2017 Q4 Form 10-Q Financial Statement

#000136060417000093 Filed on October 25, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q3
Revenue $107.8M $176.0M $118.3M
YoY Change 2.37% 48.72% 13.85%
Cost Of Revenue $40.60M $40.60M $37.50M
YoY Change 8.85% 8.27% 6.53%
Gross Profit $67.20M $66.40M $66.20M
YoY Change -1.18% 0.3% 7.64%
Gross Profit Margin 62.34% 37.73% 55.94%
Selling, General & Admin $8.300M $8.000M $8.700M
YoY Change -4.6% -8.05% 40.32%
% of Gross Profit 12.35% 12.05% 13.14%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $37.40M $33.60M $32.80M
YoY Change 18.35% 2.44% 10.44%
% of Gross Profit 55.65% 50.6% 49.55%
Operating Expenses $45.60M $43.90M $40.70M
YoY Change 6.79% 7.86% 15.3%
Operating Profit $21.60M $40.63M $25.18M
YoY Change -14.62% 61.38% 8.68%
Interest Expense -$13.40M -$13.80M -$13.60M
YoY Change -2.9% 1.47% -9.33%
% of Operating Profit -62.04% -33.97% -54.02%
Other Income/Expense, Net $0.00 -$27.00K $95.00K
YoY Change -100.0% -128.42% 31.94%
Pretax Income -$37.20M $3.200M $11.90M
YoY Change -170.72% -73.11% -29.17%
Income Tax
% Of Pretax Income
Net Earnings -$37.20M $13.76M $6.427M
YoY Change -170.99% 114.14% -0.56%
Net Earnings / Revenue -34.51% 7.82% 5.43%
Basic Earnings Per Share $0.07 $0.05
Diluted Earnings Per Share -$301.9K $0.07 $0.04
COMMON SHARES
Basic Shares Outstanding 204.9M shares 200.7M shares 138.8M shares
Diluted Shares Outstanding 204.8M shares 143.1M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.200M $197.0M $12.60M
YoY Change 14.81% 1463.49% 48.24%
Cash & Equivalents $100.4M $9.410M $17.94M
Short-Term Investments
Other Short-Term Assets $58.00M $65.00M $44.00M
YoY Change -10.49% 47.73% 18.92%
Inventory
Prepaid Expenses
Receivables $20.00M $14.00M $9.000M
Other Receivables $95.00M $94.00M $84.00M
Total Short-Term Assets $6.200M $197.0M $12.60M
YoY Change -95.66% 1463.49% 48.24%
LONG-TERM ASSETS
Property, Plant & Equipment $2.941B $2.739B $2.767B
YoY Change 5.52% -1.01% 9.2%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $68.58M $68.30M
YoY Change
Other Assets $33.10M $8.800M $14.70M
YoY Change -36.59% -40.14% 129.69%
Total Long-Term Assets $6.443B $6.217B $3.703B
YoY Change 78.73% 67.86% 16.78%
TOTAL ASSETS
Total Short-Term Assets $6.200M $197.0M $12.60M
Total Long-Term Assets $6.443B $6.217B $3.703B
Total Assets $6.450B $6.414B $3.716B
YoY Change 72.09% 72.6% 16.87%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $71.00M $69.90M $71.10M
YoY Change -9.32% -1.69% 8.05%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $71.00M $69.90M $71.10M
YoY Change -9.32% -1.69% 8.05%
LONG-TERM LIABILITIES
Long-Term Debt $1.284B $1.166B $1.239B
YoY Change 1.54% -5.89% -10.29%
Other Long-Term Liabilities $48.80M $45.50M $47.00M
YoY Change 9.42% -3.19% -28.68%
Total Long-Term Liabilities $1.333B $1.212B $1.286B
YoY Change 1.81% -5.79% -11.13%
TOTAL LIABILITIES
Total Short-Term Liabilities $71.00M $69.90M $71.10M
Total Long-Term Liabilities $1.333B $1.212B $1.286B
Total Liabilities $3.079B $3.149B $1.903B
YoY Change 56.89% 65.41% 9.3%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $4.511B $4.388B $2.755B
YoY Change 63.65% 59.28% 18.24%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.279B $3.176B $1.712B
YoY Change
Total Liabilities & Shareholders Equity $6.450B $6.414B $3.716B
YoY Change 72.09% 72.6% 16.87%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income -$37.20M $13.76M $6.427M
YoY Change -170.99% 114.14% -0.56%
Depreciation, Depletion And Amortization $37.40M $33.60M $32.80M
YoY Change 18.35% 2.44% 10.44%
Cash From Operating Activities $50.40M $45.40M $42.90M
YoY Change 3.07% 5.83% -5.71%
INVESTING ACTIVITIES
Capital Expenditures -$230.1M -$35.30M -$120.0M
YoY Change 174.26% -70.58% 222.58%
Acquisitions
YoY Change
Other Investing Activities -$11.90M $800.0K -$9.500M
YoY Change -113.66% -108.42% -125.13%
Cash From Investing Activities -$241.8M -$34.70M -$129.6M
YoY Change -7656.25% -73.23% -21700.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 700.0K 175.1M 90.20M
YoY Change -106.93% 94.12% -295.66%
NET CHANGE
Cash From Operating Activities 50.40M 45.40M 42.90M
Cash From Investing Activities -241.8M -34.70M -129.6M
Cash From Financing Activities 700.0K 175.1M 90.20M
Net Change In Cash -190.7M 185.8M 3.500M
YoY Change -554.05% 5208.57% -36664354965853680.0%
FREE CASH FLOW
Cash From Operating Activities $50.40M $45.40M $42.90M
Capital Expenditures -$230.1M -$35.30M -$120.0M
Free Cash Flow $280.5M $80.70M $162.9M
YoY Change 111.22% -50.46% 96.98%

Facts In Submission

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us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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us-gaap Costs And Expenses
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16552000 USD
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us-gaap Depreciation And Amortization
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70491000 USD
us-gaap Depreciation And Amortization
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172900000 USD
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0 USD
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541000 USD
CY2017Q3 us-gaap Derivative Assets
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952000 USD
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CY2017Q3 us-gaap Derivative Collateral Obligation To Return Cash
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0 USD
CY2016Q4 us-gaap Derivative Collateral Obligation To Return Securities
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0 USD
CY2017Q3 us-gaap Derivative Collateral Obligation To Return Securities
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0 USD
CY2016Q4 us-gaap Derivative Collateral Right To Reclaim Cash
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0 USD
CY2017Q3 us-gaap Derivative Collateral Right To Reclaim Cash
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0 USD
CY2016Q4 us-gaap Derivative Collateral Right To Reclaim Securities
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0 USD
CY2017Q3 us-gaap Derivative Collateral Right To Reclaim Securities
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0 USD
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952000 USD
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541000 USD
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952000 USD
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1920000 USD
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1441000 USD
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1920000 USD
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1441000 USD
