Condensed Consolidating Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Consolidating Information (Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2013

	Ventas, Inc.		Ventas Realty (1)			Ventas Subsidiaries		Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	7,009	$	374,590		$	18,161,872	$	—		$	18,543,471
Cash and cash equivalents	28,169		—			66,647		—			94,816
Escrow deposits and restricted cash	2,104		1,211			81,342		—			84,657
Deferred financing costs, net	758		54,022			7,435		—			62,215
Investment in and advances to affiliates	10,481,466		3,201,998			—		(13,683,464		)	—
Other assets	29,450		14,102			902,783		—			946,335
Total assets	$	10,548,956	$	3,645,923		$	19,220,079	$	(13,683,464	)	$	19,731,494
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—	$	6,336,240		$	3,028,752	$	—		$	9,364,992
Intercompany loans	4,247,853		(4,682,119		)	434,266		—			—
Accrued interest	—		39,561			14,788		—			54,349
Accounts payable and other liabilities	94,495		28,152			878,868		—			1,001,515
Deferred income taxes	250,167		—			—		—			250,167
Total liabilities	4,592,515		1,721,834			4,356,674		—			10,671,023
Redeemable OP unitholder and noncontrolling interests	—		—			156,660		—			156,660
Total equity	5,956,441		1,924,089			14,706,745		(13,683,464		)	8,903,811
Total liabilities and equity	$	10,548,956	$	3,645,923		$	19,220,079	$	(13,683,464	)	$	19,731,494

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2012

	Ventas, Inc.		Ventas Realty (1)			Ventas Subsidiaries		Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	7,615	$	412,362		$	17,421,966	$	—		$	17,841,943
Cash and cash equivalents	16,734		—			51,174		—			67,908
Escrow deposits and restricted cash	7,565		1,952			96,396		—			105,913
Deferred financing costs, net	757		34,044			7,750		—			42,551
Investment in and advances to affiliates	8,979,830		3,201,998			—		(12,181,828		)	—
Other assets	26,282		4,043			891,360		—			921,685
Total assets	$	9,038,783	$	3,654,399		$	18,468,646	$	(12,181,828	)	$	18,980,000
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—	$	4,570,296		$	3,843,350	$	—		$	8,413,646
Intercompany loans	2,061,334		(2,791,885		)	730,551		—			—
Accrued interest	—		24,045			23,520		—			47,565
Accounts payable and other liabilities	99,631		7,776			887,749		—			995,156
Deferred income taxes	259,715		—			—		—			259,715
Total liabilities	2,420,680		1,810,232			5,485,170		—			9,716,082
Redeemable OP unitholder and noncontrolling interests	119,244		—			55,311		—			174,555
Total equity	6,498,859		1,844,167			12,928,165		(12,181,828		)	9,089,363
Total liabilities and equity	$	9,038,783	$	3,654,399		$	18,468,646	$	(12,181,828	)	$	18,980,000

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Year Ended December 31, 2013

	Ventas, Inc.			Ventas Realty (1)			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	2,486		$	277,779		$	1,045,719		$	—		$	1,325,984
Resident fees and services	—			—			1,406,005			—			1,406,005
Medical office building and other services revenues	—			(11		)	17,820			—			17,809
Income from loans and investments	1,262			908			56,038			—			58,208
Equity earnings in affiliates	449,677			—			800			(450,477		)	—
Interest and other income	2,963			26			(942		)	—			2,047
Total revenues	456,388			278,702			2,525,440			(450,477		)	2,810,053
Expenses:
Interest	(2,167		)	147,158			189,493			—			334,484
Depreciation and amortization	4,990			30,007			686,962			—			721,959
Property-level operating expenses	—			514			1,109,118			—			1,109,632
Medical office building services costs	—			—			8,315			—			8,315
General, administrative and professional fees	2,695			21,160			91,251			—			115,106
Loss (gain) on extinguishment of debt, net	3			1,510			(312		)	—			1,201
Merger-related expenses and deal costs	11,917			—			9,717			—			21,634
Other	884			44			17,804			—			18,732
Total expenses	18,322			200,393			2,112,348			—			2,331,063
Income from continuing operations before income (loss) from unconsolidated entities, income taxes and noncontrolling interest	438,066			78,309			413,092			(450,477		)	478,990
Income (loss) from unconsolidated entities	—			673			(1,181		)	—			(508		)
Income tax benefit	11,828			—			—			—			11,828
Income from continuing operations	449,894			78,982			411,911			(450,477		)	490,310
Discontinued operations	3,615			1,012			(40,048		)	—			(35,421		)
Net income	453,509			79,994			371,863			(450,477		)	454,889
Net income attributable to noncontrolling interest	—			—			1,380			—			1,380
Net income attributable to common stockholders	$	453,509		$	79,994		$	370,483		$	(450,477	)	$	453,509

