Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies

Schedule of concentration of credit risk by segments

Segment Concentrations:

	Percentage of Senior Housing Gross Assets				Percentage of Senior Housing Revenues
	March 31,		December 31,		Three Months Ended March 31,
Operators	2013		2012		2013		2012
Emeritus	35	%	35	%	35	%	21	%
Sunrise Senior Living (“Sunrise”)(1)	17		17		13		16
HCR ManorCare	11		11		10		12
Brookdale Senior Living (“Brookdale”)(2)	10		11		12		14

	Percentage of Post-Acute/ Skilled Nursing Gross Assets				Percentage of Post-Acute/ Skilled Nursing Revenues
	March 31,		December 31,		Three Months Ended March 31,
Operators	2013		2012		2013		2012
HCR ManorCare	89	%	89	%	87	%	93	%

Total Company Concentrations:

	Percentage of Total Company Gross Assets				Percentage of Total Company Revenues
	March 31,		December 31,		Three Months Ended March 31,
Operators	2013		2012		2013		2012
HCR ManorCare	32	%	31	%	28	%	31	%
Emeritus	14		13		13		7
Sunrise(1)	7		7		5		5
Brookdale(2)	4		4		4		5

(1) Certain of the Company’s properties are leased to tenants who have entered into management contracts with Sunrise to operate the respective property on their behalf. The Company’s concentration of gross assets includes properties directly leased to Sunrise and properties that are managed by Sunrise on behalf of third party tenants.

(2) At March 31, 2013 and December 31, 2012, Brookdale percentages exclude $700 million and $692 million, respectively, of senior housing assets related to 21 senior housing facilities that Brookdale operates on the Company’s behalf under a RIDEA structure. Assuming that these assets were attributable to Brookdale, the percentage of segment and total assets for Brookdale would be 20% and 8%, respectively, at both March 31, 2013 and December 31, 2012. For the three months ended March 31, 2013 and 2012, Brookdale percentages exclude $37 million and $35 million, respectively, of senior housing revenues related to these facilities. Assuming that these revenues were attributable to Brookdale, the percentage of segment and total revenues for Brookdale would be 31% and 11% respectively, for the three months ended March 31, 2013. Assuming that these revenues were attributable to Brookdale, the percentage of segment and total revenues for Brookdale would be 37% and 12% respectively, for the three months ended March 31, 2012.

Schedule of HCR ManorCare's summarized condensed consolidated financial information

HCR ManorCare’s summarized condensed consolidated financial information follows (in millions):

	March 31,		December 31,
	2013		2012
Real estate and other property, net	$	3,030.7	$	3,046.6
Cash and cash equivalents	157.8		120.5
Deferred income taxes	1,622.3		1,627.1
Goodwill and intangible assets, net	3,243.7		3,243.8
Other assets, net	778.0		754.5
Total assets	$	8,832.5	$	8,792.5
Debt and financing obligations	$	6,348.7	$	6,374.6
Accounts payable and accrued liabilities	1,073.7		1,019.8
Total liabilities	7,422.4		7,394.4
Redeemable preferred stock	2.1		2.1
Total equity	1,408.0		1,396.0
Total liabilities and equity	$	8,832.5	$	8,792.5

	Three Months Ended March 31,
	2013			2012
Revenues:
Revenues	$	1,068.7		$	1,041.2
Costs and expenses:
Operating, general and administrative	912.4			885.4
Depreciation and amortization	37.3			42.0
Interest expense	104.4			106.3
Total costs and expenses	1,054.1			1,033.7
Other income, net	0.7			1.7
Income before income taxes and equity income from unconsolidated joint ventures	15.3			9.2
Income taxes and equity income from unconsolidated joint ventures	(3.6		)	(2.9		)
Net income	$	11.7		$	6.3

	Three Months Ended March 31,
	2013			2012
Net cash provided by operating activities	$	88.6		$	22.1
Cash flows from investing activities:
Acquisitions of property and equipment	(21.2		)	(24.9		)
Purchase of securities and other	(4.1		)	(2.2		)
Net cash used in investing activities	(25.3		)	(27.1		)
Cash flows from financing activities:
Repayments of debt and financing obligations	(26.0		)	(19.6		)
Net increase (decrease) in cash and cash equivalents	37.3			(24.6		)
Cash and cash equivalents, beginning of period	120.5			186.5
Cash and cash equivalents, end of period	$	157.8		$	161.9