Segment Information

The Company has five reportable segments: Independent Living; Assisted Living and Memory Care; CCRCs; Health Care 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.

Independent Living. The Company's Independent Living segment includes owned or leased communities that are primarily designed for middle to upper income seniors who desire an upscale residential environment providing the highest quality of service. The majority of the Company's independent living communities consist of both independent 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 and Memory Care. The Company's Assisted Living and Memory Care 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 and memory care communities include both freestanding, multi-story communities and freestanding, single story communities. The Company also provides memory care services at freestanding memory care communities that are specially designed for residents with Alzheimer's and other dementias.

CCRCs. The Company's CCRCs 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 services.

Health Care Services. The Company's Health Care 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 Health Care Services segment does not include the skilled nursing and inpatient healthcare services provided in the Company's skilled nursing units, which are included in the Company's CCRCs 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)	2018		2017		2016
Revenue:
Independent Living ⁽¹⁾	$	599,977	$	654,196	$	679,503
Assisted Living and Memory Care ⁽¹⁾	1,995,851		2,210,688		2,419,459
CCRCs ⁽¹⁾	416,408		468,994		592,826
Health Care Services ⁽¹⁾	436,975		446,262		476,833
Management Services ⁽²⁾	1,082,215		966,976		808,359
	$	4,531,426	$	4,747,116	$	4,976,980
Segment Operating Income ⁽³⁾:
Independent Living	$	240,609	$	271,417	$	294,530
Assisted Living and Memory Care	628,982		749,058		876,817
CCRCs	92,212		106,162		133,409
Health Care Services	34,080		51,348		64,463
Management Services	71,986		75,845		70,762
	1,067,869		1,253,830		1,439,981
General and administrative (including non-cash stock-based compensation expense)	250,495		255,446		313,409
Transaction costs	8,980		22,573		3,990



Facility lease expense:
Independent Living	93,496			117,131			120,272
Assisted Living and Memory Care	178,716			185,971			193,670
CCRCs	24,856			29,464			51,727
Health Care Services	—			—			—
Corporate and Management Services	6,226			7,155			7,966
Depreciation and amortization:
Independent Living	91,899			95,226			94,049
Assisted Living and Memory Care	261,365			290,344			308,639
CCRCs	53,551			44,294			66,431
Health Care Services	3,201			3,723			4,075
Corporate and Management Services	37,439			48,490			47,208
Goodwill and asset impairment:
Independent Living	2,013			2,968			31,384
Assisted Living and Memory Care	436,892			342,788			132,389
CCRCs	6,669			18,083			46,329
Health Care Services	9,055			14,599			1,596
Corporate and Management Services	35,264			31,344			36,817
Loss on facility lease termination and modification, net	162,001			14,276			11,113
Income (loss) from operations	$	(594,249	)	$	(270,045	)	$	(31,083	)

Total interest expense:
Independent Living	$	58,783		$	55,436		$	56,827
Assisted Living and Memory Care	174,459			207,861			249,449
CCRCs	26,746			27,665			39,824
Health Care Services	—			892			1,461
Corporate and Management Services	20,281			34,300			38,056
	$	280,269		$	326,154		$	385,617

Total capital expenditures for property, plant and equipment, and leasehold intangibles:
Independent Living	$	51,510		$	47,309		$	59,978
Assisted Living and Memory Care	125,750			119,717			156,732
CCRCs	26,615			24,297			37,800
Health Care Services	902			755			1,576
Corporate and Management Services	16,033			29,398			44,027
	$	220,810		$	221,476		$	300,113



	As of December 31,
(in thousands)	2018		2017
Total assets:
Independent Living	$	1,104,774	$	1,266,076
Assisted Living and Memory Care	3,684,170		4,535,114
CCRCs	707,819		667,234
Health Care Services	254,950		257,257
Corporate and Management Services	715,547		949,768
	$	6,467,260	$	7,675,449


(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.