Revisions of Previously-Issued Financial Statements

In the course of preparing our 2014 consolidated financial statements, we discovered an error related to our accounting for a subsidiary’s functional currency. We corrected this error, and other errors previously recorded as out-of-period adjustments, and revised our consolidated financial statements for all prior periods impacted. Accordingly, our financial results for the three and six months ended June 30, 2014 and total equity at January 1, 2014 presented herein have been revised for the correction of such errors as follows (in thousands, except share and per share amounts):

Consolidated Statements of Income



	Three Months Ended June 30, 2014									Six Months Ended June 30, 2014
	As Reported			Revisions			As Revised			As Reported			Revisions			As Revised
Revenues
Total revenues	$	98,786		$	—		$	98,786		$	199,936		$	—		$	199,936
Operating Expenses
Total operating expenses	53,365			—			53,365			111,889			—			111,889
Other Income and Expenses
Equity in earnings of equity method investments in real estate	10,974			(932		)	10,042			7,725			(547		)	7,178
Other income and (expenses)	946			(776		)	170			1,898			(1,046		)	852
Interest expense	(23,264		)	—			(23,264		)	(46,593		)	—			(46,593		)
	(11,344		)	(1,708		)	(13,052		)	(36,970		)	(1,593		)	(38,563		)
Income before income taxes and gain on sale of real estate	34,077			(1,708		)	32,369			51,077			(1,593		)	49,484
Provision for income taxes	(2,664		)	(7		)	(2,671		)	(3,361		)	52			(3,309		)
Income before gain on sale of real estate	31,413			(1,715		)	29,698			47,716			(1,541		)	46,175
Gain on sale of real estate, net of tax	12,548			—			12,548			12,548			—			12,548
Net Income	43,961			(1,715		)	42,246			60,264			(1,541		)	58,723
Net income attributable to noncontrolling interests	(7,640		)	—			(7,640		)	(15,317		)	—			(15,317		)
Net Income Attributable to CPA^®:17 – Global	$	36,321		$	(1,715	)	$	34,606		$	44,947		$	(1,541	)	$	43,406
Earnings Per Share	$	0.11		$	—		$	0.11		$	0.14		$	—		$	0.14
Weighted-Average Shares Outstanding	322,723,562						322,723,562			321,240,449						321,240,449

Consolidated Statements of Comprehensive Income



	Three Months Ended June 30, 2014									Six Months Ended June 30, 2014
	As Reported			Revisions			As Revised			As Reported			Revisions			As Revised
Net Income	$	43,961		$	(1,715	)	$	42,246		$	60,264		$	(1,541	)	$	58,723
Other Comprehensive Loss
Foreign currency translation adjustments	(6,042		)	1,032			(5,010		)	(7,432		)	1,362			(6,070		)
Change in net unrealized loss on derivative instruments	(1,572		)	(258		)	(1,830		)	(4,023		)	(318		)	(4,341		)
Change in unrealized gain on marketable securities	23			—			23			47			—			47
	(7,591		)	774			(6,817		)	(11,408		)	1,044			(10,364		)
Comprehensive Income	36,370			(941		)	35,429			48,856			(497		)	48,359

Amounts Attributable to Noncontrolling Interests
Net income	(7,640		)	—			(7,640		)	(15,317		)	—			(15,317		)
Foreign currency translation adjustments	93			—			93			97			—			97
Change in net unrealized gain on derivative instruments	(160		)	—			(160		)	(309		)	—			(309		)
Comprehensive income attributable to noncontrolling interests	(7,707		)	—			(7,707		)	(15,529		)	—			(15,529		)
Comprehensive Income Attributable to CPA^®:17 – Global	$	28,663		$	(941	)	$	27,722		$	33,327		$	(497	)	$	32,830

Consolidated Statement of Equity



	CPA^®:17 – Global
Balance at January 1, 2014	Total Outstanding Shares	Common Stock		Additional Paid-In Capital		Distributions in Excess of Accumulated Earnings (a)			Accumulated Other Comprehensive Loss			Treasury Stock			Total CPA^®:17 – Global Stockholders		Noncontrolling Interests		Total
As Reported	317,353,899	$	323	$	2,904,927	$	(439,688	)	$	(5,275	)	$	(52,477	)	$	2,407,810	$	77,488	$	2,485,298
Revisions	—	—		—		8,593			(8,167		)	—			426		—		426
As Revised	317,353,899	$	323	$	2,904,927	$	(431,095	)	$	(13,442	)	$	(52,477	)	$	2,408,236	$	77,488	$	2,485,724

__________


(a)	The amount previously reported also reflects changes to prior period amounts related to the change in accounting for our investment in BG LLH, LLC, as more fully described in Note 3.

Description of the Errors and Revisions

In the fourth quarter of 2014, we identified an error in the consolidated financial statements related to the accounting for foreign currency matters. We identified that one of our consolidated subsidiary’s functional currency had been incorrectly designated as the euro instead of the U.S. dollar since the subsidiary was formed in 2009. As a result, the applicable financial results of this entity were being translated when they should have been remeasured. The correction of this error resulted in the recognition of foreign currency gains within the consolidated statements of income, specifically within Other income and (expenses), instead of as foreign currency translation adjustments within the consolidated statements of comprehensive income. We concluded that these revision adjustments were not material to our financial position or results of operations for 2014 or any of the prior periods and revised the prior period presented herein to reflect the correction of this error. These revision adjustments resulted in a decrease in Other income and (expenses) of $0.8 million and $1.0 million for the three and six months ended June 30, 2014, respectively. The impact of these revision adjustments on both Distributions in excess of accumulated earnings and Accumulated other comprehensive loss was $8.1 million at January 1, 2014.

In connection with the error identified above, we also made adjustments to reflect the correction of other out-of-period adjustments identified during 2014, 2013, 2012, and 2011 to record these adjustments in the applicable prior periods. We concluded that none of the following revision adjustments were material to our financial position or results of operations for any of the periods presented:

•

In 2014, we identified a classification error on one of our derivative instruments. Accordingly, we reclassified its associated mark-to-market adjustments during 2014, 2013, and 2012 from Change in net unrealized gain (loss) on derivative instruments to Foreign currency translation adjustments within the consolidated statements of equity and comprehensive income. There was no net impact to Other comprehensive loss or Comprehensive income for the three and six months ended June 30, 2014. There was no net impact on Total equity at January 1, 2014 related to this reclassification.

•

In the first quarter of 2014, we changed the accounting related to deferred foreign income taxes for one of our equity investments in real estate and we identified an additional tax-paying entity related to another of our equity investments in real estate. In the fourth quarter of 2013, we identified an error in the consolidated financial statements related to accounting for deferred foreign income taxes in connection with the acquisition of 15 properties acquired during 2008 through 2012. These revision adjustments resulted in an increase in Equity in earnings of equity method investments in real estate of $0.9 million and $0.5 million for the three and six months ended June 30, 2014, respectively, and an (increase)/decrease in Provision for income taxes of less than ($0.1 million) and less than $0.1 million for the three and six months ended June 30, 2014, respectively. The impact of these revision adjustments on Distributions in excess of accumulated earnings and Accumulated other comprehensive loss was $0.5 million and less than $0.1 million, respectively, at January 1, 2014.

Statement of Cash Flows

These revisions resulted in a decrease of Net cash provided by operating activities of $0.5 million and a corresponding decrease of Net cash used in investing activities of $0.5 million in the statement of cash flows for the six months ended June 30, 2014. These revisions had no impact on Net cash provided by financing activities in the statement of cash flows for the six months ended June 30, 2014.