Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2018

Variable Interest Entities [Abstract]

The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at September 30, 2018 was as follows (in thousands):



VIE Type	Asset/Liability Type	Maximum Loss Exposure and Carrying Amount⁽¹⁾
VIE tenants - DFLs⁽²⁾	Net investment in DFLs	$	601,137
VIE tenants - operating leases⁽²⁾	Lease intangibles, net and straight-line rent receivables	6,643
CCRC OpCo	Investments in unconsolidated joint ventures	180,174
Unconsolidated Development JVs	Investments in unconsolidated joint ventures	15,222
Loan - Seller Financing	Loans receivable, net	10,000
CMBS and LLC investment	Marketable debt and LLC investment	34,133

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(1)	The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).


(2)	The Company’s maximum loss exposure may be mitigated by re-leasing the underlying properties to new tenants upon an event of default.

Consolidated Assets and Liabilities of Variable Interest Entities

Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):



	September 30, 2018			December 31, 2017
Assets
Buildings and improvements	$	2,029,066		$	2,436,414
Development costs and construction in progress	37,581			32,285
Land	155,807			227,162
Accumulated depreciation and amortization	(352,879		)	(542,091		)
Net real estate	1,869,575			2,153,770
Investments in and advances to unconsolidated joint ventures	1,641			2,231
Accounts receivable, net	5,761			10,242
Cash and cash equivalents	20,028			15,861
Restricted cash	3,362			2,619
Intangible assets, net	146,701			125,475
Other assets, net	34,884			33,749
Total assets	$	2,081,952		$	2,343,947
Liabilities
Mortgage debt	44,694			45,016
Intangible liabilities, net	32,058			10,672
Accounts payable and accrued liabilities	71,580			269,280
Deferred revenue	17,969			14,432
Total liabilities	$	166,301		$	339,400

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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