[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
(State or Other Jurisdiction of Incorporation or Organization) |
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20-3068069
(I.R.S. Employer Identification No.)
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(Registrant's telephone number including area code)
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(615) 221-2250
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Title of Each Class
Common Stock, $0.01 Par Value Per Share |
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Name of Each Exchange on Which Registered
New York Stock Exchange |
Large accelerated filer [X ]
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Accelerated filer [ ]
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Non-accelerated filer [ ] (Do not check if a smaller reporting company)
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Smaller reporting company [ ]
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For the Years Ended December 31,
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|||||||||||
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2012
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2011
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2010
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|||||||||
Total revenues
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$
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2,770.1
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$
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2,457.9
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$
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2,280.5
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||||||
Net loss(1)
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$
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(65.6
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)
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$
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(68.2
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)
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$
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(48.9
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)
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|||
Adjusted EBITDA(2)
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$
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409.9
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$
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402.7
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$
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408.5
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||||||
Cash From Facility Operations(3)
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$
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239.0
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$
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239.9
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$
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240.7
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||||||
Facility Operating Income(2)
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$
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758.8
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$
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757.8
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$
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744.3
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(1) | Net loss for 2012, 2011 and 2010 include non-cash impairment charges of $27.7 million, $16.9 million and $13.1 million, respectively. |
(2) | Adjusted EBITDA and Facility Operating Income are non-GAAP financial measures we use in evaluating our operating performance. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures" for an explanation of how we define each of these measures, a detailed description of why we believe such measures are useful and the limitations of each measure, and a reconciliation of net loss to each of these measures. |
(3) | Cash From Facility Operations is a non-GAAP financial measure we use in evaluating our liquidity. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures" for an explanation of how we define this measure, a detailed description of why we believe such measure is useful and the limitations of such measure, and a reconciliation of net cash provided by operating activities to such measure. |
· | Organic growth in our core business, including expense control and the realization of economies of scale. We plan to grow our existing operations by increasing revenues through a combination of occupancy growth and monthly service fee increases as a result of our competitive strength and growing demand for senior living communities. In addition, we intend to take advantage of our sophisticated operating and marketing expertise to retain existing residents and attract new residents to our communities. We intend to focus on organic growth by continually improving our operational, sales and marketing execution. We have recently taken steps to centralize and enhance our marketing function and programs |
· | Growth through the expansion, redevelopment and repositioning of existing communities. Through our Program Max initiative, we intend to grow our revenues and cash flows through the expansion, redevelopment and repositioning of certain of our existing communities where economically advantageous. Certain of our communities with stabilized occupancies and excess demand in their respective markets may benefit from additions and expansions (which additions and expansions may be subject to landlord, lender and other third party consents) offering increased capacity. Additionally, the community, as well as our presence in the market, may benefit from adding a new level of service for residents. Through Program Max, we may also reposition certain communities to meet the evolving needs of our customers. This may include converting space from one level of care to another, reconfiguration of existing units, or the addition of services that are not currently present. |
·
|
Growth through the acquisition and consolidation of asset portfolios and other senior living companies. As opportunities arise, we plan to continue to take advantage of the fragmented continuing care, independent living and assisted living sectors by selectively purchasing existing operating companies, asset portfolios, home health agencies and senior living communities. We may also seek to acquire the fee interest in communities that we currently lease or manage. Our acquisition strategy will continue to focus primarily on communities where we can improve service delivery, occupancy rates and cash flow.
|
·
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Growth through the continued expansion of our ancillary services programs (including therapy, home health and hospice services). We plan to grow our revenues by further expanding our Innovative Senior Care program throughout our retirement centers, assisted living, CCRCs – rental, CCRCs – entry fee and management services segments. This expansion includes expanding the scope of services provided at the communities currently served, the continuing rollout of ancillary services programs to communities not currently serviced, and the implementation of programs at communities that we may acquire or manage in the future. In addition, we plan to grow our revenues from ancillary services through the maturation of existing clinics. Through the Innovative Senior Care program, we currently provide therapy, home health and other ancillary services, as well as education and wellness programs, to residents of many of our communities. These programs are focused on wellness and physical fitness to allow residents to maintain maximum independence. These services provide many continuing education opportunities for residents and their families through health fairs, seminars, and other consultative interactions. The therapy services we provide include physical, occupational, speech and other specialized therapy and home health services. The home health services we provide include skilled nursing, physical therapy, occupational therapy, speech language pathology, home health aide services, and social services as needed. In addition to providing these in-house therapy and wellness services at our communities, we also provide these services to other senior living communities that we do not own or operate and to seniors living outside of our communities. These services may be reimbursed under the Medicare program or paid directly by residents from private pay sources and revenues are recognized as services are provided. We have also begun offering hospice services in certain locations. We believe that our Innovative Senior Care program is unique in the senior living industry and that we have a significant advantage over our competitors with respect to providing ancillary services because of our established infrastructure and experience.
|
· | Skilled management team with extensive experience. Our senior management team has extensive experience in acquiring, operating and managing a broad range of senior living assets, including experience in the senior living, healthcare, hospitality and real estate industries. |
· | Geographically diverse, high-quality, purpose-built communities. As of December 31, 2012, we operate a nationwide base of 647 purpose-built communities in 36 states, including 108 communities in the ten most populous standard metropolitan statistical areas. |
· | Ability to provide a broad spectrum of care. Given our diverse mix of retirement centers, assisted living communities and CCRCs, we are able to meet a wide range of our customers' needs. We believe that we are one of the few companies in the senior living industry with this capability and the only company that does so at scale on a national basis. We believe that our multiple product offerings create marketing synergies and cross-selling opportunities. |
· | The size of our business allows us to realize cost and operating efficiencies. We are the largest operator of senior living communities in the United States based on total capacity. The size of our business allows us to realize cost savings and economies of scale in the procurement of goods and services. Our scale also allows us to achieve increased efficiencies with respect to various corporate functions. We intend to utilize our expertise and size to capitalize on economies of scale resulting from our national platform. Our geographic footprint and centralized infrastructure provide us with a significant operational advantage over local and regional operators of senior living communities. In connection with our formation transactions and our acquisitions, we negotiated new contracts for food, insurance and other goods and services. In addition, we have and will continue to consolidate corporate functions such as accounting, finance, human resources, legal, information technology and marketing. |
· | Significant experience in providing ancillary services. Through our Innovative Senior Care program, we provide a range of education, wellness, therapy, home health and other ancillary services to residents of certain of our retirement centers, assisted living, and CCRC communities. Having therapy clinics and home health agencies located in our senior living communities to provide needed services to our residents is a distinct competitive difference. We have significant experience in providing these ancillary services and expect to receive additional revenues as we expand our ancillary service offerings to additional communities and to seniors outside of our communities. |
·
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We may have little or no cash flow apart from cash flow that is dedicated to the payment of any interest, principal or amortization required with respect to outstanding indebtedness and lease payments with respect to our long-term leases;
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·
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Increases in our outstanding indebtedness, leverage and long-term leases will increase our vulnerability to adverse changes in general economic and industry conditions, as well as to competitive pressure;
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·
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Increases in our outstanding indebtedness may limit our ability to obtain additional financing for working capital, capital expenditures, expansions, repositionings, new developments, acquisitions, general corporate and other purposes; and
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·
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Our ability to pay dividends to our stockholders may be limited.
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·
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required refunding or retroactive adjustment of amounts we have been paid pursuant to the federal or state programs;
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·
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state or federal agencies imposing fines, penalties and other sanctions on us;
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·
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loss of our right to participate in the Medicare program or state programs; or
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·
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damage to our business and reputation in various markets.
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·
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a staggered board of directors consisting of three classes of directors, each of whom serve three-year terms;
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·
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removal of directors only for cause, and only with the affirmative vote of at least 80% of the voting interest of stockholders entitled to vote;
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·
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blank-check preferred stock;
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·
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provisions in our amended and restated certificate of incorporation and amended and restated by-laws preventing stockholders from calling special meetings;
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·
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advance notice requirements for stockholders with respect to director nominations and actions to be taken at annual meetings; and
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·
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no provision in our amended and restated certificate of incorporation for cumulative voting in the election of directors, which means that the holders of a majority of the outstanding shares of our common stock can elect all the directors standing for election.
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·
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variations in our quarterly operating results;
|
·
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changes in our earnings estimates;
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·
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the contents of published research reports about us or the senior living industry or the failure of securities analysts to cover our common stock;
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·
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additions or departures of key management personnel;
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·
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any increased indebtedness we may incur or lease obligations we may enter into in the future;
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·
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actions by institutional stockholders;
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·
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changes in market valuations of similar companies;
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·
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announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments;
|
·
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speculation or reports by the press or investment community with respect to the Company or the senior living industry in general;
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·
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increases in market interest rates that may lead purchasers of our shares to demand a higher yield;
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·
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changes or proposed changes in laws or regulations affecting the senior living industry or enforcement of these laws and regulations, or announcements relating to these matters; and
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·
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general market and economic conditions.
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Occupancy
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Ownership Status |
|||||||||||||||||||||||
State
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Units
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Rate(1)(2)
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Owned
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Leased
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Managed
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Total
|
||||||||||||||||||
Florida
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13,825
|
86.0
|
%
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37
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36
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27
|
100
|
|||||||||||||||||
Texas
|
10,288
|
86.2
|
%
|
23
|
33
|
23
|
79
|
|||||||||||||||||
Colorado
|
3,674
|
92.4
|
%
|
6
|
17
|
8
|
31
|
|||||||||||||||||
Ohio
|
3,320
|
86.9
|
%
|
23
|
16
|
3
|
42
|
|||||||||||||||||
California
|
3,284
|
88.3
|
%
|
12
|
6
|
3
|
21
|
|||||||||||||||||
Illinois
|
3,234
|
90.1
|
%
|
1
|
9
|
4
|
14
|
|||||||||||||||||
North Carolina
|
3,209
|
92.5
|
%
|
4
|
51
|
—
|
55
|
|||||||||||||||||
Michigan
|
2,933
|
88.5
|
%
|
9
|
24
|
3
|
36
|
|||||||||||||||||
Arizona
|
2,548
|
87.3
|
%
|
3
|
11
|
5
|
19
|
|||||||||||||||||
Tennessee
|
1,629
|
94.5
|
%
|
14
|
8
|
2
|
24
|
|||||||||||||||||
Virginia
|
1,612
|
85.0
|
%
|
4
|
2
|
1
|
7
|
|||||||||||||||||
Kansas
|
1,463
|
91.8
|
%
|
10
|
11
|
2
|
23
|
|||||||||||||||||
Oklahoma
|
1,416
|
86.8
|
%
|
10
|
16
|
3
|
29
|
|||||||||||||||||
Alabama
|
1,373
|
93.2
|
%
|
5
|
3
|
1
|
9
|
|||||||||||||||||
Indiana
|
1,301
|
84.0
|
%
|
9
|
8
|
—
|
17
|
|||||||||||||||||
Rhode Island
|
1,183
|
86.5
|
%
|
1
|
4
|
4
|
9
|
|||||||||||||||||
New York
|
1,157
|
88.1
|
%
|
6
|
10
|
—
|
16
|
|||||||||||||||||
Washington
|
1,044
|
87.4
|
%
|
4
|
8
|
—
|
12
|
|||||||||||||||||
Missouri
|
1,008
|
87.9
|
%
|
3
|
—
|
1
|
4
|
|||||||||||||||||
Pennsylvania
|
936
|
85.1
|
%
|
6
|
2
|
—
|
8
|
|||||||||||||||||
Georgia
|
848
|
87.9
|
%
|
4
|
—
|
4
|
8
|
|||||||||||||||||
Oregon
|
765
|
96.7
|
%
|
7
|
5
|
—
|
12
|
|||||||||||||||||
Minnesota
|
723
|
89.1
|
%
|
2
|
14
|
1
|
17
|
|||||||||||||||||
South Carolina
|
624
|
86.5
|
%
|
4
|
8
|
—
|
12
|
|||||||||||||||||
Kentucky
|
582
|
92.3
|
%
|
—
|
2
|
—
|
2
|
|||||||||||||||||
Wisconsin
|
504
|
90.9
|
%
|
5
|
11
|
—
|
16
|
|||||||||||||||||
New Jersey
|
494
|
81.9
|
%
|
2
|
6
|
—
|
8
|
|||||||||||||||||
New Mexico
|
429
|
86.4
|
%
|
2
|
1
|
—
|
3
|
|||||||||||||||||
Connecticut
|
424
|
79.2
|
%
|
2
|
2
|
—
|
4
|
|||||||||||||||||
Massachusetts
|
280
|
84.2
|
%
|
—
|
1
|
—
|
1
|
|||||||||||||||||
Idaho
|
228
|
100.0
|
%
|
2
|
1
|
—
|
3
|
|||||||||||||||||
Nevada
|
142
|
88.8
|
%
|
—
|
2
|
—
|
2
|
|||||||||||||||||
Louisiana
|
84
|
98.6
|
%
|
—
|
—
|
1
|
1
|
|||||||||||||||||
Maryland
|
79
|
22.0
|
%
|
—
|
—
|
1
|
1
|
|||||||||||||||||
Delaware
|
54
|
100.0
|
%
|
1
|
—
|
—
|
1
|
|||||||||||||||||
Mississippi
|
37
|
100.0
|
%
|
—
|
1
|
—
|
1
|
|||||||||||||||||
Total
|
66,734
|
87.9
|
%
|
221
|
329
|
97
|
647
|
(1)
|
Includes the impact of managed properties.
|
(2)
|
Represents occupancy at the end of the period.
|
Name
|
Age
|
Position
|
||
W.E. Sheriff
|
70
|
Chief Executive Officer
|
||
Mark W. Ohlendorf
|
52
|
Co-President and Chief Financial Officer
|
||
John P. Rijos
|
60
|
Co-President and Chief Operating Officer
|
||
T. Andrew Smith
|
52
|
Executive Vice President, General Counsel and Secretary
|
||
Bryan D. Richardson
|
54
|
Executive Vice President and Chief Administrative Officer
|
||
Gregory B. Richard
|
58
|
Executive Vice President – Field Operations
|
||
Kristin A. Ferge
|
39
|
Executive Vice President and Treasurer
|
||
George T. Hicks
|
55
|
Executive Vice President – Finance
|
||
H. Todd Kaestner
|
57
|
Executive Vice President – Corporate Development
|
||
Edward A. Fenoglio | 42 | Division President | ||
Mary Sue Patchett | 50 | Division President | ||
Kari L. Schmidt | 46 | Division President |
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Fiscal 2012
|
||||||||
High
|
Low
|
|||||||
First Quarter
|
$
|
19.96
|
$
|
15.43
|
||||
Second Quarter
|
$
|
19.78
|
$
|
14.99
|
||||
Third Quarter
|
$
|
23.97
|
$
|
15.62
|
||||
Fourth Quarter
|
$
|
26.11
|
$
|
21.28
|
Fiscal 2011
|
||||||||
High
|
Low
|
|||||||
First Quarter
|
$
|
28.23
|
$
|
20.90
|
||||
Second Quarter
|
$
|
28.30
|
$
|
21.97
|
||||
Third Quarter
|
$
|
25.51
|
$
|
12.27
|
||||
Fourth Quarter
|
$
|
17.54
|
$
|
10.98
|
For the Years Ended December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
Fiscal Year ended December 31,
(in thousands, except per share and other operating data)
|
||||||||||||||||||||
Total revenue
|
$
|
2,770,085
|
$
|
2,457,918
|
$
|
2,280,535
|
$
|
2,100,274
|
$
|
2,001,304
|
||||||||||
Facility operating expense
|
1,630,919
|
1,508,571
|
1,437,930
|
1,302,277
|
1,261,581
|
|||||||||||||||
General and administrative expense
|
178,829
|
148,327
|
131,709
|
134,864
|
140,919
|
|||||||||||||||
Facility lease expense
|
284,025
|
274,858
|
270,905
|
272,096
|
269,469
|
|||||||||||||||
Depreciation and amortization
|
252,281
|
268,506
|
292,341
|
271,935
|
276,202
|
|||||||||||||||
(Gain) loss on facility lease termination
|
(11,584
|
)
|
―
|
4,608
|
―
|
―
|
||||||||||||||
(Gain) loss on sale of communities, net
|
―
|
―
|
(3,298
|
)
|
2,043
|
―
|
||||||||||||||
Loss (gain) on acquisition
|
636
|
(1,982
|
)
|
―
|
―
|
―
|
||||||||||||||
Goodwill and asset impairment
|
27,677
|
16,892
|
13,075
|
10,073
|
220,026
|
|||||||||||||||
Costs incurred on behalf of managed communities
|
325,016
|
152,566
|
67,271
|
77,206
|
73,250
|
|||||||||||||||
Total operating expense
|
2,687,799
|
2,367,738
|
2,214,541
|
2,070,494
|
2,241,447
|
|||||||||||||||
Income (loss) from operations
|
82,286
|
90,180
|
65,994
|
29,780
|
(240,143
|
)
|
||||||||||||||
Interest income
|
4,012
|
3,538
|
2,238
|
2,354
|
7,618
|
|||||||||||||||
Interest expense:
|
||||||||||||||||||||
Debt
|
(128,338
|
)
|
(124,873
|
)
|
(132,641
|
)
|
(128,869
|
)
|
(147,389
|
)
|
||||||||||
Amortization of deferred financing costs and debt discount
|
(18,081
|
)
|
(13,427
|
)
|
(8,963
|
)
|
(9,505
|
)
|
(9,707
|
)
|
||||||||||
Change in fair value of derivatives and amortization
|
(364
|
)
|
(3,878
|
)
|
(4,118
|
)
|
3,765
|
(68,146
|
)
|
|||||||||||
Loss on extinguishment of debt, net
|
(221
|
)
|
(18,863
|
)
|
(1,557
|
)
|
(1,292
|
)
|
(3,052
|
)
|
||||||||||
Equity in (loss) earnings of unconsolidated ventures
|
(3,488
|
)
|
1,432
|
168
|
440
|
(861
|
)
|
|||||||||||||
Other non-operating income (expense)
|
593
|
56
|
(1,454
|
)
|
4,146
|
1,708
|
||||||||||||||
Loss before income taxes
|
(63,601
|
)
|
(65,835
|
)
|
(80,333
|
)
|
(99,181
|
)
|
(459,972
|
)
|
||||||||||
(Provision) benefit for income taxes
|
(2,044
|
)
|
(2,340
|
)
|
31,432
|
32,926
|
86,731
|
|||||||||||||
Net loss
|
$
|
(65,645
|
)
|
$
|
(68,175
|
)
|
$
|
(48,901
|
)
|
$
|
(66,255
|
)
|
$
|
(373,241
|
)
|
|||||
|
||||||||||||||||||||
Basic and diluted net loss per share
|
$
|
(0.54
|
)
|
$
|
(0.56
|
)
|
$
|
(0.41
|
)
|
$
|
(0.60
|
)
|
$
|
(3.67
|
)
|
|||||
Weighted average shares of common stock used in computing basic and diluted loss per share
|
121,991
|
121,161
|
120,010
|
111,288
|
101,667
|
|||||||||||||||
Dividends declared per share of common stock
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
0.75
|
||||||||||
|
||||||||||||||||||||
Other Operating Data:
|
||||||||||||||||||||
Total number of communities (at end of period)
|
647
|
647
|
559
|
565
|
548
|
|||||||||||||||
Total units operated(1)
|
||||||||||||||||||||
Period end
|
65,936
|
66,183
|
50,521
|
51,021
|
49,145
|
|||||||||||||||
Weighted average
|
66,102
|
55,548
|
50,870
|
49,536
|
49,165
|
|||||||||||||||
Owned/leased communities occupancy rate (weighted average)
|
88.0
|
%
|
87.3
|
%
|
87.1
|
%
|
86.5
|
%
|
87.6
|
%
|
||||||||||
Senior Housing average monthly revenue per unit(2)
|
$
|
4,271
|
$
|
4,193
|
$
|
4,053
|
$
|
3,946
|
$
|
3,823
|
As of December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
69,240
|
$
|
30,836
|
$
|
81,827
|
$
|
66,370
|
$
|
53,973
|
||||||||||
Total assets
|
$
|
4,665,978
|
$
|
4,466,061
|
$
|
4,530,470
|
$
|
4,649,879
|
$
|
4,449,258
|
||||||||||
Total debt
|
$
|
2,679,369
|
$
|
2,463,625
|
$
|
2,570,296
|
$
|
2,625,526
|
$
|
2,552,929
|
||||||||||
Total stockholders' equity
|
$
|
1,002,717
|
$
|
1,040,208
|
$
|
1,059,997
|
$
|
1,086,582
|
$
|
960,601
|
(1)
|
Period end units operated excludes equity homes. Weighted average units operated represents the average units operated during the period, excluding equity homes.
|
(2)
|
Senior Housing average monthly revenue per unit represents the average of the total monthly resident fee revenues, excluding amortization of entrance fees and ISC segment revenue, divided by average occupied units.
