Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information [Abstract]

Segment Information

18.       Segment Information

As of December, 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.

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.

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, 2016, 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, as well as education and wellness programs, provided to residents of many of the Company's communities and to seniors living outside of the Company's communities. The Brookdale Ancillary Services segment does not include the inpatient 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,
	2016			2015			2014
Revenue:
Retirement Centers(1)	$	679,503		$	657,940		$	582,312
Assisted Living(1)		2,419,459			2,445,457			1,685,563
CCRCs - Rental(1)		592,826			604,572			493,173
CCRCs - Entry Fee(1)		—			—			202,414
Brookdale Ancillary Services(1)		476,833			469,158			337,835
Management Services(2)		808,359			783,481			530,409
	$	4,976,980		$	4,960,608		$	3,831,706
Segment Operating Income(3):
Retirement Centers	$	294,530		$	285,257		$	248,883
Assisted Living		876,817			877,303			608,489
CCRCs - Rental		133,409			150,495			121,661
CCRCs - Entry Fee		—			—			48,433
Brookdale Ancillary Services		64,463			75,210			63,463
Management Services		70,762			60,183			42,239
		1,439,981			1,448,448			1,133,168
General and administrative (including non-cash stock-based compensation expense)		313,409			370,579			280,267
Transaction costs		3,990			8,252			66,949
Facility lease expense:
Retirement Centers		120,272			114,738			98,321
Assisted Living		193,670			197,452			162,575
CCRCs - Rental		51,727			47,937			51,523
CCRCs - Entry Fee		—			—			4,362
Brookdale Ancillary Services		—			—			890
Corporate and Management Services		7,966			7,447			6,159
Depreciation and amortization:
Retirement Centers		94,049			104,063			86,188
Assisted Living		308,639			489,933			317,918
CCRCs - Rental		66,431			87,754			60,175
CCRCs - Entry Fee		—			—			37,524
Brookdale Ancillary Services		4,075			7,451			4,764
Corporate and Management Services		47,208			43,964			30,466
Asset impairment		248,515			57,941			9,992
Loss on facility lease termination		11,113			76,143			—
Income (loss) income from operations	$	(31,083	)	$	(165,206	)	$	(84,905	)
Total interest expense:
Retirement Centers	$	56,827		$	58,397		$	41,906
Assisted Living		249,449			250,116			140,001
CCRCs - Rental		39,824			39,502			28,418
CCRCs - Entry Fee		—			—			7,530
Brookdale Ancillary Services		1,461			1,354			823
Corporate and Management Services		38,056			39,395			29,510
	$	385,617		$	388,764		$	248,188
Total capital expenditures for property, plant and equipment, and leasehold intangibles:
Retirement Centers	$	59,978		$	161,986		$	76,285
Assisted Living		156,732			220,893			107,037
CCRCs - Rental		37,800			54,864			42,412
CCRCs - Entry Fee		—			—			36,575
Brookdale Ancillary Services		1,576			4,061			1,805
Corporate and Management Services		44,027			6,878			40,131
	$	300,113		$	448,682		$	304,245

	As of December 31,
	2016		2015
Total assets:
Retirement Centers	$	1,452,546	$	1,556,169
Assisted Living		5,831,434		6,354,415
CCRCs - Rental		935,389		1,037,384
Brookdale Ancillary Services		280,530		292,540
Corporate and Management Services		717,788		808,056
	$	9,217,687	$	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).