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Other Assets
12 Months Ended
Dec. 31, 2014
Other Assets.  
Other Assets

NOTE 10.    Other Assets

The Company’s other assets consisted of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2014

 

2013

 

Straight-line rent assets, net of allowance of $34,182 and $34,230, respectively

    

$

355,864 

    

$

368,919 

 

Marketable debt securities

 

 

231,442 

 

 

244,089 

 

Leasing costs, net

 

 

146,500 

 

 

104,601 

 

Deferred financing costs, net

 

 

47,592 

 

 

42,106 

 

Goodwill

 

 

50,346 

 

 

50,346 

 

Other(1)

 

 

108,428 

(2)

 

57,644 

 

Total other assets

 

$

940,172 

 

$

867,705 

 


(1)

Includes a $5.4 million allowance for losses related to accrued interest receivable on the Delphis loan. At both December 31, 2014 and 2013, the net carrying value of interest accrued related to the Delphis loan was zero. See Note 7 for additional information about the Delphis loan and the related impairment. At December 31, 2014 and 2013, includes a loan receivable of $15 million and $10 million, respectively, from HCP Ventures IV, LLC, an unconsolidated joint venture (see Note 8) with an interest rate of 12% which matures in May 2015. The loan is senior to equity distributions to the Company’s joint venture partner.

(2)

Includes a $26 million non-interest bearing short-term receivable from Brookdale payable in eight quarterly installments (see Note 3).

 

During the year ended December 31, 2013, the Company realized gains from the sale of marketable equity securities of $11 million, which were included in other income, net.

Four Seasons Health Care Senior Unsecured Notes

On June 28, 2012, the Company purchased senior unsecured notes with an aggregate par value of £138.5 million at a discount for £136.8 million ($215 million). The notes were issued by Elli Investments Limited, a subsidiary of Terra Firma, a European private equity firm, as part of its financing for the acquisition of Four Seasons Health Care (“Four Seasons”), an elderly and specialist care provider in the U.K. The notes mature in June 2020 and are non-callable through June 2016. The notes bear interest on their par value at a fixed rate of 12.25% per annum, with an original issue discount resulting in a yield to maturity of 12.5%. This investment was financed by a GBP denominated unsecured term loan that is discussed in Note 11. These senior unsecured notes are accounted for as marketable debt securities and classified as held-to-maturity.