XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Segment Disclosures | 6 Months Ended
--- | ---
Jun. 30, 2016
Segment Disclosures |
Segment Disclosures | NOTE 13. Segment Disclosures The Company evaluates its business and makes resource allocations based on its five reportable 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 medical office buildings (“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 sectors. The accounting policies of the segments are the same as those described in Note 2 to the Consolidated Financial Statements herein and in the Company’s 2015 Annual Report on Form 10-K filed with the SEC. There were no intersegment sales or transfers during the six months ended June 30, 2016 and 2015. The Company evaluates performance based upon: (i) property net operating income from continuing operations (“NOI”), (ii) adjusted NOI (cash NOI), and (iii) adjusted NOI, including the Company’s pro rata share of unconsolidated joint ventures, 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 and, if any, real estate and related assets 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 17 for other information regarding concentrations of credit risk. The following tables summarize information for the reportable segments (in thousands): For the three months ended June 30, 2016:
|  |  | Senior |  | Post-acute/ |  | Life |  | Medical |  |  |  | Corporate |  |  |  |
|  |  | Housing |  | Skilled Nursing |  | Science |  | Office |  | Hospital |  | Non-segment |  | Total |  |
| Rental revenues(1) |  | $ | 131,495 |  | $ | 110,125 |  | $ | 90,201 |  | $ | 111,218 |  | $ | 22,067 |  | $ | — |  | $ | 465,106 |  |
| Resident fees and services |  |  | 164,202 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 164,202 |  |
| Operating expenses |  |  | (117,121) |  |  | (589) |  |  | (17,961) |  |  | (43,439) |  |  | (1,015) |  |  | — |  |  | (180,125) |  |
| NOI |  |  | 178,576 |  |  | 109,536 |  |  | 72,240 |  |  | 67,779 |  |  | 21,052 |  |  | — |  |  | 449,183 |  |
| Non-cash adjustments to NOI(2) |  |  | (2,502) |  |  | (173) |  |  | (545) |  |  | (759) |  |  | 582 |  |  | — |  |  | (3,397) |  |
| Adjusted (cash) NOI |  |  | 176,074 |  |  | 109,363 |  |  | 71,695 |  |  | 67,020 |  |  | 21,634 |  |  | — |  |  | 445,786 |  |
| Adjusted (cash) NOI from unconsolidated joint ventures |  |  | 15,310 |  |  | 400 |  |  | 1,499 |  |  | 361 |  |  | — |  |  | — |  |  | 17,570 |  |
| Interest income |  |  | 16,474 |  |  | 16,313 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32,787 |  |
| Portfolio Income |  |  | 207,858 |  |  | 126,076 |  |  | 73,194 |  |  | 67,381 |  |  | 21,634 |  |  | — |  |  | 496,143 |  |
| Addback non-cash adjustments |  |  | 2,502 |  |  | 173 |  |  | 545 |  |  | 759 |  |  | (582) |  |  | — |  |  | 3,397 |  |
| Investment management fee income |  |  | — |  |  | — |  |  | 1 |  |  | 80 |  |  | — |  |  | — |  |  | 81 |  |
| Interest expense |  |  | (11,885) |  |  | (2,475) |  |  | (632) |  |  | (1,626) |  |  | — |  |  | (104,715) |  |  | (121,333) |  |
| Depreciation and amortization |  |  | (61,257) |  |  | (3,255) |  |  | (32,077) |  |  | (40,986) |  |  | (3,811) |  |  | — |  |  | (141,386) |  |
| General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (22,793) |  |  | (22,793) |  |
| Acquisition and pursuit costs |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14,527) |  |  | (14,527) |  |