|
Years Ended
December 31,
|
Increase
(Decrease) |
|||||||||||||||
2012
|
2011
|
Amount
|
Percent
|
|||||||||||||
Total revenue
|
$
|
2,770.1
|
$
|
2,457.9
|
$
|
312.2
|
12.7
|
%
|
||||||||
Net loss(1)
|
$
|
(65.6
|
)
|
$
|
(68.2
|
)
|
$
|
(2.6
|
)
|
(3.8
|
)%
|
|||||
Adjusted EBITDA
|
$
|
409.9
|
$
|
402.7
|
$
|
7.2
|
1.8
|
%
|
||||||||
Cash From Facility Operations
|
$
|
239.0
|
$
|
239.9
|
$
|
(0.9
|
)
|
(0.4
|
)%
|
|||||||
Facility Operating Income
|
$
|
758.8
|
$
|
757.8
|
$
|
1.0
|
0.1
|
%
|
(dollars in thousands, except average monthly revenue per unit)
|
Years Ended
December 31,
|
Increase
(Decrease) |
||||||||||||||
2012
|
2011
|
Amount
|
Percent
|
|||||||||||||
Statement of Operations Data:
|
||||||||||||||||
Revenue
|
||||||||||||||||
Resident fees
|
||||||||||||||||
Retirement Centers
|
$
|
503,902
|
$
|
473,842
|
$
|
30,060
|
6.3
|
%
|
||||||||
Assisted Living
|
1,013,337
|
964,585
|
48,752
|
5.1
|
%
|
|||||||||||
CCRCs - Rental
|
385,479
|
364,095
|
21,384
|
5.9
|
%
|
|||||||||||
CCRCs - Entry Fee
|
287,048
|
283,455
|
3,593
|
1.3
|
%
|
|||||||||||
ISC
|
224,517
|
205,780
|
18,737
|
9.1
|
%
|
|||||||||||
Total resident fees
|
2,414,283
|
2,291,757
|
122,526
|
5.3
|
%
|
|||||||||||
Management services(1)
|
355,802
|
166,161
|
189,641
|
114.1
|
%
|
|||||||||||
Total revenue
|
2,770,085
|
2,457,918
|
312,167
|
12.7
|
%
|
|||||||||||
Expense
|
||||||||||||||||
Facility operating expense
|
||||||||||||||||
Retirement Centers
|
298,317
|
275,403
|
22,914
|
8.3
|
%
|
|||||||||||
Assisted Living
|
652,153
|
624,657
|
27,496
|
4.4
|
%
|
|||||||||||
CCRCs - Rental
|
279,416
|
247,246
|
32,170
|
13.0
|
%
|
|||||||||||
CCRCs - Entry Fee
|
224,296
|
213,470
|
10,826
|
5.1
|
%
|
|||||||||||
ISC
|
176,737
|
147,795
|
28,942
|
19.6
|
%
|
|||||||||||
Total facility operating expense
|
1,630,919
|
1,508,571
|
122,348
|
8.1
|
%
|
|||||||||||
General and administrative expense
|
178,829
|
148,327
|
30,502
|
20.6
|
%
|
|||||||||||
Facility lease expense
|
284,025
|
274,858
|
9,167
|
3.3
|
%
|
|||||||||||
Depreciation and amortization
|
252,281
|
268,506
|
(16,225
|
)
|
(6.0
|
%)
|
||||||||||
Asset impairment
|
27,677
|
16,892
|
10,785
|
63.8
|
%
|
|||||||||||
Loss (gain) on acquisition
|
636
|
(1,982
|
)
|
2,618
|
132.1
|
%
|
||||||||||
Gain on facility lease termination
|
(11,584
|
)
|
—
|
11,584
|
100.0
|
%
|
||||||||||
Costs incurred on behalf of managed communities
|
325,016
|
152,566
|
172,450
|
113.0
|
%
|
|||||||||||
Total operating expense
|
2,687,799
|
2,367,738
|
320,061
|
13.5
|
%
|
|||||||||||
Income from operations
|
82,286
|
90,180
|
(7,894
|
)
|
(8.8
|
%)
|
||||||||||
Interest income
|
4,012
|
3,538
|
474
|
13.4
|
%
|
|||||||||||
Interest expense:
|
||||||||||||||||
Debt
|
(128,338
|
)
|
(124,873
|
)
|
3,465
|
2.8
|
%
|
|||||||||
Amortization of deferred financing costs and debt discount
|
(18,081
|
)
|
(13,427
|
)
|
4,654
|
34.7
|
%
|
|||||||||
Change in fair value of derivatives and amortization
|
(364
|
)
|
(3,878
|
)
|
(3,514
|
)
|
(90.6
|
%)
|
||||||||
Loss on extinguishment of debt, net
|
(221
|
)
|
(18,863
|
)
|
(18,642
|
)
|
(98.8
|
%)
|
||||||||
Equity in (loss) earnings of unconsolidated ventures
|
(3,488
|
)
|
1,432
|
4,920
|
343.6
|
%
|
||||||||||
Other non-operating income
|
593
|
56
|
537
|
958.9
|
%
|
|||||||||||
Loss before income taxes
|
(63,601
|
)
|
(65,835
|
)
|
(2,234
|
)
|
(3.4
|
%)
|
||||||||
Provision for income taxes
|
(2,044
|
)
|
(2,340
|
)
|
(296
|
)
|
(12.6
|
%)
|
||||||||
Net loss
|
$
|
(65,645
|
)
|
$
|
(68,175
|
)
|
$
|
(2,530
|
)
|
(3.7
|
%)
|
|||||
Selected Operating and Other Data:
|
||||||||||||||||
Total number of communities (period end)
|
647
|
647
|
―
|
―
|
||||||||||||
Total units operated(2)
|
||||||||||||||||
Period end
|
65,936
|
66,183
|
(247
|
)
|
(0.4
|
%)
|
||||||||||
Weighted average
|
66,102
|
55,548
|
10,554
|
19.0
|
%
|
|||||||||||
Owned/leased communities units(2)
|
||||||||||||||||
Period end
|
47,938
|
47,895
|
43
|
0.1
|
%
|
|||||||||||
Weighted average
|
47,947
|
46,912
|
1,035
|
2.2
|
%
|
|||||||||||
Owned/leased communities occupancy rate (weighted average)
|
88.0
|
%
|
87.3
|
%
|
0.7
|
%
|
0.8
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
4,271
|
$
|
4,193
|
$
|
78
|
1.9
|
%
|
Selected Segment Operating and Other Data:
|
||||||||||||||||
Retirement Centers
|
||||||||||||||||
Number of communities (period end)
|
76
|
76
|
―
|
―
|
||||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
14,433
|
14,468
|
(35
|
)
|
(0.2
|
%)
|
||||||||||
Weighted average
|
14,445
|
14,188
|
257
|
1.8
|
%
|
|||||||||||
Occupancy rate (weighted average)
|
89.1
|
%
|
88.0
|
%
|
1.1
|
%
|
1.3
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
3,263
|
$
|
3,163
|
$
|
100
|
3.2
|
%
|
||||||||
Assisted Living
|
||||||||||||||||
Number of communities (period end)
|
433
|
434
|
(1
|
)
|
(0.2
|
%)
|
||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
21,551
|
21,630
|
(79
|
)
|
(0.4
|
%)
|
||||||||||
Weighted average
|
21,625
|
21,323
|
302
|
1.4
|
%
|
|||||||||||
Occupancy rate (weighted average)
|
88.9
|
%
|
88.2
|
%
|
0.7
|
%
|
0.8
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
4,390
|
$
|
4,275
|
$
|
115
|
2.7
|
%
|
||||||||
CCRCs - Rental
|
||||||||||||||||
Number of communities (period end)
|
27
|
26
|
1
|
3.8
|
%
|
|||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
6,691
|
6,634
|
57
|
0.9
|
%
|
|||||||||||
Weighted average
|
6,667
|
6,253
|
414
|
6.6
|
%
|
|||||||||||
Occupancy rate (weighted average)
|
86.3
|
%
|
86.5
|
%
|
(0.2
|
%)
|
(0.2
|
%)
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
5,588
|
$
|
5,612
|
$
|
(24
|
)
|
(0.4
|
%)
|
|||||||
CCRCs - Entry Fee
|
||||||||||||||||
Number of communities (period end)
|
14
|
14
|
―
|
―
|
||||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
5,263
|
5,163
|
100
|
1.9
|
%
|
|||||||||||
Weighted average
|
5,210
|
5,148
|
62
|
1.2
|
%
|
|||||||||||
Occupancy rate (weighted average)
|
83.7
|
%
|
82.7
|
%
|
1.0
|
%
|
1.2
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
4,978
|
$
|
5,052
|
$
|
(74
|
)
|
(1.5
|
%)
|
|||||||
Other Entry Fee Data
|
||||||||||||||||
Non-refundable entrance fees sales
|
$
|
40,105
|
$
|
38,378
|
$
|
1,727
|
4.5
|
%
|
||||||||
Refundable entrance fees sales(4)
|
42,600
|
29,611
|
12,989
|
43.9
|
%
|
|||||||||||
Total entrance fee receipts
|
82,705
|
67,989
|
14,716
|
21.6
|
%
|
|||||||||||
Refunds
|
(27,356
|
)
|
(25,754
|
)
|
1,602
|
6.2
|
%
|
|||||||||
Net entrance fees(5)
|
$
|
55,349
|
$
|
42,235
|
$
|
13,114
|
31.1
|
%
|
||||||||
Management Services
|
||||||||||||||||
Number of communities (period end)
|
97
|
97
|
―
|
―
|
||||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
17,998
|
18,288
|
(290
|
)
|
(1.6
|
%)
|
||||||||||
Weighted average
|
18,155
|
8,636
|
9,519
|
110.2
|
%
|
|||||||||||
Occupancy rate (weighted average)
|
84.5
|
%
|
84.5
|
%
|
0.0
|
%
|
―
|
|||||||||
|
||||||||||||||||
ISC
|
||||||||||||||||
Outpatient Therapy treatment codes
|
3,566,654
|
3,349,854
|
216,800
|
6.5
|
%
|
|||||||||||
Home Health average census
|
3,710
|
3,330
|
380
|
11.4
|
%
|
(1) | Management services segment revenue includes reimbursements for which we are the primary obligor of costs incurred on behalf of managed communities. |
(2) | Period end units operated excludes equity homes. Weighted average units operated represents the average units operated during the period, excluding equity homes. |
(3) | Senior Housing average monthly revenue per unit represents the average of the total monthly resident fee revenues, excluding amortization of entrance fees and ISC segment revenue, divided by average occupied units. |
(4) | Refundable entrance fee sales for the years ended December 31, 2012 and 2011 include amounts received from residents participating in the MyChoice program, which allows new and existing residents the option to pay additional refundable entrance fee amounts in return for a reduced monthly service fee. MyChoice amounts received from residents totaled $13.3 million and $9.0 million for the years ended December 31, 2012 and 2011. |
(5) | Includes $3.6 million and $12.6 million of first generation net entrance fee receipts (which represent initial entrance fees received from the sale of units, net of first generation entrance fee refunds not replaced by second generation entrance fee receipts, at a recently opened entrance fee CCRC) during the year ended December 31, 2012 and 2011, respectively. |
Year Ended December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Resident fee revenues
|
$
|
2,414,283
|
79.5
|
%
|
$
|
2,291,757
|
88.3
|
%
|
||||||||
Resident fee revenues under management
|
623,613
|
20.5
|
%
|
304,717
|
11.7
|
%
|
||||||||||
Total
|
$
|
3,037,896
|
100.0
|
%
|
$
|
2,596,474
|
100.0
|
%
|
General and administrative expenses (excluding non-cash stock-based compensation expense and integration, transaction-related and EMR roll-out costs)
|
$
|
129,844
|
4.3
|
%
|
$
|
114,083
|
4.4
|
%
|
||||||||
Non-cash stock-based compensation expense
|
25,520
|
0.8
|
%
|
19,856
|
0.8
|
%
|
||||||||||
Integration, transaction-related and EMR roll-out costs
|
23,465
|
0.8
|
%
|
14,388
|
0.6
|
%
|
||||||||||
General and administrative expenses (including non-cash stock-based compensation expense and integration, transaction-related and EMR roll-out costs)
|
$
|
178,829
|
5.9
|
%
|
$
|
148,327
|
5.7
|
%
|
(dollars in thousands, except average monthly revenue per unit)
|
Years Ended
December 31,
|
Increase
(Decrease) |
||||||||||||||
2011
|
2010
|
Amount
|
Percent
|
|||||||||||||
Statement of Operations Data:
|
||||||||||||||||
Revenue
|
||||||||||||||||
Resident fees
|
||||||||||||||||
Retirement Centers
|
$
|
473,842
|
$
|
463,260
|
$
|
10,582
|
2.3
|
%
|
||||||||
Assisted Living
|
964,585
|
945,469
|
19,116
|
2.0
|
%
|
|||||||||||
CCRCs – Rental
|
364,095
|
339,920
|
24,175
|
7.1
|
%
|
|||||||||||
CCRCs – Entry Fee
|
283,455
|
269,056
|
14,399
|
5.4
|
%
|
|||||||||||
ISC
|
205,780
|
189,968
|
15,812
|
8.3
|
%
|
|||||||||||
Total resident fees
|
2,291,757
|
2,207,673
|
84,084
|
3.8
|
%
|
|||||||||||
Management services(1)
|
166,161
|
72,862
|
93,299
|
128.0
|
%
|
|||||||||||
Total revenue
|
2,457,918
|
2,280,535
|
177,383
|
7.8
|
%
|
|||||||||||
Expense
|
||||||||||||||||
Facility operating expense
|
||||||||||||||||
Retirement Centers
|
275,403
|
266,613
|
8,790
|
3.3
|
%
|
|||||||||||
Assisted Living
|
624,657
|
614,249
|
10,408
|
1.7
|
%
|
|||||||||||
CCRCs - Rental
|
247,246
|
230,991
|
16,255
|
7.0
|
%
|
|||||||||||
CCRCs - Entry Fee
|
213,470
|
202,971
|
10,499
|
5.2
|
%
|
|||||||||||
ISC
|
147,795
|
123,106
|
24,689
|
20.1
|
%
|
|||||||||||
Total facility operating expense
|
1,508,571
|
1,437,930
|
70,641
|
4.9
|
%
|
|||||||||||
General and administrative expense
|
148,327
|
131,709
|
16,618
|
12.6
|
%
|
|||||||||||
Facility lease expense
|
274,858
|
270,905
|
3,953
|
1.5
|
%
|
|||||||||||
Depreciation and amortization
|
268,506
|
292,341
|
(23,835
|
)
|
(8.2
|
%)
|
||||||||||
Gain on sale of communities, net
|
—
|
(3,298
|
)
|
3,298
|
100.0
|
%
|
||||||||||
Asset impairment
|
16,892
|
13,075
|
3,817
|
29.2
|
%
|
|||||||||||
Gain on acquisition
|
(1,982
|
)
|
―
|
1,982
|
100.0
|
%
|
||||||||||
Facility lease termination expense
|
—
|
4,608
|
(4,608
|
)
|
(100.0
|
%)
|
Costs incurred on behalf of managed communities
|
152,566
|
67,271
|
85,295
|
126.8
|
%
|
|||||||||||
Total operating expense
|
2,367,738
|
2,214,541
|
153,197
|
6.9
|
%
|
|||||||||||
Income from operations
|
90,180
|
65,994
|
24,186
|
36.6
|
%
|
|||||||||||
Interest income
|
3,538
|
2,238
|
1,300
|
58.1
|
%
|
|||||||||||
Interest expense:
|
||||||||||||||||
Debt
|
(124,873
|
)
|
(132,641
|
)
|
(7,768
|
)
|
(5.9
|
%)
|
||||||||
Amortization of deferred financing costs and debt discount
|
(13,427
|
)
|
(8,963
|
)
|
4,464
|
49.8
|
%
|
|||||||||
Change in fair value of derivatives and amortization
|
(3,878
|
)
|
(4,118
|
)
|
(240
|
)
|
(5.8
|
%)
|
||||||||
Loss on extinguishment of debt, net
|
(18,863
|
)
|
(1,557
|
)
|
17,306
|
NM
|
||||||||||
Equity in earnings of unconsolidated ventures
|
1,432
|
168
|
1,264
|
752.4
|
%
|
|||||||||||
Other non-operating income (expense)
|
56
|
(1,454
|
)
|
1,510
|
103.9
|
%
|
||||||||||
Loss before income taxes
|
(65,835
|
)
|
(80,333
|
)
|
(14,498
|
)
|
(18.0
|
%)
|
||||||||
(Provision) benefit for income taxes
|
(2,340
|
)
|
31,432
|
(33,772
|
)
|
(107.4
|
%)
|
|||||||||
Net loss
|
$
|
(68,175
|
)
|
$
|
(48,901
|
)
|
$
|
19,274
|
39.4
|
%
|
||||||
Selected Operating and Other Data:
|
||||||||||||||||
Total number of communities (period end)
|
647
|
559
|
88
|
15.7
|
%
|
|||||||||||
Total units operated(2)
|
||||||||||||||||
Period end
|
66,183
|
50,521
|
15,662
|
31.0
|
%
|
|||||||||||
Weighted average
|
55,548
|
50,870
|
4,678
|
9.2
|
%
|
|||||||||||
Owned/leased communities units(2)
|
||||||||||||||||
Period end
|
47,895
|
46,735
|
1,160
|
2.5
|
%
|
|||||||||||
Weighted average
|
46,912
|
47,083
|
(171
|
)
|
(0.4
|
%)
|
||||||||||
Owned/leased communities occupancy rate (weighted average)
|
87.3
|
%
|
87.1
|
%
|
0.2
|
%
|
0.2
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
4,193
|
$
|
4,053
|
$
|
140
|
3.5
|
%
|
||||||||
Selected Segment Operating and Other Data:
|
||||||||||||||||
Retirement Centers
|
||||||||||||||||
Number of communities (period end)
|
76
|
75
|
1
|
1.3
|
%
|
|||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
14,468
|
14,104
|
364
|
2.6
|
%
|
|||||||||||
Weighted average
|
14,188
|
14,277
|
(89
|
)
|
(0.6
|
%)
|
||||||||||
Occupancy rate (weighted average)
|
88.0
|
%
|
87.3
|
%
|
0.7
|
%
|
0.8
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
3,163
|
$
|
3,096
|
$
|
67
|
2.2
|
%
|
||||||||
Assisted Living
|
||||||||||||||||
Number of communities (period end)
|
434
|
429
|
5
|
1.2
|
%
|
|||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
21,630
|
21,277
|
353
|
1.7
|
%
|
|||||||||||
Weighted average
|
21,323
|
21,445
|
(122
|
)
|
(0.6
|
%)
|
||||||||||
Occupancy rate (weighted average)
|
88.2
|
%
|
88.2
|
%
|
―
|
―
|
||||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
4,275
|
$
|
4,163
|
$
|
112
|
2.7
|
%
|
||||||||
CCRCs - Rental
|
||||||||||||||||
Number of communities (period end)
|
26
|
22
|
4
|
18.2
|
%
|
|||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
6,634
|
6,212
|
422
|
6.8
|
%
|
|||||||||||
Weighted average
|
6,253
|
6,215
|
38
|
0.6
|
%
|
|||||||||||
Occupancy rate (weighted average)
|
86.5
|
%
|
86.2
|
%
|
0.3
|
%
|
0.3
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
5,612
|
$
|
5,276
|
$
|
336
|
6.4
|
%
|
||||||||
CCRCs - Entry Fee
|
||||||||||||||||
Number of communities (period end)
|
14
|
14
|
―
|
―
|
||||||||||||
Total units(2)
|
Period end
|
5,163
|
5,142
|
21
|
0.4
|
%
|
|||||||||||
Weighted average
|
5,148
|
5,146
|
2
|
―
|
||||||||||||
Occupancy rate (weighted average)
|
82.7
|
%
|
82.3
|
%
|
0.4
|
%
|
0.5
|
%
|
||||||||
Senior Housing average monthly revenue per unit(3)
|
$
|
5,052
|
$
|
4,830
|
$
|
222
|
4.6
|
%
|
||||||||
Other Entry Fee Data
|
||||||||||||||||
Non-refundable entrance fees sales
|
$
|
38,378
|
$
|
37,486
|
$
|
892
|
2.4
|
%
|
||||||||
Refundable entrance fees sales(4)
|
29,611
|
36,420
|
(6,809
|
)
|
(18.7
|
%)
|
||||||||||
Total entrance fee receipts
|
67,989
|
73,906
|
(5,917
|
)
|
(8.0
|
%)
|
||||||||||
Refunds
|
(25,754
|
)
|
(21,060
|
)
|
4,694
|
22.3
|
%
|
|||||||||
Net entrance fees(5)
|
$
|
42,235
|
$
|
52,846
|
$
|
(10,611
|
)
|
(20.1
|
%)
|
|||||||
|
||||||||||||||||
Management Services
|
||||||||||||||||
Number of communities (period end)
|
97
|
19
|
78
|
410.5
|
%
|
|||||||||||
Total units(2)
|
||||||||||||||||
Period end
|
18,288
|
3,786
|
14,502
|
383.0
|
%
|
|||||||||||
Weighted average
|
8,636
|
3,787
|
4,849
|
128.0
|
%
|
|||||||||||
Occupancy rate (weighted average)
|
84.5
|
%
|
83.8
|
%
|
0.7
|
%
|
0.8
|
%
|
||||||||
|
||||||||||||||||
ISC
|
||||||||||||||||
Outpatient Therapy treatment codes
|
3,349,854
|
3,255,850
|
94,004
|
2.9
|
%
|
|||||||||||
Home Health average census
|
3,330
|
2,420
|
910
|
37.6
|
%
|
(1) | Management services segment revenue includes reimbursements for which we are the primary obligor of costs incurred on behalf of managed communities. |
(2) | Period end units operated excludes equity homes. Weighted average units operated represents the average units operated during the period, excluding equity homes. |
(3) | Senior Housing average monthly revenue per unit represents the average of the total monthly resident fee revenues, excluding amortization of entrance fees and ISC segment revenue, divided by average occupied units. |
(4) | Refundable entrance fee sales for the years ended December 31, 2011 and 2010 include amounts received from residents participating in the MyChoice program, which allows new and existing residents the option to pay additional refundable entrance fee amounts in return for a reduced monthly service fee. MyChoice amounts received from residents totaled $9.0 million and $10.6 million for the years ended December 31, 2011 and 2010. |
(5) | Includes $12.6 million and $18.5 million of first generation net entrance fee receipts (which represent initial entrance fees received from the sale of units, net of first generation entrance fee refunds not replaced by second generation entrance fee receipts, at a recently opened entrance fee CCRC) during the year ended December 31, 2011 and 2010, respectively. |
Year Ended December 31,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Resident fee revenues
|
$
|
2,291,757
|
88.3
|
%
|
$
|
2,207,673
|
94.1
|
%
|
||||||||
Resident fee revenues under management
|
304,717
|
11.7
|
%
|
139,478
|
5.9
|
%
|
||||||||||
Total
|
$
|
2,596,474
|
100
|
%
|
$
|
2,347,151
|
100
|
%
|
||||||||
General and administrative expenses (excluding non-cash stock-based compensation expense and integration and transaction-related costs)
|
$
|
114,083
|
4.4
|
%
|
$
|
110,950
|
4.7
|
%
|
||||||||
Non-cash stock-based compensation expense
|
19,856
|
0.8
|
%
|
20,759
|
0.9
|
%
|
||||||||||
Integration and transaction-related costs
|
14,388
|
0.5
|
%
|
―
|
0.0
|
%
|
||||||||||
General and administrative expenses (including non-cash stock-based compensation expense and integration and transaction-related costs)
|
$
|
148,327
|
5.7
|
%
|
$
|
131,709
|
5.6
|
%
|
Year Ended
December 31, |
||||||||
2012
|
2011
|
|||||||
Cash provided by operating activities
|
$
|
290,969
|
$
|
268,427
|
||||
Cash used in investing activities
|
(455,334
|
)
|
(203,899
|
)
|
||||
Cash provided by (used in) financing activities
|
202,769
|
(115,519
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
38,404
|
(50,991
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
30,836
|
81,827
|
||||||
Cash and cash equivalents at end of year
|
$
|
69,240
|
$
|
30,836
|
· | cash balances on hand; |
· | cash flows from operations; |
· | proceeds from our credit facilities; |
· | proceeds from mortgage financing or refinancing of various assets; |
· | funds generated through joint venture arrangements or sale-leaseback transactions; and |
· | with somewhat lesser frequency, funds raised in the debt or equity markets and proceeds from the selective disposition of underperforming and/or non-core assets. |
· | working capital; |
· | operating costs such as employee compensation and related benefits, general and administrative expense and supply costs; |
· | debt service and lease payments; |
· | acquisition consideration and transaction costs; |
· | cash collateral required to be posted in connection with our interest rate swaps and related financial instruments; |
· | capital expenditures and improvements, including the expansion of our current communities and the development of new communities; |
· | dividend payments; |
· | purchases of common stock under our share repurchase authorizations; and |
· | other corporate initiatives (including integration and branding). |
· | working capital; |
· | operating costs such as employee compensation and related benefits, general and administrative expense and supply costs; |
· | debt service and lease payments; |
· | capital expenditures and improvements, including the expansion, redevelopment and repositioning of our current communities and the development of new communities; |
· | other corporate initiatives (including information systems and branding); |
·
|
acquisition consideration and transaction costs; and
|
·
|
purchases of common stock under our share repurchase authorization.
