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Segment Disclosures | 12 Months Ended
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Dec. 31, 2015
Segment Disclosures |
Segment Disclosures | NOTE 14. Segment Disclosures The Company evaluates its business and makes resource allocations based on its five business segments: (i) senior housing, (ii) post-acute/skilled nursing, (iii) life science, (iv) medical office and (v) hospital. Under the medical office segment, the Company invests through the acquisition and development of MOBs, which generally require a greater level of property management. Otherwise, the Company primarily invests, through the acquisition and development of real estate, in single tenant and operator properties and debt issued by tenants and operators in these s ectors. The accounting policies of the segments are the same as those described under Summary of Significant Accounting Policies (see Note 2). There were no intersegment sales or transfers during the years ended December 31, 2015, 2014 and 2013. The Company evaluates performance based upon (i) property net operating income from continuing operations (“NOI”), (ii) adjusted NOI (cash NOI), and (iii) adjusted NOI plus interest income (“Portfolio Income”) of the combined investments in each segment. Non-segment assets consist primarily of corporate assets, including cash and cash equivalents, restricted cash, accounts receivable, net, marketable equity securities, deferred financing costs and, if any, real estate held for sale. Interest expense, depreciation and amortization, and non-property specific revenues and expenses are not allocated to individual segments in evaluating the Company’s segment-level performance. See Note 23 for other information regarding concentrations of credit risk. Summary information for the reportable segments follows (in thousands): For the year ended December 31, 2015:
|  | Senior |  | Post-acute/ |  | Life |  | Medical |  |  |  |  |  |
Segments |  | Housing |  | Skilled Nursing |  | Science |  | Office |  | Hospital |  | Total |
Rental revenues(1) |  | $ | 519,102 | (2) | $ | 535,111 | (2) | $ | 342,984 |  | $ | 419,225 |  | $ | 88,380 |  | $ | 1,904,802 |
Resident fees and services |  |  | 525,453 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 525,453 |
Operating expenses |  |  | (374,617) |  |  | (2,002) |  |  | (70,217) |  |  | (163,550) |  |  | (3,989) |  |  | (614,375) |
NOI |  |  | 669,938 |  |  | 533,109 |  |  | 272,767 |  |  | 255,675 |  |  | 84,391 |  |  | 1,815,880 |
Non-cash adjustments to NOI(3) |  |  | (16,127) | (2) |  | (78,738) | (2) |  | (10,128) |  |  | (5,025) |  |  | 1,060 |  |  | (108,958) |
Adjusted (cash) NOI |  |  | 653,811 |  |  | 454,371 |  |  | 262,639 |  |  | 250,650 |  |  | 85,451 |  |  | 1,706,922 |
Interest income |  |  | 28,718 |  |  | 83,466 |  |  | — |  |  | — |  |  | — |  |  | 112,184 |
Portfolio Income |  | $ | 682,529 |  | $ | 537,837 |  | $ | 262,639 |  | $ | 250,650 |  | $ | 85,451 |  |  | 1,819,106 |
Addback non-cash adjustments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 108,958 |
Investment management fee income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,873 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (479,596) |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (510,785) |
General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (96,022) |
Acquisition and pursuit costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (27,309) |
Impairments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,403,853) |
Gain on sales of real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,377 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 14,404 |
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9,011 |
Equity income in unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 57,313 |
Impairment of investments in unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (45,895) |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (546,418) |
For the year ended December 31, 2014:
|  | Senior |  | Post-acute/ |  | Life |  | Medical |  |  |  |  |  |
Segments |  | Housing |  | Skilled Nursing |  | Science |  | Office |  | Hospital |  | Total |
Rental revenues(1) |  | $ | 621,114 |  | $ | 555,322 |  | $ | 314,114 |  | $ | 370,956 |  | $ | 86,508 |  | $ | 1,948,014 |
Resident fees and services |  |  | 241,965 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 241,965 |
Operating expenses |  |  | (167,407) |  |  | (2,087) |  |  | (63,080) |  |  | (148,199) |  |  | (3,830) |  |  | (384,603) |
NOI |  |  | 695,672 |  |  | 553,235 |  |  | 251,034 |  |  | 222,757 |  |  | 82,678 |  |  | 1,805,376 |
Non-cash adjustments to NOI(3) |  |  | (78,197) |  |  | (69,141) |  |  | (10,075) |  |  | (1,406) |  |  | 443 |  |  | (158,376) |