| Gain on sales of real estate, net |  |  | 23,940 |  |  | 57,909 |  |  | 29,455 |  |  | 8,310 |  |  | — |  |  | — |  |  | 119,614 |  |
| Other income, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,280 |  |  | 2,280 |  |
| Income tax benefit |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,003 |  |  | 2,003 |  |
| Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI |  |  | (17,790) |  |  | (182) |  |  | (724) |  |  | 59 |  |  | — |  |  | — |  |  | (18,637) |  |
| Net income (loss) |  | $ | 143,368 |  | $ | 178,246 |  | $ | 69,762 |  | $ | 33,977 |  | $ | 17,241 |  | $ | (137,752) |  | $ | 304,842 |  |
For the three months ended June 30, 2015:
|  |  | Senior |  | Post-acute/ |  | Life |  | Medical |  |  |  | Corporate |  |  |  |
|  |  | Housing |  | Skilled Nursing |  | Science |  | Office |  | Hospital |  | Non-segment |  | Total |  |
| Rental revenues(1) |  | $ | 123,910 |  | $ | 130,895 |  | $ | 85,409 |  | $ | 102,585 |  | $ | 21,492 |  | $ | — |  | $ | 464,291 |  |
| Resident fees and services |  |  | 106,838 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 106,838 |  |
| Operating expenses |  |  | (76,514) |  |  | (538) |  |  | (17,234) |  |  | (40,785) |  |  | (1,271) |  |  | — |  |  | (136,342) |  |
| NOI |  |  | 154,234 |  |  | 130,357 |  |  | 68,175 |  |  | 61,800 |  |  | 20,221 |  |  | — |  |  | 434,787 |  |
| Non-cash adjustments to NOI(2) |  |  | 1,238 |  |  | (19,077) |  |  | (2,745) |  |  | (1,170) |  |  | 226 |  |  | — |  |  | (21,528) |  |
| Adjusted (cash) NOI |  |  | 155,472 |  |  | 111,280 |  |  | 65,430 |  |  | 60,630 |  |  | 20,447 |  |  | — |  |  | 413,259 |  |
| Adjusted (cash) NOI from unconsolidated joint ventures |  |  | 14,814 |  |  | — |  |  | 1,298 |  |  | 306 |  |  | — |  |  | — |  |  | 16,418 |  |
| Interest income |  |  | 12,237 |  |  | 23,708 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 35,945 |  |
| Portfolio Income |  |  | 182,523 |  |  | 134,988 |  |  | 66,728 |  |  | 60,936 |  |  | 20,447 |  |  | — |  |  | 465,622 |  |
| Addback non-cash adjustments |  |  | (1,238) |  |  | 19,077 |  |  | 2,745 |  |  | 1,170 |  |  | (226) |  |  | — |  |  | 21,528 |  |
| Investment management fee income |  |  | — |  |  | — |  |  | 1 |  |  | 457 |  |  | — |  |  | — |  |  | 458 |  |
| Interest expense |  |  | (12,198) |  |  | (2,492) |  |  | (764) |  |  | (2,454) |  |  | — |  |  | (100,724) |  |  | (118,632) |  |
| Depreciation and amortization |  |  | (48,916) |  |  | (3,210) |  |  | (30,294) |  |  | (34,174) |  |  | (3,809) |  |  | — |  |  | (120,403) |  |
| General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (28,845) |  |  | (28,845) |  |
| Acquisition and pursuit costs |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (18,407) |  |  | (18,407) |  |
| Impairments |  |  | — |  |  | (41,887) |  |  | — |  |  | (2,948) |  |  | — |  |  |  |  |  | (44,835) |  |
| Gain on sales of real estate, net |  |  | 61 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 61 |  |
| Other income, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,055 |  |  | 11,055 |  |
| Income tax benefit |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,563 |  |  | 4,563 |  |
| Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI |  |  | (16,774) |  |  | 13,831 |  |  | (555) |  |  | (961) |  |  | 42 |  |  | — |  |  | (4,417) |  |
| Net income (loss) |  | $ | 103,458 |  | $ | 120,307 |  | $ | 37,861 |  | $ | 22,026 |  | $ | 16,454 |  | $ | (132,358) |  | $ | 167,748 |  |
