CONDENSED CONSOLIDATING INFORMATION (Unaudited)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONDENSED CONSOLIDATING INFORMATION (Unaudited)

NOTE 16—CONDENSED CONSOLIDATING INFORMATION

Ventas, Inc. has fully and unconditionally guaranteed the obligation to pay principal and interest with respect to the outstanding senior notes issued by our 100% owned subsidiary, Ventas Realty, including the senior notes that were jointly issued with Ventas Capital Corporation. Ventas Capital Corporation is a direct 100% owned subsidiary of Ventas Realty that has no assets or operations, but was formed in 2002 solely to facilitate offerings of senior notes by a limited partnership. None of our other subsidiaries (such subsidiaries, excluding Ventas Realty and Ventas Capital Corporation, the “Ventas Subsidiaries”) is obligated with respect to Ventas Realty’s outstanding senior notes. Certain of Ventas Realty’s outstanding senior notes reflected in our condensed consolidating information were issued jointly with Ventas Capital Corporation.

Ventas, Inc. has also fully and unconditionally guaranteed the obligation to pay principal and interest with respect to the outstanding senior notes issued by our 100% owned subsidiary, Ventas Canada Finance Limited. None of our other subsidiaries is obligated with respect to Ventas Canada Finance Limited’s outstanding senior notes, all of which were issued on a private placement basis in Canada.

In connection with the acquisition of Nationwide Health Properties, Inc. (“NHP”), our 100% owned subsidiary, Nationwide Health Properties, LLC (“NHP LLC”), as successor to NHP, assumed the obligation to pay principal and interest with respect to the outstanding senior notes issued by NHP. Neither we nor any of our subsidiaries (other than NHP LLC) is obligated with respect to any of NHP LLC’s outstanding senior notes.

Under certain circumstances, contractual and legal restrictions, including those contained in the instruments governing our subsidiaries’ outstanding mortgage indebtedness, may restrict our ability to obtain cash from our subsidiaries for the purpose of meeting our debt service obligations, including our payment guarantees with respect to Ventas Realty’s and Ventas Canada Finance Limited’s senior notes.

The following pages summarize our condensed consolidating information as of June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 2018 and 2017.

CONDENSED CONSOLIDATING BALANCE SHEET

	As of June 30, 2018
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	3,671		$	116,666		$	20,643,376		$	—		$	20,763,713
Cash and cash equivalents	10,292			—			83,392			—			93,684
Escrow deposits and restricted cash	7,573			128			56,718			—			64,419
Investment in and advances to affiliates	14,959,960			2,723,780			—			(17,683,740		)	—
Goodwill	—			—			1,034,274			—			1,034,274
Assets held for sale	—			—			15,567			—			15,567
Other assets	52,886			10,030			664,561			—			727,477
Total assets	$	15,034,382		$	2,850,604		$	22,497,888		$	(17,683,740	)	$	22,699,134
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—		$	8,041,058		$	2,361,839		$	—		$	10,402,897
Intercompany loans	7,358,514			(5,198,356		)	(2,160,158		)	—			—
Accrued interest	(8,262		)	77,506			23,868			—			93,112
Accounts payable and other liabilities	356,239			31,034			746,629			—			1,133,902
Liabilities related to assets held for sale	—			—			896			—			896
Deferred income taxes	594			—			240,347			—			240,941
Total liabilities	7,707,085			2,951,242			1,213,421			—			11,871,748
Redeemable OP Unitholder and noncontrolling interests	12,242			—			137,575			—			149,817
Total equity	7,315,055			(100,638		)	21,146,892			(17,683,740		)	10,677,569
Total liabilities and equity	$	15,034,382		$	2,850,604		$	22,497,888		$	(17,683,740	)	$	22,699,134