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0 USD
CY2017Q3 us-gaap Derivative Liability Fair Value Gross Asset
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0 USD
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1500000 USD
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36885000 USD
us-gaap Direct Costs Of Leased And Rented Property Or Equipment
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105299000 USD
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56331000 USD
us-gaap Direct Costs Of Leased And Rented Property Or Equipment
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us-gaap Dividends
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us-gaap Dividends
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us-gaap Earnings Per Share Diluted
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934000 USD
us-gaap Income Taxes Paid
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997000 USD
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3598000 USD
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0.50
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0 USD
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68303000 USD
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256305000 USD
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299398000 USD
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277803000 USD
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P16Y1M6D
us-gaap Finite Lived Intangible Assets Remaining Amortization Period1
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P19Y2M12D
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4000 USD
us-gaap Gain Loss On Cash Flow Hedge Ineffectiveness Net
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31000 USD
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1306000 USD
us-gaap Gain Loss On Interest Rate Derivative Instruments Not Designated As Hedging Instruments
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0 USD
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0 USD
us-gaap Gain Loss On Interest Rate Derivative Instruments Not Designated As Hedging Instruments
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884000 USD
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0 USD
us-gaap Gain Loss On Sale Of Properties
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4212000 USD
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0 USD
us-gaap Gain Loss On Sale Of Properties
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3000 USD
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us-gaap General And Administrative Expense
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us-gaap General And Administrative Expense
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25178000 USD
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5100000 USD
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0 USD
us-gaap Impairment Of Real Estate
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0 USD
us-gaap Impairment Of Real Estate
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0 USD
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0 USD
us-gaap Impairment Of Real Estate
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5100000 USD
us-gaap Impairment Of Real Estate
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5093000 USD
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0 USD
us-gaap Income Loss From Equity Method Investments
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0 USD
CY2017Q3 us-gaap Income Loss From Equity Method Investments
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318000 USD
us-gaap Income Loss From Equity Method Investments
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381000 USD
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0 USD
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us-gaap Interest Expense Debt
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us-gaap Interest Income Operating
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us-gaap Interest Paid
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us-gaap Limited Liability Company Llc Or Limited Partnership Lp Managing Member Or General Partner Ownership Interest
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1784000000 USD
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2913300000 USD
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2222264000 USD
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303933000 USD
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100827000 USD
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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228542000 USD
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us-gaap Net Income Loss
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29361000 USD
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us-gaap Net Income Loss
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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830000 USD
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194000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
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715000 USD
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0 USD
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22025000 USD
us-gaap Noncash Or Part Noncash Acquisition Debt Assumed1
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25176000 USD
us-gaap Operating Income Loss
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205000 USD
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491000 USD
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3039000 USD
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16902000 USD
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0 USD
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68839000 USD
us-gaap Payments To Acquire Productive Assets
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34064000 USD
us-gaap Payments To Acquire Productive Assets
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42990000 USD
us-gaap Payments To Acquire Real Estate
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532527000 USD
us-gaap Payments To Acquire Real Estate
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2357570000 USD
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0 USD
us-gaap Payments To Develop Real Estate Assets
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19163000 USD
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CY2017Q3 us-gaap Preferred Stock Shares Issued
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0 shares
