Intangible Assets and Liabilities

12 Months Ended

Dec. 31, 2021

Intangible Assets And Liabilities [Abstract]

In-place lease and above-market rent intangibles are included in In-place lease and other intangible assets in the consolidated financial statements. Below-market rent intangibles are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements.

Goodwill is included in our Net Lease segment, which is also the reporting unit for goodwill impairment testing, and is included in Other assets, net in the consolidated financial statements. As a result of foreign currency translation adjustments, goodwill increased from $26.0 million as of December 31, 2019 to $27.3 million as of December 31, 2020. Goodwill decreased from $27.3 million as of December 31, 2020 to $26.0 million as of December 31, 2021, reflecting the impact of foreign currency translation adjustments.

We performed our annual test for impairment during the fourth quarter of 2021 for goodwill and no impairment was indicated.

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


		December 31,
		2021						2020
	Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-Lived Intangible Assets
In-place lease	9 – 23	$	240,432	$	(162,497)	$	77,935	$	244,963	$	(151,613)	$	93,350
Above-market rent	9 – 30	10,294		(6,081)		4,213		10,773		(5,670)		5,103
		250,726		(168,578)		82,148		255,736		(157,283)		98,453
Goodwill
Goodwill		26,021		—		26,021		27,259		—		27,259
Total intangible assets		$	276,747	$	(168,578)	$	108,169	$	282,995	$	(157,283)	$	125,712

Finite-Lived Intangible Liabilities
Below-market rent	9 – 30	$	(14,654)	$	8,755	$	(5,899)	$	(14,776)	$	7,755	$	(7,021)
Total intangible liabilities		$	(14,654)	$	8,755	$	(5,899)	$	(14,776)	$	7,755	$	(7,021)

Net amortization of intangibles, including the effect of foreign currency translation, was $14.2 million, $17.3 million, and $20.4 million for the years ended December 31, 2021, 2020, and 2019, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to rental income; amortization of in-place lease intangibles is included in Depreciation and amortization on our consolidated statements of income.

Based on the intangible assets and liabilities recorded as of December 31, 2021, scheduled annual net amortization of intangibles for the next five calendar years and thereafter is as follows (in thousands):


Years Ending December 31,	Net (Increase) Decrease in Rental Income		Increase to Amortization		Net
2022	$	(391)	$	14,203	$	13,812
2023	(489)		12,011		11,522
2024	(529)		9,539		9,010
2025	(548)		8,741		8,193
2026	(206)		7,113		6,907
Thereafter	477		26,328		26,805
	$	(1,686)	$	77,935	$	76,249