Discontinued Operations
 6 Months Ended
Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
On May 31, 2018, the Company completed the Spin-Off of SMTA by means of a pro rata distribution of one share of SMTA common stock for every ten shares of Spirit common stock held by each of Spirit's stockholders of record as of May 18, 2018. The Company determined that the Spin-Off represented a strategic shift that has a major effect on the Company's results and, therefore, SMTA's operations qualify as discontinued operations. Accordingly, beginning in the second quarter of 2018, the historical financial results of SMTA are reflected in our consolidated financial statements as discontinued operations for all periods presented.
The assets and liabilities related to discontinued operations are separately classified on the consolidated balance sheets as of December 31, 2017, and the operations have been classified as (loss) income from discontinued operations on the consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017. The consolidated statements of cash flows and all other notes herein include the results of both continuing operations and discontinued operations.
Goodwill was allocated to SMTA based on the fair value of SMTA relative to the total fair value of the Company, resulting in a reduction in goodwill of the Company of $28.7 million as a result of the Spin-Off. This reduction in the Company's goodwill is reflected in the SMTA dividend distribution in the accompanying consolidated statement of stockholders' equity and consolidated statement of partners' capital.
The table below summarizes the Company's assets and liabilities related to discontinued operations reported in its consolidated balance sheets.
 
 
December 31, 2017
(in thousands)
 
 
Assets
 
 
Investments:
 
 
Real estate investments:
 
 
Land and improvements
 
$
990,575

Buildings and improvements
 
1,702,926

Total real estate investments
 
2,693,501

Less: accumulated depreciation
 
(572,075
)
 
 
2,121,426

Loans receivable, net
 
1,501

Intangible lease assets, net
 
103,651

Real estate assets held for sale, net
 
28,460

Net investments
 
2,255,038

Cash and cash equivalents
 
6

Deferred costs and other assets, net
 
109,096

Goodwill
 
28,740

Total assets of discontinued operations
 
$
2,392,880

 
 
 
Liabilities
 
 
Mortgages and notes payable, net
 
$
1,926,834

Intangible lease liabilities, net
 
24,729

Accounts payable, accrued expenses and other liabilities
 
17,277

Total liabilities of discontinued operations
 
$
1,968,840

The table below provides information about income and expenses related to the Company's discontinued operations reported in its consolidated statements of operations and comprehensive income.
 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands)
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
Rentals
 
$
39,843

 
$
57,569

 
$
99,816

 
$
115,408

Interest income on loans receivable
 
663

 
120

 
1,495

 
239

Tenant reimbursement income
 
306

 
308

 
856

 
793

Other income
 
392

 
1,968

 
776

 
2,450

Total revenues
 
41,204

 
59,965

 
102,943

 
118,890

Expenses:
 
 
 
 
 
 
 
 
General and administrative
 
112

 
994

 
707

 
2,236

Transaction costs
 
16,033

 
485

 
19,965

 
485

Property costs (including reimbursable)
 
1,405

 
1,852

 
3,268

 
4,670

Real estate acquisition costs
 
338

 
10

 
339

 
(97
)
Interest
 
18,508

 
18,775

 
46,521

 
37,592

Depreciation and amortization
 
14,038

 
20,779

 
35,461

 
41,898

Impairments (recoveries)
 
(129
)
 
5,922

 
10,943

 
12,415

Total expenses
 
50,305

 
48,817

 
117,204

 
99,199

(Loss) income from discontinued operations before other income (loss) and income tax expense
 
(9,101
)
 
11,148

 
(14,261
)
 
19,691

Other income:
 
 
 
 
 
 
 
 
(Loss) gain on debt extinguishment
 
(108
)
 
1

 
(363
)
 
1

Gain (loss) on disposition of assets
 
1,582

 
8,389

 
(274
)
 
19,593

Total other income (loss)
 
1,474

 
8,390

 
(637
)
 
19,594

(Loss) income from discontinued operations before income tax expense
 
(7,627
)
 
19,538

 
(14,898
)
 
39,285

Income tax expense
 
(26
)
 
(105
)
 
(115
)
 
(153
)
(Loss) income from discontinued operations
 
$
(7,653
)
 
$
19,433

 
$
(15,013
)
 
$
39,132

The table below provides information about operating and investing cash flows related to the Company's discontinued operations reported in its consolidated statements of cash flows.
 
 
Six Months Ended June 30,
 
 
2018
 
2017
(in thousands)
 
 
 
 
Net cash provided by operating activities
 
$
36,589

 
$
79,950

Net cash (used in) provided by investing activities
 
(31,452
)
 
74,130


Continuing Involvement
Subsequent to the Spin-Off, the Company will have continuing involvement with SMTA through the terms of the Asset Management Agreement and Property Management and Servicing Agreement. For detail on the continuing involvement, see Note 11 Related Party Transactions and Arrangements. Subsequent to the Spin-Off, the Company has had cash inflows from SMTA of $9.6 million and cash outflows to SMTA of $7.1 million.