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Other Assets
9 Months Ended
Sep. 30, 2015
Other Assets.  
Other Assets

 

NOTE 10.  Other Assets

A summary of the Company’s other assets follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

    

2015

    

2014

 

Straight-line rent receivables, net of allowance of $33,527 and $34,182, respectively 

 

$

378,295

 

$

355,864

 

Marketable debt securities, net 

 

 

118,019

 

 

231,442

 

Leasing costs and inducements, net 

 

 

158,297

 

 

146,500

 

Deferred financing costs, net 

 

 

53,750

 

 

47,592

 

Goodwill 

 

 

50,346

 

 

50,346

 

Other

 

 

124,626

 

 

108,428

 

Total other assets 

 

$

883,333

 

$

940,172

 

 

At September 30, 2015 and December 31, 2014, within other assets is a non-interest bearing receivable of $14 million and $26 million, respectively, from Brookdale payable in eight quarterly installments. At September 30, 2015 and December 31, 2014, other assets also includes loan receivables of $21 million and $15 million, respectively, from HCP Ventures IV, LLC (“HCP Ventures IV”), an unconsolidated joint venture (see Note 8) with an interest rate of 12% per annum  which mature through September 2016. The loan is senior to equity distributions to the Company’s joint venture partner.

 

Marketable debt securities, net are classified as held-to-maturity debt securities and primarily represent senior notes issued by Elli Investments Limited (“Elli”), a company beneficially owned by funds or limited partnerships managed by Terra Firma, as part of the financing for Elli’s acquisition of Four Seasons Health Care (the “Four Seasons Notes”). The Four Seasons Notes mature in June 2020, are non-callable through June 2016 and bear interest on their par value at a fixed rate of 12.25% per annum. The Company purchased an aggregate par value of £138.5 million of the Four Seasons Notes at a discount for £136.8 million ($215 million) in June 2012, representing 79% of the total £175 million issued and outstanding Four Seasons Notes. In June 2015 and September 2015, the Company determined that the Four Seasons Notes were other-than-temporarily impaired (see Note 15).