Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2023

Goodwill And Intangible Assets Liabilities Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other Intangibles

We have recorded lease and internal-use software development intangibles that are being amortized over periods ranging from one year to 48 years. In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements.

Net lease intangibles recorded in connection with property acquisitions during the nine months ended September 30, 2023 are described in Note 5.

Goodwill decreased by $3.2 million during the nine months ended September 30, 2023 due to foreign currency translation adjustments, and was fully reflected within our Real Estate segment as of both September 30, 2023 and December 31, 2022.

Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands):

	September 30, 2023						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-Lived Intangible Assets
Internal-use software development costs	$	20,496	$	(19,463)	$	1,033	$	19,812	$	(19,144)	$	668
	20,496		(19,463)		1,033		19,812		(19,144)		668
Lease Intangibles:
In-place lease	2,549,879		(1,131,197)		1,418,682		2,523,318		(1,061,235)		1,462,083
Above-market rent	771,071		(506,380)		264,691		833,751		(507,436)		326,315
	3,320,950		(1,637,577)		1,683,373		3,357,069		(1,568,671)		1,788,398
Goodwill
Goodwill	1,034,183		—		1,034,183		1,037,412		—		1,037,412
Total intangible assets	$	4,375,629	$	(1,657,040)	$	2,718,589	$	4,414,293	$	(1,587,815)	$	2,826,478
Finite-Lived Intangible Liabilities
Below-market rent	$	(233,089)	$	80,040	$	(153,049)	$	(293,160)	$	125,287	$	(167,873)
Indefinite-Lived Intangible Liabilities
Below-market purchase option	—		—		—		(16,711)		—		(16,711)
Total intangible liabilities	$	(233,089)	$	80,040	$	(153,049)	$	(309,871)	$	125,287	$	(184,584)

During the nine months ended September 30, 2023, the U.S. dollar strengthened against the euro, resulting in an decrease of $1.3 million in the carrying value of our net intangible assets from December 31, 2022 to September 30, 2023. See Note 6 for a description of intangible assets and liabilities reclassified to net investments in sales-type leases during the nine months ended September 30, 2023.

Net amortization of intangibles, including the effect of foreign currency translation, was $62.6 million and $62.1 million for the three months ended September 30, 2023 and 2022, respectively, and $193.7 million and $165.6 million for the nine months ended September 30, 2023 and 2022, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development and in-place lease intangibles is included in Depreciation and amortization.