|
Payments Due by Twelve Months Ending December 31,
|
||||||||||||||||||||||||||||
Total
|
2013
|
2014
|
2015
|
2016
|
2017
|
Thereafter
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||
Contractual Obligations:
|
||||||||||||||||||||||||||||
Long-term debt obligations(1)
|
$
|
2,883,406
|
$
|
579,272
|
$
|
251,953
|
$
|
126,911
|
$
|
194,803
|
$
|
396,680
|
$
|
1,333,787
|
||||||||||||||
Capital lease obligations(1)
|
483,150
|
55,828
|
55,065
|
53,401
|
46,957
|
60,494
|
211,405
|
|||||||||||||||||||||
Operating lease obligations(2)
|
1,978,916
|
277,684
|
268,164
|
259,624
|
256,463
|
232,445
|
684,536
|
|||||||||||||||||||||
Refundable entrance fee obligations(3)
|
260,895
|
28,745
|
28,745
|
28,745
|
28,745
|
28,745
|
117,170
|
|||||||||||||||||||||
Total contractual obligations
|
$
|
5,606,367
|
$
|
941,529
|
$
|
603,927
|
$
|
468,681
|
$
|
526,968
|
$
|
718,364
|
$
|
2,346,898
|
||||||||||||||
|
||||||||||||||||||||||||||||
Total commercial construction commitments
|
$
|
41,480
|
$
|
41,480
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
(1) | Includes contractual interest for all fixed-rate obligations and assumes interest on variable rate instruments at the December 31, 2012 rate after giving effect to in-place interest rate swaps. |
(2) | Reflects future cash payments after giving effect to non-contingent lease escalators and assumes payments on variable rate instruments at the December 31, 2012 rate. |
(3) | Future refunds of entrance fees are estimated based on historical payment trends. These refund obligations are generally offset by proceeds received from resale of the vacated apartment units. Historically, proceeds from resales of entrance fee units each year generally offset refunds paid and generate excess cash to us. |
Current notional balance
|
$
|
27,373
|
||
Highest possible notional
|
$
|
27,373
|
||
Lowest interest rate
|
5.49
|
%
|
||
Highest interest rate
|
5.49
|
%
|
||
Average fixed rate
|
5.49
|
%
|
||
Earliest maturity date
|
2016
|
|||
Latest maturity date
|
2016
|
|||
Weighted average original maturity
|
5.0 years
|
|||
Estimated liability fair value (included in other liabilities at December 31, 2012)
|
$
|
(1,833
|
)
|
|
Estimated liability fair value (included in other liabilities at December 31, 2011)
|
$
|
(2,809
|
)
|
Current notional balance
|
$
|
589,568
|
||
Highest possible notional
|
$
|
589,568
|
||
Lowest interest cap rate
|
5.00
|
%
|
||
Highest interest cap rate
|
6.06
|
%
|
||
Average fixed cap rate
|
5.43
|
%
|
||
Earliest maturity date
|
2013
|
|||
Latest maturity date
|
2018
|
|||
Weighted average original maturity
|
3.5 years
|
|||
Estimated asset fair value (included in other assets at December 31, 2012)
|
$
|
495
|
||
Estimated asset fair value (included in other assets at December 31, 2011)
|
$
|
—
|
· | provision (benefit) for income taxes; |
· | non-operating (income) expense items; |
·
|
(gain) loss on sale or acquisition of communities (including gain (loss) on facility lease termination);
|
· | depreciation and amortization (including non-cash impairment charges); |
· | straight-line lease expense (income); |
· | amortization of deferred gain; |
· | amortization of deferred entrance fees; |
· | non-cash stock-based compensation expense; and |
·
|
change in future service obligation;
|
· | entrance fee receipts and refunds (excluding (i) first generation entrance fee receipts from the sale of units at a recently opened entrance fee CCRC prior to stabilization and (ii) first generation entrance fee refunds not replaced by second generation entrance fee receipts at the recently opened community prior to stabilization). |
· | the cash portion of interest expense, income tax (benefit) provision and non-recurring charges related to gain (loss) on sale of communities and extinguishment of debt activities generally represent charges (gains), which may significantly affect our financial results; and |
· | depreciation and amortization, though not directly affecting our current cash position, represent the wear and tear and/or reduction in value of our communities, which affects the services we provide to our residents and may be indicative of future needs for capital expenditures. |
Years Ended December 31(1),
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net loss
|
$
|
(65,645
|
)
|
$
|
(68,175
|
)
|
$
|
(48,901
|
)
|
|||
Provision (benefit) for income taxes
|
2,044
|
2,340
|
(31,432
|
)
|
||||||||
Other non-operating (income) expense
|
(593
|
)
|
(56
|
)
|
1,454
|
|||||||
Equity in loss (earnings) of unconsolidated ventures
|
3,488
|
(1,432
|
)
|
(168
|
)
|
|||||||
Loss on extinguishment of debt, net
|
221
|
18,863
|
1,557
|
|||||||||
Interest expense: | ||||||||||||
Debt
|
98,183
|
93,229
|
102,245
|
|||||||||
Capitalized lease obligation
|
30,155
|
31,644
|
30,396
|
|||||||||
Amortization of deferred financing costs and debt discount
|
18,081
|
13,427
|
8,963
|
|||||||||
Change in fair value of derivatives and amortization
|
364
|
3,878
|
4,118
|
|||||||||
Interest income
|
(4,012
|
)
|
(3,538
|
)
|
(2,238
|
)
|
||||||
Income from operations
|
82,286
|
90,180
|
65,994
|
|||||||||
(Gain) loss on facility lease termination
|
(11,584
|
)
|
—
|
4,608
|
||||||||
Loss on sale of communities, net
|
—
|
—
|
(3,298
|
)
|
||||||||
Loss (gain) on acquisition
|
636
|
(1,982
|
)
|
—
|
||||||||
Depreciation and amortization
|
252,281
|
268,506
|
292,341
|
|||||||||
Asset impairment
|
27,677
|
16,892
|
13,075
|
|||||||||
Straight-line lease expense
|
6,668
|
8,608
|
10,521
|
|||||||||
Amortization of deferred gain
|
(4,372
|
)
|
(4,373
|
)
|
(4,343
|
)
|
||||||
Amortization of entrance fees
|
(26,709
|
)
|
(25,401
|
)
|
(24,397
|
)
|
||||||
Non-cash stock-based compensation expense
|
25,520
|
19,856
|
20,759
|
|||||||||
Change in future service obligation
|
2,188
|
—
|
(1,064
|
)
|
||||||||
Entrance fee receipts(2)
|
82,705
|
67,989
|
73,906
|
|||||||||
First generation entrance fees received(3)
|
—
|
(12,617
|
)
|
(18,548
|
)
|
|||||||
Entrance fee disbursements(4)
|
(27,356
|
)
|
(24,993
|
)
|
(21,060
|
)
|
||||||
Adjusted EBITDA
|
$
|
409,940
|
$
|
402,665
|
$
|
408,494
|
(1) | The calculation of Adjusted EBITDA includes integration, transaction-related and EMR roll-out costs of $23.5 million and $14.4 million for the years ended December 31, 2012 and 2011, respectively. There were no such costs in 2010. |
(2) | Includes the receipt of refundable and non-refundable entrance fees. |
(3) | First generation entrance fees received represents initial entrance fees received from the sale of units at a recently opened entrance fee CCRC prior to stabilization. |
(4) | Entrance fee refunds disbursed excludes $0.8 million of first generation entrance fee refunds not replaced by second generation entrance fee receipts at a recently opened entrance fee CCRC prior to stabilization for the year ended December 31, 2011. |
· | changes in operating assets and liabilities; |
· | deferred interest and fees added to principal; |
· | refundable entrance fees received; |
· | first generation entrance fee receipts at a recently opened entrance fee CCRC prior to stabilization; |
· | entrance fee refunds disbursed adjusted for first generation entrance fee refunds not replaced by second generation entrance fee receipts at the recently opened community prior to stabilization; |
· | lease financing debt amortization with fair market value or no purchase options; |
· | gain (loss) on facility lease termination; |
· | recurring capital expenditures, net; |
· | distributions from unconsolidated ventures from cumulative share of net earnings; |
· | CFFO from unconsolidated ventures; and |
· | other. |
· | the cash portion of interest expense, income tax (benefit) provision and non-recurring charges related to gain (loss) on sale of communities and extinguishment of debt activities generally represent charges (gains), which may significantly affect our financial results; and |
· | depreciation and amortization, though not directly affecting our current cash position, represent the wear and tear and/or reduction in value of our communities, which affects the services we provide to our residents and may be indicative of future needs for capital expenditures. |
|
Years Ended December 31(1),
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Net cash provided by operating activities
|
$
|
290,969
|
$
|
268,427
|
$
|
228,244
|
||||||
Changes in operating assets and liabilities
|
(20,698
|
)
|
20,914
|
46,674
|
||||||||
Refundable entrance fees received (2)(3)
|
42,600
|
29,611
|
36,420
|
|||||||||
First generation entrance fees received(4)
|
—
|
(12,617
|
)
|
(18,548
|
)
|
|||||||
Entrance fee refunds disbursed(5)
|
(27,356
|
)
|
(24,993
|
)
|
(21,060
|
)
|
||||||
Recurring capital expenditures, net
|
(38,306
|
)
|
(33,661
|
)
|
(27,969
|
)
|
||||||
Lease financing debt amortization with fair market value or no purchase options
|
(12,120
|
)
|
(10,465
|
)
|
(8,972
|
)
|
||||||
Loss on facility lease termination
|
—
|
—
|
4,608
|
|||||||||
Distributions from unconsolidated ventures from cumulative share of net earnings
|
(1,507
|
)
|
(582
|
)
|
(775
|
)
|
||||||
CFFO from unconsolidated ventures
|
5,376
|
3,289
|
2,050
|
|||||||||
Cash From Facility Operations
|
$
|
238,958
|
$
|
239,923
|
$
|
240,672
|
(1) | The calculation of Cash From Facility Operations includes integration, transaction-related and EMR roll-out costs of $23.5 million and $14.4 million for the years ended December 31, 2012 and 2011, respectively. There were no such costs in 2010. |
(2) | Entrance fee receipts include promissory notes issued to the Company by the resident in lieu of a portion of the entrance fees due. Notes issued (net of collections) for the years ended December 31, 2012, 2011 and 2010 were $0.2 million, $3.3 million and $1.7 million, respectively. |
(3) | Total entrance fee receipts for the year ended December 31, 2012, 2011 and 2010 were $82.7 million, $68.0 million, and $73.9 million, respectively, including $40.1 million, $38.4 million and $37.5 million, respectively, of non-refundable entrance fee receipts included in net cash provided by operating activities. |
(4) | First generation entrance fees received represents initial entrance fees received from the sale of units at a recently opened entrance fee CCRC prior to stabilization. |
(5) | Entrance fee refunds disbursed excludes $0.8 million of first generation entrance fee refunds not replaced by second generation entrance fee receipts at a recently opened entrance fee CCRC prior to stabilization for the year ended December 31, 2011. |
· | provision (benefit) for income taxes; |
· | non-operating (income) expense items; |
·
|
(gain) loss on sale or acquisition of communities (including gain (loss) on facility lease termination);
|
· | depreciation and amortization (including non-cash impairment charges); |
· | facility lease expense; |
· | general and administrative expense, including non-cash stock-based compensation expense; |
·
|
change in future service obligation;
|
· | amortization of deferred entrance fee revenue; and |
· | management fees. |
· | interest expense, income tax (benefit) provision and non-recurring charges related to gain (loss) on sale of communities and extinguishment of debt activities generally represent charges (gains), which may significantly affect our financial results; and |
· | depreciation and amortization, though not directly affecting our current cash position, represent the wear and tear and/or reduction in value of our communities, which affects the services we provide to our residents and may be indicative of future needs for capital expenditures. |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net loss
|
$
|
(65,645
|
)
|
$
|
(68,175
|
)
|
$
|
(48,901
|
)
|
|||
Provision (benefit) for income taxes
|
2,044
|
2,340
|
(31,432
|
)
|
||||||||
Other non-operating (income) expense
|
(593
|
)
|
(56
|
)
|
1,454
|
|||||||
Equity in loss (earnings) of unconsolidated ventures
|
3,488
|
(1,432
|
)
|
(168
|
)
|
|||||||
Loss on extinguishment of debt, net
|
221
|
18,863
|
1,557
|
|||||||||
Interest expense:
|
||||||||||||
Debt
|
98,183
|
93,229
|
102,245
|
|||||||||
Capitalized lease obligation
|
30,155
|
31,644
|
30,396
|
|||||||||
Amortization of deferred financing costs and debt discount
|
18,081
|
13,427
|
8,963
|
|||||||||
Change in fair value of derivatives and amortization
|
364
|
3,878
|
4,118
|
|||||||||
Interest income
|
(4,012
|
)
|
(3,538
|
)
|
(2,238
|
)
|
||||||
Income from operations
|
82,286
|
90,180
|
65,994
|
|||||||||
(Gain) loss on facility lease termination
|
(11,584
|
)
|
—
|
4,608
|
||||||||
Loss on sale of communities, net
|
—
|
—
|
(3,298
|
)
|
||||||||
Depreciation and amortization
|
252,281
|
268,506
|
292,341
|
|||||||||
Asset impairment
|
27,677
|
16,892
|
13,075
|
|||||||||
Loss (gain) on acquisition
|
636
|
(1,982
|
)
|
—
|
||||||||
Facility lease expense
|
284,025
|
274,858
|
270,905
|
|||||||||
General and administrative (including non-cash stock-based compensation expense)
|
178,829
|
148,327
|
131,709
|
|||||||||
Change in future service obligation
|
2,188
|
—
|
(1,064
|
)
|
||||||||
Amortization of entrance fees
|
(26,709
|
)
|
(25,401
|
)
|
(24,397
|
)
|
||||||
Management fees
|
(30,786
|
)
|
(13,595
|
)
|
(5,591
|
)
|
||||||
Facility Operating Income
|
$
|
758,843
|
$
|
757,785
|
$
|
744,282
|
PAGE
|
|
Report of Independent Registered Public Accounting Firm
|
72
|
Report of Independent Registered Public Accounting Firm
|
73
|
Consolidated Balance Sheets as of December 31, 2012 and 2011
|
74
|
Consolidated Statements of Operations for the Years Ended December 31, 2012, 2011 and 2010
|
75
|
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2012, 2011 and 2010
|
76
|
Consolidated Statements of Equity for the Years Ended December 31, 2012, 2011 and 2010
|
77
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2012, 2011 and 2010
|
78
|
Notes to Consolidated Financial Statements
|
79
|
Schedule II — Valuation and Qualifying Accounts
|
111
|
|
/s/ Ernst & Young LLP
|
|
/s/ Ernst & Young LLP
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
69,240
|
$
|
30,836
|
||||
Cash and escrow deposits – restricted
|
43,096
|
45,903
|
||||||
Accounts receivable, net
|
100,401
|
98,697
|
||||||
Deferred tax asset
|
13,377
|
11,776
|
||||||
Prepaid expenses and other current assets, net
|
82,924
|
93,663
|
||||||
Total current assets
|
309,038
|
280,875
|
||||||
Property, plant and equipment and leasehold intangibles, net
|
3,879,977
|
3,694,064
|
||||||
Cash and escrow deposits – restricted
|
62,767
|
52,980
|
||||||
Marketable securities — restricted
|
—
|
31,721
|
||||||
Investment in unconsolidated ventures
|
31,386
|
32,798
|
||||||
Goodwill
|
109,553
|
109,553
|
||||||
Other intangible assets, net
|
159,942
|
154,136
|
||||||
Other assets, net
|
113,315
|
109,934
|
||||||
Total assets
|
$
|
4,665,978
|
$
|
4,466,061
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
$
|
509,543
|
$
|
47,654
|
||||
Trade accounts payable
|
43,184
|
54,134
|
||||||
Accrued expenses
|
200,895
|
183,634
|
||||||
Refundable entrance fees and deferred revenue
|
361,360
|
327,808
|
||||||
Tenant security deposits
|
6,521
|
7,720
|
||||||
Total current liabilities
|
1,121,503
|
620,950
|
||||||
Long-term debt, less current portion
|
2,089,826
|
2,350,971
|
||||||
Line of credit
|
80,000
|
65,000
|
||||||
Deferred entrance fee revenue
|
79,010
|
72,485
|
||||||
Deferred liabilities
|
150,788
|
161,185
|
||||||
Deferred tax liability
|
99,851
|
112,736
|
||||||
Other liabilities
|
42,283
|
42,526
|
||||||
Total liabilities
|
3,663,261
|
3,425,853
|
||||||
|
||||||||
Stockholders' Equity
|
||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized at December 31, 2012 and 2011; no shares issued and outstanding
|
—
|
—
|
||||||
Common stock, $0.01 par value, 200,000,000 shares authorized at December 31, 2012 and 2011; 129,117,946 and 127,782,538 shares issued and 126,689,545 and 125,354,137 shares outstanding (including 3,951,950 and 4,221,598 unvested restricted shares), respectively
|
1,267
|
1,254
|
||||||
Additional paid-in-capital
|
1,997,946
|
1,970,820
|
||||||
Treasury stock, at cost; 2,428,401 shares at December 31, 2012 and 2011
|
(46,800
|
)
|
(46,800
|
)
|
||||
Accumulated deficit
|
(949,696
|
)
|
(884,051
|
)
|
||||
Accumulated other comprehensive loss
|
—
|
(1,015
|
)
|
|||||
Total stockholders' equity
|
1,002,717
|
1,040,208
|
||||||
Total liabilities and stockholders' equity
|
$
|
4,665,978
|
$
|
4,466,061
|
|
For the Years Ended
December 31, |
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Revenue
|
||||||||||||
Resident fees
|
$
|
2,414,283
|
$
|
2,291,757
|
$
|
2,207,673
|
||||||
Management fees
|
30,786
|
13,595
|
5,591
|
|||||||||
Reimbursed costs incurred on behalf of managed communities
|
325,016
|
152,566
|
67,271
|
|||||||||
Total revenue
|
2,770,085
|
2,457,918
|
2,280,535
|
|||||||||
Expense
|
||||||||||||
Facility operating expense (excluding depreciation and amortization of $229,072, $230,414 and $242,050, respectively)
|
1,630,919
|
1,508,571
|
1,437,930
|
|||||||||
General and administrative expense (including non-cash stock-based compensation expense of $25,520, $19,856 and $20,759 , respectively)
|
178,829
|
148,327
|
131,709
|
|||||||||
Facility lease expense
|
284,025
|
274,858
|
270,905
|
|||||||||
Depreciation and amortization
|
252,281
|
268,506
|
292,341
|
|||||||||
Gain on sale of communities, net
|
—
|
—
|
(3,298
|
)
|
||||||||
Asset impairment
|
27,677
|
16,892
|
13,075
|
|||||||||
Loss (gain) on acquisition
|
636
|
(1,982
|
)
|
—
|
||||||||
Costs incurred on behalf of managed communities
|
325,016
|
152,566
|
67,271
|
|||||||||
(Gain) loss on facility lease termination
|
(11,584
|
)
|
—
|
4,608
|
||||||||
Total operating expense
|
2,687,799
|
2,367,738
|
2,214,541
|
|||||||||
Income from operations
|
82,286
|
90,180
|
65,994
|
|||||||||
|
||||||||||||
Interest income
|
4,012
|
3,538
|
2,238
|
|||||||||
Interest expense:
|
||||||||||||
Debt
|
(128,338
|
)
|
(124,873
|
)
|
(132,641
|
)
|
||||||
Amortization of deferred financing costs and debt discount
|
(18,081
|
)
|
(13,427
|
)
|
(8,963
|
)
|
||||||
Change in fair value of derivatives and amortization
|
(364
|
)
|
(3,878
|
)
|
(4,118
|
)
|
||||||
Loss on extinguishment of debt, net
|
(221
|
)
|
(18,863
|
)
|
(1,557
|
)
|
||||||
Equity in (loss) earnings of unconsolidated ventures
|
(3,488
|
)
|
1,432
|
168
|
||||||||
Other non-operating income (expense)
|
593
|
56
|
(1,454
|
)
|
||||||||
Loss before income taxes
|
(63,601
|
)
|
(65,835
|
)
|
(80,333
|
)
|
||||||
(Provision) benefit for income taxes
|
(2,044
|
)
|
(2,340
|
)
|
31,432
|
|||||||
Net loss
|
$
|
(65,645
|
)
|
$
|
(68,175
|
)
|
$
|
(48,901
|
)
|
|||
Basic and diluted net loss per share
|
$
|
(0.54
|
)
|
$
|
(0.56
|
)
|
$
|
(0.41
|
)
|
|||
Weighted average shares used in computing basic and diluted net loss per share
|
121,991
|
121,161
|
120,010
|
|
For the Years Ended
December 31, |
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
|
||||||||||||
Net loss
|
$
|
(65,645
|
)
|
$
|
(68,175
|
)
|
$
|
(48,901
|
)
|
|||
Other comprehensive income (loss):
|
||||||||||||
Unrealized gain (loss) on marketable securities - restricted
|
1,846
|
(998
|
)
|
—
|
||||||||
Reclassification of realized gain on marketable securities – restricted into earnings
|
(848
|
)
|
—
|
—
|
||||||||
Reclassification of net (gains) loss on derivatives into earnings
|
(79
|
)
|
134
|
505
|
||||||||
Amortization of payments from settlement of forward interest rate swaps
|
179
|
376
|
376
|
|||||||||
Other
|
(83
|
)
|
(200
|
)
|
(343
|
)
|
||||||
Total other comprehensive income (loss), net of tax
|
1,015
|
(688
|
)
|
538
|
||||||||
Comprehensive loss
|
$
|
(64,630
|
)
|
$
|
(68,863
|
)
|
$
|
(48,363
|
)
|
|
Common Stock
|
|||||||||||||||||||||||||||
|
Shares
|
Amount
|
Additional
Paid-In-
Capital
|
Treasury
Stock
|
Accumulated
Deficit
|
Accumulated
Other
Comprehensive
Loss
|
Total
|
|||||||||||||||||||||
Balances at January 1, 2010
|
123,206
|
$
|
1,232
|
$
|
1,882,377
|
$
|
(29,187
|
)
|
$
|
(766,975
|
)
|
$
|
(865
|
)
|
$
|
1,086,582
|
||||||||||||
Compensation expense related to restricted stock grants
|
—
|
—
|
20,759
|
—
|
—
|
—
|
20,759
|
|||||||||||||||||||||
Net loss
|
—
|
—
|
—
|
—
|
(48,901
|
)
|
—
|
(48,901
|
)
|
|||||||||||||||||||
Issuance of common stock under Associate Stock Purchase Plan
|
63
|
1
|
1,019
|
—
|
—
|
—
|
1,020
|
|||||||||||||||||||||
Restricted stock, net
|
1,048
|
10
|
(10
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Reclassification of net loss on derivatives into earnings
|
—
|
—
|
—
|
—
|
—
|
505
|
505
|
|||||||||||||||||||||
Amortization of payments from settlement of forward interest rate swaps
|
—
|
—
|
—
|
—
|
—
|
376
|
376
|
|||||||||||||||||||||
Other
|
—
|
—
|
(1
|
)
|
—
|
—
|
(343
|
)
|
(344
|
)
|
||||||||||||||||||
Balances at December 31, 2010
|
124,317
|
1,243
|
1,904,144
|
(29,187
|
)
|
(815,876
|
)
|
(327
|
)
|
1,059,997
|
||||||||||||||||||
Compensation expense related to restricted stock grants
|
—
|
—
|
19,856
|
—
|
—
|
—
|
19,856
|
|||||||||||||||||||||
Net loss
|
—
|
—
|
—
|
—
|
(68,175
|
)
|
—
|
(68,175
|
)
|
|||||||||||||||||||
Common stock issued in connection with an acquisition
|
97
|
1
|
1,537
|
—
|
—
|
—
|
1,538
|
|||||||||||||||||||||
Equity component of convertible notes, net
|
—
|
—
|
76,801
|
—
|
—
|
—
|
76,801
|
|||||||||||||||||||||
Purchase of bond hedge
|
—
|
—
|
(77,007
|
)
|
—
|
—
|
—
|
(77,007
|
)
|
|||||||||||||||||||
Issuance of warrants
|
—
|
—
|
45,066
|
—
|
—
|
—
|
45,066
|
|||||||||||||||||||||
Issuance of common stock under Associate Stock Purchase Plan
|
68
|
—
|
1,258
|
—
|
—
|
—
|
1,258
|
|||||||||||||||||||||
Restricted stock, net
|
2,089
|
10
|
(10
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Unrealized loss on marketable securities - restricted
|
—
|
—
|
—
|
—
|
—
|
(998
|
)
|
(998
|
)
|
|||||||||||||||||||
Reclassification of net loss on derivatives into earnings
|
—
|
—
|
—
|
—
|
—
|
134
|
134
|
|||||||||||||||||||||
Purchase of treasury stock
|
(1,217
|
)
|
—
|
—
|
(17,613
|
)
|
—
|
—
|
(17,613
|
)
|
||||||||||||||||||
Amortization of payments from settlement of forward interest rate swaps
