Intangible Assets and Liabilities

In connection with our acquisitions of properties (Note 4), we have recorded net lease intangibles that are being amortized over periods ranging from one year to 30 years. In addition, we have ground lease intangibles that are being amortized over periods of up to 99 years. In-place lease intangibles are included in In-place lease intangible assets, net in the consolidated financial statements. Below-market ground lease intangibles and above-market rent intangibles are included in Other intangible assets, net in the consolidated financial statements. Below-market rent intangibles and above-market ground lease intangibles are included in Prepaid and deferred rental income in the consolidated financial statements.

In connection with our investment activity during the year ended December 31, 2014, we recorded net lease intangibles comprised as follows (life in years, dollars in thousands):



	Weighted-Average Life	Amount
Amortizable Intangible Assets
In-place lease	11.4	$	135,679
Above-market rent	13.7	11,067
Below-market ground lease	74.9	9,625
		$	156,371
Amortizable Intangible Liabilities
Below-market rent	16.2	$	(4,723	)
Above-market ground lease	81.1	(133		)
		$	(4,856	)

Goodwill is included in the consolidated financial statements. The following table presents a reconciliation of our goodwill (in thousands):



	Total
Balance at January 1, 2014	$	—
Acquisition of Siemens AS ^(a)	6,982
Acquisition of Albion Resorts ^(a)	4,058
Foreign currency translation adjustment	(1,348		)
Balance at December 31, 2014	$	9,692

___________


(a)	This asset represents the consideration exceeding the fair value of the identifiable assets acquired and liabilities assumed in our Siemens AS and Albion Resorts investments (Note 4).

We performed our annual test for impairment during the fourth quarter of 2014 for goodwill recorded in our sole reporting unit, and no impairment was indicated.

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



	December 31,
	2014									2013
	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Amortizable Intangible Assets
In-place lease	$	177,970		$	(10,335	)	$	167,635		$	53,832		$	(495	)	$	53,337
Below-market ground lease	15,790			(167		)	15,623			8,227			(3		)	8,224
Above-market rent	10,424			(380		)	10,044			—			—			—
	204,184			(10,882		)	193,302			62,059			(498		)	61,561
Unamortizable Intangible Assets
Goodwill	9,692			—			9,692			—			—			—
Total intangible assets	$	213,876		$	(10,882	)	$	202,994		$	62,059		$	(498	)	$	61,561

Amortizable Intangible Liabilities
Below-market rent	$	(6,276	)	$	347		$	(5,929	)	$	(1,647	)	$	40		$	(1,607	)
Above-market ground lease	(127		)	—			(127		)	—			—			—
Total intangible liabilities	$	(6,403	)	$	347		$	(6,056	)	$	(1,647	)	$	40		$	(1,607	)

Net amortization of intangibles, including the effect of foreign currency translation, was $10.6 million and $0.5 million for the years ended December 31, 2014 and 2013, respectively. Amortization of below-market and above-market rent intangibles is recorded as an adjustment to Rental income in the consolidated financial statements. We amortize in-place lease intangibles to Depreciation and amortization expense in the consolidated financial statements over the remaining initial term of each lease. Amortization of below-market and above-market ground lease intangibles is included in Property expenses in the consolidated financial statements.

Based on the intangible assets and liabilities recorded at December 31, 2014, scheduled annual net amortization of intangibles is as follows (in thousands):



Years Ending December 31,	Net Decrease in Rental Income		Increase to Amortization/Property Expenses		Net
2015	$	98	$	17,298	$	17,396
2016	427		16,572		16,999
2017	370		14,865		15,235
2018	304		13,636		13,940
2019	295		13,113		13,408
Thereafter	2,621		107,647		110,268
Total	$	4,115	$	183,131	$	187,246