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Discontinued Operations and Dispositions of Real Estate | 9 Months Ended
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Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations and Dispositions of Real Estate | Discontinued Operations and Dispositions of Real Estate Discontinued Operations - Quality Care Properties, Inc. On October 31, 2016, the Company completed the spin-off (the “Spin-Off”) of its subsidiary, Quality Care Properties, Inc. (“QCP”). The Spin-Off included 338 properties, primarily comprised of the HCR ManorCare, Inc. (“HCRMC”) direct financing lease (“DFL”) investments and an equity investment in HCRMC. QCP is an independent, publicly-traded, self-managed and self-administrated REIT. In connection with the Spin-Off, the Company entered into a Transition Services Agreement (“TSA”) with QCP. Per the terms of the TSA, the Company agreed to provide certain administrative and support services to QCP on a transitional basis for established fees. The TSA terminated on October 31, 2017. Summarized financial information for discontinued operations for the three and nine months ended September 30, 2016 is as follows (in thousands):
| Three Months Ended September 30, 2016 |  | Nine Months Ended September 30, 2016
Revenues: |  |  |
Rental and related revenues | $ | 6,898 |  |  | $ | 20,620 |
Tenant recoveries | 386 |  |  | 1,147 |
Income from direct financing leases | 116,429 |  |  | 345,940 |
Total revenues | 123,713 |  |  | 367,707 |
Costs and expenses: |  |  |
Depreciation and amortization | (1,467 | ) |  | (4,401 | )
Operating | (1,033 | ) |  | (3,076 | )
General and administrative | (6 | ) |  | (68 | )
Acquisition and pursuit costs | (14,805 | ) |  | (28,509 | )
Other income (expense), net | 22 |  |  | 64 |
Income (loss) before income taxes | 106,424 |  |  | 331,717 |
Income tax benefit (expense) | 1,789 |  |  | (47,721 | )
Total discontinued operations | $ | 108,213 |  |  | $ | 283,996 |
HCR ManorCare, Inc. Discontinued operations is primarily comprised of QCP’s HCRMC DFL investments. During the nine months ended September 30, 2016, the Company received cash payments of $346 million from the HCRMC DFL investments. No accretion related to its HCRMC DFL investments was recognized in 2016 due to the Company utilizing a cash basis method of accounting beginning January 1, 2016. The Company’s acquisition of the HCRMC DFL investments in 2011 was subject to federal and state built-in gain tax of up to $2 billion if all the assets were sold within 10 years of the acquisition date. At the time of acquisition, the Company intended to hold the assets for at least 10 years, at which time the assets would no longer be subject to the built-in gain tax. In December 2015, the U.S. Federal Government passed legislation which permanently reduced the holding period, for federal tax purposes, to 5 years, which the Company satisfied in April 2016. This legislation was not extended to certain states, which maintain a 10 year requirement. During the three months ended March 31, 2016, the Company determined that it may sell assets during the next five years and, therefore, recorded a deferred tax liability of $49 million representing its estimated exposure to state built-in gain tax. Dispositions of Real Estate Held for Sale At September 30, 2017, three senior housing triple-net facilities and four life science facilities were classified as held for sale, with an aggregate carrying value of $216 million, primarily comprised of real estate assets of $199 million. At December 31, 2016, 64 senior housing triple-net facilities, four life science facilities and a SHOP facility were classified as held for sale, with an aggregate carrying value of $928 million, primarily comprised of real estate assets of $809 million. All facilities held for sale at December 31, 2016 were sold during the first quarter of 2017. 2017 Dispositions In January 2017, the Company sold four life science facilities in Salt Lake City, Utah for $76 million, resulting in a net gain on sale of $45 million. In March 2017, the Company sold 64 senior housing triple-net assets, previously under triple-net leases with Brookdale, for $1.125 billion to affiliates of Blackstone Real Estate Partners VIII, L.P., resulting in a net gain on sale of $170 million. In April 2017, the Company sold a land parcel in San Diego, California for $27 million and one life science building in San Diego, California for $5 million and recognized a total net gain on sales of $1 million. In August 2017, the Company sold two senior housing triple-net facilities for $15 million and recognized a gain on sale of $5 million. 2016 Dispositions During the nine months ended September 30, 2016, the Company sold five post-acute/skilled nursing facilities and two senior housing triple-net facilities for $130 million, a life science facility for $74 million, three medical office buildings for $20 million and a SHOP facility for $6 million and recognized total gain on sales of $120 million.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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