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Stock-Based Compensation and Equity (Tables)
 9 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Schedule of Share Based Compensation Stock Option Activity
Nonvested restricted stock awards, or RSAs, restricted share units, or RSUs, and performance share units, or PSUs, at September 30, 2014 and changes during the nine months ended September 30, 2014 were as follows:
 
RSA and RSU Awards
 
PSU Awards
 
Shares
 
Weighted-Average
Grant Date
Fair Value
 
Shares
 
Weighted-Average
Grant Date
Fair Value
Nonvested at January 1, 2014
519,608

 
$
45.19

 
1,220,720

 
$
28.28

Granted (a)
179,621

 
60.71

 
89,653

 
76.05

Vested (b)
(264,726
)
 
43.35

 
(881,388
)
 
15.04

Forfeited
(667
)
 
68.05

 
—

 
—

Adjustment (c)
—

 
—

 
448,811

 
55.91

Nonvested at September 30, 2014 (d)
433,836

 
$
52.71

 
877,796

 
$
32.06

__________
(a)
The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant. The grant date fair value of PSUs were determined utilizing a Monte Carlo simulation model to generate a range of possible future stock prices for both us and the plan defined peer index over the three-year performance period. To estimate the fair value of PSUs granted during the nine months ended September 30, 2014, we used a risk-free interest rate of 0.65% and an expected volatility rate of 25.89% (the plan defined peer index assumes 21.77%) and assumed a dividend yield of zero.
(b)
The total fair value of shares vested during the nine months ended September 30, 2014 was $24.7 million. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date, pursuant to previously-made deferral elections. At September 30, 2014, we had an obligation to issue 889,863 shares of our common stock underlying such deferred shares, which is recorded within W. P. Carey stockholders’ equity as a Deferred compensation obligation of $30.6 million.
(c)
Vesting and payment of the PSUs is conditioned upon certain company and market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. In connection with the payment of the PSUs granted in 2011, which were paid out in February 2014, we adjusted the shares during the three months ended March 31, 2014 to reflect the actual number of shares issued. During the three months ended June 30, 2014 and September 30, 2014, we also adjusted the number of PSUs expected to vest based on updated forecasted performance targets. There was no impact on our consolidated financial statements related to these adjustments, as the initial fair value of our PSUs factored in the variability associated with the performance features of these awards.
(d)
At September 30, 2014, total unrecognized compensation expense related to these awards was approximately $31.4 million, with an aggregate weighted-average remaining term of 1.67 years.
Earnings Per Share Reconciliation
The following table summarizes basic and diluted earnings (in thousands, except share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Net income attributable to W. P. Carey
$
27,337

 
$
18,506

 
$
206,252

 
$
75,854

Allocation of distribution equivalents paid on unvested RSUs and RSAs in excess of income
(113
)
 
(139
)
 
(849
)
 
(570
)
Net income – basic
27,224

 
18,367

 
205,403

 
75,284

Income (loss) effect of dilutive securities, net of taxes
(8
)
 
128

 
74

 
77

Net income – diluted
$
27,216

 
$
18,495

 
$
205,477

 
$
75,361

 
 
 
 
 
 
 
 
Weighted-average shares outstanding – basic
100,282,082

 
68,397,176

 
96,690,675

 
68,719,264

Effect of dilutive securities
848,366

 
1,003,649

 
1,038,306

 
1,127,056

Weighted-average shares outstanding – diluted
101,130,448

 
69,400,825

 
97,728,981

 
69,846,320
Redeemable Noncontrolling Interest
The following table presents a reconciliation of the effect of transfers in noncontrolling interest (in thousands):
 
 
Nine Months Ended September 30,
 
 
2014
 
2013
Net income attributable to W. P. Carey
 
$
206,252

 
$
75,854

Transfers to noncontrolling interest
 
 
 
 
Decrease in W. P. Carey’s additional paid-in capital for purchases of less-than-wholly-owned investments in connection with the CPA®:16 Merger (a)
 
(41,374
)
 
—

Net transfers to noncontrolling interest
 
(41,374
)
 
—

Change from net income attributable to W. P. Carey and transfers to noncontrolling interest
 
$
164,878

 
$
75,854

__________
(a)
During the second quarter of 2014, we identified certain measurement period adjustments that impacted the provisional accounting of the CPA®:16 Merger, which increased the fair value of our previously-held noncontrolling interests on the acquisition date by $0.6 million, resulting in a reduction of $0.6 million to additional paid-in-capital.
The following table presents a reconciliation of redeemable noncontrolling interest (in thousands):
 