|
—
|
—
|
—
|
—
|
—
|
376
|
376
|
|||||||||||||||||||||
Other
|
—
|
—
|
(825
|
)
|
—
|
—
|
(200
|
)
|
(1,025
|
)
|
||||||||||||||||||
Balances at December 31, 2011
|
125,354
|
1,254
|
1,970,820
|
(46,800
|
)
|
(884,051
|
)
|
(1,015
|
)
|
1,040,208
|
||||||||||||||||||
Compensation expense related to restricted stock grants
|
—
|
—
|
25,520
|
—
|
—
|
—
|
25,520
|
|||||||||||||||||||||
Net loss
|
—
|
—
|
—
|
—
|
(65,645
|
)
|
—
|
(65,645
|
)
|
|||||||||||||||||||
Issuance of common stock under Associate Stock Purchase Plan
|
74
|
—
|
1,401
|
—
|
—
|
—
|
1,401
|
|||||||||||||||||||||
Restricted stock, net
|
1,261
|
13
|
(100
|
)
|
—
|
—
|
—
|
(87
|
)
|
|||||||||||||||||||
Unrealized gain on marketable securities - restricted
|
—
|
—
|
—
|
—
|
—
|
1,846
|
1,846
|
|||||||||||||||||||||
Reclassification of realized gain on marketable securities – restricted into earnings
|
—
|
—
|
—
|
—
|
—
|
(848
|
)
|
(848
|
)
|
|||||||||||||||||||
Reclassification of net gains on derivatives into earnings
|
—
|
—
|
—
|
—
|
—
|
(79
|
)
|
(79
|
)
|
|||||||||||||||||||
Amortization of payments from settlement of forward interest rate swaps
|
—
|
—
|
—
|
—
|
—
|
179
|
179
|
|||||||||||||||||||||
Other
|
—
|
—
|
305
|
—
|
—
|
(83
|
)
|
222
|
||||||||||||||||||||
Balances at December 31, 2012
|
126,689
|
$
|
1,267
|
$
|
1,997,946
|
$
|
(46,800
|
)
|
$
|
(949,696
|
)
|
$
|
—
|
$
|
1,002,717
|
|
For the Years Ended
December 31, |
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net loss
|
$
|
(65,645
|
)
|
$
|
(68,175
|
)
|
$
|
(48,901
|
)
|
|||
Adjustments to reconcile net loss to net cash provided by
operating activities: |
||||||||||||
Loss on extinguishment of debt
|
221
|
18,863
|
1,557
|
|||||||||
Depreciation and amortization
|
270,362
|
281,933
|
301,304
|
|||||||||
Asset impairment
|
27,677
|
16,892
|
13,075
|
|||||||||
Equity in loss (earnings) of unconsolidated ventures
|
3,488
|
(1,432
|
)
|
(168
|
)
|
|||||||
Distributions from unconsolidated ventures from cumulative share of net earnings
|
1,507
|
1,282
|
775
|
|||||||||
Amortization of deferred gain
|
(4,372
|
)
|
(4,373
|
)
|
(4,343
|
)
|
||||||
Amortization of entrance fees
|
(26,709
|
)
|
(25,401
|
)
|
(24,397
|
)
|
||||||
Proceeds from deferred entrance fee revenue
|
40,105
|
38,378
|
37,486
|
|||||||||
Deferred income tax provision (benefit)
|
—
|
943
|
(33,295
|
)
|
||||||||
Change in deferred lease liability
|
6,668
|
8,608
|
10,521
|
|||||||||
Change in fair value of derivatives and amortization
|
364
|
3,878
|
4,118
|
|||||||||
Loss (gain) on sale of assets and unconsolidated ventures
|
332
|
(1,180
|
)
|
(2,509
|
)
|
|||||||
Loss (gain) on acquisition
|
636
|
(1,982
|
)
|
―
|
||||||||
Gain on facility lease termination
|
(11,584
|
)
|
—
|
—
|
||||||||
Lessor cash reimbursement for tenant incentive
|
—
|
1,251
|
—
|
|||||||||
Change in future service obligation
|
2,188
|
—
|
(1,064
|
)
|
||||||||
Non-cash stock-based compensation
|
25,520
|
19,856
|
20,759
|
|||||||||
Other
|
(487
|
)
|
—
|
—
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable, net
|
(3,415
|
)
|
(5,367
|
)
|
(7,956
|
)
|
||||||
Prepaid expenses and other assets, net
|
8,687
|
(22,934
|
)
|
(22,050
|
)
|
|||||||
Accounts payable and accrued expenses
|
4,854
|
13,721
|
(11,775
|
)
|
||||||||
Tenant refundable fees and security deposits
|
(1,547
|
)
|
(2,186
|
)
|
(3,158
|
)
|
||||||
Deferred revenue
|
12,119
|
(4,148
|
)
|
(1,735
|
)
|
|||||||
Net cash provided by operating activities
|
290,969
|
268,427
|
228,244
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Increase in lease security deposits and lease acquisition deposits, net
|
(7,999
|
)
|
(3,088
|
)
|
(2,175
|
)
|
||||||
(Increase) decrease in cash and escrow deposits – restricted
|
(4,810
|
)
|
56,176
|
4,705
|
||||||||
Purchase of marketable securities — restricted
|
(1,557
|
)
|
(32,724
|
)
|
―
|
|||||||
Sale of marketable securities — restricted
|
35,124
|
1,431
|
―
|
|||||||||
Additions to property, plant and equipment, and leasehold intangibles, net of related payables
|
(208,412
|
)
|
(160,131
|
)
|
(93,681
|
)
|
||||||
Acquisition of assets, net of related payables and cash received
|
(272,523
|
)
|
(88,682
|
)
|
(57,948
|
)
|
||||||
Purchase of Horizon Bay Realty, L.L.C., net of cash acquired
|
―
|
5,516
|
―
|
|||||||||
Payments on notes receivable, net
|
131
|
1,484
|
1,079
|
|||||||||
Investment in unconsolidated ventures
|
(5,368
|
)
|
(13,990
|
)
|
(660
|
)
|
||||||
Distributions received from unconsolidated ventures
|
350
|
206
|
97
|
|||||||||
Proceeds from sale of unconsolidated venture
|
—
|
—
|
675
|
|||||||||
Proceeds from sale of assets, net
|
9,243
|
30,817
|
12,079
|
|||||||||
Other
|
487
|
(914
|
)
|
(676
|
)
|
|||||||
Net cash used in investing activities
|
(455,334
|
)
|
(203,899
|
)
|
(136,505
|
)
|
||||||
Cash Flows from Financing Activities
|
||||||||||||
Proceeds from debt
|
372,291
|
482,669
|
414,795
|
|||||||||
Repayment of debt and capital lease obligations
|
(191,835
|
)
|
(898,565
|
)
|
(476,527
|
)
|
||||||
Proceeds from line of credit
|
375,000
|
225,000
|
60,000
|
|||||||||
Repayment of line of credit
|
(360,000
|
)
|
(160,000
|
)
|
(60,000
|
)
|
||||||
Proceeds from issuance of convertible notes, net
|
―
|
308,212
|
―
|
|||||||||
Issuance of warrants
|
―
|
45,066
|
―
|
|||||||||
Purchase of bond hedge
|
―
|
(77,007
|
)
|
―
|
||||||||
Payment of financing costs, net of related payables
|
(5,563
|
)
|
(8,712
|
)
|
(8,541
|
)
|
||||||
Other
|
(342
|
)
|
(1,287
|
)
|
(763
|
)
|
||||||
Refundable entrance fees:
|
||||||||||||
Proceeds from refundable entrance fees
|
42,600
|
29,611
|
36,420
|
|||||||||
Refunds of entrance fees
|
(27,356
|
)
|
(25,754
|
)
|
(21,060
|
)
|
||||||
Cash portion of loss on extinguishment of debt
|
(118
|
)
|
(17,040
|
)
|
(179
|
)
|
||||||
Recouponing and payment of swap termination
|
(1,908
|
)
|
(99
|
)
|
(20,427
|
)
|
||||||
Purchase of treasury stock
|
―
|
(17,613
|
)
|
―
|
||||||||
Net cash provided by (used in) financing activities
|
202,769
|
(115,519
|
)
|
(76,282
|
)
|
|||||||
Net increase (decrease) in cash and cash equivalents
|
38,404
|
(50,991
|
)
|
15,457
|
||||||||
Cash and cash equivalents at beginning of year
|
30,836
|
81,827
|
66,370
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
69,240
|
$
|
30,836
|
$
|
81,827
|
|
December 31,
|
|||||||
|
2012
|
2011
|
||||||
Current:
|
||||||||
Real estate taxes
|
$
|
11,502
|
$
|
12,541
|
||||
Tenant security deposits
|
2,015
|
4,374
|
||||||
Insurance reserves
|
12,892
|
12,904
|
||||||
Entrance fees
|
4,159
|
4,891
|
||||||
Replacement reserve and other
|
12,528
|
11,193
|
||||||
Subtotal
|
43,096
|
45,903
|
||||||
Long term:
|
||||||||
Insurance reserves
|
5,188
|
5,412
|
||||||
Debt service and other deposits
|
57,579
|
47,568
|
||||||
Subtotal
|
62,767
|
52,980
|
||||||
Total
|
$
|
105,863
|
$
|
98,883
|
Asset Category
|
Estimated
Useful Life
(in years)
|
|
Buildings and improvements
|
40
|
|
Furniture and equipment
|
3 – 7
|
|
Resident lease intangibles
|
1 – 4
|
|
Leasehold improvements
|
Shorter of the lease term or asset useful life
|
|
Leasehold operating intangibles
|
Shorter of the lease term or asset useful life
|
|
Assets under capital and financing leases
|
Shorter of the lease term or asset useful life
|
Asset Category
|
Estimated
Useful Life
(in years)
|
|
Community purchase options
|
40
|
|
Management contracts and other
|
3 – 5
|
Fair value of consideration transferred
|
|||||
Cash
|
$
|
6,500
|
|||
Common stock (96,862 shares)
|
1,538
|
||||
Contingent consideration
|
2,708
|
||||
Total
|
$
|
10,746
|
Purchase price allocation
|
||||
Current assets
|
$
|
24,064
|
||
Property and equipment
|
2,167
|
|||
Acquired lease intangibles
|
5,965
|
|||
Current liabilities
|
(15,979
|
)
|
||
Long-term debt
|
(1,821
|
)
|
||
Other liabilities
|
(1,482
|
)
|
||
Deferred tax liability
|
(822
|
)
|
||
Gain on acquisition
|
(1,346
|
)
|
||
Total
|
$
|
10,746
|
Statement of Operations Data
|
2012
|
2011
|
2010
|
|||||||||
Total revenue
|
$
|
295,539
|
$
|
154,964
|
$
|
84,689
|
||||||
Expense
|
||||||||||||
Facility operating expense
|
202,855
|
103,611
|
54,766
|
|||||||||
Depreciation and amortization
|
49,142
|
23,923
|
12,730
|
|||||||||
Interest expense
|
50,825
|
27,072
|
13,153
|
|||||||||
Other expense
|
28,112
|
6,885
|
4,585
|
|||||||||
Total expense
|
330,934
|
161,491
|
85,234
|
|||||||||
Interest income
|
123
|
108
|
24
|
|||||||||
Net loss
|
$
|
(35,272
|
)
|
$
|
(6,419
|
)
|
$
|
(521
|
)
|
Balance Sheet Data
|
2012
|
2011
|
||||||
Cash and cash equivalents
|
$
|
16,578
|
$
|
15,255
|
||||
Property, plant and equipment, net
|
1,073,610
|
1,012,941
|
||||||
Other
|
148,960
|
184,052
|
||||||
Total assets
|
$
|
1,239,148
|
$
|
1,212,248
|
||||
Accounts payable and accrued expenses
|
$
|
66,841
|
$
|
61,199
|
||||
Long-term debt
|
892,463
|
900,091
|
||||||
Members' equity
|
279,844
|
250,958
|
||||||
Total liabilities and members' equity
|
$
|
1,239,148
|
$
|
1,212,248
|
||||
Members' equity consists of:
|
||||||||
Invested capital
|
$
|
582,360
|
$
|
403,625
|
||||
Cumulative net loss
|
(55,942
|
)
|
(25,810
|
)
|
||||
Cumulative distributions
|
(246,574
|
)
|
(126,857
|
)
|
||||
Members' equity
|
$
|
279,844
|
$
|
250,958
|
2012
|
2011
|
|||||||
Land
|
$
|
296,314
|
$
|
275,277
|
||||
Buildings and improvements
|
3,391,667
|
3,083,316
|
||||||
Leasehold improvements
|
60,186
|
62,494
|
||||||
Furniture and equipment
|
541,585
|
450,179
|
||||||
Resident and leasehold operating intangibles
|
441,603
|
527,571
|
||||||
Construction in progress
|
75,419
|
39,600
|
||||||
Assets under capital and financing leases
|
674,492
|
667,239
|
||||||
5,481,266
|
5,105,676
|
|||||||
Accumulated depreciation and amortization
|
(1,601,289
|
)
|
(1,411,612
|
)
|
||||
Property, plant and equipment and leasehold intangibles, net
|
$
|
3,879,977
|
$
|
3,694,064
|
Year Ending December 31,
|
Future
Amortization
|
|||
2013
|
$
|
26,900
|
||
2014
|
22,248
|
|||
2015
|
20,613
|
|||
2016
|
19,137
|
|||
2017
|
12,272
|
|||
Thereafter
|
14,083
|
|||
Total
|
$
|
115,253
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||
Gross
Carrying
Amount
|
Adjustment
|
Accumulated
Impairment
and Other
Charges
|
Net
|
Gross
Carrying
Amount
|
Adjustment
|
Accumulated
Impairment
and Other
Charges
|
Net
|
|||||||||||||||||||||||||
Retirement Centers
|
$
|
7,642
|
$
|
(34
|
)
|
$
|
(487
|
)
|
$
|
7,121
|
$
|
7,642
|
$
|
(34
|
)
|
$
|
(487
|
)
|
$
|
7,121
|
||||||||||||
Assisted Living
|
102,680
|
(106
|
)
|
(142
|
)
|
102,432
|
102,680
|
(106
|
)
|
(142
|
)
|
102,432
|
||||||||||||||||||||
CCRCs – Rental
|
56,281
|
—
|
(56,281
|
)
|
—
|
56,281
|
—
|
(56,281
|
)
|
—
|
||||||||||||||||||||||
CCRCs – Entry Fee
|
158,718
|
—
|
(158,718
|
)
|
—
|
158,718
|
—
|
(158,718
|
)
|
—
|
||||||||||||||||||||||
Total
|
$
|
325,321
|
$
|
(140
|
)
|
$
|
(215,628
|
)
|
$
|
109,553
|
$
|
325,321
|
$
|
(140
|
)
|
$
|
(215,628
|
)
|
$
|
109,553
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
|
|||||||||||||||||||
Community purchase options
|
$
|
147,610
|
$
|
(21,263
|
)
|
$
|
126,347
|
$
|
147,610
|
$
|
(17,566
|
)
|
$
|
130,044
|
||||||||||
Health care licenses
|
31,082
|
—
|
31,082
|
24,092
|
—
|
24,092
|
||||||||||||||||||
Management contracts and other
|
160,626
|
(158,113
|
)
|
2,513
|
158,041
|
(158,041
|
)
|
—
|
||||||||||||||||
Total
|
$
|
339,318
|
$
|
(179,376
|
)
|
$
|
159,942
|
$
|
329,743
|
$
|
(175,607
|
)
|
$
|
154,136
|
Year Ending December 31,
|
Future
Amortization
|
|||
2013
|
$
|
4,560
|
||
2014
|
4,560
|
|||
2015
|
4,488
|
|||
2016
|
3,698
|
|||
2017
|
3,698
|
|||
Thereafter
|
107,856
|
|||
Total
|
$
|
128,860
|
2012
|
2011
|
|||||||
Notes receivable
|
$
|
34,968
|
$
|
32,844
|
||||
Deferred costs, net
|
24,517
|
26,032
|
||||||
Lease security deposits
|
38,544
|
36,748
|
||||||
Other
|
15,286
|
14,310
|
||||||
Total
|
$
|
113,315
|
$
|
109,934
|
|
December 31,
|
|||||||
|
2012
|
2011
|
||||||
Mortgage notes payable due 2013 through 2022; weighted average interest rate of 4.62% in 2012, net of debt discount of $0.3 million (weighted average interest rate of 5.04% in 2011)
|
$
|
1,701,515
|
$
|
1,470,462
|
||||
$150,000 Series A notes payable, secured by five communities and by a $3.0 million cash collateral deposit, bearing interest at LIBOR plus 0.88%, payable in monthly installments of interest only until August 2011 and payable in monthly installments of principal and interest through maturity in August 2013
|
144,384
|
148,601
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Discount mortgage note payable due June 2013, weighted average interest rate of 2.56% in 2012, net of debt discount of $1.0 million and $3.0 million in 2012 and 2011, respectively (weighted average interest rate of 2.52% in 2011)
|
80,533
|
79,911
|
||||||
Variable rate tax-exempt bonds credit-enhanced by Fannie Mae (weighted average interest rates of 1.65% at December 31, 2012 and 2011), due 2032, payable in monthly installments of principal and interest through maturity, secured by the underlying assets of the portfolio
|
99,847
|
100,423
|
||||||
Capital and financing lease obligations payable through 2026; weighted average interest rate of 8.16% in 2012 (weighted average interest rate of 8.61% in 2011)
|
319,745
|
348,195
|
||||||
Convertible notes payable in aggregate principal amount of $316.3 million, less debt discount of $65.0 million and $74.4 million in 2012 and 2011, respectively, interest at 2.75% per annum, due June 2018
|
251,312
|
241,897
|
||||||
Construction financing due 2017 through 2024; weighted average interest rate of 8.0% in 2012 (weighted average interest rate of 7.0% in 2011)
|
1,280
|
6,591
|
||||||
Notes payable issued to finance insurance premiums, weighted average interest rate of 2.81% in 2012 (weighted average interest rate of 3.11% in 2011), due 2013
|
753
|
2,545
|
||||||
Total debt
|
2,599,369
|
2,398,625
|
||||||
Less current portion
|
509,543
|
47,654
|
||||||
Total long-term debt
|
$
|
2,089,826
|
$
|
2,350,971
|
Year Ending December 31,
|
Long-term
Debt
|
Capital and
Financing
Lease
Obligations
|
Total Debt
|
|||||||||
2013
|
$
|
490,666
|
$
|
55,828
|
$
|
546,494
|
||||||
2014
|
170,705
|
55,065
|
225,770
|
|||||||||
2015
|
54,442
|
53,401
|
107,843
|
|||||||||
2016
|
50,643
|
46,957
|
97,600
|
|||||||||
2017
|
341,983
|
60,494
|
402,477
|
|||||||||
Thereafter
|
1,237,452
|
211,405
|
1,448,857
|
|||||||||
Total obligations
|
2,345,891
|
483,150
|
2,829,041
|
|||||||||
Less amount representing debt discount
|
(66,267
|
)
|
—
|
(66,267
|
)
|
|||||||
Less amount representing interest (8.16%)
|
—
|
(163,405
|
)
|
(163,405
|
)
|
|||||||
Total
|
$
|
2,279,624
|
$
|
319,745
|
$
|
2,599,369
|
For the Years Ended December 31,
|
||||||||
2012
|
2011
|
|||||||
Coupon interest
|
$
|
8,697
|
$
|
4,759
|
||||
Amortization of discount
|
9,415
|
4,456
|
||||||
Interest expense related to convertible notes
|
$
|
18,112
|
$
|
9,215
|
Current notional balance
|
$
|
27,373
|
||
Highest possible notional
|
$
|
27,373
|
||
Lowest interest rate
|
5.49
|
%
|
||
Highest interest rate
|
5.49
|
%
|
||
Average fixed rate
|
5.49
|
%
|
||
Earliest maturity date
|
2016
|
|||
Latest maturity date
|
2016
|
|||
Weighted average original maturity
|
5.0 years
|
|||
Estimated liability fair value (included in other liabilities at December 31, 2012)
|
$
|
(1,833
|
)
|
|
Estimated liability fair value (included in other liabilities at December 31, 2011)
|
$
|
(2,809
|
)
|
Current notional balance
|
$
|
589,568
|
||
Highest possible notional
|
$
|
589,568
|
||
Lowest interest cap rate
|
5.00
|
%
|
||
Highest interest cap rate
|
6.06
|
%
|
||
Average fixed cap rate
|
5.43
|
%
|
||
Earliest maturity date
|
2013
|
|||
Latest maturity date
|
2018
|
|||
Weighted average original maturity
|
3.5 years
|
|||
Estimated asset fair value (included in other assets at December 31, 2012)
|
$
|
495
|
||
Estimated asset fair value (included in other assets at December 31, 2011)
|
$
|
—
|
2012
|
2011
|
|||||||
Salaries and wages
|
$
|
71,567
|
$
|
52,268
|
||||
Insurance reserves
|
37,717
|
35,066
|
||||||
Vacation
|
24,697
|
23,565
|
||||||
Real estate taxes
|
22,178
|
22,690
|
||||||
Lease payable
|
8,915
|
9,017
|
||||||
Interest
|
7,644
|
7,782
|
||||||
Income taxes
|
2,469
|
1,919
|
||||||
Other
|
25,708
|
31,327
|
||||||
Total
|
$
|
200,895
|
$
|
183,634
|
|
For the Years Ended
December 31,
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Cash basis payment
|
$
|
281,729
|
$
|
270,623
|
$
|
264,727
|
||||||
Straight-line expense
|
6,668
|
8,608
|
10,521
|
|||||||||
Amortization of deferred gain
|
(4,372
|
)
|
(4,373
|
)
|
(4,343
|
)
|
||||||
Facility lease expense
|
$
|
284,025
|
$
|
274,858
|
$
|
270,905
|
|
Number of
Shares
|
Weighted
Average
Grant Date
Fair Value
|
||||||
Outstanding on January 1, 2010
|
3,915
|
$
|
14.62
|
|||||
Granted
|
1,341
|
$
|
16.92
|
|||||
Vested
|
(1,423
|
)
|
$
|
16.90
|
||||
Cancelled/forfeited
|
(293
|
)
|
$
|
15.93
|
||||
Outstanding on December 31, 2010
|
3,540
|
$
|
14.76
|
|||||
Granted
|
2,091
|
$
|
16.20
|
|||||
Vested
|
(1,207
|
)
|
$
|
16.43
|
||||
Cancelled/forfeited
|
(202
|
)
|
$
|
15.34
|
||||
Outstanding on December 31, 2011
|
4,222
|
$
|
14.93
|
|||||
Granted
|
1,592
|
$
|
19.20
|
|||||
Vested
|
(1,435
|
)
|
$
|
14.28
|
||||
Cancelled/forfeited
|
(427
|
)
|
$
|
15.62
|
||||
Outstanding on December 31, 2012
|
3,952
|
$
|
16.67
|
Shares Granted
|
Value Per Share
|
Total Value
|
|||||||||||
Three months ended March 31, 2012
|
1,286
|
|
$17.39 – $19.07
|
$
|
24,524
|
||||||||
Three months ended June 30, 2012
|
85
|
|
$18.72 − $19.55
|
$
|
1,666
|
||||||||
Three months ended September 30, 2012
|
128
|
|
$16.66 − $17.74
|
$
|
2,135
|
||||||||
Three months ended December 31, 2012
|
93
|
|
$23.31 − $23.99
|
$
|
2,231
|
Total Carrying
Value at
December 31,
2012
|
Quoted prices
in active
markets
(Level 1)
|
Significant
Other
Observable
inputs
(Level 2)
|
Significant
Unobservable
inputs
(Level 3)
|
|||||||||||||
Derivative assets
|
$
|
495
|
$
|
—
|
$
|
495
|
$
|
—
|
||||||||
Derivative liabilities
|
(1,833
|
)
|
—
|
(1,833
|
)
|
—
|
||||||||||
$
|
(1,338
|
)
|
$
|
—
|
$
|
(1,338
|
)
|
$
|
—
|
For the Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Federal:
|
||||||||||||
Current
|
$
|
193
|
$
|
631
|
$
|
626
|
||||||
Deferred
|
(178
|
)
|
(943
|
)
|
33,235
|
|||||||
Total Federal
|
15
|
(312
|
)
|
33,861
|
||||||||
State:
|
||||||||||||
Current
|
(2,059
|
)
|
(2,028
|
)
|
(2,429
|
)
|
||||||
Deferred (included in Federal above)
|
―
|
―
|
―
|
|||||||||
Total State
|
(2,059
|
)
|
(2,028
|
)
|
(2,429
|
)
|
||||||
Total
|
$
|
(2,044
|
)
|
$
|
(2,340
|
)
|
$
|
31,432
|
For the Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Tax benefit at U.S. statutory rate
|
$
|
22,474
|
$
|
23,042
|
$
|
28,117
|
||||||
State taxes, net of federal income tax
|
1,204
|
1,316
|
1,634
|
|||||||||
Unrecognized tax benefits
|
193
|
630
|
626
|
|||||||||
Other, net
|
122
|
59
|
(124
|
)
|
||||||||
Credits
|
—
|
4,803
|
3,354
|
|||||||||
Valuation allowance
|
(24,138
|
)
|
(30,489
|
)
|
(137
|
)
|
||||||
Officer's compensation
|
(922
|
)
|
(760
|
)
|
(2,197
|
)
|
||||||
Meals and entertainment
|
(486
|
)
|
(430
|
)
|
(383
|
)
|
||||||
Gain on acquisition
|
(266
|
)
|
791
|
—
|
||||||||
Return to provision
|
(225
|
)
|
(1,302
|
)
|
679
|
|||||||
Stock compensation
|
—
|
—
|
(137
|
)
|
||||||||
Total
|
$
|
(2,044
|
)
|
$
|
(2,340
|
)
|
$
|
31,432
|
2012
|
2011
|
|||||||
Deferred income tax assets:
|
||||||||
Operating loss carryforwards
|
$
|
169,792
|
$
|
174,433
|
||||
Capital lease obligations
|
52,720
|
62,136
|
||||||
Prepaid revenue
|
51,722
|
48,587
|
||||||
Accrued expenses
|
50,602
|
40,422
|
||||||
Deferred lease liability
|
46,541
|
48,916
|
||||||
Tax credits
|
20,551
|
20,158
|
||||||
Deferred gain on sale leaseback
|
10,127
|
11,581
|
||||||
Fair value of interest rate swaps
|
522
|
152
|
||||||
Total gross deferred income tax asset
|
402,577
|
406,385
|
||||||
Valuation allowance
|
(65,269
|
)
|
(40,820
|
)
|
||||
Net deferred income tax assets
|
337,308
|
365,565
|
||||||
Deferred income tax liabilities:
|
||||||||
Property, plant and equipment
|
(415,354
|
)
|
(454,985
|
)
|
||||
Other
|
(8,428
|
)
|
(11,540
|
)
|
||||
Total gross deferred income tax liability
|
(423,782
|
)
|
(466,525
|
)
|
||||
Net deferred tax liability
|
$
|
(86,474
|
)
|
$
|
(100,960
|
)
|
|
2012
|
2011
|
||||||
Deferred tax asset – current
|
$
|
13,377
|
$
|
11,776
|
||||
Deferred tax liability – noncurrent
|
(99,851
|
)
|
(112,736
|
)
|
||||
Net deferred tax liability
|
$
|
(86,474
|
)
|
$
|
(100,960
|
)
|
Balance at January 1, 2012
|
$
|
1,439
|
||
Additions for tax positions related to the current year
|
48
|
|||
Additions for tax positions related to prior years
|
201
|
|||
Reductions for tax positions related to prior years
|
(443
|
)
|
||
Balance at December 31, 2012
|
$
|
1,245
|
(dollars in thousands)
|
For the Years Ended
December 31,
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Interest paid
|
$
|
130,009
|
$
|
125,047
|
$
|
132,425
|
||||||
Income taxes paid
|
$
|
2,658
|
$
|
2,431
|
$
|
2,223
|
||||||
Write-off of deferred financing costs
|
$
|
744
|
$
|
2,080
|
$
|
2,878
|
Acquisitions of assets, net of related payables and cash received, net:
|
||||||||||||
Cash and escrow deposits-restricted
|
$
|
2,169
|
$
|
—
|
$
|
—
|
||||||
Prepaid expenses and other current assets
|
(2,817
|
)
|
—
|
—
|
Property, plant and equipment and leasehold intangibles
|
257,772
|
80,514
|
52,900
|
|||||||||
Other intangible assets, net
|
9,575
|
4,244
|
7,963
|
|||||||||
Other assets, net
|
(7,327
|
)
|
3,955
|
(2,870
|
)
|
|||||||
Accrued expenses
|
(573
|
)
|
(31
|
)
|
(45
|
)
|
||||||
Other liabilities
|
3,601
|
—
|
—
|
|||||||||
Long-term debt and capital and financing lease obligations
|
10,123
|
—
|
—
|
|||||||||
Net
|
$
|
272,523
|
$
|
88,682
|
$
|
57,948
|
||||||
Purchase of Horizon Bay Realty, L.L.C., net of cash acquired:
|
||||||||||||
Property, plant and equipment and leasehold intangibles, net
|
$
|
—
|
$
|
8,132
|
$
|
—
|
||||||
Cash and escrow deposits—restricted
|
—
|
10,702
|
—
|
|||||||||
Accounts receivable, net
|
—
|
2,479
|
—
|
|||||||||
Long-term debt, less current portion
|
—
|
(1,821
|
)
|
—
|
||||||||
Accrued expenses
|
—
