Segment Information

3 Months Ended

Mar. 31, 2020

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 disease 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 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 following table sets forth selected segment financial and operating data:



	Three Months Ended March 31,
(in thousands)	2020			2019
Revenue:
Independent Living ⁽¹⁾	$	135,862		$	135,694
Assisted Living and Memory Care ⁽¹⁾	457,479			458,526
CCRCs ⁽¹⁾	94,547			103,727
Health Care Services ⁽¹⁾	94,819			111,532
Management Services ⁽²⁾	231,432			232,565
Total revenue	$	1,014,139		$	1,042,044
Segment operating income: ⁽³⁾
Independent Living	$	51,414		$	52,876
Assisted Living and Memory Care	132,001			140,699
CCRCs	19,931			21,637
Health Care Services	(9,121		)	8,173
Management Services	108,715			15,743
Total segment operating income	302,940			239,128
General and administrative expense (including non-cash stock-based compensation expense)	54,595			56,311
Facility operating lease expense	64,481			68,668
Depreciation and amortization	90,738			96,888
Asset impairment	78,226			391
Loss (gain) on facility lease termination and modification, net	—			209
Income (loss) from operations	$	14,900		$	16,661



	As of
(in thousands)	March 31, 2020		December 31, 2019
Total assets:
Independent Living	$	1,533,986	$	1,441,652
Assisted Living and Memory Care	4,103,793		4,157,610
CCRCs	809,344		742,809
Health Care Services	257,277		256,715
Corporate and Management Services	797,295		595,647
Total assets	$	7,501,695	$	7,194,433


(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 expense (excluding depreciation and amortization) and costs incurred on behalf of managed communities.