For the six months ended June 30, 2016:
|  |  | Senior |  | Post-acute/ |  | Life |  | Medical |  |  |  | Corporate |  |  |  |
|  |  | Housing |  | Skilled nursing |  | Science |  | Office |  | Hospital |  | Non-segment |  | Total |  |
| Rental revenues(1) |  | $ | 260,392 |  | $ | 217,315 |  | $ | 179,149 |  | $ | 220,212 |  | $ | 44,937 |  | $ | — |  | $ | 922,005 |  |
| Resident fees and services |  |  | 329,965 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 329,965 |  |
| Operating expenses |  |  | (233,257) |  |  | (1,153) |  |  | (34,704) |  |  | (85,752) |  |  | (2,214) |  |  | — |  |  | (357,080) |  |
| NOI |  |  | 357,100 |  |  | 216,162 |  |  | 144,445 |  |  | 134,460 |  |  | 42,723 |  |  | — |  |  | 894,890 |  |
| Non-cash adjustments to NOI(2) |  |  | (8,458) |  |  | (444) |  |  | (1,218) |  |  | (1,564) |  |  | 885 |  |  | — |  |  | (10,799) |  |
| Adjusted (cash) NOI |  |  | 348,642 |  |  | 215,718 |  |  | 143,227 |  |  | 132,896 |  |  | 43,608 |  |  | — |  |  | 884,091 |  |
| Adjusted (cash) NOI from unconsolidated joint ventures |  |  | 30,208 |  |  | 804 |  |  | 2,919 |  |  | 683 |  |  | — |  |  | — |  |  | 34,614 |  |
| Interest income |  |  | 18,359 |  |  | 32,457 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 50,816 |  |
| Portfolio Income |  |  | 397,209 |  |  | 248,979 |  |  | 146,146 |  |  | 133,579 |  |  | 43,608 |  |  | — |  |  | 969,521 |  |
| Addback non-cash adjustments |  |  | 8,458 |  |  | 444 |  |  | 1,218 |  |  | 1,564 |  |  | (885) |  |  | — |  |  | 10,799 |  |
| Investment management fee income |  |  | — |  |  | — |  |  | 2 |  |  | 170 |  |  | — |  |  | — |  |  | 172 |  |
| Interest expense |  |  | (23,904) |  |  | (4,805) |  |  | (1,270) |  |  | (3,291) |  |  | — |  |  | (210,125) |  |  | (243,395) |  |
| Depreciation and amortization |  |  | (123,124) |  |  | (6,205) |  |  | (65,674) |  |  | (80,083) |  |  | (7,622) |  |  | — |  |  | (282,708) |  |
| General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (48,292) |  |  | (48,292) |  |
| Acquisition and pursuit costs |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (17,002) |  |  | (17,002) |  |
| Gain on sales of real estate, net |  |  | 23,940 |  |  | 57,909 |  |  | 29,455 |  |  | 8,310 |  |  | — |  |  | — |  |  | 119,614 |  |
| Other income, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,502 |  |  | 3,502 |  |
| Income tax expense |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (51,035) |  |  | (51,035) |  |
| Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI |  |  | (35,180) |  |  | (368) |  |  | (1,435) |  |  | 95 |  |  | 299 |  |  | — |  |  | (36,589) |  |
| Net income (loss) |  | $ | 247,399 |  | $ | 295,954 |  | $ | 108,442 |  | $ | 60,344 |  | $ | 35,400 |  | $ | (322,952) |  | $ | 424,587 |  |
For the six months ended June 30, 2015:
|  |  | Senior |  | Post-acute/ |  | Life |  | Medical |  |  |  | Corporate |  |  |  |
|  |  | Housing |  | Skilled nursing |  | Science |  | Office |  | Hospital |  | Non-segment |  | Total |  |
| Rental revenues(1) |  | $ | 251,292 |  | $ | 271,471 |  | $ | 168,960 |  | $ | 200,890 |  | $ | 43,734 |  | $ | — |  | $ | 936,347 |  |
| Resident fees and services |  |  | 211,851 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 211,851 |  |
| Operating expenses |  |  | (152,024) |  |  | (1,071) |  |  | (33,933) |  |  | (79,037) |  |  | (2,308) |  |  | — |  |  | (268,373) |  |
