Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting

Segment Reporting

Note 9.  Segment Reporting

We have four operating segments, of which three are reportable operating segments: (i) triple net senior living communities that provide short term and long term residential care and dining services for residents, (ii) managed senior living communities that provide short term and long term residential care and dining services for residents and (iii) MOBs. Our triple net and managed senior living communities include independent living communities and assisted living communities, skilled nursing facilities, or SNFs, and two rehabilitation hospitals.  Properties in the MOB segment include medical office, clinic and biotech laboratory buildings.  The “All Other” category in the following table includes amounts related to corporate business activities and the operating results of certain properties that offer fitness, wellness and spa services to members.

	For the Three Months Ended June 30, 2013
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	56,957		$	—		$	50,899		$	4,441		$	112,297
Residents fees and services	—			74,631			—			—			74,631
Total revenues	56,957			74,631			50,899			4,441			186,928
Expenses:
Property operating expenses	—			58,231			16,253			—			74,484
Depreciation	17,019			7,028			13,301			948			38,296
General and administrative	—			—			—			8,168			8,168
Acquisition related costs	—			—			—			292			292
Impairment of assets	4,371			—			—			—			4,371
Total expenses	21,390			65,259			29,554			9,408			125,611
Operating income (loss)	35,567			9,372			21,345			(4,967		)	61,317
Interest and other income	—			—			—			397			397
Interest expense	(6,596		)	(3,073		)	(1,387		)	(18,511		)	(29,567		)
Loss on early extinguishment of debt	—			—			—			(105		)	(105		)
Equity in earnings of an investee	—			—			—			79			79
Income (loss) before income tax expense	28,971			6,299			19,958			(23,107		)	32,121
Income tax expense	—			—			—			(140		)	(140		)
Income (loss) from continuing operations	28,971			6,299			19,958			(23,247		)	31,981
Discontinued operations:
Income from discontinued operations	—			—			1,513			—			1,513
Impairment of assets from discontinued operations	—			—			(27,896		)	—			(27,896		)
Net income (loss)	$	28,971		$	6,299		$	(6,425	)	$	(23,247	)	$	5,598
Total assets	$	1,829,372		$	964,610		$	1,742,120		$	212,529		$	4,748,631

	For the Three Months Ended June 30, 2012
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	59,643		$	—		$	44,306		$	4,458		$	108,407
Residents fees and services	—			35,986			—			—			35,986
Total revenues	59,643			35,986			44,306			4,458			144,393
Expenses:
Property operating expenses	—			26,244			13,574			—			39,818
Depreciation	17,191			3,874			12,611			948			34,624
General and administrative	—			—			—			8,068			8,068
Acquisition related costs	—			—			—			1,829			1,829
Total expenses	17,191			30,118			26,185			10,845			84,339
Operating income (loss)	42,452			5,868			18,121			(6,387		)	60,054
Interest and other income	—			—			—			227			227
Interest expense	(10,163		)	(2,813		)	(381		)	(14,763		)	(28,120		)
Equity in earnings of an investee	—			—			—			76			76
Income (loss) before income tax expense	32,289			3,055			17,740			(20,847		)	32,237
Income tax expense	—			—			—			(43		)	(43		)
Income (loss) from continuing operations	32,289			3,055			17,740			(20,890		)	32,194
Discontinued operations:
Income from discontinued operations	—			—			1,057			—			1,057
Net income (loss)	$	32,289		$	3,055		$	18,797		$	(20,890	)	$	33,251
Total assets	$	1,756,892		$	623,653		$	1,885,994		$	200,013		$	4,466,552

	For the Six Months Ended June 30, 2013
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	113,723		$	—		$	101,582		$	8,845		$	224,150
Residents fees and services	—			149,687			—			—			149,687
Total revenues	113,723			149,687			101,582			8,845			373,837
Expenses:
Property operating expenses	—			116,135			32,028			—			148,163
Depreciation	33,936			13,877			26,290			1,896			75,999
General and administrative	—			—			—			16,816			16,816
Acquisition related costs	—			—			—			2,187			2,187
Impairment of assets	4,371			—			1,304			—			5,675
Total expenses	38,307			130,012			59,622			20,899			248,840
Operating income (loss)	75,416			19,675			41,960			(12,054		)	124,997
Interest and other income	—			—			—			570			570
Interest expense	(13,060		)	(6,141		)	(2,734		)	(37,196		)	(59,131		)
Loss on early extinguishment of debt	—			—			—			(105		)	(105		)
Equity in earnings of an investee	—			—			—			155			155
Income (loss) before income tax expense	62,356			13,534			39,226			(48,630		)	66,486
Income tax expense	—			—			—			(280		)	(280		)
Income (loss) from continuing operations	62,356			13,534			39,226			(48,910		)	66,206
Discontinued operations:
Income from discontinued operations	—			—			2,523			—			2,523
Impairment of assets from discontinued operations	—			—			(27,896		)	—			(27,896		)
Net income (loss)	$	62,356		$	13,534		$	13,853		$	(48,910	)	$	40,833
Total assets	$	1,829,372		$	964,610		$	1,742,120		$	212,529		$	4,748,631

	For the Six Months Ended June 30, 2012
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	118,467		$	—		$	88,090		$	8,878		$	215,435
Residents fees and services	—			71,554			—			—			71,554
Total revenues	118,467			71,554			88,090			8,878			286,989
Expenses:
Property operating expenses	—			51,743			26,561			—			78,304
Depreciation	34,383			7,580			23,538			1,896			67,397
General and administrative	—			—			—			15,753			15,753
Acquisition related costs	—			—			—			2,694			2,694
Impairment of assets	—			—			3,071			—			3,071
Total expenses	34,383			59,323			53,170			20,343			167,219
Operating income (loss)	84,084			12,231			34,920			(11,465		)	119,770
Interest and other income	—			—			—			709			709
Interest expense	(20,287		)	(5,866		)	(793		)	(30,063		)	(57,009		)
Equity in earnings of an investee	—			—			—			121			121
Income (loss) before income tax expense	63,797			6,365			34,127			(40,698		)	63,591
Income tax expense	—			—			—			(247		)	(247		)
Income (loss) from continuing operations	63,797			6,365			34,127			(40,945		)	63,344
Discontinued operations:
Income from discontinued operations	—			—			2,259			—			2,259
Net income (loss)	$	63,797		$	6,365		$	36,386		$	(40,945	)	$	65,603
Total assets	$	1,756,892		$	623,653		$	1,885,994		$	200,013		$	4,466,552