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Investments in and Advances to Unconsolidated Joint Ventures | 3 Months Ended
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Mar. 31, 2016
Investments in and Advances to Unconsolidated Joint Ventures |
Investments in and Advances to Unconsolidated Joint Ventures | NOTE 7. Investments in and Advances to Unconsolidated Joint Ventures The Company owns interests in the following entities that are accounted for under the equity method at March 31, 2016 (dollars in thousands):
Entity(1) |  | Segment |  | Carrying Amount |  | Ownership% |
CCRC JV(2) |  | Senior housing |  | $ | 462,545 |  |  | 49 |  |
HCRMC(3) |  | Senior housing and post-acute/skilled nursing |  |  | — |  |  | 9 |  |
MBK JV(4) |  | Senior housing |  |  | 43,384 |  |  | 50 |  |
HCP Ventures III, LLC |  | Medical office |  |  | 9,342 |  |  | 30 |  |
HCP Ventures IV, LLC |  | Medical office and hospital |  |  | 7,236 |  |  | 20 |  |
HCP Life Science(5) |  | Life science |  |  | 68,688 |  | 50 | – | 63 |
Vintage Park Development JV |  | Senior housing |  |  | 8,593 |  |  | 85 |  |
MBK Development JV(4) |  | Senior housing |  |  | 2,470 |  |  | 50 |  |
Suburban Properties, LLC |  | Medical office |  |  | 4,614 |  |  | 67 |  |
K&Y(6) |  | Post-acute/skilled nursing |  |  | 1,270 |  |  | 8 0 |  |
Advances to unconsolidated joint ventures, net and other |  |  |  |  | 523 |  |  |  |  |
|  |  |  | $ | 608,665 |  |  |  |  |
| (1) |  | These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.
| (2) |  | Includes two unconsolidated joint ventures in a RIDEA structure (CCRC PropCo and CCRC OpCo).
| (3) |  | In December 2014, September 2015 and December 2015, the Company recognized impairment charges of $36 million, $27 million and $19 million, respectively.
| (4) |  | Includes two unconsolidated joint ventures in a RIDEA structure (PropCo and OpCo).
| (5) |  | Includes three unconsolidated joint ventures between the Company and an institutional capital partner. 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%).
| (6) |  | Includes three unconsolidated joint ventures.
Summarized combined financial information for the Company’s equity method investments (in thousands):
|  | March 31, |  | December 31, |
|  | 2016 |  | 2015 |
Real estate, net |  | $ | 4,471,115 |  | $ | 4,470,249 |
Goodwill and other assets, net |  |  | 4,921,705 |  |  | 4,935,343 |
Assets held for sale |  |  | 70,584 |  |  | 94,866 |
Total assets |  | $ | 9,463,404 |  | $ | 9,500,458 |
Capital lease obligations and mortgage debt |  | $ | 6,526,878 |  | $ | 6,575,531 |
Accounts payable |  |  | 1,147,155 |  |  | 1,111,350 |
Liabilities and mortgage debt held for sale |  |  | 4,941 |  |  | 6,318 |
Other partners’ capital |  |  | 1,140,381 |  |  | 1,163,501 |
HCP’s capital(1) |  |  | 644,049 |  |  | 643,758 |
Total liabilities and partners’ capital |  | $ | 9,463,404 |  | $ | 9,500,458 |
| (1) |  | The combined basis difference of the Company’s investments in these joint ventures of $35 million, as of March 31, 2016, is attributable to goodwill, real estate, capital lease obligations, deferred tax assets and lease-related net intangibles.
|  | Three Months Ended March 31, |
|  | 2016 |  | 2015 |
Total revenues |  | $ | 1,089,911 |  | $ | 1,146,468 |
Income (loss) from discontinued operations |  |  | 1,997 |  |  | (2,650) |
Net (loss) income |  |  | (12,014) |  |  | 9,783 |
HCP’s share of earnings(1) |  |  | (908) |  |  | 13,601 |
Fees earned by HCP |  |  | 91 |  |  | 460 |
Distributions received by HCP |  |  | 6,925 |  |  | 2,181 |
| (1) |  | The Company’s joint venture interest in HCRMC is accounted for using the equity method and results in an elimination of DFL income proportional to HCP’s ownership in HCRMC. The elimination of the respective proportional lease expense at the HCRMC level in substance resulted in $16 million of DFL income that was recharacterized to the Company’s share of earnings from HCRMC (equity income from unconsolidated joint ventures) for the three months ended March 31, 2015. Beginning in January 2016, income will be recognized only if cash distributions are received from HCRMC; as a result, the Company no longer recharacterizes (eliminates) its proportional ownership share of income from DFLs to equity income (loss) from unconsolidated joint ventures.
HCRMC. The Company concluded that its equity investment in HCRMC was other-than-temporarily impaired as of December 31, 2014, September 30, 2015 and December 31, 2015 and recorded impairment charges of $36 million, $27 million and $19 million, respectively. Beginning in January 2016, equity income will be recognized only if cash distributions are received from HCRMC (see Note 5). MBK JVs. On March 30, 2015, the Company and MBK Senior Living (“MBK”), a subsidiary of Mitsui & Co. Ltd, formed a new RIDEA joint venture (“MBK JV”) that owns three senior housing facilities with the Company and MBK each owning a 50% equity interest. MBK manages these communities on behalf of the joint venture. The Company contributed $27 million of cash and MBK contributed the three senior housing facilities with a fair value of $126 million, which were encumbered by $78 million of mortgage debt at closing. On September 25, 2015, the Company and MBK formed a new RIDEA joint venture (“MBK Development JV”), which acquired a $3 million parcel of land for the purpose of developing a 74-unit class A senior housing facility in Santa Rosa, California. The parcel of land is located adjacent to the Oakmont Gardens independent living facility currently owned and operated by the MBK JV.

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- 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 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: 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=49116238&loc=d3e32847-111569 Reference 3: 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 4: 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=49116238&loc=d3e32787-111569 + Details
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