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Self Administration Transaction | 6 Months Ended
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Jun. 30, 2019
Business Combinations [Abstract] |
Self Administration Transaction | Self Administration Transaction Overview Fair Value of Consideration Transferred The Company accounted for the Self Administration Transaction as a business combination under the acquisition method of accounting. Under the terms of the Self Administration Transaction, the following consideration was given in exchange for 100% of the membership interests in GRECO:
| Amount
Fair value of EA-1 Operating Partnership units issued | $ | 205,000 |
Fair value of earn-outs | 29,380 |
Accrued liabilities: |
Executive deferred compensation plan | 7,795 |
Other liabilities | 11,890 |
Total consideration | 254,065 |
Less: accounts receivable from affiliates and other assets | (19,878 | )
Net consideration | $ | 234,187 |
The Company issued 20.4 million limited partnership units with an estimated fair value per unit of $10.03 at the time of the transaction. The terms of the Self Administration Transaction included two earn-outs structured with an estimated fair value obligation of approximately $29.4 million. Assets Acquired and Liabilities Assumed The Self Administration Transaction was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. During the six months ended June 30, 2019, the allocation of the Self Administration Transaction purchase price is considered preliminary. The Company is continuing to gather additional information to finalize the fair values of the assets and liabilities acquired. The following table summarizes the preliminary purchase price allocation:
| Amount
Assets: |
Accounts receivable from affiliates and other assets | $ | 19,878 |
Management contract intangibles | 4,239 |
Goodwill | 229,948 |
Total assets acquired | 254,065 |
Liabilities: |
Earn-outs (due to affiliates) | 29,380 |
Executive deferred compensation plan | 7,795 |
Other liabilities | 11,890 |
Total liabilities assumed | 49,065 |
Net assets acquired | $ | 205,000 |
The intangible assets acquired primarily consist of property management and advisory contracts that the Company, as advisor and property manager through certain subsidiaries, had with GCEAR. The value of the contracts was determined based on a discounted cash flow valuation of the projected revenues of the acquired contracts. The contracts are subject to an estimated useful life of approximately three months. As of June 30, 2019, the management and advisory contracts were fully amortized. The allocation of the purchase price was based on management’s assessment, which may change in the future as more information becomes available and could have an impact on the unaudited pro forma financial information presented below. Subsequent adjustments made to the purchase price allocation upon the completion of the Company's fair value assessment process will not exceed one year from the acquisition date. The allocation of the purchase price above required a significant amount of judgment and represented management’s best estimate of the fair value as of the acquisition date. Goodwill In connection with the Self Administration Transaction, the Company recorded goodwill of $229.9 million as a result of the consideration exceeding the fair value of the net assets acquired. Goodwill represents the estimated future benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded represents the Company's acquired workforce and its ability to generate additional opportunities for revenue and raise additional funds. Pro Forma Financial Information The following condensed pro forma operating information is presented as if the Self Administration Transaction and Mergers occurred in 2018 and had been included in operations as of January 1, 2018. The pro forma operating information excludes certain nonrecurring adjustments, such as acquisition fees and expenses incurred, to reflect the pro forma impact the acquisition would have on earnings on a continuous basis:
| Six Months Ended June 30, 2018
Revenue | $ | 166,390 |
Net income | $ | 32,989 |
Net income attributable to noncontrolling interests | $ | 5,001 |
Net income attributable to common stockholders (1) | $ | 27,812 |
Net income attributable to common stockholders per share, basic and diluted | $ | 0.16 |
(1) | Amount is net of net income attributable to noncontrolling interests, distributions to redeemable noncontrolling interests attributable to common stockholders and distributions to preferred shareholders.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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