XML 55 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Other Assets
3 Months Ended
Mar. 31, 2014
Other Assets.  
Other Assets

(9)         Other Assets

 

The Company’s other assets consisted of the following (in thousands):

 

 

 

March 31,

 

December 31,

 

 

 

2014

 

2013

 

Straight-line rent assets, net of allowance of $34,214 and $34,230 respectively

 

$

380,820

 

$

368,919

 

Marketable debt securities, net

 

245,649

 

244,089

 

Leasing costs, net

 

104,386

 

104,601

 

Deferred financing costs, net

 

48,230

 

42,106

 

Goodwill

 

50,346

 

50,346

 

Other(1)

 

99,759

 

57,644

 

Total other assets

 

$

929,190

 

$

867,705

 

 

(1)          Includes a $5.4 million allowance for losses related to accrued interest receivable on the Delphis loan, which accrued interest is included in other assets. At both March 31, 2014 and December 31, 2013, the carrying value of interest accrued related to the Delphis loan was zero. See Note 6 for additional information about the Delphis loan and the related impairment. At March 31, 2014 and December 31, 2013, includes a loan receivable of $12 million and $10 million, respectively, from HCP Ventures IV, LLC, an unconsolidated joint venture (see Note 7 for additional information) with an interest rate of 12% which matures in May 2015. The loan is secured by the joint venture partner’s 80% partnership interest in the joint venture.

 

During the three months ended March 31, 2013, the Company realized gains from the sale of marketable equity securities of $11 million, which were included in other income, net.

 

Four Seasons Health Care Senior Unsecured Notes

 

On June 28, 2012, the Company purchased senior unsecured notes with an aggregate par value of £138.5 million at a discount for £136.8 million ($214.9 million). The notes were issued by Elli Investments Limited, a subsidiary of Terra Firma, a European private equity firm, as part of its financing for the acquisition of Four Seasons Health Care (“Four Seasons”), an elderly and specialist care provider in the United Kingdom. The notes mature in June 2020 and are non-callable through June 2016. The notes bear interest on their par value at a fixed rate of 12.25% per annum, with an original issue discount resulting in a yield to maturity of 12.5%. This investment was financed by a GBP denominated unsecured term loan that is discussed in Note 10. These senior unsecured notes are accounted for as marketable debt securities and classified as held-to-maturity.