2017 Q3 Form 10-Q Financial Statement

#000150370717000020 Filed on August 11, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2017 Q2 2016 Q4
Revenue $74.40M $68.59M
YoY Change 5.92% 0.83%
Cost Of Revenue $42.98M $38.23M
YoY Change
Gross Profit $31.42M $30.36M
YoY Change
Gross Profit Margin 42.23% 44.26%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $24.45M $19.85M
YoY Change 129.01% 47.82%
% of Gross Profit 77.83% 65.39%
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $15.69M $14.76M
YoY Change 16.86% 13.19%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$25.92M -$14.49M
YoY Change 1238.58% 38.82%
Income Tax $15.00K $15.00K
% Of Pretax Income
Net Earnings -$44.39M -$21.59M -$57.54M
YoY Change 152.68% -22.52%
Net Earnings / Revenue -59.66% -31.48%
Basic Earnings Per Share
Diluted Earnings Per Share
COMMON SHARES
Basic Shares Outstanding 186.3M shares 186.0M shares 184.4M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q3 2017 Q2 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $27.40M $135.6M $223.1M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill $22.11M $22.11M $22.11M
YoY Change 0.0% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $345.9M $360.5M
YoY Change -32.55%
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $3.001B $2.942B $2.958B
YoY Change 18.24% 14.75% 47.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities
Total Liabilities $1.974B $1.844B $1.766B
YoY Change 55.87% 46.85% 195.99%
SHAREHOLDERS EQUITY
Retained Earnings -$667.6M -$591.4M -$480.5M
YoY Change 70.46% 72.44% 122.36%
Common Stock $1.685B $1.683B $1.668B
YoY Change 1.65% 2.29% 3.22%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.018B $1.092B $1.187B
YoY Change
Total Liabilities & Shareholders Equity $3.001B $2.942B $2.958B
YoY Change 18.24% 14.75% 47.75%

Cashflow Statement

Concept 2017 Q3 2017 Q2 2016 Q4
OPERATING ACTIVITIES
Net Income -$44.39M -$21.59M -$57.54M
YoY Change 152.68% -22.52%
Depreciation, Depletion And Amortization $24.45M $19.85M
YoY Change 129.01% 47.82%
Cash From Operating Activities
YoY Change
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities
YoY Change
NET CHANGE
Cash From Operating Activities
Cash From Investing Activities
Cash From Financing Activities
Net Change In Cash
YoY Change
FREE CASH FLOW
Cash From Operating Activities
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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us-gaap Equity Method Investment Dividends Or Distributions
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CY2017Q2 us-gaap Equity Method Investments
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1392000 USD
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580418000 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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0 USD
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0 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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522933000 USD
CY2015Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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0 USD
CY2016Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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553707000 USD
CY2017Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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553077000 USD
CY2016Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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522933000 USD
CY2017Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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0 USD
CY2016Q2 us-gaap Fair Value Option Changes In Fair Value Gain Loss1
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0 USD
CY2016 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Gain Loss Included In Earnings
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Gain Loss Included In Earnings
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0 USD
CY2016 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases
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549942000 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases
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0 USD
CY2015Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
0 USD
CY2017Q2 us-gaap Fair Value Option Changes In Fair Value Gain Loss1
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358000 USD
us-gaap Fair Value Option Changes In Fair Value Gain Loss1
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724000 USD
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CY2017Q2 us-gaap Finite Lived Intangible Asset Acquired In Place Leases
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74137000 USD
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us-gaap General And Administrative Expense
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16558000 USD
CY2017Q2 us-gaap General And Administrative Expense
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2848000 USD
us-gaap General And Administrative Expense
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5351000 USD
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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-27693000 USD
CY2017Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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-14490000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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7100000 USD
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15000 USD
us-gaap Income Tax Expense Benefit
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41000 USD
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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1728000 USD
us-gaap Increase Decrease In Advance Payments By Borrowers For Taxes And Insurance
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34000 USD
us-gaap Increase Decrease In Advance Payments By Borrowers For Taxes And Insurance
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0 USD
us-gaap Increase Decrease In Due To Related Parties
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us-gaap Increase Decrease In Due To Related Parties
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414000 USD
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1018000 USD
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-281000 USD
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-135000 USD
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-127000 USD
us-gaap Increase Decrease In Receivables
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-778000 USD
us-gaap Increase Decrease In Receivables
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902000 USD
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2402000 USD
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963000 USD
us-gaap Increase Decrease In Restricted Cash
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599000 USD
us-gaap Increase Decrease In Restricted Cash For Operating Activities