|
(15,141
|
)
|
—
|
||||||||
Other liabilities
|
—
|
(6,347
|
)
|
—
|
||||||||
Common Stock
|
—
|
(1
|
)
|
—
|
||||||||
Additional paid-in-capital
|
—
|
(1,537
|
)
|
—
|
||||||||
Accumulated earnings
|
—
|
(1,982
|
)
|
—
|
||||||||
Net
|
$
|
—
|
$
|
(5,516
|
)
|
$
|
—
|
|||||
Reinvested income on marketable securities - restricted
|
$
|
1,156
|
$
|
$1,426
|
$
|
—
|
||||||
Supplemental Schedule of Noncash Operating, Investing and Financing Activities:
|
||||||||||||
Capital leases:
|
||||||||||||
Property, plant and equipment and leasehold intangibles, net
|
$
|
13,852
|
$
|
―
|
$
|
5,791
|
||||||
Long-term debt
|
(13,852
|
)
|
―
|
(5,791
|
)
|
|||||||
Net
|
$
|
—
|
$
|
—
|
$
|
—
|
Year Ending December 31,
|
Operating
Leases
|
|||
2013
|
$
|
277,684
|
||
2014
|
268,164
|
|||
2015
|
259,624
|
|||
2016
|
256,463
|
|||
2017
|
232,445
|
|||
Thereafter
|
684,536
|
|||
Total
|
$
|
1,978,916
|
|
For the Years Ended December 31,
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Revenue(1):
|
||||||||||||
Retirement Centers
|
$
|
503,902
|
$
|
473,842
|
$
|
463,260
|
||||||
Assisted Living
|
1,013,337
|
964,585
|
945,469
|
|||||||||
CCRCs - Rental
|
385,479
|
364,095
|
339,920
|
|||||||||
CCRCs - Entry Fee
|
287,048
|
283,455
|
269,056
|
|||||||||
ISC
|
224,517
|
205,780
|
189,968
|
|||||||||
Management Services(2)
|
355,802
|
166,161
|
72,862
|
|||||||||
|
$
|
2,770,085
|
$
|
2,457,918
|
$
|
2,280,535
|
||||||
Segment Operating Income(3):
|
||||||||||||
Retirement Centers
|
$
|
205,585
|
$
|
198,439
|
$
|
196,647
|
||||||
Assisted Living
|
361,184
|
339,928
|
331,220
|
|||||||||
CCRCs - Rental
|
106,063
|
116,849
|
108,929
|
|||||||||
CCRCs - Entry Fee
|
62,752
|
69,985
|
66,085
|
|||||||||
ISC
|
47,780
|
57,985
|
66,862
|
|||||||||
Management Services
|
30,786
|
13,595
|
5,591
|
|||||||||
|
814,150
|
796,781
|
775,334
|
General and administrative (including non-cash stock-based compensation expense)
|
178,829
|
148,327
|
131,709
|
|||||||||
Facility lease expense
|
284,025
|
274,858
|
270,905
|
|||||||||
Depreciation and amortization:
|
||||||||||||
Retirement Centers
|
61,060
|
60,275
|
60,869
|
|||||||||
Assisted Living
|
81,801
|
82,843
|
93,066
|
|||||||||
CCRCs - Rental
|
31,205
|
30,776
|
30,655
|
|||||||||
CCRCs - Entry Fee
|
52,840
|
54,794
|
56,006
|
|||||||||
ISC
|
2,220
|
1,699
|
1,169
|
Corporate and Management Services
|
23,155
|
38,119
|
50,576
|
|||||||||
Gain on sale of communities, net
|
—
|
—
|
(3,298
|
)
|
||||||||
Asset impairment
|
27,677
|
16,892
|
13,075
|
|||||||||
Loss (gain) on acquisition
|
636
|
(1,982
|
)
|
―
|
||||||||
(Gain) loss on facility lease termination
|
(11,584
|
)
|
—
|
4,608
|
||||||||
Income from operations
|
$
|
82,286
|
$
|
90,180
|
$
|
65,994
|
||||||
Total interest income:
|
||||||||||||
Retirement Centers
|
$
|
184
|
$
|
311
|
$
|
19
|
||||||
Assisted Living
|
9
|
18
|
17
|
|||||||||
CCRCs - Rental
|
28
|
35
|
29
|
|||||||||
CCRCs - Entry Fee
|
3,378
|
2,263
|
941
|
|||||||||
ISC
|
—
|
—
|
—
|
|||||||||
Corporate and Management Services
|
413
|
911
|
1,232
|
|||||||||
$
|
4,012
|
$
|
3,538
|
$
|
2,238
|
|||||||
Total interest expense:
|
||||||||||||
Retirement Centers
|
$
|
29,025
|
$
|
28,444
|
$
|
33,298
|
||||||
Assisted Living
|
57,634
|
58,453
|
65,086
|
|||||||||
CCRCs - Rental
|
17,336
|
15,324
|
15,433
|
|||||||||
CCRCs - Entry Fee
|
13,792
|
20,316
|
23,867
|
|||||||||
ISC
|
—
|
—
|
—
|
|||||||||
Corporate and Management Services
|
28,996
|
19,641
|
8,038
|
|||||||||
$
|
146,783
|
$
|
142,178
|
$
|
145,722
|
|||||||
Total expenditures for property, plant and equipment, and leasehold intangibles:
|
||||||||||||
Retirement Centers
|
$
|
58,876
|
$
|
45,891
|
$
|
22,760
|
||||||
Assisted Living
|
68,675
|
43,955
|
24,687
|
|||||||||
CCRCs - Rental
|
21,916
|
20,615
|
12,077
|
|||||||||
CCRCs - Entry Fee
|
24,890
|
16,255
|
16,314
|
|||||||||
ISC
|
6,037
|
2,715
|
4,260
|
|||||||||
Corporate and Management Services
|
28,018
|
30,700
|
13,583
|
|||||||||
$
|
208,412
|
$
|
160,131
|
$
|
93,681
|
|||||||
As of December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Total assets:
|
||||||||||||
Retirement Centers
|
$
|
1,256,497
|
$
|
1,047,388
|
$
|
1,080,410
|
||||||
Assisted Living
|
1,438,934
|
1,451,612
|
1,448,029
|
|||||||||
CCRCs - Rental
|
534,220
|
518,993
|
529,428
|
|||||||||
CCRCs - Entry Fee
|
951,584
|
1,021,938
|
1,096,714
|
|||||||||
ISC
|
90,357
|
78,137
|
67,845
|
|||||||||
Corporate and Management Services
|
394,386
|
347,993
|
308,044
|
|||||||||
$
|
4,665,978
|
$
|
4,466,061
|
$
|
4,530,470
|
(1)
|
All revenue is earned from external third parties in the United States.
|
(2)
|
Management services segment revenue includes reimbursements for which the Company is the primary obligor of costs incurred on behalf of managed communities.
|
(3)
|
Segment operating income is defined as segment revenues less segment operating expenses (excluding depreciation and amortization).
|
For the Quarters Ended
|
||||||||||||||||
March 31,
2012
|
June 30,
2012
|
September 30,
2012
|
December 31,
2012
|
|||||||||||||
Revenues
|
$
|
683,045
|
$
|
690,810
|
$
|
696,482
|
$
|
699,748
|
||||||||
Income from operations(1)
|
26,860
|
18,865
|
24,606
|
11,955
|
||||||||||||
Loss before income taxes
|
(9,277
|
)
|
(17,796
|
)
|
(11,132
|
)
|
(25,396
|
)
|
||||||||
Net loss
|
(10,338
|
)
|
(18,810
|
)
|
(12,010
|
)
|
(24,487
|
)
|
||||||||
Weighted average basic and diluted loss per share
|
$
|
(0.09
|
)
|
$
|
(0.15
|
)
|
$
|
(0.10
|
)
|
$
|
(0.20
|
)
|
||||
Weighted average shares used in computing basic and diluted loss per share
|
121,145
|
121,708
|
122,493
|
122,608
|
For the Quarters Ended
|
||||||||||||||||
March 31,
2011
|
June 30,
2011
|
September 30,
2011
|
December 31,
2011
|
|||||||||||||
Revenues
|
$
|
586,920
|
$
|
583,299
|
$
|
615,728
|
$
|
671,971
|
||||||||
Income from operations(1)
|
12,000
|
28,863
|
29,505
|
19,812
|
||||||||||||
Loss before income taxes
|
(23,459
|
)
|
(21,231
|
)
|
(6,523
|
)
|
(14,622
|
)
|
||||||||
Net loss
|
(12,305
|
)
|
(33,959
|
)
|
(7,036
|
)
|
(14,875
|
)
|
||||||||
Weighted average basic and diluted loss per share
|
$
|
(0.10
|
)
|
$
|
(0.28
|
)
|
$
|
(0.06
|
)
|
$
|
(0.12
|
)
|
||||
Weighted average shares used in computing basic and diluted loss per share
|
120,792
|
121,280
|
121,616
|
120,951
|
(1) | Fourth quarter 2012 and 2011 results include non-cash impairment charges of $19.3 million and $2.0 million, respectively. Second quarter 2012 results include non-cash impairment charges of $7.2 million. First quarter 2012 and 2011 results include non-cash impairment charges of $1.1 million and $14.8 million, respectively. |
Additions
|
||||||||||||||||||||
Description
|
Balance at
beginning of period |
Charged to
costs and expenses |
Charged
to other accounts |
Deductions
|
Balance at
end of period |
|||||||||||||||
Allowance for Doubtful Accounts:
|
||||||||||||||||||||
Year ended December 31, 2010
|
$
|
13,907
|
$
|
13,816
|
$
|
179
|
$
|
(13,438
|
)
|
$
|
14,464
|
|||||||||
Year ended December 31, 2011
|
$
|
14,464
|
$
|
16,796
|
$
|
1,817
|
$
|
(16,105
|
)
|
$
|
16,972
|
|||||||||
Year ended December 31, 2012
|
$
|
16,972
|
$
|
15,683
|
$
|
660
|
$
|
(18,053
|
)
|
$
|
15,262
|
|||||||||
Deferred Tax Valuation Allowance: Account:
|
||||||||||||||||||||
Year ended December 31, 2010
|
$
|
10,708
|
$
|
―
|
$
|
137
|
(1)
|
$
|
—
|
$
|
10,845
|
|||||||||
Year ended December 31, 2011
|
$
|
10,845
|
$
|
29,348
|
(2)
|
$
|
1,141
|
(3)
|
$
|
(514
|
)(4)
|
$
|
40,820
|
|||||||
Year ended December 31, 2012
|
$
|
40,820
|
$
|
26,989
|
(5)
|
$
|
(2,540
|
)(6)
|
$
|
—
|
$
|
65,269
|
(1) | Adjustment to valuation allowance for state net operating losses of $137. |
(2) | Adjustment to valuation allowance for federal net operating losses and federal credits of $22,940 and $6,408, respectively. |
(3) | Adjustment to valuation allowance for state net operating losses of $1,141. |
(4) | Adjustment to valuation allowance for state credits of $514. |
(5) | Adjustment to valuation allowance for federal net operating losses and federal credits of $26,589, and $400, respectively. |
(6) | Adjustment to valuation allowance for state net operating losses of $(2,540). |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Plan category
|
Number of securities
to be issued upon exercise of outstanding options, warrants and rights (a)(1) |
Weighted-average
exercise price of outstanding options, warrants and rights (b) |
Number of securities
remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)(2) |
Equity compensation plans approved by security holders(3)
|
—
|
—
|
3,563,431
|
Equity compensation plans not approved by security holders(4)
|
—
|
—
|
85,185
|
Total
|
—
|
—
|
3,648,616
|
(1) | In addition to options, warrants, and rights, our Omnibus Stock Incentive Plan allows awards to be made in the form of shares of restricted stock, restricted stock units or other forms of equity-based compensation. As of December 31, 2012, 3,951,950 shares of unvested restricted stock and 103,254 restricted stock units issued under our Omnibus Stock Incentive Plan were outstanding. Such shares and restricted stock units are not reflected in the table above. |
(2) | The number of shares remaining available for future issuance under equity compensation plans approved by security holders consists of 2,317,953 shares remaining available for future issuance under our Omnibus Stock Incentive Plan and 1,245,478 shares remaining available for future issuance under our Associate Stock Purchase Plan. |
(3) | Under the terms of our Omnibus Stock Incentive Plan, the number of shares reserved and available for issuance will increase annually each January 1 by an amount equal to the lesser of (1) 400,000 shares or (2) 2% of the number of outstanding shares of our common stock on the last day of the immediately preceding fiscal year. Under the terms of our Associate Stock Purchase Plan, the number of shares reserved and available for issuance will automatically increase by 200,000 shares on the first day of each calendar year beginning January 1, 2010. |
(4) | Represents shares remaining available for future issuance under our Director Stock Purchase Plan. Under the existing compensation program for the members of our Board of Directors, each non-affiliated director has the opportunity to elect to receive either immediately vested shares or restricted stock units in lieu of up to 50% of his or her quarterly cash compensation. Any immediately vested shares that are elected to be received will be issued pursuant to the Director Stock Purchase Plan. Under the director compensation program, all cash amounts are payable quarterly in arrears, with payments to be made on April 1, July 1, |
1) | Our Audited Consolidated Financial Statements |
2) | Exhibits – See Exhibit Index immediately following the signature page hereto, which Exhibit Index is incorporated by reference as if fully set forth herein. |
|
BROOKDALE SENIOR LIVING INC.
|
||
|
|
|
|
|
By:
|
/s/ W.E. Sheriff
|
|
|
Name:
|
W.E. Sheriff
|
|
|
Title:
|
Chief Executive Officer
|
|
|
Date:
|
February 19, 2013
|
|
Signature
|
Title
|
Date
|
|
|
|
/s/ Jeffrey R. Leeds
|
Non-Executive Chairman of the Board
|
February 19, 2013
|
Jeffrey R. Leeds
|
|
|
|
|
|
/s/ W.E. Sheriff
|
Chief Executive Officer and Director
|
February 19, 2013
|
W.E. Sheriff
|
(Principal Executive Officer)
|
|
|
|
|
/s/ Mark W. Ohlendorf
|
Co-President and Chief Financial Officer
|
February 19, 2013
|
Mark W. Ohlendorf
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
/s/ Frank M. Bumstead
|
Director
|
February 19, 2013
|
Frank M. Bumstead
|
|
|
|
|
|
/s/ Jackie M. Clegg
|
Director
|
February 19, 2013
|
Jackie M. Clegg
|
|
|
|
|
|
/s/ Wesley R. Edens
|
Director
|
February 19, 2013
|
Wesley R. Edens
|
|
|
|
|
|
/s/ Randal A. Nardone
|
Director
|
February 19, 2013
|
Randal A. Nardone
|
|
|
|
|
|
/s/ Mark J. Schulte
|
Director
|
February 19, 2013
|
Mark J. Schulte
|
|
|
|
|
|
/s/ James R. Seward
|
Director
|
February 19, 2013
|
James R. Seward
|
|
|
|
|
|
/s/ Samuel Waxman
|
Director
|
February 19, 2013
|
Samuel Waxman
|
|
|
Exhibit No.
|
Description
|
3.1
|
Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-K filed on February 26, 2010).
|
3.2
|
Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on July 3, 2012).
|
4.1
|
Form of Certificate for common stock (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-1 (Amendment No. 3) (No. 333-127372) filed on November 7, 2005).
|
4.2
|
Stockholders Agreement, dated as of November 28, 2005, by and among Brookdale Senior Living Inc., FIT-ALT Investor LLC, Fortress Brookdale Acquisition LLC, Fortress Investment Trust II and Health Partners (incorporated by reference to Exhibit 4.2 to the Company's Annual Report on Form 10-K filed on March 31, 2006).
|
4.3
|
Amendment No. 1 to Stockholders Agreement, dated as of July 25, 2006, by and among Brookdale Senior Living Inc., FIT-ALT Investor LLC, Fortress Registered Investment Trust, Fortress Brookdale Investment Fund LLC, FRIT Holdings LLC, and FIT Holdings LLC (incorporated by reference to Exhibit 4.3 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2006).
|
4.4
|
Amendment Number Two to Stockholders Agreement, dated as of November 4, 2009 (incorporated by reference to Exhibit 4.4 to the Company's Quarterly Report on Form 10-Q filed on November 4, 2009).
|
4.5
|
Indenture, dated as of June 14, 2011, between the Company and American Stock Transfer & Trust Company, LLC, as Trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on June 14, 2011).
|
4.6
|
Supplemental Indenture, dated as of June 14, 2011, between the Company and American Stock Transfer & Trust Company, LLC, as Trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on June 14, 2011).
|
4.7
|
Form of 2.75% Convertible Senior Note due 2018 (included as part of Exhibit 4.6).
|
10.1
|
Consent to Change of Control and Third Amendment to Master Lease, dated April 1, 2006, by and between Health Care Property Investors, Inc., Texas HCP Holding, L.P., ARC Richmond Place Real Estate Holdings, LLC, ARC Holland Real Estate Holdings, LLC, ARC Sun City Center Real Estate Holdings, LLC, and ARC LaBarc Real Estate Holdings, LLC, on the one hand, and Fort Austin Limited Partnership, ARC Santa Catalina, Inc., ARC Richmond Place, Inc., Freedom Village of Holland, Michigan, Freedom Village of Sun City Center, Ltd., LaBarc, L.P. and Park Place Investments, LLC, on the other hand, and ARCPI Holdings, Inc. and American Retirement Corporation (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q filed on August 14, 2006).
|
10.2
|
Second Amended and Restated Master Lease Agreement, dated as of April 7, 2006, among Health Care REIT, Inc., HCRI North Carolina Properties III, Limited Partnership, HCRI Tennessee Properties, Inc., HCRI Indiana Properties, LLC, HCRI Wisconsin Properties, LLC, and HCRI Texas Properties, Ltd., and Alterra Healthcare Corporation (incorporated by reference to Exhibit 10.32 to the Company's Registration Statement on Form S-1 (No. 333-135030) filed on June 14, 2006).
|
10.3.1
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (Time-Vesting; No Dividends) (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on August 8, 2007).*
|
10.3.2
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (Time-Vesting; With Dividends) (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed on August 8, 2007).*
|
10.3.3
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (Performance/Time-Vesting; With Dividends) (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed on August 8, 2007).*
|
10.3.4
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (Performance/Time-Vesting; No Dividends) (incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q filed on August 8, 2007).*
|
10.4
|
Separation Agreement and General Release, dated February 7, 2008, between Brookdale Senior Living Inc. and Mark J. Schulte (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on February 11, 2008).*
|
10.5
|
Brookdale Senior Living Inc. Associate Stock Purchase Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 11, 2008).*
|
10.6
|
Brookdale Senior Living Inc. Omnibus Stock Incentive Plan, as amended and restated effective June 23, 2009 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 23, 2009).*
|
10.7
|
Employment Agreement, dated as of June 23, 2009, by and between Brookdale Senior Living Inc. and W.E. Sheriff (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 26, 2009).*
|
10.8
|
Restricted Stock Unit Agreement, dated as of June 23, 2009, by and between Brookdale Senior Living Inc. and W.E. Sheriff (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on June 26, 2009).*
|
10.9
|
Summary of Brookdale Senior Living Inc. Director Stock Purchase Plan (incorporated by reference to Exhibit 99.1 to the Company's Registration Statement on Form S-8 (No. 333-160354) filed on June 30, 2009).*
|
10.10
|
First Amendment to Brookdale Senior Living Inc. Omnibus Stock Incentive Plan, as amended and restated, effective as of October 30, 2009 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on November 4, 2009).*
|
10.11.1
|
Credit Agreement, dated as of February 23, 2010, among certain subsidiaries of Brookdale Senior Living Inc., General Electric Capital Corporation, as administrative agent and lender, and the other lenders from time to time parties thereto (incorporated by reference to Exhibit 10.29 to the Company's Annual Report on Form 10-K filed on February 26, 2010).
|
10.11.2
|
First Amendment, dated as of May 5, 2010, to the Credit Agreement, dated as of February 23, 2010, among certain subsidiaries of Brookdale Senior Living Inc., General Electric Capital Corporation, as administrative agent and lender, and the other lenders from time to time parties thereto (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 6, 2010).
|
10.12
|
Form of Severance Letter and Brookdale Senior Living Inc. Severance Pay Policy, Tier I (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on August 6, 2010).*
|
10.13
|
Amended and Restated Credit Agreement, dated as of January 31, 2011, among certain subsidiaries of Brookdale Senior Living Inc., General Electric Capital Corporation, as administrative agent and lender, and the other lenders from time to time parties thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on February 4, 2011).
|
10.14
|
First Amendment, dated as of February 23, 2011, to Amended and Restated Credit Agreement, dated as of January 31, 2011, among certain subsidiaries of Brookdale Senior Living Inc., General Electric Capital Corporation, as administrative agent and lender, and the other lenders from time to time parties thereto (incorporated by reference to Exhibit 10.15 to the Company's Annual Report on Form 10-K filed on February 28, 2011).
|
10.15
|
Form of Indemnification Agreement for Directors and Officers (incorporated by reference to Exhibit 10.16 to the Company's Annual Report on Form 10-K filed on February 28, 2011).*
|
10.16
|
Convertible Bond Hedge Transaction Confirmation between the Company and Bank of America, N.A., dated as of June 8, 2011 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
|
10.17
|
Issuer Warrant Transaction Confirmation between the Company and Bank of America, N.A., dated as of June 8, 2011 (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
|
10.18
|
Convertible Bond Hedge Transaction Confirmation between the Company and JPMorgan Chase Bank, National Association, dated as of June 8, 2011 (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
|
10.19
|
Issuer Warrant Transaction Confirmation between the Company and JPMorgan Chase Bank, National Association, dated as of June 8, 2011 (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
|
10.20
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Convertible Bond Hedge Transaction Confirmation between the Company and Royal Bank of Canada, dated as of June 8, 2011 (incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.21
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Issuer Warrant Transaction Confirmation between the Company and Royal Bank of Canada, dated as of June 8, 2011 (incorporated by reference to Exhibit 10.6 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.22
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Additional Convertible Bond Hedge Transaction Confirmation between the Company and Bank of America, N.A., dated as of June 15, 2011 (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.23
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Additional Issuer Warrant Transaction Confirmation between the Company and Bank of America, N.A., dated as of June 15, 2011 (incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.24
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Additional Convertible Bond Hedge Transaction Confirmation between the Company and JPMorgan Chase Bank, National Association, dated as of June 15, 2011 (incorporated by reference to Exhibit 10.9 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.25
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Additional Issuer Warrant Transaction Confirmation between the Company and JPMorgan Chase Bank, National Association, dated as of June 15, 2011 (incorporated by reference to Exhibit 10.10 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.26
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Additional Convertible Bond Hedge Transaction Confirmation between the Company and Royal Bank of Canada, dated as of June 15, 2011 (incorporated by reference to Exhibit 10.11 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.27
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Additional Issuer Warrant Transaction Confirmation between the Company and Royal Bank of Canada, dated as of June 15, 2011 (incorporated by reference to Exhibit 10.12 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2011).
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10.28
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Master Credit Facility Agreement, dated as of July 29, 2011, by and among various subsidiaries of Brookdale Senior Living Inc. and Oak Grove Commercial Mortgage, LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 4, 2011).
