Equity-Method Investment And Other Assets

12 Months Ended

Dec. 31, 2016

Equity Method Investments And Other Assets [Abstract]

Equity Method Investments And Other Assets Disclosure [Text Block]

EQUITY-METHOD INVESTMENT AND OTHER ASSETS

Our equity-method investment in OpCo and other assets consist of the following (in thousands):

	As of December 31,
	2016		2015
Equity-method investment in OpCo	$	—	$	7,657
Accounts receivable and other assets	9,017		3,260
Regulatory deposits	8,208		—
Replacement reserve and tax escrows	4,046		4,627
	$	21,271	$	15,544

As discussed in Note 2, we disposed of our equity method investment in OpCo on September 30, 2016. From the inception of our equity-method investment in September 2012, no distributions of net income from OpCo were made to NHI, and, accordingly, adjustments to our carrying cost reflect only our pro-rata share of earnings and losses in the entity and allocations of any additional cost. NHI’s gain of $1,657,000 from the sale of OpCo was calculated on the difference between the proceeds of $8,100,000 and the carrying amount of our equity-method investment of $6,443,000. Tax effects related to the transaction include the utilization of net operating loss carry-forwards and the write-off of residual deferred tax assets totaling $1,192,000.

Reserves for replacement and tax escrows include amounts required to be held on deposit in accordance with regulatory agreements governing our Fannie Mae and HUD mortgages.

With the adoption of ASU 2015-03, Interest-Imputation of Interest, in the first quarter of 2016, the balance in Other Assets was reduced to reflect the reclassification of our unamortized loan costs which are now being offset against the loan balances as shown in Note 6.