Segment Disclosures (Tables)

12 Months Ended

Dec. 31, 2013

Information of revenue of reportable segment

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

For the year ended December 31, 2013:

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	$	602,506	$	146,288	$	11,621	$	—	$	760,415	$	653,191	$	594,492
Post-acute/skilled nursing		541,805		—		73,595		—		615,400		539,320		467,508
Life science		296,879		—		—		4		296,883		239,923		228,475
Medical office		352,334		—		—		1,843		354,177		212,958		210,811
Hospital		72,060		—		943		—		73,003		68,198		79,752

Total	$	1,865,584	$	146,288	$	86,159	$	1,847	$	2,099,878	$	1,713,590	$	1,581,038

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	$	481,559	$	139,073	$	3,503	$	—	$	624,135	$	529,209	$	478,671
Post-acute/skilled nursing		530,037		—		19,993		—		550,030		529,562		453,456
Life science		289,664		—		—		4		289,668		236,491		226,997
Medical office		333,008		—		—		1,891		334,899		200,876		195,761
Hospital		80,198		—		1,040		—		81,238		76,685		75,104

Total	$	1,714,466	$	139,073	$	24,536	$	1,895	$	1,879,970	$	1,572,823	$	1,429,989

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	$	469,251	$	49,091	$	178	$	70	$	518,590	$	484,970	$	432,047
Post-acute/skilled nursing		388,633		—		98,450		—		487,083		388,214		331,134
Life science		288,151		—		—		4		288,155		235,355		212,250
Medical office		318,368		—		—		1,999		320,367		190,584		184,408
Hospital		78,987		—		1,236		—		80,223		74,657		72,707

Total	$	1,543,390	$	49,091	$	99,864	$	2,073	$	1,694,418	$	1,373,780	$	1,232,546

(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 DFLs, 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 or real estate companies, 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 (cash) NOI (in thousands):

	Years ended December 31,

	2013			2012			2011
Net income	$	985,006		$	846,842		$	554,494
Interest income		(86,159	)		(24,536	)		(99,864	)
Investment management fee income		(1,847	)		(1,895	)		(2,073	)
Interest expense		435,252			416,172			415,455
Depreciation and amortization		423,312			353,704			346,055
General and administrative		109,233			79,395			96,059
Litigation settlement and provision		—			—			125,000
Impairments		—			7,878			15,400
Other income, net		(18,216	)		(2,976	)		(12,933	)
Income taxes		5,815			(1,654	)		1,301
Equity income from unconsolidated joint ventures		(64,433	)		(54,455	)		(46,750	)
Total discontinued operations		(74,373	)		(45,652	)		(18,364	)

NOI		1,713,590			1,572,823			1,373,780
Straight-line rents		(39,587	)		(47,311	)		(59,173	)
DFL accretion		(86,055	)		(94,240	)		(74,007	)
Amortization of above and below market lease intangibles, net		(6,646	)		(2,232	)		(4,510	)
Lease termination fees		(217	)		(636	)		(5,873	)
NOI adjustments related to discontinued operations		(47	)		1,585			2,329

Adjusted (Cash) NOI	$	1,581,038		$	1,429,989		$	1,232,546

Reconciliation of company's assets to total assets

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

	December 31,

Segments	2013			2012
Senior housing	$	7,803,085		$	7,638,316
Post-acute/skilled nursing		6,266,938			6,039,575
Life science		3,986,187			3,932,397
Medical office		2,686,069			2,643,893
Hospital		639,357			702,102

Gross segment assets		21,381,636			20,956,283
Accumulated depreciation and amortization		(2,257,188	)		(1,933,311	)

Net segment assets		19,124,448			19,022,972
Assets held-for-sale, net		9,819			56,659
Other non-segment assets		941,603			835,924

Total assets	$	20,075,870		$	19,915,555

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details