Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 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					Percentage of Senior Housing Revenues
	September 30,			December 31,			Three Months Ended September 30,					Nine Months Ended September 30,
Operators	2013		2012			2013				2012		2013			2012
Emeritus	37.3	%	37.3		%	34.8			%	20.3	%	34.6		%	20.5	%
Sunrise Senior Living (“Sunrise”)(1)	17.2		17.5			11.5				15.6		12.2			15.7
HCR ManorCare	11.0		11.0			9.6				11.7		9.5			11.8
Brookdale Senior Living (“Brookdale”)(2)	10.6		10.7			11.7				14.4		11.6			14.2

	Percentage of Post-Acute/ Skilled Nursing Gross Assets							Percentage of Post-Acute/ Skilled Nursing Revenues					Percentage of Post-Acute/ Skilled Nursing Revenues
	September 30,			December 31,			Three Months Ended September 30,					Nine Months Ended September 30,
Operators	2013		2012			2013				2012		2013			2012
HCR ManorCare	88.1	%	89.3		%	72.7			%	87.2	%	81.3		%	90.9	%

Total Company Concentrations:

	Percentage of Total Company Assets							Percentage of Total Company Revenues					Percentage of Total Company Revenues
	September 30,			December 31,			Three Months Ended September 30,					Nine Months Ended September 30,
Operators	2013		2012			2013				2012		2013			2012
HCR ManorCare	32.1	%	31.5		%	27.0			%	30.7	%	28.0		%	31.2	%
Emeritus	14.6		14.3			12.2				6.6		12.6			6.7
Sunrise(1)	6.8		6.7			4.0				5.0		4.4			5.2
Brookdale(2)	4.2		4.1			4.1				4.7		4.2			4.7

(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 September 30, 2013 and December 31, 2012, Brookdale percentages exclude $778 million and $759 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 senior housing assets for Brookdale would be 21% at both September 30, 2013 and December 31, 2012. Assuming that these assets were attributable to Brookdale, the percentage of total assets for Brookdale would be 8% at both September 30, 2013 and December 31, 2012. For the three and nine months ended September 30, 2013, Brookdale percentages exclude $37.6 million and $112.0 million, respectively, of senior housing revenues related to these facilities. Assuming that these revenues were attributable to Brookdale, the percentage of senior housing revenues for Brookdale would be 31% for both the three and nine months ended September 30, 2013. Assuming that these revenues were attributable to Brookdale, the percentage of total revenues for Brookdale would be 11% for both the three and nine months ended September 30, 2013. For the three and nine months ended September 30, 2012, Brookdale percentages exclude $36.1 million and $106.8 million, respectively, of senior housing revenues related to these facilities. Assuming that these revenues were attributable to Brookdale, the percentage of senior housing revenues for Brookdale would be 38% for both the three and nine months ended September 30, 2012. Assuming that these revenues were attributable to Brookdale, the percentage of total revenues for Brookdale would be 12% for both the three and nine months ended September 30, 2012.

Summary of HCR ManorCare's condensed consolidated financial information

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

	September 30,		December 31,
	2013		2012
Real estate and other property, net	$	3,008.7	$	3,046.6
Cash and cash equivalents	158.5		120.5
Goodwill, intangible and other assets, net	5,563.7		5,625.4
Total assets	$	8,730.9	$	8,792.5
Debt and financing obligations	$	6,289.0	$	6,374.6
Accounts payable, accrued liabilities and other	1,021.8		1,021.9
Total equity	1,420.1		1,396.0
Total liabilities and equity	$	8,730.9	$	8,792.5

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenues	$	1,030.3		$	1,037.8		$	3,131.7		$	3,113.3
Operating, general and administrative expense	(888.1		)	(880.8		)	(2,677.4		)	(2,663.7		)
Depreciation and amortization expense	(36.3		)	(41.6		)	(110.0		)	(125.2		)
Interest expense	(103.8		)	(105.2		)	(312.3		)	(317.3		)
Other income, net	2.3			3.7			4.0			10.1
Income before income taxes	4.4			13.9			36.0			17.2
Income taxes	(1.8		)	(4.8		)	(11.6		)	(4.7		)
Net income	$	2.6		$	9.1		$	24.4		$	12.5