Segment Information

As of June 30, 2018 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:



	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands)	2018			2017		2018			2017
Revenue:
Retirement Centers ⁽¹⁾	$	159,293		$	162,248	$	317,690		$	334,868
Assisted Living ⁽¹⁾	522,027			547,430		1,054,307			1,137,967
CCRCs-Rental ⁽¹⁾	104,796			114,202		209,865			256,000
Brookdale Ancillary Services ⁽¹⁾	109,853			110,190		220,373			222,162
Management Services ⁽²⁾	259,231			252,402		540,199			452,241
	$	1,155,200		$	1,186,472	$	2,342,434		$	2,403,238
Segment Operating Income: ⁽³⁾
Retirement Centers	$	65,134		$	67,297	$	129,556		$	141,299
Assisted Living	169,737			186,921		346,275			404,360
CCRCs-Rental	23,819			24,344		48,482			59,659
Brookdale Ancillary Services	10,203			13,103		18,521			28,732
Management Services	17,071			22,442		35,752			38,336
	285,964			314,107		578,586			672,386

General and administrative (including non-cash stock-based compensation expense)	60,314			67,090		137,024			132,650
Transaction costs	2,593			3,339		7,318			10,932
Facility lease expense	81,960			84,690		162,360			173,497
Depreciation and amortization	116,116			120,887		230,371			248,374
Goodwill and asset impairment	16,103			1,559		446,466			22,265
Loss on facility lease termination and modification	146,467			6,368		146,467			6,368
Income (loss) from operations	$	(137,589	)	$	30,174	$	(551,420	)	$	78,300



	As of
(in thousands)	June 30, 2018		December 31, 2017
Total assets:
Retirement Centers	$	1,298,989	$	1,266,076
Assisted Living	3,957,957		4,535,114
CCRCs-Rental	723,655		667,234
Brookdale Ancillary Services	244,692		257,257
Corporate and Management Services	504,354		949,768
	$	6,729,647	$	7,675,449


(1)	All revenue is earned from external third parties in the United States.


(2)	Management services segment revenue includes management fees and reimbursements 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.