CONDENSED CONSOLIDATING INFORMATION (Unaudited)

6 Months Ended

Jun. 30, 2019

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 (“Ventas Canada”). 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’s senior notes.

The following pages summarize our condensed consolidating information as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018.

CONDENSED CONSOLIDATING BALANCE SHEET

	As of June 30, 2019
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	3,525		$	110,506		$	20,862,516		$	—		$	20,976,547
Cash and cash equivalents	470			—			81,517			—			81,987
Escrow deposits and restricted cash	2,081			128			54,100			—			56,309
Investment in and advances to affiliates	15,840,047			2,726,198			—			(18,566,245		)	—
Goodwill	—			—			1,050,470			—			1,050,470
Assets held for sale	—			—			1,754			—			1,754
Other assets	80,041			3,765			738,038			—			821,844
Total assets	$	15,926,164		$	2,840,597		$	22,788,395		$	(18,566,245	)	$	22,988,911
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—		$	8,139,280		$	2,116,812		$	—		$	10,256,092
Intercompany loans	8,454,178			(5,046,440		)	(3,407,738		)	—			—
Accrued interest	(12,038		)	97,208			26,218			—			111,388
Operating lease liabilities	11,918			520			221,319			—			233,757
Accounts payable and other liabilities	323,156			31,489			783,335			—			1,137,980
Liabilities related to assets held for sale	—			—			1,216			—			1,216
Deferred income taxes	608			—			148,846			—			149,454
Total liabilities	8,777,822			3,222,057			(109,992		)	—			11,889,887
Redeemable OP unitholder and noncontrolling interests	17,923			—			204,739			—			222,662
Total equity	7,130,419			(381,460		)	22,693,648			(18,566,245		)	10,876,362
Total liabilities and equity	$	15,926,164		$	2,840,597		$	22,788,395		$	(18,566,245	)	$	22,988,911

CONDENSED CONSOLIDATING BALANCE SHEET

	As of December 31, 2018
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	3,598		$	112,691		$	20,521,615		$	—		$	20,637,904
Cash and cash equivalents	6,470			—			65,807			—			72,277
Escrow deposits and restricted cash	4,211			128			54,848			—			59,187
Investment in and advances to affiliates	15,656,592			2,726,198			—			(18,382,790		)	—
Goodwill	—			—			1,050,548			—			1,050,548
Assets held for sale	—			—			5,454			—			5,454
Other assets	45,989			4,443			708,753			—			759,185
Total assets	$	15,716,860		$	2,843,460		$	22,407,025		$	(18,382,790	)	$	22,584,555
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—		$	8,620,867		$	2,112,832		$	—		$	10,733,699
Intercompany loans	8,580,896			(5,629,764		)	(2,951,132		)	—			—
Accrued interest	(9,953		)	85,717			23,903			—			99,667
Accounts payable and other liabilities	319,753			19,178			747,099			—			1,086,030
Liabilities related to assets held for sale	—			—			205			—			205
Deferred income taxes	608			—			204,611			—			205,219
Total liabilities	8,891,304			3,095,998			137,518			—			12,124,820
Redeemable OP unitholder and noncontrolling interests	13,746			—			174,395			—			188,141
Total equity	6,811,810			(252,538		)	22,095,112			(18,382,790		)	10,271,594
Total liabilities and equity	$	15,716,860		$	2,843,460		$	22,407,025		$	(18,382,790	)	$	22,584,555

CONDENSED CONSOLIDATING STATEMENT OF INCOME

	For the Three Months Ended June 30, 2019
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues
Rental income	$	268		$	35,725		$	362,577		$	—		$	398,570
Resident fees and services	—			—			520,725			—			520,725
Office building and other services revenue	—			—			2,691			—			2,691
Income from loans and investments	736			—			18,793			—			19,529
Equity earnings in affiliates	202,825			—			(564		)	(202,261		)	—
Interest and other income	9			51			9,142			—			9,202
Total revenues	203,838			35,776			913,364			(202,261		)	950,717
Expenses
Interest	(17,672		)	82,940			45,101			—			110,369
Depreciation and amortization	1,460			1,367			223,360			—			226,187
Property-level operating expenses	—			151			435,750			—			435,901
Office building services costs	—			—			515			—			515
General, administrative and professional fees	7,079			3,685			32,315			—			43,079
Loss on extinguishment of debt, net	—			4,022			—			—			4,022
Merger-related expenses and deal costs	2,070			—			2,530			—			4,600
Other	263			—			(11,744		)	—			(11,481		)
Total expenses	(6,800		)	92,165			727,827			—			813,192
Income (loss) before unconsolidated entities, real estate dispositions, income taxes, discontinued operations and noncontrolling interests	210,638			(56,389		)	185,537			(202,261		)	137,525
Loss from unconsolidated entities	—			—			(2,529		)	—			(2,529		)
Gain on real estate dispositions	—			—			19,150			—			19,150
Income tax (expense) benefit	(109		)	—			57,861			—			57,752
Income (loss) from continuing operations	210,529			(56,389		)	260,019			(202,261		)	211,898
Discontinued operations	—			—			—			—			—
Net income (loss)	210,529			(56,389		)	260,019			(202,261		)	211,898
Net income attributable to noncontrolling interests	—			—			1,369			—			1,369
Net income (loss) attributable to common stockholders	$	210,529		$	(56,389	)	$	258,650		$	(202,261	)	$	210,529

