Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

As of March 31, 2017, 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.

During the three months ended March 31, 2017, one community moved from the CCRCs-Rental segment to the Retirement Centers segment to more accurately reflect the underlying product offering of the community in the current period given changes to the community. The movement did not change the Company's reportable segments, but it did impact the revenues, expenses and assets reported within the two segments.  Revenue and expenses for the three months ended March 31, 2016 and total assets for the period ended December 31, 2016 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.

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 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 selected segment financial and operating data (in thousands):

	Three Months Ended March 31,
	2017		2016
Revenue
Retirement Centers (1)	$	172,620	$	169,426
Assisted Living (1)	590,537		617,270
CCRCs-Rental (1)	141,798		152,260
Brookdale Ancillary Services (1)	111,972		122,192
Management Services (2)	199,839		202,008
	$	1,216,766	$	1,263,156
Segment Operating Income (3)
Retirement Centers	$	74,002	$	74,449
Assisted Living	217,439		220,810
CCRCs-Rental	35,315		35,469
Brookdale Ancillary Services	15,629		14,518
Management Services	15,894		16,780
	358,279		362,026
General and administrative (including non-cash stock-based compensation expense)	65,560		92,621
Transaction costs	7,593		850
Facility lease expense	88,807		96,689
Depreciation and amortization	127,487		127,137
Asset impairment	20,706		3,375
Income from operations	$	48,126	$	41,354

	As of
	March 31, 2017		December 31, 2016
Total assets
Retirement Centers	$	1,301,173	$	1,452,546
Assisted Living	5,271,709		5,831,434
CCRCs-Rental	783,383		935,389
Brookdale Ancillary Services	280,301		280,530
Corporate and Management Services	601,522		717,788
Total assets	$	8,238,088	$	9,217,687

(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).