Segment Information

As of December 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.

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 and Alzheimer's units.

Brookdale Ancillary Services. The Company's Brookdale Ancillary Services segment includes the home health, hospice and outpatient therapy 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:



	For the Years Ended December 31,
(in thousands)	2017		2016		2015
Revenue:
Retirement Centers ⁽¹⁾	$	654,196	$	679,503	$	657,940
Assisted Living ⁽¹⁾	2,210,688		2,419,459		2,445,457
CCRCs-Rental ⁽¹⁾	468,994		592,826		604,572
Brookdale Ancillary Services ⁽¹⁾	446,262		476,833		469,158
Management Services ⁽²⁾	966,976		808,359		783,481
	$	4,747,116	$	4,976,980	$	4,960,608
Segment Operating Income ⁽³⁾:
Retirement Centers	$	271,417	$	294,530	$	285,257
Assisted Living	749,058		876,817		877,303
CCRCs-Rental	106,162		133,409		150,495



Brookdale Ancillary Services	51,348			64,463			75,210
Management Services	75,845			70,762			60,183
	1,253,830			1,439,981			1,448,448
General and administrative (including non-cash stock-based compensation expense)	255,446			313,409			370,579
Transaction costs	22,573			3,990			8,252
Facility lease expense:
Retirement Centers	117,131			120,272			114,738
Assisted Living	185,971			193,670			197,452
CCRCs-Rental	29,464			51,727			47,937
Brookdale Ancillary Services	—			—			—
Corporate and Management Services	7,155			7,966			7,447
Depreciation and amortization:
Retirement Centers	95,226			94,049			104,063
Assisted Living	290,344			308,639			489,933
CCRCs-Rental	44,294			66,431			87,754
Brookdale Ancillary Services	3,723			4,075			7,451
Corporate and Management Services	48,490			47,208			43,964
Goodwill and asset impairment:
Retirement Centers	2,968			31,384			209
Assisted Living	342,788			132,389			46,179
CCRCs-Rental	18,083			46,329			10,654
Brookdale Ancillary Services	14,599			1,596			899
Corporate and Management Services	31,344			36,817			—
Loss on facility lease termination	14,276			11,113			76,143
Income (loss) from operations	$	(270,045	)	$	(31,083	)	$	(165,206	)

Total interest expense:
Retirement Centers	$	55,436		$	56,827		$	58,397
Assisted Living	207,861			249,449			250,116
CCRCs-Rental	27,665			39,824			39,502
Brookdale Ancillary Services	892			1,461			1,354
Corporate and Management Services	34,300			38,056			39,395
	$	326,154		$	385,617		$	388,764

Total capital expenditures for property, plant and equipment, and leasehold intangibles:
Retirement Centers	$	47,309		$	59,978		$	161,986
Assisted Living	119,717			156,732			220,893
CCRCs-Rental	24,297			37,800			54,864
Brookdale Ancillary Services	755			1,576			4,061
Corporate and Management Services	29,398			44,027			6,878
	$	221,476		$	300,113		$	448,682



	As of December 31,
(in thousands)	2017		2016
Total assets:
Retirement Centers	$	1,266,076	$	1,452,546
Assisted Living	4,535,114		5,831,434
CCRCs-Rental	667,234		935,389
Brookdale Ancillary Services	257,257		280,530
Corporate and Management Services	949,768		717,788
	$	7,675,449	$	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) and costs incurred on behalf of managed communities.