Stock-Based Compensation and Equity (Tables)

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Schedule of restricted and conditional award activity

Nonvested restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) at June 30, 2020 and changes during the six months ended June 30, 2020 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, 2020	283,977		$	68.51	331,242		$	80.90
Granted (a)	123,944		83.26		90,518		104.65
Vested (b)	(144,520	)	68.46		(156,838	)	80.42
Forfeited	(5,555	)	71.69		(6,715	)	88.94
Adjustment (c)	—		—		(25,522	)	62.86
Nonvested at June 30, 2020 (d)	257,846		$	75.56	232,685		$	91.42

__________

(a) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the six months ended June 30, 2020, we used a risk-free interest rate of 1.6%, an expected volatility rate of 15.2%, and assumed a dividend yield of zero.

(b) The grant date fair value of shares vested during the six months ended June 30, 2020 was $22.5 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 June 30, 2020 and December 31, 2019, we had an obligation to issue 986,859 and 893,713 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $42.0 million and $37.3 million, respectively.

(c) Vesting and payment of the PSUs is conditioned upon certain company and/or 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. As a result, we recorded adjustments at June 30, 2020 to reflect the number of shares expected to be issued when the PSUs vest.

(d)

At June 30, 2020, total unrecognized compensation expense related to these awards was approximately $26.1 million, with an aggregate weighted-average remaining term of 2.1 years.

Schedule of earnings per share reconciliation

The following table summarizes basic and diluted earnings (in thousands, except share amounts):

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020		2019
Net income attributable to W. P. Carey	$	105,300	$	66,038		$	171,390	$	134,532
Net income attributable to nonvested participating RSUs	—		(17		)	—		(35		)
Net income — basic and diluted	$	105,300	$	66,021		$	171,390	$	134,497
Weighted-average shares outstanding — basic	173,401,749		171,304,112			173,325,493		169,280,360
Effect of dilutive securities	71,006		186,513			189,401		240,148
Weighted-average shares outstanding — diluted	173,472,755		171,490,625			173,514,894		169,520,508

Reclassification out of accumulated other comprehensive income

The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands):

	Three Months Ended June 30, 2020
	Gains and (Losses) on Derivative Instruments			Foreign Currency Translation Adjustments			Gains and (Losses) on Investments		Total
Beginning balance	$	25,897		$	(320,915	)	$	—	$	(295,018	)
Other comprehensive income before reclassifications	(5,076		)	13,847			—		8,771
Amounts reclassified from accumulated other comprehensive loss to:
Other gains and (losses)	(4,834		)	—			—		(4,834		)
Interest expense	468			—			—		468
Total	(4,366		)	—			—		(4,366		)
Net current period other comprehensive income	(9,442		)	13,847			—		4,405
Ending balance	$	16,455		$	(307,068	)	$	—	$	(290,613	)

	Three Months Ended June 30, 2019
	Gains and (Losses) on Derivative Instruments			Foreign Currency Translation Adjustments			Gains and (Losses) on Investments			Total
Beginning balance	$	16,051		$	(269,264	)	$	530		$	(252,683	)
Other comprehensive loss before reclassifications	(1,548		)	(4,187		)	(541		)	(6,276		)
Amounts reclassified from accumulated other comprehensive loss to:
Other gains and (losses)	(3,405		)	—			—			(3,405		)
Interest expense	1,547			—			—			1,547
Total	(1,858		)	—			—			(1,858		)
Net current period other comprehensive loss	(3,406		)	(4,187		)	(541		)	(8,134		)
Ending balance	$	12,645		$	(273,451	)	$	(11	)	$	(260,817	)

	Six Months Ended June 30, 2020
	Gains and (Losses) on Derivative Instruments			Foreign Currency Translation Adjustments			Gains and (Losses) on Investments		Total
Beginning balance	$	13,048		$	(268,715	)	$	—	$	(255,667	)
Other comprehensive loss before reclassifications	11,318			(38,353		)	—		(27,035		)
Amounts reclassified from accumulated other comprehensive loss to:
Other gains and (losses)	(8,617		)	—			—		(8,617		)
Interest expense	706			—			—		706
Total	(7,911		)	—			—		(7,911		)
Net current period other comprehensive loss	3,407			(38,353		)	—		(34,946		)
Ending balance	$	16,455		$	(307,068	)	$	—	$	(290,613	)

	Six Months Ended June 30, 2019
	Gains and (Losses) on Derivative Instruments			Foreign Currency Translation Adjustments			Gains and (Losses) on Investments			Total
Beginning balance	$	14,102		$	(269,091	)	$	(7	)	$	(254,996	)
Other comprehensive loss before reclassifications	3,856			(4,360		)	(4		)	(508		)
Amounts reclassified from accumulated other comprehensive loss to:
Other gains and (losses)	(6,927		)	—			—			(6,927		)
Interest expense	1,614			—			—			1,614
Total	(5,313		)	—			—			(5,313		)
Net current period other comprehensive loss	(1,457		)	(4,360		)	(4		)	(5,821		)
Ending balance	$	12,645		$	(273,451	)	$	(11	)	$	(260,817	)