Discontinued Operations and Dispositions of Real Estate (Tables)

12 Months Ended

Dec. 31, 2016

HCRMC

Summary of quantitative information about fair value measurements

The following is a summary of the quantitative information about fair value measurements for the impairment related to the Company’s equity ownership interest in HCRMC using a discounted cash flow valuation model

Description of Input(s) to the Valuation	Valuation Inputs
Range of revenue growth rates(1)	(1.8%)-3.0%
Range of occupancy growth rates(1)	(0.8%)-0.2%
Range of operating expense growth rates(1)	(1.1%)-3.1%
Discount rate	15.20%
Range of earnings multiples	6.0x-7.0x

(1) For growth rates, the value ranges provided represent the highest and lowest input utilized in the valuation model for any forecasted period.

Description of Input(s) to the Valuation	Valuation Inputs
Range of revenue growth rates(1)	(0.2%)-3.5%
Range of occupancy growth rates(1)	(0.3%)-0.2%
Range of operating expense growth rates(1)	0.6%-2.8%
Discount rate	13.7%
Range of earnings multiples	6.0x-7.0x

(1) For growth rates, the value ranges provided represent the highest and lowest input utilized in the valuation model for any forecasted period.

		Post-acute/
	Senior Housing	Skilled nursing
Description of Input(s) to the Valuation	DFL Valuation Inputs	DFL Valuation Inputs
Range of EBITDAR	$75,000-$85,000	$385,000-$435,000
Range of rent coverage ratio	1.05x-1.15x	1.25x-1.35x
Range of real estate capitalization rate	6.25%-7.25%	7.50%-8.50%

Spinoff

Summary of assets and liabilities transferred to QCP at the Spin-Off date

The following is a summary of the assets and liabilities transferred to QCP at the Spin-Off date (in thousands):

	October 31,		December 31,
	2016		2015
ASSETS
Real estate:
Buildings and improvements	$	191,633	$	191,633
Land		14,147		14,147
Accumulated depreciation and amortization		(71,845)		(65,319)
Net real estate		133,935		140,461
Net investment in direct financing leases		5,107,180		5,154,316
Cash and cash equivalents		6,096		6,058
Restricted cash		—		14,526
Intangible assets, net		18,517		17,049
Other assets, net		6,620		7,790
Total assets	$	5,272,348	$	5,340,200
LIABILITIES
Accounts payable and accrued liabilities	$	46,925	$	5,453
Deferred revenue		667		687
Total liabilities		47,592		6,140
Net assets	$	5,224,756	$	5,334,060

The results of discontinued operations through October 31, 2016, the Spin-Off date, are included in the consolidated results for the years ended December 31, 2016, 2015 and 2014. Summarized financial information for discontinued operations for the years ended December 31, 2016, 2015, and 2014 is as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Revenues:
Rental and related revenues	$	22,971	$	27,651	$	27,111
Tenant recoveries		1,233		1,464		1,029
Income from direct financing leases		384,752		572,835		598,629
Interest income		—		—		868
Total revenues		408,956		601,950		627,637
Costs and expenses:
Depreciation and amortization		(4,892)		(5,880)		(4,979)
Operating		(3,367)		(3,697)		(3,309)
General and administrative		(67)		(57)		(410)
Transaction costs		(86,765)		—		—
Impairments		—		(1,295,504)		—
Other income, net		71		70		85
Income (loss) before income taxes and income from and impairments of equity method investment		313,936		(703,118)		619,024
Income tax expense		(48,181)		(796)		(756)
Income from equity method investment		—		50,723		53,175
Impairments of equity method investment		—		(45,895)		(35,913)
Net income (loss) from discontinued operations	$	265,755	$	(699,086)	$	635,530