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, real estate dispositions, income taxes, discontinued operations and noncontrolling interests	167,210			(56,250		)	171,347			(143,197		)	139,110
Loss from unconsolidated entities	—			—			(6,371		)	—			(6,371		)
(Loss) gain on real estate dispositions	(562		)	—			36,389			—			35,827
Income tax (expense) benefit	(129		)	—			863			—			734
Income (loss) from continuing operations	166,519			(56,250		)	202,228			(143,197		)	169,300
Discontinued operations	—			—			—			—			—
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 Six Months Ended June 30, 2019
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues
Rental income	$	534		$	71,184		$	728,348		$	—		$	800,066
Resident fees and services	—			—			1,042,172			—			1,042,172
Office building and other services revenue	—			—			5,209			—			5,209
Income from loans and investments	1,159			—			35,496			—			36,655
Equity earnings in affiliates	300,660			—			(1,126		)	(299,534		)	—
Interest and other income	21			80			9,388			—			9,489
Total revenues	302,374			71,264			1,819,487			(299,534		)	1,893,591
Expenses
Interest	(38,343		)	166,034			93,297			—			220,988
Depreciation and amortization	2,812			2,755			456,540			—			462,107
Property-level operating expenses	—			313			866,092			—			866,405
Office building services costs	—			—			1,148			—			1,148
General, administrative and professional fees	(1,589		)	10,153			75,275			—			83,839
Loss on extinguishment of debt, net	—			4,427			—			—			4,427
Merger-related expenses and deal costs	2,955			—			3,825			—			6,780
Other	6			1			(11,465		)	—			(11,458		)
Total expenses	(34,159		)	183,683			1,484,712			—			1,634,236
Income (loss) before unconsolidated entities, real estate dispositions, income taxes, discontinued operations and noncontrolling interests	336,533			(112,419		)	334,775			(299,534		)	259,355
Loss from unconsolidated entities	—			—			(3,475		)	—			(3,475		)
(Loss) gain on real estate dispositions	(1		)	—			24,598			—			24,597
Income tax (expense) benefit	(218		)	—			59,227			—			59,009
Income (loss) from continuing operations	336,314			(112,419		)	415,125			(299,534		)	339,486
Discontinued operations	—			—			—			—			—
Net income (loss)	336,314			(112,419		)	415,125			(299,534		)	339,486
Net income attributable to noncontrolling interests	—			—			3,172			—			3,172
Net income (loss) attributable to common stockholders	$	336,314		$	(112,419	)	$	411,953		$	(299,534	)	$	336,314

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, real estate dispositions, income taxes, discontinued operations and noncontrolling interests	246,130			(120,551		)	333,937			(202,849		)	256,667
Loss from unconsolidated entities	—			—			(47,110		)	—			(47,110		)
(Loss) gain on real estate dispositions	(560		)	—			36,435			—			35,875
Income tax (expense) benefit	(338		)	—			4,314			—			3,976
Income (loss) from continuing operations	245,232			(120,551		)	327,576			(202,849		)	249,408
Discontinued operations	(10		)	—			—			—			(10		)
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 STATEMENTS OF COMPREHENSIVE INCOME

	For the Three Months Ended June 30, 2019
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income (loss)	$	210,529		$	(56,389	)	$	260,019		$	(202,261	)	$	211,898
Other comprehensive loss:
Foreign currency translation	(8,211		)	—			(375		)	—			(8,586		)
Unrealized loss on available for sale securities	(1,987		)	—			(408		)	—			(2,395		)
Derivative instruments	1,723			(14,342		)	(4,006		)	—			(16,625		)
Total other comprehensive loss	(8,475		)	(14,342		)	(4,789		)	—			(27,606		)
Comprehensive income (loss)	202,054			(70,731		)	255,230			(202,261		)	184,292
Comprehensive income attributable to noncontrolling interests	—			—			1,369			—			1,369
Comprehensive income (loss) attributable to common stockholders	$	202,054		$	(70,731	)	$	253,861		$	(202,261	)	$	182,923