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1787000 USD
us-gaap Increase Decrease In Restricted Cash For Operating Activities
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377000 USD
us-gaap Increase Decrease In Unbilled Receivables
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686000 USD
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us-gaap Interest Expense
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us-gaap Interest Expense
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0 USD
us-gaap Investment Income Investment Expense
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0 USD
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4866000 USD
us-gaap Investment Income Investment Expense
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9743000 USD
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5005000 USD
us-gaap Investment Income Net
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10040000 USD
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3538000 USD
us-gaap Investment Income Net
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7039000 USD
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360534000 USD
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345895000 USD
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245454000 USD
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2958209000 USD
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0 USD
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1171499000 USD
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61460000 USD
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22431000 USD
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44250000 USD
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10058000 USD
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1469000 USD
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5349000 USD
CY2017Q2 us-gaap Minority Interest
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5410000 USD
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291000 USD
us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
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76000 USD
CY2016Q4 us-gaap Mortgage Loans On Real Estate Commercial And Consumer Net
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74558000 USD
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74602000 USD
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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25804000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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-124306000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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-11424000 USD
CY2016Q2 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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CY2017Q2 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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33000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
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70000 USD
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us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Cash Provided By Used In Operating Activities
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11039000 USD
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1580000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
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648211000 USD
us-gaap Noncash Or Part Noncash Acquisition Debt Assumed1
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0 USD
CY2016 us-gaap Noncontrolling Interest Increase From Business Combination
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291000 USD
us-gaap Noncontrolling Interest Increase From Business Combination
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67000 USD
CY2016Q2 us-gaap Noninterest Income
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us-gaap Noninterest Income
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us-gaap Noninterest Income
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493 unit
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62830000 USD
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67641000 USD
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1470000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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0 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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0 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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2601000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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1580000 USD
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0 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
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0 USD
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2601000 USD
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2913000 USD
us-gaap Payments For Repurchase Of Common Stock
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380000 USD
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380000 USD
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194000 USD
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469000 USD
CY2017Q2 us-gaap Other Sales Revenue Net
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953000 USD
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1530000 USD
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3371000 USD
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765000 USD
us-gaap Payments To Acquire Businesses And Interest In Affiliates
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us-gaap Payments To Acquire Businesses And Interest In Affiliates
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us-gaap Payments To Acquire Equity Method Investments
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18911000 USD
us-gaap Payments To Acquire Equity Method Investments
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6045000 USD
us-gaap Payments To Minority Shareholders
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0 USD
us-gaap Payments To Minority Shareholders
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76000 USD
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0 shares
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0 shares
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0 USD
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0 USD
CY2016Q4 us-gaap Prepaid Expense Current And Noncurrent
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33746000 USD
us-gaap Proceeds From Issuance Of Common Stock Dividend Reinvestment Plan
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33676000 USD
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67000 USD
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356000 USD
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3183000 USD