CONDENSED CONSOLIDATING BALANCE SHEET

	As of December 31, 2017
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	1,844		$	119,508		$	21,971,100		$	—		$	22,092,452
Cash and cash equivalents	7,129			—			74,226			—			81,355
Escrow deposits and restricted cash	39,816			128			66,954			—			106,898
Investment in and advances to affiliates	14,786,086			2,916,060			—			(17,702,146		)	—
Goodwill	—			—			1,034,644			—			1,034,644
Assets held for sale	—			—			65,413			—			65,413
Other assets	55,936			9,458			508,385			—			573,779
Total assets	$	14,890,811		$	3,045,154		$	23,720,722		$	(17,702,146	)	$	23,954,541
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—		$	8,895,641		$	2,380,421		$	—		$	11,276,062
Intercompany loans	7,835,685			(7,127,547		)	(708,138		)	—			—
Accrued interest	(6,410		)	77,691			22,677			—			93,958
Accounts payable and other liabilities	377,536			24,635			781,318			—			1,183,489
Liabilities related to assets held for sale	—			—			60,265			—			60,265
Deferred income taxes	608			—			249,484			—			250,092
Total liabilities	8,207,419			1,870,420			2,786,027			—			12,863,866
Redeemable OP Unitholder and noncontrolling interests	12,237			—			146,253			—			158,490
Total equity	6,671,155			1,174,734			20,788,442			(17,702,146		)	10,932,185
Total liabilities and equity	$	14,890,811		$	3,045,154		$	23,720,722		$	(17,702,146	)	$	23,954,541

CONDENSED CONSOLIDATING STATEMENT OF INCOME

	For the Three Months Ended June 30, 2018
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues
Rental income	$	255		$	34,299		$	325,708		$	—		$	360,262
Resident fees and services	—			—			518,989			—			518,989
Office building and other services revenue	—			—			4,289			—			4,289
Income from loans and investments	272			—			56,145			—			56,417
Equity earnings in affiliates	143,760			—			(563		)	(143,197		)	—
Interest and other income	2,069			—			278			—			2,347
Total revenues	146,356			34,299			904,846			(143,197		)	942,304
Expenses
Interest	(28,295		)	82,644			58,680			—			113,029
Depreciation and amortization	1,373			1,422			220,839			—			223,634
Property-level operating expenses	—			82			421,331			—			421,413
Office building services costs	—			—			534			—			534
General, administrative and professional fees	(409		)	4,614			32,451			—			36,656
(Gain) loss on extinguishment of debt, net	(14		)	1,787			(1,866		)	—			(93		)
Merger-related expenses and deal costs	4,164			—			330			—			4,494
Other	2,327			—			1,200			—			3,527
Total expenses	(20,854		)	90,549			733,499			—			803,194
Income (loss) before unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interests	167,210			(56,250		)	171,347			(143,197		)	139,110
Loss from unconsolidated entities	—			—			(6,371		)	—			(6,371		)
Income tax (expense) benefit	(129		)	—			863			—			734
Income (loss) from continuing operations	167,081			(56,250		)	165,839			(143,197		)	133,473
Discontinued operations	—			—			—			—			—
(Loss) gain on real estate dispositions	(562		)	—			36,389			—			35,827
Net income (loss)	166,519			(56,250		)	202,228			(143,197		)	169,300
Net income attributable to noncontrolling interests	—			—			2,781			—			2,781
Net income (loss) attributable to common stockholders	$	166,519		$	(56,250	)	$	199,447		$	(143,197	)	$	166,519

CONDENSED CONSOLIDATING STATEMENT OF INCOME

	For the Three Months Ended June 30, 2017
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues
Rental income	$	596		$	48,451		$	350,451		$	—		$	399,498
Resident fees and services	—			—			460,243			—			460,243
Office building and other services revenue	—			—			3,179			—			3,179
Income from loans and investments	319			—			32,049			—			32,368
Equity earnings in affiliates	131,210			—			(404		)	(130,806		)	—
Interest and other income	28			—			174			—			202
Total revenues	132,153			48,451			845,692			(130,806		)	895,490
Expenses
Interest	(27,732		)	81,516			59,788			—			113,572
Depreciation and amortization	1,419			2,239			220,450			—			224,108
Property-level operating expenses	—			83			365,747			—			365,830
Office building services costs	—			—			552			—			552
General, administrative and professional fees	186			4,630			28,466			—			33,282
Loss (gain) on extinguishment of debt, net	—			418			(382		)	—			36
Merger-related expenses and deal costs	5,783			—			260			—			6,043
Other	466			—			1,382			—			1,848
Total expenses	(19,878		)	88,886			676,263			—			745,271
Income (loss) before unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interests	152,031			(40,435		)	169,429			(130,806		)	150,219
Loss from unconsolidated entities	—			—			(106		)	—			(106		)
Income tax (expense) benefit	(177		)	—			2,336			—			2,159
Income (loss) from continuing operations	151,854			(40,435		)	171,659			(130,806		)	152,272
Discontinued operations	(23		)	—			—			—			(23		)
Gain on real estate dispositions	—			—			719			—			719
Net income (loss)	151,831			(40,435		)	172,378			(130,806		)	152,968
Net income attributable to noncontrolling interests	—			—			1,137			—			1,137
Net income (loss) attributable to common stockholders	$	151,831		$	(40,435	)	$	171,241		$	(130,806	)	$	151,831