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10.29
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Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (Time-Vesting Form for Executive Committee Members) (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on November 9, 2011).*
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10.30
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Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (Time-Vesting Form for Executive Vice Presidents) (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on November 9, 2011).*
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10.31
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Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (2011 Performance-Vesting Form for Executive Committee Members) (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on November 9, 2011).*
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10.32
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Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (2011 Performance-Vesting Form for Executive Vice Presidents) (incorporated by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K filed on November 9, 2011).*
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10.33
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Form of Outside Director Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 9, 2012).*
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10.34
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Amendment to Employment Agreement, effective as of November 5, 2012, by and between Brookdale Senior Living Inc. and W.E. Sheriff (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on November 9, 2012).*
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10.35
|
Amendment to Restricted Stock Unit Agreement, effective as of November 5, 2012, by and between Brookdale Senior Living Inc. and W.E. Sheriff (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on November 9, 2012).*
|
10.36
|
Employment Agreement, dated as of February 11, 2013, by and between Brookdale Senior Living Inc. and T. Andrew Smith (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on February 12, 2013).*
|
10.37
|
Restricted Share Agreement (Time-Vesting), dated as of February 11, 2013, by and between Brookdale Senior Living Inc. and T. Andrew Smith (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on February 12, 2013).*
|
10.38
|
Restricted Share Agreement (Performance-Vesting), dated as of February 11, 2013, by and between Brookdale Senior Living Inc. and T. Andrew Smith (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on February 12, 2013).*
|
10.39
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (2013 Time-Vesting Form for Executive Committee Members).*
|
10.40
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (2013 Time-Vesting Form for Executive Vice Presidents).*
|
10.41
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (2013 Performance-Vesting Form for Executive Committee Members).*
|
10.42
|
Form of Restricted Share Agreement under the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (2013 Performance-Vesting Form for Executive Vice Presidents).*
|
21
|
Subsidiaries of the Registrant.
|
23
|
Consent of Ernst & Young LLP.
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
* | Management Contract or Compensatory Plan |
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BROOKDALE SENIOR LIVING INC.
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Participant
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Taxpayer
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Spouse of Taxpayer
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BROOKDALE SENIOR LIVING INC.
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BROOKDALE SENIOR LIVING INC.
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Participant
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Dated: ______________, 20___
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Taxpayer
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Dated: ______________, 20___
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Spouse of Taxpayer
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BROOKDALE SENIOR LIVING INC.
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Participant
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Taxpayer
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Dated: ______________, 20___
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Spouse of Taxpayer
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Subsidiary
|
JURISDICTION
OF
INCORPORATION
OR FORMATION
|
1250 West Pioneer Parkway LLC
|
DE
|
2151 Green Oaks Road LLC
|
DE
|
4400 West 115th Street LLC
|
DE
|
8010 East Mississippi Avenue LLC
|
DE
|
Abingdon Place of Gastonia LP
|
NC
|
Abingdon Place of Greensboro LP
|
NC
|
Abingdon Place of Lenoir LP
|
NC
|
AH Battery Park Member LLC
|
OH
|
AH Battery Park Owner LLC
|
OH
|
AH Illinois Huntley Member LLC
|
OH
|
AH Illinois Huntley Owner LLC
|
OH
|
AH Illinois Owner Limited Partnership
|
OH
|
AH Illinois Owner LLC
|
DE
|
AH North Carolina Owner LLC
|
DE
|
AH Ohio Columbus Owner LLC
|
DE
|
AH Texas CGP Inc
|
OH
|
AH Texas Owner Limited Partnership SL
|
OH
|
AH Texas Subordinated LLC
|
OH
|
AH Texas Subordinated SL LLC
|
OH
|
AHC ALS FM Holding Company LLC
|
DE
|
AHC Bayside Inc
|
DE
|
AHC Clare Bridge of Gainesville LLC
|
DE
|
AHC Exchange Corporation
|
DE
|
AHC Florham Park LLC
|
DE
|
AHC Monroe Township LLC
|
DE
|
AHC PHN I Inc
|
DE
|
AHC Properties Inc
|
DE
|
AHC Purchaser Inc
|
DE
|
AHC Purchaser Parent LLC
|
DE
|
AHC Richland Hills LLC
|
DE
|
AHC Shoreline Inc
|
DE
|
AHC Southland Lakeland LLC
|
DE
|
AHC Southland Longwood LLC
|
DE
|
AHC Southland Melbourne LLC
|
DE
|
AHC Southland Ormond Beach LLC
|
DE
|
AHC Sterling House of Brighton LLC
|
DE
|
AHC Sterling House of Corsicana LLC
|
DE
|
AHC Sterling House of Fairfield LLC
|
DE
|
AHC Sterling House of Gainesville LLC
|
DE
|
AHC Sterling House of Greenville LLC
|
DE
|
AHC Sterling House of Harbison LLC
|
DE
|
AHC Sterling House of Jacksonville LLC
|
DE
|
AHC Sterling House of Lehigh Acres LLC
|
DE
|
AHC Sterling House of Lewisville LLC
|
DE
|
AHC Sterling House of Mansfield LLC
|
DE
|
AHC Sterling House of Newark LLC
|
DE
|
AHC Sterling House of Oklahoma City West LLC
|
DE
|
AHC Sterling House of Panama City LLC
|
DE
|
AHC Sterling House of Port Charlotte LLC
|
DE
|
AHC Sterling House of Punta Gorda LLC
|
DE
|
AHC Sterling House of Urbana LLC
|
DE
|
AHC Sterling House of Venice LLC
|
DE
|
AHC Sterling House of Washington Township LLC
|
DE
|
AHC Sterling House of Weatherford LLC
|
DE
|
AHC Sterling House of Youngstown LLC
|
DE
|
AHC Trailside LLC
|
DE
|
AHC Villas of Albany Residential LLC
|
DE
|
AHC Villas of the Atrium LLC
|
DE
|
AHC Villas Wynwood of Courtyard Albany LLC
|
DE
|
AHC Villas Wynwood of River Place LLC
|
DE
|
AHC Wynwood of Rogue Valley LLC
|
DE
|
AHC/ALS FM Holding Company LLC
|
DE
|
Alabama Somerby LLC
|
DE
|
ALS Clare Bridge Inc
|
DE
|
ALS Holdings Inc
|
DE
|
ALS Kansas Inc
|
DE
|
ALS Leasing Inc
|
DE
|
ALS National Inc
|
DE
|
ALS National SPE I Inc
|
DE
|
ALS National SPE II Inc
|
MD
|
ALS North America Inc
|
DE
|
ALS Olathe I Inc
|
DE
|
ALS Properties Holding Company LLC
|
DE
|
ALS Properties Tenant I LLC
|
DE
|
ALS Properties Tenant II LLC
|
DE
|
ALS Stonefield Inc
|
DE
|
ALS Venture II Inc
|
DE
|
ALS Wisconsin Holdings Inc
|
DE
|
ALS Wovenhearts Inc
|
DE
|
Alternative Living Services Home Care Inc
|
NY
|
Alternative Living Services New York Inc
|
DE
|
American Retirement Corporation
|
TN
|
Arbors of Santa Rosa LLC
|
DE
|
ARC Air Force Village LP
|
TN
|
ARC Aurora LLC
|
TN
|
ARC Bahia Oaks Inc
|
TN
|
ARC Bay Pines Inc
|
TN
|
ARC Belmont LLC
|
TN
|
ARC Boca Raton Inc
|
TN
|
ARC Boynton Beach LLC
|
TN
|
ARC Bradenton HC Inc
|
TN
|
ARC Bradenton Management Inc
|
TN
|
ARC Bradenton RC Inc
|
TN
|
ARC Brandywine GP LLC
|
TN
|
ARC Brandywine LP
|
DE
|
ARC Brookmont Terrace Inc
|
TN
|
ARC Carriage Club of Jacksonville Inc
|
TN
|
ARC Castle Hills LP
|
TN
|
ARC Charlotte Inc
|
TN
|
ARC Cleveland Heights LLC
|
TN
|
ARC Cleveland Park LLC
|
TN
|
ARC Coconut Creek LLC
|
TN
|
ARC Coconut Creek Management Inc
|
TN
|
ARC Corpus Christi LLC
|
TN
|
ARC Countryside LLC
|
TN
|
ARC Creative Marketing LLC
|
TN
|
ARC Cypress LLC
|
TN
|
ARC Cypress Station LP
|
TN
|
ARC Deane Hill LLC
|
TN
|
ARC Delray Beach LLC
|
TN
|
ARC Denver Monaco LLC
|
DE
|
ARC Epic Holding Company Inc
|
TN
|
ARC Epic OpCo Holding Company Inc
|
DE
|
ARC FM GP Holding Inc
|
DE
|
ARC FM Holding Company LLC
|
DE
|
ARC FM Limited LLC
|
DE
|
ARC Fort Austin Properties LLC
|
TN
|
ARC Freedom LLC
|
TN
|
ARC Freedom Square LLC
|
DE
|
ARC Freedom Square Management Inc
|
TN
|
ARC Galleria Woods Inc
|
TN
|
ARC Greenwood Village Inc
|
TN
|
ARC Hampton Post Oak Inc
|
TN
|
ARC HDV LLC
|
TN
|
ARC Heritage Club Inc
|
TN
|
ARC Holland Inc
|
TN
|
ARC Holley Court LLC
|
TN
|
ARC Holley Court Management Inc
|
TN
|
ARC Homewood Corpus Christi LP
|
TN
|
ARC Homewood Victoria Inc
|
TN
|
ARC Imperial Plaza LLC
|
TN
|
ARC Imperial Services Inc
|
TN
|
ARC Lady Lake Inc
|
TN
|
ARC Lakeway ALF Holding Company LLC
|
DE
|
ARC Lakeway II LP
|
TN
|
ARC Lakeway LP
|
TN
|
ARC Lakeway SNF LLC
|
TN
|
ARC Lakewood LLC
|
TN
|
ARC Lowry LLC
|
TN
|
ARC LP Holdings LLC
|
TN
|
ARC Management Corporation
|
TN
|
ARC Management LLC
|
TN
|
ARC Minnetonka LLC
|
DE
|
ARC Naples LLC
|
TN
|
ARC Northwest Hills LP
|
TN
|
ARC Oakhurst Inc
|
TN
|
ARC Overland Park LLC
|
DE
|
ARC Park Regency Inc
|
TN
|
ARC Parklane Inc
|
TN
|
ARC Partners II Inc
|
TN
|
ARC Pearland LP
|
TN
|
ARC Pecan Park LP
|
TN
|
ARC Pecan Park Padgett Inc
|
TN
|
ARC Peoria II Inc
|
TN
|
ARC Peoria LLC
|
TN
|
ARC Pharmacy Services LLC
|
TN
|
ARC Pinegate LP
|
TN
|
ARC Post Oak LP
|
TN
|
ARC Richmond Heights LLC
|
TN
|
ARC Richmond Heights SNF LLC
|
TN
|
ARC Richmond Place Inc
|
DE
|
ARC Rossmoor Inc
|
TN
|
ARC Roswell LLC
|
DE
|
ARC Santa Catalina Inc
|
TN
|
ARC SCC Inc
|
TN
|
ARC Scottsdale LLC
|
TN
|
ARC Shadowlake LP
|
TN
|
ARC Shavano LP
|
TN
|
ARC Shavano Park Inc
|
TN
|
ARC Somerby Holdings Inc
|
TN
|
ARC Spring Shadow LP
|
TN
|
ARC Sun City Center Inc
|
TN
|
ARC Sun City Golf Course Inc
|
TN
|
ARC Sun City West LLC
|
DE
|
ARC Sweet Life Rosehill LLC
|
TN
|
ARC Sweet Life Shawnee LLC
|
TN
|
ARC Tanglewood GP LLC
|
DE
|
ARC Tanglewood LP
|
DE
|
ARC Tarpon Springs Inc
|
TN
|
ARC Tennessee GP Inc
|
TN
|
ARC Therapy Services LLC
|
TN
|
ARC Tucson LLC
|
DE
|
ARC Victoria LP
|
TN
|
ARC Villages IL LLC
|
DE
|
ARC Westlake Village Inc
|
TN
|
ARC Westlake Village SNF LLC
|
DE
|
ARC Westover Hills LP
|
TN
|
ARC Willowbrook LP
|
TN
|
ARC Willowbrook ME LLC
|
TN
|
ARC Wilora Assisted Living LLC
|
TN
|
ARC Wilora Lake Inc
|
TN
|
ARCLP Charlotte LLC
|
TN
|
ARCPI Holdings Inc
|
DE
|
Asheville Manor LP
|
NC
|
Assisted Living Properties Inc
|
KS
|
BKD AGC Inc.
|
DE
|
BKD Alabama SNF LLC
|
DE
|
BKD Arbors of Santa Rosa LLC
|
DE
|
BKD Ballwin LLC
|
DE
|
BKD Brookdale Place of Brookfield LLC
|
DE
|
BKD Chambrel Holding LLC
|
DE
|
BKD Clare Bridge of Beaverton LLC
|
DE
|
BKD Clare Bridge of Bend LLC
|
DE
|
BKD Clare Bridge of Brookfield LLC
|
DE
|
BKD Clare Bridge of Dublin LLC
|
DE
|
BKD Clare Bridge of Oklahoma City LLC
|
DE
|
BKD Clare Bridge of Oklahoma City SW LLC
|
DE
|
BKD Clare Bridge of Olympia LLC
|
DE
|
BKD Clare Bridge of Spokane LLC
|
DE
|
BKD Clare Bridge of Troutdale LLC
|
DE
|
BKD Clare Bridge of Wichita LLC
|
DE
|
BKD Cortona Park LLC
|
DE
|
BKD FM Holding Company LLC
|
DE
|
BKD FM Nine Holdings LLC
|
DE
|
BKD Freedom Plaza Arizona Peoria LLC
|
DE
|
BKD Gaines Ranch LLC
|
DE
|
BKD GC FM Holdings LLC
|
DE
|
BKD Germantown LLC
|
DE
|
BKD HB Acquisition Sub Inc
|
DE
|
BKD HCN Landlord LLC
|
DE
|
BKD HCN Tenant LLC
|
DE
|
BKD HCR Master Lease 3 Tenant LLC
|
DE
|
BKD Horsham LLC
|
DE
|
BKD Houston Vintage LLC
|
DE
|
BKD Island Lake Holdings LLC
|
DE
|
BKD Kansas Properties LLC
|
DE
|
BKD Lebanon/Southfield LLC
|
DE
|
BKD Management Holdings FC Inc
|
DE
|
BKD Michigan City LLC
|
DE
|
BKD New England Bay LLC
|
DE
|
BKD Oklahoma Management LLC
|
DE
|
BKD Olney LLC
|
DE
|
BKD Owatonna LLC
|
DE
|
BKD Personal Assistance Services LLC
|
DE
|
BKD PHS Investor LLC
|
DE
|
BKD Project 3 Holding Co LLC
|
DE
|
BKD Project 3 Manager LLC
|
DE
|
BKD Robin Run Real Estate Inc
|
DE
|
BKD Roseland LLC
|
DE
|
BKD Sterling House of Bloomington LLC
|
DE
|
BKD Sterling House of Cedar Hill LLC
|
DE
|
BKD Sterling House of Colorado Springs Briargate LLC
|
DE
|
BKD Sterling House of Deland LLC
|
DE
|
BKD Sterling House of Denton Parkway LLC
|
DE
|
BKD Sterling House of Duncan LLC
|
DE
|
BKD Sterling House of Edmond LLC (DE
|
DE
|
BKD Sterling House of Enid LLC
|
DE
|
BKD Sterling House of Junction City LLC
|
DE
|
BKD Sterling House of Kokomo LLC
|
DE
|
BKD Sterling House of Lawton LLC
|
DE
|
BKD Sterling House of Loveland Orchards LLC
|
DE
|
BKD Sterling House of Merrillville LLC
|
DE
|
BKD Sterling House of Midwest City LLC
|
DE
|
BKD Sterling House of Oklahoma City North LLC
|
DE
|
BKD Sterling House of Oklahoma City South LLC
|
DE
|
BKD Sterling House of Palestine LLC
|
DE
|
BKD Sterling House of Ponca City LLC
|
DE
|
BKD Sterling House of Waxahachie LLC
|
DE
|
BKD Sterling House of Wichita Tallgrass LLC
|
DE
|
BKD Sun City Center LaBarc LLC
|
DE
|
BKD Twenty-One Management Company Inc
|
DE
|
BKD Twenty-One Opco Inc
|
DE
|
BKD Twenty-One Propco Inc
|
DE
|
BKD University Park Holding Company LLC
|
DE
|
BKD University Park SNF LLC
|
DE
|
BKD Wynwood of Madison West Real Estate LLC (DE
|
DE
|
BKD Wynwood of Richboro Northhampton LLC
|
DE
|
BLC Acquisitions Inc
|
DE
|
BLC Adrian GC LLC
|
DE
|
BLC Albuquerque GC LLC
|
DE
|
BLC Atrium at San Jose LLC
|
DE
|
BLC Atrium at San Jose LP
|
DE
|
BLC Atrium Jacksonville LLC
|
DE
|
BLC Atrium Jacksonville SNF LLC
|
DE
|
BLC Brendenwood LLC
|
DE
|
BLC Bristol GC LLC
|
DE
|
BLC Brookdale Place of San Marcos LLC
|
DE
|
BLC Brookdale Place of San Marcos LP
|
DE
|
BLC Cedar Springs LLC
|
DE
|
BLC Chancellor Lodi LH LLC
|
DE
|
BLC Chancellor Lodi LP
|
DE
|
BLC Chancellor Murrieta LH LLC
|
DE
|
BLC Chancellor Murrieta LP
|
DE
|
BLC Chancellor Windsor Inc
|
DE
|
BLC Chancellor Windsor LP
|
DE
|
BLC Chatfield LLC
|
DE
|
BLC Club Hill LP
|
DE
|
BLC Crystal Bay LLC
|
DE
|
BLC Cypress Village LLC
|
DE
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BLC Dayton GC LLC
|
DE
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BLC Devonshire of Hoffman Estates LLC
|
DE
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BLC Devonshire of Lisle LLC
|
DE
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BLC Edina Park Plaza LLC
|
DE
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BLC Emerald Crossings LLC
|
DE
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BLC Farmington Hills GC LLC
|
DE
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BLC Federal Way LH LLC
|
DE
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BLC Federal Way LLC
|
DE
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BLC Finance I LLC
|
DE
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BLC Findlay GC LLC
|
DE
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BLC Fort Myers GC LLC
|
DE
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BLC Foxwood Springs LLC
|
DE
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BLC Gables at Farmington LLC
|
DE
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BLC Gables Monrovia Inc
|
DE
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BLC Gables Monrovia LP
|
DE
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BLC Gardens Chino Inc
|
DE
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BLC Gardens Chino LH LLC
|
DE
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BLC Gardens Chino LP
|
DE
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BLC Gardens Santa Monica Inc
|
DE
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BLC Gardens Santa Monica LH LLC
|
DE
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BLC Gardens Santa Monica LP
|
DE
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BLC Gardens Tarzana Holding LLC
|
DE
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BLC Gardens Tarzana Inc
|
DE
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BLC Gardens Tarzana LLC
|
DE
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BLC Gardens Tarzana LP
|
DE
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BLC GC Member LLC
|
DE
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BLC GC Texas LP
|
DE
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BLC GFB Member LLC
|
DE
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BLC Glenwood Gardens AL LH LLC
|
DE
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BLC Glenwood Gardens AL LP
|
DE
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BLC Glenwood Gardens Inc
|
DE
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BLC Glenwood Gardens SNF Inc
|
DE
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BLC Glenwood Gardens SNF LH LLC
|
DE
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BLC Glenwood Gardens SNF LP
|
DE
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BLC Hawthorne Lakes LLC
|
DE
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BLC Inn at the Park Inc
|
DE
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BLC Inn at the Park LP
|
DE
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BLC Jackson Oaks LLC
|
DE
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BLC Kansas City GC LLC
|
DE
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BLC Kenwood of Lake View LLC
|
DE
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BLC Las Vegas GC LLC
|
DE
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BLC Lexington SNF LLC
|
DE
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BLC Liberty FM Holding Company LLC
|
DE
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BLC Lodge at Paulin Inc
|
DE
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BLC Lodge at Paulin LP
|
DE
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BLC Lubbock GC LLC
|
DE
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BLC Lubbock GC LP
|
DE
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BLC Management 3 LLC
|
DE
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BLC Management of Texas LLC
|
DE
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BLC Mirage Inn Inc
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DE
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BLC Mirage Inn LP
|
DE
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BLC Montrose LLC
|
DE
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BLC New York Holdings Inc
|
DE
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BLC Nohl Ranch Inc
|
DE
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BLC Nohl Ranch LP
|
DE
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BLC Novi FM Holding Company LLC
|
DE
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BLC Novi GC LLC
|
DE
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BLC Oak Tree Villa Inc
|
DE
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BLC Oak Tree Villa LP
|
DE
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BLC Ocean House Inc
|
DE
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BLC Ocean House LP
|
DE
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BLC Overland Park GC LLC
|
KS
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BLC Pacific Inn Inc
|
DE
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BLC Pacific Inn LP
|
DE
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BLC Park Place LLC
|
DE
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BLC Patriot Heights LLC
|
DE
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BLC Patriot Heights LP
|
DE
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BLC Pennington Place LLC
|
DE
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BLC Phoenix GC LLC
|
DE
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BLC Pinecastle LLC
|
DE
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BLC Ponce de Leon LLC
|
DE
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BLC Properties I LLC
|
DE
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BLC Ramsey LLC
|
DE
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BLC River Bay Club LLC
|
DE
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BLC Robin Run LLC
|
DE
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BLC Robin Run LP
|
DE
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BLC Roman Court LLC
|
DE
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BLC Roswell LLC
|
DE
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BLC Sand Point LLC
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DE
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BLC Sheridan LLC
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DE
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BLC Southerland Place Germantown LLC
|
DE
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BLC Southerland Place Midlothian LLC
|
DE
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BLC Springfield GC LLC
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DE
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BLC Springs at East Mesa LLC
|
DE
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BLC Tampa GC LLC
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DE
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BLC Tavares GC LLC
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DE
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BLC The Berkshire of Castleton LLC
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DE
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BLC The Berkshire of Castleton LP
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DE
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BLC The Fairways LH LLC
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DE
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BLC The Fairways LLC
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DE
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BLC The Gables at Brighton LLC
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DE
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BLC The Hallmark LLC
|
DE
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BLC The Heritage of Des Plaines LLC
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DE
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BLC The Willows LLC
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DE
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BLC Victorian Manor LLC
|
DE
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BLC Village at Skyline LLC
|
DE
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BLC Wellington Athens LLC
|
DE
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BLC Wellington Cleveland LLC
|
DE
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BLC Wellington Colonial Heights LLC
|
DE
|
BLC Wellington FM Holding Company LLC
|
DE
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BLC Wellington Fort Walton Beach LLC
|
DE
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BLC Wellington Gardens LLC
|
DE
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BLC Wellington Greeneville TN LLC
|
DE
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BLC Wellington Greenville MS LLC
|
DE
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BLC Wellington Hampton Cove LLC
|
DE
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BLC Wellington Hixson LLC
|
DE
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BLC Wellington Johnson City LLC
|
DE
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BLC Wellington Kennesaw LLC
|
DE
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BLC Wellington Kingston LLC
|
DE
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BLC Wellington Maryville LLC
|
DE
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BLC Wellington Newport LLC
|
DE
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BLC Wellington Sevierville LLC
|
DE
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BLC Wellington Shoals LLC
|
DE
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BLC Westwood LLC
|
DE
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BLC Williamsburg LLC
|
DE
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BLC Windsor Place LLC
|
DE
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BLC Woodside Terrace LLC
|
DE
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BLC Woodside Terrace LP
|
DE
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Brookdale Castle Hills LLC
|
DE
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Brookdale Chancellor Inc
|
DE
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Brookdale Corporate LLC
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DE
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Brookdale Cypress Station LLC
|
DE
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Brookdale Development LLC
|
DE
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Brookdale F&B LLC
|
DE
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Brookdale Gardens Holding I LLC
|
DE
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Brookdale Gardens Holding II LLC
|
DE
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Brookdale Gardens Holding III LLC
|
DE
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Brookdale Gardens Inc
|
DE
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Brookdale Lakeway LLC
|
DE
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Brookdale Liberty Inc
|
DE
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Brookdale Living Communities GC LLC
|
DE
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Brookdale Living Communities GC Texas Inc
|
DE
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Brookdale Living Communities Inc
|
DE
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Brookdale Living Communities of Florida Inc
|
DE
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Brookdale Living Communities of Florida PB LLC
|
DE
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Brookdale Living Communities of Florida PO LLC
|
DE
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Brookdale Living Communities of Illinois DNC LLC
|
DE
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Brookdale Living Communities of Illinois GE Inc
|
DE
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Brookdale Living Communities of Illinois GV LLC
|
DE
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Brookdale Living Communities of Illinois Huntley LLC
|
DE
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Brookdale Living Communities of Missouri CC LLC
|
DE
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Brookdale Living Communities of New York BPC Inc
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DE
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Brookdale Living Communities of North Carolina Inc
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DE
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Brookdale Living Communities of Ohio SP LLC
|
DE
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Brookdale Living Communities of Pennsylvania ML Inc
|
DE
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Brookdale Living Communities of Texas Club Hill LLC
|
DE
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Brookdale Management Akron LLC
|
DE
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Brookdale Management DP LLC
|
DE
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Brookdale Management Holding LLC
|
DE
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Brookdale Management II LLC
|
DE
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Brookdale Management of California LLC
|
DE
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Brookdale Management of Florida PO LLC
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DE
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Brookdale Management of Illinois GV LLC
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DE
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Brookdale Management of Maine HC LLC
|
ME
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Brookdale Management of Texas LP
|
DE
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Brookdale Northwest Hills LLC
|
DE
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Brookdale Operations LLC
|
DE
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Brookdale Place at Fall Creek LLC
|
DE
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Brookdale Place at Finneytown LLC
|
DE
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Brookdale Place at Kenwood LLC
|
DE
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Brookdale Place at Oakwood LLC
|
DE
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Brookdale Place at Willow Lake LLC
|
DE
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Brookdale Place of Albuquerque LLC
|
DE
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Brookdale Place of Ann Arbor LLC
|
DE
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Brookdale Place of Augusta LLC
|
DE
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Brookdale Place of Bath LLC
|
DE
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Brookdale Place of Colorado Springs LLC
|
DE
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Brookdale Place of Englewood LLC
|
DE
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Brookdale Place of South Charlotte LLC
|
DE
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Brookdale Place of West Hartford LLC
|
DE
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Brookdale Place of Wilton LLC
|
DE
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Brookdale Place of Wooster LLC
|
DE
|
Brookdale Provident Management LLC
|
DE
|
Brookdale Provident Properties LLC
|
DE
|
Brookdale Real Estate LLC
|
DE
|
Brookdale Senior Housing LLC
|
DE
|
Brookdale Senior Living Communities Inc
|
DE
|
Brookdale Vehicle Holding LLC
|
DE
|
Brookdale Wellington Inc
|
DE
|
Brookdale Wellington Lessee Inc
|
DE
|
Burlington Manor ALZ LLC
|
NC
|
Burlington Manor LLC
|
NC
|
Carolina House of Asheboro LLC
|
NC
|
Carolina House of Bluffton LLC
|
NC
|
Carolina House of Cary LLC
|
NC
|
Carolina House of Chapel Hill LLC
|
NC
|
Carolina House of Charlotte LLC
|
NC
|
Carolina House of Durham LLC
|
NC
|
Carolina House of Elizabeth City LLC
|
NC
|
Carolina House of Florence LLC
|
NC
|
Carolina House of Forest City LLC
|
NC
|
Carolina House of Greenville LLC
|
NC
|
Carolina House of Hilton Head LLC
|
NC
|
Carolina House of Lexington LLC
|
NC
|
Carolina House of Morehead City LLC
|
NC
|
Carolina House of Reidsville LLC
|
NC
|
Carolina House of Smithfield LLC
|
NC
|
Carolina House of the Village of Pinehurst LLC
|
NC
|
Carolina House of Wake Forest LLC
|
NC
|
Cherry Hills Club L.L.C.