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us-gaap Proceeds From Sale And Collection Of Mortgage Notes Receivable
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us-gaap Profit Loss
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us-gaap Profit Loss
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us-gaap Provision For Doubtful Accounts
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651000 USD
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84877000 USD
CY2016Q4 us-gaap Real Estate Investment Property At Cost
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CY2016Q4 us-gaap Real Estate Investments
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1571980000 USD
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37586000 USD
us-gaap Real Estate Revenue Net
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56021000 USD
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36561000 USD
us-gaap Real Estate Revenue Net
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73682000 USD
CY2016Q2 us-gaap Realized Investment Gains Losses
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411000 USD
us-gaap Realized Investment Gains Losses
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411000 USD
CY2017Q2 us-gaap Realized Investment Gains Losses
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90000 USD
us-gaap Realized Investment Gains Losses
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118000 USD
us-gaap Repayments Of Notes Payable
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104000 USD
us-gaap Repayments Of Notes Payable
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1019000 USD
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28790000 USD
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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99000 USD
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19779 shares
CY2016Q2 us-gaap Share Price
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CY2016 us-gaap Stock Issued During Period Value Dividend Reinvestment Plan
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us-gaap Stock Issued During Period Value Dividend Reinvestment Plan
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33676000 USD
CY2016 us-gaap Stock Issued During Period Value New Issues
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296000 USD
CY2016 us-gaap Stock Issued During Period Value Share Based Compensation Gross
StockIssuedDuringPeriodValueShareBasedCompensationGross
166000 USD
us-gaap Stock Issued During Period Value Share Based Compensation Gross
StockIssuedDuringPeriodValueShareBasedCompensationGross
99000 USD
CY2016 us-gaap Stock Redeemed Or Called During Period Value
StockRedeemedOrCalledDuringPeriodValue
16138000 USD
us-gaap Stock Redeemed Or Called During Period Value
StockRedeemedOrCalledDuringPeriodValue
19247000 USD
CY2016 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
1800000 shares
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
2100000 shares
CY2016 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
16100000 USD
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
19200000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
1186625000 USD
CY2017Q2 us-gaap Stockholders Equity
StockholdersEquity
1091803000 USD
CY2015Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1405500000 USD
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1191974000 USD
CY2017Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1097213000 USD
CY2016Q4 us-gaap Tenant Improvements
TenantImprovements
5172000 USD
CY2017Q2 us-gaap Tenant Improvements
TenantImprovements
8332000 USD
CY2016Q2 us-gaap Tenant Reimbursements
TenantReimbursements
25244000 USD
us-gaap Tenant Reimbursements
TenantReimbursements
50285000 USD
CY2017Q2 us-gaap Tenant Reimbursements
TenantReimbursements
31080000 USD
us-gaap Tenant Reimbursements
TenantReimbursements
59827000 USD
CY2016 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
9.15
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
9.21
CY2017Q2 us-gaap Variable Interest Entity Nonconsolidated Carrying Amount Assets And Liabilities Net
VariableInterestEntityNonconsolidatedCarryingAmountAssetsAndLiabilitiesNet
345900000 USD
CY2016Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
181717986 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
180934241 shares
CY2017Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
186392469 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
186023359 shares
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Business and Organization</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">NorthStar Healthcare Income, Inc. (the &#8220;Company&#8221;) was formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate, directly or through joint ventures, with a focus on the mid-acuity senior housing sector, which the Company defines as assisted living (&#8220;ALF&#8221;), memory care (&#8220;MCF&#8221;), skilled nursing (&#8220;SNF&#8221;), independent living (&#8220;ILF&#8221;) facilities and continuing care retirement communities (&#8220;CCRC&#8221;), which may have independent living, assisted living, skilled nursing and memory care available on one campus. The Company also invests in other healthcare property types, including medical office buildings (&#8220;MOB&#8221;), hospitals, rehabilitation facilities and ancillary healthcare services businesses. The Company&#8217;s investments are predominantly in the United States, but it also selectively makes international investments. The Company was formed in October 2010 as a Maryland corporation and commenced operations in February 2013. The Company elected to be taxed as a real estate investment trust (&#8220;REIT&#8221;) under the Internal Revenue Code of 1986, as amended (the &#8220;Internal Revenue Code&#8221;), commencing with the taxable year ended December 31, 2013. The Company conducts its operations so as to continue to qualify as a REIT for U.S. federal income tax purposes.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s equity investments are generally healthcare properties, which are either structured as net leases to healthcare operators or operated through management agreements with independent third-party operators, where applicable through the REIT Investment Diversification and Empowerment Act of 2007 (&#8220;RIDEA&#8221;) structures that permit the Company, through taxable REIT subsidiaries (&#8220;TRS&#8221;), to have direct exposure to resident fee income and incur related operating expenses. The Company&#8217;s debt investments may consist of first mortgage loans and mezzanine loans. The Company&#8217;s real estate securities investments may include commercial mortgage-backed securities (&#8220;CMBS&#8221;), and other securities backed primarily by loans secured by healthcare properties. Refer to Note 6, &#8220;Healthcare-Related Securities&#8221; and Note 13, &#8220;Segment Reporting&#8221; for further discussion.