Segment Reporting

9 Months Ended

Sep. 30, 2013

Segment Reporting.

Segment Reporting

Note 9.  Segment Reporting

We have four operating segments, of which three are separately 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 September 30, 2013
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	57,073		$	—		$	50,910		$	4,336		$	112,319
Residents fees and services	—			74,946			—			—			74,946
Total revenues	57,073			74,946			50,910			4,336			187,265
Expenses:
Property operating expenses	—			57,708			17,021			—			74,729
Depreciation	16,760			7,251			13,514			948			38,473
General and administrative	—			—			—			7,798			7,798
Acquisition related costs	—			—			—			396			396
Total expenses	16,760			64,959			30,535			9,142			121,396
Operating income (loss)	40,313			9,987			20,375			(4,806		)	65,869
Interest and other income	—			—			—			42			42
Interest expense	(6,546		)	(3,054		)	(1,369		)	(18,436		)	(29,405		)
Loss on early extinguishment of debt	—			—			—			(692		)	(692		)
Gain on sale of properties	1,141			—			—			—			1,141
Equity in earnings of an investee	—			—			—			64			64
Income (loss) before income tax expense	34,908			6,933			19,006			(23,828		)	37,019
Income tax expense	—			—			—			(125		)	(125		)
Income (loss) from continuing operations	34,908			6,933			19,006			(23,953		)	36,894
Discontinued operations:
Income from discontinued operations	—			—			1,231			—			1,231
Net income (loss)	$	34,908		$	6,933		$	20,237		$	(23,953	)	$	38,125
Total assets	$	1,861,729		$	967,187		$	1,732,217		$	246,197		$	4,807,330

	For the Three Months Ended September 30, 2012
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	60,496		$	—		$	48,821		$	4,439		$	113,756
Residents fees and services	—			42,352			—			—			42,352
Total revenues	60,496			42,352			48,821			4,439			156,108
Expenses:
Property operating expenses	—			31,233			15,572			—			46,805
Depreciation	17,433			5,037			11,858			948			35,276
General and administrative	—			—			—			8,352			8,352
Acquisition related costs	—			—			—			4,297			4,297
Total expenses	17,433			36,270			27,430			13,597			94,730
Operating income (loss)	43,063			6,082			21,391			(9,158		)	61,378
Interest and other income	—			—			—			248			248
Interest expense	(8,665		)	(2,929		)	(1,014		)	(17,809		)	(30,417		)
Loss on early extinguishment of debt	—			—			—			(6,349		)	(6,349		)
Loss on lease terminations	(104		)	—			—			—			(104		)
Loss on sale of properties	—			—			(101		)	—			(101		)
Equity in earnings of an investee	—			—			—			115			115
Income (loss) before income tax expense	34,294			3,153			20,276			(32,953		)	24,770
Income tax expense	—			—			—			(43		)	(43		)
Income (loss) from continuing operations	34,294			3,153			20,276			(32,996		)	24,727
Discontinued operations:
Income from discontinued operations	—			—			919			—			919
Net income (loss)	$	34,294		$	3,153		$	21,195		$	(32,996	)	$	25,646
Total assets	$	2,019,325		$	803,009		$	1,625,180		$	198,782		$	4,646,296

	For the Nine Months Ended September 30, 2013
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	170,794		$	—		$	152,492		$	13,182		$	336,468
Residents fees and services	—			224,634			—			—			224,634
Total revenues	170,794			224,634			152,492			13,182			561,102
Expenses:
Property operating expenses	—			173,844			49,049			—			222,893
Depreciation	50,696			21,128			39,804			2,844			114,472
General and administrative	—			—			—			24,615			24,615
Acquisition related costs	—			—			—			2,590			2,590
Impairment of assets	4,371			—			—			1,304			5,675
Total expenses	55,067			194,972			88,853			31,353			370,245
Operating income (loss)	115,727			29,662			63,639			(18,171		)	190,857
Interest and other income	—			—			—			612			612
Interest expense	(20,030		)	(9,196		)	(4,103		)	(55,207		)	(88,536		)
Loss on early extinguishment of debt	—			—			—			(797		)	(797		)
Gain on sale of properties	1,141			—			—			—			1,141
Equity in earnings of an investee	—			—			—			219			219
Income (loss) before income tax expense	96,838			20,466			59,536			(73,344		)	103,496
Income tax expense	—			—			—			(405		)	(405		)
Income (loss) from continuing operations	96,838			20,466			59,536			(73,749		)	103,091
Discontinued operations:
Income from discontinued operations	—			—			3,762			—			3,762
Impairment of assets from discontinued operations	—			—			(27,896		)	—			(27,896		)
Net income (loss)	$	96,838		$	20,466		$	35,402		$	(73,749	)	$	78,957
Total assets	$	1,861,729		$	967,187		$	1,732,217		$	246,197		$	4,807,330

	For the Nine Months Ended September 30, 2012
	Triple Net Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	178,964		$	—		$	136,910		$	13,317		$	329,191
Residents fees and services	—			113,906			—			—			113,906
Total revenues	178,964			113,906			136,910			13,317			443,097
Expenses:
Property operating expenses	—			82,976			42,133			—			125,109
Depreciation	51,816			12,617			35,396			2,844			102,673
General and administrative	—			—			—			24,106			24,106
Acquisition related costs	—			—			—			6,814			6,814
Impairment of assets	—			—			—			3,071			3,071
Total expenses	51,816			95,593			77,529			36,835			261,773
Operating income (loss)	127,148			18,313			59,381			(23,518		)	181,324
Interest and other income	—			—			—			957			957
Interest expense	(29,073		)	(8,675		)	(1,807		)	(47,871		)	(87,426		)
Loss on early extinguishment of debt	—			—			—			(6,349		)	(6,349		)
Loss on lease terminations	(104		)	—			—			—			(104		)
Loss on sale of properties	—			—			(101		)	—			(101		)
Equity in earnings of an investee	—			—			—			236			236
Income (loss) before income tax expense	97,971			9,638			57,473			(76,545		)	88,537
Income tax expense	—			—			—			(290		)	(290		)
Income (loss) from continuing operations	97,971			9,638			57,473			(76,835		)	88,247
Discontinued operations:
Income from discontinued operations	—			—			3,001			—			3,001
Net income (loss)	$	97,971		$	9,638		$	60,474		$	(76,835	)	$	91,248
Total assets	$	2,019,325		$	803,009		$	1,625,180		$	198,782		$	4,646,296