Adjusted (cash) NOI |  |  | 617,475 |  |  | 484,094 |  |  | 240,959 |  |  | 221,351 |  |  | 83,121 |  |  | 1,647,000 |
Interest income |  |  | 14,249 |  |  | 60,242 |  |  | — |  |  | — |  |  | — |  |  | 74,491 |
Portfolio Income |  | $ | 631,724 |  | $ | 544,336 |  | $ | 240,959 |  | $ | 221,351 |  | $ | 83,121 |  |  | 1,721,491 |
Addback non-cash adjustments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 158,376 |
Investment management fee income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,809 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (439,742) |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (459,995) |
General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (82,175) |
Acquisition and pursuit costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (17,142) |
Gain on sales of real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,288 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,528 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (250) |
Equity income in unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 49,570 |
Impairment of investments in unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (35,913) |
Total discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 29,746 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 936,591 |
For the year ended December 31, 2013:
|  | Senior |  | Post-acute/ |  | Life |  | Medical |  |  |  |  |  |
Segments |  | Housing |  | Skilled Nursing |  | Science |  | Office |  | Hospital |  | Total |
Rental revenues(1) |  | $ | 602,506 |  | $ | 541,805 |  | $ | 296,879 |  | $ | 352,334 |  | $ | 72,060 |  | $ | 1,865,584 |
Resident fees and services |  |  | 146,288 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 146,288 |
Operating expenses |  |  | (95,603) |  |  | (2,485) |  |  | (56,956) |  |  | (139,376) |  |  | (3,862) |  |  | (298,282) |
NOI |  |  | 653,191 |  |  | 539,320 |  |  | 239,923 |  |  | 212,958 |  |  | 68,198 |  |  | 1,713,590 |
Non-cash adjustments to NOI(3) |  |  | (58,699) |  |  | (71,812) |  |  | (11,448) |  |  | (2,147) |  |  | 11,554 |  |  | (132,552) |
Adjusted (cash) NOI |  |  | 594,492 |  |  | 467,508 |  |  | 228,475 |  |  | 210,811 |  |  | 79,752 |  |  | 1,581,038 |
Interest income |  |  | 11,621 |  |  | 73,595 |  |  | — |  |  | — |  |  | 943 |  |  | 86,159 |
Portfolio Income |  | $ | 606,113 |  | $ | 541,103 |  | $ | 228,475 |  | $ | 210,811 |  | $ | 80,695 |  |  | 1,667,197 |
Addback non-cash adjustments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 132,552 |
Investment management fee income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,847 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (435,252) |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (423,312) |
General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (103,042) |
Acquisition and pursuit costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,191) |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18,216 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,815) |
Equity income in unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 64,433 |
Total discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 74,373 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 985,006 |
| (1) |  | Represents rental and related revenues, tenant recoveries, and income from DFLs.
| (2) |  | See Note 6 for discussion of the Company’s HCRMC DFL investments
| (3) |  | Represents straight-line rents, DFL accretion, amortization of market lease intangibles and lease termination fees.
The Company’s total assets by segment were (in thousands):
|  | December 31, |
Segments |  | 2015 |  | 2014 |
Senior housing |  | $ | 9,812,142 |  | $ | 8,383,345 |
Post-acute/skilled nursing |  |  | 5,162,947 |  |  | 6,875,122 |
Life science |  |  | 4,267,373 |  |  | 4,154,789 |
Medical office |  |  | 3,469,048 |  |  | 2,988,888 |
Hospital |  |  | 622,820 |  |  | 640,253 |
Gross segment assets |  |  | 23,334,330 |  |  | 23,042,397 |
Accumulated depreciation and amortization |  |  | (3,005,270) |  |  | (2,600,072) |
Net segment assets |  |  | 20,329,060 |  |  | 20,442,325 |
Other nonsegment assets |  |  | 1,120,789 |  |  | 889,111 |
Total assets |  | $ | 21,449,849 |  | $ | 21,331,436 |
At both December 31, 2015 and 2014, goodwill of $50 million was allocated to segment assets as follows: (i) senior housing—$31 million, (ii) post-acute/skilled nursing—$3 million, (iii) medical office—$11 million, and (iv) hospital—$5 million. The Company completed the required annual impairment test du ring the fourth quarter of 2015 and no impairment was recognized based on the results of the Company’s procedures.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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