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Year Ended December 31, 2012

	Ventas, Inc.			Ventas Realty (1)		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	2,538		$	272,506	$	903,805		$	—		$	1,178,849
Resident fees and services	—			—		1,227,124			—			1,227,124
Medical office building and other services revenues	—			—		20,741			—			20,741
Income from loans and investments	2,944			1,871		35,098			—			39,913
Equity earnings in affiliates	322,660			—		998			(323,658		)	—
Interest and other income	476			25		605			—			1,106
Total revenues	328,618			274,402		2,188,371			(323,658		)	2,467,733
Expenses:
Interest	(3,858		)	92,597		199,537			—			288,276
Depreciation and amortization	2,777			35,414		676,314			—			714,505
Property-level operating expenses	—			535		965,887			—			966,422
Medical office building services costs	—			—		9,883			—			9,883
General, administrative and professional fees	3,682			30,317		64,511			—			98,510
Loss (gain) on extinguishment of debt, net	—			39,737		(2,097		)	—			37,640
Merger-related expenses and deal costs	53,199			—		9,984			—			63,183
Other	78			—		6,862			—			6,940
Total expenses	55,878			198,600		1,930,881			—			2,185,359
Income from continuing operations before income (loss) from unconsolidated entities, income taxes and noncontrolling interest	272,740			75,802		257,490			(323,658		)	282,374
Income (loss) from unconsolidated entities	—			18,266		(112		)	—			18,154
Income tax benefit	6,282			—		—			—			6,282
Income from continuing operations	279,022			94,068		257,378			(323,658		)	306,810
Discontinued operations	83,778			5,722		(34,535		)	—			54,965
Net income	362,800			99,790		222,843			(323,658		)	361,775
Net loss attributable to noncontrolling interest	—			—		(1,025		)	—			(1,025		)
Net income attributable to common stockholders	$	362,800		$	99,790	$	223,868		$	(323,658	)	$	362,800

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Year Ended December 31, 2011

	Ventas, Inc.			Ventas Realty (1)			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	2,471		$	265,039		$	526,292		$	—		$	793,802
Resident fees and services	—			—			865,800			—			865,800
Medical office building and other services revenues	—			—			36,471			—			36,471
Income from loans and investments	6,305			8,570			19,540			—			34,415
Equity earnings in affiliates	231,779			—			1,447			(233,226		)	—
Interest and other income	208			57			951			—			1,216
Total revenues	240,763			273,666			1,450,501			(233,226		)	1,731,704
Expenses:
Interest	(1,897		)	66,633			159,068			—			223,804
Depreciation and amortization	1,714			30,473			412,006			—			444,193
Property-level operating expenses	—			510			644,572			—			645,082
Medical office building services costs	—			—			27,082			—			27,082
General, administrative and professional fees	(5,322		)	29,336			50,523			—			74,537
Loss on extinguishment of debt, net	2,071			8,769			16,764			—			27,604
Litigation proceeds, net	(202,259		)	—			—			—			(202,259		)
Merger-related expenses and deal costs	111,845			—			42,078			—			153,923
Other	778			—			6,492			—			7,270
Total expenses	(93,070		)	135,721			1,358,585			—			1,401,236
Income from continuing operations before loss from unconsolidated entities, income taxes and noncontrolling interest	333,833			137,945			91,916			(233,226		)	330,468
Loss from unconsolidated entities	—			(52		)	—			—			(52		)
Income tax benefit	30,660			—			—			—			30,660
Income from continuing operations	364,493			137,893			91,916			(233,226		)	361,076
Discontinued operations	—			6,789			(4,604		)	—			2,185
Net income	364,493			144,682			87,312			(233,226		)	363,261
Net loss attributable to noncontrolling interest	—			—			(1,232		)	—			(1,232		)
Net income attributable to common stockholders	$	364,493		$	144,682		$	88,544		$	(233,226	)	$	364,493

