XML 77 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Investments in and Advances to Unconsolidated Joint Ventures | 9 Months Ended
--- | ---
Sep. 30, 2014
Investments in and Advances to Unconsolidated Joint Ventures |
Investments in and Advances to Unconsolidated Joint Ventures | (8)Investments in and Advances to Unconsolidated Joint Ventures On August 29, 2014, as part of the Brookdale Transaction discussed in Note 3, HCP and Brookdale formed new unconsolidated joint ventures that own 14 CCRC campuses in a RIDEA structure. At closing, Brookdale contributed eight of its owned campuses; the Company contributed two campuses previously leased to Brookdale valued at $162 million (carrying value of $92 million) and $370 million of cash. At closing, the CCRC JV campuses were encumbered by $569 million of mortgage and entrance fee obligations. See additional information regarding the Brookdale Transaction in Note 3. The Company owns interests in the following entities that are accounted for under the equity method at September 30, 2014 (dollars in thousands):
Entity(1) |  | Segment |  | Investment(2) |  | Ownership% |
CCRC JV(3) |  | senior housing |  | $ | 459,916 |  |  | 49 |  |
HCR ManorCare |  | post-acute/skilled nursing |  |  | 76,876 |  |  | 9.4 |  |
HCP Ventures III, LLC |  | medical office |  |  | 6,868 |  |  | 30 |  |
HCP Ventures IV, LLC |  | medical office and hospital |  |  | 27,560 |  |  | 20 |  |
HCP Life Science(4) |  | life science |  |  | 70,771 |  | 50 | – | 63 |
Suburban Properties, LLC |  | medical office |  |  | 5,716 |  |  | 67 |  |
Advances to unconsolidated joint ventures, net |  |  |  |  | 216 |  |  |  |  |
|  |  |  | $ | 647,923 |  |  |  |  |
Edgewood Assisted Living Center, LLC |  | senior housing |  | $ | (440) |  |  |  |  |
Seminole Shores Living Center, LLC |  | senior housing |  |  | (645) |  |  |  |  |
|  |  |  | $ | (1,085) |  |  |  |  |
(1) These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures. (2) Represents the carrying value of the Company’s investment in the unconsolidated joint ventures. Negative balances are recorded in accounts payable and accrued liabilities on the Company’s Condensed Consolidated Balance Sheets. (3) Includes two unconsolidated joint ventures between the Company and Brookdale: (i) CCRC PropCo ($210 million) and (ii) CCRC OpCo ($250 million). See additional information regarding the Brookdale Transaction in Note 3. (4) Includes three unconsolidated joint ventures between the Company and an institutional capital partner for which the Company is the managing member. HCP Life Science includes the following partnerships (and the Company’s ownership percentage): (i) Torrey Pines Science Center, LP (50%); (ii) Britannia Biotech Gateway, LP (55%); and (iii) LASDK, LP (63%). Summarized combined financial information for the Company’s unconsolidated joint ventures follows (in thousands):
|  | September 30, |  | December 31, |
|  | 2014(1) |  | 2013 |
Real estate, net |  | $ | 5,159,092 |  | $ | 3,662,450 |
Goodwill and other assets, net |  |  | 5,482,542 |  |  | 5,384,553 |
Total assets |  | $ | 10,641,634 |  | $ | 9,047,003 |
Capital lease obligations and debt |  | $ | 7,221,580 |  | $ | 6,768,815 |
Accounts payable |  |  | 1,103,072 |  |  | 1,045,260 |
Other partners’ capital |  |  | 1,648,992 |  |  | 1,098,228 |
HCP’s capital(2) |  |  | 667,990 |  |  | 134,700 |
Total liabilities and partners’ capital |  | $ | 10,641,634 |  | $ | 9,047,003 |
(1) Includes the financial information of the CCRC JV, which the Company formed on August 29, 2014. (2) The combined basis difference of the Company’s investments in these joint ventures of $21 million, as of September 30, 2014, is primarily attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2014(1) |  | 2013 |  | 2014(1) |  | 2013 |
Total revenues |  | $ | 1,087,010 |  | $ | 1,046,789 |  | $ | 3,224,839 |  | $ | 3,182,052 |
Income (loss) from discontinued operations |  |  | 3,600 |  |  | (2,600) |  |  | (2,000) |  |  | (8,300) |
Net income (loss) |  |  | (702) |  |  | 2,538 |  |  | (4,826) |  |  | 23,032 |
HCP’s share of earnings(2) |  |  | 10,168 |  |  | 13,892 |  |  | 39,388 |  |  | 44,278 |
Fees earned by HCP |  |  | 447 |  |  | 464 |  |  | 1,340 |  |  | 1,406 |
Distributions received by HCP |  |  | 2,113 |  |  | 1,390 |  |  | 5,881 |  |  | 3,918 |
(1) Includes the financial information of the CCRC JV, which the Company formed on August 29, 2014. (2) The Company’s joint venture interest in HCR ManorCare is accounted for using the equity method and results in an ongoing elimination of DFL income proportional to HCP’s ownership in HCR ManorCare. The elimination of the respective proportional lease expense at the HCR ManorCare level in substance results in $16 million and $15 million of DFL income that is recharacterized to the Company’s share of earnings from HCR ManorCare (equity income from unconsolidated joint ventures) for the three months ended September 30, 2014 and 2013, respectively. For both the nine months ended September 30, 2014 and 2013, $47 million of DFL income was recharacterized to the Company’s share of earnings from HCR ManorCare.

X
- Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32787-111569 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32847-111569 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration