Summary
Health Care REIT, Inc. (now Welltower Inc.) filed a Form 8-K on May 7, 2009, primarily to update disclosures and reclassify certain assets and operations as discontinued. Pursuant to Statement of Financial Accounting Standards No. 144, assets sold or classified as held for sale in the first quarter of 2009 have been reclassified as discontinued operations. This reclassification impacts prior period reporting of rental income, interest expense, and depreciation related to these assets, though it had no effect on net income attributable to common stockholders. Additionally, the company adopted three new accounting pronouncements (FASB Statement No. 160, FSP APB 14-1, and FSP EITF 03-6-1) effective January 1, 2009, requiring retrospective application. These changes, along with responses to SEC comments on its 2008 Form 10-K, necessitated updates to various sections of its prior filings, including "Properties," "Selected Financial Data," "Management's Discussion and Analysis," and "Financial Statements and Supplementary Data." The filing attaches updated information as Exhibit 99.1.
Key Highlights
- 1Reclassification of certain assets and operations as discontinued operations for periods prior to Q1 2009, as per SFAS No. 144.
- 2Adoption of new accounting standards FASB Statement No. 160, FSP APB 14-1, and FSP EITF 03-6-1, effective January 1, 2009, with retrospective application.
- 3Updates to "Properties" section to include additional details on occupancy rates, average annualized income rates, and lease expirations, addressing SEC comments.
- 4Revisions made to "Selected Financial Data," "Management's Discussion and Analysis," and "Financial Statements and Supplementary Data" sections based on accounting standard adoption and SEC feedback.
- 5No impact on net income attributable to common stockholders resulted from the reclassification of discontinued operations.
- 6Exhibit 99.1 contains the updated information, including Financial Statement Schedules III and IV, which are unchanged from the prior 10-K.