Segment Reporting

12 Months Ended

Dec. 31, 2015

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: triple-net, seniors housing operating, outpatient medical and life science. During the year ended December 31, 2015, we changed the names of our seniors housing triple-net segment to triple-net and our medical facilities segment to outpatient medical.

Our 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 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 outpatient medical properties include outpatient medical buildings and life science buildings which are aggregated into our outpatient medical reportable segment. Our outpatient medical buildings are typically leased to multiple tenants and generally require a certain level of property management. During the year ended December 31, 2015, we disposed of our life science investments.

We evaluate performance based upon 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 certain 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, 2015,2014 and 2013is as follows (in thousands):

Year Ended December 31, 2015:		Triple-net		Seniors Housing Operating		Outpatient Medical		Non-segment / Corporate		Total
Rental income	$	1,119,322	$	-	$	479,626	$	-	$	1,598,948
Resident fees and services		-		2,158,031		-		-		2,158,031
Interest income		74,108		4,180		5,853		-		84,141
Other income		6,871		6,060		4,684		1,091		18,706
Total revenues		1,200,301		2,168,271		490,163		1,091		3,859,826
Property operating expenses		-		1,467,009		155,248		-		1,622,257
Net operating income from continuing operations		1,200,301		701,262		334,915		1,091		2,237,569
Reconciling items:
Interest expense		30,288		147,832		28,822		285,227		492,169
(Loss) gain on derivatives, net		(58,427)		-		-		-		(58,427)
Depreciation and amortization		294,484		351,733		180,023		-		826,240
General and administrative		-		-		-		147,416		147,416
Transaction costs		53,254		54,966		2,706		-		110,926
(Loss) gain on extinguishment of debt, net		10,095		(195)		-		24,777		34,677
Impairment of assets		2,220		-		-		-		2,220
Other expenses		35,648		-		-		10,583		46,231
Income (loss) from continuing operations before income taxes and income (loss) from unconsolidated entities		832,739		146,926		123,364		(466,912)		636,117
Income tax expense		(4,244)		986		245		(3,438)		(6,451)
(Loss) income from unconsolidated entities		8,260		(32,672)		2,908		-		(21,504)
Income (loss) from continuing operations		836,755		115,240		126,517		(470,350)		608,162
Gain (loss) on real estate dispositions, net		86,261		-		194,126		-		280,387
Net income (loss)	$	923,016	$	115,240	$	320,643	$	(470,350)	$	888,549
Total assets	$	12,692,054	$	11,519,902	$	4,727,227	$	84,662	$	29,023,845

Year Ended December 31, 2014:		Triple-net		Seniors Housing Operating		Outpatient Medical		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	$	10,918,946	$	9,519,833	$	4,464,857	$	59,287	$	24,962,923

Year Ended December 31, 2013		Triple-net		Seniors Housing Operating		Outpatient Medical		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 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

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, 2015			December 31, 2014			December 30, 2013
Revenues:		Amount	%		Amount	%		Amount	%
United States	$	3,133,327	81.2%	$	2,801,474	83.8%	$	2,489,196	86.4%
International		726,499	18.8%		542,072	16.2%		391,412	13.6%
Total	$	3,859,826	100.0%	$	3,343,546	100.0%	$	2,880,608	100.0%
		As of
		December 31, 2015			December 31, 2014
Assets:		Amount	%		Amount	%
United States	$	25,995,793	89.6%	$	19,855,076	79.5%
International		3,028,052	10.4%		5,107,847	20.5%
Total	$	29,023,845	100.0%	$	24,962,923	100.0%