CONDENSED CONSOLIDATING STATEMENT OF INCOME

	For the Six Months Ended June 30, 2018
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues
Rental income	$	856		$	68,685		$	675,530		$	—		$	745,071
Resident fees and services	—			—			1,033,742			—			1,033,742
Office building and other services revenue	—			—			7,617			—			7,617
Income from loans and investments	763			—			86,835			—			87,598
Equity earnings in affiliates	204,055			—			(1,206		)	(202,849		)	—
Interest and other income	11,391			—			590			—			11,981
Total revenues	217,065			68,685			1,803,108			(202,849		)	1,886,009
Expenses
Interest	(56,990		)	164,956			116,426			—			224,392
Depreciation and amortization	2,717			2,866			451,201			—			456,784
Property-level operating expenses	—			154			834,172			—			834,326
Office building services costs	—			—			649			—			649
General, administrative and professional fees	148			8,664			65,018			—			73,830
Loss (gain) on extinguishment of debt, net	154			12,596			(1,866		)	—			10,884
Merger-related expenses and deal costs	20,410			—			1,420			—			21,830
Other	4,496			—			2,151			—			6,647
Total expenses	(29,065		)	189,236			1,469,171			—			1,629,342
Income (loss) before unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interests	246,130			(120,551		)	333,937			(202,849		)	256,667
Loss from unconsolidated entities	—			—			(47,110		)	—			(47,110		)
Income tax (expense) benefit	(338		)	—			4,314			—			3,976
Income (loss) from continuing operations	245,792			(120,551		)	291,141			(202,849		)	213,533
Discontinued operations	(10		)	—			—			—			(10		)
(Loss) gain on real estate dispositions	(560		)	—			36,435			—			35,875
Net income (loss)	245,222			(120,551		)	327,576			(202,849		)	249,398
Net income attributable to noncontrolling interests	—			—			4,176			—			4,176
Net income (loss) attributable to common stockholders	$	245,222		$	(120,551	)	$	323,400		$	(202,849	)	$	245,222

CONDENSED CONSOLIDATING STATEMENT OF INCOME

	For the Six Months Ended June 30, 2017
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues
Rental income	$	1,181		$	96,270		$	697,269		$	—		$	794,720
Resident fees and services	—			—			924,431			—			924,431
Office building and other services revenue	—			—			6,585			—			6,585
Income from loans and investments	600			—			51,914			—			52,514
Equity earnings in affiliates	314,751			—			(598		)	(314,153		)	—
Interest and other income	371			—			312			—			683
Total revenues	316,903			96,270			1,679,913			(314,153		)	1,778,933
Expenses
Interest	(44,367		)	156,306			110,437			—			222,376
Depreciation and amortization	2,827			4,608			434,456			—			441,891
Property-level operating expenses	—			165			734,652			—			734,817
Office building services costs	—			—			1,290			—			1,290
General, administrative and professional fees	313			9,330			57,600			—			67,243
Loss (gain) on extinguishment of debt, net	—			438			(93		)	—			345
Merger-related expenses and deal costs	7,646			—			453			—			8,099
Other	119			—			2,917			—			3,036
Total expenses	(33,462		)	170,847			1,341,712			—			1,479,097
Income (loss) before unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interests	350,365			(74,577		)	338,201			(314,153		)	299,836
Income from unconsolidated entities	—			—			3,044			—			3,044
Income tax (expense) benefit	(331		)	—			5,635			—			5,304
Income (loss) from continuing operations	350,034			(74,577		)	346,880			(314,153		)	308,184
Discontinued operations	(76		)	—			—			—			(76		)
Gain on real estate dispositions	—			14,781			29,227			—			44,008
Net income (loss)	349,958			(59,796		)	376,107			(314,153		)	352,116
Net income attributable to noncontrolling interests	—			—			2,158			—			2,158
Net income (loss) attributable to common stockholders	$	349,958		$	(59,796	)	$	373,949		$	(314,153	)	$	349,958

