Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information [Abstract]

Segment Information

18.       Segment Information

As of December, 31, 2015 the Company has five reportable segments:  Retirement Centers; Assisted Living; CCRCs – Rental; 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.

Prior to August 29, 2014, the Company had an additional reportable segment, CCRCs - Entry Fee. On August 29, 2014, the Company contributed all but two of the legacy Brookdale entry fee CCRCs to the CCRC Venture, at which time the contributed CCRCs were deconsolidated.  The results of the entry fee CCRCs contributed to the CCRC Venture are reported in the CCRCs - Entry Fee segment for the time periods prior to being contributed to the CCRC Venture. The results of the two legacy Brookdale CCRCs that were not contributed to the CCRC Venture are included in the CCRCs - Entry Fee segment for the six month period ended June 30, 2014 and the CCRCs - Rental segment for periods subsequent to June 30, 2014, based on how operating results are being reviewed by the chief operating decision maker following the creation of the CCRC Venture. The CCRC Venture is accounted for under the equity method of accounting. See Note 4 for more information about the Company's entry into the CCRC Venture.

During 2014, two communities were moved from the Retirement Centers segment to the Assisted Living segment and one community was moved from the Retirement Centers segment to the CCRCs – Rental segment to more accurately reflect the underlying product offering of the communities. The movement did not change the Company's reportable segments, but it did impact the revenues and expenses reported within the Retirement Centers, Assisted Living and CCRCs - Rental segments. Revenue and expenses for the year ended December 31, 2013 have not been recast.

Retirement Centers.  The Company's Retirement Centers segment includes owned or leased communities that are primarily designed for middle to upper income seniors generally 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. As of December 31, 2015 and 2014, the CCRCs - Rental segment also includes three entry fee CCRCs.

CCRCs - Entry Fee.  Prior to August 29, 2014, the Company had an additional reportable segment, CCRCs - Entry Fee.  The communities in the Company's former CCRCs - Entry Fee segment are similar to rental CCRCs 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. 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.

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 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 in Note 2.

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

	For the Years Ended December 31,
	2015		2014		2013
Revenue:
Retirement Centers(1)	$	657,940	$	582,312	$	526,284
Assisted Living(1)		2,445,457		1,685,563		1,051,868
CCRCs - Rental(1)		604,572		493,173		396,975
CCRCs - Entry Fee(1)		—		202,414		297,756
Brookdale Ancillary Services(1)		469,158		337,835		242,150
Management Services(2)		783,481		530,409		376,933
	$	4,960,608	$	3,831,706	$	2,891,966
Segment Operating Income(3):
Retirement Centers	$	285,257	$	248,883	$	222,282
Assisted Living		877,303		608,489		389,678
CCRCs - Rental		150,495		121,661		109,026
CCRCs - Entry Fee		—		48,433		76,393
Brookdale Ancillary Services		75,210		63,463		45,709
Management Services		60,183		42,239		31,125
		1,448,448		1,133,168		874,213
General and administrative (including non-cash stock-based compensation expense)		370,579		280,267		180,627
Transaction costs		8,252		66,949		3,921
Facility lease expense:
Retirement Centers		114,738		98,321		91,258
Assisted Living		197,452		162,575		123,980
CCRCs - Rental		47,937		51,523		48,809
CCRCs - Entry Fee		—		4,362		7,470
Brookdale Ancillary Services		—		890		—
Corporate and Management Services		7,447		6,159		5,212
Depreciation and amortization:
Retirement Centers		104,063		86,188		64,353
Assisted Living		489,933		317,918		85,337
CCRCs - Rental		87,754		60,175		30,957
CCRCs - Entry Fee		—		37,524		55,842
Brookdale Ancillary Services		7,451		4,764		3,023

Corporate and Management Services		43,964			30,466			29,245
Asset impairment		57,941			9,992			12,891
Loss on facility lease termination		76,143			—			—
(Loss) income from operations	$	(165,206	)	$	(84,905	)	$	131,288
Total interest expense:
Retirement Centers	$	58,397		$	41,906		$	31,286
Assisted Living		250,116			140,001			51,410
CCRCs - Rental		39,502			28,418			17,512
CCRCs - Entry Fee		—			7,530			11,911
Brookdale Ancillary Services		1,354			823			—
Corporate and Management Services		39,395			29,510			25,280
	$	388,764		$	248,188		$	137,399
Total capital expenditures for property, plant and equipment, and leasehold intangibles:
Retirement Centers	$	161,986		$	76,285		$	63,519
Assisted Living		220,893			107,037			95,829
CCRCs - Rental		54,864			42,412			27,134
CCRCs - Entry Fee		—			36,575			43,019
Brookdale Ancillary Services		4,061			1,805			1,855
Corporate and Management Services		6,878			40,131			26,171
	$	448,682		$	304,245		$	257,527

	As of December 31,
	2015		2014
Total assets:
Retirement Centers	$	1,556,169	$	1,600,007
Assisted Living		6,354,415		6,577,821
CCRCs - Rental		1,037,384		1,027,854
Brookdale Ancillary Services		292,540		275,618
Corporate and Management Services		808,056		936,161
	$	10,048,564	$	10,417,461

(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).