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is externally managed and has </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> employees. Prior to January 11, 2017, the Company was managed by an affiliate of NorthStar Asset Management Group Inc. (NYSE: NSAM) (&#8220;NSAM&#8221;). Effective January 10, 2017, NSAM completed its previously announced mergers with Colony Capital, Inc. (&#8220;Colony&#8221;), NorthStar Realty Finance Corp. (&#8220;NorthStar Realty&#8221;) and Colony NorthStar, Inc. (&#8220;Colony NorthStar&#8221;), a wholly-owned subsidiary of NSAM, which the Company refers to as the mergers, with Colony NorthStar surviving the mergers and succeeding NSAM as the Company&#8217;s sponsor (the &#8220;Sponsor&#8221;). As a result of the mergers, the Sponsor became an internally-managed equity REIT, with a diversified real estate and investment management platform and publicly-traded on the NYSE under the ticker symbol &#8220;CLNS.&#8221; CNI NSHC Advisors, LLC, as successor to NSAM J-NSHC Ltd (the &#8220;Advisor&#8221;), is now a subsidiary of Colony NorthStar. The Advisor manages the Company&#8217;s day-to-day operations pursuant to an advisory agreement. The mergers had no material impact on the Company&#8217;s operations.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Colony NorthStar manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded REITs and registered investment companies.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Substantially all of the Company&#8217;s business is conducted through NorthStar Healthcare Income Operating Partnership, LP (the &#8220;Operating Partnership&#8221;). The Company is the sole general partner of the Operating Partnership. The limited partners of the Operating Partnership are NorthStar Healthcare Income Advisor, LLC (the &#8220;Prior Advisor&#8221;) and NorthStar Healthcare Income OP Holdings, LLC (the &#8220;Special Unit Holder&#8221;), each an affiliate of the Sponsor. The Prior Advisor invested </font><font style="font-family:inherit;font-size:10pt;">$1,000</font><font style="font-family:inherit;font-size:10pt;"> in the Operating Partnership in exchange for common units and the Special Unit Holder invested </font><font style="font-family:inherit;font-size:10pt;">$1,000</font><font style="font-family:inherit;font-size:10pt;"> in the Operating Partnership and was issued a separate class of limited partnership units (the &#8220;Special Units&#8221;), which are collectively recorded as non-controlling interests on the accompanying consolidated balance sheets as of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">. As the Company issued shares, it contributed substantially all of the proceeds from its continuous, public offerings to the Operating Partnership as a capital contribution. As of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company&#8217;s limited partnership interest in the Operating Partnership was </font><font style="font-family:inherit;font-size:10pt;">99.99%</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s charter authorizes the issuance of up to </font><font style="font-family:inherit;font-size:10pt;">400.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares of common stock with a par value of </font><font style="font-family:inherit;font-size:10pt;">$0.01</font><font style="font-family:inherit;font-size:10pt;"> per share and up to </font><font style="font-family:inherit;font-size:10pt;">50.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares of preferred stock with a par value of </font><font style="font-family:inherit;font-size:10pt;">$0.01</font><font style="font-family:inherit;font-size:10pt;"> per share. The board of directors of the Company is authorized to amend its charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company initially registered to offer up to </font><font style="font-family:inherit;font-size:10pt;">100.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares pursuant to its primary offering to the public (the &#8220;Initial Primary Offering&#8221;) and up to </font><font style="font-family:inherit;font-size:10pt;">10.5 million</font><font style="font-family:inherit;font-size:10pt;"> shares pursuant to its distribution reinvestment plan (the &#8220;Initial DRP&#8221;), which are herein collectively referred to as the Initial Offering. The Initial Offering (including </font><font style="font-family:inherit;font-size:10pt;">8.6 million</font><font style="font-family:inherit;font-size:10pt;"> shares reallocated from the Initial DRP) was completed on February 2, 2015 by raising gross proceeds of </font><font style="font-family:inherit;font-size:10pt;">$1.1 billion</font><font style="font-family:inherit;font-size:10pt;">. All of the shares initially registered for the Initial Offering were issued.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From </font><font style="font-family:inherit;font-size:10pt;">February&#160;6, 2015</font><font style="font-family:inherit;font-size:10pt;"> to January 19, 2016, the Company conducted a follow-on public offering of up to </font><font style="font-family:inherit;font-size:10pt;">$700.0 million</font><font style="font-family:inherit;font-size:10pt;"> in shares (the &#8220;Follow-on Offering&#8221;), which included up to </font><font style="font-family:inherit;font-size:10pt;">$500.0 million</font><font style="font-family:inherit;font-size:10pt;"> in shares pursuant to its follow-on primary offering (the &#8220;Follow-on Primary Offering&#8221;) and </font><font style="font-family:inherit;font-size:10pt;">$200.0 million</font><font style="font-family:inherit;font-size:10pt;"> in shares pursuant to its follow-on distribution reinvestment plan (the &#8220;Follow-on DRP&#8221;). The Company registered an additional </font><font style="font-family:inherit;font-size:10pt;">30.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares to be offered pursuant to its DRP beyond the completion of the Follow-on Offering and continues to offer such shares.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Initial Primary Offering and the Follow-on Primary Offering are collectively referred to as the Primary Offering and the distribution reinvestment plan, including but not limited to, the Initial DRP and Follow-on DRP, are collectively referred to as the DRP. Additionally, the Primary Offering and the Initial DRP and Follow-on DRP are collectively referred to as the Offering.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From inception through </font><font style="font-family:inherit;font-size:10pt;">August&#160;4, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company raised total gross proceeds of </font><font style="font-family:inherit;font-size:10pt;">$1.9 billion</font><font style="font-family:inherit;font-size:10pt;">, including </font><font style="font-family:inherit;font-size:10pt;">$171.8 million</font><font style="font-family:inherit;font-size:10pt;"> in DRP proceeds.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions.</font></div></div>

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