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0 shares
CY2017Q3 us-gaap Preferred Stock Shares Outstanding
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0 shares
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0 USD
CY2017Q3 us-gaap Preferred Stock Value
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0 USD
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55904000 USD
CY2017Q3 us-gaap Prepaid Expense And Other Assets
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65383000 USD
us-gaap Proceeds From Issuance Of Common Stock
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418891000 USD
us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Senior Long Term Debt
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347725000 USD
us-gaap Proceeds From Issuance Of Senior Long Term Debt
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900000000 USD
us-gaap Proceeds From Issuance Of Unsecured Debt
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200000000 USD
us-gaap Proceeds From Issuance Of Unsecured Debt
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0 USD
us-gaap Proceeds From Lines Of Credit
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513000000 USD
us-gaap Proceeds From Lines Of Credit
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515000000 USD
us-gaap Proceeds From Sale Of Real Estate
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23368000 USD
us-gaap Proceeds From Sale Of Real Estate
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4746000 USD
CY2016Q3 us-gaap Profit Loss
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6639000 USD
us-gaap Profit Loss
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30191000 USD
CY2017Q3 us-gaap Profit Loss
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13957000 USD
us-gaap Profit Loss
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22105000 USD
us-gaap Provision For Doubtful Accounts
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508000 USD
us-gaap Provision For Doubtful Accounts
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635000 USD
CY2016Q4 us-gaap Real Estate Investment Property Accumulated Depreciation
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817593000 USD
CY2017Q3 us-gaap Real Estate Investment Property Accumulated Depreciation
RealEstateInvestmentPropertyAccumulatedDepreciation
973566000 USD
CY2016Q4 us-gaap Real Estate Investment Property At Cost
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CY2017Q3 us-gaap Real Estate Investment Property At Cost
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CY2016Q4 us-gaap Real Estate Investment Property Net
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3503020000 USD
CY2017Q3 us-gaap Real Estate Investment Property Net
RealEstateInvestmentPropertyNet
6004285000 USD
CY2016Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
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4653000 USD
CY2017Q3 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
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4692000 USD
us-gaap Repayments Of Lines Of Credit
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704000000 USD
us-gaap Repayments Of Lines Of Credit
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528000000 USD
us-gaap Repayments Of Secured Debt
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98453000 USD
us-gaap Repayments Of Secured Debt
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75444000 USD
us-gaap Repayments Of Unsecured Debt
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155000000 USD
us-gaap Repayments Of Unsecured Debt
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0 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents
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13814000 USD
CY2017Q3 us-gaap Restricted Cash And Cash Equivalents
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17469000 USD
CY2016Q3 us-gaap Revenues
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118340000 USD
us-gaap Revenues
Revenues
338889000 USD
CY2017Q3 us-gaap Revenues
Revenues
175994000 USD
us-gaap Revenues
Revenues
440220000 USD
us-gaap Share Based Compensation
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5136000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
5493000 USD
us-gaap Stock Issued1
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71754000 USD
us-gaap Stock Issued1
StockIssued1
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us-gaap Stock Issued During Period Value New Issues
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417163000 USD
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us-gaap Stock Repurchased And Retired During Period Value
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2425000 USD
us-gaap Stock Repurchased And Retired During Period Value
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3413000 USD
CY2016Q4 us-gaap Stockholders Equity
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1687274000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
3175565000 USD
CY2015Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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1406958000 USD
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1803253000 USD
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1780417000 USD
CY2017Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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3260307000 USD
CY2016Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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143138000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
138314000 shares
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
204795000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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177410000 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
138807000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
134905000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
200674000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
173189000 shares
