Segment Information

12 Months Ended

Dec. 31, 2013

Segment Information [Abstract]

Segment Information

20.       Segment Information

The Company currently has six reportable segments:  retirement centers; assisted living; CCRCs – rental; CCRCs – entry fee; 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.

Retirement Centers.  The Company's Retirement Centers segment includes owned or leased communities that are primarily designed for middle to upper income senior citizens age 75 and older who desire an upscale residential environment providing the highest quality of service.  The majority of the Company's retirement center communities consist of both independent living and assisted living units in a single community, which allows residents to "age-in-place" by providing them with a continuum of senior independent and assisted living services.

Assisted Living.  The Company's Assisted Living segment includes owned or leased communities that offer housing and 24-hour assistance with activities of daily life to mid-acuity frail and elderly residents.  Assisted living communities include both freestanding, multi-story communities and freestanding single story communities.  The Company also operates memory care communities, which are freestanding assisted living communities specially designed for residents with Alzheimer's disease and other dementias.

CCRCs - Rental.  The Company's CCRCs - Rental segment includes large owned or leased communities that offer a variety of living arrangements and services to accommodate all levels of physical ability and health.  Most of the Company's CCRCs have independent living, assisted living and skilled nursing available on one campus or within the immediate market, and some also include memory care/Alzheimer's units.

CCRCs - Entry Fee.  The communities in the Company's CCRCs - Entry Fee segment are similar to those in the Company's CCRCs - Rental segment but allow for residents in the independent living apartment units to pay a one-time upfront entrance fee, which is partially refundable in certain circumstances.  The amount of the entrance fee varies depending upon the type and size of the dwelling unit, the type of contract plan selected, whether the contract contains a lifecare benefit for the resident, the amount and timing of refund, and other variables.  In addition to the initial entrance fee, residents under all entrance fee agreements also pay a monthly service fee, which entitles them to the use of certain amenities and services.  Since entrance fees are received upon initial occupancy, the monthly fees are generally less than fees at a comparable rental community.

Brookdale Ancillary Services.  The Company's Brookdale Ancillary Services segment includes the outpatient therapy, home health and hospice services provided to residents of many of the Company's communities, to other senior living communities that the Company does not own or operate and to seniors living outside of the Company's communities.  The Brookdale Ancillary Services segment does not include the therapy services provided in the Company's skilled nursing units, which are included in the Company's CCRCs - Rental and CCRCs - Entry Fee segments.

Management Services.  The Company's management services segment includes communities operated by the Company pursuant to management agreements.  In some of the cases, the controlling financial interest in the community is held by third parties and, in other cases, the community is owned in a joint venture structure in which the Company has an ownership interest.  Under the management agreements for these communities, the Company receives management fees as well as reimbursed expenses, which represent the reimbursement of expenses it incurs on behalf of the owners.

The accounting policies of the Company's reportable segments are the same as those described in the summary of significant accounting policies.

The following table sets forth selected segment financial and operating data (dollars in thousands):

	For the Years Ended December 31,
	2013		2012		2011
Revenue(1):
Retirement Centers	$	526,284	$	503,902	$	473,842
Assisted Living		1,051,868		1,013,337		964,585
CCRCs - Rental		396,975		385,479		364,095
CCRCs - Entry Fee		297,756		285,701		282,020
Brookdale Ancillary Services		242,150		224,517		205,780
Management Services(2)		376,933		355,802		166,161
	$	2,891,966	$	2,768,738	$	2,456,483
Segment Operating Income(3):
Retirement Centers	$	222,282	$	205,585	$	198,439
Assisted Living		389,678		361,184		339,928
CCRCs - Rental		109,026		106,063		116,849
CCRCs - Entry Fee		76,393		61,405		68,550
Brookdale Ancillary Services		45,709		47,780		57,985
Management Services		31,125		30,786		13,595
		874,213		812,803		795,346
General and administrative (including non-cash stock-based compensation expense)		184,548		178,829		148,327
Facility lease expense:
Retirement Centers		91,258		102,273		106,515
Assisted Living		123,980		123,128		116,934
CCRCs - Rental		48,809		47,238		39,997
CCRCs - Entry Fee		7,470		7,214		7,435
Brookdale Ancillary Services		—		—		—
Corporate and Management Services		5,212		4,172		3,977
Depreciation and amortization:
Retirement Centers		64,353		61,060		60,275
Assisted Living		85,337		81,801		82,843
CCRCs - Rental		30,957		31,205		30,776
CCRCs - Entry Fee		55,842		52,840		54,794
Brookdale Ancillary Services		3,023		2,220		1,699

Corporate and Management Services		29,245		23,155			38,119
Asset impairment		12,891		27,677			16,892
Loss (gain) on acquisition		—		636			(1,982	)
Gain on facility lease termination		—		(11,584	)		—
Income from operations	$	131,288	$	80,939		$	88,745
Total interest expense:
Retirement Centers	$	31,286	$	29,025		$	28,444
Assisted Living		51,410		57,634			58,453
CCRCs - Rental		17,512		17,336			15,324
CCRCs - Entry Fee		11,911		13,792			20,316
Brookdale Ancillary Services		—		—			—
Corporate and Management Services		25,280		28,996			19,641
	$	137,399	$	146,783		$	142,178
Total expenditures for property, plant and equipment, and leasehold intangibles:
Retirement Centers	$	63,519	$	58,876		$	45,891
Assisted Living		95,829		68,675			43,955
CCRCs - Rental		27,134		21,916			20,615
CCRCs - Entry Fee		43,019		24,890			16,255
Brookdale Ancillary Services		1,855		6,037			2,715
Corporate and Management Services		26,171		28,018			30,700
	$	257,527	$	208,412		$	160,131

	As of December 31,
	2013		2012
Total assets:
Retirement Centers	$	1,258,294	$	1,269,125
Assisted Living		1,514,385		1,457,979
CCRCs - Rental		499,873		538,263
CCRCs - Entry Fee		960,708		956,658
Brookdale Ancillary Services		94,986		90,357
Corporate and Management Services		409,511		394,386
	$	4,737,757	$	4,706,768

(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 operating expenses (excluding depreciation and amortization).