,411
Net income attributable to noncontrolling interests	(543		)	(3,209		)	(2,781		)	(8,019		)
Net income attributable to W. P. Carey	13,731			12,954			184,678			66,397
Germany
Revenues	$	19,663		$	5,132		$	54,767		$	14,957
Income from continuing operations (a)	6,341			5,197			(656		)	12,492
Net income attributable to noncontrolling interests	(88		)	(460		)	(1,760		)	(1,934		)
Net income attributable to W. P. Carey	7,089			3,683			(720		)	8,967
Other International
Revenues	$	36,750		$	19,725		$	106,340		$	56,210
Income from continuing operations (a)	9,334			679			18,095			2,893
Net (income) loss attributable to noncontrolling interests	(126		)	712			71			2,177
Net income attributable to W. P. Carey	7,867			(2,942		)	17,886			(1,870		)
Total
Revenues	$	164,212		$	79,810		$	476,018		$	233,951
Income from continuing operations (a)	30,821			19,963			177,677			86,796
Net income attributable to noncontrolling interests	(757		)	(2,957		)	(4,470		)	(7,776		)
Net income attributable to W. P. Carey	28,687			13,695			201,844			73,494

	September 30, 2014		December 31, 2013
Domestic
Long-lived assets (b)	$	3,772,632	$	2,172,549
Non-recourse debt	1,633,872		874,035
Germany
Long-lived assets (b)	$	622,164	$	314,423
Non-recourse debt	336,396		76,222
Other International
Long-lived assets (b)	$	1,075,050	$	846,682
Non-recourse debt	731,865		542,153
Total
Long-lived assets (b)	$	5,469,846	$	3,333,654
Non-recourse debt	2,702,133		1,492,410

__________

(a) Amount represents income from continuing operations before income taxes and gain (loss) on sale of real estate, net of tax.

(b) Consists of Net investments in real estate.