Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

20. Segment Information

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, as described in Note 3.

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 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 tables set forth selected segment financial data.

	For the Years Ended December 31,
(in thousands)	2023		2022		2021
Revenue and other operating income:
Independent Living (1)(2)	$	564,499	$	518,699	$	477,050
Assisted Living and Memory Care (1)(2)	1,968,440		1,815,722		1,595,684
CCRCs (1)(2)	333,404		331,577		306,213
All Other (3)	149,486		159,381		202,043
Health Care Services (1)(2)	—		—		177,269
Total revenue and other operating income	3,015,829		2,825,379		2,758,259
Segment operating income:(4)
Independent Living	184,645		158,950		146,108
Assisted Living and Memory Care	502,317		379,958		294,320
CCRCs	49,581		43,485		34,109
All Other	10,161		12,020		20,598
Health Care Services	—		—		5,816
Total segment operating income	746,704		594,413		500,951

	For the Years Ended December 31,
(in thousands)	2023		2022		2021
General and administrative expense (including non-cash stock-based compensation expense)	178,894		168,594		184,916
Facility operating lease expense:
Independent Living	39,114		39,700		42,162
Assisted Living and Memory Care	146,166		106,961		111,117
CCRCs	12,943		13,883		15,932
Corporate and All Other	4,187		4,750		5,147
Depreciation and amortization:
Independent Living	83,637		79,521		74,922
Assisted Living and Memory Care	196,994		207,344		200,677
CCRCs	36,951		38,039		37,891
Corporate and All Other	25,130		22,540		23,783
Health Care Services	—		—		340
Asset impairment:
Independent Living	1,647		10,893		3,483
Assisted Living and Memory Care	11,574		11,613		14,384
CCRCs	1,368		5,970		4,790
Corporate and All Other	25,983		1,142		346
Loss (gain) on sale of communities, net	(36,296)		(73,850)		—
Loss (gain) on facility operating lease termination, net	—		—		(2,003)
Income (loss) from operations	$	18,412	$	(42,687)	$	(216,936)
Total interest expense:
Independent Living	$	61,624	$	48,788	$	45,209
Assisted Living and Memory Care	141,330		133,139		121,785
CCRCs	24,889		21,251		18,756
Corporate and All Other	10,431		1,539		9,390
	$	238,274	$	204,717	$	195,140
Total capital expenditures for property, plant and equipment, and leasehold intangibles:
Independent Living	$	51,188	$	44,857	$	36,992
Assisted Living and Memory Care	121,240		111,978		105,177
CCRCs	37,414		20,467		19,086
Corporate and All Other	18,750		22,707		21,463
	$	228,592	$	200,009	$	182,718

    

	As of December 31,
(in thousands)	2023		2022
Total assets:
Independent Living(5)	$	1,206,021	$	1,267,825
Assisted Living and Memory Care	3,315,921		3,329,516
CCRCs	612,521		664,502
Corporate and All Other	438,972		675,219
Total assets	$	5,573,435	$	5,937,062

(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 Provider Relief Fund, employee retention credit, and other government sources, as described in Note 19. 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)	2023		2022		2021
Independent Living	$	487	$	10,906	$	1,512
Assisted Living and Memory Care	8,008		60,630		5,963
CCRCs	578		8,933		1,788
Health Care Services	—		—		3,105
Total other operating income	$	9,073	$	80,469	$	12,368

(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, 2023, 2022, and 2021, revenue and other operating income includes $0.9 million, $4.2 million, and $17.2 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.

(5)The Company's total carrying amount of goodwill is included on the Independent Living segment and was $27.3 million as of December 31, 2023, 2022, and 2021.