Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

As of March 31, 2022, 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. 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.

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.

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 following tables set forth selected segment financial data.

	Three Months Ended March 31,
(in thousands)	2022		2021
Revenue and other operating income:
Independent Living(1)(2)	$	124,406	$	120,146
Assisted Living and Memory Care(1)(2)	432,488		392,042
CCRCs(1)(2)	80,456		73,463
All Other	40,470		74,360
Health Care Services(1)(2)	—		89,434
Total revenue and other operating income	$	677,820	$	749,445

	Three Months Ended March 31,
(in thousands)	2022		2021
Segment operating income:(3)
Independent Living	$	37,684	$	37,329
Assisted Living and Memory Care	76,863		71,433
CCRCs	10,039		7,608
All Other	3,329		8,566
Health Care Services	—		2,403
Total segment operating income	127,915		127,339
General and administrative expense (including non-cash stock-based compensation expense)	45,126		49,943
Facility operating lease expense	41,564		44,418
Depreciation and amortization	85,684		83,891
Asset impairment	9,075		10,677
Income (loss) from operations	$	(53,534)	$	(61,590)

	As of
(in thousands)	March 31, 2022		December 31, 2021
Total assets:
Independent Living(4)	$	1,324,425	$	1,349,341
Assisted Living and Memory Care	3,573,911		3,601,144
CCRCs	686,480		693,386
Corporate and All Other	710,161		766,596
Total assets	$	6,294,977	$	6,410,467

(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 and other government sources. 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.

	Three Months Ended March 31,
(in thousands)	2022		2021
Other operating income:
Independent Living	$	2	$	1,364
Assisted Living and Memory Care	356		5,104
CCRCs	18		1,684
Health Care Services	—		2,583
Total other operating income	$	376	$	10,735

(3)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.

(4)The Company's Independent Living segment had a carrying amount of goodwill of $27.3 million as of both March 31, 2022 and December 31, 2021.