XML 45 R29.htm IDEA: XBRL DOCUMENT v3.22.0.1
Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
As of December 31, 2021, the Company has three reportable segments: Independent Living; Assisted Living and Memory Care; and CCRCs. 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. Prior to July 1, 2021, the Company had an additional reportable segment, Health Care Services. On July 1, 2021, the Company sold 80% of its equity in its Health Care Services segment, as described in Note 4. For periods beginning July 1, 2021, the results and financial position of its Health Care Services segment were deconsolidated from the Company's consolidated financial statements and its 20% equity interest in the HCS Venture is accounted for under the equity method of accounting as of that date.

As of December 31, 2021, the Company's Management Services operating segment is no longer identified as a reportable segment as a result of the reduction in the number of communities it manages, which has reduced the operating segment's revenue, operating income, and assets below the reporting threshold. Management services operations are reported within the All Other category. All prior period segment disclosures reflect this reportable segment change.

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 to live in a residential setting that feels like home, without the efforts of ownership. 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 broad continuum of senior independent and assisted living services to accommodate their changing needs.
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 living for the Company's residents. The Company's assisted living and memory care communities include both freestanding, multi-story communities, as well as smaller, 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 a broad spectrum of physical ability and healthcare needs. Most of the Company's CCRCs have independent living, assisted living, memory care, and skilled nursing available on one campus or within the immediate area.

All Other. All Other includes communities operated by the Company pursuant to management agreements. Under the management agreements for these communities, the Company receives management fees as well as reimbursement of expenses it incurs on behalf of the owners.

Health Care Services. The Company's former Health Care Services segment included the home health, hospice, and outpatient therapy services provided to residents of many of its communities and to seniors living outside its communities. The Health Care Services segment did 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.

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 data.
For the Years Ended December 31,
(in thousands)202120202019
Revenue and other operating income:
Independent Living (1)(2)
$477,050 $524,421 $544,558 
Assisted Living and Memory Care (1)(2)
1,595,684 1,753,861 1,815,938 
CCRCs (1)(2)
306,213 340,337 402,175 
All Other (3)
202,043 531,879 847,157 
Health Care Services (1)(2)
177,269 389,697 447,260 
Total revenue and other operating income$2,758,259 $3,540,195 $4,057,088 
Segment operating income:(4)
Independent Living$146,108 $182,813 $203,741 
Assisted Living and Memory Care294,320 428,601 518,636 
CCRCs34,109 53,180 72,072 
All Other20,598 130,690 57,108 
Health Care Services5,816 1,863 24,987 
Total segment operating income500,951 797,147 876,544 
General and administrative expense (including non-cash stock-based compensation expense)184,916 206,575 219,289 
Facility operating lease expense:
Independent Living42,162 60,445 81,680 
Assisted Living and Memory Care111,117 137,900 157,823 
CCRCs15,932 20,406 24,248 
Corporate and All Other5,147 5,282 5,915 
Depreciation and amortization:
Independent Living74,922 70,803 81,745 
Assisted Living and Memory Care200,677 224,790 222,574 
CCRCs37,891 38,426 44,163 
Corporate and All Other23,783 24,458 28,704 
Health Care Services340 749 2,247 
Asset impairment:
Independent Living3,483 31,317 1,812 
Assisted Living and Memory Care14,384 61,640 32,229 
CCRCs4,790 12,413 4,983 
Corporate and All other346 1,938 2,664 
Health Care Services— — 7,578 
Loss (gain) on facility operating lease termination, net(2,003)(2,303)3,388 
Income (loss) from operations$(216,936)$(97,692)$(44,498)
Total interest expense:
Independent Living$45,209 $44,682 $46,713 
Assisted Living and Memory Care121,785 134,015 166,097 
CCRCs18,756 19,928 27,426 
Corporate and All Other9,390 10,154 8,105 
$195,140 $208,779 $248,341 
Total capital expenditures for property, plant and equipment, and leasehold intangibles:
Independent Living$36,992 $47,889 $78,831 
Assisted Living and Memory Care105,177 90,354 157,845 
CCRCs19,086 18,709 33,535 
Corporate and All Other21,463 23,638 24,506 
Health Care Services— 515 484 
$182,718 $181,105 $295,201 

As of December 31,
(in thousands)20212020
Total assets:
Independent Living$1,349,341 $1,419,838 
Assisted Living and Memory Care3,601,144 3,787,611 
CCRCs693,386 738,121 
Corporate and All Other766,596 723,010 
Health Care Services— 233,178 
Total assets$6,410,467 $6,901,758 

(1)All revenue and other operating income is earned from external third parties in the United States.
(2)Includes other operating income recognized for the credits or grants pursuant to the employee retention credit, Provider Relief Fund, and other government sources, as described in Note 3. Allocations to the applicable segment generally reflect the credits earned by the segment, the segment’s receipt and acceptance of the grant, or the segment’s proportional utilization of the grant. Other operating income by segment is as follows.
For the Years Ended December 31,
(in thousands)20212020
Independent Living1,512 $11,823 
Assisted Living and Memory Care5,963 62,585 
CCRCs1,788 18,454 
Health Care Services3,105 22,887 
Total other operating income$12,368 $115,749 
(3)All Other revenue and other operating income includes management fees and reimbursements of costs incurred on behalf of managed communities. For the years ended December 31, 2021, 2020, and 2019, revenue and other operating income includes $17.2 million, $67.2 million, and $329.9 million of revenue earned from unconsolidated ventures in which the Company had or has an ownership interest.
(4)Segment operating income is defined as segment revenues and other operating income less segment facility operating expenses (excluding facility depreciation and amortization) and costs incurred on behalf of managed communities.