|
DE
|
Clare Bridge of Carmel LLC
|
DE
|
Clare Bridge of Virginia Beach Estates LLC
|
DE
|
CMCP Club Hill LP
|
TX
|
CMCP Island Lake LLC
|
DE
|
CMCP Montrose LLC
|
DE
|
CMCP Pinecastle LLC
|
DE
|
CMCP Properties Inc
|
DE
|
CMCP Roswell LLC
|
DE
|
CMCP Texas Inc
|
DE
|
CMCP Williamsburg LLC
|
DE
|
Coventry Care Group, L.L.C.
|
DE
|
Crossings International Corporation
|
WA
|
Crossings Management Inc
|
WA
|
Cypress Arlington & Leawood JV LLC
|
DE
|
Cypress Arlington GP LLC
|
DE
|
Cypress Arlington LP
|
DE
|
Cypress Dallas & Ft. Worth JV LLC
|
DE
|
Cypress Dallas GP LLC
|
DE
|
Cypress Dallas LP
|
DE
|
Cypress Ft. Worth GP LLC
|
DE
|
Cypress Ft. Worth LP
|
DE
|
Cypress Leawood LLC
|
DE
|
Danville Place I LLC
|
VA
|
Danville Place Special Management LLC
|
NC
|
Denver Lowry JV Holding Company LLC
|
DE
|
Denver Lowry JV LLC
|
DE
|
Denver Lowry JV SPE LLC
|
DE
|
Denver Tenant LLC
|
DE
|
Eden Estates LLC
|
NC
|
FEBC ALT Holdings Inc
|
DE
|
FEBC ALT Investors LLC
|
DE
|
FIT Ramsey LLC
|
DE
|
FIT REN Holdings GP Inc
|
DE
|
FIT REN Mirage Inn LP
|
DE
|
FIT REN Nohl Ranch LP
|
DE
|
FIT REN Oak Tree LP
|
DE
|
FIT REN Ocean House LP
|
DE
|
FIT REN Pacific Inn LP
|
DE
|
FIT REN Park LP
|
DE
|
FIT REN Paulin Creek LP
|
DE
|
FIT REN The Gables LP
|
DE
|
Flint Michigan Retirement Housing LLC
|
MI
|
Fort Austin Limited Partnership
|
TX
|
Fortress CCRC Acquisition LLC
|
DE
|
Freedom Group Naples Management Company Inc
|
TN
|
Freedom Village of Bradenton Holding Company LLC
|
DE
|
Freedom Village of Bradenton LLC
|
DE
|
Freedom Village of Holland Michigan
|
MI
|
Freedom Village of Sun City Center Ltd
|
FL
|
FV Bradenton Residential Properties LLC
|
DE
|
FV SPE LLC
|
DE
|
Gaston Manor LLC
|
NC
|
Gaston Place LLC
|
NC
|
Gastonia Village LLC
|
NC
|
Greensboro Manor LP
|
NC
|
Greenwich Bay L.L.C.
|
DE
|
HB Employee Services CCRC L.L.C.
|
DE
|
HB Employee Services L.L.C.
|
DE
|
HBBHT Gen-Par, L.L.C.
|
DE
|
HBBHT Real Estate Limited Partnership
|
DE
|
HBC Gen-Par L.L.C.
|
DE
|
HBC II Manager L.L.C.
|
DE
|
HBC Manager L.L.C.
|
DE
|
HBHB1 Realty L.L.C.
|
DE
|
HBP Leaseco L.L.C.
|
DE
|
HCP HB2 Carrington-Cherry Hills LLC
|
DE
|
HCP HB2 Greenwich-East-West Bay-Olympia Fields LLC
|
DE
|
HCP HB2 Heritage Palmeras LLC
|
DE
|
HCP HB2 Herons Run LLC
|
DE
|
HCP HB2 Manor-Pointe Newport Place LLC
|
DE
|
HCP HB2 Park at Golf Mill LLC
|
DE
|
HCP HB2 Park at Vernon Hills LLC
|
DE
|
HCP HB2 Pinecrest Place LLC
|
DE
|
HCP HB2 Prosperity Oaks LLC
|
DE
|
HCP HB2 Waterside Retirement Estates LLC
|
DE
|
HCP HB3 Clear Lake LLC
|
DE
|
HCP HB3 First Colony LLC
|
DE
|
HCP HB3 Spring Shadows Place LLC
|
DE
|
HCP HB3 Terrace Memorial City LLC
|
DE
|
HCP HB3 Terrace West LLC
|
DE
|
HCP HB3 Willowbrook LLC
|
DE
|
Heartland Retirement Services Inc
|
WI
|
Hickory Manor LLC
|
NC
|
High Point Manor at Skeet Club LP
|
NC
|
High Point Manor LP
|
NC
|
High Point Place LLC
|
NC
|
Homewood at Brookmont Terrace LLC
|
TN
|
Horizon Bay Chartwell II L.L.C.
|
DE
|
Horizon Bay Chartwell L.L.C.
|
DE
|
Horizon Bay HP Management L.L.C.
|
DE
|
Horizon Bay Management CCRC L.L.C.
|
DE
|
Horizon Bay Management II L.L.C.
|
DE
|
Horizon Bay Management L.L.C.
|
DE
|
Horizon Bay Realty L.L.C.
|
DE
|
Innovative Senior Care Home Health of Albuquerque LLC
|
DE
|
Innovative Senior Care Home Health of Boston LLC
|
DE
|
Innovative Senior Care Home Health of Charlotte LLC
|
DE
|
Innovative Senior Care Home Health of Chicago LLC
|
DE
|
Innovative Senior Care Home Health of Detroit LLC
|
DE
|
Innovative Senior Care Home Health of Durham LLC
|
DE
|
Innovative Senior Care Home Health of Edmond LLC
|
DE
|
Innovative Senior Care Home Health of Fort Walton Beach LLC
|
DE
|
Innovative Senior Care Home Health of Hartford LLC
|
DE
|
Innovative Senior Care Home Health of High Point LLC
|
DE
|
Innovative Senior Care Home Health of Holland LLC
|
DE
|
Innovative Senior Care Home Health of Houston LLC
|
DE
|
Innovative Senior Care Home Health of Indianapolis LLC
|
DE
|
Innovative Senior Care Home Health of Kansas LLC
|
DE
|
Innovative Senior Care Home Health of Los Angeles LLC
|
DE
|
Innovative Senior Care Home Health of Minneapolis LLC
|
DE
|
Innovative Senior Care Home Health of Nashville LLC
|
DE
|
Innovative Senior Care Home Health of Ocala LLC
|
DE
|
Innovative Senior Care Home Health of Ohio LLC
|
DE
|
Innovative Senior Care Home Health of Philadelphia LLC
|
DE
|
Innovative Senior Care Home Health of Portland LLC
|
DE
|
Innovative Senior Care Home Health of Rhode Island LLC
|
DE
|
Innovative Senior Care Home Health of Richmond LLC
|
DE
|
Innovative Senior Care Home Health of San Antonio LLC
|
DE
|
Innovative Senior Care Home Health of San Jose LLC
|
DE
|
Innovative Senior Care Home Health of Seattle LLC
|
DE
|
Innovative Senior Care Home Health of St Louis LLC
|
DE
|
Innovative Senior Care Home Health of Tampa LLC
|
DE
|
Innovative Senior Care Home Health of Tulsa LLC
|
DE
|
Innovative Senior Care Hospice of Houston LLC
|
DE
|
Innovative Senior Care of New Jersey LLC
|
DE
|
Innovative Senior Care Rehabilitation Agency of Los Angeles LLC
|
DE
|
Integrated Living Communities of Milledgeville LLC
|
DE
|
Integrated Living Communities of Sarasota L.L.C.
|
DE
|
Integrated Living Communities of West Palm Beach L.L.C.
|
DE
|
Integrated Management Carrington Pointe L.L.C.
|
DE
|
KG Missouri CC Owner LLC
|
DE
|
KGC Operator Inc
|
DE
|
KGC Shoreline Operator Inc
|
DE
|
LaBarc LP
|
TN
|
Lake Seminole Square Management Company Inc
|
TN
|
Leawood Tenant LLC
|
DE
|
Minnetonka Tenant LLC
|
DE
|
Mountain View Tenant LLC
|
DE
|
Niles Lifestyle Gen-Par L.L.C.
|
DE
|
Niles Lifestyle Limited Partnership
|
IL
|
Olympia Fields Senior Housing L.L.C.
|
DE
|
Overland Park Tenant LLC
|
DE
|
Palm Coast Health Care Inc
|
FL
|
Park Place Investments LLC
|
KY
|
Peaks Home Health L.L.C.
|
DE
|
Plaza Professional Pharmacy Inc
|
VA
|
Pomacy Corporation
|
DE
|
Prosperity Gen-Par Inc
|
DE
|
Reynolda Park LP
|
NC
|
Ridgmar Tenant LLC
|
DE
|
Roswell Tenant LLC
|
DE
|
Roswell Therapy Services LLC
|
DE
|
SALI Acquisition 1 A/GP LLC
|
NC
|
SALI Acquisition 1 A/LP LLC
|
NC
|
SALI Acquisition III/GP LLC
|
NC
|
SALI Acquisition III/LP LLC
|
NC
|
SALI Assets LLC
|
NC
|
SALI Management Advisors LLC
|
NC
|
SALI Management Services I LLC
|
NC
|
SALI Management Services II LLC
|
NC
|
SALI Management Services III LLC
|
NC
|
SALI Martinsville LLC
|
NC
|
SALI Monroe Square LLC
|
NC
|
SALI Tenant LLC
|
NC
|
SALI Williamsburg LLC
|
NC
|
Salisbury Gardens LLC
|
NC
|
Senior Lifestyle East Bay Limited Partnership
|
DE
|
Senior Lifestyle Emerald Bay Limited Partnership
|
DE
|
Senior Lifestyle Heritage L.L.C.
|
DE
|
Senior Lifestyle Newport Limited Partnership
|
DE
|
Senior Lifestyle North Bay Limited Partnership
|
DE
|
Senior Lifestyle Pinecrest Limited Partnership
|
DE
|
Senior Lifestyle Prosperity Limited Partnership
|
DE
|
Senior Lifestyle Sakonnet Bay Limited Partnership
|
DE
|
Senior Services Insurance Limited
|
Cayman Islands
|
S-H OpCo Carrington Pointe LLC
|
DE
|
S-H OpCo Cherry Hills LLC
|
DE
|
S-H OpCo Clear Lake LLC
|
DE
|
S-H OpCo East Bay Manor LLC
|
DE
|
S-H OpCo First Colony LLC
|
DE
|
S-H OpCo Greenwich Bay Manor LLC
|
DE
|
S-H OpCo Heritage Palmeras LLC
|
DE
|
S-H OpCo Herons Run LLC
|
DE
|
S-H OpCo Manor at Newport Place LLC
|
DE
|
S-H OpCo Olympia Fields LLC
|
DE
|
S-H OpCo Park at Golf Mill LLC
|
DE
|
S-H OpCo Park at Vernon Hills LLC
|
DE
|
S-H OpCo Pinecrest Place LLC
|
DE
|
S-H OpCo Pointe at Newport Place LLC
|
DE
|
S-H OpCo Prosperity Oaks LLC
|
DE
|
S-H OpCo Spring Shadows Place LLC
|
DE
|
S-H OpCo Terrace Memorial City LLC
|
DE
|
S-H OpCo Terrace West LLC
|
DE
|
S-H OpCo Waterside Retirement Estates LLC
|
DE
|
S-H OpCo West Bay Manor LLC
|
DE
|
S-H OpCo Willowbrook LLC
|
DE
|
S-H Twenty-One OpCo Ventures LLC
|
DE
|
S-H Twenty-One PropCo Ventures LLC
|
DE
|
SHP ARC II LLC
|
DE
|
SLC East Bay Inc
|
DE
|
SLC Emerald Bay Inc
|
DE
|
SLC Newport Inc
|
DE
|
SLC North Bay Inc
|
DE
|
SLC Pinecrest Inc
|
DE
|
SLC Sakonnet Bay Inc
|
DE
|
South Bay Manor L.L.C.
|
DE
|
Southern Assisted Living LLC
|
NC
|
Statesville Manor LP
|
NC
|
Statesville Manor on Peachtree ALZ LLC
|
NC
|
Statesville Place LLC
|
NC
|
Sun City West Tenant LLC
|
DE
|
T Lakes LC
|
FL
|
Tanglewood Tenant LLC
|
DE
|
Trinity Towers Limited Partnership
|
TN
|
TV Arlington Tenant LLC
|
DE
|
Union Park LLC
|
NC
|
Ventana Canyon Tenant LLC
|
DE
|
Weddington Park LP
|
NC
|
West Bay Manor L.L.C.
|
DE
|
Wovencare Systems Inc
|
WI
|
|
/s/ Ernst & Young LLP
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of Brookdale Senior Living Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: February 19, 2013
|
|
/s/ W.E. Sheriff
|
|
|
W.E. Sheriff
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Brookdale Senior Living Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: February 19, 2013
|
|
/s/ Mark W. Ohlendorf
|
|
|
Mark W. Ohlendorf
|
|
|
Chief Financial Officer
|
/s/ W.E. Sheriff
|
|
|
Name:
|
W.E. Sheriff
|
|
Title:
|
Chief Executive Officer
|
|
Date:
|
February 19, 2013
|
|
/s/ Mark W. Ohlendorf
|
|
|
Name:
|
Mark W. Ohlendorf
|
|
Title:
|
Chief Financial Officer
|
|
Date:
|
February 19, 2013
|
|
Other Assets (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | Other assets consist of the following components as of December 31, (dollars in thousands):
|
Segment Information (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting infomration | The following table sets forth selected segment financial and operating data (dollars in thousands):
|
Segment Information (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||||||||||||||||
Number of reportable segments | 6 | 4 | ||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||
Revenue | $ 699,748 | $ 696,482 | $ 690,810 | $ 683,045 | $ 671,971 | $ 615,728 | $ 583,299 | $ 586,920 | $ 2,770,085 | $ 2,457,918 | $ 2,280,535 | |||||||||||||||||||
Segment operating income | 814,150 | 796,781 | 775,334 | |||||||||||||||||||||||||||
General and administrative (including non-cash stock-based compensation expense) | 178,829 | 148,327 | 131,709 | |||||||||||||||||||||||||||
Facility lease expense | 284,025 | 274,858 | 270,905 | |||||||||||||||||||||||||||
Depreciation and amortization | 252,281 | 268,506 | 292,341 | |||||||||||||||||||||||||||
Gain on sale of communities, net | 0 | 0 | (3,298) | |||||||||||||||||||||||||||
Asset impairment | 27,677 | 16,892 | 13,075 | |||||||||||||||||||||||||||
Loss (gain) on acquisition | (636) | 1,982 | 0 | |||||||||||||||||||||||||||
(Gain) loss on facility lease termination | (11,584) | 0 | 4,608 | |||||||||||||||||||||||||||
Income from operations | 11,955 | [1] | 24,606 | [1] | 18,865 | [1] | 26,860 | [1] | 19,812 | [1] | 29,505 | [1] | 28,863 | [1] | 12,000 | [1] | 82,286 | 90,180 | 65,994 | |||||||||||
Total interest income | 4,012 | 3,538 | 2,238 | |||||||||||||||||||||||||||
Total interest expense | 146,783 | 142,178 | 145,722 | |||||||||||||||||||||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 208,412 | 160,131 | 93,681 | |||||||||||||||||||||||||||
Assets by segment | 4,665,978 | 4,466,061 | 4,665,978 | 4,466,061 | 4,530,470 | |||||||||||||||||||||||||
Retirement Centers [Member]
|
||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||
Revenue | 503,902 | [2] | 473,842 | [2] | 463,260 | [2] | ||||||||||||||||||||||||
Segment operating income | 205,585 | [3] | 198,439 | [3] | 196,647 | [3] | ||||||||||||||||||||||||
Depreciation and amortization | 61,060 | 60,275 | 60,869 | |||||||||||||||||||||||||||
Total interest income | 184 | 311 | 19 | |||||||||||||||||||||||||||
Total interest expense | 29,025 | 28,444 | 33,298 | |||||||||||||||||||||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 58,876 | 45,891 | 22,760 | |||||||||||||||||||||||||||
Assets by segment | 1,256,497 | 1,047,388 | 1,256,497 | 1,047,388 | 1,080,410 | |||||||||||||||||||||||||
Assisted Living [Member]
|
||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||
Revenue | 1,013,337 | [2] | 964,585 | [2] | 945,469 | [2] | ||||||||||||||||||||||||
Segment operating income | 361,184 | [3] | 339,928 | [3] | 331,220 | [3] | ||||||||||||||||||||||||
Depreciation and amortization | 81,801 | 82,843 | 93,066 | |||||||||||||||||||||||||||
Total interest income | 9 | 18 | 17 | |||||||||||||||||||||||||||
Total interest expense | 57,634 | 58,453 | 65,086 | |||||||||||||||||||||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 68,675 | 43,955 | 24,687 | |||||||||||||||||||||||||||
Assets by segment | 1,438,934 | 1,451,612 | 1,438,934 | 1,451,612 | 1,448,029 | |||||||||||||||||||||||||
CCRCs - Rental [Member]
|
||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||
Revenue | 385,479 | [2] | 364,095 | [2] | 339,920 | [2] | ||||||||||||||||||||||||
Segment operating income | 106,063 | [3] | 116,849 | [3] | 108,929 | [3] | ||||||||||||||||||||||||
Depreciation and amortization | 31,205 | 30,776 | 30,655 | |||||||||||||||||||||||||||
Total interest income | 28 | 35 | 29 | |||||||||||||||||||||||||||
Total interest expense | 17,336 | 15,324 | 15,433 | |||||||||||||||||||||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 21,916 | 20,615 | 12,077 | |||||||||||||||||||||||||||
Assets by segment | 534,220 | 518,993 | 534,220 | 518,993 | 529,428 | |||||||||||||||||||||||||
CCRCs - Entry Fee [Member]
|
||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||
Revenue | 287,048 | [2] | 283,455 | [2] | 269,056 | [2] | ||||||||||||||||||||||||
Segment operating income | 62,752 | [3] | 69,985 | [3] | 66,085 | [3] | ||||||||||||||||||||||||
Depreciation and amortization | 52,840 | 54,794 | 56,006 | |||||||||||||||||||||||||||
Total interest income | 3,378 | 2,263 | 941 | |||||||||||||||||||||||||||
Total interest expense | 13,792 | 20,316 | 23,867 | |||||||||||||||||||||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 24,890 | 16,255 | 16,314 | |||||||||||||||||||||||||||
Assets by segment | 951,584 | 1,021,938 | 951,584 | 1,021,938 | 1,096,714 | |||||||||||||||||||||||||
ISC [Member]
|
||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||
Revenue | 224,517 | [2] | 205,780 | [2] | 189,968 | [2] | ||||||||||||||||||||||||
Segment operating income | 47,780 | [3] | 57,985 | [3] | 66,862 | [3] | ||||||||||||||||||||||||
Depreciation and amortization | 2,220 | 1,699 | 1,169 | |||||||||||||||||||||||||||
Total interest income | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total interest expense | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 6,037 | 2,715 | 4,260 | |||||||||||||||||||||||||||
Assets by segment | 90,357 | 78,137 | 90,357 | 78,137 | 67,845 | |||||||||||||||||||||||||
Management Services [Member]
|
||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||
Revenue | 355,802 | [2],[4] | 166,161 | [2],[4] | 72,862 | [2],[4] | ||||||||||||||||||||||||
Segment operating income | 30,786 | [3] | 13,595 | [3] | 5,591 | [3] | ||||||||||||||||||||||||
Depreciation and amortization | 23,155 | 38,119 | 50,576 | |||||||||||||||||||||||||||
Total interest income | 413 | 911 | 1,232 | |||||||||||||||||||||||||||
Total interest expense | 28,996 | 19,641 | 8,038 | |||||||||||||||||||||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 28,018 | 30,700 | 13,583 | |||||||||||||||||||||||||||
Assets by segment | $ 394,386 | $ 347,993 | $ 394,386 | $ 347,993 | $ 308,044 | |||||||||||||||||||||||||
|
Supplemental Disclosure of Cash Flow Information (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosure of Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental cash flow information | 19. Supplemental Disclosure of Cash Flow Information
|
Summary of Significant Accounting Policies (Policies)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include BSL and its wholly-owned subsidiaries Brookdale Living Communities, Inc., Brookdale Senior Living Communities, Inc. (formerly known as Alterra Healthcare Corporation) ("Alterra"), Fortress CCRC Acquisition LLC, American Retirement Corporation ("ARC") and BKD HB Acquisition Sub, Inc. In December 2003, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification ("ASC") 810 - Consolidation of Variable Interest Entities ("ASC 810"). ASC 810 addresses the identification of variable interest entities ("VIE") consolidation by business enterprises deemed to be primary beneficiaries in the VIE. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity's economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company performs this analysis on an ongoing basis. At December 31, 2012, the Company did not have any unconsolidated VIEs. Investments in affiliated companies that the Company does not control, but has the ability to exercise significant influence over governance and operation, are accounted for by the equity method. The results of facilities and companies acquired are included in the consolidated financial statements from the effective date of the respective acquisition. All significant intercompany balances and transactions have been eliminated. |
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Use of Estimates | Use of Estimates The preparation of the financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, revenue, goodwill and asset impairments, future service obligations, self-insurance reserves, performance-based compensation, the allowance for doubtful accounts, depreciation and amortization, income taxes and other contingencies. Although these estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from the original estimates. |
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Revenue Recognition | Revenue Recognition Resident Fees Resident fee revenue is recorded when services are rendered and consists of fees for basic housing, support services and fees associated with additional services such as personalized health and assisted living care. Residency agreements are generally for a term of 30 days to one year, with resident fees billed monthly in advance. Revenue for certain skilled nursing services and ancillary charges is recognized as services are provided and is billed monthly in arrears. Entrance Fees Certain of the Company's communities have residency agreements which require the resident to pay an upfront fee prior to occupying the community. In addition, in connection with the Company's MyChoice program, new and existing residents are allowed to pay additional entrance fee amounts in return for a reduced monthly service fee. The non-refundable portion of the entrance fee is recorded as deferred revenue and amortized over the estimated stay of the resident based on an actuarial valuation. The refundable portion of a resident's entrance fee is generally refundable within a certain number of months or days following contract termination or upon the sale of the unit, or in certain agreements, upon the resale of a comparable unit or 12 months after the resident vacates the unit. In such instances the refundable portion of the fee is not amortized and included in refundable entrance fees and deferred revenue. Certain contracts require the refundable portion of the entrance fee plus a percentage of the appreciation of the unit, if any, to be refunded only upon resale of a comparable unit ("contingently refundable"). Upon resale the Company may receive reoccupancy proceeds in the form of additional contingently refundable fees, refundable fees, or non-refundable fees. The Company estimates the amount of reoccupancy proceeds to be received from additional contingently refundable fees or non-refundable fees and records such amount as deferred revenue. The deferred revenue was approximately $46.8 million and $48.1 million at December 31, 2012 and 2011, respectively, and is amortized over the life of the community. All remaining contingently refundable fees not recorded as deferred revenue and amortized are included in refundable entrance fees and deferred revenue. All refundable amounts due to residents at any time in the future, including those recorded as deferred revenue, are classified as current liabilities. The non-refundable portion of entrance fees expected to be earned and recognized in revenue in one year is recorded as a current liability. The balance of the non-refundable portion is recorded as a long-term liability. Community Fees Substantially all community fees received are non-refundable and are recorded initially as deferred revenue. The deferred amounts, including both the deferred revenue and the related direct resident lease origination costs, are amortized over the estimated stay of the resident which is consistent with the implied contractual terms of the resident lease. Management Fees Management fee revenue is recorded as services are provided to the owners of the communities. Revenues are determined by an agreed upon percentage of gross revenues (as defined). Incentives and penalties receivable or payable under management contracts containing these provisions (other than contractual termination fees) are recorded based on the amounts that would be due pursuant to the contractual arrangements if the contracts were terminated on the reporting date. Reimbursed Costs Incurred on Behalf of Managed Communities The Company manages certain communities under contracts which provide for payment to the Company of a monthly management fee plus reimbursement of certain operating expenses. Where the Company is the primary obligor with respect to any managed community operating expenses, the Company recognizes revenue when the goods have been delivered or the service has been rendered and the Company is due reimbursement. This reimbursement revenue is included in "reimbursed costs incurred on behalf of managed communities" on the consolidated statements of operations. The related costs are included in "costs incurred on behalf of managed communities" on the consolidated statements of operations. |
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Purchase Accounting | Purchase Accounting In determining the allocation of the purchase price of companies and communities to net tangible and identified intangible assets acquired and liabilities assumed, the Company makes estimates of fair value using information obtained as a result of pre-acquisition due diligence, marketing, leasing activities and/or independent appraisals. The Company allocates the purchase price of communities based on their fair values in accordance with the provisions of ASC 805 - Business Combinations ("ASC 805"). The determination of fair value involves the use of significant judgment and estimation. The Company determines fair values as follows: Current assets and current liabilities assumed are valued at carryover basis which approximates fair value. Property, plant and equipment are valued utilizing discounted cash flow projections of future revenue and costs, and capitalization and discount rates using current market conditions. The Company allocates a portion of the purchase price to the value of resident leases acquired based on the difference between the communities valued with existing in-place leases adjusted to market rental rates and the communities valued with current leases in place based on current contractual terms. Factors management considers in its analysis include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar resident leases. In estimating carrying costs, management includes estimates of lost rentals during the lease-up period and estimated costs to execute similar leases. The value of in-place leases is amortized to expense over the remaining initial term of the respective leases. Leasehold operating intangibles are valued utilizing discounted cash flow projections that assume certain future revenues and costs over the remaining lease term. The value assigned to leasehold operating intangibles is amortized on a straight-line basis over the lease term. Community purchase options are valued at the estimated value of the underlying community less the cost of the option payment discounted at current market rates. Management contracts and other acquired contracts are valued at a multiple of management fees and operating income or are valued utilizing discounted cash flow projections that assume certain future revenues and costs over the remaining contract. The assets are then amortized over the estimated term of the agreement. Long-term debt assumed is recorded at fair market value based on the current market rates and collateral securing the indebtedness. Any debt premium or discount recorded is amortized over the related debt maturity period. Capital lease obligations are valued based on the present value of the minimum lease payments applying a discount rate equal to the Company's estimated incremental borrowing rate at the date of acquisition. Deferred entrance fee revenue is valued at the estimated cost of providing services to residents over the terms of the current contracts to provide such services. Refundable entrance fees are valued at cost pursuant to the resident lease plus the resident's share of any appreciation of the community unit at the date of acquisition, if applicable. A deferred tax liability is recognized at statutory rates for the difference between the book and tax bases of the acquired assets and liabilities. The excess of the fair value of liabilities assumed and cash paid over the fair value of assets acquired is allocated to goodwill. Contingent consideration is valued using a probability-weighted discounted cash flow model. |
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Deferred Costs | Deferred Costs Deferred financing and lease costs are recorded in other assets and amortized on a straight-line basis, which approximates the effective yield method, over the term of the related debt or lease. |
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Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability approach which requires recognition of deferred tax assets and liabilities for the differences between the financial reporting and tax bases of assets and liabilities. A valuation allowance reduces deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has elected the "with-and-without approach" regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefits would be recognized in additional paid-in capital only if an incremental tax benefit is realized after considering all other tax benefits presently available. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash and cash equivalents, cash and escrow deposits-restricted, derivative financial instruments and marketable securities - restricted are reflected in the accompanying consolidated balance sheets at amounts considered by management to reasonably approximate fair value. Management estimates the fair value of its long-term debt using a discounted cash flow analysis based upon the Company's current borrowing rate for debt with similar maturities and collateral securing the indebtedness. The Company had outstanding debt with a carrying value of approximately $2.7 billion and $2.5 billion as of December 31, 2012 and 2011, respectively. Fair value approximated carrying value in both years. ASC 820 - Fair Value Measurement ("ASC 820") establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company's cash and cash equivalents and cash and escrow deposits-restricted reported on its consolidated balance sheets approximate fair value due to the short maturity. The Company's marketable securities - restricted include marketable securities that are recorded in the financial statements at fair value. The fair value is based primarily on quoted market prices and is classified within Level 1 of the valuation hierarchy. Changes in fair value are recorded, net of tax, as other comprehensive income and included as a component of stockholders' equity. The Company's derivative assets and liabilities include interest rate swaps and caps that effectively convert a portion of the Company's variable rate debt to fixed rate debt. The derivative positions are valued using models developed internally by the respective counterparty that use as their basis readily observable market parameters (such as forward yield curves) and are classified within Level 2 of the valuation hierarchy. The Company considers its own credit risk as well as the credit risk of its counterparties when evaluating the fair value of its derivatives. Any adjustments resulting from credit risk are recorded as a change in fair value of derivatives and amortization in the current period statement of operations. The Company's fair value of debt disclosure is determined based primarily on market interest rate assumptions of similar debt applied to future cash flows under the debt agreements and is classified within Level 2 of the valuation hierarchy. |
