Segment Information

3 Months Ended

Mar. 31, 2016

Segment Information [Abstract]

Segment Information

14.  Segment Information

As of March 31, 2016, 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.

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.

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 segment.

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 certain segment financial and operating data (dollars in thousands):

	Three Months Ended March 31,
	2016		2015
Revenue
Retirement Centers(1)	$	169,426	$	163,486
Assisted Living(1)		617,270		617,344
CCRCs - Rental(1)		152,260		155,991
Brookdale Ancillary Services(1)		122,192		115,411
Management Services(2)		202,008		195,649
	$	1,263,156	$	1,247,881
Segment Operating Income(3)
Retirement Centers	$	74,449	$	70,524
Assisted Living		220,810		223,506
CCRCs - Rental		35,469		38,571
Brookdale Ancillary Services		14,518		22,742
Management Services		16,780		15,097
		362,026		370,440
General and administrative (including non-cash stock-based compensation expense)		92,621		89,530
Transaction costs		850		6,742
Facility lease expense		96,689		94,471
Depreciation and amortization		127,137		220,427
Asset impairment		3,375		—
Loss on facility lease termination		—		76,143
Income (loss) from operations	$	41,354	$	(116,873	)

	As of
	March 31, 2016		December 31, 2015
Total assets
Retirement Centers	$	1,542,954	$	1,549,623
Assisted Living		6,294,576		6,347,178
CCRCs - Rental		1,020,500		1,035,371
Brookdale Ancillary Services		288,883		292,540
Corporate and Management Services		841,759		823,852
Total assets	$	9,988,672	$	10,048,564

(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 facility operating expenses (excluding depreciation and amortization).