Net Investment in Direct Financing Leases (Tables)

12 Months Ended

Dec. 31, 2015

Loans Receivable:

Schedule of components of net investment in DFLs (dollars in thousands)

The components of net investment in DFLs consisted of the following (dollars in thousands):

	December 31,
	2015		2014
Minimum lease payments receivable	$	26,283,392	$	24,182,525
Estimated residual values		3,900,679		4,126,426
Less unearned income		(23,462,022)		(21,028,617)
Net investment in direct financing leases before allowance		6,722,049		7,280,334
Allowance for DFL losses		(817,040)		—
Net investment in direct financing leases	$	5,905,009	$	7,280,334
Properties subject to direct financing leases		348		363

Schedule of Components of Direct Financing Leases Income and Equity Income

	Year Ended
	December 31,
	2015		2014		2013
Cash income	$	482,770	$	519,280	$	502,354
DFL accretion, net		90,065		79,349		82,688
Total DFL income from HCRMC	$	572,835	$	598,629	$	585,042
DFL accretion income recharacterized to equity income	$	58,047	$	62,445	$	62,061
Equity loss from HCRMC		(7,324)		(9,270)		(6,460)
Total equity income from HCRMC	$	50,723	$	53,175	$	55,601

DFL

Loans Receivable:

Summary of the Company's internal ratings for DFLs (dollars in thousands)

The following table summarizes the Company’s internal ratings for net investment in DFLs at December 31, 2015 (dollars in thousands):

	Carrying		Percentageof	Internal Ratings
Investment Type	Amount		DFL Portfolio	Performing DFLs		Watch List DFLs		Workout DFLs
Senior housing	$	1,788,764	30	$	261,261	$	1,527,503	$	—
Post-acute/skilled nursing		3,992,354	68		—		3,992,354		—
Hospital		123,891	2		123,891		—		—
	$	5,905,009	100	$	385,152	$	5,519,857	$	—

Future minimum lease payments contractually due under DFLs

Future minimum lease payments contractually due under DFLs at December 31, 2015, were as follow (in thousands):

Year	Amount
2016	$	552,985
2017		545,307
2018		559,979
2019		576,206
2020		586,229
Thereafter		23,462,686
	$	26,283,392