 
Nine Months Ended September 30,
 
 
2014
 
2013
Beginning balance
 
$
7,436

 
$
7,531

Redemption value adjustment
 
(306
)
 
—

Net income
 
137

 
139

Distributions
 
(926
)
 
(354
)
Change in other comprehensive income
 
5

 
—

Ending balance
 
$
6,346

 
$
7,316
Reclassification Out of Accumulated Other Comprehensive Income
The following tables present a reconciliation of changes in Accumulated other comprehensive (loss) income by component for the periods presented (in thousands):
 
Three Months Ended September 30, 2014
 
Gains and Losses on Derivative Instruments
 
Foreign Currency Translation Adjustments
 
Gains and Losses on Marketable Securities
 
Total
Beginning balance
$
(12,052
)
 
$
26,224

 
$
43

 
$
14,215

Other comprehensive income (loss) before reclassifications
15,725

 
(55,096
)
 
(12
)
 
(39,383
)
Amounts reclassified from accumulated other comprehensive income (loss) to:
 
 
 
 
 
 
 
Interest expense
661

 
—

 
—

 
661

Other income and (expenses)
(337
)
 
—

 
—

 
(337
)
Net income from equity investments in real estate and the Managed REITs
102

 
—

 
—

 
102

Total
426

 
—

 
—

 
426

Net current period other comprehensive income (loss)
16,151

 
(55,096
)
 
(12
)
 
(38,957
)
Net current period other comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interest
—

 
3,471

 
—

 
3,471

Ending balance
$
4,099

 
$
(25,401
)
 
$
31

 
$
(21,271
)
 
Three Months Ended September 30, 2013
 
Gains and Losses on Derivative Instruments
 
Foreign Currency Translation Adjustments
 
Gains and Losses on Marketable Securities
 
Total
Beginning balance
$
(2,253
)
 
$
(762
)
 
$
31

 
$
(2,984
)
Other comprehensive (loss) income before reclassifications
(4,711
)
 
17,675

 
—

 
12,964

Amounts reclassified from accumulated other comprehensive income (loss) to:
 
 
 
 
 
 
 
Interest expense
436

 
—

 
—

 
436

Other income and (expenses)
206

 
—

 
—

 
206

Net income from equity investments in real estate and the Managed REITs
56

 
—

 
—

 
56

Total
698

 
—

 
—

 
698

Net current period other comprehensive (loss) income
(4,013
)
 
17,675

 
—

 
13,662

Net current period other comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interest
—

 
(2,052
)
 
—

 
(2,052
)
Ending balance
$
(6,266
)
 
$
14,861

 
$
31

 
$
8,626

 
Nine Months Ended September 30, 2014
 
Gains and Losses on Derivative Instruments
 
Foreign Currency Translation Adjustments
 
Gains and Losses on Marketable Securities
 
Total
Beginning balance
$
(7,488
)
 
$
22,793

 
$
31

 
$
15,336

Other comprehensive income (loss) before reclassifications
8,696

 
(52,140
)
 
—

 
(43,444
)
Amounts reclassified from accumulated other comprehensive income (loss) to:
 
 
 
 
 
 
 
Interest expense
2,024

 
—

 
—

 
2,024

Other income and (expenses)
487

 
—

 
—

 
487

Net income from equity investments in real estate and the Managed REITs
380

 
—

 
—

 
380

Total
2,891

 
—

 
—

 
2,891

Net current period other comprehensive income (loss)
11,587

 
(52,140
)
 
—

 
(40,553
)
Net current period other comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interest
—

 
3,946

 
—

 
3,946

Ending balance
$
4,099

 
$
(25,401
)
 
$
31

 
$
(21,271
)
 
Nine Months Ended September 30, 2013
 
Gains and Losses on Derivative Instruments
 
Foreign Currency Translation Adjustments
 
Gains and Losses on Marketable Securities
 
Total
Beginning balance
$
(7,508
)
 
$
2,828

 
$
31

 
$
(4,649
)
Other comprehensive (loss) income before reclassifications
(727
)
 
13,017

 
—

 
12,290

Amounts reclassified from accumulated other comprehensive income (loss) to:
 
 
 
 
 
 
 
Interest expense
1,311

 
—

 
—

 
1,311

Other income and (expenses)
182

 
—

 
—

 
182

Net income from equity investments in real estate and the Managed REITs
476

 
—

 
—

 
476

Total
1,969

 
—

 
—

 
1,969

Net current period other comprehensive income
1,242

 
13,017

 
—

 
14,259

Net current period other comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interest
—

 
(984
)
 
—

 
(984
)
Ending balance
$
(6,266
)
 
$
14,861

 
$
31

 
$
8,626