Investment in Unconsolidated Ventures

12 Months Ended

Dec. 31, 2011

Investment in Unconsolidated Ventures [Abstract]

5. Investment in Unconsolidated Ventures

During 2011, the Company acquired a 10% investment in a newly formed joint venture as part of the Horizon Bay/HCP transactions (Note 4). The Company also had investments in unconsolidated joint ventures of 20% in each of five entities at December 31, 2011 and 2010. The Company sold its 10% investment in one joint venture during the first quarter of 2009 for $14.3 million. During the fourth quarter of 2009, the Company purchased the majority interest of one of its joint ventures (comprised of three communities) from the other partner.

Combined summarized financial information of the unconsolidated joint ventures accounted for using the equity method as of December 31, and for the years then ended are as follows (dollars in thousands):

Statement of Operations Data	2011			2010			2009
Total revenue	$	154,964		$	84,689		$	108,711
Expense
Facility operating expense		103,611			54,766			66,507
Depreciation and amortization		23,923			12,730			15,725
Interest expense		27,072			13,153			19,616
Other expense		6,885			4,585			6,103
Total expense		161,491			85,234			107,951
Interest income		108			24			3,834
Net (loss) income	$	(6,419	)	$	(521	)	$	4,594

Balance Sheet Data	2011			2010
Cash and cash equivalents	$	15,255		$	3,077
Property, plant and equipment, net		1,012,941			323,492
Other		184,052			115,189
Total assets	$	1,212,248		$	441,758
Accounts payable and accrued expenses	$	61,199		$	46,589
Long-term debt		900,091			265,825
Members’ equity		250,958			129,344
Total liabilities and members’ equity	$	1,212,248		$	441,758
Members’ equity consists of:
Invested capital	$	403,625		$	265,243
Cumulative net loss		(25,810	)		(19,391	)
Cumulative distributions		(126,857	)		(116,508	)
Members’ equity	$	250,958		$	129,344

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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