Segment Reporting

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

17. Segment Reporting

We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations on our four operating segments: triple-net, seniors housing operating, outpatient medical and life science. During the quarter ended March 31, 2015, we changed the names of our seniors housing triple-net segment to triple-net and our medical facilities segment to outpatient medical.

Our triple-net properties include long-term/post-acute care facilities, hospitals, assisted living facilities, independent living/continuing care retirement communities, care homes (United Kingdom), independent support living facilities (Canada), care homes with nursing (United Kingdom) and combinations thereof. Under the triple-net segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single tenant properties. Properties acquired are primarily leased under triple-net leases and we are not involved in the management of the property. Our seniors housing operating properties include the seniors housing communities referenced above that are owned and/or operated through RIDEA structures (see Notes 3 and 18).

Our outpatient medical properties include medical office buildings and life science buildings which are aggregated into our outpatient medical reportable segment. Our medical office buildings are typically leased to multiple tenants and generally require a certain level of property management. Our life science investment represents an investment in an unconsolidated entity (see Note 7).

We evaluate performance based upon NOI by segment. We define NOI as total revenues, including tenant reimbursements, less property level operating expenses. We believe NOI provides investors relevant and useful information because it measures the operating performance of our properties at the property level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties.

Non-segment revenue consists mainly of interest income on non-real estate investments and other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014). The results of operations for all acquisitions described in Note 3 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. There are no intersegment sales or transfers.

     Summary information for the reportable segments is as follows for the periods presented (in thousands):

Three Months Ended March 31, 2015:		Triple-net		Seniors Housing Operating		Outpatient Medical		Non-segment / Corporate		Total
Rental income	$	264,406	$	-	$	115,181	$	-	$	379,587
Resident fees and services		-		492,510		-		-		492,510
Interest income		14,699		1,031		1,264		-		16,994
Other income		3,883		1,020		161		22		5,086
Total revenues		282,988		494,561		116,606		22		894,177
Property operating expenses		-		338,507		37,954		-		376,461
Net operating income from continuing operations		282,988		156,054		78,652		22		517,716
Reconciling items:
Interest expense		10,027		34,458		7,625		68,970		121,080
Loss (gain) on derivatives, net		(58,427)		-		-		-		(58,427)
Depreciation and amortization		70,031		76,636		42,162		-		188,829
General and administrative		-		-		-		35,138		35,138
Transaction costs		36,172		12,042		341		-		48,555
Loss (gain) on extinguishment of debt, net		10,336		-		-		5,064		15,400
Impairment of assets		2,220		-		-		-		2,220
Income (loss) from continuing operations before income taxes and income from unconsolidated entities		212,629		32,918		28,524		(109,150)		164,921
Income tax expense		418		(533)		466		(48)		303
(Loss) income from unconsolidated entities		1,393		(15,073)		1,032		-		(12,648)
Income (loss) from continuing operations		214,440		17,312		30,022		(109,198)		152,576
Gain (loss) on real estate dispositions, net		54,097		-		2,749		-		56,846
Net income (loss)	$	268,537	$	17,312	$	32,771	$	(109,198)	$	209,422
Total assets	$	11,916,636	$	10,208,763	$	4,444,058	$	59,938	$	26,629,395

Three Months Ended March 31, 2014:		Triple-net		Seniors Housing Operating		Outpatient Medical		Non-segment / Corporate		Total
Rental income	$	237,716	$	-	$	98,739	$	-	$	336,455
Resident fees and services		-		456,265		-		-		456,265
Interest income		7,720		-		874		-		8,594
Other income		144		54		280		15		493
Total revenues		245,580		456,319		99,893		15		801,807
Property operating expenses		243		308,184		33,004		-		341,431
Net operating income from continuing operations		245,337		148,135		66,889		15		460,376
Reconciling items:
Interest expense		9,115		27,479		9,383		74,856		120,833
Depreciation and amortization		67,269		129,162		36,887		-		233,318
General and administrative		-		-		-		32,865		32,865
Transaction costs		275		630		47		-		952
Loss (gain) on extinguishment of debt, net		-		(148)		-		-		(148)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities		168,678		(8,988)		20,572		(107,706)		72,556
Income tax expense		(355)		(1,643)		(262)		-		(2,260)
(Loss) income from unconsolidated entities		1,382		(7,961)		1,023		-		(5,556)
Income (loss) from continuing operations		169,705		(18,592)		21,333		(107,706)		64,740
Income (loss) from discontinued operations		460		-		-		-		460
Net income (loss)	$	170,165	$	(18,592)	$	21,333	$	(107,706)	$	65,200

		Three Months Ended
		March 31, 2015			March 31, 2014
Revenues:		Amount	%		Amount	%
United States	$	745,136	83.3%	$	675,099	84.2%
International		149,041	16.7%		126,708	15.8%
Total	$	894,177	100.0%	$	801,807	100.0%
		As of
		March 31, 2015			December 31, 2014
Assets:		Amount	%		Amount	%
United States	$	21,880,931	82.2%	$	20,728,477	82.9%
International		4,748,464	17.8%		4,285,819	17.1%
Total	$	26,629,395	100.0%	$	25,014,296	100.0%