Segment Reporting

We operate in two reportable business segments: Net Lease and Self Storage. Our Net Lease segment includes our domestic and foreign investments in net-leased properties, whether they are accounted for as operating or direct financing leases. Our Self Storage segment is comprised of our investments in self-storage properties. In addition, we have investments in loans receivable, CMBS, one hotel, and certain other properties, which are included in our All Other category. The following tables present a summary of comparative results and assets for these business segments (in thousands):



	Three Months Ended March 31,
	2018			2017
Net Lease
Revenues ^{(a) (b)}	$	96,992		$	112,523
Operating expenses ^{(c) (d)}	(41,957		)	(41,308		)
Interest expense	(17,692		)	(20,651		)
Other income and (expenses), excluding interest expense	4,559			3,459
(Provision for) benefit from income taxes	(404		)	614
Gain on sale of real estate, net of tax	24			1,739
Net income attributable to noncontrolling interests	(3,115		)	(2,325		)
Net income attributable to CPA:17 – Global	$	38,407		$	54,051
Self Storage
Revenues	$	9,045		$	8,742
Operating expenses	(5,448		)	(7,199		)
Interest expense	(1,911		)	(2,003		)
Other income and (expenses), excluding interest expense	—			(2		)
Provision for income taxes	(48		)	(32		)
Net income (loss) attributable to CPA:17 – Global	$	1,638		$	(494	)
All Other
Revenues ^(e)	$	7,245		$	1,740
Operating expenses ^(f)	(9,520		)	(38		)
Other income and (expenses), excluding interest expense	571			(2,408		)
Benefit from (provision for) income taxes	2,078			(650		)
Net loss attributable to noncontrolling interests	861			—
Net income (loss) attributable to CPA:17 – Global	$	1,235		$	(1,356	)
Corporate
Unallocated Corporate Overhead^(g)	$	(8,373	)	$	(7,380	)
Net income attributable to noncontrolling interests — Available Cash Distributions	$	(6,170	)	$	(6,810	)
Total Company
Revenues	$	113,282		$	123,005
Operating expenses	(67,684		)	(59,615		)
Interest expense	(20,550		)	(23,390		)
Other income and (expenses), excluding interest expense	8,686			6,028
Benefit from (provision for) income taxes	1,403			(621		)
Gain on sale of real estate, net of tax	24			1,739
Net income attributable to noncontrolling interests	(8,424		)	(9,135		)
Net income attributable to CPA:17 – Global	$	26,737		$	38,011



	Total Assets at
	March 31, 2018		December 31, 2017
Net Lease	$	4,017,437	$	3,980,445
All Other	264,629		277,702
Self-Storage	240,648		241,438
Corporate	70,410		87,885
Total Company	$	4,593,124	$	4,587,470

___________

(a)

Includes a $15.7 million write-off of a below-market rent lease liabilities pertaining to our KBR, Inc. properties that was recognized in Rental income as a result of a lease modification during the three months ended March 31, 2017 (Note 13). In addition, as a result of a lease termination, we accelerated the below-market rent lease intangible liabilities of $3.3 million that was also recognized in Rental income during the three months ended March 31, 2017.


(b)	During the three months ended March 31, 2018 and 2017 we recognized straight-line rent adjustments of $2.8 million and $3.5 million, respectively.


(c)	Includes an impairment charge of $4.5 million related to a net-leased property (Note 8) recognized during the three months ended March 31, 2017.

(d)

In April 2017, the Croatian government passed a special law assisting the restructuring of companies considered of systematic significance in Croatia. This law directly impacts our Agrokor tenant, which is currently experiencing financial distress and recently received a credit downgrade from both Standard & Poor’s and Moody’s. As a result of the financial difficulties and the uncertainty regarding future rent collections from the tenant, we recorded bad debt expense of $4.4 million and $1.6 million during the three months ended March 31, 2018 and 2017, respectively.


(e)	Amount includes the impact of adopting ASU 2017-05 (Note 2), which resulted in the recognition of $2.2 million of accretion into income during the three months ended March 31, 2018.


(f)	Includes an impairment charge of $5.4 million related to our CMBS investments (Note 8) recognized during the three months ended March 31, 2018.


(g)	Included in unallocated corporate overhead are asset management fees and general and administrative expenses, as well as interest expense and other charges related to our Senior Credit Facility. These expenses are calculated and reported at the portfolio level and not evaluated as part of any segment’s operating performance.