	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:
Foreign currency translation	—		—			(15,246		)	—			(15,246		)
Unrealized gain on available for sale securities	—		—			12,857			—			12,857
Derivative instruments	—		—			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

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

	For the Six Months Ended June 30, 2019
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income (loss)	$	336,314		$	(112,419	)	$	415,125		$	(299,534	)	$	339,486
Other comprehensive (loss) income:
Foreign currency translation	(1,652		)	—			(3,107		)	—			(4,759		)
Unrealized (loss) gain on available for sale securities	(1,987		)	—			8,883			—			6,896
Other	1,723			(18,391		)	(5,395		)	—			(22,063		)
Total other comprehensive (loss) income	(1,916		)	(18,391		)	381			—			(19,926		)
Comprehensive income (loss)	334,398			(130,810		)	415,506			(299,534		)	319,560
Comprehensive income attributable to noncontrolling interests	—			—			3,172			—			3,172
Comprehensive income (loss) attributable to common stockholders	$	334,398		$	(130,810	)	$	412,334		$	(299,534	)	$	316,388

	For the Six Months Ended June 30, 2018
	Ventas, Inc.		Ventas Realty			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	245,222	$	(120,551	)	$	327,576		$	(202,849	)	$	249,398
Other comprehensive income:
Foreign currency translation	—		—			(3,043		)	—			(3,043		)
Unrealized gain on available for sale 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 attributable to common stockholders	$	245,222	$	(120,551	)	$	347,659		$	(202,849	)	$	269,481

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	For the Six Months Ended June 30, 2019
	Ventas, Inc.			Ventas Realty			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	4,253		$	(90,987	)	$	815,953		$	—	$	729,219
Cash flows from investing activities:
Net investment in real estate property	(208,039		)	—			—			—		(208,039		)
Investment in loans receivable	(19,115		)	—			(488,033		)	—		(507,148		)
Proceeds from real estate disposals	74,095			—			310			—		74,405
Proceeds from loans receivable	33			—			289,624			—		289,657
Development project expenditures	—			—			(114,226		)	—		(114,226		)
Capital expenditures	—			—			(58,381		)	—		(58,381		)
Investment in unconsolidated entities	—			—			(934		)	—		(934		)
Insurance proceeds for property damage claims	—			—			16,939			—		16,939
Net cash used in investing activities	(153,026		)	—			(354,701		)	—		(507,727		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities	—			(497,265		)	(9,286		)	—		(506,551		)
Net change in borrowings under commercial paper program	—			269,810			—			—		269,810
Proceeds from debt	—			698,822			14,112			—		712,934
Repayment of debt	—			(958,756		)	(38,305		)	—		(997,061		)
Net change in intercompany debt	(175,619		)	585,213			(409,594		)	—		—
Payment of deferred financing costs	—			(6,837		)	—			—		(6,837		)
Issuance of common stock, net	866,033			—			—			—		866,033
Cash distribution to common stockholders	(567,142		)	—			—			—		(567,142		)
Cash distribution to redeemable OP unitholders	—			—			(4,551		)	—		(4,551		)
Contributions from noncontrolling interests	—			—			3,594			—		3,594
Distributions to noncontrolling interests	—			—			(4,103		)	—		(4,103		)
Proceeds from stock option exercises	25,738			—			—			—		25,738
Other	(6,727		)	—			(5		)	—		(6,732		)
Net cash provided by (used in) financing activities	142,283			90,987			(448,138		)	—		(214,868		)
Net (decrease) increase in cash, cash equivalents and restricted cash	(6,490		)	—			13,114			—		6,624
Effect of foreign currency translation	(1,640		)	—			1,848			—		208
Cash, cash equivalents and restricted cash at beginning of period	10,681			128			120,655			—		131,464
Cash, cash equivalents and restricted cash at end of period	$	2,551		$	128		$	135,617		$	—	$	138,296

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 facility	—			(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 Units	—			—			(975		)	—		(975		)
Distributions to noncontrolling interests	—			—			(7,808		)	—		(7,808		)
Proceeds from stock option exercises	2,325			—			—			—		2,325
Other	(4,320		)	—			—			—		(4,320		)
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