transition costs, totaling $4.0 million and $3.6 million for the
three months ended September 30, 2007 and 2006, respectively, and
$11.0 million and $10.2 million for the nine months ended September
30, 2007 and 2006, respectively.
(2) Includes the receipt of refundable and non-refundable entrance fees.
Cash From Facility Operations
Cash From Facility Operations is a measurement of liquidity that is not calculated in accordance with GAAP and should not be considered in isolation as a substitute for cash flows provided by or used in operations, as determined in accordance with GAAP. We define Cash From Facility Operations as net cash provided by (used in) operating activities adjusted for changes in operating assets and liabilities, deferred interest and fees added to principal, refundable entrance fees received, entrance fee refunds disbursed, other and recurring capital expenditures. Recurring capital expenditures include expenditures capitalized in accordance with GAAP that are funded from Cash From Facility Operations. Amounts excluded from recurring capital expenditures consist primarily of unusual or non-recurring capital items, facility purchases and/or major renovations that are funded using financing proceeds and/or proceeds from the sale of facilities that are held for sale.
We believe Cash From Facility Operations is useful to investors in evaluating our liquidity for the following reasons:
-- It provides an assessment of our ability to facilitate meeting current
financial and liquidity goals.
-- To assess our ability to:
(i) service our outstanding indebtedness;
(ii) pay dividends; and
(iii) make regular recurring capital expenditures to maintain and
improve our facilities.
The table below reconciles Cash From Facility Operations from net cash
provided by operating activities for the th
|SOURCE Brookdale Senior Living Inc.|
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