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:13px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Description of Business </font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">HTA, a Maryland corporation, and </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, a Delaware limited partnership, were incorporated or formed, as applicable, on </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">April&#160;20, 2006</font><font style="font-family:inherit;font-size:10pt;">. HTA operates as a REIT and is the general partner of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, which is the operating partnership. As of </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">September 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, HTA owned a </font><font style="font-family:inherit;font-size:10pt;">98.0%</font><font style="font-family:inherit;font-size:10pt;"> partnership interest and other limited partners, including some of our directors, executive officers and their affiliates, owned the remaining partnership interest (including the LTIP Units) in </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">. As the sole general partner of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, HTA has the full, exclusive and complete responsibility for </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">&#8217;s day-to-day management and control. HTA operates in an umbrella partnership REIT structure in which </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;"> and its subsidiaries hold substantially all of the assets. HTA&#8217;s only material asset is its ownership of partnership interests of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">. As a result, HTA does not conduct business itself, other than acting as the sole general partner of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, issuing public equity from time to time and guaranteeing certain debts of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">. </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;"> conducts the operations of the business and issues publicly-traded debt, but has no publicly-traded equity. </font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">HTA is the largest publicly-traded REIT focused on medical office buildings (&#8220;MOBs&#8221;) in the U.S. as measured by the gross leasable area (&#8220;GLA&#8221;) of our MOBs. HTA conducts substantially all of its operations through HTALP. We invest in MOBs that we believe will serve the future of healthcare delivery, and MOBs that are primarily located on health system campuses, near university medical centers, or in core community outpatient locations. We also focus on our key markets that have certain demographic and macro-economic trends and where we can utilize our institutional property management and leasing platform to generate strong tenant relationships and operating cost efficiencies. Our primary objective is to maximize stockholder value with disciplined growth through strategic investments that provide an attractive risk-adjusted return for our stockholders by consistently increasing our cash flow. In pursuing this objective, we: (i) seek internal growth through proactive asset management, leasing and property management oversight; (ii)&#160;target accretive acquisitions and developments of MOBs in markets with attractive demographics that complement our existing portfolio; and (iii) actively manage our balance sheet to maintain flexibility with conservative leverage.&#160; Additionally, from time to time we consider, on an opportunistic basis, significant portfolio acquisitions that we believe fit our core business and could enhance our existing portfolio. HTA has qualified to be taxed as a REIT for federal income tax purposes and intends to continue to be taxed as a REIT.</font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Since 2006, we have invested </font><font style="font-family:inherit;font-size:10pt;">$7.0 billion</font><font style="font-family:inherit;font-size:10pt;"> to create a portfolio of MOBs and other healthcare assets consisting of approximately </font><font style="font-family:inherit;font-size:10pt;">24.2 million</font><font style="font-family:inherit;font-size:10pt;"> square feet of GLA throughout the U.S. As of </font><font style="font-family:inherit;font-size:10pt;">September 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, our portfolio included </font><font style="font-family:inherit;font-size:10pt;">$2.24 billion</font><font style="font-family:inherit;font-size:10pt;"> of investments, net of development credits received at closing, in connection with our acquisition of the Duke MOB business (the &#8220;Duke Acquisition&#8221;), which includes a </font><font style="font-family:inherit;font-size:10pt;">50%</font><font style="font-family:inherit;font-size:10pt;"> ownership interest in an unconsolidated joint venture for </font><font style="font-family:inherit;font-size:10pt;">$68.8 million</font><font style="font-family:inherit;font-size:10pt;"> as of the date of acquisition. Our only remaining obligations related to the Duke Acquisition are the potential acquisition of a land parcel in Miami, FL and a single property in Texas that are each currently excluded from our purchase obligations due to current outstanding physical condition issues.</font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;font-size:10pt;">September 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, approximately </font><font style="font-family:inherit;font-size:10pt;">96%</font><font style="font-family:inherit;font-size:10pt;"> of our portfolio, based on GLA, was located on the campuses of, or aligned with, nationally or regionally recognized healthcare systems. Our portfolio is diversified geographically across </font><font style="font-family:inherit;font-size:10pt;">33</font><font style="font-family:inherit;font-size:10pt;"> states, with no state having more than </font><font style="font-family:inherit;font-size:10pt;">19%</font><font style="font-family:inherit;font-size:10pt;"> of our total GLA as of </font><font style="font-family:inherit;font-size:10pt;">September 30, 2017</font><font style="font-family:inherit;font-size:10pt;">. We are concentrated in 20 to 25 key markets that are experiencing higher economic and demographic trends than other markets, on average, that we expect will drive demand for MOBs. Approximately </font><font style="font-family:inherit;font-size:10pt;">92%</font><font style="font-family:inherit;font-size:10pt;"> of our portfolio, based on GLA, is located in the top </font><font style="font-family:inherit;font-size:10pt;">75</font><font style="font-family:inherit;font-size:10pt;"> metropolitan statistical areas (&#8220;MSAs&#8221;) with Atlanta, Boston, Dallas, Houston and Tampa being our largest markets by investment. </font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our principal executive office is located at 16435 North Scottsdale Road, Suite 320, Scottsdale, Arizona, 85254.</font></div></div>

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