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DISCONTINUED OPERATIONS | 8 Months Ended
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Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS We report in discontinued operations the results of operations and the related gains or losses on the sales of properties that have either been disposed of or classified as held for sale and meet the classification of a discontinued operation as described in ASC 205 - Presentation of Financial Statements and ASC 360 - Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this standard, a disposal (or classification as held for sale) of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. We determined that our strategic decision to exit our healthcare segment met the criteria for discontinued operations, and we consequently classified 27 property dispositions as discontinued operations during the fiscal year ended April 30, 2018. We classified no dispositions as discontinued operations during the transition period ended December 31, 2018 and the fiscal year ended April 30, 2017. During the fiscal year ended April 30, 2016, we determined that our strategic plan to exit the office and retail segments met the criteria for discontinued operations. Accordingly, 48 office properties, 17 retail properties and 1 healthcare property were classified as discontinued operations and subsequently sold during the fiscal year ended April 30, 2016. In fiscal year 2016, we determined that our strategic decision to exit senior housing, which was a subset of our healthcare segment, met the criteria for discontinued operations and we classified 34 senior housing properties as held for sale and discontinued operations at April 30, 2016. Thirty-two of these senior housing properties were subsequently sold during the fiscal year ended April 30, 2017. The following information shows the effect on net income and the gains or losses from the sale of properties classified as discontinued operations for the transition period ended December 31, 2018 and the fiscal years ended April 30, 2018, 2017, and 2016.
|  | (in thousands)
|  | Period Ended | Year Ended
|  | December 31, 2018 |  | April 30, 2018 |  | April 30, 2017 |  | April 30, 2016 |
REVENUE |  |  |  |  |
Real estate rentals |  | $ | — |  | $ | 19,744 |  | $ | 43,984 |  | $ | 69,623 |
Tenant reimbursement |  | — |  | 11,650 |  | 16,110 |  | 23,434 |
TRS senior housing revenue |  | — |  | — |  | 3,218 |  | 3,955 |
TOTAL REVENUE |  | — |  | 31,394 |  | 63,312 |  | 97,012 |
EXPENSES |  |  |  |  |  |  |  |
Property operating expenses, excluding real estate taxes |  | — |  | 6,350 |  | 9,051 |  | 17,470 |
Real estate taxes |  | — |  | 5,191 |  | 6,848 |  | 11,611 |
Property management expense |  | — |  | 206 |  | 574 |  | 1,957 |
Depreciation and amortization |  | — |  | 8,445 |  | 10,772 |  | 24,725 |
Impairment of real estate investments |  | — |  | — |  | — |  | 440 |
TRS senior housing expenses |  | — |  | — |  | 3,113 |  | 3,366 |
TOTAL EXPENSES |  | — |  | 20,192 |  | 30,358 |  | 59,569 |
Operating income (loss) |  | — |  | 11,202 |  | 32,954 |  | 37,443 |
Interest expense(1) |  | — |  | (4,172 | ) | (11,628 | ) | (25,757 | )
Gain (loss) on extinguishment of debt(1) |  | — |  | (6,508 | ) | (3,238 | ) | 29,336 |
Interest income |  | — |  | 661 |  | 2,179 |  | 2,179 |
Other income |  | — |  | 73 |  | 340 |  | 437 |
Income (loss) from discontinued operations before gain on sale |  | — |  | 1,256 |  | 20,607 |  | 43,638 |
Gain (loss) on sale of discontinued operations |  | 570 |  | 163,567 |  | 56,146 |  | 23,782 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS |  | $ | 570 |  | $ | 164,823 |  | $ | 76,753 |  | $ | 67,420 |
Segment Data |  |  |  |  |  |  |  |
All other |  | $ | 570 |  | $ | 164,823 |  | $ | 76,753 |  | $ | 67,420 |
Total |  | $ | 570 |  | $ | 164,823 |  | $ | 76,753 |  | $ | 67,420 |
(1) | Interest expense includes $4.7 million for the fiscal year ended April 30, 2016, of default interest related to a $122.6 million non-recourse loan. Gain on extinguishment of debt in the fiscal year ended April 30, 2016 includes $36.5 million of gain on extinguishment of debt recognized in connection with our transfer of ownership to the mortgage lender of the nine properties serving as collateral for the $122.6 million non-recourse loan and the removal of the debt obligation and accrued interest from our balance sheet.
|  | (in thousands)
|  | Period Ended |  | Year Ended
|  | 12/31/2018 |  | April 30, 2018 |  | April 30, 2017 |  | April 30, 2016 |
Property Sale Data |  |  |  |  |  |  |  |
Sales price |  | — |  | $ | 437,652 |  | $ | 239,436 |  | $ | 373,460 |
Net book value and sales costs |  | — |  | (274,085 | ) | (183,290 | ) | (349,678 | )
Gain on sale of discontinued operations |  | — |  | $ | 163,567 |  | $ | 56,146 |  | $ | 23,782 |
As of December 31, 2018 and April 30, 2018, we had no assets or liabilities classified as held for sale. The following information reconciles the carrying amounts of major classes of assets and liabilities of the discontinued operations to assets and liabilities held for sale that are presented separately on the Consolidated Balance Sheets at April 30, 2017:
|  | April 30, 2017
Carrying amounts of major classes of assets included as part of discontinued operations |  |  |
Property owned and intangible assets, net of accumulated depreciation and amortization |  | $ | 255,466 |
Restricted cash |  | 728 |
Other Assets |  | 12,750 |
Total major classes of assets of the discontinued operations |  | 268,944 |
Other assets included in the disposal group classified as held for sale |  | 14,079 |
Total assets of the disposal group classified as held for sale on the balance sheet |  | $ | 283,023 |
Carrying amounts of major classes of liabilities included as part of discontinued operations |  |  |
Accounts payable and accrued expenses |  | $ | 4,835 |
Mortgages payable |  | 112,208 |
Other |  | 7,977 |
Total major classes of liabilities of the discontinued operations |  | 125,020 |
Other liabilities included in the disposal group classified as held for sale |  | 5,884 |
Total liabilities of the disposal group classified as held for sale on the balance sheet |  | $ | 130,904 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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