Segment Disclosures (Tables)

12 Months Ended

Dec. 31, 2012

Segment Disclosures

Information of revenue of reportable segment

Summary information for the reportable segments follows (in thousands):

        For the year ended December 31, 2012:

Segments	Rental Revenues(1)		Resident Fees and Services		Interest Income		Investment Management Fee Income		Total Revenues		NOI(2)		Adjusted NOI(2) (Cash NOI)
Senior housing	$	482,336	$	143,745	$	3,503	$	—	$	629,584	$	531,419	$	480,872
Post-acute/skilled nursing		539,242		—		19,993		—		559,235		538,856		462,927
Life science		289,664		—		—		4		289,668		236,491		226,997
Medical office		334,811		—		—		1,891		336,702		202,547		197,569
Hospital		84,493		—		1,040		—		85,533		80,980		78,995
Total	$	1,730,546	$	143,745	$	24,536	$	1,895	$	1,900,722	$	1,590,293	$	1,447,360

        For the year ended December 31, 2011:

Segments	Rental Revenues(1)		Resident Fees and Services		Interest Income		Investment Management Fee Income		Total Revenues		NOI(2)		Adjusted NOI(2) (Cash NOI)
Senior housing	$	470,592	$	50,619	$	178	$	70	$	521,459	$	486,673	$	433,728
Post-acute/skilled nursing		397,554		—		98,450		—		496,004		396,969		339,946
Life science		288,151		—		—		4		288,155		235,355		212,250
Medical office		320,115		—		—		1,999		322,114		192,213		186,180
Hospital		83,128		—		1,236		—		84,364		78,798		76,402
Total	$	1,559,540	$	50,619	$	99,864	$	2,073	$	1,712,096	$	1,390,008	$	1,248,506

        For the year ended December 31, 2010:

Segments	Rental Revenues(1)		Resident Fees and Services		Interest Income		Investment Management Fee Income		Total Revenues		NOI(2)		Adjusted NOI(2) (Cash NOI)
Senior housing	$	337,220	$	32,596	$	364	$	2,300	$	372,480	$	341,043	$	306,682
Post-acute/skilled nursing		36,023		—		121,703		—		157,726		35,847		34,685
Life science		276,762		—		—		4		276,766		228,270		204,938
Medical office		309,285		—		—		2,362		311,647		181,398		175,654
Hospital		83,491		—		38,096		—		121,587		78,661		73,642
Total	$	1,042,781	$	32,596	$	160,163	$	4,666	$	1,240,206	$	865,219	$	795,601

(1)

Represents rental and related revenues, tenant recoveries, and income from DFLs.

(2)

NOI is a non-GAAP supplemental financial measure used to evaluate the operating performance of real estate. The Company defines NOI as rental and related revenues, including tenant recoveries, resident fees and services, and income from direct financing leases, less property level operating expenses. NOI excludes interest income, investment management fee income, interest expense, depreciation and amortization, general and administrative expenses, litigation settlement, impairments, impairment recoveries, other income, net, income taxes, equity income from and impairments of investments in unconsolidated joint ventures, and discontinued operations. The Company believes NOI provides relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL accretion, amortization of above and below market lease intangibles, and lease termination fees. Adjusted NOI is sometimes referred to as "cash NOI." The Company uses NOI and adjusted NOI to make decisions about resource allocations and to assess and compare property level performance. The Company believes that net income is the most directly comparable GAAP measure to NOI. NOI should not be viewed as an alternative measure of operating performance to net income as defined by GAAP because it does not reflect the aforementioned excluded items. Further, the Company's definition of NOI may not be comparable to the definition used by other REITs, as those companies may use different methodologies for calculating NOI.

Reconciliation from reported net income to NOI and adjusted NOI

The following is a reconciliation from reported net income to NOI and adjusted NOI (in thousands):

	Years ended December 31,
	2012			2011			2010
Net income	$	846,842		$	554,494		$	344,395
Interest income		(24,536	)		(99,864	)		(160,163	)
Investment management fee income		(1,895	)		(2,073	)		(4,666	)
Interest expense		417,130			416,396			285,508
Depreciation and amortization		358,245			349,922			306,934
General and administrative		79,454			96,121			83,019
Litigation settlement and provision		—			125,000			—
Impairments (recoveries)		7,878			15,400			(11,900	)
Other income, net		(2,776	)		(12,732	)		(16,194	)
Income taxes		(1,636	)		1,250			412
Equity income from unconsolidated joint ventures		(54,455	)		(46,750	)		(4,770	)
Impairments of investment in unconsolidated joint venture		—			—			71,693
Total discontinued operations		(33,958	)		(7,156	)		(29,049	)
NOI	$	1,590,293		$	1,390,008		$	865,219
Straight-line rents		(47,311	)		(59,173	)		(47,243	)
DFL accretion		(94,240	)		(74,007	)		(10,641	)
Amortization of above and below market lease intangibles, net		(2,232	)		(4,510	)		(6,378	)
Lease termination fees		(636	)		(5,873	)		(7,665	)
NOI adjustments related to discontinued operations		1,486			2,061			2,309
Adjusted NOI	$	1,447,360		$	1,248,506		$	795,601

Reconciliation of company's assets to total assets

The Company's total assets by segment were (in thousands):

	December 31,
Segments	2012			2011			2010
Senior housing	$	7,658,612		$	5,785,441		$	4,196,456
Post-acute/skilled nursing		6,080,826			5,644,472			2,133,640
Life science		3,932,397			3,886,851			3,709,528
Medical office		2,661,394			2,336,302			2,299,311
Hospital		724,999			757,618			770,038
Gross segment assets		21,058,228			18,410,684			13,108,973
Accumulated depreciation and amortization		(1,978,597	)		(1,646,736	)		(1,386,850	)
Net segment assets		19,079,631			16,763,948			11,722,123
Assets held-for-sale, net		—			106,295			147,538
Other non-segment assets		835,924			538,232			1,462,262
Total assets	$	19,915,555		$	17,408,475		$	13,331,923