Segment Reporting

12 Months Ended

Dec. 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 four operating segments: seniors housing triple-net, seniors housing operating, medical office buildings and life science. During 2014, we realigned our corporate structure and operating segment designations. Accordingly, the segment information provided in this note has been reclassified to conform to the current presentation for all periods presented. As part of the change in presentation, we removed the “hospitals” operating segment. Amounts previously classified within “hospitals” and aggregated into the medical facilities reporting segment have been reclassified to seniors housing triple-net properties.

Our seniors housing triple-net properties include long-term/post-acute care facilities, hospitals, assisted living facilities, independent living/continuing care retirement communities, care homes (United Kingdom), independent support living facilities (Canada), 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 that are owned and/or operated through RIDEA structures (see Notes 3 and 18).

Our medical facility properties include medical office buildings 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 life science investment representsan investment in an unconsolidated entity (see Note 7).

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 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.

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.

Summary information for the reportable segments (which excludes unconsolidated entities) during the years ended December 31, 2014,2013 and 2012is as follows (in thousands):

Year Ended December 31, 2014:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	992,638	$	-	$	413,129	$	-	$	1,405,767
Resident fees and services		-		1,892,237		-		-		1,892,237
Interest income		32,255		2,119		3,293		-		37,667
Other income		2,973		3,215		1,010		677		7,875
Total revenues		1,027,866		1,897,571		417,432		677		3,343,546
Property operating expenses		732		1,266,308		136,318		-		1,403,358
Net operating income from continuing operations		1,027,134		631,263		281,114		677		1,940,188
Reconciling items:
Interest expense		38,460		113,099		32,904		296,576		481,039
(Loss) gain on derivatives, net		(1,770)		275		-		-		(1,495)
Depreciation and amortization		273,296		418,199		152,635		-		844,130
General and administrative		-		-		-		142,943		142,943
Transaction costs		45,146		16,880		7,512		-		69,538
(Loss) gain on extinguishment of debt, net		98		383		405		8,672		9,558
Other expenses		8,825		1,437		-		-		10,262
Income (loss) from continuing operations before income taxes and income (loss) from unconsolidated entities		663,079		80,990		87,658		(447,514)		384,213
Income tax expense		6,141		(3,047)		(1,827)		-		1,267
(Loss) income from unconsolidated entities		5,423		(38,204)		5,355		-		(27,426)
Income (loss) from continuing operations		674,643		39,739		91,186		(447,514)		358,054
Income (loss) from discontinued operations		7,135		-		-		-		7,135
Gain (loss) on real estate dispositions, net		146,205		-		906		-		147,111
Net income (loss)	$	827,983	$	39,739	$	92,092	$	(447,514)	$	512,300
Total assets	$	10,958,269	$	9,531,608	$	4,465,130	$	59,287	$	25,014,296

Year Ended December 31, 2013:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	866,138	$	-	$	361,451	$	-	$	1,227,589
Resident fees and services		-		1,616,290		-		-		1,616,290
Interest income		28,214		757		3,692		-		32,663
Other income		1,504		355		1,911		296		4,066
Total revenues		895,856		1,617,402		367,054		296		2,880,608
Property operating expenses		1,235		1,089,239		116,339		-		1,206,813
Net operating income from continuing operations		894,621		528,163		250,715		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		249,913		478,007		137,880		-		865,800
General and administrative		-		-		-		108,318		108,318
Transaction costs		24,426		107,066		1,909		-		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		589,933		(145,279)		74,103		(416,512)		102,245
Income tax expense		(1,817)		(5,337)		(270)		(67)		(7,491)
(Loss) income from unconsolidated entities		5,035		(22,695)		9,473		-		(8,187)
Income (loss) from continuing operations		593,151		(173,311)		83,306		(416,579)		86,567
Income (loss) from discontinued operations		57,742		-		(6,029)		-		51,713
Net income (loss)	$	650,893	$	(173,311)	$	77,277	$	(416,579)	$	138,280
Total assets	$	10,121,813	$	8,984,316	$	3,829,547	$	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	$	762,968	$	-	$	300,246	$	-	$	1,063,214
Resident fees and services		-		697,494		-		-		697,494
Interest income		30,654		6,208		2,203		-		39,065
Other income		2,471		-		1,888		912		5,271
Total revenues		796,093		703,702		304,337		912		1,805,044
Property operating expenses		1,082		471,678		95,229		-		567,989
Net operating income from continuing operations		795,011		232,024		209,108		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		223,921		165,798		116,501		-		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		504,131		(9,436)		51,064		(359,847)		185,912
Income tax expense		(2,852)		(1,086)		(2,381)		(1,293)		(7,612)
(Loss) income from unconsolidated entities		(33)		(6,364)		8,879		-		2,482
Income from continuing operations		501,246		(16,886)		57,562		(361,140)		180,782
Income (loss) from discontinued operations		130,053		-		(15,995)		-		114,058
Net income (loss)	$	631,299	$	(16,886)	$	41,567	$	(361,140)	$	294,840

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, 2014			December 31, 2013			December 30, 2012
Revenues:		Amount	%		Amount	%		Amount	%
United States	$	2,801,474	83.8%	$	2,489,196	86.4%	$	1,778,507	98.5%
International		542,072	16.2%		391,412	13.6%		26,537	1.5%
Total	$	3,343,546	100.0%	$	2,880,608	100.0%	$	1,805,044	100.0%
		As of
		December 31, 2014			December 31, 2013
Assets:		Amount	%		Amount	%
United States	$	20,728,477	82.9%	$	19,759,945	85.6%
International		4,285,819	17.1%		3,324,012	14.4%
Total	$	25,014,296	100.0%	$	23,083,957	100.0%