Property, Plant and Equipment and Leasehold Intangibles, Net

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment and Leasehold Intangibles, Net [Abstract]

Property, Plant and Equipment and Leasehold Intangibles, Net

6. Property, Plant and Equipment and Leasehold Intangibles, Net

As of December 31, 2011 and 2010, net property, plant and equipment and leasehold intangibles, which include assets under capital leases, consisted of the following (dollars in thousands):

	2011			2010
Land	$	275,277		$	273,214
Buildings, improvements and leasehold improvements		3,080,882			3,003,788
Furniture and equipment		450,179			382,488
Resident and leasehold operating intangibles		592,499			588,633
Construction in progress		39,600			16,463
Assets under capital and financing leases		667,239			650,174
		5,105,676			4,914,760
Accumulated depreciation and amortization		(1,411,612	)		(1,177,918	)
Property, plant and equipment and leasehold intangibles, net	$	3,694,064		$	3,736,842

Long-lived assets with definite useful lives are depreciated or amortized on a straight-line basis over their estimated useful lives (or, in certain cases, the shorter of their estimated useful lives or the lease term) and are tested for impairment whenever indicators of impairment arise.

During the years ended December 31, 2011, 2010 and 2009, the Company evaluated property, plant and equipment and leasehold intangibles for impairment. Through December 31, 2011, 2010 and 2009, $16.9 million within the Retirement Centers and Assisted Living segments, $13.1 million within the Retirement Centers and Assisted Living segments and $10.1 million within the Assisted Living segment, respectively, of non-cash charges were recorded in the Company’s operating results and shown within asset impairment in the accompanying consolidated statements of operations. These charges are reflected as a decrease to the carrying value of the asset. The impairment charges are primarily due to lower than expected performance of the underlying business. Fair value of the assets was determined based upon estimates of future cash flows developed by management using Level 3 inputs to determine an estimated fair value of the underlying communities.

For the years ended December 31, 2011, 2010 and 2009, the Company recognized depreciation and amortization expense on its property, plant and equipment and leasehold intangibles of $247.1 million, $258.0 million and $233.9 million, respectively.

Future amortization expense for resident and leasehold operating intangibles is estimated to be as follows (dollars in thousands):

Year Ending December 31,	Future Amortization
2012	$	43,191
2013		41,105
2014		35,775
2015		33,768
2016		31,971
Thereafter		68,131
Total	$	253,941

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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