Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

17. Segment Reporting

We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations on our five operating segments: seniors housing triple-net, seniors housing operating, medical office buildings, hospitals and life science. Our seniors housing triple-net properties include skilled nursing/post-acute facilities, assisted living facilities, independent living/continuing care retirement communities and combinations thereof. Under the seniors housing triple-net segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single tenant properties. Properties acquired are primarily leased under triple-net leases and we are not involved in the management of the property. Our seniors housing operating properties include seniors housing communities that are owned and/or operated through RIDEA structures (see Note 3).

Our medical facility properties include medical office buildings, hospitals and life science buildings which are aggregated into our medical facilities reportable segment. Our medical office buildings are typically leased to multiple tenants and generally require a certain level of property management. Our hospital investments are leased and we are not involved in the management of the property. Our life science investment representsan investment in an unconsolidated entity (see Note 7).

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The results of operations for all acquisitions described in Note 3 areincluded in our consolidated results of operations from the acquisition dates and are components of the appropriate segments.There are no intersegment sales or transfers.

We evaluate performance based upon net operating income from continuing operations (“NOI”) of each segment. We define NOIas total revenues, including tenant reimbursements, less property level operating expenses, which exclude depreciation andamortization, general and administrative expenses, transaction costs, provision for loan lossesand interest expense. We believe NOI providesinvestors relevant and useful information because it measures the operating performance of our properties at the property level on anunleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of ourproperties.

Non-segment revenue consists mainly of interest income on non-real estate investments and other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI.

Summary information for the reportable segments (which excludes unconsolidated entities) during the years ended December 31, 2012,2011 and 2010 is as follows (in thousands):

Year Ended December 31, 2012:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	692,275	$	-	$	387,462	$	-	$	1,079,737
Resident fees and services		-		697,494		-		-		697,494
Interest income		24,380		6,208		8,477		-		39,065
Other income		2,412		-		1,947		912		5,271
Total revenues		719,067		703,702		397,886		912		1,821,567
Property operating expenses		-		(471,678)		(98,439)		-		(570,117)
Net operating income from continuing operations		719,067		232,024		299,447		912		1,251,450
Reconciling items:
Interest expense		(4,525)		(67,524)		(31,540)		(263,418)		(367,007)
(Loss) gain on derivatives, net		(96)		1,921		-		-		1,825
Depreciation and amortization		(203,848)		(165,798)		(146,103)		-		(515,749)
General and administrative		-		-		-		(97,341)		(97,341)
Transaction costs		(35,705)		(12,756)		(13,148)		-		(61,609)
(Loss) gain on extinguishment of debt, net		(2,405)		2,697		483		-		775
Provision for loan losses		(27,008)		-		-		-		(27,008)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	445,480	$	(9,436)	$	109,139	$	(359,847)	$	185,336
Total assets	$	8,447,698	$	5,323,777	$	4,706,159	$	1,071,475	$	19,549,109

Year Ended December 31, 2011:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	546,416	$	-	$	274,659	$	-	$	821,075
Resident fees and services		-		456,085		-		-		456,085
Interest income		34,068		-		7,002		-		41,070
Other income		6,620		-		3,985		690		11,295
Total revenues		587,104		456,085		285,646		690		1,329,525
Property operating expenses		-		(314,142)		(63,597)		-		(377,739)
Net operating income from continuing operations		587,104		141,943		222,049		690		951,786
Reconciling items:
Interest expense		(150)		(46,342)		(21,909)		(228,884)		(297,285)
Depreciation and amortization		(158,744)		(138,192)		(96,808)		-		(393,744)
General and administrative		-		-		-		(77,201)		(77,201)
Transaction costs		(27,993)		(36,328)		(5,903)		-		(70,224)
(Loss) gain on extinguishment of debt, net		-		979		-		-		979
Provision for loan losses		-		-		(2,010)		-		(2,010)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	400,217	$	(77,940)	$	95,419	$	(305,395)	$	112,301
Total assets	$	7,823,953	$	3,041,238	$	3,795,940	$	263,475	$	14,924,606

Year Ended December 31, 2010:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	282,974	$	-	$	195,960	$	-	$	478,934
Resident fees and services		-		51,006		-		-		51,006
Interest income		36,176		-		4,679		-		40,855
Other income		3,386		-		985		2,874		7,245
Total revenues		322,536		51,006		201,624		2,874		578,040
Property operating expenses		-		(32,621)		(45,166)		-		(77,787)
Net operating income from continuing operations		322,536		18,385		156,458		2,874		500,253
Reconciling items:
Interest expense		4,610		(7,794)		(17,579)		(113,129)		(133,892)
Depreciation and amortization		(81,579)		(15,504)		(67,943)		-		(165,026)
General and administrative		-		-		-		(54,626)		(54,626)
Transaction costs		(20,612)		(20,936)		(5,112)		-		(46,660)
Loss (gain) on extinguishment of debt, net		(7,791)		-		(1,308)		(25,072)		(34,171)
Provision for loan losses		(29,684)		-		-		-		(29,684)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	187,480	$	(25,849)	$	64,516	$	(189,953)	$	36,194

Our portfolio of properties and other investments are located in the United States, the United Kingdom and Canada. Revenues andassets are attributed to the country in which the property is physically located. For the yearended December 31, 2012, $25,321,000(or 1.4% of our revenues)and $856,895,000(or 4.4% of our assets) were located outside the United States.There were no revenues or assets located outside the United States for the years ended December 31, 2011 and 2010.