Segment Reporting

3 Months Ended

Mar. 31, 2014

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 represents an 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 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013). The results of operations for all acquisitions described in Note 3 are included 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 NOI as total revenues, including tenant reimbursements, less property level operating expenses. We believe NOI provides investors relevant and useful information because it measures the operating performance of our properties at the property level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties.

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 for thethreemonths ended March 31, 2014 and 2013is as follows (in thousands):

Three Months Ended March 31, 2014:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	214,828	$	-	$	121,627	$	-	$	336,455
Resident fees and services		-		456,265		-		-		456,265
Interest income		5,439		-		3,155		-		8,594
Other income		121		54		303		15		493
Total revenues		220,388		456,319		125,085		15		801,807
Property operating expenses		-		(308,184)		(33,247)		-		(341,431)
Net operating income from continuing operations		220,388		148,135		91,838		15		460,376
Reconciling items:
Interest expense		(8,890)		(27,479)		(9,608)		(74,856)		(120,833)
Depreciation and amortization		(61,404)		(129,162)		(42,752)		-		(233,318)
General and administrative		-		-		-		(32,865)		(32,865)
Transaction costs		(275)		(630)		(47)		-		(952)
(Loss) gain on extinguishment of debt, net		-		148		-		-		148
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	149,819	$	(8,988)	$	39,431	$	(107,706)	$	72,556
Total assets	$	9,407,112	$	9,081,864	$	4,670,775	$	51,291	$	23,211,042

Three Months Ended March 31, 2013:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	183,296	$	-	$	109,347	$	-	$	292,643
Resident fees and services		-		327,324		-		-		327,324
Interest income		5,844		757		2,456		-		9,057
Other income		209		-		410		81		700
Total revenues		189,349		328,081		112,213		81		629,724
Property operating expenses		-		(224,503)		(28,320)		-		(252,823)
Net operating income from continuing operations		189,349		103,578		83,893		81		376,901
Reconciling items:
Interest expense		(5,805)		(19,070)		(8,861)		(75,102)		(108,838)
(Loss) gain on derivatives, net		-		(2,309)		-		-		(2,309)
Depreciation and amortization		(54,950)		(89,875)		(39,863)		-		(184,688)
General and administrative		-		-		-		(27,179)		(27,179)
Transaction costs		(494)		(65,325)		(161)		-		(65,980)
(Loss) gain on extinguishment of debt, net		-		308		-		-		308
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	128,100	$	(72,693)	$	35,008	$	(102,200)	$	(11,785)

Our portfolio of properties and other investments are located in the United States, the United Kingdom and Canada. Revenues and assets are attributed to the country in which the property is physically located.The following is a summary of geographic information for our operations for the periods presented (dollars in thousands):

		Three Months Ended
		March 31, 2014			March 31, 2013
Revenues:		Amount	%		Amount	%
United States	$	675,099	84.2%	$	569,321	90.4%
International		126,708	15.8%		60,403	9.6%
Total	$	801,807	100.0%	$	629,724	100.0%
		As of
		March 31, 2014			December 31, 2013
Assets:		Amount	%		Amount	%
United States	$	20,113,340	86.7%	$	19,759,945	85.6%
International		3,097,702	13.3%		3,324,012	14.4%
Total	$	23,211,042	100.0%	$	23,083,957	100.0%