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

	For the Three Months Ended June 30, 2018
	Ventas, Inc.		Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income (loss)	$	166,519	$	(56,250	)	$	202,228		$	(143,197	)	169,300
Other comprehensive income (loss):
Foreign currency translation	—		—			(15,246		)	—			(15,246		)
Unrealized gain on marketable debt securities	—		—			12,857			—			12,857
Other	—		—			6,002			—			6,002
Total other comprehensive income	—		—			3,613			—			3,613
Comprehensive income (loss)	166,519		(56,250		)	205,841			(143,197		)	172,913
Comprehensive income attributable to noncontrolling interests	—		—			2,781			—			2,781
Comprehensive income (loss) attributable to common stockholders	$	166,519	$	(56,250	)	$	203,060		$	(143,197	)	$	170,132

	For the Three Months Ended June 30, 2017
	Ventas, Inc.		Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income (loss)	$	151,831	$	(40,435	)	$	172,378		$	(130,806	)	$	152,968
Other comprehensive income (loss):
Foreign currency translation	—		—			8,286			—			8,286
Unrealized loss on marketable debt securities	—		—			(62		)	—			(62		)
Other	—		—			398			—			398
Total other comprehensive income	—		—			8,622			—			8,622
Comprehensive income (loss)	151,831		(40,435		)	181,000			(130,806		)	161,590
Comprehensive income attributable to noncontrolling interests	—		—			1,137			—			1,137
Comprehensive income (loss) attributable to common stockholders	$	151,831	$	(40,435	)	$	179,863		$	(130,806	)	$	160,453

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

	For the Six Months Ended June 30, 2018
	Ventas, Inc.		Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income (loss)	$	245,222	$	(120,551	)	$	327,576		$	(202,849	)	$	249,398
Other comprehensive income (loss):
Foreign currency translation	—		—			(3,043		)	—			(3,043		)
Unrealized gain on marketable debt securities	—		—			12,685			—			12,685
Other	—		—			14,617			—			14,617
Total other comprehensive income	—		—			24,259			—			24,259
Comprehensive income (loss)	245,222		(120,551		)	351,835			(202,849		)	273,657
Comprehensive income attributable to noncontrolling interests	—		—			4,176			—			4,176
Comprehensive income (loss) attributable to common stockholders	$	245,222	$	(120,551	)	$	347,659		$	(202,849	)	$	269,481

	For the Six Months Ended June 30, 2017
	Ventas, Inc.		Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income (loss)	$	349,958	$	(59,796	)	$	376,107		$	(314,153	)	$	352,116
Other comprehensive income (loss):
Foreign currency translation	—		—			12,368			—			12,368
Unrealized loss on marketable debt securities	—		—			(185		)	—			(185		)
Other	—		—			316			—			316
Total other comprehensive income	—		—			12,499			—			12,499
Comprehensive income (loss)	349,958		(59,796		)	388,606			(314,153		)	364,615
Comprehensive income attributable to noncontrolling interests	—		—			2,158			—			2,158
Comprehensive income (loss) attributable to common stockholders	$	349,958	$	(59,796	)	$	386,448		$	(314,153	)	$	362,457

