Debt (Tables)

9 Months Ended

Sep. 30, 2011

Debt [Abstract]

Schedule of debt

Long-term debt, capital leases and financing obligations consist of the following (dollars in thousands):

	September 30, 2011		December 31, 2010
Mortgage notes payable due 2013 through 2020; weighted average interest rate of 5.04% for the nine months ended September 30, 2011, net of debt discount of $0.7 million (weighted average interest rate of 5.32% in 2010)	$	1,481,589	$	1,342,931
$150,000 Series A notes payable, secured by five communities and by a $3.0 million letter of credit, bearing interest at LIBOR plus 0.88%, payable in monthly installments of interest only until August 2011 and payable thereafter in monthly installments of principal and interest through maturity in August 2013		149,651		150,000
Mortgages payable due 2012; weighted average interest rate of 5.57% for the nine months ended September 30, 2011 (weighted average interest rate of 5.64% in 2010), payable interest only through July 2010 and payable in monthly installments of principal and interest through maturity in July 2012, secured by the underlying assets of the portfolio		-		210,897
Discount mortgage note payable due 2013, weighted average interest rate of 2.51% for the nine months ended September 30, 2011, net of debt discount of $3.4 million (weighted average interest rate of 2.55% in 2010)		79,754		79,275
Variable rate tax-exempt bonds credit-enhanced by Fannie Mae; weighted average interest rate of 1.69% for the nine months ended September 30, 2011 (weighted average interest rate of 1.73% in 2010), due 2032, payable interest only until maturity, secured by the underlying assets of the portfolio		100,572		100,841

Capital and financing lease obligations payable through 2026; weighted average interest rate of 8.61% for the nine months ended September  30, 2011 (weighted average interest rate of 8.60% in 2010)		353,976		371,172
Mortgage note, bearing interest at a variable rate of LIBOR plus 0.70%, payable interest only through maturity in August 2012.  The note was secured by 15 of the Company's communities and an $11.5 million guaranty by the Company		-		315,180
Convertible notes payable in aggregate principal amount of $316.3 million, less debt discount of $76.6 million, interest at 2.75% per annum, due June 2018.		239,649		-
Construction financing due 2023 through 2024; weighted average interest rate of 7.15% for the nine months ended September 30, 2011		6,162		-
Total debt		2,411,353		2,570,296
Less current portion		45,363		71,676
Total long-term debt	$	2,365,990	$	2,498,620

Schedule of long-term debt and equity components of convertible notes

The following represents the long-term debt and equity components of the Notes as of September 30, 2011 (dollars in thousands):

	September 30, 2011
Long-term debt
Principal	$	316,250
Unamortized discount		(76,601	)
Net carrying amount	$	239,649
Equity component	$	78,806

Interest expense associated with the convertible notes

The interest expense associated with the Notes (excluding amortization of the associated deferred financing costs) was as follows (dollars in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2011		2011
Coupon interest	$	2,174	$	2,566
Amortization of discount		2,205		2,205
Interest expense related to convertible notes	$	4,379	$	4,771

Summary of swap and cap instruments

The following table summarizes the Company's swap instruments at September 30, 2011 (dollars in thousands):

Current notional balance	$	177,851
Highest possible notional	$	177,851
Lowest interest rate		0.87	%
Highest interest rate		5.49	%
Average fixed rate		1.60	%
Earliest maturity date		2013
Latest maturity date		2016
Weighted average original maturity	3.2 years
Estimated liability fair value (included in other liabilities, net at September 30, 2011)	$	(3,105	)
Estimated asset fair value (included in other assets, net at December 31, 2010)	$	281

The following table summarizes the Company's cap instruments at September 30, 2011 (dollars in thousands):

Current notional balance	$	248,768
Highest possible notional	$	248,768
Lowest interest rate		5.50	%
Highest interest rate		6.00	%
Average fixed rate		5.74	%
Earliest maturity date		2012
Latest maturity date		2013
Weighted average original maturity	2.6 years
Estimated asset fair value (included in other assets, net at September 30, 2011)	$	-
Estimated asset fair value (included in other assets, net at December 31, 2010)	$	157