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Year Ended December 31, 2013

	Ventas, Inc.			Ventas Realty (1)		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	453,509		$	79,994	$	371,863		$	(450,477	)	$	454,889
Other comprehensive loss:
Foreign currency translation	—			—		(5,422		)	—			(5,422		)
Change in unrealized gain on marketable debt securities	(1,023		)	—		—			—			(1,023		)
Other	—			—		2,750			—			2,750
Total other comprehensive loss	(1,023		)	—		(2,672		)	—			(3,695		)
Comprehensive income	452,486			79,994		369,191			(450,477		)	451,194
Comprehensive income attributable to noncontrolling interest	—			—		1,380			—			1,380
Comprehensive income attributable to common stockholders	$	452,486		$	79,994	$	367,811		$	(450,477	)	$	449,814

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Year Ended December 31, 2012

	Ventas, Inc.			Ventas Realty (1)		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	362,800		$	99,790	$	222,843		$	(323,658	)	$	361,775
Other comprehensive (loss) income:
Foreign currency translation	—			—		2,375			—			2,375
Change in unrealized gain on marketable debt securities	(1,296		)	—		—			—			(1,296		)
Other	—			—		213			—			213
Total other comprehensive (loss) income	(1,296		)	—		2,588			—			1,292
Comprehensive income	361,504			99,790		225,431			(323,658		)	363,067
Comprehensive loss attributable to noncontrolling interest	—			—		(1,025		)	—			(1,025		)
Comprehensive income attributable to common stockholders	$	361,504		$	99,790	$	226,456		$	(323,658	)	$	364,092

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Year Ended December 31, 2011

	Ventas, Inc.			Ventas Realty (1)		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	364,493		$	144,682	$	87,312		$	(233,226	)	$	363,261
Other comprehensive loss:
Foreign currency translation	—			—		(1,944		)	—			(1,944		)
Change in unrealized gain on marketable debt securities	(2,691		)	—		—			—			(2,691		)
Other	—			—		(171		)	—			(171		)
Total other comprehensive loss	(2,691		)	—		(2,115		)	—			(4,806		)
Comprehensive income	361,802			144,682		85,197			(233,226		)	358,455
Comprehensive loss attributable to noncontrolling interest	—			—		(1,232		)	—			(1,232		)
Comprehensive income attributable to common stockholders	$	361,802		$	144,682	$	86,429		$	(233,226	)	$	359,687

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2013

	Ventas, Inc.			Ventas Realty (1)			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(1,362	)	$	129,023		$	1,067,094		$	—	$	1,194,755
Net cash (used in) provided by investing activities	(1,416,336		)	22,835			110,741			—		(1,282,760		)
Cash flows from financing activities:
Net change in borrowings under credit facilities	—			(168,000		)	3,971			—		(164,029		)
Proceeds from debt	—			2,330,435			437,111			—		2,767,546
Repayment of debt	—			(400,000		)	(1,392,492		)	—		(1,792,492		)
Net change in intercompany debt	2,156,519			(1,890,234		)	(266,285		)	—		—
Payment of deferred financing costs	—			(29,586		)	(1,691		)	—		(31,277		)
Issuance of common stock, net	141,343			—			—			—		141,343
Cash distribution (to) from affiliates	(69,525		)	5,610			63,915			—		—
Cash distribution to common stockholders	(802,123		)	—			—			—		(802,123		)
Cash distribution to redeemable OP unitholders	(5,040		)	—			—			—		(5,040		)
Purchases of redeemable OP units	(659		)	—			—			—		(659		)
Contributions from noncontrolling interest	—			—			2,395			—		2,395
Distributions to noncontrolling interest	—			—			(9,286		)	—		(9,286		)
Other	8,618			—			—			—		8,618
Net cash provided by (used in) financing activities	1,429,133			(151,775		)	(1,162,362		)	—		114,996
Net increase in cash and cash equivalents	11,435			83			15,473			—		26,991
Effect of foreign currency translation on cash and cash equivalents	—			(83		)	—			—		(83		)
Cash and cash equivalents at beginning of period	16,734			—			51,174			—		67,908
Cash and cash equivalents at end of period	$	28,169		$	—		$	66,647		$	—	$	94,816

