Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies

Schedule of concentration of credit risk by segments

Segment Concentrations:

	Percentage of Senior Housing Gross Assets				Percentage of Senior Housing Revenues				Percentage of Senior Housing Revenues
	June 30,		December 31,		Three Months Ended June 30,				Six Months Ended June 30,
Operators	2013		2012		2013		2012		2013		2012
Emeritus	35	%	35	%	35	%	23	%	35	%	21	%
Sunrise Senior Living (“Sunrise”)(1)	17		17		13		17		13		16
HCR ManorCare	11		11		9		13		9		12
Brookdale Senior Living (“Brookdale”)(2)	10		11		11		16		12		14

	Percentage of Post-Acute/ Skilled Nursing Gross Assets				Percentage of Post-Acute/ Skilled Nursing Revenues				Percentage of Post-Acute/ Skilled Nursing Revenues
	June 30,		December 31,		Three Months Ended June 30,				Six Months Ended June 30,
Operators	2013		2012		2013		2012		2013		2012
HCR ManorCare	86	%	89	%	86	%	93	%	86	%	93	%

Total Company Concentrations:

	Percentage of Total Company Gross Assets				Percentage of Total Company Revenues				Percentage of Total Company Revenues
	June 30,		December 31,		Three Months Ended June 30,				Six Months Ended June 30,
Operators	2013		2012		2013		2012		2013		2012
HCR ManorCare	32	%	31	%	28	%	31	%	28	%	31	%
Emeritus	14		13		13		7		13		7
Sunrise(1)	7		7		5		5		5		5
Brookdale(2)	4		4		4		5		4		5

(1) Certain of the Company’s properties are leased to tenants who have entered into management contracts with Sunrise to operate the respective property on their behalf. The Company’s concentration of gross assets includes properties directly leased to Sunrise and properties that are managed by Sunrise on behalf of third party tenants.

(2) At June 30, 2013 and December 31, 2012, Brookdale percentages exclude $705 million and $692 million, respectively, of senior housing assets related to 21 senior housing facilities that Brookdale operates on the Company’s behalf under a RIDEA structure. Assuming that these assets were attributable to Brookdale, the percentage of segment assets for Brookdale would be 19% and 20% at June 30, 2013 and December 31, 2012, respectively. Assuming that these assets were attributable to Brookdale, the percentage of total assets for Brookdale would be 8% at both June 30, 2013 and December 31, 2012. For the three and six months ended June 30, 2013, Brookdale percentages exclude $37.6 million and $74.4 million, respectively, of senior housing revenues related to these facilities. Assuming that these revenues were attributable to Brookdale, the percentage of segment revenues for Brookdale would be 31% for both the three and six months ended June 30, 2013. Assuming that these revenues were attributable to Brookdale, the percentage of total revenues for Brookdale would be 12% and 11%, respectively, for the three and six months ended June 30, 2013. For the three and six months ended June 30, 2012, Brookdale percentages exclude $35.6 million and $70.7 million, respectively, of senior housing revenues related to these facilities. Assuming that these revenues were attributable to Brookdale, the percentage of segment revenues for Brookdale would be 42% and 38% for the three and six months ended June 30, 2012, respectively. Assuming that these revenues were attributable to Brookdale, the percentage of total revenues for Brookdale would be 12% for both the three and six months ended June 30, 2012.

Summary of HCR ManorCare's condensed consolidated financial information

HCR ManorCare’s summarized condensed consolidated financial information follows (in millions):

	June 30,		December 31,
	2013		2012
Real estate and other property, net	$	3,019.9	$	3,046.6
Cash and cash equivalents	161.5		120.5
Goodwill, intangible and other assets, net	5,566.9		5,625.4
Total assets	$	8,748.3	$	8,792.5
Debt and financing obligations	$	6,319.0	$	6,374.6
Accounts payable, accrued liabilities and other	1,011.8		1,021.9
Total equity	1,417.5		1,396.0
Total liabilities and equity	$	8,748.3	$	8,792.5

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues	$	1,032.7		$	1,034.3		$	2,101.4		$	2,075.5
Operating, general and administrative expense	(876.9		)	(897.5		)	(1,789.3		)	(1,782.9		)
Depreciation and amortization expense	(36.4		)	(41.6		)	(73.7		)	(83.6		)
Interest expense	(104.1		)	(105.8		)	(208.5		)	(212.1		)
Other income (expense), net	(0.5		)	3.1			1.7			6.4
Income (loss) before income taxes	14.8			(7.5		)	31.6			3.3
Income taxes	(4.7		)	4.6			(9.8		)	0.1
Net income (loss)	$	10.1		$	(2.9	)	$	21.8		$	3.4