XML 30 R15.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Investments in and Advances to Unconsolidated Joint Ventures | 9 Months Ended
--- | ---
Sep. 30, 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 September 30, 2016 (dollars in thousands):
Entity(1) |  | Segment |  | Carrying Amount |  | Ownership% |
CCRC JV(2) |  | SHOP |  | $ | 450,188 |  |  | 49 |  |
HCRMC |  | QCP |  |  | — |  |  | 9 |  |
MBK JV(3) |  | SHOP |  |  | 39,876 |  |  | 50 |  |
HCP Ventures III, LLC |  | Medical office |  |  | 9,492 |  |  | 30 |  |
HCP Ventures IV, LLC |  | Medical office |  |  | 7,220 |  |  | 20 |  |
HCP Life Science(4) |  | Life science |  |  | 68,251 |  | 50 | – | 63 |
Vintage Park Development JV |  | SHOP |  |  | 8,088 |  |  | 85 |  |
MBK Development JV(3) |  | SHOP |  |  | 2,464 |  |  | 50 |  |
Suburban Properties, LLC |  | Medical office |  |  | 4,667 |  |  | 67 |  |
K&Y(5) |  | Other |  |  | 1,324 |  |  | 80 |  |
Advances to unconsolidated JVs, net and other |  |  |  |  | 527 |  |  |  |  |
|  |  |  | $ | 592,097 |  |  |  |  |
| (1) |  | These entities are not consolidated because the Company does not control, through voting rights or other means, the JVs.
| (2) |  | Includes two unconsolidated JVs in a RIDEA structure (CCRC PropCo and CCRC OpCo).
| (3) |  | Includes two unconsolidated JVs in a RIDEA structure.
| (4) |  | Includes the following unconsolidated 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%).
| (5) |  | Includes three unconsolidated JVs.
The following tables summarize combined financial information for the Company’s equity method investments (in thousands):
|  | September 30, |  | December 31, |
|  | 2016 |  | 2015 |
Real estate, net |  | $ | 4,434,643 |  | $ | 4,470,249 |
Goodwill and other assets, net |  |  | 4,945,250 |  |  | 4,935,343 |
Assets held for sale |  |  | 67,817 |  |  | 94,866 |
Total assets |  | $ | 9,447,710 |  | $ | 9,500,458 |
Capital lease obligations and mortgage debt |  | $ | 6,419,016 |  | $ | 6,575,531 |
Accounts payable |  |  | 1,314,659 |  |  | 1,111,350 |
Liabilities and mortgage debt held for sale |  |  | 1,593 |  |  | 6,318 |
Other partners’ capital |  |  | 1,078,758 |  |  | 1,163,501 |
HCP’s capital(1) |  |  | 633,684 |  |  | 643,758 |
Total liabilities and partners’ capital |  | $ | 9,447,710 |  | $ | 9,500,458 |
| (1) |  | The combined basis difference of the Company’s investments in these JVs of $42 million, as of September 30, 2016, is 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, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Total revenues |  | $ | 1,057,213 |  | $ | 1,106,667 |  | $ | 3,210,868 |  | $ | 3,375,747 |
Income (loss) from discontinued operations |  |  | 904 |  |  | (1,794) |  |  | 3,476 |  |  | (15,696) |
Net loss |  |  | (43,248) |  |  | (65,819) |  |  | (81,214) |  |  | (77,529) |
HCP’s share of earnings(1) |  |  | (2,053) |  |  | 8,314 |  |  | (4,028) |  |  | 33,916 |
Fees earned by HCP |  |  | 76 |  |  | 454 |  |  | 248 |  |  | 1,372 |
Distributions received by HCP |  |  | 10,754 |  |  | 16,186 |  |  | 20,377 |  |  | 20,673 |
| (1) |  | The Company’s JV 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 $14 million and $44 million of DFL income that was recharacterized to the Company’s share of earnings from HCRMC (equity income from unconsolidated JVs) for the three and nine months ended September 30, 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 JVs.
HCRMC. The Company concluded that its equity investment in HCRMC was other-than-temporarily impaired as of December 2014, September 2015 and December 2015 and recorded impairment charges of $36 million, $27 million and $19 million, respectively. Beginning in January 2016, equity income is recognized only if cash distributions are received from HCRMC (see Note 5). In determining the fair value of the Company’s equity investment in HCRMC, the fair value was based on a discounted cash flow valuation model and inputs were considered to be Level 3 measurements within the fair value hierarchy. Inputs to this valuation model include earnings multiples, discount rate and industry growth rates of revenue, operating expenses and facility occupancy, some of which influence the Company’s expectation of future cash flows from its investment in HCRMC and, accordingly, the fair value of its investment. MBK JVs. On March 30, 2015, the Company and MBK Senior Living (“MBK”), a subsidiary of Mitsui & Co. Ltd., formed a new RIDEA JV (“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 JV and receives cash payments. 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 JV (“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.

X
- References No definition available. + 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 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
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration