Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 10, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Brookdale Senior Living Inc. | ||
Entity Central Index Key | 1,332,349 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2.6 | ||
Entity Common Stock, Shares Outstanding | 185,448,112 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 216,397 | $ 88,029 |
Cash and escrow deposits - restricted | 32,864 | 32,570 |
Accounts receivable, net | 141,705 | 144,053 |
Assets held for sale | 97,843 | 110,620 |
Prepaid expenses and other current assets, net | 130,695 | 122,671 |
Total current assets | 619,504 | 497,943 |
Property, plant and equipment and leasehold intangibles, net | 7,379,305 | 8,031,376 |
Cash and escrow deposits - restricted | 28,061 | 33,382 |
Investment in unconsolidated ventures | 167,826 | 371,639 |
Goodwill | 705,476 | 725,696 |
Other intangible assets, net | 83,007 | 129,186 |
Other assets, net | 234,508 | 259,342 |
Total assets | 9,217,687 | 10,048,564 |
Current liabilities | ||
Current portion of long-term debt | 145,649 | 173,454 |
Current portion of capital and financing lease obligations | 69,606 | 62,150 |
Trade accounts payable | 77,356 | 128,006 |
Accrued expenses | 328,037 | 372,874 |
Refundable entrance fees and deferred revenue | 106,946 | 99,277 |
Tenant security deposits | 3,548 | 4,387 |
Total current liabilities | 731,142 | 840,148 |
Long-term debt, less current portion | 3,413,998 | 3,459,371 |
Capital and financing lease obligations, less current portion | 2,415,914 | 2,427,438 |
Line of credit | 0 | 310,000 |
Deferred liabilities | 267,364 | 266,537 |
Deferred tax liability | 80,646 | 69,051 |
Other liabilities | 230,891 | 217,292 |
Total liabilities | 7,139,955 | 7,589,837 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized at December 31, 2016 and December 31, 2015; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 400,000,000 shares authorized at December 31, 2016 and December 31, 2015; 193,224,082 and 190,767,191 shares issued and 190,045,681 and 188,338,790 shares outstanding (including 4,608,187 and 3,453,991 unvested restricted shares), respectively | 1,900 | 1,883 |
Additional paid-in-capital | 4,102,397 | 4,069,283 |
Treasury stock, at cost; 3,178,401 and 2,428,401 shares at December 31, 2016 and December 31, 2015, respectively | (56,440) | (46,800) |
Accumulated deficit | (1,969,875) | (1,565,478) |
Total stockholders' equity | 2,077,982 | 2,458,888 |
Stockholders' Equity Attributable to Noncontrolling Interest | (250) | (161) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,077,732 | 2,458,727 |
Total liabilities and stockholders' equity | $ 9,217,687 | $ 10,048,564 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 193,224,082 | 190,767,191 |
Common stock, shares outstanding (in shares) | 190,045,681 | 188,338,790 |
Common stock, unvested restricted shares (in shares) | 4,608,187 | 3,453,991 |
Treasury stock, shares (in shares) | 3,178,401 | 2,428,401 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | |||
Resident fees | $ 4,168,621 | $ 4,177,127 | $ 3,301,297 |
Management fees | 70,762 | 60,183 | 42,239 |
Reimbursed costs incurred on behalf of managed communities | 737,597 | 723,298 | 488,170 |
Total revenue | 4,976,980 | 4,960,608 | 3,831,706 |
Expense | |||
Facility operating expense (excluding depreciation and amortization of $469,388, $684,448 and $503,662, respectively) | 2,799,402 | 2,788,862 | 2,210,368 |
General and administrative expense (including non-cash stock-based compensation expense of $32,285, $31,651 and $28,299, respectively) | 313,409 | 370,579 | 280,267 |
Transaction costs | 3,990 | 8,252 | 66,949 |
Facility lease expense | 373,635 | 367,574 | 323,830 |
Depreciation and amortization | 520,402 | 733,165 | 537,035 |
Asset impairment | 248,515 | 57,941 | 9,992 |
Loss on facility lease termination | 11,113 | 76,143 | 0 |
Costs incurred on behalf of managed communities | 737,597 | 723,298 | 488,170 |
Total operating expense | 5,008,063 | 5,125,814 | 3,916,611 |
Income (loss) from operations | (31,083) | (165,206) | (84,905) |
Interest income | 2,933 | 1,603 | 1,343 |
Interest expense: | |||
Debt | (174,027) | (173,484) | (128,002) |
Capital and financing lease obligations | (202,012) | (211,132) | (109,998) |
Amortization of deferred financing costs and debt premium (discount) | (9,400) | (3,351) | (7,477) |
Change in fair value of derivatives | (178) | (797) | (2,711) |
Debt modification and extinguishment costs | (9,170) | (7,020) | (6,387) |
Equity in earnings (loss) of unconsolidated ventures | 1,660 | (804) | 171 |
Gain (Loss) on Sale of Properties, before Applicable Income Taxes | 7,218 | 1,270 | 446 |
Other non-operating income | 14,801 | 8,557 | 6,789 |
Income (loss) before income taxes | (399,258) | (550,364) | (330,731) |
(Provision) benefit for income taxes | (5,378) | 92,209 | 181,305 |
Net income (loss) | (404,636) | (458,155) | (149,426) |
Net income (loss) attributable to noncontrolling interest | 239 | 678 | 436 |
Net (income) loss attributable to Brookdale Senior Living Inc. common stockholders | $ (404,397) | $ (457,477) | $ (148,990) |
Basic and diluted net income (loss) per share attributable to Brookdale Senior Living Inc. common stockholders | $ (2.18) | $ (2.48) | $ (1.01) |
Weighted average shares used in computing basic and diluted net income (loss) per share | 185,653 | 184,333 | 148,185 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) [Abstract] | |||
Depreciation and amortization | $ 469,388 | $ 684,448 | $ 503,662 |
Non-cash stock-based compensation expense | $ 32,285 | $ 31,651 | $ 28,299 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Stockholders' Equity [Member] | Noncontrolling Interest [Member] |
Balances at beginning of period at Dec. 31, 2013 | $ 1,020,937 | $ 1,277 | $ 2,025,471 | $ (46,800) | $ (959,011) | $ 1,020,937 | $ 0 |
Balances at beginning of period - shares (in share) at Dec. 31, 2013 | 127,727,000 | ||||||
Compensation expense related to restricted stock grants | 28,299 | $ 0 | 28,299 | 0 | 0 | 28,299 | 0 |
Establishment of noncontrolling interest in Emeritus acquisition | 953 | 0 | 0 | 0 | 0 | 0 | 953 |
Net income (loss) | (149,426) | 0 | 0 | 0 | (148,990) | (148,990) | (436) |
Common stock issued in connection with Emeritus acquisition | $ 1,648,782 | $ 476 | 1,648,306 | 0 | 0 | 1,648,782 | 0 |
Stock Issued During Period, Shares, Acquisitions | 47,584,000 | 47,584,000 | |||||
Stock Issued During Period, Value, New Issues | $ 330,386 | $ 103 | 330,283 | 0 | 0 | 330,386 | 0 |
Stock Issued During Period, Shares, New Issues | 10,299,000 | ||||||
Issuance of common stock under Associate Stock Purchase Plan | $ 2,004 | $ 0 | 2,004 | 0 | 0 | 2,004 | 0 |
Issuance of common stock under Associate Stock Purchase Plan - shares (in shares) | 64,000 | ||||||
Restricted stock, net | $ 0 | $ 14 | (14) | 0 | 0 | 0 | 0 |
Restricted stock, net - shares (in shares) | 1,364,000 | ||||||
Other | $ 306 | $ 0 | 306 | 0 | 0 | 306 | 0 |
Stockholders' Equity, Other Shares | 0 | ||||||
Balances at end of period at Dec. 31, 2014 | $ 2,882,241 | $ 1,870 | 4,034,655 | (46,800) | (1,108,001) | 2,881,724 | 517 |
Balances at end of period - shares (in shares) at Dec. 31, 2014 | 187,038,000 | ||||||
Compensation expense related to restricted stock grants | $ 31,651 | 0 | 31,651 | 0 | 0 | 31,651 | 0 |
Net income (loss) | (458,155) | 0 | 0 | 0 | (457,477) | (457,477) | (678) |
Issuance of common stock under Associate Stock Purchase Plan | 2,870 | $ 1 | 2,869 | 0 | 0 | 2,870 | 0 |
Issuance of common stock under Associate Stock Purchase Plan - shares (in shares) | 122,000 | ||||||
Restricted stock, net | 0 | $ 12 | (12) | 0 | 0 | 0 | 0 |
Restricted stock, net - shares (in shares) | 1,179,000 | ||||||
Other | 120 | $ 0 | 120 | 0 | 0 | 120 | 0 |
Stockholders' Equity, Other Shares | 0 | ||||||
Balances at end of period at Dec. 31, 2015 | $ 2,458,727 | $ 1,883 | 4,069,283 | (46,800) | (1,565,478) | 2,458,888 | (161) |
Balances at end of period - shares (in shares) at Dec. 31, 2015 | 188,338,790 | 188,339,000 | |||||
Compensation expense related to restricted stock grants | $ 32,285 | $ 0 | 32,285 | 0 | 0 | 32,285 | 0 |
Net income (loss) | $ (404,636) | 0 | 0 | 0 | (404,397) | (404,397) | (239) |
Stock Issued During Period, Shares, New Issues | 10,298,506 | ||||||
Issuance of common stock under Associate Stock Purchase Plan | $ 2,349 | $ 2 | 2,347 | 0 | 0 | 2,349 | 0 |
Issuance of common stock under Associate Stock Purchase Plan - shares (in shares) | 172,000 | ||||||
Restricted stock, net | 0 | $ 24 | (24) | 0 | 0 | 0 | 0 |
Restricted stock, net - shares (in shares) | 2,396,000 | ||||||
Purchase of treasury stock | $ (9,640) | $ (8) | 8 | (9,640) | 0 | (9,640) | 0 |
Purchase of treasury stock (in shares) | 750,000 | (750,000) | |||||
Other | $ (1,353) | $ (1) | (1,502) | 0 | 0 | (1,503) | 150 |
Stockholders' Equity, Other Shares | (111,000) | ||||||
Balances at end of period at Dec. 31, 2016 | $ 2,077,732 | $ 1,900 | $ 4,102,397 | $ (56,440) | $ (1,969,875) | $ 2,077,982 | $ (250) |
Balances at end of period - shares (in shares) at Dec. 31, 2016 | 190,045,681 | 190,046,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (404,636) | $ (458,155) | $ (149,426) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss on extinguishment of debt, net | 1,251 | 121 | 6,387 |
Depreciation and amortization, net | 529,802 | 736,516 | 544,512 |
Asset impairment | 248,515 | 57,941 | 9,992 |
Equity in (loss) earnings of unconsolidated ventures | (1,660) | 804 | (171) |
Distributions from unconsolidated ventures from cumulative share of net earnings | 23,544 | 7,825 | 1,840 |
Amortization of deferred gain | (4,372) | (4,372) | (4,372) |
Amortization of entrance fee revenue | (4,195) | (3,204) | (21,220) |
Proceeds from deferred entrance fee revenue | 13,980 | 11,113 | 32,704 |
Deferred income tax provision (benefit) | 3,248 | (95,261) | (182,371) |
Change in deferred lease liability | 767 | 6,956 | 1,439 |
Change in fair value of derivatives | 178 | 797 | 2,711 |
Gain on sale of assets | (7,218) | (1,270) | (446) |
Change in future service obligation | 0 | (941) | 670 |
Non-cash stock-based compensation | 32,285 | 31,651 | 28,299 |
Non-cash interest expense on financing lease obligations | 26,496 | 23,472 | 12,647 |
Amortization of (above) below market lease, net | (6,864) | (7,158) | (3,444) |
Other | (9,137) | (3,157) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 1,581 | 5,608 | 3,510 |
Prepaid expenses and other assets, net | 2,954 | 51,079 | (52,868) |
Accounts payable and accrued expenses | (83,248) | (60,564) | 16,812 |
Tenant refundable fees and security deposits | (839) | (524) | (1,183) |
Deferred revenue | 3,300 | (6,911) | (3,370) |
Net cash provided by operating activities | 365,732 | 292,366 | 242,652 |
Cash Flows from Investing Activities | |||
(Increase) decrease in lease security deposits and lease acquisition deposits, net | (2,225) | 10,866 | (48,944) |
(Increase) decrease in cash and escrow deposits - restricted | 5,027 | 29,286 | 56,935 |
Additions to property, plant and equipment, and leasehold intangibles | (333,647) | (411,051) | (304,245) |
Acquisition of assets, net of related payables | (12,157) | (191,216) | (40,441) |
Acquisition of Emeritus Corporation, cash acquired | 0 | 0 | 28,429 |
Investment in unconsolidated ventures | (13,377) | (69,297) | (26,499) |
Distributions received from unconsolidated ventures | 218,973 | 9,054 | 12,275 |
Proceeds from sale of assets, net | 297,932 | 49,226 | 4,339 |
Proceeds from Insurance Settlement, Investing Activities | 9,137 | 3,157 | 0 |
Other | 7,162 | 998 | 3,269 |
Net cash provided by (used in) investing activities | 176,825 | (568,977) | (314,882) |
Cash Flows from Financing Activities | |||
Proceeds from debt | 387,348 | 585,650 | 326,639 |
Repayment of debt and capital and financing lease obligations | (469,309) | (485,762) | (584,345) |
Proceeds from line of credit | 1,276,500 | 1,175,000 | 442,000 |
Repayment of line of credit | (1,586,500) | (965,000) | (372,000) |
Proceeds from public equity offering, net | 0 | 0 | 330,386 |
Payment of financing costs, net of related payables | (2,938) | (32,622) | (9,393) |
Refundable entrance fees: | |||
Proceeds from refundable entrance fees | 3,083 | 1,939 | 20,342 |
Refunds of entrance fees | (3,984) | (4,411) | (25,865) |
Cash portion of loss on extinguishment of debt | 0 | (44) | (4,101) |
Payment on lease termination | (9,250) | (17,000) | (7,750) |
Purchase of treasury stock | (9,640) | 0 | 0 |
Other | 501 | 2,807 | 1,889 |
Net cash (used in) provided by financing activities | (414,189) | 260,557 | 117,802 |
Net (decrease) increase in cash and cash equivalents | 128,368 | (16,054) | 45,572 |
Cash and cash equivalents at beginning of year | 88,029 | 104,083 | 58,511 |
Cash and cash equivalents at end of year | $ 216,397 | $ 88,029 | $ 104,083 |
Description of Business and Org
Description of Business and Organization | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | 1. Description of Business and Organization Brookdale Senior Living Inc. ("Brookdale" or the "Company") is the leading operator of senior living communities throughout the United States. The Company is committed to providing senior living solutions primarily within properties that are designed, purpose-built and operated to provide the highest quality service, care and living accommodations for residents. The Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"). Through its ancillary services programs, the Company also offers a range of outpatient therapy, home health and hospice services to residents of many of its communities and to seniors living outside its communities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The consolidated financial statements have been prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles ("GAAP"). The significant accounting policies are summarized below: Principles of Consolidation The consolidated financial statements include the accounts of Brookdale and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Investments in affiliated companies that the Company does not control, but has the ability to exercise significant influence over governance and operation, are accounted for by the equity method. The ownership interest of consolidated entities not wholly-owned by the Company are presented as noncontrolling interests in the accompanying consolidated financial statements. Noncontrolling interest represents the share of consolidated entities owned by third parties. Noncontrolling interest is adjusted for the noncontrolling holder's share of additional contributions, distributions and the proportionate share of the net income or loss of each respective entity. The Company continually evaluates its potential variable interest entity ("VIE") relationships under certain criteria as provided for in Financial Accounting Standards Board ("FASB") ASC 810, Consolidation Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, revenue, goodwill and asset impairments, self-insurance reserves, performance-based compensation, the allowance for doubtful accounts, depreciation and amortization, income taxes and other contingencies. Although these estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from the original estimates. Revenue Recognition Resident Fees Resident fee revenue is recorded when services are rendered and consists of fees for basic housing and support services and fees associated with additional services such as assisted living care, skilled nursing care, ancillary services and personalized health services. Residency agreements are generally for a term of 30 days to one year Certain of the Company's communities have residency agreements which require the resident to pay an upfront entrance fee prior to moving into the community. The non-refundable portion of the entrance fee is recorded as deferred revenue and amortized over the estimated stay of the resident based on an actuarial valuation. The refundable portion of a resident's entrance fee is generally refundable within a certain number of months or days following contract termination or upon the resale of the unit. The refundable portion of the fee is not amortized and is included in refundable entrance fees. All refundable amounts due to residents at any time in the future are classified as current liabilities. Management Fees Management fee revenue is recorded as services are provided to the owners of the communities. Management fees are determined by an agreed upon percentage of gross revenues (as defined). Reimbursed Costs Incurred on Behalf of Managed Communities The Company manages certain communities under contracts which provide for payment to the Company of a monthly management fee plus reimbursement of certain operating expenses. Where the Company is the primary obligor with respect to any such operating expenses, the Company recognizes revenue when the goods have been delivered or the service has been rendered and the Company is due reimbursement. Such revenue is included in "reimbursed costs incurred on behalf of managed communities" on the consolidated statements of operations. The related costs are included in "costs incurred on behalf of managed communities" on the consolidated statements of operations. Purchase Accounting In determining the allocation of the purchase price of companies and communities to net tangible and identified intangible assets acquired and liabilities assumed, the Company makes estimates of fair value using information obtained as a result of pre-acquisition due diligence, marketing, leasing activities and/or independent appraisals. The Company assigned the purchase prices for companies or communities to assets acquired and liabilities assumed based on their determined fair values in accordance with the provisions of ASC 805, Business Combinations Working capital assets acquired and working capital liabilities assumed are valued on a carryover/cost basis which approximates fair value. Property, plant and equipment are valued utilizing either a discounted cash flow projection of future revenue and costs and capitalization and discount rates using current market conditions, or a direct capitalization method. The Company allocates the fair values of buildings acquired on an as-if-vacant basis and depreciates the building values over the estimated remaining lives of the buildings, not to exceed 40 years. The Company determines the allocated values of other fixed assets, such as site improvements and furniture, fixtures and equipment, based upon the replacement cost and depreciates such values over the assets' estimated remaining useful lives as determined at the applicable acquisition date. The Company determines the value of land either by considering the sales prices of similar properties in recent transactions or based on internal analysis of recently acquired and existing comparable properties within its portfolio. In connection with a business combination, the Company may assume rights and obligations under certain lease agreements pursuant to which the Company becomes the lessee of a given property. The Company assumes the lease classification previously determined by the prior lessee absent a modification in the assumed lease agreement. The Company assesses assumed operating leases, including ground leases, to determine whether the lease terms are favorable or unfavorable to the Company given current market conditions on the acquisition date. To the extent the lease terms are favorable or unfavorable relative to market conditions on the acquisition date, the Company recognizes an intangible asset or liability at fair value. The Company amortizes any acquired lease-related intangibles to facility lease expense over the remaining life of the associated lease plus any assumed bargain renewal periods. The fair value of acquired lease-related intangibles associated with the relationship with the Company's residents, if any, reflects the estimated value of in-place leases as represented by the cost to obtain residents and an estimated absorption period to reflect the value of the rent and recovery costs foregone during a reasonable lease-up period as if the acquired space was vacant. The Company amortizes any acquired in-place lease intangibles to depreciation and amortization expense over the average remaining length of stay of the residents, which is evaluated on an acquisition by acquisition basis but is generally estimated at 12 months. The Company estimates the fair value of purchase option intangible assets by discounting the difference between the applicable property's acquisition date fair value and the stated or anticipated future option price. The Company estimates the fair value of trade names using a royalty rate methodology and amortizes that value over the estimated useful life of the trade name. Management contracts and other acquired contracts are valued at a multiple of management fees and operating income or are valued utilizing discounted cash flow projections that assume certain future revenues and costs over the remaining contract term. The assets are then amortized over the estimated term of the agreement. The Company calculates the fair value of acquired long-term debt by discounting the remaining contractual cash flows of each instrument at the current market rate for those borrowings, which the Company approximates based on the rate at which the Company would expect to incur a replacement instrument on the date of acquisition, and recognizes any fair value adjustments related to long-term debt as effective yield adjustments over the remaining term of the instrument. Capital lease assets are valued by the Company as a right-to-use asset. Financing lease assets are valued as if the Company owns the assets and thus are recorded at fair value. Capital and financing lease obligations are valued based on the present value of the estimated lease payments applying a discount rate equal to the Company's estimated incremental borrowing rate at the date of acquisition. Additionally, the valuation of financing lease obligations reflects a residual value component. Preacquisition contingencies are valued when considered probable and reasonably estimable, and estimated legal fees are accrued for in accordance with the Company's existing policy. Self-insurance reserves including incurred but not reported liabilities are estimated by actuary analyses. A deferred tax asset or liability is recognized at statutory rates for the difference between the book and tax bases of the acquired assets and liabilities. The tax bases of assets and liabilities in the Emeritus transaction were carried over at historical values. The excess of the fair value of liabilities assumed and common stock issued and cash paid over the fair value of identifiable assets acquired is allocated to goodwill, which is not amortized by the Company. Deferred Financing Costs Third-party fees and costs incurred to obtain long-term debt are recorded as a direct adjustment to the carrying value of debt and amortized on a straight-line basis, which approximates the effective yield method, over the term of the related debt. Unamortized deferred financing fees are written-off if the associated debt is retired before the maturity date. Upon the refinancing of mortgage debt or amendment of the line of credit, unamortized deferred financing fees and additional financing costs incurred are accounted for in accordance with ASC 470-50, Debt Modifications and Extinguishments Income Taxes Income taxes are accounted for under the asset and liability approach which requires recognition of deferred tax assets and liabilities for the differences between the financial reporting and tax bases of assets and liabilities. A valuation allowance reduces deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has elected the "with-and-without approach" regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefits would be recognized in additional paid-in capital only if an incremental tax benefit is realized after considering all other tax benefits presently available. Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Cash and cash equivalents and cash and escrow deposits – restricted are reflected in the accompanying consolidated balance sheets at amounts considered by management to reasonably approximate fair value due to the short maturity. The Company's derivative assets include interest rate caps that effectively manage the risk above certain interest rates for a portion of the Company's variable rate debt. The derivative positions are valued using models developed internally by the respective counterparty that use as their basis readily observable market parameters (such as forward yield curves) and are classified within Level 2 of the valuation hierarchy. The Company considers the credit risk of its counterparties when evaluating the fair value of its derivatives. The Company estimates the fair value of its debt using a discounted cash flow analysis based upon the Company's current borrowing rate for debt with similar maturities and collateral securing the indebtedness. The Company had outstanding debt (including the Company's secured credit facility but excluding capital and financing lease obligations) with a carrying value of approxim ately $3.6 billion and $3.9 billion Cash and Cash Equivalents The Company defines cash and cash equivalents as cash and investments with maturities of 90 days or less when purchased. Cash and Escrow Deposits – Restricted Cash and escrow deposits – restricted consist principally of deposits required by certain lenders and lessors pursuant to the applicable agreement and consist of the following (dollars in thousands): December 31, 2016 2015 Current: Real estate tax and property insurance escrows $ 19,671 $ 18,862 Replacement reserve escrows 6,970 8,011 Resident deposits 764 862 Other 5,459 4,835 Subtotal 32,864 32,570 Long term: Insurance deposits 12,941 15,318 CCRC escrows 13,301 13,233 Debt service reserve 1,819 3,429 Letter of credit collateral — 1,202 Other — 200 Subtotal 28,061 33,382 Total $ 60,925 $ 65,952 Accounts Receivable, net Accounts receivable are reported net of an allowance for doubtful accounts, to represent the Company's estimate of the amount that ultimately will be realized in cash. The allowance for doubtful accounts was $27.0 million and $26.5 million as of December 31, 2016 and 2015, respectively. The adequacy of the Company's allowance for doubtful accounts is reviewed on an ongoing basis, using historical payment trends, write-off experience, analyses of receivable portfolios by payor source and aging of receivables, as well as a review of specific accounts, and adjustments are made to the allowance as necessary. Billings for services under third-party payor programs are recorded net of estimated retroactive adjustments, if any, under reimbursement programs. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods or as final settlements are determined. Contractual or cost related adjustments from Medicare or Medicaid are accrued when assessed (without regard to when the assessment is paid or withheld). Subsequent adjustments to these accrued amounts are recorded in net revenues when known. Assets Held for Sale The Company designates communities as held for sale when it is probable that the properties will be sold within one year. The Company records these assets on the consolidated balance sheet at the lesser of the carrying value and fair value less estimated selling costs. If the carrying value is greater than the fair value less the estimated selling costs, the Company records an impairment charge. The Company allocates a portion of the goodwill of a reporting unit to the disposal if the disposal constitutes a business. The Company determines the fair value of the communities based primarily on purchase and sale agreements from prospective purchasers (Level 2 input). The Company evaluates the fair value of the assets held for sale each period to determine if it has changed. The long-lived assets are not depreciated while classified as held for sale. Property, Plant and Equipment and Leasehold Intangibles Property, plant and equipment and leasehold intangibles, which include amounts recorded under capital and financing leases, are recorded at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Category Estimated Useful Life (in years) Buildings and improvements 40 Furniture and equipment 3 – 7 Resident lease intangibles 1 – 3 Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Renovations and improvements, which improve and/or extend the useful life of the asset, are capitalized and depreciated over their estimated useful life or if the renovations or improvements are made with respect to communities subject to an operating lease, over the shorter of the estimated useful life of the renovations or improvements, or the term of the operating lease. Assets under capital and financing leases and leasehold improvements are depreciated over the shorter of the estimated useful life of the assets or the term of the lease. Facility operating expense excludes depreciation and amortization directly attributable to the operation of the facility. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets held for use are assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset, calculated utilizing the lowest level of identifiable cash flows. If estimated future undiscounted net cash flows are less than the carrying amount of the asset then the fair value of the asset is estimated. The impairment expense is determined by comparing the estimated fair value of the asset to its carrying value, with any amount in excess of fair value recognized as an expense in the current period. Undiscounted cash flow projections and estimates of fair value amounts are based on a number of assumptions such as revenue and expense growth rates, estimated holding periods and estimated capitalization rates (Level 3). Goodwill and Intangible Assets The Company follows ASC 350, Goodwill and Other Intangible Assets Acquired intangible assets are initially valued at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives and all intangible assets are reviewed for impairment if indicators of impairment arise. The evaluation of impairment for definite-lived intangibles is based upon a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset. If estimated future undiscounted net cash flows are less than the carrying amount of the asset, then the fair value of the asset is estimated. The impairment expense is determined by comparing the estimated fair value of the intangible asset to its carrying value, with any shortfall from fair value recognized as an expense in the current period. Indefinite-lived intangible assets are not amortized but are tested for impairment annually during the fourth quarter or more frequently as required. The impairment test consists of a comparison of the estimated fair value of the indefinite-lived intangible asset with its carrying value. If the carrying amount exceeds its fair value, an impairment loss is recognized for that difference. Amortization of the Company's definite-lived intangible assets is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Category Estimated Useful Life (in years) Trade names 2 – 5 Other 3 – 9 Stock-Based Compensation The Company follows ASC 718, Compensation - Stock Compensation Certain of the Company's employee stock awards vest only upon the achievement of performance targets. ASC 718 requires recognition of compensation cost only when achievement of performance conditions is considered probable. Consequently, the Company's determination of the amount of stock compensation expense requires a significant level of judgment in estimating the probability of achievement of these performance targets. Additionally, the Company must make estimates regarding employee forfeitures in determining compensation expense. Subsequent changes in actual experience are monitored and estimates are updated as information is available. For all share-based awards with graded vesting other than awards with performance-based vesting conditions, the Company records compensation expense for the entire award on a straight-line basis (or, if applicable, on the accelerated method) over the requisite service period. For graded-vesting awards with performance-based vesting conditions, total compensation expense is recognized over the requisite service period for each separately vesting tranche of the award as if the award is, in substance, multiple awards once the performance target is deemed probable of achievement. Performance goals are evaluated quarterly. If such goals are not ultimately met or it is not probable the goals will be achieved, no compensation expense is recognized and any previously recognized compensation expense is reversed. Convertible Debt Instruments Convertible debt instruments are accounted for under ASC 470-20, Debt – Debt with Conversion and Other Options Self-Insurance Liability Accruals The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the Company maintains general liability and professional liability insurance policies for its owned, leased and managed communities under a master insurance program, the Company's current policies provide for deductibles for each and every claim. As a result, the Company is, in effect, self-insured for claims that are less than the deductible amounts. In addition, the Company maintains a high deductible workers compensation program and a self-insured employee medical program. The Company reviews the adequacy of its accruals related to these liabilities on an ongoing basis, using historical claims, actuarial valuations, third-party administrator estimates, consultants, advice from legal counsel and industry data, and adjusts accruals periodically. Estimated costs related to these self-insurance programs are accrued based on known claims and projected claims incurred but not yet reported. Subsequent changes in actual experience are monitored, and estimates are updated as information becomes available. During the year ended December 31, 2016, the Company reduced its estimate for the amount of expected losses for general liability and professional liability and workers compensation claims, based on recent historical claims experience. As a result, the Company decreased the accrued reserves for general liability and professional liability and workers compensation claims by $22.7 million and $12.7 million, respectively, during the year ended December 31, 2016. The reduction in these accrued reserves decreased facility operating expense by $35.4 million for the year ended December 31, 2016. Investment in Unconsolidated Ventures In accordance with ASC 810 , Consolidation, The initial carrying value of investments in unconsolidated ventures is based on the amount paid to purchase the investment interest or the carrying value of assets contributed to the unconsolidated ventures. The Company's reported share of earnings of an unconsolidated venture is adjusted for the impact, if any, of basis differences between its carrying value of the equity investment and its share of the venture's underlying assets. Distributions received from an investee are recognized as a reduction in the carrying amount of the investment. If distributions are received from an investee that would reduce the carrying amount of an equity method investment below zero, the Company evaluates the facts and circumstances of the dividends to determine the appropriate accounting for the excess distribution, including an evaluation of the source of the proceeds and implicit or explicit commitments to fund the investee. The excess distribution is either recorded as a gain on investment, or in instances where the source of proceeds is from financing activities or the Company has a significant commitment to fund the investee, the excess distribution would result in an equity method liability and the Company would continue to record its share of the investee's earnings and losses. When the Company does not have a significant requirement to contribute additional capital over and above the original capital commitment and the carrying value of the investment in unconsolidated venture is reduced to zero, the Company discontinues applying the equity method of accounting unless the venture has an expectation of an imminent return to profitability. If the venture subsequently reports net income, the equity method of accounting is resumed only after the Company's share of that net income equals the share of net losses not recognized during the period the equity method was suspended. The Company evaluates realization of its investment in ventures accounted for using the equity method if circumstances indicate that the Company's investment is other than temporarily impaired. A current fair value of an investment that is less than its carrying amount may indicate a loss in value of the investment. If the Company determines that an equity method investment is other than temporarily impaired, it is recorded at its fair value with an impairment charge recognized in asset impairment expense for the difference between its carrying amount and fair value. Community Leases The Company, as lessee, makes a determination with respect to each of its community leases as to whether each should be accounted for as an operating lease or capital lease. The classification criteria is based on estimates regarding the fair value of the leased community, minimum lease payments, effective cost of funds, the economic life of the community and certain other terms in the lease agreements. In a business combination, the Company assumes the lease classification previously determined by the prior lessee absent a modification, as determined by ASC 840, Leases For communities under capital lease and lease financing obligation arrangements, a liability is established on the Company's consolidated balance sheets representing the present value of the future minimum lease payments and a residual value for financing leases and a corresponding long-term asset is recorded in property, plant and equipment and leasehold intangibles in the consolidated balance sheets. For capital lease assets, the asset is depreciated over the remaining lease term unless there is a bargain purchase option in which case the asset is depreciated over the useful life. For financing lease assets, the asset is depreciated over the useful life of the asset. Leasehold improvements purchased during the term of the lease are amortized over the shorter of their economic life or the lease term. All of the Company's leases contain fixed or formula-based rent escalators. To the extent that the escalator increases are tied to a fixed index or rate, lease payments are accounted for on a straight-line basis over the life of the lease. In addition, all rent-free or rent holiday periods are recognized in lease expense on a straight-line basis over the lease term, including the rent holiday period. Sale-leaseback accounting is applied to transactions in which an owned community is sold and leased back from the buyer if certain continuing involvement criteria are met. Under sale-leaseback accounting, the Company removes the community and related liabilities from the consolidated balance sheets. Gain on the sale is deferred and recognized as a reduction of facility lease expense for operating leases and a reduction of interest expense for capital leases. For leases in which the Company is involved with the construction of the building, the Company accounts for the lease during the construction period under the provisions of ASC 840. If the Company concludes that it has substantively all of the risks of ownership during construction of a leased property and therefore is deemed the owner of the project for accounting purposes, it records an asset and related financing obligation for the amount of total project costs related to construction in progress. Once construction is complete, the Company considers the requirements under ASC 840-40. If the arrangement qualifies for sale-leaseback accounting, the Company removes the assets and related liabilities from the consolidated balance sheets. If the arrangement does not qualify for sale-leaseback accounting, the Company continues to amortize the financing obligation and depreciate the assets over the lease term. Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders' equity. New Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash, a consensus of the FASB Emerging Issues Task Force In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows-Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers • Resident Fees • Management Fees and Reimbursed Costs Incurred on Behalf of Managed Communities • Equity in Earnings (Loss) of Unconsolidated Ventures Additionally, real estate sales with customers are within the scope of ASU 2014-09. Under ASU 2014-09 the revenue recognition for real estate sales is largely based on the transfer of control versus continuing involvement under the current guidance. As a result, more transactions may qualify as sales of real estate and revenue may be recognized sooner. The Company will apply the five step revenue model to all future real estate transaction with customers. Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Basic earnings per share ("EPS") is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. For purposes of calculating basic and diluted earnings per share, vested restricted stock awards are considered outstanding. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if securities or other instruments that are convertible into common stock were exercised or could result in the issuance of common stock. Potentially dilutive common stock equivalents include unvested restricted stock, restricted stock units and convertible debt instruments and warrants. During the years ended December 31, 2016, 2015 and 2014, the Company reported a consolidated net loss. As a result of the net loss, unvested restricted stock, restricted stock units and convertible debt instruments and warrants were antidilutive for each year and were not included in the computation of diluted weighted average shares. The weighted average restricted stock and restricted stock units excluded from the calculations of diluted net loss per share were 4.3 million, 3.7 million and 3.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. The calculation of diluted weighted average shares excludes the impact of conversion of the outstanding principal amount of $316.3 million of the Company's 2.75% convertible senior notes due June 15, 2018. As of December 31, 2016, 2015 and 2014, the maximum number of shares issuable upon conversion of the notes is approximately 13.8 million (after giving effect to additional make-whole shares issuable upon conversion in connection with the occurrence of certain events); however it is the Company's current intent and policy to settle the principal amount of the notes in cash upon conversion. The maximum number of shares issuable upon conversion of the notes in excess of the amount of principal that would be settled in cash is approximately 3.0 million. In addition, the calculation of diluted weighted average shares excludes the impact of the exercise of warrants to acquire the Company's common stock. As of December 31, 2016, 2015 and 2014, the number of shares issuable upon exercise of the warrants was approximately 10.8 million. See Note 8 for more information about the 2.75% convertible notes and warrants. |
Acquisitions and Other Signific
Acquisitions and Other Significant Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions and Other Significant Transactions [Abstract] | |
Acquisitions and Dispositions | 4. Acquisitions, Dispositions and Other Significant Transactions 2016 Dispositions of Owned Communities The Company began 2016 with 17 of its owned communities classified as held for sale as of December 31, 2015. During the year ended December 31, 2016, the Company entered into agreements to sell an additional 51 communities and completed the dispositions of 51 owned communities. These transactions are summarized below. • During the three months ended March 31, 2016, the Company sold seven of the 17 communities held for sale as of December 31, 2015 for an aggregate sales price of $46.7 million. The results of operations of these communities are reported in the Assisted Living and CCRCs – Rental segments within the consolidated financial statements through the respective disposition dates. The remaining 10 communities were classified as held for sale as of December 31, 2016. • During the three months ended June 30, 2016, the Company entered into an agreement with a third party to sell a 12-state portfolio of 44 owned communities for an aggregate sales price of $252.5 million. During the three months ended September 30, 2016, the Company sold 32 of these communities for an aggregate sales price of $177.5 million. During the three months ended December 31, 2016, the Company sold nine of these communities for an aggregate sales price of $47.7 million. The results of operations of these 41 communities are reported within the Assisted Living segment within the consolidated financial statements through the respective disposition dates. During the three months ended December 31, 2016, the agreement was amended to remove one community from the portfolio, and the aggregate sales price of the portfolio was decreased by $4.7 million. The remaining two communities within the portfolio were classified as held for sale as of December 31, 2016. • During 2016, the Company identified seven additional owned communities as held for sale. During the three months ended December 31, 2016, the Company sold three of these communities for an aggregate sales price of $33.0 million. The results of operations of these three communities are reported in the Assisted Living, CCRCs – Rental and Retirement Center segments through the respective disposition dates. The remaining four communities were classified as held for sale as of December 31, 2016. As of December 31, 2016, $97.8 million was recorded as assets held for sale and $60.5 million of mortgage debt was included in the current portion of long-term debt within our consolidated balance sheet with respect to the 16 communities held for sale as of such date. This debt will either be repaid with the proceeds from the sales or be assumed by the prospective purchasers. The results of operations of the 16 communities are reported in the following segments within the consolidated financial statements: Assisted Living (13 communities) and CCRCs – Rental (three communities). The 16 communities had resident fee revenue of $47.2 million and facility operating expenses of $42.0 million for the year ended December 31, 2016. During the year ended December 31, 2016, the Company recognized $15.8 million of impairment expense related to assets held for sale, primarily due to the excess of carrying value, including allocated goodwill, over the estimated selling price less costs to dispose. The closings of the sales of the unsold communities classified as held for sale are subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, and are expected to occur in the next 12 months; however, there can be no assurance that the transactions will close or, if they do, when the actual closings will occur. 2016 Dispositions and Restructurings of Leased Communities On November 1, 2016, the Company announced that it had entered into agreements to, among other things, terminate triple-net leases with respect to 97 communities, four of which would be contributed to an existing unconsolidated venture in which the Company holds an equity interest and 64 of which would be owned by a venture in which the Company expects to acquire a non-controlling interest. The transactions include the following components: • HCP, Inc. ("HCP") and affiliates of Blackstone Real Estate Advisors VIII L.P. (collectively, "Blackstone") entered into an agreement pursuant to which HCP has agreed to sell 64 communities—which are currently leased to the Company and have a remaining average lease term of approximately 12 years—to Blackstone for a purchase price of $1.125 billion (the "HCP Sale Transaction"). Separately, the Company entered into an agreement with Blackstone pursuant to which the Company has agreed to form a venture (the "Blackstone Venture") into which Blackstone will contribute the 64 communities and into which the Company expects to contribute a total of approximately $170.0 million to purchase a 15% equity interest, terminate the leases, and fund its share of anticipated closing costs and working capital. Following closing, the Company will manage the communities on behalf of the venture. The Company expects the Blackstone Venture transactions to close during the three months ended March 31, 2017. The results of operations of the 64 communities are reported in the following segments within the consolidated financial statements: Assisted Living (48 communities), Retirement Centers (nine communities) and CCRCs-Rental (seven communities). The 64 communities had resident fee revenue of $264.7 million, facility operating expenses of $182.0 million and cash lease payments of $88.4 million for the year ended December 31, 2016. • The Company and HCP agreed to terminate triple-net leases with respect to eight communities. HCP agreed to contribute immediately thereafter four of such communities to an existing unconsolidated venture with HCP in which the Company has a 10% equity interest. During the three months ended December 31, 2016, the triple-net leases with respect to seven communities were terminated and HCP contributed four of the communities to an existing unconsolidated venture with HCP in which the Company has a 10% equity interest. The triple-net lease with respect to the remaining community was terminated during January 2017. The results of operations of the eight communities are reported in the following segments within the consolidated financial statements: Assisted Living (six communities), Retirement Centers (one community) and CCRCs-Rental (one community). The eight communities had resident fee revenue of $41.1 million, facility operating expenses of $30.6 million and cash lease payments of $11.3 million for the year ended December 31, 2016. • The Company and HCP agreed to terminate triple-net leases with respect to 25 communities, which the Company expects to occur in stages through the end of fiscal 2017 (the "HCP Termination Transactions"). During the three months ended December 31, 2016, the Company and HCP amended the leases with respect to these 25 communities to shorten the term of the leases to facilitate the HCP Termination Transactions, with the term with respect to each such community to end on the earlier of October 31, 2017 and the date on which such community is sold or the operations of such community are transferred, at the direction of HCP, to a third party tenant or operator. As a result of the agreement to amend and terminate the community lease agreements for these 25 communities, the Company recorded an $11.1 million loss on facility lease termination within the consolidated statement of operations for the year ended December 31, 2016. The results of operations of the 25 communities are reported in the following segments within the consolidated financial statements: Assisted Living (23 communities) and CCRCs-Rental (two communities). The 25 communities had resident fee revenue of $72.2 million, facility operating expenses of $58.6 million and cash lease payments of $18.9 million for the year ended December 31, 2016. The closings of the various pending transactions with HCP and Blackstone are subject to the satisfaction of various closing conditions, including (where applicable) the receipt of regulatory approvals; however, there can be no assurance that the transactions will close or, if they do, when the actual closings will occur. The transactions related to the Blackstone Venture may require the Company to record a significant charge in fiscal 2017 for the amount by which the initial carrying value of the investment in the Blackstone Venture exceeds its fair value. The initial carrying value of the investment in the Blackstone Venture would be based on the total of the approximately $170.0 million of cash expected to be contributed to purchase the equity interest and the carrying value of the Company's assets and liabilities under operating and capital and financing leases expected to be contributed by the Company and deconsolidated from the Company's consolidated financial statements. As of December 31, 2016, the carrying value of the lease obligations for the 64 communities exceed the carrying value of the assets under operating and capital and financing leases by approximately $107.0 million. In connection with these contributions, for accounting purposes, if the approximately $63.0 million net contribution amount exceeds the fair value of the Company's anticipated 15% interest in the Blackstone Venture, a charge may be required for the excess amount upon closing of the Blackstone Venture. Additionally, it is expected that these transactions related to the Blackstone Venture may require the Company to record a significant increase to the Company's existing tax valuation allowance, after considering the change in the Company's future reversal of estimated timing differences resulting from these transactions, mainly caused by removing the deferred positions related to the contributed leases. The Company has recorded valuation allowances of $264.3 million at December 31, 2016 against its $369.5 million of federal and state net operating carryforwards and tax credits as the Company anticipates these losses will not be utilized prior to expiration. The actual amount of charges related to the transactions related to the Blackstone Venture and the increase to the valuation allowance will be determined following the closing of the Blackstone Venture. Asset Impairment The following is a summary of the asset impairment expense (dollars in millions): For the Years Ended December 31, 2016 2015 2014 Property, plant and equipment and leasehold intangibles, net (Note 6) $ 166.2 $ 23.4 $ 10.0 Investment in unconsolidated ventures (Note 5) 36.8 — — Other intangible assets, net (Note 7) 29.7 0.9 — Assets held for sale 15.8 33.6 — Asset impairment $ 248.5 $ 57.9 $ 10.0 During the three months ended December 31, 2016, asset impairment expense includes $151.3 million of charges for property, plant and equipment and leasehold intangibles, $36.8 million of charges for investments in unconsolidated ventures, $29.7 million of charges for other intangible assets and $4.1 million of charges for assets held for sale. 2015 Community Acquisitions On December 29, 2014, the Company exercised its purchase option under the Master Lease (as defined below) with HCP. As a result, the Company agreed to purchase the fee simple interest of nine communities previously leased to the Company for an aggregate purchase price of $60.0 million. On December 31, 2014, the Company paid the full purchase price of $51.4 million of cash as a deposit for the purchase of eight of the nine communities, and the Company took title to these eight communities at the closing on January 1, 2015. On May 1, 2015, the Company acquired the ninth community and paid the remainder of the purchase price of $8.6 million of cash. The results of operations of these communities are reported in the Assisted Living and CCRCs - Rental segments within the consolidated financial statements. In February 2015, the Company acquired the underlying real estate associated with 15 communities that were previously leased for an aggregate purchase price of $268.6 million. The results of operations of these communities are reported in the Retirement Centers, Assisted Living, and CCRCs – Rental segments within the consolidated financial statements for the year ended December 31, 2015. The Company financed the transaction with cash on hand, amounts drawn on the secured credit facility and $20.0 million of seller financing. The $20.0 million note has a five year term and bears interest at a fixed rate of 8.0%. The fair value of the communities acquired was determined to approximate $187.2 million. The fair values of the property, plant and equipment of the acquired communities were determined utilizing a direct capitalization method considering stabilized facility operating income and market capitalization rates. These fair value measurements were based on current market conditions as of the acquisition date and are considered Level 3 measurements within the fair value hierarchy. The range of capitalization rates utilized was 6.25% to 8.75%, depending upon the property type, geographical location, and the quality of the respective community. The Company recorded the difference between the amount paid and the estimated fair value of the communities acquired ($76.1 million) as a loss on facility lease termination on the consolidated statement of operations for the year ended December 31, 2015, which includes the reversal of $5.3 million of deferred lease liabilities associated with the termination of the operating lease agreements. The payment for the termination of the lease agreements has been included within net cash provided by operating activities within the consolidated statement of cash flows for the year ended December 31, 2015. In October 2015, the Company acquired the underlying real estate associated with five communities that were previously leased for an aggregate purchase price of $78.4 million. The results of operations of these communities are reported in the Assisted Living segment. The Company financed the transaction with seller-financing. 2015 Dispositions of Owned Communities During the year ended December 31, 2015, the Company sold 17 communities for an aggregate selling price of $82.9 million. The results of operations of the communities are reported in the Retirement Centers, Assisted Living, and CCRCs - Rental segments within the consolidated financial statements through the respective disposition dates. As of December 31, 2015, the Company identified 17 communities as held for sale. As of December 31, 2015, $110.6 million was recorded as assets held for sale and $60.8 million of mortgage debt related to communities held for sale was included in the current portion of long-term debt within the Company's consolidated balance sheet. During the year ended December 31, 2015, the Company recognized $18.4 million of impairment expense related to communities sold in 2015 and $15.2 million of impairment expense related to communities identified as assets held for sale as of December 31, 2015, primarily due to the excess of carrying value, including allocated goodwill, over the estimated selling price less costs to dispose. 2014 Acquisition of Emeritus On July 31, 2014, the Company completed the merger contemplated by that certain Agreement and Plan of Merger, dated as of February 20, 2015, by and among Emeritus Corporation ("Emeritus"), the Company, and Broadway Merger Sub Corporation, a wholly-owned subsidiary of the Company ("Merger Sub"), pursuant to which Merger Sub merged with and into Emeritus, with Emeritus continuing as the surviving corporation and a wholly-owned subsidiary of the Company (the "Merger"). Prior to the Merger, Emeritus was a senior living service provider focused on operating residential style communities throughout the United States. As of July 31, 2014 Emeritus operated 493 communities, including assisted living and dementia care communities. Many of these communities offer independent living alternatives and, to a lesser extent, skilled nursing care. As of July 31, 2014, Emeritus owned 182 communities and leased 311 communities. Prior to the Merger, Emeritus also offered a range of outpatient therapy and home health services in Florida, Arizona and Texas. For accounting purposes, the Merger was accounted for by the Company as a purchase. The results of Emeritus' operations have been included in the consolidated financial statements subsequent to July 31, 2014. Revenue and loss from operations of Emeritus included in the Company's consolidated statements of operations for the year ended December 31, 2014 were $785.5 million and $128.2 million, respectively. The aggregate acquisition-date fair value of the consideration transferred in the Merger was approximately $3.0 billion which consisted of the issuance of 47.6 million shares of the Company's common stock with a fair value of approximately $1.6 billion upon the cancellation of all shares of Emeritus' common stock and stock options, as well as the Company's assumption of approximately $1.4 billion aggregate principal amount of existing mortgage indebtedness of Emeritus. The fair value of the 47.6 million common shares issued was determined based on the closing market price of the Company's common shares on July 31, 2014, the effective date of the Merger. As a result of the acquisition of Emeritus, the Company acquired, directly or indirectly, entities that were lessees under operating and capital leases covering 311 communities, as well as certain other leases such as office leases and leases associated with Emeritus' Nurse on Call home health business. The community leases contain customary terms, including assignment and change of control restrictions, maintenance and capital expenditure obligations, termination provisions and financial covenants. In connection with the Merger, the Company entered into guarantees of certain of these leases. The $1.4 billion aggregate principal amount of existing mortgage debt assumed, directly or indirectly, by the Company in the Merger was collateralized by a total of 179 underlying communities, bore interest either at fixed rates at a weighted average of 6.06% per annum or at variable rates at a weighted average of 5.49% per annum (in each case, as of July 31, 2014), and had remaining maturities ranging from approximately three months to 33 years. The mortgage loans contained customary terms including assignment and change of control restrictions, acceleration provisions and financial covenants. In connection with the Merger, the Company entered into guarantees of certain of these debt arrangements. Emeritus maintained general and professional liability coverage for its owned, leased and managed communities under insurance policies that provided for self-insured retention. In certain historical periods Emeritus was uninsured for a subset of communities. In addition, it maintained a large-deductible workers compensation and a self-insured employee medical program. Emeritus accrued for claims under these three programs and therefore maintained reserves for liabilities related thereto. The Company acquired these liabilities as a result of the Merger, evaluated the adequacy of Emeritus' insurance reserves by reviewing historical claims, investigating claim files with assistance from Emeritus' third party administrators and other consultants, reviewing Emeritus' historical actuarial reports, and obtaining new actuarial valuations for claims incurred but not paid as of the date of the Merger. The Company also acquired tail insurance to provide coverage for general and professional liability claims incurred before the Merger date but made after, and maintains reserves for deductibles payable under the tail policies. The fair values of the acquired property, plant and equipment, including communities and assets under capital and financing leases, were determined utilizing a direct capitalization method considering stabilized facility operating income and market capitalization rates. These fair value measurements were based on current market conditions as of the acquisition date and are considered Level 3 measurements within the fair value hierarchy. The range of capitalization rates utilized was 5.5% to 9.75%, depending upon the property type, geographical location, and the quality of the respective community. The fair values of the acquired capital and financing lease obligations were determined utilizing a discounted cash flow approach considering the estimated contractual lease payments and a market discount rate. These fair value measurements were based on current market conditions as of the acquisition date and are considered Level 3 measurements within the fair value hierarchy. The range of discount rates utilized was 6.0% to 10.75%, depending upon the remaining lease term, property type, geographical location, and the quality of the respective community. The fair values of the acquired long-term debt obligations were determined utilizing a discounted cash flow approach considering the estimated contractual long-term debt payments and a market discount rate. These fair value measurements were based on current market conditions as of the acquisition date and are considered Level 2 measurements within the fair value hierarchy. The range of discount rates utilized was 3.0% to 7.0%, depending upon the remaining debt term and collateral securing the indebtedness. The table below presents the allocation of purchase price to the assets acquired and liabilities assumed (in millions): Cash and cash equivalents $ 28 Property, plant and equipment and leasehold intangibles 5,506 Goodwill 645 Other intangible assets, net 259 Other assets, net 307 Trade accounts payable and accrued expenses (297 ) Long-term debt (1,516 ) Capital and financing lease obligations (2,692 ) Deferred tax liability (339 ) Other liabilities (251 ) Noncontrolling interest (1 ) Fair value of Brookdale common stock issued $ 1,649 The goodwill of $645.2 million was primarily attributable to the synergies expected to arise after the Merger. The Retirement Centers, Assisted Living and Brookdale Ancillary Services segments were allocated goodwill of $20.5 million, $497.9 million and $126.8 million, respectively. The goodwill is not deductible for tax purposes. The following table provides the pro forma consolidated operational data as if the Company had acquired Emeritus on January 1, 2013 (unaudited, in millions, except share and per share data): 2014 Total revenue $ 5,055 Net income (loss) attributable to common stockholders (103 ) Basic and diluted net income (loss) per share attributable to common stockholders $ (0.59 ) Weighted average shares used in computing basic and diluted net income (loss) per share (in thousands) 175,823 The Company incurred $57.1 million of transaction costs related to the acquisition of Emeritus for the year ended December 31, 2014. Transaction costs are primarily comprised of transaction fees and direct acquisition costs, including legal, finance, consulting, professional fees and other third party costs. The proforma consolidated operational data for the year ended December 31, 2014 excludes $57.1 million of transaction costs that were directly attributable to the Merger. On August 29, 2014, the Company completed the HCP Transactions (as defined below). The pro forma consolidated operational data reflects the Company's full ownership interests and previously existing lease terms through the closing of the HCP Transactions on August 29, 2014 and reflects the Company's subsequent venture arrangements and amended lease terms for the remainder of the 2014 period. The pro forma consolidated operational data is based on assumptions and estimates considered appropriate by the Company's management; however, these pro forma results are not necessarily indicative of the results of operations that would have been obtained had the Merger occurred at the beginning of the period presented, nor does it purport to represent the consolidated results of operations for future periods. The pro forma consolidated operational data does not include the impact of any synergies that have been, or may be, achieved from the acquisition of Emeritus or any strategies that management has implemented or considered or may implement or consider in order to continue to efficiently manage operations. On July 30, 2014, in connection with the Merger, the Company's Certificate of Incorporation was amended to authorize up to 400 million shares of common stock. 2014 HCP Transactions On August 29, 2014, the Company completed the transactions contemplated by that certain Master Contribution and Transactions Agreement (the "Master Agreement"), dated as of April 23, 2014, by and between the Company and HCP. At the closing of these transactions (the "Closing"), the Company and HCP entered into two ventures and amended the terms of certain existing agreements between the Company and HCP ("HCP Transactions"). Each of the ventures contemplated by the Master Agreement uses a "RIDEA" structure, whereby at the Closing each of the Company and HCP invested in an "opco" entity and a "propco" entity. The propco owns most of the applicable communities and leases such communities to the opco pursuant to long-term leases entered into at the Closing. The opco owns the remainder of the applicable communities not owned by the propco, and at the Closing the opco engaged an affiliate of the Company to manage all of the owned and leased communities pursuant to management agreements with 15-year terms subject to certain extension options. Venture Relating to Entry Fee CCRCs. The results of operations and financial position of the ten previously owned or leased entry fee CCRCs, including refundable entrance fee liabilities and deferred revenue, were in all material respects deconsolidated from the Company prospectively upon formation of the CCRC Venture. The Company's interest in the CCRC Venture is accounted for under the equity method of accounting. The Company's investment basis in the CCRC Venture is based on the carrying values of the net assets it contributed which is less than the Company's proportional share of underlying fair value of equity. Venture Relating to Emeritus / HCP Communities. The results and financial position of the communities were, in all material respects, deconsolidated from the Company prospectively upon formation of the HCP 49 Venture. The Company's interest in the venture is accounted for under the equity method of accounting. Pursuant to the terms of the Master Agreement, the Company was required to pay HCP a fee related to the lease restructuring in the amount of $34 million, which was paid over a two-year period beginning September 30, 2014. The elimination of the recorded lease values upon termination of the aforementioned leases approximated the $34 million liability to HCP. Amendments to Existing Agreements (including Triple Net Leases). In connection with the transactions contemplated by the Master Agreement, at the Closing, (i) the parties terminated the purchase option rights granted by HCP to Emeritus pursuant to 49 of the previously existing Emeritus leases, (ii) the parties agreed to modify the existing term extension hurdle and incentive management fee structure applicable to an existing venture between the Company and HCP in respect of 20 independent living, assisted living, memory care and/or skilled nursing care communities, and (iii) HCP released certain deposits and reserves posted by the Company and held by HCP or its affiliates in connection with existing leases between the parties. For accounting purposes, the amended leases were treated as new leases and classified as either capital or financing leases. The terminated purchase options were included in the determination of recorded capital or financing lease related balances. During the three months ended December 31, 2016, the Company and HCP entered into three amendments to the Master Lease effective November 1, 2016 to facilitate the HCP Termination Transactions and the HCP Sale Transaction. The amendments, among other things: (i) shortened the term of the Master Lease with respect to 19 communities to facilitate the HCP Termination Transactions, with the term with respect to each such community to end on the earlier of October 31, 2017 and the date on which such community is sold or the operations of such community are transferred, at the direction of HCP, to a third party tenant or operator; (ii) removed 57 communities from the Master Lease as of November 1, 2016, to facilitate the HCP Sale Transaction; and (iii) extended by one year the period during which the Company is permitted to undertake capital projects for which it is entitled to reimbursement by HCP. Simultaneously, the Company and HCP entered into a separate lease with HCP, with the Company as guarantor, covering the 57 communities removed from the Master Lease on terms that are substantially the same as those contained in the Master Lease. The Blackstone Venture is expected to acquire the 57 communities encumbered by such new lease, at which time the new lease will be terminated. Equity Offering In September 2014, the Company completed a public equity offering of 10,298,506 shares of common stock, which yielded net proceeds of approximately $330.4 million, net of approximately $0.4 million of costs related to the offering. During the three months ended December 31, 2014, the Company repaid $275.9 million of existing long-term debt with a weighted average interest rate of approximately 5.5%, financed primarily with the proceeds of the public equity offering, and the Company has used and is using net proceeds to finance the exercise of purchase options on certain communities currently leased by the Company and for other general corporate purposes, which may include additional debt repayments and the acceleration of capital investments in the Company's communities and corporate infrastructure platform. |
Investment in Unconsolidated Ve
Investment in Unconsolidated Ventures | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities and Investment in Unconsolidated Ventures [Abstract] | |
Variable Interest Entities and Investment in Unconsolidated Ventures | 5. Variable Interest Entities and Investment in Unconsolidated Ventures Variable Interest Entities At December 31, 2016, the Company has equity interests in unconsolidated VIEs. The Company has determined that it does not have the power to direct the activities of the VIEs that most significantly impact the VIEs' economic performance and is not the primary beneficiary of these VIEs in accordance with ASC 810. The Company's interests in the VIEs are, therefore, accounted for under the equity method of accounting. The Company holds a 51% equity interest in the CCRC Venture. The CCRC Venture's opco has been identified as a VIE. The equity members of the CCRC Venture's opco share certain operating rights, and the Company acts as manager to the CCRC Venture opco. However, the Company does not consolidate this VIE because it does not have the ability to control the activities that most significantly impact this VIE's economic performance. The assets of the CCRC Venture opco primarily consist of the CCRCs that it owns and leases, resident fees receivable, notes receivable and cash and cash equivalents. The obligations of the CCRC Venture opco primarily consist of community lease obligations, mortgage debt, accounts payable, accrued expenses and refundable entrance fees. See Note 4 for more information about the Company's entry into the CCRC Venture. The Company holds an equity ownership interest in each of the propco and opco of three ventures ("RIDEA Ventures") that operate senior housing communities in a RIDEA structure. As of December 31, 2016, the Company's equity ownership interest is 10% for two of the ventures and 20% for one venture. As of December 31, 2016, HCP owns the remaining 90% and 80% equity ownership interests in the RIDEA Ventures. The RIDEA Ventures have been identified as VIEs. The equity members of the RIDEA Ventures share certain operating rights, and the Company acts as a manager to the opcos of the RIDEA Ventures. However, the Company does not consolidate these VIEs because it does not have the ability to control the activities that most significantly impact the economic performance of these VIEs. The assets of the RIDEA Ventures primarily consist of the senior housing communities that the RIDEA Ventures own, resident fees receivable and cash and cash equivalents. The obligations of the RIDEA Ventures primarily consist of notes payable, accounts payable and accrued expenses. The carrying value and classification of the related assets, liabilities and maximum exposure to loss as a result of the Company's involvement with these VIEs are summarized below at December 31, 2016 (in millions): VIE Asset Maximum Exposure to Loss Carrying Amount CCRC Venture opco Investment in unconsolidated ventures $ 50.1 $ 50.1 RIDEA Ventures Investment in unconsolidated ventures $ 92.1 $ 92.1 As of December 31, 2016, the Company is not required to provide financial support, through a liquidity arrangement or otherwise, to its unconsolidated VIEs. Investment in Unconsolidated Ventures The Company owns interests in the following ventures that are accounted for under the equity method as of December 31, 2016: Venture Ownership Percentage CCRC Venture 51% HCP 49 Venture 20% BKD-HCN venture opco and propco 20% HCP 35 Venture 10% S-H Twenty-One venture opco and propco 10% Combined summarized financial information of the unconsolidated ventures accounted for under the equity method as of December 31, and for the years then ended are as follows (dollars in millions): Statement of Operations Information 2016 2015 2014 Total revenue $ 1,133 $ 964 $ 439 Facility operating expenses (779 ) (679 ) (293 ) Net income (loss) (4 ) (18 ) (10 ) Balance Sheet Information 2016 2015 Current assets $ 128 $ 143 Noncurrent assets 3,932 4,156 Current liabilities 1,153 583 Noncurrent liabilities 2,215 2,294 During the year ended December 31, 2016, the CCRC Venture obtained non-recourse mortgage financing on certain communities and received proceeds of $434.5 million. The CCRC Venture distributed the net proceeds to its investors and the Company received proceeds of $221.6 million. As a result of the distribution, the Company's carrying value of its equity method investment in the CCRC Venture propco was reduced below zero and the Company has recorded a $60.2 million equity method liability within other liabilities within the consolidated balance sheet as of December 31, 2016. In January 2017, the Company completed the sale of a 10% ownership interest in the HCP 49 Venture for $26.8 million of net cash proceeds. The Company retained a 10% ownership interest in the HCP 49 Venture. The Company evaluates realization of its investment in ventures accounted for using the equity method if circumstances indicate that the Company's investment is other than temporarily impaired. During 2016, the Company recorded $36.8 million of non-cash impairment charges related to investments in unconsolidated ventures. These impairment charges are primarily due to lower than expected operating performance at the communities owned by the unconsolidated ventures and reflect the amount by which the carrying values of the investments exceeded their estimated fair value. On June 30, 2015, the Company and HCP entered into a venture, which acquired 35 senior housing communities ("HCP 35 Venture") for $847 million. The venture uses a RIDEA structure, whereby the Company and HCP invested in an "opco" and a "propco". The Company contributed $30.3 million in cash to the HCP 35 Venture. The Company owns a 10% ownership interest, and HCP owns a 90% ownership interest, in each of the propco and opco. The Company had operated these communities under a management agreement since 2011 and continued to manage the communities under a market rate long-term management agreement with the venture as of the closing of the venture. The Company's interest in the venture is accounted for under the equity method of accounting. |
Property, Plant and Equipment a
Property, Plant and Equipment and Leasehold Intangibles, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment and Leasehold Intangibles, Net [Abstract] | |
Property, Plant and Equipment and Leasehold Intangibles, Net | 6. Property, Plant and Equipment and Leasehold Intangibles, Net As of December 31, 2016 and 2015, net property, plant and equipment and leasehold intangibles, which include assets under capital and financing leases, consisted of the following (in thousands): 2016 2015 Land $ 455,307 $ 486,567 Buildings and improvements 5,053,204 5,260,826 Leasehold improvements 126,325 100,430 Furniture and equipment 974,516 895,447 Resident and leasehold operating intangibles 705,000 783,434 Construction in progress 69,803 138,054 Assets under capital and financing leases 2,879,996 2,909,653 10,264,151 10,574,411 Accumulated depreciation and amortization (2,884,846 ) (2,543,035 ) Property, plant and equipment and leasehold intangibles, net $ 7,379,305 $ 8,031,376 During the years ended December 31, 2016, 2015 and 2014, the Company evaluated property, plant and equipment and leasehold intangibles for impairment and identified properties with a carrying amount of the assets in excess of the estimated future undiscounted net cash flows expected to be generated by the assets. The Company compared the estimated fair value of the assets to their carrying value for these identified properties and recorded an impairment charge for the excess of carrying value over fair value. The Company recorded property, plant and equipment and leasehold intangibles non-cash impairment charges in its operating results of $166.2 million for the year ended December 31, 2016, primarily within the million for the year ended December 31, 2015, primarily within the Assisted Living and CCRCs - Rental segments and $10.0 million for the year ended December 31, 2014, primarily within the CCRCs – Rental and Assisted Living segments. These impairment charges are primarily due to lower than expected operating performance at these properties and reflect the amount by which the carrying values of the assets exceeded their estimated fair value. During the years ended December 31, 2016 and 2015, the Company recorded $15.8 million and $33.6 million, respectively, of non-cash impairment charges related to communities identified as held for sale, inclusive of the allocation of goodwill to the disposed communities. These impairment charges are primarily due to the excess of carrying value, including allocated goodwill, over the estimated selling price less costs to dispose. Refer to Note 4 for more information about the Company's community dispositions and assets held for sale. For the years ended December 31, 2016, 2015 and 2014, the Company recognized depreciation and amortization expense on its property, plant and equipment and leasehold intangibles of $514.2 million, $721.0 million and $529.1 million, respectively. Future amortization expense for resident and leasehold operating intangibles is estimated to be as follows (dollars in thousands): Year Ending December 31, Future Amortization 2017 $ 9,664 2018 7,601 2019 6,209 2020 4,353 2021 2,731 Thereafter 9,958 Total $ 40,516 In connection with the acquisition of Emeritus, the Company recorded intangible assets for resident-in-place leases and below market operating lease intangibles. The Company is amortizing the resident-in-place leases and below market operating lease intangibles over their estimated weighted average useful lives of one and nine years, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Goodwill and Other Intangible Assets, Net | 7. Goodwill and Other Intangible Assets, Net The following is a summary of the carrying amount of goodwill as of December 31, 2016 and December 31, 2015 presented on an operating segment basis (dollars in thousands): December 31, 2016 December 31, 2015 Gross Carrying Amount Dispositions and Other Reductions Net Gross Carrying Amount Dispositions and Other Reductions Net Retirement Centers $ 28,141 $ (820 ) $ 27,321 $ 28,141 $ (721 ) $ 27,420 Assisted Living 600,162 (48,817 ) 551,345 591,814 (20,348 ) 571,466 Brookdale Ancillary Services 126,810 — 126,810 126,810 — 126,810 Total $ 755,113 $ (49,637 ) $ 705,476 $ 746,765 $ (21,069 ) $ 725,696 The Company concluded that goodwill for all reporting units was not impaired as of October 1, 2016 (the Company's annual measurement date) and as of December 31, 2016. Factors the Company considers important in its analysis, which could trigger an impairment of such assets, include significant underperformance relative to historical or projected future operating results, significant negative industry or economic trends, a significant decline in the Company's stock price for a sustained period and a decline in its market capitalization below net book value. A change in anticipated operating results or the other metrics indicated above could necessitate further analysis of potential impairment at an interval prior to the Company's annual measurement date. Approximately $28.5 million and $0.1 million of goodwill in the Assisted Living and Retirement Centers segments, respectively, was allocated to the communities identified as held for sale during 2016. Refer to Note 4 for more information about the Company's assets held for sale. The following is a summary of other intangible assets at December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Community purchase options $ 4,738 $ — $ 4,738 $ 40,270 $ — $ 40,270 Health care licenses 65,126 — 65,126 66,612 — 66,612 Trade names 27,800 (21,135 ) 6,665 27,800 (14,209 ) 13,591 Other 13,531 (7,053 ) 6,478 13,531 (4,818 ) 8,713 Total $ 111,195 $ (28,188 ) $ 83,007 $ 148,213 $ (19,027 ) $ 129,186 Amortization expense related to definite-lived intangible assets for the years ended December 31, 2016, 2015 and 2014 was $9.2 million, $12.2 million and $8.0 million, respectively. Health care licenses were determined to be indefinite-lived intangible assets and are not subject to amortization. The community purchase options are not currently amortized, but will be added to the cost basis of the related communities if the option is exercised, and will then be depreciated over the estimated useful life of the community. During the year ended December 31, 2016, the Company exercised one community purchase option and added the $7.3 million carrying value of the community purchase option intangible to the cost basis of the property, plant and equipment of the community. The Company is amortizing the trade names and management contract intangibles assets over their estimated weighted average useful lives of three years and nine years, respectively. During 2016, the Company recorded $28.2 million and $1.5 million of non-cash impairment charges related to community purchase options and health care licenses, respectively. These impairment charges are primarily due to lower than expected operating performance at the communities subject to the community purchase options and reflect the amount by which the carrying values of the community purchase options exceeded their estimated fair value. Future amortization expense for intangible assets with definite lives is estimated to be as follows (dollars in thousands): Year Ending December 31, Future Amortization 2017 $ 3,575 2018 3,565 2019 2,487 2020 982 2021 982 Thereafter 1,552 Total $ 13,143 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Debt | 8. Debt Long-term Debt and Capital and Financing Lease Obligations Long-term debt and capital and financing lease obligations consist of the following (dollars in thousands): December 31, 2016 2015 Mortgage notes payable due 2017 through 2047; weighted average interest rate of 4.50% in 2016, including net debt premium and deferred financing costs of $(4.5) million in 2016 and including net debt premium and deferred financing costs of $3.3 million in 2015 (weighted average interest rate of 4.51% in 2015) $ 3,184,229 $ 3,246,513 Capital and financing lease obligations payable through 2032; weighted average interest rate of 8.08% in 2016 (weighted average interest rate of 8.11% in 2015) 2,485,520 2,489,588 Convertible notes payable in aggregate principal amount of $316.3 million, less debt discount and deferred financing costs of $20.9 million and $34.3 million in 2016 and 2015, respectively, interest at 2.75% per annum, due June 15, 2018 295,397 281,902 Construction financing due 2032; weighted average interest rate of 8.00% in 2016 (weighted average interest rate of 4.84% in 2015) 3,644 24,105 Other notes payable, weighted average interest rate of 5.33% in 2016 (weighted average interest rate of 5.16% in 2015) and maturity dates ranging from 2017 to 2020 76,377 80,305 Total long-term debt and capital and financing lease obligations 6,045,167 6,122,413 Less current portion 215,255 235,604 Total long-term debt and capital and financing lease obligations, less current portion $ 5,829,912 $ 5,886,809 As of December 31, 2016 and 2015, the current portion of long-term debt within the Company's consolidated financial statements includes $60.5 million and $60.8 million, respectively, of mortgage notes payable secured by assets held for sale. This debt will either be assumed by the prospective purchasers or be repaid with the proceeds from the sales. Refer to Note 4 for more information about the Company's assets held for sale. The annual aggregate scheduled maturities of long-term debt and capital and financing lease obligations outstanding as of December 31, 2016 are as follows (dollars in thousands): Year Ending December 31, Long-term Debt Capital and Financing Lease Obligations Total Debt 2017 $ 154,114 $ 416,239 $ 570,353 2018 1,231,670 277,829 1,509,499 2019 135,169 256,539 391,708 2020 473,817 200,308 674,125 2021 332,866 186,342 519,208 Thereafter 1,257,549 3,230,311 4,487,860 Total obligations 3,585,185 4,567,568 8,152,753 Less amount representing debt discount and deferred financing costs, net (25,538 ) — (25,538 ) Less amount representing interest (weighted average interest rate of 8.08%) — (2,082,048 ) (2,082,048 ) Total $ 3,559,647 $ 2,485,520 $ 6,045,167 Credit Facilities O n December 19, 2014, the Company Amounts drawn on the facility may be used to finance acquisitions, fund working capital and capital expenditures and for other general corporate purposes. The facility is secured by a first priority mortgage on certain of the Company's communities. In addition, the agreement permits the Company to pledge the equity interests in subsidiaries that own other communities (rather than mortgaging such communities), provided that loan availability from pledged assets cannot exceed 10% of loan availability from mortgaged assets. The availability under the line will vary from time to time as it is based on borrowing base calculations related to the appraised value and performance of the communities securing the facility. The agreement contains typical affirmative and negative covenants, including financial covenants with respect to minimum consolidated fixed charge coverage and minimum consolidated tangible net worth. A violation of any of these covenants could result in a default under the credit agreement, which would result in termination of all commitments under the agreement and all amounts owing under the agreement becoming immediately due and payable and could trigger cross default provisions in our other outstanding debt and lease agreements. As of December 31, 2016, there was no outstanding balance under this credit facility and there were $32.4 million of letters of credit outstanding under this credit facility. In addition to the sublimit for letters of credit on this credit facility, the Company also had separate letter of credit facilities of up to $64.5 million in the aggregate as of December 31, 2016. Letters of credit totaling $64.4 million had been issued under these separate facilities as of that date. Convertible Debt Offering In June 2011, the Company completed a registered offering of $316.3 million aggregate principal amount of 2.75% convertible senior notes due June 15, 2018 (the "Notes"). The Company received net proceeds of approximately $308.2 million after the deduction of underwriting commissions and offering expenses. The Company used a portion of the net proceeds to pay the Company's cost of the convertible note hedge transactions described below, taking into account the proceeds to the Company of the warrant transactions described below, and used the balance of the net proceeds to repay existing outstanding debt. The Notes are senior unsecured obligations and rank equally in right of payment to all of the Company's other senior unsecured debt, if any. The Notes will be senior in right of payment to any of the Company's debt which is subordinated by its terms to the Notes (if any). The Notes are also structurally subordinated to all debt and other liabilities and commitments (including trade payables) of the Company's subsidiaries. The Notes are also effectively subordinated to the Company's secured debt to the extent of the assets securing the debt. The Notes bear interest at 2.75% per annum, payable semi-annually in cash. The Notes are convertible at an initial conversion rate of 34.1006 shares of Company common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $29.325 per share), subject to adjustment. On and after March 15, 2018, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time. In addition, Holders may convert their Notes at their option under the following circumstances: (i) during any fiscal quarter if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on the last day of such preceding fiscal quarter; (ii) during the five business day period after any five consecutive trading day period (the "measurement period"), in which the trading price per $1,000 principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the applicable conversion rate on each such day; or (iii) upon the occurrence of specified corporate event s. As of December 31, 2016, the Notes are not convertible. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock at the Company's election. It is the Company's current intent and policy to settle the principal amount of the Notes (or, if less, the amount of the conversion obligation) in cash upon conversion. In addition, following certain corporate transactions, the Company will increase the conversion rate for a holder who elects to convert in connection with such transaction by a number of additional shares of common stock as set forth in the supplemental indenture governing the Notes. The Notes were issued in an offering registered under the Securities Act of 1933, as amended (Securities Act). In accordance with FASB guidance regarding the accounting for convertible debt instruments that may be settled in cash upon conversion (including partial settlement), the liability and equity components of the convertible debt are separated in a manner that will reflect the Company's non-convertible debt borrowing rate when interest expense is recognized in subsequent periods. The Company is accreting the carrying value to the principal amount at maturity using an imputed interest rate of 7.5% (the estimated effective borrowing rate for nonconvertible debt at the time of issuance, Level 2) over its expected life of seven years. As of December 31, 2016, the "if converted" value of the Notes does not exceed their principal amount. The interest expense associated with the Notes (excluding amortization of the associated deferred financing costs) was as follows (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Coupon interest $ 8,697 $ 8,697 $ 8,697 Amortization of discount 12,625 11,732 10,902 Interest expense related to convertible notes $ 21,322 $ 20,429 $ 19,599 In connection with the offering of the Notes, in June 2011, the Company entered into convertible note hedge transactions (the "Convertible Note Hedges") with certain financial institutions (the "Hedge Counterparties"). The Convertible Note Hedges cover, subject to customary anti-dilution adjustments, 10,784,315 shares of common stock. The Company also entered into warrant transactions with the Hedge Counterparties whereby the Company sold to the Hedge Counterparties warrants to acquire, subject to customary anti-dilution adjustments, up to 10,784,315 shares of common stock (the "Sold Warrant Transactions"). The warrants have a strike price of $40.25 per share, subject to customary anti-dilution adjustments. The Convertible Note Hedges are expected to reduce the potential dilution with respect to common stock upon conversion of the Notes in the event that the price per share of common stock at the time of exercise is greater than the strike price of the Convertible Note Hedges, which corresponds to the initial conversion price of the Notes and is similarly subject to customary anti-dilution adjustments. If, however, the price per share of common stock exceeds the strike price of the Sold Warrant Transactions when they expire, there would be additional dilution from the issuance of common stock pursuant to the warrants. The Convertible Note Hedges and Sold Warrant Transactions are separate transactions (in each case entered into by the Company and Hedge Counterparties), are not part of the terms of the Notes and will not affect the holders' rights under the Notes. Holders of the Notes do not have any rights with respect to the Convertible Note Hedges or the Sold Warrant Transactions. These hedging transactions had a net cost of approximately $31.9 million, which was paid from the proceeds of the Notes and recorded as a reduction of additional paid-in capital. The Company has contractual rights, and, at execution of the related agreements, had the ability to settle its obligations under the conversion features of the Notes, the Convertible Note Hedges and Sold Warrant Transactions, with the Company's common stock. Accordingly, these transactions are accounted for as equity, with no subsequent adjustment for changes in the value of these obligations. 2016 Financings In March 2016, the Company obtained a $100.0 million supplemental loan, secured by first mortgages on ten communities. The loan bears interest at a fixed rate of 4.20% and matures on January 1, 2023. Proceeds from the loan were utilized to pay down a portion of the outstanding balance of the secured credit facility. In December 2016, the Company entered into a $105.0 million note, which bears interest at a fixed rate of 4.65%, and a $69.6 million note, which bears interest at a variable rate of 1-month LIBOR plus a margin of 258 basis points. The notes are secured by first mortgages on six communities and mature on January 1, 2027. Proceeds from the loan were primarily utilized to repay $164.4 million of mortgage debt. During the year ended December 31, 2016, the Company recorded $9.2 million of debt modification and extinguishment costs on the consolidated statement of operations for that period, primarily related to prepayment penalties for debt extinguishments. As of December 31, 2016, the Company is in compliance with the financial covenants of its outstanding debt and lease agreements. 2015 Financings On March 31, 2015, the Company obtained a $63.0 million loan, secured by first mortgages on six communities. The loan bears interest at a variable rate equal to 90-day LIBOR plus a margin of 325 basis points and matures on April 1, 2020. On April 30, 2015, the Company obtained a $65.3 million loan, secured by first mortgages on six communities. The loan bears interest at a fixed rate of 3.98% and matures on May 1, 2027. On August 27, 2015, the Company obtained $226.4 million in loans secured by first mortgages on 21 communities. The mortgage facility has a ten year term and 75% of it bears interest at a variable rate of 30-day LIBOR plus a margin of 221 basis points and the remaining 25% bears interest at a fixed rate of 4.80%. Proceeds of the loans were used to refinance $209.9 million of fixed rate mortgage debt on 28 communities that was scheduled to mature in September 2017. In connection with the transaction, the Company paid a prepayment penalty of $17.9 million, of which $10.4 million was recorded against the existing debt premium, $6.3 million was recorded as a debt discount for the new loans, and $1.2 million was recorded as an extinguishment cost for the seven communities that became unencumbered. On September 15, 2015, the Company obtained $140.4 million in loans secured by first mortgages on 18 communities. The mortgage facility has a seven year term and bears interest at a variable rate of one-month LIBOR plus a margin of 223 basis points. Proceeds of the loans were used to refinance $122.3 million of fixed rate mortgage debt that was scheduled to mature in May 2018. In connection with the transaction, the Company paid a prepayment penalty of $13.6 million, of which $7.6 million was recorded against the existing debt premium and $6.0 million was recorded as a debt discount for the new loans. The financings that occurred during the three months ended September 30, 2015 were accounted for as debt modifications and $5.5 million of debt modification costs were recorded on the consolidated statement of operations for that period. Interest Rate Caps In the normal course of business, the Company has entered into certain interest rate protection agreements to effectively manage the risk above certain interest rates for a portion of the Company's variable rate debt. The following table summarizes the Company's interest rate cap instruments at December 31, 2016 (dollars in thousands): Current notional balance $ 806,994 Weighted average fixed cap rate 4.66 % Earliest maturity date 2017 Latest maturity date 2022 Estimated asset fair value (included in other assets, net at December 31, 2016) $ 127 Estimated asset fair value (included in other assets, net at December 31, 2015) $ 29 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 9. Accrued Expenses Accrued expenses consist of the following components as of December 31, (in thousands): 2016 2015 Salaries and wages $ 102,025 $ 80,291 Insurance reserves 71,123 94,948 Vacation 42,411 44,421 Real estate taxes 34,002 37,206 Interest 12,948 12,940 Lease payable 11,211 20,714 Accrued utilities 10,582 11,949 Taxes payable 2,818 3,265 Other 40,917 67,140 Total $ 328,037 $ 372,874 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Facility Operating Leases As of December 31, 2016 the Company operated 539 communities under long-term leases (315 operating leases and 224 capital and financing leases). The substantial majority of the Company's lease arrangements are structured as master leases. Under a master lease, numerous communities are leased through an indivisible lease. The Company typically guarantees its performance and the lease payments under the master lease. The community leases contain customary terms, which may include assignment and change of control restrictions, maintenance and capital expenditure obligations, termination provisions and financial performance covenants, such as net worth and minimum lease coverage ratios. Failure to comply with these covenants could result in an event of default and/or trigger cross-default provisions in the Company's outstanding debt and other lease documents. Further, an event of default related to an individual property or limited number of properties within a master lease portfolio would result in a default on the entire master lease portfolio and could trigger cross-default provisions in the Company's other outstanding debt and lease documents. Certain leases contain cure provisions generally requiring the posting of an additional lease security deposit if the required covenant is not met. The leases relating to these communities are generally fixed rate leases with annual escalators that are either fixed or tied to changes in leased property revenue or the consumer price index. The Company is responsible for all operating costs, including repairs, property taxes and insurance. The initial lease terms primarily vary from 10 to 20 years and generally include renewal options ranging from 5 to 30 years. The remaining base lease terms vary from less than one year to 16 years and generally provide for renewal or extension options and in some instances, purchase options. A summary of facility lease expense and the impact of straight-line adjustment and amortization of (above) below market rents and deferred gains are as follows (in thousands): For the Years Ended December 31, 2016 2015 2014 Cash basis payment $ 384,104 $ 372,148 $ 330,207 Straight-line (income) expense 767 6,956 1,439 Amortization of (above) below market rents, net (6,864 ) (7,158 ) (3,444 ) Amortization of deferred gain (4,372 ) (4,372 ) (4,372 ) Facility lease expense $ 373,635 $ 367,574 $ 323,830 The aggregate amounts of future minimum operating lease payments, including community and office leases, as of December 31, 2016 (prior to giving effect to the transactions with HCP and Blackstone pending as of December 31, 2016), are as follows (dollars in thousands): Year Ending December 31, Operating Leases 2017 $ 387,521 2018 377,521 2019 359,282 2020 317,654 2021 279,040 Thereafter 1,222,392 Total $ 2,943,410 As of December 31, 2016, the Company is in compliance with the financial covenants of its long-term leases. Other The Company has employment or letter agreements with certain officers of the Company and has adopted policies to which certain officers of the Company are eligible to participate that grant these employees the right to receive a portion or multiple of their base salary, pro-rata bonus, bonus and/or continuation of certain benefits, for a defined period of time, in the event of certain terminations of the officers' employment, as described in those agreements and policies. |
Self-Insurance
Self-Insurance | 12 Months Ended |
Dec. 31, 2016 | |
Self-Insurance [Abstract] | |
Self-Insurance | 11. Self-Insurance The Company obtains various insurance coverages from commercial carriers at stated amounts as defined in the applicable policy. Losses related to deductible amounts are accrued based on the Company's estimate of expected losses plus incurred but not reported claims. As of December 31, 2016 and 2015, the Company accrued reserves of $184.0 million and $248.4 million, respectively, for these programs of which $112.9 million and $153.5 million is classified as long-term liabilities as of December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, the Company accrued $22.8 million and $41.5 million, respectively, of estimated amounts receivable from the insurance companies under these insurance programs. During 2016, the Company recorded a $35.4 million decrease in insurance expense from changes in estimates, due to general liability and professional liability and workers compensation claims experience. The Company has secured self-insured retention risk under workers' compensation programs with cash deposits of $12.4 million and $15.6 million as of December 31, 2016 and 2015, respectively. Letters of credit securing the programs aggregated $59.5 million and $49.8 million as of December 31, 2016 and 2015, respectively. In addition, the Company also had deposits of $37.4 million as of December 31, 2016 to fund claims paid under a high deductible, collateralized insurance policy previously maintained by Emeritus. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Retirement Plans [Abstract] | |
Retirement Plans | 12. Retirement Plans The Company maintains a 401(k) Retirement Savings Plan for all employees that meet minimum employment criteria. The plan provides that the participants may defer eligible compensation on a pre-tax basis subject to certain Internal Revenue Code maximum amounts. The Company makes matching contributions in amounts equal to 25.0% of the employee's contribution to the plan, up to a maximum of 4.0% of contributed compensation. An additional matching contribution of 12.5%, subject to the same limit on contributed compensation, may be made at the discretion of the Company, based upon the Company's performance. For the years ended December 31, 2016, 2015 and 2014, the Company's expense to the plan was $8.2 million, $6.6 million and $7.1 million, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation The following table sets forth information about the Company's restricted stock awards (excluding restricted stock units) (share amounts in thousands): Number of Shares Weighted Average Grant Date Fair Value Outstanding on January 1, 2014 3,373 $ 21.12 Granted 1,662 $ 29.79 Vested (1,185 ) $ 19.58 Cancelled/forfeited (298 ) $ 21.02 Outstanding on December 31, 2014 3,552 $ 25.70 Granted 1,698 $ 32.75 Vested (1,275 ) $ 23.55 Cancelled/forfeited (521 ) $ 18.68 Outstanding on December 31, 2015 3,454 $ 28.80 Granted 3,141 $ 14.56 Vested (1,242 ) $ 26.79 Cancelled/forfeited (745 ) $ 24.75 Outstanding on December 31, 2016 4,608 $ 20.29 As of December 31, 2016, there was $58.2 million of total unrecognized compensation cost related to outstanding, unvested share-based compensation awards. That cost is expected to be recognized over a weighted-average period of 2.5 years and is based on grant date fair value, net of forfeiture estimates. The compensation cost reflects an initial estimated cumulative forfeiture rate from 0% to 20% over the requisite service period of the awards. That estimate is revised if subsequent information indicates that the actual number of awards expected to vest is likely to differ from previous estimates. During 2016, grants of restricted shares under the Company's 2014 Omnibus Incentive Plan were as follows (amounts in thousands except for value per share): Shares Granted Value Per Share Total Value Three months ended March 31, 2016 2,855 $ 14.50 - 18.46 $ 41,399 Three months ended June 30, 2016 111 $ 15.68 - 18.03 $ 2,001 Three months ended September 30, 2016 54 $ 15.90 - 17.46 $ 918 Three months ended December 31, 2016 121 $ 9.75 - 11.93 $ 1,405 The Company has an employee stock purchase plan for all eligible employees. Under the plan, eligible employees of the Company can purchase shares of the Company's common stock on a quarterly basis at a discounted price through accumulated payroll deductions. Each eligible employee may elect to deduct up to 15% of his or her base pay each quarter. Subject to certain limitations specified in the plan, on the last trading date of each calendar quarter, the amount deducted from each participant's pay over the course of the quarter will be used to purchase whole shares of the Company's common stock at a purchase price equal to 90% of the closing market price on the New York Stock Exchange on that date. The Company reserved 1,800,000 shares of common stock for issuance under the plan. The impact on the Company's consolidated financial statements is not material. |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2016 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 14. Share Repurchase Program On November 1, 2016, the Company announced that its Board of Directors had approved a share repurchase program that authorizes the Company to purchase up to $100.0 million in the aggregate of the Company's common stock, which replaced the prior authorization approved by the Board in 2011 that had remaining availability of approximately $82.4 million at the time of termination. Purchases may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or block trades, or by any combination of these methods, in accordance with applicable insider trading and other securities laws and regulations. The size, scope and timing of any purchases will be based on business, market and other conditions and factors, including price, regulatory and contractual requirements or consents, and capital availability. The repurchase program does not obligate the Company to acquire any particular amount of common stock and the program may be suspended, modified or discontinued at any time at the Company's discretion without prior notice. Shares of stock repurchased under the program will be held as treasury shares. Pursuant to the new authorization, in 2016 the Company repurchased 750,000 shares at a weighted average price paid per share of $12.83, for an aggregate purchase price of approximately $9.6 million. As of December 31, 2016, approximately $90.4 million remains available under the new share repurchase authorization. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 15. Income Taxes The benefit (provision) for income taxes is comprised of the following (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Federal: Current $ (12 ) $ 49 $ 1,367 Deferred (3,248 ) 95,259 182,371 Total Federal (3,260 ) 95,308 183,738 State: Current (2,118 ) (3,099 ) (2,433 ) Deferred (included in Federal above) — — — Total State (2,118 ) (3,099 ) (2,433 ) Total $ (5,378 ) $ 92,209 $ 181,305 A reconciliation of the benefit (provision) for income taxes to the amount computed at the U.S. Federal statutory rate of 35% is as follows (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Tax benefit at U.S. statutory rate $ 139,657 $ 192,390 $ 115,603 State taxes, net of federal income tax 11,788 18,323 11,582 Tax credits 6,163 3,937 (2,222 ) Valuation allowance (142,862 ) (111,797 ) 64,155 Goodwill impairment (10,789 ) (7,856 ) — Stock compensation (5,716 ) — — Other, net (1,831 ) (1,626 ) (713 ) Return to provision (920 ) (72 ) 716 Meals and entertainment (868 ) (1,090 ) (946 ) Non-deductible transaction costs — — (6,870 ) Total $ (5,378 ) $ 92,209 $ 181,305 Significant components of the Company's deferred tax assets and liabilities at December 31 are as follows (dollars in thousands): 2016 2015 Deferred income tax assets: Capital and financing lease obligations $ 862,038 $ 872,002 Operating loss carryforwards 319,948 282,075 Accrued expenses 109,283 144,691 Deferred lease liability 93,358 94,105 Tax credits 49,550 40,974 Intangible assets 20,272 22,522 Deferred gain on sale leaseback 4,233 5,661 Prepaid revenue 2,626 2,415 Total gross deferred income tax asset 1,461,308 1,464,445 Valuation allowance (264,305 ) (121,602 ) Net deferred income tax assets 1,197,003 1,342,843 Deferred income tax liabilities: Property, plant and equipment (1,209,595 ) (1,320,423 ) Investment in unconsolidated ventures (66,678 ) (88,798 ) Other (1,376 ) (2,673 ) Total gross deferred income tax liability (1,277,649 ) (1,411,894 ) Net deferred tax liability $ (80,646 ) $ (69,051 ) As of December 31, 2016 and 2015, the Company had federal net operating loss carryforwards of approximately $1.033 billion and $930.4 million, respectively, which are available to offset future taxable income through 2036. The Company determined that a valuation allowance was required due to the loss before income taxes in 2016, and in consideration of the Company's estimated future reversal of existing timing differences as of December 31, 2016. In 2016, the Company recorded a provision of approximately $142.9 million to reflect the necessary valuation allowance of $264.3 million as of December 31, 2016. The valuation allowance reflects that the Company's net operating losses will begin to expire in 2027. As described in Note 4 to the consolidated financial statements, it is expected that the transactions related to the Blackstone Venture may require the Company to record a significant increase to the Company's existing valuation allowance. During 2015, the Company determined that a valuation allowance was required due to the loss before income taxes in 2015, combined with the Company's estimated reversal of future timing differences as of December 31, 2015. As a result, the Company has a valuation allowance of $121.6 million as of December 31, 2015. The valuation allowance reflects that our net operating losses will begin to expire in 2027, however, the Company would anticipate using tax planning strategies available to it in order to avoid a true expiration of those losses, should that issue arise. If the Company continues its trend of increasing losses before income taxes, the valuation allowance may be increased in future periods. As a result of the acquisition of Emeritus on July 31, 2014, the Company recorded deferred tax liabilities in excess of deferred tax assets that reflect the difference between the fair market value of the acquired assets over the historical basis of the acquired assets. During the year ended December 31, 2014, the Company determined that it was more likely than not that its federal net operating loss carryforwards and a majority of its state net operating loss carryforwards, and the majority of its tax credits will be utilized in the future, based on the future reversal of these deferred tax liabilities. As a result, during the year ended December 31, 2014 the Company recorded an aggregate deferred federal, state and local income tax benefit of $64.2 million from the release of the valuation allowance against certain deferred tax assets. Additionally, the Company recorded an aggregate deferred federal, state and local tax benefit of $94.1 million as a result of the operating loss for the year ended December 31, 2014. The Company has recorded valuation allowances of $218.1 million and $89.5 million at December 31, 2016 and 2015, respectively, against its federal and state net operating losses, as the Company anticipates these losses will not be utilized prior to expiration. The Company also recorded a valuation allowance against federal and state credits of $46.2 million and $32.1 million as of December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, the Company had $126.7 million, included in its net operating loss carryforward relating to restricted stock grants. Under ASC 718-10, this loss will be recorded in additional paid-in capital in the period in which the loss is effectively used to reduce taxes payable. The formation of the Company, the reorganization of a predecessor company and the acquisitions of several wholly-owned subsidiaries constituted ownership changes under Section 382 of the Internal Revenue Code, as amended. As a result, the Company's ability to utilize the net operating loss carryforward to offset future taxable income is subject to certain limitations and restrictions. Furthermore, the Company had an ownership change under Section 382 in May 2010 which resulted in an additional annual limitation to the utilization of the net operating loss in the amount of $92.8 million. The acquisition of Emeritus on July 31, 2014 resulted in an ownership change for Emeritus resulting in an annual limitation of $53.9 million on net operating losses acquired by the Company from Emeritus. The Company expects the net operating losses of the Company from prior to May 2010 and of Emeritus to be fully released before expiration and therefore does not anticipate a financial statement impact as a result of the limitations. At December 31, 2016, the Company had gross tax affected unrecognized tax benefits of $29.1 million, which, if recognized, would result in an income tax benefit in accordance with ASC 805. Interest and penalties related to these tax positions are classified as tax expense in the Company's consolidated financial statements. Total interest and penalties reserved is $0.1 million at December 31, 2016. Tax returns for years 2012 through 2015 are subject to future examination by tax authorities. In addition, the net operating losses from prior years are subject to adjustment under examination. The Company does not expect that unrecognized tax benefits for tax positions taken with respect to 2016 and prior years will significantly change in 2017. A reconciliation of the unrecognized tax benefits for the years ended December 31, 2016 and 2015 is as follows (dollars in thousands): For the Years Ended December 31, 2016 2015 Balance at January 1, $ 30,236 $ 30,195 Additions for tax positions related to the current year — — Additions for tax positions related to prior years 30 50 Reductions for tax positions related to prior years (1,106 ) (9 ) Balance at December 31, $ 29,160 $ 30,236 On September 13, 2013, Treasury and the Internal Revenue Service issued final regulations regarding the deduction and capitalization of expenditures related to tangible property. The final regulations under Internal Revenue Code Sections 162, 167 and 263(a) apply to amounts paid to acquire, produce, or improve tangible property as well as dispositions of such property and are generally effective for tax years beginning on or after January 1, 2015. The Company has evaluated these regulations and determined they will not have a material impact on the Company's consolidated results of operations, cash flows or financial position. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |
Supplemental Disclosure of Cash Flow Information | 16. Supplemental Disclosure of Cash Flow Information (dollars in thousands) For the Years Ended December 31, Supplemental Disclosure of Cash Flow Information: 2016 2015 2014 Interest paid $ 349,535 $ 360,960 $ 226,594 Income taxes paid $ 2,047 $ 2,952 $ 2,746 Additions to property, plant and equipment and leasehold improvements Property, plant and equipment and leasehold intangibles, net $ 300,113 $ 448,682 $ 304,245 Accounts payable 33,534 (37,631 ) — Net cash paid $ 333,647 $ 411,051 $ 304,245 Acquisitions of assets, net of related payables and cash received, net: Cash and escrow deposits—restricted $ — $ — $ — Prepaid expenses and other assets, net — (53,405 ) (3,138 ) Property, plant and equipment and leasehold intangibles, net 19,457 198,558 80,330 Other intangible assets, net (7,300 ) (7,294 ) (23,978 ) Accrued expenses — — — Long-term debt — (101,558 ) 7,795 Capital and financing lease obligations — 155,230 — Other liabilities — (315 ) (20,568 ) Net cash paid $ 12,157 $ 191,216 $ 40,441 Proceeds from sale of assets, net: Assets held for sale $ (289,452 ) $ — $ — Prepaid expenses and other assets, net (4,543 ) 25,780 — Property, plant and equipment and leasehold intangibles, net — (82,953 ) — Capital and financing lease obligations — 8,907 — Other liabilities 3,281 (960 ) — Gain on sale of assets (7,218 ) — — Net cash received $ (297,932 ) $ (49,226 ) $ — Formation of CCRC Venture: Property, plant and equipment and leasehold intangibles, net $ — $ — $ (729,123 ) Investment in unconsolidated ventures — — 194,485 Other intangible assets, net — — (56,829 ) Other assets, net — — (9,137 ) Long-term debt — — 170,416 Capital and financing lease obligations — — 27,085 Refundable entrance fees and deferred revenue — — 413,761 Other liabilities — — 1,514 Net cash paid $ — $ — $ 12,172 Formation of HCP 49 Venture: Property, plant and equipment and leasehold intangibles, net $ — $ — $ (525,446 ) Investment in unconsolidated ventures — — 71,656 Long-term debt — — (67,640 ) Capital and financing lease obligations — — 538,355 Other liabilities — — (9,034 ) Net cash paid $ — $ — $ 7,891 Supplemental Schedule of Non-cash Operating, Investing and Financing Activities: Capital and financing leases: Property, plant and equipment and leasehold intangibles, net $ — $ 26,644 $ 27,100 Other intangible assets, net — (5,202 ) — Capital and financing lease obligations — (23,738 ) (27,100 ) Other liabilities — 2,296 — Net $ — $ — $ — Master Lease amendment: Property, plant and equipment and leasehold intangibles, net $ — $ — $ 385,696 Other intangible assets, net — — (174,012 ) Capital and financing lease obligations — — (217,022 ) Other liabilities — — 5,338 Net $ — $ — $ — Assets designated as held for sale: Property, plant and equipment and leasehold intangibles, net $ (262,711 ) $ (113,592 ) $ — Assets held for sale 278,675 110,620 — Prepaid expenses and other current assets (3,195 ) — — Goodwill (28,568 ) (12,200 ) — Asset impairment 15,799 15,172 — Net $ — $ — $ — Contribution to CCRC venture: Property, plant and equipment $ — $ (25,717 ) $ — Investment in unconsolidated ventures — 7,422 — Long-term debt — 18,295 — Net $ — $ — $ — |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2016 | |
Litigation [Abstract] | |
Litigation | 17. Litigation The Company has been and is currently involved in litigation and claims incidental to the conduct of its business which are comparable to other companies in the senior living industry. Certain claims and lawsuits allege large damage amounts and may require significant costs to defend and resolve. Similarly, the senior living industry is continuously subject to scrutiny by governmental regulators, which could result in litigation related to regulatory compliance matters. As a result, the Company maintains general liability and professional liability insurance policies in amounts and with coverage and deductibles the Company believes are adequate, based on the nature and risks of its business, historical experience and industry standards. The Company's current policies provide for deductibles for each claim. Accordingly, the Company is, in effect, self-insured for claims that are less than the deductible amounts. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | 18. Segment Information As of December, 31, 2016 the Company has five reportable segments: Retirement Centers; Assisted Living; CCRCs – Rental; Brookdale Ancillary Services; and Management Services. Operating segments are defined as components of an enterprise that engage in business activities from which it may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment. Prior to August 29, 2014, the Company had an additional reportable segment, CCRCs - Entry Fee. On August 29, 2014, the Company contributed all but two of the legacy Brookdale entry fee CCRCs to the CCRC Venture, at which time the contributed CCRCs were deconsolidated. The results of the entry fee CCRCs contributed to the CCRC Venture are reported in the CCRCs - Entry Fee segment for the time periods prior to being contributed to the CCRC Venture. The results of the two legacy Brookdale CCRCs that were not contributed to the CCRC Venture are included in the CCRCs - Entry Fee segment for the six month period ended June 30, 2014 and the CCRCs - Rental segment for periods subsequent to June 30, 2014, based on how operating results are being reviewed by the chief operating decision maker following the creation of the CCRC Venture. The CCRC Venture is accounted for under the equity method of accounting. See Note 4 for more information about the Company's entry into the CCRC Venture. Retirement Centers Assisted Living. CCRCs - Rental. CCRCs - Entry Fee Brookdale Ancillary Services Management Services. The accounting policies of the Company's reportable segments are the same as those described in the summary of significant accounting policies in Note 2. The following table sets forth selected segment financial and operating data (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Revenue: Retirement Centers (1) $ 679,503 $ 657,940 $ 582,312 Assisted Living (1) 2,419,459 2,445,457 1,685,563 CCRCs - Rental (1) 592,826 604,572 493,173 CCRCs - Entry Fee (1) — — 202,414 Brookdale Ancillary Services (1) 476,833 469,158 337,835 Management Services (2) 808,359 783,481 530,409 $ 4,976,980 $ 4,960,608 $ 3,831,706 Segment Operating Income (3) Retirement Centers $ 294,530 $ 285,257 $ 248,883 Assisted Living 876,817 877,303 608,489 CCRCs - Rental 133,409 150,495 121,661 CCRCs - Entry Fee — — 48,433 Brookdale Ancillary Services 64,463 75,210 63,463 Management Services 70,762 60,183 42,239 1,439,981 1,448,448 1,133,168 General and administrative (including non-cash stock-based compensation expense) 313,409 370,579 280,267 Transaction costs 3,990 8,252 66,949 Facility lease expense: Retirement Centers 120,272 114,738 98,321 Assisted Living 193,670 197,452 162,575 CCRCs - Rental 51,727 47,937 51,523 CCRCs - Entry Fee — — 4,362 Brookdale Ancillary Services — — 890 Corporate and Management Services 7,966 7,447 6,159 Depreciation and amortization: Retirement Centers 94,049 104,063 86,188 Assisted Living 308,639 489,933 317,918 CCRCs - Rental 66,431 87,754 60,175 CCRCs - Entry Fee — — 37,524 Brookdale Ancillary Services 4,075 7,451 4,764 Corporate and Management Services 47,208 43,964 30,466 Asset impairment 248,515 57,941 9,992 Loss on facility lease termination 11,113 76,143 — Income (loss) income from operations $ (31,083 ) $ (165,206 ) $ (84,905 ) Total interest expense: Retirement Centers $ 56,827 $ 58,397 $ 41,906 Assisted Living 249,449 250,116 140,001 CCRCs - Rental 39,824 39,502 28,418 CCRCs - Entry Fee — — 7,530 Brookdale Ancillary Services 1,461 1,354 823 Corporate and Management Services 38,056 39,395 29,510 $ 385,617 $ 388,764 $ 248,188 Total capital expenditures for property, plant and equipment, and leasehold intangibles: Retirement Centers $ 59,978 $ 161,986 $ 76,285 Assisted Living 156,732 220,893 107,037 CCRCs - Rental 37,800 54,864 42,412 CCRCs - Entry Fee — — 36,575 Brookdale Ancillary Services 1,576 4,061 1,805 Corporate and Management Services 44,027 6,878 40,131 $ 300,113 $ 448,682 $ 304,245 As of December 31, 2016 2015 Total assets: Retirement Centers $ 1,452,546 $ 1,556,169 Assisted Living 5,831,434 6,354,415 CCRCs - Rental 935,389 1,037,384 Brookdale Ancillary Services 280,530 292,540 Corporate and Management Services 717,788 808,056 $ 9,217,687 $ 10,048,564 (1) All revenue is earned from external third parties in the United States. (2) Management services segment revenue includes reimbursements for which the Company is the primary obligor of costs incurred on behalf of managed communities. (3) Segment operating income is defined as segment revenues less segment facility operating expenses (excluding depreciation and amortization). |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly Results of Operations (Unaudited) | 19. Quarterly Results of Operations (Unaudited) The following is a summary of quarterly results of operations for each of the fiscal quarters in 2016 and 2015 (in thousands, except per share amounts): For the Quarters Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Revenues $ 1,263,156 $ 1,258,830 $ 1,246,126 $ 1,208,868 Asset impairment 3,375 4,152 19,111 221,877 Income (loss) from operations 41,354 58,287 47,645 (178,369 ) Income (loss) before income taxes (47,152 ) (35,368 ) (47,569 ) (269,169 ) Net income (loss) (48,817 ) (35,491 ) (51,728 ) (268,600 ) Net income (loss) attributable to Brookdale Senior Living Inc. common stockholders (48,775 ) (35,450 ) (51,685 ) (268,487 ) Weighted average basic and diluted income (loss) per share $ (0.26 ) $ (0.19 ) $ (0.28 ) $ (1.45 ) For the Quarters Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Revenues $ 1,247,881 $ 1,238,184 $ 1,238,841 $ 1,235,702 Asset impairment — — — 57,941 Income (loss) from operations (116,873 ) (43,123 ) 3,663 (8,873 ) Income (loss) before income taxes (208,997 ) (137,400 ) (99,132 ) (104,835 ) Net income (loss) (130,709 ) (84,807 ) (68,336 ) (174,303 ) Net income (loss) attributable to Brookdale Senior Living Inc. common stockholders (130,451 ) (84,547 ) (68,220 ) (174,259 ) Weighted average basic and diluted income (loss) per share $ (0.71 ) $ (0.46 ) $ (0.37 ) $ (0.94 ) |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS December 31, 2016 (In thousands) Additions Description Balance at beginning of period Acquisition of Emeritus Charged to costs and expenses Charged to other accounts Deductions Balance at end of period Allowance for Doubtful Accounts: Year ended December 31, 2014 $ 17,728 $ 11,087 $ 20,509 $ 771 $ (23,594 ) $ 26,501 Year ended December 31, 2015 $ 26,501 $ — $ 25,132 $ 2,135 $ (27,298 ) $ 26,470 Year ended December 31, 2016 $ 26,470 $ — $ 30,632 $ 2,680 $ (32,738 ) $ 27,044 Deferred Tax Valuation Allowance: Year ended December 31, 2014 $ 72,366 $ 1,002 $ — $ — $ (64,155 ) (1) $ 9,213 Year ended December 31, 2015 $ 9,213 $ — $ 111,797 (2) $ 592 (2) $ — $ 121,602 Year ended December 31, 2016 $ 121,602 $ — $ 142,862 (3) $ — $ (159 ) (4) $ 264,305 (1) Adjustment to reverse valuation allowance for federal and state net operating losses of $(64,155). (2) Adjustment to valuation allowance for federal and state net operating losses and federal credits of $81,968 and $30,421, respectively. (3) Adjustment to valuation allowance for federal and state net operating losses and federal credits of $128,931 and $13,931, respectively. (4) Prior year adjustment related to state valuation allowance. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Brookdale and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Investments in affiliated companies that the Company does not control, but has the ability to exercise significant influence over governance and operation, are accounted for by the equity method. The ownership interest of consolidated entities not wholly-owned by the Company are presented as noncontrolling interests in the accompanying consolidated financial statements. Noncontrolling interest represents the share of consolidated entities owned by third parties. Noncontrolling interest is adjusted for the noncontrolling holder's share of additional contributions, distributions and the proportionate share of the net income or loss of each respective entity. The Company continually evaluates its potential variable interest entity ("VIE") relationships under certain criteria as provided for in Financial Accounting Standards Board ("FASB") ASC 810, Consolidation |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, revenue, goodwill and asset impairments, self-insurance reserves, performance-based compensation, the allowance for doubtful accounts, depreciation and amortization, income taxes and other contingencies. Although these estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from the original estimates. |
Revenue Recognition | Revenue Recognition Resident Fees Resident fee revenue is recorded when services are rendered and consists of fees for basic housing and support services and fees associated with additional services such as assisted living care, skilled nursing care, ancillary services and personalized health services. Residency agreements are generally for a term of 30 days to one year Certain of the Company's communities have residency agreements which require the resident to pay an upfront entrance fee prior to moving into the community. The non-refundable portion of the entrance fee is recorded as deferred revenue and amortized over the estimated stay of the resident based on an actuarial valuation. The refundable portion of a resident's entrance fee is generally refundable within a certain number of months or days following contract termination or upon the resale of the unit. The refundable portion of the fee is not amortized and is included in refundable entrance fees. All refundable amounts due to residents at any time in the future are classified as current liabilities. Management Fees Management fee revenue is recorded as services are provided to the owners of the communities. Management fees are determined by an agreed upon percentage of gross revenues (as defined). Reimbursed Costs Incurred on Behalf of Managed Communities The Company manages certain communities under contracts which provide for payment to the Company of a monthly management fee plus reimbursement of certain operating expenses. Where the Company is the primary obligor with respect to any such operating expenses, the Company recognizes revenue when the goods have been delivered or the service has been rendered and the Company is due reimbursement. Such revenue is included in "reimbursed costs incurred on behalf of managed communities" on the consolidated statements of operations. The related costs are included in "costs incurred on behalf of managed communities" on the consolidated statements of operations. |
Purchase Accounting | Purchase Accounting In determining the allocation of the purchase price of companies and communities to net tangible and identified intangible assets acquired and liabilities assumed, the Company makes estimates of fair value using information obtained as a result of pre-acquisition due diligence, marketing, leasing activities and/or independent appraisals. The Company assigned the purchase prices for companies or communities to assets acquired and liabilities assumed based on their determined fair values in accordance with the provisions of ASC 805, Business Combinations Working capital assets acquired and working capital liabilities assumed are valued on a carryover/cost basis which approximates fair value. Property, plant and equipment are valued utilizing either a discounted cash flow projection of future revenue and costs and capitalization and discount rates using current market conditions, or a direct capitalization method. The Company allocates the fair values of buildings acquired on an as-if-vacant basis and depreciates the building values over the estimated remaining lives of the buildings, not to exceed 40 years. The Company determines the allocated values of other fixed assets, such as site improvements and furniture, fixtures and equipment, based upon the replacement cost and depreciates such values over the assets' estimated remaining useful lives as determined at the applicable acquisition date. The Company determines the value of land either by considering the sales prices of similar properties in recent transactions or based on internal analysis of recently acquired and existing comparable properties within its portfolio. In connection with a business combination, the Company may assume rights and obligations under certain lease agreements pursuant to which the Company becomes the lessee of a given property. The Company assumes the lease classification previously determined by the prior lessee absent a modification in the assumed lease agreement. The Company assesses assumed operating leases, including ground leases, to determine whether the lease terms are favorable or unfavorable to the Company given current market conditions on the acquisition date. To the extent the lease terms are favorable or unfavorable relative to market conditions on the acquisition date, the Company recognizes an intangible asset or liability at fair value. The Company amortizes any acquired lease-related intangibles to facility lease expense over the remaining life of the associated lease plus any assumed bargain renewal periods. The fair value of acquired lease-related intangibles associated with the relationship with the Company's residents, if any, reflects the estimated value of in-place leases as represented by the cost to obtain residents and an estimated absorption period to reflect the value of the rent and recovery costs foregone during a reasonable lease-up period as if the acquired space was vacant. The Company amortizes any acquired in-place lease intangibles to depreciation and amortization expense over the average remaining length of stay of the residents, which is evaluated on an acquisition by acquisition basis but is generally estimated at 12 months. The Company estimates the fair value of purchase option intangible assets by discounting the difference between the applicable property's acquisition date fair value and the stated or anticipated future option price. The Company estimates the fair value of trade names using a royalty rate methodology and amortizes that value over the estimated useful life of the trade name. Management contracts and other acquired contracts are valued at a multiple of management fees and operating income or are valued utilizing discounted cash flow projections that assume certain future revenues and costs over the remaining contract term. The assets are then amortized over the estimated term of the agreement. The Company calculates the fair value of acquired long-term debt by discounting the remaining contractual cash flows of each instrument at the current market rate for those borrowings, which the Company approximates based on the rate at which the Company would expect to incur a replacement instrument on the date of acquisition, and recognizes any fair value adjustments related to long-term debt as effective yield adjustments over the remaining term of the instrument. Capital lease assets are valued by the Company as a right-to-use asset. Financing lease assets are valued as if the Company owns the assets and thus are recorded at fair value. Capital and financing lease obligations are valued based on the present value of the estimated lease payments applying a discount rate equal to the Company's estimated incremental borrowing rate at the date of acquisition. Additionally, the valuation of financing lease obligations reflects a residual value component. Preacquisition contingencies are valued when considered probable and reasonably estimable, and estimated legal fees are accrued for in accordance with the Company's existing policy. Self-insurance reserves including incurred but not reported liabilities are estimated by actuary analyses. A deferred tax asset or liability is recognized at statutory rates for the difference between the book and tax bases of the acquired assets and liabilities. The tax bases of assets and liabilities in the Emeritus transaction were carried over at historical values. The excess of the fair value of liabilities assumed and common stock issued and cash paid over the fair value of identifiable assets acquired is allocated to goodwill, which is not amortized by the Company. |
Deferred Costs | Deferred Financing Costs Third-party fees and costs incurred to obtain long-term debt are recorded as a direct adjustment to the carrying value of debt and amortized on a straight-line basis, which approximates the effective yield method, over the term of the related debt. Unamortized deferred financing fees are written-off if the associated debt is retired before the maturity date. Upon the refinancing of mortgage debt or amendment of the line of credit, unamortized deferred financing fees and additional financing costs incurred are accounted for in accordance with ASC 470-50, Debt Modifications and Extinguishments |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability approach which requires recognition of deferred tax assets and liabilities for the differences between the financial reporting and tax bases of assets and liabilities. A valuation allowance reduces deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has elected the "with-and-without approach" regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefits would be recognized in additional paid-in capital only if an incremental tax benefit is realized after considering all other tax benefits presently available. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Cash and cash equivalents and cash and escrow deposits – restricted are reflected in the accompanying consolidated balance sheets at amounts considered by management to reasonably approximate fair value due to the short maturity. The Company's derivative assets include interest rate caps that effectively manage the risk above certain interest rates for a portion of the Company's variable rate debt. The derivative positions are valued using models developed internally by the respective counterparty that use as their basis readily observable market parameters (such as forward yield curves) and are classified within Level 2 of the valuation hierarchy. The Company considers the credit risk of its counterparties when evaluating the fair value of its derivatives. The Company estimates the fair value of its debt using a discounted cash flow analysis based upon the Company's current borrowing rate for debt with similar maturities and collateral securing the indebtedness. The Company had outstanding debt (including the Company's secured credit facility but excluding capital and financing lease obligations) with a carrying value of approxim ately $3.6 billion and $3.9 billion |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company defines cash and cash equivalents as cash and investments with maturities of 90 days or less when purchased. |
Cash and Escrow Deposits - Restricted | Cash and Escrow Deposits – Restricted Cash and escrow deposits – restricted consist principally of deposits required by certain lenders and lessors pursuant to the applicable agreement and consist of the following (dollars in thousands): December 31, 2016 2015 Current: Real estate tax and property insurance escrows $ 19,671 $ 18,862 Replacement reserve escrows 6,970 8,011 Resident deposits 764 862 Other 5,459 4,835 Subtotal 32,864 32,570 Long term: Insurance deposits 12,941 15,318 CCRC escrows 13,301 13,233 Debt service reserve 1,819 3,429 Letter of credit collateral — 1,202 Other — 200 Subtotal 28,061 33,382 Total $ 60,925 $ 65,952 |
Accounts Receivable | Accounts Receivable, net Accounts receivable are reported net of an allowance for doubtful accounts, to represent the Company's estimate of the amount that ultimately will be realized in cash. The allowance for doubtful accounts was $27.0 million and $26.5 million as of December 31, 2016 and 2015, respectively. The adequacy of the Company's allowance for doubtful accounts is reviewed on an ongoing basis, using historical payment trends, write-off experience, analyses of receivable portfolios by payor source and aging of receivables, as well as a review of specific accounts, and adjustments are made to the allowance as necessary. Billings for services under third-party payor programs are recorded net of estimated retroactive adjustments, if any, under reimbursement programs. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods or as final settlements are determined. Contractual or cost related adjustments from Medicare or Medicaid are accrued when assessed (without regard to when the assessment is paid or withheld). Subsequent adjustments to these accrued amounts are recorded in net revenues when known. |
Assets Held for Sale Policy [Text Block] | Assets Held for Sale The Company designates communities as held for sale when it is probable that the properties will be sold within one year. The Company records these assets on the consolidated balance sheet at the lesser of the carrying value and fair value less estimated selling costs. If the carrying value is greater than the fair value less the estimated selling costs, the Company records an impairment charge. The Company allocates a portion of the goodwill of a reporting unit to the disposal if the disposal constitutes a business. The Company determines the fair value of the communities based primarily on purchase and sale agreements from prospective purchasers (Level 2 input). The Company evaluates the fair value of the assets held for sale each period to determine if it has changed. The long-lived assets are not depreciated while classified as held for sale. |
Property, Plant and Equipment and Leasehold Intangibles | Property, Plant and Equipment and Leasehold Intangibles Property, plant and equipment and leasehold intangibles, which include amounts recorded under capital and financing leases, are recorded at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Category Estimated Useful Life (in years) Buildings and improvements 40 Furniture and equipment 3 – 7 Resident lease intangibles 1 – 3 Expenditures for ordinary maintenance and repairs are expensed to operations as incurred. Renovations and improvements, which improve and/or extend the useful life of the asset, are capitalized and depreciated over their estimated useful life or if the renovations or improvements are made with respect to communities subject to an operating lease, over the shorter of the estimated useful life of the renovations or improvements, or the term of the operating lease. Assets under capital and financing leases and leasehold improvements are depreciated over the shorter of the estimated useful life of the assets or the term of the lease. Facility operating expense excludes depreciation and amortization directly attributable to the operation of the facility. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets held for use are assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset, calculated utilizing the lowest level of identifiable cash flows. If estimated future undiscounted net cash flows are less than the carrying amount of the asset then the fair value of the asset is estimated. The impairment expense is determined by comparing the estimated fair value of the asset to its carrying value, with any amount in excess of fair value recognized as an expense in the current period. Undiscounted cash flow projections and estimates of fair value amounts are based on a number of assumptions such as revenue and expense growth rates, estimated holding periods and estimated capitalization rates (Level 3). |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company follows ASC 350, Goodwill and Other Intangible Assets Acquired intangible assets are initially valued at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives and all intangible assets are reviewed for impairment if indicators of impairment arise. The evaluation of impairment for definite-lived intangibles is based upon a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset. If estimated future undiscounted net cash flows are less than the carrying amount of the asset, then the fair value of the asset is estimated. The impairment expense is determined by comparing the estimated fair value of the intangible asset to its carrying value, with any shortfall from fair value recognized as an expense in the current period. Indefinite-lived intangible assets are not amortized but are tested for impairment annually during the fourth quarter or more frequently as required. The impairment test consists of a comparison of the estimated fair value of the indefinite-lived intangible asset with its carrying value. If the carrying amount exceeds its fair value, an impairment loss is recognized for that difference. Amortization of the Company's definite-lived intangible assets is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Category Estimated Useful Life (in years) Trade names 2 – 5 Other 3 – 9 |
Stock-Based Compensation | Stock-Based Compensation The Company follows ASC 718, Compensation - Stock Compensation Certain of the Company's employee stock awards vest only upon the achievement of performance targets. ASC 718 requires recognition of compensation cost only when achievement of performance conditions is considered probable. Consequently, the Company's determination of the amount of stock compensation expense requires a significant level of judgment in estimating the probability of achievement of these performance targets. Additionally, the Company must make estimates regarding employee forfeitures in determining compensation expense. Subsequent changes in actual experience are monitored and estimates are updated as information is available. For all share-based awards with graded vesting other than awards with performance-based vesting conditions, the Company records compensation expense for the entire award on a straight-line basis (or, if applicable, on the accelerated method) over the requisite service period. For graded-vesting awards with performance-based vesting conditions, total compensation expense is recognized over the requisite service period for each separately vesting tranche of the award as if the award is, in substance, multiple awards once the performance target is deemed probable of achievement. Performance goals are evaluated quarterly. If such goals are not ultimately met or it is not probable the goals will be achieved, no compensation expense is recognized and any previously recognized compensation expense is reversed. |
Convertible Debt Instruments | Convertible Debt Instruments Convertible debt instruments are accounted for under ASC 470-20, Debt – Debt with Conversion and Other Options |
Self-Insurance Liability Accruals | Self-Insurance Liability Accruals The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the Company maintains general liability and professional liability insurance policies for its owned, leased and managed communities under a master insurance program, the Company's current policies provide for deductibles for each and every claim. As a result, the Company is, in effect, self-insured for claims that are less than the deductible amounts. In addition, the Company maintains a high deductible workers compensation program and a self-insured employee medical program. The Company reviews the adequacy of its accruals related to these liabilities on an ongoing basis, using historical claims, actuarial valuations, third-party administrator estimates, consultants, advice from legal counsel and industry data, and adjusts accruals periodically. Estimated costs related to these self-insurance programs are accrued based on known claims and projected claims incurred but not yet reported. Subsequent changes in actual experience are monitored, and estimates are updated as information becomes available. During the year ended December 31, 2016, the Company reduced its estimate for the amount of expected losses for general liability and professional liability and workers compensation claims, based on recent historical claims experience. As a result, the Company decreased the accrued reserves for general liability and professional liability and workers compensation claims by $22.7 million and $12.7 million, respectively, during the year ended December 31, 2016. The reduction in these accrued reserves decreased facility operating expense by $35.4 million for the year ended December 31, 2016. |
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures In accordance with ASC 810 , Consolidation, The initial carrying value of investments in unconsolidated ventures is based on the amount paid to purchase the investment interest or the carrying value of assets contributed to the unconsolidated ventures. The Company's reported share of earnings of an unconsolidated venture is adjusted for the impact, if any, of basis differences between its carrying value of the equity investment and its share of the venture's underlying assets. Distributions received from an investee are recognized as a reduction in the carrying amount of the investment. If distributions are received from an investee that would reduce the carrying amount of an equity method investment below zero, the Company evaluates the facts and circumstances of the dividends to determine the appropriate accounting for the excess distribution, including an evaluation of the source of the proceeds and implicit or explicit commitments to fund the investee. The excess distribution is either recorded as a gain on investment, or in instances where the source of proceeds is from financing activities or the Company has a significant commitment to fund the investee, the excess distribution would result in an equity method liability and the Company would continue to record its share of the investee's earnings and losses. When the Company does not have a significant requirement to contribute additional capital over and above the original capital commitment and the carrying value of the investment in unconsolidated venture is reduced to zero, the Company discontinues applying the equity method of accounting unless the venture has an expectation of an imminent return to profitability. If the venture subsequently reports net income, the equity method of accounting is resumed only after the Company's share of that net income equals the share of net losses not recognized during the period the equity method was suspended. The Company evaluates realization of its investment in ventures accounted for using the equity method if circumstances indicate that the Company's investment is other than temporarily impaired. A current fair value of an investment that is less than its carrying amount may indicate a loss in value of the investment. If the Company determines that an equity method investment is other than temporarily impaired, it is recorded at its fair value with an impairment charge recognized in asset impairment expense for the difference between its carrying amount and fair value. |
Community Leases | Community Leases The Company, as lessee, makes a determination with respect to each of its community leases as to whether each should be accounted for as an operating lease or capital lease. The classification criteria is based on estimates regarding the fair value of the leased community, minimum lease payments, effective cost of funds, the economic life of the community and certain other terms in the lease agreements. In a business combination, the Company assumes the lease classification previously determined by the prior lessee absent a modification, as determined by ASC 840, Leases For communities under capital lease and lease financing obligation arrangements, a liability is established on the Company's consolidated balance sheets representing the present value of the future minimum lease payments and a residual value for financing leases and a corresponding long-term asset is recorded in property, plant and equipment and leasehold intangibles in the consolidated balance sheets. For capital lease assets, the asset is depreciated over the remaining lease term unless there is a bargain purchase option in which case the asset is depreciated over the useful life. For financing lease assets, the asset is depreciated over the useful life of the asset. Leasehold improvements purchased during the term of the lease are amortized over the shorter of their economic life or the lease term. All of the Company's leases contain fixed or formula-based rent escalators. To the extent that the escalator increases are tied to a fixed index or rate, lease payments are accounted for on a straight-line basis over the life of the lease. In addition, all rent-free or rent holiday periods are recognized in lease expense on a straight-line basis over the lease term, including the rent holiday period. Sale-leaseback accounting is applied to transactions in which an owned community is sold and leased back from the buyer if certain continuing involvement criteria are met. Under sale-leaseback accounting, the Company removes the community and related liabilities from the consolidated balance sheets. Gain on the sale is deferred and recognized as a reduction of facility lease expense for operating leases and a reduction of interest expense for capital leases. For leases in which the Company is involved with the construction of the building, the Company accounts for the lease during the construction period under the provisions of ASC 840. If the Company concludes that it has substantively all of the risks of ownership during construction of a leased property and therefore is deemed the owner of the project for accounting purposes, it records an asset and related financing obligation for the amount of total project costs related to construction in progress. Once construction is complete, the Company considers the requirements under ASC 840-40. If the arrangement qualifies for sale-leaseback accounting, the Company removes the assets and related liabilities from the consolidated balance sheets. If the arrangement does not qualify for sale-leaseback accounting, the Company continues to amortize the financing obligation and depreciate the assets over the lease term. |
Treasury Stock | Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders' equity. |
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash, a consensus of the FASB Emerging Issues Task Force In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows-Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers • Resident Fees • Management Fees and Reimbursed Costs Incurred on Behalf of Managed Communities • Equity in Earnings (Loss) of Unconsolidated Ventures Additionally, real estate sales with customers are within the scope of ASU 2014-09. Under ASU 2014-09 the revenue recognition for real estate sales is largely based on the transfer of control versus continuing involvement under the current guidance. As a result, more transactions may qualify as sales of real estate and revenue may be recognized sooner. The Company will apply the five step revenue model to all future real estate transaction with customers. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Cash and escrow deposits - restricted | Cash and escrow deposits – restricted consist principally of deposits required by certain lenders and lessors pursuant to the applicable agreement and consist of the following (dollars in thousands): December 31, 2016 2015 Current: Real estate tax and property insurance escrows $ 19,671 $ 18,862 Replacement reserve escrows 6,970 8,011 Resident deposits 764 862 Other 5,459 4,835 Subtotal 32,864 32,570 Long term: Insurance deposits 12,941 15,318 CCRC escrows 13,301 13,233 Debt service reserve 1,819 3,429 Letter of credit collateral — 1,202 Other — 200 Subtotal 28,061 33,382 Total $ 60,925 $ 65,952 |
Property, plant and equipment, useful lives | Property, plant and equipment and leasehold intangibles, which include amounts recorded under capital and financing leases, are recorded at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Category Estimated Useful Life (in years) Buildings and improvements 40 Furniture and equipment 3 – 7 Resident lease intangibles 1 – 3 |
Definite lived intangible assets, useful lives | Amortization of the Company's definite-lived intangible assets is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Category Estimated Useful Life (in years) Trade names 2 – 5 Other 3 – 9 |
Acquisitions and Other Signif30
Acquisitions and Other Significant Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions and Other Significant Transactions [Abstract] | |
Schedule Preliminary Allocation of Purchase Price | Cash and cash equivalents $ 28 Property, plant and equipment and leasehold intangibles 5,506 Goodwill 645 Other intangible assets, net 259 Other assets, net 307 Trade accounts payable and accrued expenses (297 ) Long-term debt (1,516 ) Capital and financing lease obligations (2,692 ) Deferred tax liability (339 ) Other liabilities (251 ) Noncontrolling interest (1 ) Fair value of Brookdale common stock issued $ 1,649 |
Annualized pro forma consolidated operational data | The following table provides the pro forma consolidated operational data as if the Company had acquired Emeritus on January 1, 2013 (unaudited, in millions, except share and per share data): 2014 Total revenue $ 5,055 Net income (loss) attributable to common stockholders (103 ) Basic and diluted net income (loss) per share attributable to common stockholders $ (0.59 ) Weighted average shares used in computing basic and diluted net income (loss) per share (in thousands) 175,823 |
Investment in Unconsolidated 31
Investment in Unconsolidated Ventures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities and Investment in Unconsolidated Ventures [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | VIE Asset Maximum Exposure to Loss Carrying Amount CCRC Venture opco Investment in unconsolidated ventures $ 50.1 $ 50.1 RIDEA Ventures Investment in unconsolidated ventures $ 92.1 $ 92.1 |
Schedule of Equity Method Investments | Venture Ownership Percentage CCRC Venture 51% HCP 49 Venture 20% BKD-HCN venture opco and propco 20% HCP 35 Venture 10% S-H Twenty-One venture opco and propco 10% Statement of Operations Information 2016 2015 2014 Total revenue $ 1,133 $ 964 $ 439 Facility operating expenses (779 ) (679 ) (293 ) Net income (loss) (4 ) (18 ) (10 ) Balance Sheet Information 2016 2015 Current assets $ 128 $ 143 Noncurrent assets 3,932 4,156 Current liabilities 1,153 583 Noncurrent liabilities 2,215 2,294 |
Property, Plant and Equipment32
Property, Plant and Equipment and Leasehold Intangibles, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment and Leasehold Intangibles, Net [Abstract] | |
Property, plant and equipment and leasehold intangibles, net | As of December 31, 2016 and 2015, net property, plant and equipment and leasehold intangibles, which include assets under capital and financing leases, consisted of the following (in thousands): 2016 2015 Land $ 455,307 $ 486,567 Buildings and improvements 5,053,204 5,260,826 Leasehold improvements 126,325 100,430 Furniture and equipment 974,516 895,447 Resident and leasehold operating intangibles 705,000 783,434 Construction in progress 69,803 138,054 Assets under capital and financing leases 2,879,996 2,909,653 10,264,151 10,574,411 Accumulated depreciation and amortization (2,884,846 ) (2,543,035 ) Property, plant and equipment and leasehold intangibles, net $ 7,379,305 $ 8,031,376 |
Resident and Leasehold Operating Intangibles, Future Amortization Expense | Future amortization expense for resident and leasehold operating intangibles is estimated to be as follows (dollars in thousands): Year Ending December 31, Future Amortization 2017 $ 9,664 2018 7,601 2019 6,209 2020 4,353 2021 2,731 Thereafter 9,958 Total $ 40,516 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Summary of changes in the carrying amount of goodwill | The following is a summary of the carrying amount of goodwill as of December 31, 2016 and December 31, 2015 presented on an operating segment basis (dollars in thousands): December 31, 2016 December 31, 2015 Gross Carrying Amount Dispositions and Other Reductions Net Gross Carrying Amount Dispositions and Other Reductions Net Retirement Centers $ 28,141 $ (820 ) $ 27,321 $ 28,141 $ (721 ) $ 27,420 Assisted Living 600,162 (48,817 ) 551,345 591,814 (20,348 ) 571,466 Brookdale Ancillary Services 126,810 — 126,810 126,810 — 126,810 Total $ 755,113 $ (49,637 ) $ 705,476 $ 746,765 $ (21,069 ) $ 725,696 |
Other intangible assets | The following is a summary of other intangible assets at December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Community purchase options $ 4,738 $ — $ 4,738 $ 40,270 $ — $ 40,270 Health care licenses 65,126 — 65,126 66,612 — 66,612 Trade names 27,800 (21,135 ) 6,665 27,800 (14,209 ) 13,591 Other 13,531 (7,053 ) 6,478 13,531 (4,818 ) 8,713 Total $ 111,195 $ (28,188 ) $ 83,007 $ 148,213 $ (19,027 ) $ 129,186 |
Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization expense for intangible assets with definite lives is estimated to be as follows (dollars in thousands): Year Ending December 31, Future Amortization 2017 $ 3,575 2018 3,565 2019 2,487 2020 982 2021 982 Thereafter 1,552 Total $ 13,143 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Schedule of debt | Long-term debt and capital and financing lease obligations consist of the following (dollars in thousands): December 31, 2016 2015 Mortgage notes payable due 2017 through 2047; weighted average interest rate of 4.50% in 2016, including net debt premium and deferred financing costs of $(4.5) million in 2016 and including net debt premium and deferred financing costs of $3.3 million in 2015 (weighted average interest rate of 4.51% in 2015) $ 3,184,229 $ 3,246,513 Capital and financing lease obligations payable through 2032; weighted average interest rate of 8.08% in 2016 (weighted average interest rate of 8.11% in 2015) 2,485,520 2,489,588 Convertible notes payable in aggregate principal amount of $316.3 million, less debt discount and deferred financing costs of $20.9 million and $34.3 million in 2016 and 2015, respectively, interest at 2.75% per annum, due June 15, 2018 295,397 281,902 Construction financing due 2032; weighted average interest rate of 8.00% in 2016 (weighted average interest rate of 4.84% in 2015) 3,644 24,105 Other notes payable, weighted average interest rate of 5.33% in 2016 (weighted average interest rate of 5.16% in 2015) and maturity dates ranging from 2017 to 2020 76,377 80,305 Total long-term debt and capital and financing lease obligations 6,045,167 6,122,413 Less current portion 215,255 235,604 Total long-term debt and capital and financing lease obligations, less current portion $ 5,829,912 $ 5,886,809 As of December 31, 2016 and 2015, the current portion of long-term debt within the Company's consolidated financial statements includes $60.5 million and $60.8 million, respectively, of mortgage notes payable secured by assets held for sale. This debt will either be assumed by the prospective purchasers or be repaid with the proceeds from the sales. Refer to Note 4 for more information about the Company's assets held for sale. |
Annual aggregate scheduled maturities of long-term debt obligations outstanding | The annual aggregate scheduled maturities of long-term debt and capital and financing lease obligations outstanding as of December 31, 2016 are as follows (dollars in thousands): Year Ending December 31, Long-term Debt Capital and Financing Lease Obligations Total Debt 2017 $ 154,114 $ 416,239 $ 570,353 2018 1,231,670 277,829 1,509,499 2019 135,169 256,539 391,708 2020 473,817 200,308 674,125 2021 332,866 186,342 519,208 Thereafter 1,257,549 3,230,311 4,487,860 Total obligations 3,585,185 4,567,568 8,152,753 Less amount representing debt discount and deferred financing costs, net (25,538 ) — (25,538 ) Less amount representing interest (weighted average interest rate of 8.08%) — (2,082,048 ) (2,082,048 ) Total $ 3,559,647 $ 2,485,520 $ 6,045,167 |
Interest expense associated with the convertible notes | The interest expense associated with the Notes (excluding amortization of the associated deferred financing costs) was as follows (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Coupon interest $ 8,697 $ 8,697 $ 8,697 Amortization of discount 12,625 11,732 10,902 Interest expense related to convertible notes $ 21,322 $ 20,429 $ 19,599 |
Summary of swap and cap instruments | Current notional balance $ 806,994 Weighted average fixed cap rate 4.66 % Earliest maturity date 2017 Latest maturity date 2022 Estimated asset fair value (included in other assets, net at December 31, 2016) $ 127 Estimated asset fair value (included in other assets, net at December 31, 2015) $ 29 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following components as of December 31, (in thousands): 2016 2015 Salaries and wages $ 102,025 $ 80,291 Insurance reserves 71,123 94,948 Vacation 42,411 44,421 Real estate taxes 34,002 37,206 Interest 12,948 12,940 Lease payable 11,211 20,714 Accrued utilities 10,582 11,949 Taxes payable 2,818 3,265 Other 40,917 67,140 Total $ 328,037 $ 372,874 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Summary of facility operating leases | A summary of facility lease expense and the impact of straight-line adjustment and amortization of (above) below market rents and deferred gains are as follows (in thousands): For the Years Ended December 31, 2016 2015 2014 Cash basis payment $ 384,104 $ 372,148 $ 330,207 Straight-line (income) expense 767 6,956 1,439 Amortization of (above) below market rents, net (6,864 ) (7,158 ) (3,444 ) Amortization of deferred gain (4,372 ) (4,372 ) (4,372 ) Facility lease expense $ 373,635 $ 367,574 $ 323,830 |
Future minimum operating lease payments | The aggregate amounts of future minimum operating lease payments, including community and office leases, as of December 31, 2016 (prior to giving effect to the transactions with HCP and Blackstone pending as of December 31, 2016), are as follows (dollars in thousands): Year Ending December 31, Operating Leases 2017 $ 387,521 2018 377,521 2019 359,282 2020 317,654 2021 279,040 Thereafter 1,222,392 Total $ 2,943,410 As of December 31, 2016, the Company is in compliance with the financial covenants of its long-term leases. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Restricted stock awards | The following table sets forth information about the Company's restricted stock awards (excluding restricted stock units) (share amounts in thousands): Number of Shares Weighted Average Grant Date Fair Value Outstanding on January 1, 2014 3,373 $ 21.12 Granted 1,662 $ 29.79 Vested (1,185 ) $ 19.58 Cancelled/forfeited (298 ) $ 21.02 Outstanding on December 31, 2014 3,552 $ 25.70 Granted 1,698 $ 32.75 Vested (1,275 ) $ 23.55 Cancelled/forfeited (521 ) $ 18.68 Outstanding on December 31, 2015 3,454 $ 28.80 Granted 3,141 $ 14.56 Vested (1,242 ) $ 26.79 Cancelled/forfeited (745 ) $ 24.75 Outstanding on December 31, 2016 4,608 $ 20.29 |
Current year grants of restricted shares and restricted stock units | During 2016, grants of restricted shares under the Company's 2014 Omnibus Incentive Plan were as follows (amounts in thousands except for value per share): Shares Granted Value Per Share Total Value Three months ended March 31, 2016 2,855 $ 14.50 - 18.46 $ 41,399 Three months ended June 30, 2016 111 $ 15.68 - 18.03 $ 2,001 Three months ended September 30, 2016 54 $ 15.90 - 17.46 $ 918 Three months ended December 31, 2016 121 $ 9.75 - 11.93 $ 1,405 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income tax expense (benefit) | The benefit (provision) for income taxes is comprised of the following (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Federal: Current $ (12 ) $ 49 $ 1,367 Deferred (3,248 ) 95,259 182,371 Total Federal (3,260 ) 95,308 183,738 State: Current (2,118 ) (3,099 ) (2,433 ) Deferred (included in Federal above) — — — Total State (2,118 ) (3,099 ) (2,433 ) Total $ (5,378 ) $ 92,209 $ 181,305 |
Reconciliation of the benefit for income taxes to the amount computed at the U.S. Federal statutory rate | A reconciliation of the benefit (provision) for income taxes to the amount computed at the U.S. Federal statutory rate of 35% is as follows (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Tax benefit at U.S. statutory rate $ 139,657 $ 192,390 $ 115,603 State taxes, net of federal income tax 11,788 18,323 11,582 Tax credits 6,163 3,937 (2,222 ) Valuation allowance (142,862 ) (111,797 ) 64,155 Goodwill impairment (10,789 ) (7,856 ) — Stock compensation (5,716 ) — — Other, net (1,831 ) (1,626 ) (713 ) Return to provision (920 ) (72 ) 716 Meals and entertainment (868 ) (1,090 ) (946 ) Non-deductible transaction costs — — (6,870 ) Total $ (5,378 ) $ 92,209 $ 181,305 |
Components of deferred tax assets and liabilities | Significant components of the Company's deferred tax assets and liabilities at December 31 are as follows (dollars in thousands): 2016 2015 Deferred income tax assets: Capital and financing lease obligations $ 862,038 $ 872,002 Operating loss carryforwards 319,948 282,075 Accrued expenses 109,283 144,691 Deferred lease liability 93,358 94,105 Tax credits 49,550 40,974 Intangible assets 20,272 22,522 Deferred gain on sale leaseback 4,233 5,661 Prepaid revenue 2,626 2,415 Total gross deferred income tax asset 1,461,308 1,464,445 Valuation allowance (264,305 ) (121,602 ) Net deferred income tax assets 1,197,003 1,342,843 Deferred income tax liabilities: Property, plant and equipment (1,209,595 ) (1,320,423 ) Investment in unconsolidated ventures (66,678 ) (88,798 ) Other (1,376 ) (2,673 ) Total gross deferred income tax liability (1,277,649 ) (1,411,894 ) Net deferred tax liability $ (80,646 ) $ (69,051 ) |
Reconciliation of the unrecognized tax benefits | A reconciliation of the unrecognized tax benefits for the years ended December 31, 2016 and 2015 is as follows (dollars in thousands): For the Years Ended December 31, 2016 2015 Balance at January 1, $ 30,236 $ 30,195 Additions for tax positions related to the current year — — Additions for tax positions related to prior years 30 50 Reductions for tax positions related to prior years (1,106 ) (9 ) Balance at December 31, $ 29,160 $ 30,236 |
Supplemental Disclosure of Ca39
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |
Supplemental cash flow information | (dollars in thousands) For the Years Ended December 31, Supplemental Disclosure of Cash Flow Information: 2016 2015 2014 Interest paid $ 349,535 $ 360,960 $ 226,594 Income taxes paid $ 2,047 $ 2,952 $ 2,746 Additions to property, plant and equipment and leasehold improvements Property, plant and equipment and leasehold intangibles, net $ 300,113 $ 448,682 $ 304,245 Accounts payable 33,534 (37,631 ) — Net cash paid $ 333,647 $ 411,051 $ 304,245 Acquisitions of assets, net of related payables and cash received, net: Cash and escrow deposits—restricted $ — $ — $ — Prepaid expenses and other assets, net — (53,405 ) (3,138 ) Property, plant and equipment and leasehold intangibles, net 19,457 198,558 80,330 Other intangible assets, net (7,300 ) (7,294 ) (23,978 ) Accrued expenses — — — Long-term debt — (101,558 ) 7,795 Capital and financing lease obligations — 155,230 — Other liabilities — (315 ) (20,568 ) Net cash paid $ 12,157 $ 191,216 $ 40,441 Proceeds from sale of assets, net: Assets held for sale $ (289,452 ) $ — $ — Prepaid expenses and other assets, net (4,543 ) 25,780 — Property, plant and equipment and leasehold intangibles, net — (82,953 ) — Capital and financing lease obligations — 8,907 — Other liabilities 3,281 (960 ) — Gain on sale of assets (7,218 ) — — Net cash received $ (297,932 ) $ (49,226 ) $ — Formation of CCRC Venture: Property, plant and equipment and leasehold intangibles, net $ — $ — $ (729,123 ) Investment in unconsolidated ventures — — 194,485 Other intangible assets, net — — (56,829 ) Other assets, net — — (9,137 ) Long-term debt — — 170,416 Capital and financing lease obligations — — 27,085 Refundable entrance fees and deferred revenue — — 413,761 Other liabilities — — 1,514 Net cash paid $ — $ — $ 12,172 Formation of HCP 49 Venture: Property, plant and equipment and leasehold intangibles, net $ — $ — $ (525,446 ) Investment in unconsolidated ventures — — 71,656 Long-term debt — — (67,640 ) Capital and financing lease obligations — — 538,355 Other liabilities — — (9,034 ) Net cash paid $ — $ — $ 7,891 Supplemental Schedule of Non-cash Operating, Investing and Financing Activities: Capital and financing leases: Property, plant and equipment and leasehold intangibles, net $ — $ 26,644 $ 27,100 Other intangible assets, net — (5,202 ) — Capital and financing lease obligations — (23,738 ) (27,100 ) Other liabilities — 2,296 — Net $ — $ — $ — Master Lease amendment: Property, plant and equipment and leasehold intangibles, net $ — $ — $ 385,696 Other intangible assets, net — — (174,012 ) Capital and financing lease obligations — — (217,022 ) Other liabilities — — 5,338 Net $ — $ — $ — Assets designated as held for sale: Property, plant and equipment and leasehold intangibles, net $ (262,711 ) $ (113,592 ) $ — Assets held for sale 278,675 110,620 — Prepaid expenses and other current assets (3,195 ) — — Goodwill (28,568 ) (12,200 ) — Asset impairment 15,799 15,172 — Net $ — $ — $ — Contribution to CCRC venture: Property, plant and equipment $ — $ (25,717 ) $ — Investment in unconsolidated ventures — 7,422 — Long-term debt — 18,295 — Net $ — $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Schedule of segment reporting infomration | The following table sets forth selected segment financial and operating data (dollars in thousands): For the Years Ended December 31, 2016 2015 2014 Revenue: Retirement Centers (1) $ 679,503 $ 657,940 $ 582,312 Assisted Living (1) 2,419,459 2,445,457 1,685,563 CCRCs - Rental (1) 592,826 604,572 493,173 CCRCs - Entry Fee (1) — — 202,414 Brookdale Ancillary Services (1) 476,833 469,158 337,835 Management Services (2) 808,359 783,481 530,409 $ 4,976,980 $ 4,960,608 $ 3,831,706 Segment Operating Income (3) Retirement Centers $ 294,530 $ 285,257 $ 248,883 Assisted Living 876,817 877,303 608,489 CCRCs - Rental 133,409 150,495 121,661 CCRCs - Entry Fee — — 48,433 Brookdale Ancillary Services 64,463 75,210 63,463 Management Services 70,762 60,183 42,239 1,439,981 1,448,448 1,133,168 General and administrative (including non-cash stock-based compensation expense) 313,409 370,579 280,267 Transaction costs 3,990 8,252 66,949 Facility lease expense: Retirement Centers 120,272 114,738 98,321 Assisted Living 193,670 197,452 162,575 CCRCs - Rental 51,727 47,937 51,523 CCRCs - Entry Fee — — 4,362 Brookdale Ancillary Services — — 890 Corporate and Management Services 7,966 7,447 6,159 Depreciation and amortization: Retirement Centers 94,049 104,063 86,188 Assisted Living 308,639 489,933 317,918 CCRCs - Rental 66,431 87,754 60,175 CCRCs - Entry Fee — — 37,524 Brookdale Ancillary Services 4,075 7,451 4,764 Corporate and Management Services 47,208 43,964 30,466 Asset impairment 248,515 57,941 9,992 Loss on facility lease termination 11,113 76,143 — Income (loss) income from operations $ (31,083 ) $ (165,206 ) $ (84,905 ) Total interest expense: Retirement Centers $ 56,827 $ 58,397 $ 41,906 Assisted Living 249,449 250,116 140,001 CCRCs - Rental 39,824 39,502 28,418 CCRCs - Entry Fee — — 7,530 Brookdale Ancillary Services 1,461 1,354 823 Corporate and Management Services 38,056 39,395 29,510 $ 385,617 $ 388,764 $ 248,188 Total capital expenditures for property, plant and equipment, and leasehold intangibles: Retirement Centers $ 59,978 $ 161,986 $ 76,285 Assisted Living 156,732 220,893 107,037 CCRCs - Rental 37,800 54,864 42,412 CCRCs - Entry Fee — — 36,575 Brookdale Ancillary Services 1,576 4,061 1,805 Corporate and Management Services 44,027 6,878 40,131 $ 300,113 $ 448,682 $ 304,245 As of December 31, 2016 2015 Total assets: Retirement Centers $ 1,452,546 $ 1,556,169 Assisted Living 5,831,434 6,354,415 CCRCs - Rental 935,389 1,037,384 Brookdale Ancillary Services 280,530 292,540 Corporate and Management Services 717,788 808,056 $ 9,217,687 $ 10,048,564 (1) All revenue is earned from external third parties in the United States. (2) Management services segment revenue includes reimbursements for which the Company is the primary obligor of costs incurred on behalf of managed communities. (3) Segment operating income is defined as segment revenues less segment facility operating expenses (excluding depreciation and amortization). |
Quarterly Results of Operatio41
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly results of operations | The following is a summary of quarterly results of operations for each of the fiscal quarters in 2016 and 2015 (in thousands, except per share amounts): For the Quarters Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Revenues $ 1,263,156 $ 1,258,830 $ 1,246,126 $ 1,208,868 Asset impairment 3,375 4,152 19,111 221,877 Income (loss) from operations 41,354 58,287 47,645 (178,369 ) Income (loss) before income taxes (47,152 ) (35,368 ) (47,569 ) (269,169 ) Net income (loss) (48,817 ) (35,491 ) (51,728 ) (268,600 ) Net income (loss) attributable to Brookdale Senior Living Inc. common stockholders (48,775 ) (35,450 ) (51,685 ) (268,487 ) Weighted average basic and diluted income (loss) per share $ (0.26 ) $ (0.19 ) $ (0.28 ) $ (1.45 ) For the Quarters Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Revenues $ 1,247,881 $ 1,238,184 $ 1,238,841 $ 1,235,702 Asset impairment — — — 57,941 Income (loss) from operations (116,873 ) (43,123 ) 3,663 (8,873 ) Income (loss) before income taxes (208,997 ) (137,400 ) (99,132 ) (104,835 ) Net income (loss) (130,709 ) (84,807 ) (68,336 ) (174,303 ) Net income (loss) attributable to Brookdale Senior Living Inc. common stockholders (130,451 ) (84,547 ) (68,220 ) (174,259 ) Weighted average basic and diluted income (loss) per share $ (0.71 ) $ (0.46 ) $ (0.37 ) $ (0.94 ) |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue Recognition [Abstract] | ||
Term of residency agreements - minimum (in days) | 30 days | |
Term of residency agreements - maximum (in years) | 1 year | |
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, current | $ 32,864 | $ 32,570 |
Cash and escrow deposits - restricted, long term | 28,061 | 33,382 |
Cash and escrow deposits - restricted, total | 60,925 | 65,952 |
Accounts Receivable [Abstract] | ||
Allowance for doubtful accounts | 27,000 | 26,500 |
Increase (Decrease) in Insurance Liabilities [Abstract] | ||
Increase (Decrease) in Liability for Claims and Claims Adjustment Expense Reserve | 35,400 | |
Increase (Decrease) in Workers' Compensation Liabilities | 12,700 | |
Increase (Decrease) in Other Insurance Liabilities | $ 22,700 | |
Buildings and Improvements [Member] | Weighted Average [Member] | ||
Estimated useful life of property, plant and equipment [Abstract] | ||
Estimated Useful Life (in years) | 40 years | |
Furniture and Equipment [Member] | Minimum [Member] | ||
Estimated useful life of property, plant and equipment [Abstract] | ||
Estimated Useful Life (in years) | 3 years | |
Furniture and Equipment [Member] | Maximum [Member] | ||
Estimated useful life of property, plant and equipment [Abstract] | ||
Estimated Useful Life (in years) | 7 years | |
Resident lease intangibles [Member] | Minimum [Member] | ||
Estimated useful life of property, plant and equipment [Abstract] | ||
Estimated Useful Life (in years) | 1 year | |
Resident lease intangibles [Member] | Maximum [Member] | ||
Estimated useful life of property, plant and equipment [Abstract] | ||
Estimated Useful Life (in years) | 3 years | |
Other Intangible Assets [Abstract] | Minimum [Member] | ||
Finite lived intangible assets - useful lives [Abstract] | ||
Estimated Useful Life (in years) | 3 years | |
Other Intangible Assets [Abstract] | Maximum [Member] | ||
Finite lived intangible assets - useful lives [Abstract] | ||
Estimated Useful Life (in years) | 9 years | |
Tradenames [Member] | Minimum [Member] | ||
Finite lived intangible assets - useful lives [Abstract] | ||
Estimated Useful Life (in years) | 2 years | |
Tradenames [Member] | Maximum [Member] | ||
Finite lived intangible assets - useful lives [Abstract] | ||
Estimated Useful Life (in years) | 5 years | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair value of financial instruments [Abstract] | ||
Debt at carrying value | $ 3,600,000 | 3,900,000 |
Real estate taxes [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, current | 19,671 | 18,862 |
Tenant security deposits [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, current | 764 | 862 |
Insurance reserves [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, long term | 12,941 | 15,318 |
Entrance fees [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, long term | 13,301 | 13,233 |
Replacement reserve and other [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, current | 6,970 | 8,011 |
Debt service and other deposits [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, long term | 1,819 | 3,429 |
Other Restricted Cash [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, current | 5,459 | 4,835 |
Cash and escrow deposits - restricted, long term | 0 | 200 |
Letter of Credit Collateral [Member] | ||
Cash and escrow deposits - restricted [Line Items] | ||
Cash and escrow deposits - restricted, long term | $ 0 | $ 1,202 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 4.3 | 3.7 | 3.6 |
Convertible Debt Securities [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 13.8 | 13.8 | 13.8 |
Principal | $ 316.3 | ||
Debt Instrument Convertible Maximum Number Of Equity Instrument | 3 | ||
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 10.8 | 10.8 | 10.8 |
Acquisitions and Other Signif44
Acquisitions and Other Significant Transactions (Details) $ / shares in Units, $ in Thousands | May 01, 2015USD ($)Community | Oct. 31, 2015USD ($)Community | Feb. 28, 2015USD ($)Community | Aug. 31, 2014USD ($)CommunityUnitEntityPropertyMemberRepresentative | Jul. 31, 2014USD ($)Community | Dec. 31, 2016USD ($)Communityshares | Sep. 30, 2016USD ($)Community | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($)Community | Dec. 31, 2015USD ($)Communityshares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($)Community | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)CommunityLeaseshares | Dec. 31, 2015USD ($)Communityshares | Dec. 31, 2014USD ($)Community$ / sharesshares | Jan. 31, 2017 | Jul. 30, 2014shares |
Business Acquisition [Line Items] | ||||||||||||||||||||
Percentage of voting interests acquired | 100.00% | |||||||||||||||||||
Number of communities operated under long-term leases | Community | 539 | 539 | ||||||||||||||||||
Aggregate acquisition-date fair value of purchase consideration transferred | $ 3,000,000 | |||||||||||||||||||
Amount of mortgage indebtedness assumed | $ 1,400,000 | |||||||||||||||||||
Number of underlying communities with which mortgage loans collateralized | Community | 179 | |||||||||||||||||||
Transaction costs of acquisition | $ 3,990 | $ 8,252 | $ 66,949 | |||||||||||||||||
Common stock, shares authorized (in shares) | shares | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 400 | |||||||||||||||
Number of venture transactions entered by the entity | Unit | 2 | |||||||||||||||||||
Term of master agreement | 15 years | |||||||||||||||||||
Percentage of interest acquired in joint venture (in hundredths) | 51.00% | |||||||||||||||||||
Partners Joint Venture Ownership Percentage (in hundredths) | 49.00% | |||||||||||||||||||
Number of wholly-owned entities contributed to the venture by the entity | Entity | 8 | |||||||||||||||||||
Number of communities owned by the entity | Community | 8 | |||||||||||||||||||
Number of wholly-owned entities contributed to the venture by venture partner | Entity | 3 | |||||||||||||||||||
Number of properties owned by venture partner | Property | 3 | |||||||||||||||||||
Number of communities owned by venture partner | Community | 2 | |||||||||||||||||||
Number of Communities Deconsolidated | Community | 10 | |||||||||||||||||||
Cash contributed to venture by venture partner | $ 323,500 | |||||||||||||||||||
Number of members on board | Member | 6 | |||||||||||||||||||
Number of representatives on board | Representative | 3 | |||||||||||||||||||
Number of communities under master lease and security agreement | Community | 112 | |||||||||||||||||||
Number of communities under triple net leases agreement | Community | 41 | |||||||||||||||||||
Number of pools under amended master leases agreement | Unit | 3 | |||||||||||||||||||
Master leases term for Pool one communities | 14 years | |||||||||||||||||||
Master leases term for Pool two communities | 15 years | |||||||||||||||||||
Master leases term for Pool three communities | 16 years | |||||||||||||||||||
Number of extension options | Unit | 2 | |||||||||||||||||||
Term of extension option | 10 years | |||||||||||||||||||
Base rent as per amended master leases agreement | $ 158,000 | |||||||||||||||||||
Maximum available reimbursement for capital expenditures by co venturer | $ 100,000 | |||||||||||||||||||
Initial lease rate for lessor reimbursements for capital expenditures (in hundredths) | 7.00% | |||||||||||||||||||
Number of communities for which purchase option included in master lease | Community | 10 | |||||||||||||||||||
Maximum aggregate purchase price of communities under purchase option | $ 60,000 | |||||||||||||||||||
Number Of Communities With Cancelled Purchase Options | Community | 49 | |||||||||||||||||||
Number of communities purchased or sold | Community | 7 | 51 | 4 | |||||||||||||||||
Number of communities with modified term | Community | 20 | |||||||||||||||||||
Extinguishment of Debt, Amount | $ 275,900 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Total revenue | 5,055,000 | |||||||||||||||||||
Net loss attributable to common shares | $ (103,000) | |||||||||||||||||||
Basic and diluted net loss per share attributable to common shares | $ / shares | $ (0.59) | |||||||||||||||||||
Weighted average shares used in computing basic and diluted net loss per share (in shares) | shares | 175,823 | |||||||||||||||||||
Loss on facility lease termination | $ 11,113 | $ 76,143 | $ 0 | |||||||||||||||||
Asset impairment | $ 221,877 | $ 19,111 | $ 4,152 | $ 3,375 | $ 57,941 | $ 0 | $ 0 | $ 0 | 248,515 | 57,941 | 9,992 | |||||||||
Aggregate selling price | $ 46,700 | 9,200 | ||||||||||||||||||
Assets held for sale | 97,843 | 110,620 | 97,843 | 110,620 | ||||||||||||||||
Long-term debt, less current portion | $ 3,413,998 | $ 3,459,371 | $ 3,413,998 | $ 3,459,371 | ||||||||||||||||
Communities classified as held for sale | Community | 51 | 17 | 51 | 17 | ||||||||||||||||
Partners Joint Venture Ownership Percentage | 49.00% | |||||||||||||||||||
Investment in unconsolidated ventures | $ (13,377) | $ (69,297) | (26,499) | |||||||||||||||||
Facility operating expense (excluding depreciation and amortization of $469,388, $684,448 and $503,662, respectively) | 2,799,402 | 2,788,862 | 2,210,368 | |||||||||||||||||
Resident fees | $ 4,168,621 | 4,177,127 | $ 3,301,297 | |||||||||||||||||
Number of Communities | Lease | 97 | |||||||||||||||||||
Remaining base lease terms, maximum | 16 years | |||||||||||||||||||
Percentage ownership in unconsolidated joint ventures | 10.00% | |||||||||||||||||||
Deferred Tax Assets, Valuation Allowance | $ 264,305 | $ 121,602 | $ 264,305 | 121,602 | ||||||||||||||||
Net operating loss carryforwards and tax credits | $ 369,500 | $ 369,500 | ||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 10,298,506 | 10,299,000 | ||||||||||||||||||
Proceeds from public equity offering, net | $ 0 | $ 0 | $ 330,386 | |||||||||||||||||
Deferred Offering Costs | $ 400 | |||||||||||||||||||
Weighted average interest rate | 5.50% | |||||||||||||||||||
Extinguishment of Debt, Amount | $ 275,900 | |||||||||||||||||||
Common stock issued in connection with Emeritus acquisition | $ 1,648,782 | |||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 47,584,000 | |||||||||||||||||||
CCRCs JV [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 4 | |||||||||||||||||||
RIDEA JV [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Percentage of interest acquired in joint venture (in hundredths) | 20.00% | |||||||||||||||||||
Partners Joint Venture Ownership Percentage (in hundredths) | 80.00% | |||||||||||||||||||
Advance from co venturers affiliate | $ 68,000 | |||||||||||||||||||
Number of communities contributed by venture partner | Community | 49 | |||||||||||||||||||
Lease restructuring fee payable to co venturer | $ 34,000 | |||||||||||||||||||
Period with in which lease restructuring fee payable | 2 years | |||||||||||||||||||
Extinguishment of Debt, Amount | $ 68,000 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Partners Joint Venture Ownership Percentage | 80.00% | |||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||
Extinguishment of Debt, Amount | 68,000 | |||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Weighted average interest rate (in hundredths) | 5.49% | |||||||||||||||||||
Debt maturity period | 3 months | |||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Weighted average interest rate (in hundredths) | 6.06% | |||||||||||||||||||
Debt maturity period | 33 years | |||||||||||||||||||
Retirement Centers [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 3 | |||||||||||||||||||
Preliminary Allocation of Purchase Price [Abstract] | ||||||||||||||||||||
Goodwill acquired during period | 20,499 | |||||||||||||||||||
Assisted Living [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 1 | |||||||||||||||||||
Preliminary Allocation of Purchase Price [Abstract] | ||||||||||||||||||||
Goodwill acquired during period | 497,900 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Communities classified as held for sale | Community | 13 | 13 | ||||||||||||||||||
Brookdale Ancillary Services [Member] | ||||||||||||||||||||
Preliminary Allocation of Purchase Price [Abstract] | ||||||||||||||||||||
Goodwill acquired during period | 126,810 | |||||||||||||||||||
CCRCs Rental [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Communities classified as held for sale | Community | 3 | 3 | ||||||||||||||||||
Emeritus [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities operated | Community | 493 | |||||||||||||||||||
Number of communities operated under long-term leases | Community | 311 | |||||||||||||||||||
Transaction costs of acquisition | 57,100 | |||||||||||||||||||
Number of communities owned by the entity | Community | 182 | |||||||||||||||||||
Revenue of acquired business | 785,500 | |||||||||||||||||||
Income (Loss) of acquired business | 128,200 | |||||||||||||||||||
Preliminary Allocation of Purchase Price [Abstract] | ||||||||||||||||||||
Cash and cash equivalents | $ 28,000 | $ 28,000 | ||||||||||||||||||
Property, plant and equipment and leasehold intangibles | 5,506,000 | 5,506,000 | ||||||||||||||||||
Goodwill acquired during period | $ 645 | |||||||||||||||||||
Other intangible assets, net | 259,000 | 259,000 | ||||||||||||||||||
Other assets, net | 307,000 | 307,000 | ||||||||||||||||||
Trade Accounts Payable and accrued expenses | (297,000) | (297,000) | ||||||||||||||||||
Long-term debt | (1,516,000) | (1,516,000) | ||||||||||||||||||
Capital and Financing Lease obligations | (2,692,000) | (2,692,000) | ||||||||||||||||||
Deferred tax liability | (339,000) | (339,000) | ||||||||||||||||||
Other liabilities | (251,000) | (251,000) | ||||||||||||||||||
Noncontrolling interest | (1,000) | (1,000) | ||||||||||||||||||
Fair value of Brookdale common stock issued | 1,649,000 | 1,649,000 | ||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Goodwill, Purchase Accounting Adjustments | $ 5,900 | |||||||||||||||||||
Acquisition of Communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 4 | |||||||||||||||||||
Aggregate purchase price | $ 51,400 | |||||||||||||||||||
Acquisition purchase price amount financed | $ 17,000 | |||||||||||||||||||
Number of communities securing acquisition financing | Community | 3 | |||||||||||||||||||
Acquired property plant and equipment [Member] | Minimum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Cap Rate | 5.50% | |||||||||||||||||||
Acquired property plant and equipment [Member] | Maximum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Cap Rate | 9.75% | |||||||||||||||||||
Acquired capital and financing lease obligations [Member] | Minimum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Cap Rate | 6.00% | |||||||||||||||||||
Acquired capital and financing lease obligations [Member] | Maximum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Cap Rate | 10.75% | |||||||||||||||||||
Acquired long-term debt obligations [Member] | Minimum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Discount Rate | 3.00% | |||||||||||||||||||
Acquired long-term debt obligations [Member] | Maximum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Discount Rate | 7.00% | |||||||||||||||||||
SellerFinanced Debt [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
LoanTerm | 5 years | |||||||||||||||||||
Seller financing fixed rate | 8.00% | 8.00% | ||||||||||||||||||
Principal | $ 20,000 | $ 20,000 | ||||||||||||||||||
February 2015 acquisition of 15 communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 15 | |||||||||||||||||||
Aggregate purchase price | $ 268,600 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value of Assets Acquired | 187,200 | |||||||||||||||||||
Reversal of deferred lease liability | 5,300 | |||||||||||||||||||
Loss on facility lease termination | $ 76,100 | |||||||||||||||||||
February 2015 acquisition of 15 communities [Member] | Minimum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Cap Rate | 6.25% | |||||||||||||||||||
February 2015 acquisition of 15 communities [Member] | Maximum [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Fair Value Inputs, Cap Rate | 8.75% | |||||||||||||||||||
5 Communities acquired in October 2015 [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 5 | |||||||||||||||||||
Aggregate purchase price | $ 78,400 | |||||||||||||||||||
Communities sold during 2015 [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 17 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Asset impairment | $ 18,400 | |||||||||||||||||||
Aggregate selling price | 82,900 | |||||||||||||||||||
HCP Community Acquisitions [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 1 | 9 | ||||||||||||||||||
Aggregate purchase price | $ 8,600 | $ 60,000 | ||||||||||||||||||
Assets held for sale [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Asset impairment | 4,100 | 15,799 | 33,600 | 0 | ||||||||||||||||
Assets held for sale | $ 278,675 | $ 278,675 | 0 | |||||||||||||||||
Long-term debt, less current portion | $ 60,800 | 60,800 | ||||||||||||||||||
Communities classified as held for sale | Community | 16 | 16 | ||||||||||||||||||
Facility operating expense (excluding depreciation and amortization of $469,388, $684,448 and $503,662, respectively) | $ 42,000 | |||||||||||||||||||
Resident fees | 47,200 | |||||||||||||||||||
Current portion of long-term debt related to assets held for sale | $ 60,500 | $ 60,500 | ||||||||||||||||||
Agreement to sell 44 communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 44 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Aggregate selling price | $ 252,500 | |||||||||||||||||||
Communities classified as held for sale | Community | 2 | 2 | ||||||||||||||||||
Agreements to sell seven communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 7 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Communities classified as held for sale | Community | 4 | 4 | ||||||||||||||||||
Sale of 32 communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 32 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Aggregate selling price | $ 177,500 | |||||||||||||||||||
Sale of 9 communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 9 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Aggregate selling price | $ 47,700 | |||||||||||||||||||
Removal of one community from the agreement to sell 44 communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 1 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Aggregate selling price | $ 4,700 | |||||||||||||||||||
64 communities in the Blackstone Venture [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash contributed to venture by venture partner | $ 170,000 | |||||||||||||||||||
Number of communities contributed by venture partner | Community | 4 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Aggregate selling price | $ 1,125,000 | |||||||||||||||||||
Investment in unconsolidated ventures | 63,000 | |||||||||||||||||||
Facility operating expense (excluding depreciation and amortization of $469,388, $684,448 and $503,662, respectively) | 182,000 | |||||||||||||||||||
Cash Lease Payment | 88,400 | |||||||||||||||||||
Resident fees | $ 264,700 | |||||||||||||||||||
Number of Communities | Community | 64 | |||||||||||||||||||
Remaining base lease terms, maximum | 12 years | |||||||||||||||||||
Percentage ownership in unconsolidated joint ventures | 15.00% | 15.00% | ||||||||||||||||||
Carrying value of lease obligations in excess of carrying value of lease assets | $ 107,000 | $ 107,000 | ||||||||||||||||||
64 communities in the Blackstone Venture [Member] | Retirement Centers [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 9 | |||||||||||||||||||
64 communities in the Blackstone Venture [Member] | Assisted Living [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 48 | |||||||||||||||||||
64 communities in the Blackstone Venture [Member] | CCRCs Rental [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 7 | |||||||||||||||||||
Termination of 8 triple net leases [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Facility operating expense (excluding depreciation and amortization of $469,388, $684,448 and $503,662, respectively) | $ 30,600 | |||||||||||||||||||
Cash Lease Payment | 11,300 | |||||||||||||||||||
Resident fees | $ 41,100 | |||||||||||||||||||
Number of Communities | Lease | 7 | |||||||||||||||||||
Percentage ownership in unconsolidated joint ventures | 10.00% | 10.00% | ||||||||||||||||||
Termination of 8 triple net leases [Member] | Retirement Centers [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 1 | |||||||||||||||||||
Termination of 8 triple net leases [Member] | Assisted Living [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 6 | |||||||||||||||||||
Termination of 8 triple net leases [Member] | CCRCs Rental [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 1 | |||||||||||||||||||
Termination of 25 triple net leases [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Loss on facility lease termination | $ 11,100 | |||||||||||||||||||
Facility operating expense (excluding depreciation and amortization of $469,388, $684,448 and $503,662, respectively) | 58,600 | |||||||||||||||||||
Cash Lease Payment | 18,900 | |||||||||||||||||||
Resident fees | $ 72,200 | |||||||||||||||||||
Number of Communities | Lease | 25 | |||||||||||||||||||
Termination of 25 triple net leases [Member] | Assisted Living [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 23 | |||||||||||||||||||
Termination of 25 triple net leases [Member] | CCRCs Rental [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Community | 2 | |||||||||||||||||||
Property, Plant and Equipment [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Asset impairment | $ 151,300 | $ 166,200 | 23,400 | 10,000 | ||||||||||||||||
Investment in Unconsolidated Ventures [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Asset impairment | 36,800 | 36,800 | 0 | 0 | ||||||||||||||||
Other Intangible Assets [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Asset impairment | $ 29,700 | $ 29,700 | $ 900 | $ 0 | ||||||||||||||||
Agreement to Terminate 8 triple net leases [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Lease | 8 | |||||||||||||||||||
Sale of 3 communities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 3 | |||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Aggregate selling price | $ 33,000 | |||||||||||||||||||
Sale of 3 communities [Member] | Retirement Centers [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 1 | |||||||||||||||||||
Sale of 3 communities [Member] | Assisted Living [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 1 | |||||||||||||||||||
Sale of 3 communities [Member] | CCRCs Rental [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of communities purchased or sold | Community | 1 | |||||||||||||||||||
Agreement with HCP to amend the master lease with respect to 19 communities [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Lease | 19 | |||||||||||||||||||
Agreement with HCP to amended the master lease with respect to 57 communities [Member] | ||||||||||||||||||||
Pro-forma consolidated operational data [Abstract] | ||||||||||||||||||||
Number of Communities | Lease | 57 |
Investment in Unconsolidated 45
Investment in Unconsolidated Ventures (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 31, 2017USD ($) | Mar. 31, 2016Community | Jun. 30, 2015USD ($)Community | Dec. 31, 2016USD ($)Community | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)Community | Aug. 31, 2014 | |
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Percentage ownership in unconsolidated joint ventures | 10.00% | ||||||
Equity Method Investment, Summarized Financial Information, Current Assets | $ 128,000 | $ 143,000 | |||||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 3,932,000 | 4,168,000 | |||||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 1,153,000 | 583,000 | |||||
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 2,215,000 | 2,294,000 | |||||
Equity Method Investment, Summarized Financial Information, Revenue | 1,133,000 | 964,000 | $ 439,000 | ||||
Equity Method Investment, Summarized Financial Information, Cost of Sales | (779,000) | (679,000) | (293,000) | ||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | (4,000) | (18,000) | (10,000) | ||||
Distributions from unconsolidated ventures from cumulative share of net earnings | 23,544 | 7,825 | $ 1,840 | ||||
Equity Method Investment, Other than Temporary Impairment | $ 36,800 | ||||||
Number of communities purchased or sold | Community | 7 | 51 | 4 | ||||
Partners Joint Venture Ownership Percentage (in hundredths) | 49.00% | ||||||
Investment in unconsolidated ventures | $ (13,377) | $ (69,297) | $ (26,499) | ||||
Equity Method Liability | 60,200 | ||||||
CCRC Venture opco [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Maximum Exposure to Loss | 50,100 | ||||||
Carrying Amount | 50,100 | ||||||
RIDEA Ventures [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Maximum Exposure to Loss | 92,100 | ||||||
Carrying Amount | $ 92,100 | ||||||
CCRC Ventures, LLC [Member] | |||||||
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Percentage ownership in unconsolidated joint ventures | 51.00% | ||||||
Distributions from unconsolidated ventures from cumulative share of net earnings | $ 221,600 | ||||||
Proceeds from debt financing | $ 434,500 | ||||||
BKD-HCN Venture, LLC [Member] | |||||||
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Percentage ownership in unconsolidated joint ventures | 20.00% | ||||||
S-H Forty-Nine Ventures, LLC [Member] | |||||||
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Percentage ownership in unconsolidated joint ventures | 20.00% | ||||||
S-H Twenty-One Ventures, LLC [Member] | |||||||
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Percentage ownership in unconsolidated joint ventures | 10.00% | ||||||
S-H Thirty-Five Venture, LLC [Member] | |||||||
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Percentage ownership in unconsolidated joint ventures | 10.00% | ||||||
Acquisition of Venture Interest [Member] | |||||||
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Number of communities purchased or sold | Community | 35 | ||||||
Aggregate purchase price | $ 847,000 | ||||||
Partners Joint Venture Ownership Percentage (in hundredths) | 10.00% | ||||||
Investment in unconsolidated ventures | $ 30,300 | ||||||
Sale of 10% ownership interest in the HCP 49 Venture [Member] | |||||||
Schedule of Investment in Unconsolidated Joint Ventures [Line Items] | |||||||
Percentage ownership in unconsolidated joint ventures | 10.00% | ||||||
Proceeds from Sale of Equity Method Investments | $ 26,800 |
Property, Plant and Equipment46
Property, Plant and Equipment and Leasehold Intangibles, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | $ 10,264,151 | $ 10,574,411 | $ 10,264,151 | $ 10,574,411 | |||||||
Accumulated depreciation and amortization | (2,884,846) | (2,543,035) | (2,884,846) | (2,543,035) | |||||||
Property, plant and equipment and leasehold intangibles, net | 7,379,305 | 8,031,376 | 7,379,305 | 8,031,376 | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Asset impairment, non-cash charge | 221,877 | $ 19,111 | $ 4,152 | $ 3,375 | 57,941 | $ 0 | $ 0 | $ 0 | 248,515 | 57,941 | $ 9,992 |
Depreciation and amortization expense on property, plant and equipment and leasehold intangibles | 514,200 | 721,000 | 529,100 | ||||||||
Resident And Leasehold Operating Intangibles Future Amortization Expense [Abstract] | |||||||||||
2,017 | 9,664 | 9,664 | |||||||||
2,018 | 7,601 | 7,601 | |||||||||
2,019 | 6,209 | 6,209 | |||||||||
2,020 | 4,353 | 4,353 | |||||||||
2,021 | 2,731 | 2,731 | |||||||||
Thereafter | 9,958 | 9,958 | |||||||||
Total | 40,516 | 40,516 | |||||||||
Land [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | 455,307 | 486,567 | 455,307 | 486,567 | |||||||
Buildings and Improvements [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | 5,053,204 | 5,260,826 | 5,053,204 | 5,260,826 | |||||||
Leasehold Improvements [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | 126,325 | 100,430 | 126,325 | 100,430 | |||||||
Furniture and Equipment [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | 974,516 | 895,447 | 974,516 | 895,447 | |||||||
Resident and Leasehold Operating Intangibles [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | 705,000 | 783,434 | 705,000 | 783,434 | |||||||
Construction in Progress [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | 69,803 | 138,054 | 69,803 | 138,054 | |||||||
Assets Under Capital and Financing Leases [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property, plant and equipment and leasehold intangibles gross | $ 2,879,996 | $ 2,909,653 | 2,879,996 | 2,909,653 | |||||||
Property, Plant and Equipment [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Asset impairment, non-cash charge | 166,200 | 24,300 | $ 10,000 | ||||||||
Assets held for sale [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Asset impairment, non-cash charge | $ 15,800 | $ 33,600 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||||||||||
Gross Carrying Amount | $ 755,113 | $ 746,765 | $ 755,113 | $ 746,765 | |||||||
Accumulated Impairment and Other Charges | (49,637) | (21,069) | (49,637) | (21,069) | |||||||
Net | 705,476 | 725,696 | 705,476 | 725,696 | |||||||
Schedule of Intangible Assets by Major Class [Line Items] | |||||||||||
Gross Carrying Amount | 111,195 | 148,213 | 111,195 | 148,213 | |||||||
Accumulated Amortization | (28,188) | (19,027) | (28,188) | (19,027) | |||||||
Net | 83,007 | 129,186 | 83,007 | 129,186 | |||||||
Amortization expense related to definite-lived intangible assets | 9,200 | 12,200 | $ 8,000 | ||||||||
Asset impairment | 221,877 | $ 19,111 | $ 4,152 | $ 3,375 | 57,941 | $ 0 | $ 0 | $ 0 | 248,515 | 57,941 | $ 9,992 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |||||||||||
2,017 | 3,575 | 3,575 | |||||||||
2,018 | 3,565 | 3,565 | |||||||||
2,019 | 2,487 | 2,487 | |||||||||
2,020 | 982 | 982 | |||||||||
2,021 | 982 | 982 | |||||||||
Thereafter | 1,552 | 1,552 | |||||||||
Total | 13,143 | 13,143 | |||||||||
Retirement Centers [Member] | |||||||||||
Goodwill [Line Items] | |||||||||||
Gross Carrying Amount | 28,141 | 28,141 | 28,141 | 28,141 | |||||||
Accumulated Impairment and Other Charges | (820) | (721) | (820) | (721) | |||||||
Net | 27,321 | 27,420 | 27,321 | 27,420 | |||||||
Disposal Group, Goodwill | 100 | 100 | |||||||||
Assisted Living [Member] | |||||||||||
Goodwill [Line Items] | |||||||||||
Gross Carrying Amount | 600,162 | 591,814 | 600,162 | 591,814 | |||||||
Accumulated Impairment and Other Charges | (48,817) | (20,348) | (48,817) | (20,348) | |||||||
Net | 551,345 | 571,466 | 551,345 | 571,466 | |||||||
Disposal Group, Goodwill | 28,500 | 28,500 | |||||||||
Brookdale Ancillary Services [Member] | |||||||||||
Goodwill [Line Items] | |||||||||||
Gross Carrying Amount | 126,810 | 126,810 | 126,810 | 126,810 | |||||||
Accumulated Impairment and Other Charges | 0 | 0 | 0 | 0 | |||||||
Net | 126,810 | 126,810 | 126,810 | 126,810 | |||||||
Community Purchase Options [Member] | |||||||||||
Schedule of Intangible Assets by Major Class [Line Items] | |||||||||||
Gross Carrying Amount | 4,738 | 40,270 | 4,738 | 40,270 | |||||||
Accumulated Amortization | 0 | 0 | 0 | 0 | |||||||
Net | 4,738 | 40,270 | 4,738 | 40,270 | |||||||
Asset impairment | 28,200 | ||||||||||
Health Care Licenses [Member] | |||||||||||
Schedule of Intangible Assets by Major Class [Line Items] | |||||||||||
Gross Carrying Amount | 65,126 | 66,612 | 65,126 | 66,612 | |||||||
Accumulated Amortization | 0 | 0 | 0 | 0 | |||||||
Net | 65,126 | 66,612 | 65,126 | 66,612 | |||||||
Asset impairment | 1,500 | ||||||||||
Tradenames [Member] | |||||||||||
Schedule of Intangible Assets by Major Class [Line Items] | |||||||||||
Gross Carrying Amount | 27,800 | 27,800 | 27,800 | 27,800 | |||||||
Accumulated Amortization | (21,135) | (14,209) | (21,135) | (14,209) | |||||||
Net | 6,665 | 13,591 | 6,665 | 13,591 | |||||||
Other Intangible Assets [Member] | |||||||||||
Schedule of Intangible Assets by Major Class [Line Items] | |||||||||||
Gross Carrying Amount | 13,531 | 13,531 | 13,531 | 13,531 | |||||||
Accumulated Amortization | (7,053) | (4,818) | (7,053) | (4,818) | |||||||
Net | 6,478 | $ 8,713 | 6,478 | $ 8,713 | |||||||
Exercise of one community purchase option during 2016 [Member] | |||||||||||
Schedule of Intangible Assets by Major Class [Line Items] | |||||||||||
Gross Carrying Amount | $ 7,300 | $ 7,300 |
Debt (Details)
Debt (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2011USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Debt | $ 6,045,167,000 | $ 6,122,413,000 | ||
Long-term debt | 5,829,912,000 | 5,886,809,000 | ||
Less current portion | 215,255,000 | 235,604,000 | ||
Weighted average interest rate | 5.50% | |||
Unamortized debt discount | (25,538,000) | |||
Coupon interest | 174,027,000 | 173,484,000 | $ 128,002,000 | |
Extinguishment of Debt, Amount | 275,900,000 | |||
Long-term debt maturity [Abstract] | ||||
2,016 | 570,353,000 | |||
2,017 | 1,509,499,000 | |||
2,018 | 391,708,000 | |||
2,019 | 674,125,000 | |||
2,020 | 519,208,000 | |||
Thereafter | 4,487,860,000 | |||
Total obligations | 8,152,753,000 | |||
Unamortized debt discount | (25,538,000) | |||
Less amount representing interest | (2,082,048,000) | |||
Total | 6,045,167,000 | 6,122,413,000 | ||
Long-term debt, less current portion | 3,413,998,000 | 3,459,371,000 | ||
Mortgages Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 3,184,229,000 | $ 3,246,513,000 | ||
Maturity date, start | Jun. 1, 2017 | |||
Maturity date, end | Dec. 31, 2047 | |||
Weighted average interest rate | 4.50% | 4.51% | ||
Unamortized debt premium | $ (4,500,000) | $ 3,300,000 | ||
Long-term debt maturity [Abstract] | ||||
Total | 3,184,229,000 | 3,246,513,000 | ||
Capital and Financing Lease Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 2,485,520,000 | $ 2,489,588,000 | ||
Maturity date | Dec. 31, 2032 | |||
Weighted average interest rate | 8.08% | 8.11% | ||
Unamortized debt discount | $ 0 | |||
Long-term debt maturity [Abstract] | ||||
2,016 | 416,239,000 | |||
2,017 | 277,829,000 | |||
2,018 | 256,539,000 | |||
2,019 | 200,308,000 | |||
2,020 | 186,342,000 | |||
Thereafter | 3,230,311,000 | |||
Total obligations | 4,567,568,000 | |||
Unamortized debt discount | 0 | |||
Less amount representing interest | (2,082,048,000) | |||
Total | 2,485,520,000 | $ 2,489,588,000 | ||
Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 295,397,000 | $ 281,902,000 | ||
Maturity date | Jun. 15, 2018 | |||
Weighted average interest rate | 2.75% | 2.75% | 2.75% | |
Unamortized debt discount | $ 20,900,000 | $ 34,300,000 | ||
Principal | $ 316,300,000 | 316,300,000 | ||
Proceeds from debt financing | $ 308,200,000 | |||
Initial conversion rate (in shares per $1,000 of principal) | 34.1006 | |||
Equivalent initial conversion price (in dollars per share) | $ / shares | $ 29.325 | |||
Conversion terms | The Notes are convertible at an initial conversion rate of 34.1006 shares of Company common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $29.325 per share), subject to adjustment. Holders may convert their Notes at their option prior to the close of business on the second trading day immediately preceding the stated maturity date only under the following circumstances: (i) during any fiscal quarter commencing after the fiscal quarter ending September 30, 2011, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (ii) during the five business day period after any five consecutive trading day period (the "measurement period"), in which the trading price per $1,000 principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the applicable conversion rate on each such day; or (iii) upon the occurrence of specified corporate events. On and after March 15, 2018, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Unconverted Notes mature at par in June 2018. | |||
Imputed interest rate | 7.50% | |||
Expected life of convertible debt | 7 years | |||
Coupon interest | 8,697,000 | 8,697,000 | 8,697,000 | |
Amortization of discount | 12,625,000 | 11,732,000 | 10,902,000 | |
Interest expense related to convertible notes | 21,322,000 | 20,429,000 | $ 19,599,000 | |
Number of shares of common stock covered by hedging transactions (in shares) | shares | 10,784,315 | |||
Number of warrants to acquire common stock sold to Hedge Counterparties (in shares) | shares | 10,784,315 | |||
Strike price of warrants (in dollars per share) | $ / shares | $ 40.25 | |||
Net cost of hedging transaction | $ 31,900,000 | |||
Conversion rate per value of notes | $ 1,000 | |||
Number of trading days for pricing | 20 days | |||
Number of consecutive trading days | 30 days | |||
Percentage minimum of applicable conversion price (in hundredths) | 130.00% | |||
Number of consecutive trading days less than 98% of test period | 5 days | |||
Applicable percentage rate for five day consecutive trading days (in hundredths) | 98.00% | |||
Long-term debt maturity [Abstract] | ||||
Unamortized debt discount | $ 20,900,000 | 34,300,000 | ||
Total | 295,397,000 | 281,902,000 | ||
Construction Financing [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 3,644,000 | $ 24,105,000 | ||
Maturity date, start | Dec. 31, 2017 | |||
Maturity date, end | Dec. 31, 2032 | |||
Weighted average interest rate | 8.00% | 4.84% | ||
Long-term debt maturity [Abstract] | ||||
Total | $ 3,644,000 | $ 24,105,000 | ||
Other Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 76,377,000 | $ 80,305,000 | ||
Maturity date, start | Jun. 30, 2017 | |||
Maturity date, end | Feb. 1, 2020 | |||
Weighted average interest rate | 5.33% | 5.16% | ||
Long-term debt maturity [Abstract] | ||||
Total | $ 76,377,000 | $ 80,305,000 | ||
Long-term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | 3,559,647,000 | |||
Unamortized debt discount | (25,538,000) | |||
Long-term debt maturity [Abstract] | ||||
2,016 | 154,114,000 | |||
2,017 | 1,231,670,000 | |||
2,018 | 135,169,000 | |||
2,019 | 473,817,000 | |||
2,020 | 332,866,000 | |||
Thereafter | 1,257,549,000 | |||
Total obligations | 3,585,185,000 | |||
Unamortized debt discount | (25,538,000) | |||
Less amount representing interest | 0 | |||
Total | 3,559,647,000 | |||
Assets held for sale [Member] | ||||
Long-term debt maturity [Abstract] | ||||
Long-term debt, less current portion | $ 60,500,000 | $ 60,800,000 |
Debt, Line of Credit Facility (
Debt, Line of Credit Facility (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, maximum borrowing capacity | $ 400 | |
Maturity date | Jan. 3, 2020 | |
Description of applicable margin calculation based on utilization percentage | Amounts drawn under the facility bear interest at 90-day LIBOR plus an applicable margin from a range of 2.50% to 3.50%. The applicable margin varies based on the percentage of the total commitment draw, with a 2.50% margin at utilization equal to or lower than 35%, a 3.25% margin at utilization greater than 35% but less than or equal to 50%, and a 3.50% margin at utilization greater than 50%. | |
Quarterly commitment fee | 0.25% | |
Line of credit outstanding | $ 0 | |
Swingline Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, maximum borrowing capacity | 50 | |
Secured and Unsecured Letter of Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, maximum borrowing capacity | 32.4 | |
Letters of Credit Outstanding, Amount | 64.5 | $ 64.4 |
Letter of credit sublimit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, maximum borrowing capacity | 50 | |
Option to increase maximum borrowing capacity [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, maximum borrowing capacity | 250 | |
Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, maximum borrowing capacity | 0 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, maximum borrowing capacity | $ 400 |
Debt, Financings (Details)
Debt, Financings (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($)Community | Mar. 31, 2016USD ($)Community | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Community | Dec. 31, 2014USD ($) | |
Financings [Line Items] | |||||
Number of communities securing mortgage notes | Community | 28 | ||||
Weighted average interest rate | 5.50% | ||||
Payments of Debt Extinguishment Costs | $ 0 | $ 44 | $ 4,101 | ||
Unamortized debt discount | $ (25,538) | (25,538) | |||
Debt modification and extinguishment costs | 9,170 | 7,020 | 6,387 | ||
Repayments of Debt | 209,900 | ||||
Payments of Debt Restructuring Costs | 9,200 | ||||
Extinguishment of Debt, Amount | 275,900 | ||||
Debt modification and extinguishment costs | $ (9,170) | (7,020) | $ (6,387) | ||
First mortgage loan issued in March 2015 [Member] | |||||
Financings [Line Items] | |||||
Proceeds from debt financing | $ 63,000 | ||||
Description of Variable Rate Basis | variable rate equal to 90-day LIBOR plus a margin of 325 basis points | ||||
Maturity date | Apr. 1, 2020 | ||||
Number of communities securing mortgage notes | Community | 6 | ||||
First mortgage loan issued in April 2015 [Member] | |||||
Financings [Line Items] | |||||
Proceeds from debt financing | $ 65,300 | ||||
Maturity date | May 1, 2027 | ||||
Number of communities securing mortgage notes | Community | 6 | ||||
Weighted average interest rate | 3.98% | ||||
First Mortgage Loan refinanced in August 2015 [Member] | |||||
Financings [Line Items] | |||||
Proceeds from debt financing | $ 226,400 | ||||
Description of Variable Rate Basis | one-month LIBOR plus a margin of 221 basis points | ||||
Term of loan | 10 years | ||||
Maturity date | Sep. 30, 2017 | ||||
Number of communities securing mortgage notes | Community | 21 | ||||
Weighted average interest rate | 4.80% | ||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 25.00% | ||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 75.00% | ||||
Unamortized debt premium | $ 10,400 | ||||
Payments of Debt Extinguishment Costs | 17,900 | ||||
Unamortized debt discount | 6,300 | ||||
First Mortgage Loan repaid in September 2015 [Member] | |||||
Financings [Line Items] | |||||
Proceeds from debt financing | $ 140,400 | ||||
Description of Variable Rate Basis | one-month LIBOR plus a margin of 223 basis points | ||||
Term of loan | 7 years | ||||
Maturity date | May 31, 2018 | ||||
Number of communities securing mortgage notes | Community | 18 | ||||
Unamortized debt premium | $ 7,600 | ||||
Payments of Debt Extinguishment Costs | 13,600 | ||||
Unamortized debt discount | 6,000 | ||||
Repayments of Debt | 122,300 | ||||
First Mortgage Loans repaid in the three months ended September 30, 2015 [Member] | |||||
Financings [Line Items] | |||||
Payments of Debt Restructuring Costs | $ 5,500 | ||||
First Mortgage Loans extinguished in August 2015 [Member] | |||||
Financings [Line Items] | |||||
Number of communities securing mortgage notes | Community | 7 | ||||
Debt modification and extinguishment costs | $ (1,200) | ||||
Debt modification and extinguishment costs | $ 1,200 | ||||
First Mortgage loan refinanced in March 2016 [Member] | |||||
Financings [Line Items] | |||||
Proceeds from debt financing | $ 100,000 | ||||
Maturity date | Jan. 1, 2023 | ||||
Number of communities securing mortgage notes | Community | 10 | ||||
Weighted average interest rate | 4.20% | ||||
Fixed interest rate first mortgage loan obtained in December 2016 [Member] | |||||
Financings [Line Items] | |||||
Proceeds from debt financing | $ 105,000 | ||||
Maturity date | Jan. 1, 2027 | ||||
Number of communities securing mortgage notes | Community | 6 | ||||
Weighted average interest rate | 4.65% | 4.65% | |||
Repayments of Debt | $ 164,400 | ||||
Variable interest rate first mortgage loan obtained in December 2016 [Member] | |||||
Financings [Line Items] | |||||
Proceeds from debt financing | $ 69,600 | ||||
Description of Variable Rate Basis | one-month LIBOR plus a margin of 258 basis points | ||||
Maturity date | Jan. 1, 2027 | ||||
Number of communities securing mortgage notes | Community | 6 |
Debt, Derivatives (Details)
Debt, Derivatives (Details) - Interest Rate Cap [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Current notional balance | $ 806,994,000 | |
Average fixed rate | 4.66% | |
Earliest maturity date | 30 days | |
Latest maturity date | 5 years 2 months 1 day | |
Estimated asset fair value (included in other assets) | $ 127,000 | $ 29,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses [Abstract] | ||
Salaries and wages | $ 102,025 | $ 80,291 |
Insurance reserves | 71,123 | 94,948 |
Real estate taxes | 34,002 | 37,206 |
Vacation | 42,411 | 44,421 |
Lease payable | 11,211 | 20,714 |
Interest | 12,948 | 12,940 |
Accrued Utilities | 10,582 | 11,949 |
Income taxes | 2,818 | 3,265 |
Other | 40,917 | 67,140 |
Total | $ 328,037 | $ 372,874 |
Commitments and Contingencies53
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)CommunityLease | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments and Contingencies [Abstract] | |||
Initial lease terms, minimum | 10 years | ||
Initial lease terms, maximum | 20 years | ||
Renewal options, minimum | 5 years | ||
Renewal options, maximum | 30 years | ||
Number of communities operated under long-term leases | Community | 539 | ||
Number of operating leases | Lease | 315 | ||
Number of capital and financing leases | Lease | 224 | ||
Remaining base lease terms, minimum | 1 year | ||
Remaining base lease terms, maximum | 16 years | ||
Schedule of facility operating lease expense [Abstract] | |||
Cash basis payment | $ 384,104 | $ 372,148 | $ 330,207 |
Straight-line (income) expense | 767 | 6,956 | 1,439 |
Amortization of (above) below market rent, net | (6,864) | (7,158) | (3,444) |
Amortization of deferred gain | (4,372) | (4,372) | (4,372) |
Facility lease expense | 373,635 | $ 367,574 | $ 323,830 |
Future minimum operating lease payments [Abstract] | |||
2,016 | 387,521 | ||
2,017 | 377,521 | ||
2,018 | 359,282 | ||
2,019 | 317,654 | ||
2,020 | 279,040 | ||
Thereafter | 1,222,392 | ||
Total | $ 2,943,410 |
Self-Insurance (Details)
Self-Insurance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Self-Insurance [Abstract] | ||
Loss Contingency, Receivable, Total | $ 22.8 | $ 41.5 |
Self insurance reserve | 184 | 248.4 |
Self insurance reserve, non-current | 112.9 | 153.5 |
Secured self-insured retention risk under workers' compensation program with cash | 12.4 | 15.6 |
Letters of credit associated to the secured self-insured retention risk | 59.5 | $ 49.8 |
Cash deposit to collateralize the insurance policy | 37.4 | |
Increase (Decrease) in Liability for Claims and Claims Adjustment Expense Reserve | $ 35.4 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Retirement Plans [Abstract] | |||
Matching Contributions Equal To Employees Contributions | 25.00% | 25.00% | 25.00% |
Maximum contributed compensation | 4.00% | 4.00% | 4.00% |
Additional matching contribution | 12.50% | 12.50% | 12.50% |
Expense related to retirement savings plan | $ 8.2 | $ 6.6 | $ 7.1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted stock awards [Roll Forward] | ||||||||
Granted (in shares) | 3,141,000 | 1,698,000 | 1,662,000 | |||||
Vested (in shares) | (1,242,000) | (1,275,000) | (1,185,000) | |||||
Cancelled or forfeited (in shares) | (745,000) | (521,000) | (298,000) | |||||
Ending balance (in shares) | 4,608,000 | 4,608,000 | 3,454,000 | 3,552,000 | 3,373,000 | |||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||||||
Beginning balance (in dollars per share) | $ 28.80 | $ 28.80 | $ 25.70 | $ 21.12 | ||||
Granted (in dollars per share) | 14.56 | 32.75 | 29.79 | |||||
Vested (in dollars per share) | 26.79 | 23.55 | 19.58 | |||||
Cancelled/forfeited (in dollars per share) | 24.75 | 18.68 | 21.02 | |||||
Ending balance (in dollars per share) | $ 20.29 | $ 20.29 | $ 28.80 | $ 25.70 | ||||
Unrecognized compensation cost related to nonvested share-based compensation arrangements granted | $ 58,200 | $ 58,200 | ||||||
Period over which cost is expected to be recognized | 2 years 6 months | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 3,141,000 | 1,698,000 | 1,662,000 | |||||
Percentage of estimated forfeitures, minimum | 0.00% | |||||||
Percentage of estimated forfeitures, maximum | 20.00% | |||||||
Restricted Stock [Member] | ||||||||
Restricted stock awards [Roll Forward] | ||||||||
Granted (in shares) | 121,000 | 54,000 | 111,000 | 2,855,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted (in shares) | 121,000 | 54,000 | 111,000 | 2,855,000 | ||||
Value per share minimum (in dollars per share) | $ 9.75 | $ 15.90 | $ 15.68 | $ 14.5 | ||||
Value per share maximum (in dollars per share) | $ 11.93 | $ 17.46 | $ 18.03 | $ 18.46 | ||||
Total value of restricted shares granted | $ 1,405 | $ 918 | $ 2,001 | $ 41,399 | ||||
Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage payroll deduction that each employee may deduct | 15.00% | |||||||
Percentage of closing market price paid for purchase of whole shares | 90.00% | |||||||
Number of shares reserved (in shares) | 1,800,000 | 1,800,000 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Nov. 01, 2016 | |
Share Repurchase Program [Abstract] | ||
Authorized share repurchased program amount | $ 100,000 | |
Repurchased shares (in shares) | 750,000 | |
Cost of repurchased shares | $ (9,640) | |
Amount available under the share repurchase program | $ 90,400 | $ 82,400 |
Treasury Stock Acquired, Average Cost Per Share | $ 12.83 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal [Abstract] | |||
Current | $ (12) | $ 49 | $ 1,367 |
Deferred | (3,248) | 95,259 | 182,371 |
Total Federal Tax Expense | (3,260) | 95,308 | 183,738 |
State [Abstract] | |||
Current | (2,118) | (3,099) | (2,433) |
Deferred (included in Federal above) | 0 | 0 | 0 |
Total State Tax Expense | (2,118) | (3,099) | (2,433) |
Total | $ (5,378) | 92,209 | 181,305 |
U.S. Federal statutory rate | 35.00% | ||
Tax benefit at U.S. statutory rate | $ 139,657 | 192,390 | 115,603 |
Credits | 6,163 | 3,937 | (2,222) |
Valuation allowance | (142,862) | (111,797) | 64,155 |
Goodwill Impairment | (10,789) | (7,856) | 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | (5,716) | 0 | 0 |
Non-deductible transaction costs | 0 | 0 | (6,870) |
Return to provision | (920) | (72) | 716 |
State taxes, net of federal income tax | 11,788 | 18,323 | 11,582 |
Meals and entertainment | (868) | (1,090) | (946) |
Other, net | (1,831) | (1,626) | (713) |
Deferred income tax assets [Abstract] | |||
Operating loss carryforwards | 319,948 | 282,075 | |
Accrued expenses | 109,283 | 144,691 | |
Prepaid revenue | 2,626 | 2,415 | |
Deferred lease liability | 93,358 | 94,105 | |
Capital and financing lease obligations | 862,038 | 872,002 | |
Tax credits | 49,550 | 40,974 | |
Intangible Assets | 20,272 | 22,522 | |
Deferred gain on sale leaseback | 4,233 | 5,661 | |
Total gross deferred income tax asset | 1,461,308 | 1,464,445 | |
Valuation allowance | (264,305) | (121,602) | |
Net deferred income tax assets | 1,197,003 | 1,342,843 | |
Deferred income tax liabilities [Abstract] | |||
Property, plant and equipment | (1,209,595) | (1,320,423) | |
Investment in unconsolidated ventures | (66,678) | (88,798) | |
Other | (1,376) | (2,673) | |
Total gross deferred income tax liability | (1,277,649) | (1,411,894) | |
Net deferred tax liability | (80,646) | (69,051) | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Income Tax Expense (Benefit) | 3,248 | (95,261) | (182,371) |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 64,200 | ||
Tax Credit Carryforward [Line Items] | |||
Tax credits, valuation allowance | 46,200 | 32,100 | |
Net operating loss, limitation of utilization | 92,800 | ||
Unrecognized tax benefits [Roll Forward] | |||
Balance at beginning of period | 30,236 | 30,195 | |
Additions for tax positions related to the current year | 0 | 0 | |
Additions for tax positions related to prior years | 30 | 50 | |
Reductions for tax positions related to prior years | (1,106) | (9) | |
Balance at end of period | 29,160 | 30,236 | 30,195 |
Total interest and penalties reserved | 100 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forwards | 1,033,000 | 930,400 | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carry forwards, valuation allowance | 218,100 | 89,500 | |
Emeritus [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Net operating loss, limitation of utilization | 53,900 | ||
Federal, State and Local [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ 94,100 | ||
Restricted Stock [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forwards | $ 126,700 | $ 126,700 |
Supplemental Disclosure of Ca59
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |||||||||||
Interest paid | $ 349,535 | $ 360,960 | $ 226,594 | ||||||||
Income taxes paid | 2,047 | 2,952 | 2,746 | ||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Assets held for sale | $ 97,843 | $ 110,620 | 97,843 | 110,620 | |||||||
Trade accounts payable | 77,356 | 128,006 | 77,356 | 128,006 | |||||||
Goodwill | 705,476 | 725,696 | 705,476 | 725,696 | |||||||
Asset impairment | 221,877 | $ 19,111 | $ 4,152 | $ 3,375 | 57,941 | $ 0 | $ 0 | $ 0 | 248,515 | 57,941 | 9,992 |
Gain on sale of assets | 7,218 | 1,270 | 446 | ||||||||
Acquisition of assets, net of related payables and cash received [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Cash and escrow deposits - restricted | 0 | 0 | 0 | ||||||||
Prepaid expenses and other current assets, net | 0 | (53,405) | (3,138) | ||||||||
Property, plant and equipment and leasehold intangibles, net | 19,457 | 198,558 | 80,330 | ||||||||
Capital Lease Obligations Incurred | 0 | 155,230 | 0 | ||||||||
Other intangible assets, net | (7,300) | (7,294) | (23,978) | ||||||||
Accrued expenses | 0 | 0 | 0 | ||||||||
Other liabilities | 0 | (315) | (20,568) | ||||||||
Long-term debt | 0 | (101,558) | 7,795 | ||||||||
Net | 12,157 | 191,216 | 40,441 | ||||||||
Capital and financing leases [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Property, plant and equipment and leasehold intangibles, net | 0 | 26,644 | 27,100 | ||||||||
Capital Lease Obligations Incurred | 0 | (23,738) | (27,100) | ||||||||
Other intangible assets, net | 0 | (5,202) | 0 | ||||||||
Other liabilities | 0 | 2,296 | 0 | ||||||||
Net | 0 | 0 | 0 | ||||||||
Formation of CCRC venture with HCP [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Other intangible assets, net | 0 | 0 | (56,829) | ||||||||
Property, plant and equipment and leasehold intangibles, net | 0 | 0 | (729,123) | ||||||||
Capital Lease Obligations Incurred | 0 | 0 | 27,085 | ||||||||
Other assets, net | 0 | 0 | (9,137) | ||||||||
Other liabilities | 0 | 0 | 1,514 | ||||||||
Transfer to Investments | 0 | 0 | 194,485 | ||||||||
Long-term debt | 0 | 0 | 170,416 | ||||||||
Refundable entrance fees and deferred revenue | 0 | 0 | 413,761 | ||||||||
Net | 0 | 0 | 12,172 | ||||||||
Formation of HCP 49 Venture [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Property, plant and equipment and leasehold intangibles, net | 0 | 0 | (525,446) | ||||||||
Capital Lease Obligations Incurred | 0 | 0 | 538,355 | ||||||||
Other liabilities | 0 | 0 | (9,034) | ||||||||
Transfer to Investments | 0 | 0 | 71,656 | ||||||||
Long-term debt | 0 | 0 | (67,640) | ||||||||
Net | 0 | 0 | 7,891 | ||||||||
Master lease amendments [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Property, plant and equipment and leasehold intangibles, net | 0 | 0 | 385,696 | ||||||||
Capital Lease Obligations Incurred | 0 | 0 | (217,022) | ||||||||
Other intangible assets, net | 0 | 0 | (174,012) | ||||||||
Other liabilities | 0 | 0 | 5,338 | ||||||||
Net | 0 | 0 | 0 | ||||||||
Proceeds from sale of assets, net [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Prepaid expenses and other current assets, net | (4,543) | 25,780 | 0 | ||||||||
Property, plant and equipment and leasehold intangibles, net | 0 | (82,953) | 0 | ||||||||
Capital Lease Obligations Incurred | 0 | 8,907 | 0 | ||||||||
Other liabilities | 3,281 | (960) | 0 | ||||||||
Assets held for sale | (289,452) | 0 | (289,452) | 0 | 0 | ||||||
Gain on sale of assets | (7,218) | 0 | 0 | ||||||||
Net | (297,932) | (49,226) | 0 | ||||||||
Assets held for sale [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Prepaid expenses and other current assets, net | (3,195) | 0 | |||||||||
Property, plant and equipment and leasehold intangibles, net | (262,711) | 0 | |||||||||
Assets held for sale | 278,675 | 278,675 | 0 | ||||||||
Goodwill | (28,568) | (28,568) | 0 | ||||||||
Asset impairment | 4,100 | 15,799 | 33,600 | 0 | |||||||
Net | 0 | 0 | |||||||||
Additions to property, plant and equipment and leasehold improvements [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Property, plant and equipment and leasehold intangibles, net | 300,113 | 448,682 | 304,245 | ||||||||
Trade accounts payable | $ 33,534 | (37,631) | 33,534 | (37,631) | 0 | ||||||
Net | 333,647 | 411,051 | 304,245 | ||||||||
Contribution to CCRC venture with HCP [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Property, plant and equipment and leasehold intangibles, net | 0 | (25,717) | 0 | ||||||||
Transfer to Investments | 0 | 7,422 | 0 | ||||||||
Long-term debt | 0 | 18,295 | 0 | ||||||||
Net | $ 0 | 0 | $ 0 | ||||||||
Assets Classified as Held for Sale as of December 31, 2015 [Member] | |||||||||||
Supplemental Schedule of Noncash Operating, Investing, and Financing Activities [Abstract] | |||||||||||
Prepaid expenses and other current assets, net | 0 | ||||||||||
Property, plant and equipment and leasehold intangibles, net | (113,592) | ||||||||||
Assets held for sale | 110,620 | 110,620 | |||||||||
Goodwill | $ (12,200) | (12,200) | |||||||||
Asset impairment | 15,172 | ||||||||||
Net | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Segment Information [Abstract] | ||||||||||||
Number of reportable segments | Segment | 5 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 1,208,868 | $ 1,246,126 | $ 1,258,830 | $ 1,263,156 | $ 1,235,702 | $ 1,238,841 | $ 1,238,184 | $ 1,247,881 | $ 4,976,980 | $ 4,960,608 | $ 3,831,706 | |
Segment operating income | 1,439,981 | 1,448,448 | 1,133,168 | |||||||||
General and administrative (including non-cash stock-based compensation expense) | 313,409 | 370,579 | 280,267 | |||||||||
Transaction costs | 3,990 | 8,252 | 66,949 | |||||||||
Facility lease expense | 373,635 | 367,574 | 323,830 | |||||||||
Depreciation and amortization | 520,402 | 733,165 | 537,035 | |||||||||
Asset impairment | 221,877 | 19,111 | 4,152 | 3,375 | 57,941 | 0 | 0 | 0 | 248,515 | 57,941 | 9,992 | |
Loss on facility lease termination | 11,113 | 76,143 | 0 | |||||||||
Income (loss) from operations | (178,369) | $ 47,645 | $ 58,287 | $ 41,354 | (8,873) | $ 3,663 | $ (43,123) | $ (116,873) | (31,083) | (165,206) | (84,905) | |
Total interest expense | 385,617 | 388,764 | 248,188 | |||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 300,113 | 448,682 | 304,245 | |||||||||
Assets by segment | 9,217,687 | 10,048,564 | 9,217,687 | 10,048,564 | ||||||||
Retirement Centers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 679,503 | 657,940 | 582,312 | ||||||||
Segment operating income | [2] | 294,530 | 285,257 | 248,883 | ||||||||
Facility lease expense | 120,272 | 114,738 | 98,321 | |||||||||
Depreciation and amortization | 94,049 | 104,063 | 86,188 | |||||||||
Total interest expense | 56,827 | 58,397 | 41,906 | |||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 59,978 | 161,986 | 76,285 | |||||||||
Assets by segment | 1,452,546 | 1,556,169 | 1,452,546 | 1,556,169 | ||||||||
Assisted Living [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 2,419,459 | 2,445,457 | 1,685,563 | ||||||||
Segment operating income | [2] | 876,817 | 877,303 | 608,489 | ||||||||
Facility lease expense | 193,670 | 197,452 | 162,575 | |||||||||
Depreciation and amortization | 308,639 | 489,933 | 317,918 | |||||||||
Total interest expense | 249,449 | 250,116 | 140,001 | |||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 156,732 | 220,893 | 107,037 | |||||||||
Assets by segment | 5,831,434 | 6,354,415 | 5,831,434 | 6,354,415 | ||||||||
CCRCs Rental [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 592,826 | 604,572 | 493,173 | ||||||||
Segment operating income | [2] | 133,409 | 150,495 | 121,661 | ||||||||
Facility lease expense | 51,727 | 47,937 | 51,523 | |||||||||
Depreciation and amortization | 66,431 | 87,754 | 60,175 | |||||||||
Total interest expense | 39,824 | 39,502 | 28,418 | |||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 37,800 | 54,864 | 42,412 | |||||||||
Assets by segment | 935,389 | 1,037,384 | 935,389 | 1,037,384 | ||||||||
CCRCs Entry Fee [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 0 | 0 | 202,414 | ||||||||
Segment operating income | [2] | 0 | 0 | 48,433 | ||||||||
Facility lease expense | 0 | 0 | 4,362 | |||||||||
Depreciation and amortization | 0 | 0 | 37,524 | |||||||||
Total interest expense | 0 | 0 | 7,530 | |||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 0 | 0 | 36,575 | |||||||||
Brookdale Ancillary Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 476,833 | 469,158 | 337,835 | ||||||||
Segment operating income | [2] | 64,463 | 75,210 | 63,463 | ||||||||
Facility lease expense | 0 | 0 | 890 | |||||||||
Depreciation and amortization | 4,075 | 7,451 | 4,764 | |||||||||
Total interest expense | 1,461 | 1,354 | 823 | |||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 1,576 | 4,061 | 1,805 | |||||||||
Assets by segment | 280,530 | 292,540 | 280,530 | 292,540 | ||||||||
Management Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1],[3] | 808,359 | 783,481 | 530,409 | ||||||||
Segment operating income | [2] | 70,762 | 60,183 | 42,239 | ||||||||
Facility lease expense | 7,966 | 7,447 | 6,159 | |||||||||
Depreciation and amortization | 47,208 | 43,964 | 30,466 | |||||||||
Total interest expense | 38,056 | 39,395 | 29,510 | |||||||||
Total expenditures for property, plan and equipment, and leasehold improvements | 44,027 | 6,878 | $ 40,131 | |||||||||
Assets by segment | $ 717,788 | $ 808,056 | $ 717,788 | $ 808,056 | ||||||||
[1] | All revenue is earned from external third parties in the United States. | |||||||||||
[2] | Segment operating income is defined as segment revenues less segment operating expenses (excluding depreciation and amortization). | |||||||||||
[3] | Management services segment revenue includes reimbursements for which the Company is the primary obligor of costs incurred on behalf of managed communities. |
Quarterly Results of Operatio61
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||
Revenues | $ 1,208,868 | $ 1,246,126 | $ 1,258,830 | $ 1,263,156 | $ 1,235,702 | $ 1,238,841 | $ 1,238,184 | $ 1,247,881 | $ 4,976,980 | $ 4,960,608 | $ 3,831,706 |
Asset impairment | 221,877 | 19,111 | 4,152 | 3,375 | 57,941 | 0 | 0 | 0 | 248,515 | 57,941 | 9,992 |
Income from operations | (178,369) | 47,645 | 58,287 | 41,354 | (8,873) | 3,663 | (43,123) | (116,873) | (31,083) | (165,206) | (84,905) |
Loss before income taxes | (269,169) | (47,569) | (35,368) | (47,152) | (104,835) | (99,132) | (137,400) | (208,997) | (399,258) | (550,364) | (330,731) |
Net income (loss) | (268,600) | (51,728) | (35,491) | (48,817) | (174,303) | (68,336) | (84,807) | (130,709) | (404,636) | (458,155) | (149,426) |
Net loss attributable to Brookdale Senior Living Inc. common stockholders | $ (268,487) | $ (51,685) | $ (35,450) | $ (48,775) | $ (174,259) | $ (68,220) | $ (84,547) | $ (130,451) | $ (404,397) | $ (457,477) | $ (148,990) |
Weighted average basic and diluted (loss) earnings per share (in dollars per share) | $ (1.45) | $ (0.28) | $ (0.19) | $ (0.26) | $ (0.94) | $ (0.37) | $ (0.46) | $ (0.71) | $ (2.18) | $ (2.48) | $ (1.01) |
VALUATION AND QUALIFYING ACCO62
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Tax Credit Carryforward [Line Items] | ||||||
Tax credits, valuation allowance | $ 46,200 | $ 32,100 | ||||
Allowance For Doubtful Accounts [Member] | ||||||
Valuation and qualifying accounts [Roll forward] | ||||||
Balance at Beginning of Period | 26,470 | 26,501 | $ 17,728 | |||
Acquisition of Emeritus | 0 | 0 | 11,087 | |||
Charged to costs and expenses | 30,632 | 25,132 | 20,509 | |||
Charged to other accounts | 2,680 | 2,135 | 771 | |||
Deductions | (32,738) | (27,298) | (23,594) | |||
Balance at End of Period | 27,044 | 26,470 | 26,501 | |||
Deferred Tax Valuation Allowance [Member] | ||||||
Valuation and qualifying accounts [Roll forward] | ||||||
Balance at Beginning of Period | 121,602 | 9,213 | 72,366 | |||
Acquisition of Emeritus | 0 | 0 | 1,002 | |||
Charged to costs and expenses | 142,862 | [1] | 111,797 | [2] | 0 | |
Charged to other accounts | 0 | 592 | [2] | 0 | ||
Deductions | (159) | [3] | 0 | (64,155) | [4] | |
Balance at End of Period | 264,305 | 121,602 | 9,213 | |||
State [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Valuation Allowance, Deferred Tax Asset, Change in Amount | $ (64,155) | |||||
Federal net operating losses [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 128,931 | 81,968 | ||||
Federal credits [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Valuation Allowance, Deferred Tax Asset, Change in Amount | $ 13,931 | $ 30,421 | ||||
[1] | Adjustment to valuation allowance for federal and state net operating losses and federal credits of $128,931 and $13,931, respectively. | |||||
[2] | Adjustment to valuation allowance for federal and state net operating losses and federal credits of $81,968 and $30,421, respectively. | |||||
[3] | Prior year adjustment related to state valuation allowance. | |||||
[4] | Adjustment to valuation allowance for federal and state net operating losses and federal credits of $(64,155). |