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Concentration of Credit Risk | 12 Months Ended
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Dec. 31, 2011
Concentration of Credit Risk |
Concentration of Credit Risk |
Note 9. Concentration of Credit Risk The assets included in these financial statements are primarily income producing senior housing and healthcare related real estate located throughout the United States. The following is a summary of the assets leased and rents earned from our significant lessee as of and for the years ended December 31, 2011 and 2010:
|  | At December 31, 2011 |  | At December 31, 2010 |
--- | --- | --- | --- | --- | ---
|  | Investment(1) |  | % of Total |  | Investment(1) |  | % of Total |
Five Star |  | $ | 2,150,722 |  |  | 46% |  | $ | 2,032,155 |  |  | 54% |
All others |  |  | 2,570,869 |  |  | 54% |  |  | 1,729,557 |  |  | 46% |
|  | $ | 4,721,591 |  |  | 100% |  | $ | 3,761,712 |  |  | 100% |
|  | Year Ended December 31, 2011 |  | Year Ended December 31, 2010 |
--- | --- | --- | --- | --- | ---
|  | Rental income |  | % of Total |  | Rental income |  | % of Total |
Five Star |  | $ | 195,409 |  |  | 46% |  | $ | 189,682 |  |  | 56% |
All others |  |  | 226,757 |  |  | 54% |  |  | 150,431 |  |  | 44% |
|  | $ | 422,166 |  |  | 100% |  | $ | 340,113 |  |  | 100% |
(1) Represents real and personal property leased to our tenants at historical cost after impairment losses and before depreciation. As discussed above, Five Star is our former subsidiary and both we and Five Star have management contracts with RMR. Five Star is the lessee of 46% of our investments, at cost, as of December 31, 2011. Five Star is included in our short and long term residential care communities segment. Five Star also manages a portfolio of 22 senior living communities for our account. The foregoing table does not include the revenues we realize from these Managed Communities as a Five Star obligation because Five Star is not obligated to pay the rent for the Managed Communities. The following tables present summary financial information for Five Star for the years ended December 31, 2011, 2010 and 2009, as reported in its Annual Report on Form 10-K. Summary Financial Information of Five Star Quality Care, Inc.
|  | For the Year Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |  | 2009 |
Operations |  |  |  |  |  |  |  |  |  |
Total revenues |  | $ | 1,281,764 |  | $ | 1,213,261 |  | $ | 1,142,740 |
Operating income |  |  | 21,348 |  |  | 26,124 |  |  | 10,532 |
Income from continuing operations |  |  | 68,277 |  |  | 25,562 |  |  | 40,420 |
Net income |  |  | 64,201 |  |  | 23,492 |  |  | 38,330 |
|  | For the Year Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |  | 2009 |
Cash Flows |  |  |  |  |  |  |  |  |  |
Cash provided by operating activities |  | $ | 44,414 |  | $ | 109,779 |  | $ | 28,836 |
Net cash used in discontinued operations |  |  | (156 | ) |  | (1,823 | ) |  | (1,393 | )
Cash used in investing activities |  |  | (127,302 | ) |  | (37,665 | ) |  | (24,709 | )
Cash provided by (used in) financing activities |  |  | 90,648 |  |  | (54,538 | ) |  | (13,855 | )
Change in cash and cash equivalents |  |  | 7,604 |  |  | 15,753 |  |  | (11,121 | )
Cash and cash equivalents at the beginning of the period |  |  | 20,770 |  |  | 5,017 |  |  | 16,138 |
Cash and cash equivalents at the end of the period |  |  | 28,374 |  |  | 20,770 |  |  | 5,017 |
|  | As of December 31, |  |  |
--- | --- | --- | --- | --- | ---
|  | 2011 |  | 2010 |  |  |
Financial Position |  |  |  |  |  |  |  |  |  |
Current assets |  | $ | 141,516 |  | $ | 135,965 |  |  |  |
Non-current assets |  |  | 441,961 |  |  | 243,829 |  |  |  |
Total indebtedness |  |  | 122,713 |  |  | 45,729 |  |  |  |
Current liabilities |  |  | 189,331 |  |  | 137,911 |  |  |  |
Non-current liabilities |  |  | 113,952 |  |  | 77,116 |  |  |  |
Total shareholders' equity |  |  | 280,194 |  |  | 164,767 |  |  |  |
The summary financial information of Five Star is presented to comply with applicable accounting regulations of the SEC. References in these financial statements to the Annual Report on Form 10-K for Five Star are included as textual references only, and the information in Five Star's Annual Report on Form 10-K is not incorporated by reference into these financial statements.

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-6 -Paragraph 21, 22, 24 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13531-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 18 -URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592 + Details
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