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	For the Six Months Ended June 30, 2018
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(3,651	)	$	(107,438	)	$	821,425		$	—	$	710,336
Cash flows from investing activities:
Net investment in real estate property	(12,257		)	—			—			—		(12,257		)
Investment in loans receivable and other	(2,830		)	—			(208,724		)	—		(211,554		)
Proceeds from real estate disposals	312,243			—			—			—		312,243
Proceeds from loans receivable	1,452			—			864,645			—		866,097
Development project expenditures	—			—			(155,682		)	—		(155,682		)
Capital expenditures	—			—			(42,029		)	—		(42,029		)
Distributions from unconsolidated entities	6,792			—			—			—		6,792
Investment in unconsolidated entities	—			—			(40,033		)	—		(40,033		)
Insurance proceeds for property damage claims	—			—			2,329			—		2,329
Net cash provided by investing activities	305,400			—			420,506			—		725,906
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities	—			(192,531		)	(5,195		)	—		(197,726		)
Proceeds from debt	—			655,044			95,272			—		750,316
Repayment of debt	—			(1,311,098		)	(120,789		)	—		(1,431,887		)
Purchase of noncontrolling interests	(2,429		)	—			—			—		(2,429		)
Net change in intercompany debt	237,376			961,644			(1,199,020		)	—		—
Payment of deferred financing costs	—			(5,621		)	(727		)	—		(6,348		)
Cash distribution from (to) affiliates	7,358			—			(7,358		)	—		—
Cash distribution to common stockholders	(563,395		)	—			—			—		(563,395		)
Cash distribution to redeemable OP unitholders	—			—			(3,744		)	—		(3,744		)
Cash issued for redemption of OP and Class C Units	—			—			(975		)	—		(975		)
Distributions to noncontrolling interests	—			—			(7,808		)	—		(7,808		)
Other	(1,995		)	—			—			—		(1,995		)
Net cash (used in) provided by financing activities	(323,085		)	107,438			(1,250,344		)	—		(1,465,991		)
Net decrease in cash, cash equivalents and restricted cash	(21,336		)	—			(8,413		)	—		(29,749		)
Effect of foreign currency translation	(7,744		)	—			7,343			—		(401		)
Cash, cash equivalents and restricted cash at beginning of period	46,945			128			141,180			—		188,253
Cash, cash equivalents and restricted cash at end of period	$	17,865		$	128		$	140,110		$	—	$	158,103

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	For the Six Months Ended June 30, 2017
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	41,315		$	(46,928	)	$	729,014		$	—	$	723,401
Cash flows from investing activities:
Net investment in real estate property	(295,114		)	—			(29,378		)	—		(324,492		)
Investment in loans receivable and other	(2,575		)	—			(715,658		)	—		(718,233		)
Proceeds from real estate disposals	104,570			—			—			—		104,570
Proceeds from loans receivable	21			—			25,046			—		25,067
Development project expenditures	—			—			(143,269		)	—		(143,269		)
Capital expenditures	—			(15		)	(55,937		)	—		(55,952		)
Investment in unconsolidated entities	—			—			(39,048		)	—		(39,048		)
Insurance proceeds for property damage claims	—			—			1,393			—		1,393
Net cash used in investing activities	(193,098		)	(15		)	(956,851		)	—		(1,149,964		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facility	—			453,000			(88,544		)	—		364,456
Proceeds from debt	—			793,904			234,605			—		1,028,509
Repayment of debt	—			(300,019		)	(356,517		)	—		(656,536		)
Purchase of noncontrolling interests	(15,809		)	—			—			—		(15,809		)
Net change in intercompany debt	795,816			(892,894		)	97,078			—		—
Payment of deferred financing costs	—			(18,262		)	(1,425		)	—		(19,687		)
Issuance of common stock, net	73,596			—			—			—		73,596
Cash distribution (to) from affiliates	(370,552		)	11,291			359,261			—		—
Cash distribution to common stockholders	(550,965		)	—			—			—		(550,965		)
Cash distribution to redeemable OP unitholders	—			—			(3,720		)	—		(3,720		)
Contributions from noncontrolling interest	—			—			2,227			—		2,227
Distributions to noncontrolling interests	—			—			(4,156		)	—		(4,156		)
Other	9,702			—			—			—		9,702
Net cash (used in) provided by financing activities	(58,212		)	47,020			238,809			—		227,617
Net (decrease) increase in cash, cash equivalents and restricted cash	(209,995		)	77			10,972			—		(198,946		)
Effect of foreign currency translation	16,529			—			(13,241		)	—		3,288
Cash, cash equivalents and restricted cash at beginning of period	207,789			1,504			158,061			—		367,354
Cash, cash equivalents and restricted cash at end of period	$	14,323		$	1,581		$	155,792		$	—	$	171,696