Segment Information

6 Months Ended

Jun. 30, 2016

Segment Information [Abstract]

Segment Information

14.  Segment Information

As of June 30, 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 June 30,					Six Months Ended June 30,
	2016		2015			2016		2015
Revenue
Retirement Centers(1)	$	169,990	$	164,409		$	339,416	$	327,895
Assisted Living(1)		613,017		611,838			1,230,287		1,229,182
CCRCs - Rental(1)		148,225		151,561			300,485		307,552
Brookdale Ancillary Services(1)		123,336		116,170			245,528		231,581
Management Services(2)		204,262		194,206			406,270		389,855
	$	1,258,830	$	1,238,184		$	2,521,986	$	2,486,065
Segment Operating Income(3)
Retirement Centers	$	74,754	$	72,044		$	149,203	$	142,568
Assisted Living		234,085		223,359			454,895		446,865
CCRCs - Rental		33,594		35,860			69,063		74,431
Brookdale Ancillary Services		19,032		17,724			33,550		40,466
Management Services		18,186		14,839			34,966		29,936
		379,651		363,826			741,677		734,266
General and administrative (including non-cash stock-based compensation expense)		90,695		89,545			183,316		179,075
Transaction costs		441		421			1,291		7,163
Facility lease expense		92,682		91,338			189,371		185,809
Depreciation and amortization		133,394		225,645			260,531		446,072
Asset impairment		4,152		—			7,527		—
Loss on facility lease termination		—		—			—		76,143
Income (loss) from operations	$	58,287	$	(43,123	)	$	99,641	$	(159,996	)

	As of
	June 30, 2016		December 31, 2015
Total assets
Retirement Centers	$	1,537,614	$	1,556,169
Assisted Living		6,248,956		6,354,415
CCRCs - Rental		1,018,017		1,037,384
Brookdale Ancillary Services		281,392		292,540
Corporate and Management Services		786,353		808,056
Total assets	$	9,872,332	$	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).