| NOI |  |  | 311,119 |  |  | 270,400 |  |  | 135,027 |  |  | 121,853 |  |  | 41,426 |  |  | — |  |  | 879,825 |  |
| Non-cash adjustments to NOI(2) |  |  | (5,175) |  |  | (37,160) |  |  | (5,820) |  |  | (3,036) |  |  | 478 |  |  | — |  |  | (50,713) |  |
| Adjusted (cash) NOI |  |  | 305,944 |  |  | 233,240 |  |  | 129,207 |  |  | 118,817 |  |  | 41,904 |  |  | — |  |  | 829,112 |  |
| Adjusted (cash) NOI from unconsolidated joint ventures |  |  | 28,826 |  |  | — |  |  | 2,526 |  |  | 610 |  |  | — |  |  | — |  |  | 31,962 |  |
| Interest income |  |  | 19,631 |  |  | 49,576 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 69,207 |  |
| Portfolio Income |  |  | 354,401 |  |  | 282,816 |  |  | 131,733 |  |  | 119,427 |  |  | 41,904 |  |  | — |  |  | 930,281 |  |
| Addback non-cash adjustments |  |  | 5,175 |  |  | 37,160 |  |  | 5,820 |  |  | 3,036 |  |  | (478) |  |  | — |  |  | 50,713 |  |
| Investment management fee income |  |  | — |  |  | — |  |  | 2 |  |  | 916 |  |  | — |  |  | — |  |  | 918 |  |
| Interest expense |  |  | (24,288) |  |  | (4,768) |  |  | (1,528) |  |  | (4,918) |  |  | — |  |  | (199,910) |  |  | (235,412) |  |
| Depreciation and amortization |  |  | (95,942) |  |  | (4,469) |  |  | (60,490) |  |  | (66,356) |  |  | (7,668) |  |  | — |  |  | (234,925) |  |
| General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (53,618) |  |  | (53,618) |  |
| Acquisition and pursuit costs |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21,797) |  |  | (21,797) |  |
| Impairments |  |  | 61,466 |  |  | (581,817) |  |  | — |  |  | (2,948) |  |  | — |  |  | — |  |  | (523,299) |  |
| Gain on sales of real estate, net |  |  | 6,325 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,325 |  |
| Other income, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,779 |  |  | 12,779 |  |
| Income tax benefit |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,640 |  |  | 4,640 |  |
| Equity (loss) income in unconsolidated joint ventures, excluding adjusted (cash) NOI |  |  | (31,452) |  |  | 27,986 |  |  | (1,109) |  |  | (1,867) |  |  | 82 |  |  | — |  |  | (6,360) |  |
| Net income (loss) |  | $ | 275,685 |  | $ | (243,092) |  | $ | 74,428 |  | $ | 47,290 |  | $ | 33,840 |  | $ | (257,906) |  | $ | (69,755) |  |
| (1) |  | Represents rental and related revenues, tenant recoveries and income from DFLs.
| (2) |  | Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles and lease termination fees.
T he following table summarizes the Company’s assets by segment (in thousands):
|  | June 30, |  | December 31, |
Segment |  | 2016 |  | 2015 |
Senior housing |  | $ | 9,854,208 |  | $ | 9,812,142 |
Post-acute/skilled nursing |  |  | 5,018,072 |  |  | 5,162,947 |
Life science |  |  | 3,952,550 |  |  | 3,905,137 |
Medical office |  |  | 3,489,833 |  |  | 3,469,048 |
Hospital |  |  | 622,820 |  |  | 622,820 |
Gross segment assets |  |  | 22,937,483 |  |  | 22,972,094 |
Accumulated depreciation and amortization |  |  | (3,157,266) |  |  | (2,941,568) |
Net segment assets |  |  | 19,780,217 |  |  | 20,030,526 |
Real estate and related assets held for sale, net |  |  | 330,453 |  |  | 314,126 |
Other non-segment assets |  |  | 1,005,787 |  |  | 1,105,197 |
Total assets |  | $ | 21,116,457 |  | $ | 21,449,849 |
At both June 30, 2016 and December 31, 2015, 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.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration