Deferred Costs, Acquired Lease Intangibles and Goodwill

3 Months Ended

Mar. 31, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net, consisted of the following as of March 31, 2018 and December 31, 2017 (amounts in thousands):

	March 31, 2018			December 31, 2017
Leasing costs	$	166,908		$	164,751
Acquired in-place lease value and deferred leasing costs	227,086			237,364
Acquired above-market leases	63,191			67,415
	457,185			469,530
Less: accumulated amortization	(209,143		)	(215,102		)
Total deferred costs, net, excluding net deferred financing costs	$	248,042		$	254,428

At March 31, 2018 and December 31, 2017, $7.8 million and $8.3 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet.    

Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $6.2 million and $6.2 million for the three months ended March 31, 2018 and 2017, respectively. Amortization expense related to acquired lease intangibles was $3.4 million and $4.4 million for the three months ended March 31, 2018 and 2017, respectively.

Amortizing acquired intangible assets and liabilities consisted of the following as of March 31, 2018 and December 31, 2017 (amounts in thousands):

	March 31, 2018			December 31, 2017
Acquired below-market ground leases	$	396,916		$	396,916
Less: accumulated amortization	(30,645		)	(28,687		)
Acquired below-market ground leases, net	$	366,271		$	368,229

	March 31, 2018			December 31, 2017
Acquired below-market leases	$	(124,615	)	$	(132,026	)
Less: accumulated amortization	62,197			65,979
Acquired below-market leases, net	$	(62,418	)	$	(66,047	)

Rental revenue related to the amortization of below-market leases, net of above-market leases, was $1.2 million and $1.4 million for the three months ended March 31, 2018 and 2017, respectively.

As of March 31, 2018, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate segment.