Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value of Assets and Liabilities

Assets and liabilities recurring and nonrecurring measured at fair value

			Quoted Prices in		Significant		Significant
			Active Markets for		Other		Unobservable
			Identical Assets		Observable Inputs		Inputs

Description	Total		(Level 1)		(Level 2)		(Level 3)

Assets held for sale(1)	$	374	$	—	$	—	$	374
Investments in available for sale securities(2)	$	13,086	$	13,086	$	—	$	—
Additional purchase consideration(3)	$	1,000	$	—	$	—	$	1,000

⁽¹⁾

Assets held for sale consist of one of our properties (one building) that we expect to sell that is reported at fair value less estimated costs to sell. We used offers to purchase this property made by third parties or comparable sales transactions (Level 3 inputs) to determine the fair values of this property. We have recorded cumulative impairments of approximately $2,283 to this property in order to reduce its book value to fair value. We also have one additional property (one building) held for sale as of September 30, 2015. This asset is recorded at its carrying value of $4,703, which is lower than what we believe its fair value less estimated costs to sell to be at September 30, 2015.

⁽²⁾

Our investments in available for sale securities include our 4,235,000 common shares of Five Star. The fair values of these shares are based upon quoted prices at September 30, 2015 in active markets (Level 1 inputs).

⁽³⁾

In May 2015, we acquired one senior living community located in Georgia for approximately $9,750, excluding closing costs. Pursuant to the purchase agreement, $1,000 of the purchase price has been withheld until the seller satisfies certain conditions. We anticipate these conditions will be satisfied and therefore have recorded the withheld $1,000 as a liability as of September 30, 2015. We estimate the fair value of this liability at September 30, 2015 to be $1,000, which is the amount we have agreed to pay in cash when the applicable conditions are satisfied (Level 3 inputs). This liability is included in other liabilities in our condensed consolidated balance sheets as described in Note 3.