XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Net Investment in Direct Financing Leases | 6 Months Ended
--- | ---
Jun. 30, 2017
Leases, Capital [Abstract] |
Net Investment in Direct Financing Leases | Net Investment in Direct Financing Leases Net investment in DFLs consisted of the following (dollars in thousands):
| June 30, 2017 |  | December 31, 2016
Minimum lease payments receivable | $ | 1,081,187 |  |  | $ | 1,108,237 |
Estimated residual value | 500,368 |  |  | 539,656 |
Less unearned income | (869,778 | ) |  | (895,304 | )
Net investment in direct financing leases | $ | 711,777 |  |  | $ | 752,589 |
Properties subject to direct financing leases | 29 |  |  | 30 |
Certain DFLs contain provisions that allow the tenants to elect to purchase the properties during or at the end of the lease terms for the aggregate initial investment amount plus adjustments, if any, as defined in the lease agreements. Certain leases also permit the Company to require the tenants to purchase the properties at the end of the lease terms. In February 2017, the Company sold a hospital within a DFL in Palm Beach Gardens, Florida for $43 million to the current tenant. Direct Financing Lease Internal Ratings The following table summarizes the Company’s internal ratings for DFLs at June 30, 2017 (dollars in thousands):
|  | Carrying Amount |  | Percentage of DFL Portfolio |  | Internal Ratings
Segment |  |  |  | Performing DFLs |  | Watch List DFLs |  | Workout DFLs
Senior housing triple-net |  | $ | 627,173 |  |  | 88% |  | $ | 268,815 |  | 359,586,000 |  | $ | 358,358 |  |  | $ | — |
Other non-reportable segments |  | 84,604 |  |  | 12 |  | 84,604 |  | — |  | — |  |  | — |
|  | $ | 711,777 |  |  | 100% |  | $ | 353,419 |  |  | $ | 358,358 |  |  | $ | — |
Beginning September 30, 2013, the Company placed a 14 property senior housing triple-net DFL (the “DFL Watchlist Portfolio”) on nonaccrual status and “Watch List” status. The Company determined that the collection of all rental payments was and continues to be no longer reasonably assured; therefore, rental revenue for the DFL Watchlist Portfolio has been recognized on a cash basis. During both the three months ended June 30, 2017 and 2016, the Company recognized DFL income of $4 million and received cash payments of $5 million from the DFL Watchlist Portfolio. During the six months ended June 30, 2017 and 2016, the Company recognized DFL income of $7 million and $8 million, respectively, and received cash payments of $9 million and $10 million, respectively, from the DFL Watchlist Portfolio. The carrying value of the DFL Watchlist Portfolio was $358 million and $361 million at June 30, 2017 and December 31, 2016, respectively.

X
- Definition The entire disclosure for lessor's leasing arrangements, which includes direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25496975&loc=d3e45377-112738 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6452767&loc=d3e37045-112695 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 47 -URI http://asc.fasb.org/extlink&oid=6584217&loc=d3e38847-112698 + Details
Name: | us-gaap_CapitalLeasesInFinancialStatementsOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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