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company defines cash and cash equivalents as cash and investments with maturities of 90 days or less when purchased. |
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Cash and Escrow Deposits - Restricted | Cash and Escrow Deposits - Restricted Cash and escrow deposits - restricted consist principally of deposits required by certain lenders and lessors pursuant to the applicable agreement and consist of the following (dollars in thousands):
As of December 31, 2012 and 2011, ten communities located in Illinois are required to make escrow deposits under the Illinois Life Care Facility Act. As of December 31, 2012 and 2011, required deposits were $19.6 million, all of which were made in the form of letters of credit. |
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Accounts Receivable | Accounts Receivable Accounts receivable are reported net of an allowance for doubtful accounts, to represent the Company's estimate of the amount that ultimately will be realized in cash. The allowance for doubtful accounts was $15.3 million and $17.0 million as of December 31, 2012 and 2011, respectively. The adequacy of the Company's allowance for doubtful accounts is reviewed on an ongoing basis, using historical payment trends, write-off experience, analyses of receivable portfolios by payor source and aging of receivables, as well as a review of specific accounts, and adjustments are made to the allowance as necessary. Billings for services under third-party payor programs are recorded net of estimated retroactive adjustments, if any, under reimbursement programs. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods or as final settlements are determined. Contractual or cost related adjustments from Medicare or Medicaid are accrued when assessed (without regard to when the assessment is paid or withheld). Subsequent positive or negative adjustments to these accrued amounts are recorded in net revenues when known. |
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Property, Plant and Equipment and Leasehold Intangibles | Property, Plant and Equipment and Leasehold Intangibles Property, plant and equipment and leasehold intangibles, which include amounts recorded under capital leases, are recorded at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are as follows:
Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Renovations and improvements, which improve and/or extend the useful life of the asset, are capitalized and depreciated over their estimated useful life, or if the renovations or improvements are made with respect to communities subject to an operating lease, over the shorter of the estimated useful life of the renovations or improvements, or the term of the operating lease. Facility operating expense excludes depreciation and amortization directly attributable to the operation of the facility. Long-lived assets (groups) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets held for use are assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset. If estimated future undiscounted net cash flows are less than the carrying amount of the asset then the fair value of the asset is estimated. The impairment expense is determined by comparing the estimated fair value of the asset to its carrying value, with any amount in excess of fair value recognized as an expense in the current period. Undiscounted cash flow projections and estimates of fair value amounts are based on a number of assumptions such as revenue and expense growth rates, estimated holding periods and estimated capitalization rates and discount rates. |
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Marketable Securities - Restricted | Marketable Securities – Restricted Marketable securities - restricted include amounts required to be held in reserve related to the Company's entrance fee CCRCs pursuant to various state insurance regulations and consist of mutual funds holding equities and fixed-income securities. The Company classifies its marketable securities - restricted as available-for-sale. Accordingly, these investments are carried at their estimated fair value with the unrealized gain and losses, net of tax, reported in other comprehensive income. Realized gains and losses from the available-for-sale securities are determined on the specific identification method and are included in interest income on the trade date. A decline in the market value of any security below cost that is deemed to be other than temporary results in a reduction in the carrying amount of the security to fair market value. The impairment is charged to earnings and a new cost basis for the security is established. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. Dividend and interest income are recognized when earned. During the year ended December 31, 2012, the Company liquidated the marketable securities – restricted investments and recognized $0.8 million of realized gains from the transaction, included within interest income in the consolidated statements of operations. The amortized cost basis of the marketable securities – restricted as of December 31, 2011 was $32.7 million. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company follows ASC 350 - Goodwill and Other Intangible Assets, and tests goodwill for impairment annually or whenever indicators of impairment arise. The evaluation is based upon a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned with the reporting unit's carrying value. The fair values used in this evaluation are estimated based upon discounted future cash flow projections for the reporting unit. These cash flow projections are based upon a number of estimates and assumptions such as revenue and expense growth rates, capitalization rates and discount rates. In 2012, the Company adopted the guidance within Accounting Standards Update 2011-08, Intangibles — Goodwill and Other ("ASU 2011-08"), which allows the Company to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under this amendment, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. In 2012, the Company assessed qualitative factors and determined that it was not necessary to perform the two-step quantitative goodwill impairment test. Acquired intangible assets are initially valued at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives and all intangible assets are reviewed for impairment if indicators of impairment arise. The evaluation of impairment for definite-lived intangibles is based upon a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset. If estimated future undiscounted net cash flows are less than the carrying amount of the asset, then the fair value of the asset is estimated. The impairment expense is determined by comparing the estimated fair value of the intangible asset to its carrying value, with any shortfall from fair value recognized as an expense in the current period. Indefinite-lived intangible assets are not amortized but are tested for impairment annually during the fourth quarter or more frequently as required. The impairment test consists of a comparison of the estimated fair value of the indefinite-lived intangible asset with its carrying value. If the carrying amount exceeds its fair value, an impairment loss is recognized for that difference. During 2012, 2011 and 2010, the Company performed its annual impairment review of goodwill and intangible assets and determined that no impairment charge was necessary. Amortization of the Company's definite lived intangible assets is computed using the straight-line method over the estimated useful lives of the assets, which are as follows:
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Stock-Based Compensation | Stock-Based Compensation The Company follows ASC 718 - Stock Compensation ("ASC 718") in accounting for its share-based payments. This guidance requires measurement of the cost of employee services received in exchange for stock compensation based on the grant-date fair value of the employee stock awards. This cost is recognized as compensation expense ratably over the employee's requisite service period. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized when incurred. Certain of the Company's employee stock awards vest only upon the achievement of performance targets. ASC 718 requires recognition of compensation cost only when achievement of performance conditions is considered probable. Consequently, the Company's determination of the amount of stock compensation expense requires a significant level of judgment in estimating the probability of achievement of these performance targets. Additionally, the Company must make estimates regarding employee forfeitures in determining compensation expense. Subsequent changes in actual experience are monitored and estimates are updated as information is available. |
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Convertible Debt Instruments | Convertible Debt Instruments Convertible debt instruments are accounted for under FASB ASC Topic 470-20, Debt – Debt with Conversion and Other Options. This guidance requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion, including partial cash settlement, to separately account for the liability (debt) and equity (conversion option) components of the instruments in a manner that reflects the issuer's estimated non-convertible debt borrowing rate. |
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Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, a variety of financial instruments are used to manage or hedge interest rate risk. The Company has entered into certain interest rate protection and swap agreements to effectively cap or convert floating rate debt to a fixed rate basis. All derivative instruments are recognized as either assets or liabilities in the consolidated balance sheets at fair value. The change in mark-to-market of the value of the derivative is recorded as an adjustment to income. Derivative contracts are not entered into for trading or speculative purposes. Furthermore, the Company has a policy of only entering into contracts with major financial institutions based upon their credit rating and other factors. Under certain circumstances, the Company may be required to replace a counterparty in the event that the counterparty does not maintain a specified credit rating. |
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Obligation to Provide Future Services | Obligation to Provide Future Services Annually, the Company calculates the present value of the net cost of future services and the use of communities to be provided to current residents of certain of its CCRCs and compares that amount with the balance of non-refundable deferred revenue from entrance fees received. If the present value of the net cost of future services and the use of communities exceeds the related anticipated revenues including non-refundable deferred revenue from entrance fees, a liability is recorded (obligation to provide future services and use of communities) with a corresponding charge to income. |
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Self-Insurance Liability Accruals | Self-Insurance Liability Accruals The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the Company maintains general liability and professional liability insurance policies for its owned, leased and managed communities under a master insurance program, the Company's current policies provide for deductibles for each and every claim. As a result, the Company is, in effect, self-insured for claims that are less than the deductible amounts. In addition, the Company maintains a large-deductible workers compensation program and a self-insured employee medical program. The Company reviews the adequacy of its accruals related to these liabilities on an ongoing basis, using historical claims, actuarial valuations, third party administrator estimates, consultants, advice from legal counsel and industry data, and adjusts accruals periodically. Estimated costs related to these self-insurance programs are accrued based on known claims and projected claims incurred but not yet reported. Subsequent changes in actual experience are monitored and estimates are updated as information is available. Self-Insurance Liability Accruals The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the Company maintains general liability and professional liability insurance policies for its owned, leased and managed communities under a master insurance program, the Company's current policies provide for deductibles for each and every claim. As a result, the Company is, in effect, self-insured for claims that are less than the deductible amounts. In addition, the Company maintains a large-deductible workers compensation program and a self-insured employee medical program. The Company reviews the adequacy of its accruals related to these liabilities on an ongoing basis, using historical claims, actuarial valuations, third party administrator estimates, consultants, advice from legal counsel and industry data, and adjusts accruals periodically. Estimated costs related to these self-insurance programs are accrued based on known claims and projected claims incurred but not yet reported. Subsequent changes in actual experience are monitored and estimates are updated as information is available. |
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Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures In accordance with ASC 810, the general partner or managing member of a venture consolidates the venture unless the limited partners or other members have either (1) the substantive ability to dissolve the venture or otherwise remove the general partner or managing member without cause or (2) substantive participating rights in significant decisions of the venture, including authorizing operating and capital decisions of the venture, including budgets, in the ordinary course of business. The Company has reviewed all ventures where it is the general partner or managing member and has determined that in all cases the limited partners or other members have substantive participating rights such as those set forth above and, therefore, no ventures are consolidated. The Company's reported share of earnings is adjusted for the impact, if any, of basis differences between its carrying value of the equity investment and its share of the venture's underlying assets. The Company generally does not have future requirements to contribute additional capital over and above the original capital commitments, and therefore, the Company discontinues applying the equity method of accounting when its investment is reduced to zero barring an expectation of an imminent return to profitability. If the venture subsequently reports net income, the equity method of accounting is resumed only after the Company's share of that net income equals the share of net losses not recognized during the period the equity method was suspended. When the majority equity partner in one of the Company's ventures sells its equity interest to a third party, the venture frequently refinances its senior debt and distributes the net proceeds to the equity partners. All distributions received by the Company are first recorded as a reduction of the Company's investment. Next, the Company records a liability for any contractual or implied future financial support to the venture including obligations in its role as a general partner. Any remaining distributions are recorded as the Company's share of earnings and return on investment in unconsolidated ventures in the consolidated statements of operations. The Company evaluates realization of its investment in ventures accounted for using the equity method if circumstances indicate that the Company's investment is other than temporarily impaired. |
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Community Leases | Community Leases The Company, as lessee, makes a determination with respect to each of the community leases whether each should be accounted for as an operating lease or capital lease. The classification criteria is based on estimates regarding the fair value of the leased community, minimum lease payments, effective cost of funds, the economic life of the community and certain other terms in the lease agreements. In a business combination, the Company assumes the lease classification previously determined by the prior lessee absent a modification, as determined by ASC 840 – Leases ("ASC 840"), in the assumed lease agreement. Payments made under operating leases are accounted for in the Company's consolidated statements of operations as lease expense for actual rent paid plus or minus a straight-line adjustment for estimated minimum lease escalators and amortization of deferred gains in situations where sale-leaseback transactions have occurred. For communities under capital lease and lease financing obligation arrangements, a liability is established on the Company's consolidated balance sheets representing the present value of the future minimum lease payments and a corresponding long-term asset is recorded in property, plant and equipment and leasehold intangibles in the consolidated balance sheets. The asset is depreciated over the remaining lease term unless there is a bargain purchase option in which case the asset is depreciated over the useful life. Leasehold improvements purchased during the term of the lease are amortized over the shorter of their economic life or the lease term. All of the Company's leases contain fixed or formula-based rent escalators. To the extent that the escalator increases are tied to a fixed index or rate, lease payments are accounted for on a straight-line basis over the life of the lease. In addition, all rent-free or rent holiday periods are recognized in lease expense on a straight-line basis over the lease term, including the rent holiday period. Sale-leaseback accounting is applied to transactions in which an owned community is sold and leased back from the buyer. Under sale-leaseback accounting, the Company removes the community and related liabilities from the consolidated balance sheets. Gain on the sale is deferred and recognized as a reduction of facility lease expense for operating leases and a reduction of interest expense for capital leases. For leases in which the Company is involved with the construction of the building, the Company accounts for the lease during the construction period under the provisions of ASC 840. If the Company concludes that it has substantively all of the risks of ownership during construction of a leased property and therefore is deemed the owner of the project for accounting purposes, it records an asset and related financing obligation for the amount of total project costs related to construction in progress. Once construction is complete, the Company considers the requirements under ASC 840-40 – Leases – Sale-Leaseback Transactions. If the arrangement does not qualify for sale-leaseback accounting, the Company continues to amortize the financing obligation and depreciate the building over the lease term. |
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Treasury Stock | Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders' equity. |
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New Accounting Pronouncements | New Accounting Pronouncements In June 2011, the FASB issued Accounting Standards Update ("ASU") 2011-05, Presentation of Comprehensive Income ("ASU 2011-05"). The guidance in ASU 2011-05 is effective for public companies for fiscal years, and interim periods within those years, beginning after December 15, 2011 and requires the components of net income and other comprehensive income and total comprehensive income for each interim period. The Company adopted the provisions of this update as of January 1, 2012 and incorporated the provisions of this update to its consolidated financial statements upon adoption. The adoption of this update did not have an impact on the Company's financial condition or results of operations. In September 2011, the FASB issued ASU 2011-08, Intangibles — Goodwill and Other ("ASU 2011-08"). ASU 2011-08 amends current guidance to allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under this amendment, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. ASU 2011-08 applies to all companies that have goodwill reported in their financial statements. The provisions of ASU 2011-08 are effective for the Company in 2012. The adoption of this update did not have an impact on the Company's financial condition or results of operations. In July 2012, the FASB issued ASU 2012-01, Continuing Care Retirement Communities — Refundable Advance Fees ("ASU 2012-01"). ASU 2012-01 amends the situations in which recognition of deferred revenue for refundable advance fees is appropriate. Under this amendment, refundable advance fees that are contingent upon reoccupancy by a subsequent resident but are not limited to the proceeds of reoccupancy should be accounted for and reported as a liability. The guidance in ASU 2012-01 is effective for public companies for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company is currently evaluating the impact this provision will have on its consolidated financial statements. In July 2012, the FASB issued ASU 2012-02, Intangibles — Goodwill and Other ("ASU 2012-02"). ASU 2012-02 amends current guidance to allow an entity to first assess qualitative factors to determine whether it is necessary to perform the annual quantitative indefinite-lived intangible asset impairment test. Under this amendment, an entity would not be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. ASU 2012-02 applies to all companies that have indefinite-lived intangible assets reported in their financial statements. The provisions of ASU 2012-02 are effective for annual reporting periods beginning after September 15, 2012. The Company has not yet adopted this pronouncement, but does not believe it will have an impact on the Company's consolidated financial statements. |
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Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations. |
Other Assets (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Notes receivable | $ 34,968 | $ 32,844 |
Deferred costs, net | 24,517 | 26,032 |
Lease security deposits | 38,544 | 36,748 |
Other | 15,286 | 14,310 |
Total | $ 113,315 | $ 109,934 |
Quarterly Results of Operations (Unaudited) (Details) (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||||||||||||
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Dec. 31, 2012
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
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Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||||||||||||
Revenue | $ 699,748,000 | $ 696,482,000 | $ 690,810,000 | $ 683,045,000 | $ 671,971,000 | $ 615,728,000 | $ 583,299,000 | $ 586,920,000 | $ 2,770,085,000 | $ 2,457,918,000 | $ 2,280,535,000 | ||||||||||
Income from operations | 11,955,000 | [1] | 24,606,000 | [1] | 18,865,000 | [1] | 26,860,000 | [1] | 19,812,000 | [1] | 29,505,000 | [1] | 28,863,000 | [1] | 12,000,000 | [1] | 82,286,000 | 90,180,000 | 65,994,000 | ||
Loss before income taxes | (25,396,000) | (11,132,000) | (17,796,000) | (9,277,000) | (14,622,000) | (6,523,000) | (21,231,000) | (23,459,000) | (63,601,000) | (65,835,000) | (80,333,000) | ||||||||||
Net loss | (24,487,000) | (12,010,000) | (18,810,000) | (10,338,000) | (14,875,000) | (7,036,000) | (33,959,000) | (12,305,000) | (65,645,000) | (68,175,000) | (48,901,000) | ||||||||||
Weighted average basic and diluted loss per share (in dollars per share) | $ (0.2) | $ (0.1) | $ (0.15) | $ (0.09) | $ (0.12) | $ (0.06) | $ (0.28) | $ (0.1) | $ (0.54) | $ (0.56) | $ (0.41) | ||||||||||
Weighted average shares used in computing basic and diluted loss per share (in shares) | 122,608 | 122,493 | 121,708 | 121,145 | 120,951 | 121,616 | 121,280 | 120,792 | |||||||||||||
Non-cash impairment charges included in quarterly results | $ 19,300,000 | $ 7,200,000 | $ 1,100,000 | $ 2,000,000 | $ 14,800,000 | ||||||||||||||||
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Share Repurchase Program
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12 Months Ended |
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Dec. 31, 2012
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Share Repurchase Program [Abstract] | |
Share Repurchase Program | 17. Share Repurchase Program On August 11, 2011, the Company's board of directors approved a share repurchase program that authorizes the Company to purchase up to $100.0 million in the aggregate of the Company's common stock. Purchases may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or block trades, or by any combination of these methods, in accordance with applicable insider trading and other securities laws and regulations. The size, scope and timing of any purchases will be based on business, market and other conditions and factors, including price, regulatory and contractual requirements or consents, and capital availability. The repurchase program does not obligate the Company to acquire any particular amount of common stock and the program may be suspended, modified or discontinued at any time at the Company's discretion without prior notice. Shares of stock repurchased under the program will be held as treasury shares. Pursuant to this authorization, during the year ended December 31, 2011, the Company purchased 1,217,100 shares at a cost of approximately $17.6 million. No shares were purchased pursuant to this authorization during the year ended December 31, 2012. As of December 30, 2012, approximately $82.4 million remains available under this share repurchase authorization. |
Description of Business and Organization (Details)
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Dec. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2005
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Jun. 28, 2005
|
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | 5,000,000 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | 5,000,000 |
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