Segment Reporting

12 Months Ended

Dec. 31, 2013

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, care homes (United Kingdom), care homes with nursing(United Kingdom) 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 the seniors housing communities referenced above and independent supportive living facilities (Canada) that are owned and/or operated through RIDEA structures (see Notes 3 and 18).

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 operating expenses. 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, 2013,2012 and 2011is as follows (in thousands):

Year Ended December 31, 2013:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	780,785	$	-	$	446,804	$	-	$	1,227,589
Resident fees and services		-		1,616,290		-		-		1,616,290
Interest income		21,512		757		10,394		-		32,663
Other income		1,434		355		1,981		296		4,066
Total revenues		803,731		1,617,402		459,179		296		2,880,608
Property operating expenses		-		(1,089,239)		(117,574)		-		(1,206,813)
Net operating income from continuing operations		803,731		528,163		341,605		296		1,673,795
Reconciling items:
Interest expense		(23,322)		(92,148)		(36,823)		(306,067)		(458,360)
(Loss) gain on derivatives, net		(4,877)		407		-		-		(4,470)
Depreciation and amortization		(228,523)		(478,007)		(159,270)		-		(865,800)
General and administrative		-		-		-		(108,318)		(108,318)
Transaction costs		(24,350)		(107,066)		(1,985)		-		(133,401)
(Loss) gain on extinguishment of debt, net		(40)		3,372		-		(2,423)		909
Provision for loan losses		(2,110)		-		-		-		(2,110)
Income (loss) from continuing operations before income taxes and income (loss) from unconsolidated entities	$	520,509	$	(145,279)	$	143,527	$	(416,512)	$	102,245
Total assets	$	9,232,833	$	8,984,316	$	4,718,527	$	148,281	$	23,083,957

Year Ended December 31, 2012:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	684,097	$	-	$	379,117	$	-	$	1,063,214
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		710,889		703,702		389,541		912		1,805,044
Property operating expenses		-		(471,678)		(96,311)		-		(567,989)
Net operating income from continuing operations		710,889		232,024		293,230		912		1,237,055
Reconciling items:
Interest expense		(1,745)		(67,524)		(28,878)		(263,418)		(361,565)
(Loss) gain on derivatives, net		(96)		1,921		-		-		1,825
Depreciation and amortization		(200,899)		(165,798)		(139,523)		-		(506,220)
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 (loss) from unconsolidated entities	$	443,031	$	(9,436)	$	112,164	$	(359,847)	$	185,912
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	$	537,581	$	-	$	267,151	$	-	$	804,732
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		578,269		456,085		278,138		690		1,313,182
Property operating expenses		-		(314,142)		(60,922)		-		(375,064)
Net operating income from continuing operations		578,269		141,943		217,216		690		938,118
Reconciling items:
Interest expense		2,802		(46,342)		(18,557)		(228,884)		(290,981)
Depreciation and amortization		(155,797)		(138,192)		(92,489)		-		(386,478)
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 (loss) from unconsolidated entities	$	397,281	$	(77,940)	$	98,257	$	(305,395)	$	112,203

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. The following is a summary of geographic information for the periods presented (dollars in thousands):

		Year Ended
		December 31, 2013			December 31, 2012			December 31, 2011
Revenues:		Amount	%		Amount	%		Amount	%
United States	$	2,489,196	86.4%	$	1,778,507	98.5%	$	1,313,182	100.0%
International		391,412	13.6%		26,537	1.5%		-	0.0%
Total	$	2,880,608	100.0%	$	1,805,044	100.0%	$	1,313,182	100.0%
		As of
		December 31, 2013			December 31, 2012
Assets:		Amount	%		Amount	%
United States	$	19,759,945	85.6%	$	18,692,214	95.6%
International		3,324,012	14.4%		856,895	4.4%
Total	$	23,083,957	100.0%	$	19,549,109	100.0%