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2012

	Ventas, Inc.			Ventas Realty (1)			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(761	)	$	193,544		$	800,033		$	—	$	992,816
Net cash used in investing activities	(1,364,125		)	(100		)	(805,464		)	—		(2,169,689		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facility	—			92,000			(7,062		)	—		84,938
Proceeds from debt	—			2,364,360			346,045			—		2,710,405
Repayment of debt	—			(521,527		)	(671,496		)	—		(1,193,023		)
Net change in intercompany debt	2,151,815			(2,085,801		)	(66,014		)	—		—
Payment of deferred financing costs	—			(21,404		)	(2,366		)	—		(23,770		)
Issuance of common stock, net	342,469			—			—			—		342,469
Cash distribution (to) from affiliates	(398,071		)	(21,132		)	419,203			—		—
Cash distribution to common stockholders	(728,546		)	—			—			—		(728,546		)
Cash distribution to redeemable OP unitholders	(4,446		)	—			—			—		(4,446		)
Purchases of redeemable OP units	(4,601		)	—			—			—		(4,601		)
Contributions from noncontrolling interest	—			—			38			—		38
Distributions to noncontrolling interest	—			—			(5,215		)	—		(5,215		)
Other	20,665			—			—			—		20,665
Net cash provided by (used in) financing activities	1,379,285			(193,504		)	13,133			—		1,198,914
Net increase (decrease) in cash and cash equivalents	14,399			(60		)	7,702			—		22,041
Effect of foreign currency translation on cash and cash equivalents	—			60			—			—		60
Cash and cash equivalents at beginning of period	2,335			—			43,472			—		45,807
Cash and cash equivalents at end of period	$	16,734		$	—		$	51,174		$	—	$	67,908

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2011

	Ventas, Inc.			Ventas Realty (1)			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash provided by operating activities	$	124,784		$	199,431		$	448,982		$	—	$	773,197
Net cash (used in) provided by investing activities	(618,663		)	(500,879		)	122,103			—		(997,439		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities	—			405,000			132,452			—		537,452
Proceeds from debt	(230,000		)	1,069,374			504,266			—		1,343,640
Repayment of debt	—			(206,500		)	(1,182,462		)	—		(1,388,962		)
Net change in intercompany debt	1,363,963			(1,559,518		)	195,555			—		—
Payment of deferred financing costs	—			(19,661		)	(379		)	—		(20,040		)
Issuance of common stock, net	299,847			—			—			—		299,847
Cash distribution (to) from affiliates	(417,763		)	612,798			(195,035		)	—		—
Cash distribution to common stockholders	(521,046		)	—			—			—		(521,046		)
Cash distribution to redeemable OP unitholders	(2,359		)	—			—			—		(2,359		)
Purchases of redeemable OP units	—			—			(185		)	—		(185		)
Contributions from noncontrolling interest	—			—			2			—		2
Distributions to noncontrolling interest	—			—			(2,556		)	—		(2,556		)
Other	2,489			—			—			—		2,489
Net cash provided by (used in) financing activities	495,131			301,493			(548,342		)	—		248,282
Net increase in cash and cash equivalents	1,252			45			22,743			—		24,040
Effect of foreign currency translation on cash and cash equivalents	—			(45		)	—			—		(45		)
Cash and cash equivalents at beginning of period	1,083			—			20,729			—		21,812
Cash and cash equivalents at end of period	$	2,335		$	—		$	43,472		$	—	$	45,807

(1) Certain of Ventas Realty’s outstanding senior notes were issued jointly with our 100% owned subsidiary, Ventas Capital Corporation, which has no assets or operations.