Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net, consisted of the following at December 31, 2016 and 2015 (amounts in thousands):



	2016			2015
Leasing costs	$	140,325		$	121,864
Acquired in-place lease value and deferred leasing costs	253,113			285,902
Acquired above-market leases	74,770			81,680
	468,208			489,446
Less: accumulated amortization	(195,617		)	(178,767		)
Total deferred costs, net, excluding net deferred financing costs	$	272,591		$	310,679

At December 31, 2016, $4.5 million of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the consolidated balance sheet.

Amortization expense related to deferred leasing and acquired deferred leasing costs was $24.2 million, $25.4 million, and $21.9 million, for the years ended December 31, 2016, 2015, and 2014, respectively. Amortization expense related to acquired lease intangibles was $24.6 million, $37.7 million and $33.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Amortizing acquired intangible assets and liabilities consisted of the following at December 31, 2016 and 2015 (amounts in thousands):



	2016			2015
Acquired below-market ground leases	$	396,916		$	396,916
Less: accumulated amortization	(20,856		)	(13,025		)
Acquired below-market ground leases, net	$	376,060		$	383,891



	2016			2015
Acquired below-market leases	$	(135,026	)	$	(163,290	)
Less: accumulated amortization	52,726			59,119
Acquired below-market leases, net	$	(82,300	)	$	(104,171	)

Rental revenue related to the amortization of below market leases, net of above market leases was $8.8 million, $19.4 million and $14.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. The remaining weighted-average amortization period as of December 31, 2016 is 25.5 years, 4.9 years, 3.9 years and 4.4 years for below-market ground leases, in-place leases and deferred leasing costs, above-market leases and below-market leases, respectively. We expect to recognize amortization expense and rental revenue from the acquired intangible assets and liabilities as follows (amounts in thousands):



For the year ending:	Future Ground Rent Amortization		Future Amortization Expense		Future Rental Revenue
2017	$	7,831	$	24,359	$	6,092
2018	7,831		19,021		6,378
2019	7,831		16,338		6,557
2020	7,831		13,284		3,453
2021	7,831		11,420		2,825
Thereafter	336,905		52,169		15,829
	$	376,060	$	136,591	$	41,134

As of December 31, 2016, we had goodwill of $491.5 million. In 2013, we acquired the interests in Empire State Building Company, L.L.C. and 501 Seventh Avenue Associates, L.L.C. for an amount in excess of their net tangible and identified intangible assets and liabilities and as a result we recorded goodwill related to the transaction. Goodwill was allocated $227.5 million to the observatory operations of the Empire State Building, $250.8 million to Empire State Building, and $13.2 million to 501 Seventh Avenue.

We performed an annual review of goodwill for impairment and concluded there was no impairment of goodwill. Our methodology to review goodwill impairment, which includes a significant amount of judgment and estimates, provides a reasonable basis to determine whether impairment has occurred. However, many of the factors employed in determining whether or not goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods.