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Segment Information
 12 Months Ended
Dec. 31, 2024
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. The Company's chief operating decision maker is its President and Chief Executive Officer.

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.

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.

During the year ended December 31, 2023, the Company completed the sale of two owned CCRCs for cash proceeds of $25.6 million, net of $29.6 million in mortgage debt repaid and transaction costs, and recognized a net gain on sale of communities of $36.3 million for the Company’s CCRCs segment.
The following tables set forth selected segment financial data.

For the Years Ended December 31,
(in thousands)202420232022
Revenue and other operating income:
Independent Living (1)(2)
$598,922 $564,499 $518,699 
Assisted Living and Memory Care (1)(2)
2,038,660 1,968,440 1,815,722 
CCRCs (1)(2)
334,468 333,404 331,577 
All Other (3)
153,437 149,486 159,381 
Total revenue and other operating income3,125,487 3,015,829 2,825,379 
Community labor expenses:
Independent Living230,037 221,112 213,965 
Assisted Living and Memory Care994,687 979,926 977,780 
CCRCs183,322 192,860 196,279 
Other facility operating expenses:(4)
Independent Living173,803 158,742 145,784 
Assisted Living and Memory Care510,670 486,197 457,984 
CCRCs90,742 90,963 91,813 
Total facility operating expenses2,183,261 2,129,800 2,083,605 
Segment operating income:(5)
Independent Living195,082 184,645 158,950 
Assisted Living and Memory Care533,303 502,317 379,958 
CCRCs60,404 49,581 43,485 
All Other10,521 10,161 12,020 
Total segment operating income799,310 746,704 594,413 
General and administrative expense (including non-cash stock-based compensation expense)185,850 178,894 168,594 
Facility operating lease expense:
Independent Living37,824 39,114 39,700 
Assisted Living and Memory Care147,899 146,166 106,961 
CCRCs13,052 12,943 13,883 
Corporate and All Other1,812 4,187 4,750 
Depreciation and amortization:
Independent Living92,785 83,637 79,521 
Assisted Living and Memory Care202,996 196,994 207,344 
CCRCs34,882 36,951 38,039 
Corporate and All Other27,125 25,130 22,540 
Asset impairment:
Independent Living2,285 1,647 10,893 
Assisted Living and Memory Care5,927 11,574 11,613 
CCRCs345 1,368 5,970 
Corporate and All Other— 25,983 1,142 
Loss (gain) on sale of communities, net— (36,296)(73,850)
Income (loss) from operations$46,528 $18,412 $(42,687)
For the Years Ended December 31,
(in thousands)202420232022
Total interest expense:
Independent Living$65,342 $61,624 $48,788 
Assisted Living and Memory Care150,610 141,330 133,139 
CCRCs23,595 24,889 21,251 
Corporate and All Other13,028 10,431 1,539 
$252,575 $238,274 $204,717 
Total capital expenditures for property, plant and equipment, and leasehold intangibles:
Independent Living$48,658 $51,188 $44,857 
Assisted Living and Memory Care122,384 121,240 111,978 
CCRCs18,214 37,414 20,467 
Corporate and All Other15,094 18,750 22,707 
$204,350 $228,592 $200,009 
    

As of December 31,
(in thousands)20242023
Total assets:
Independent Living(6)
$1,252,736 $1,206,021 
Assisted Living and Memory Care3,983,311 3,315,921 
CCRCs640,720 612,521 
Corporate and All Other458,795 438,972 
Total assets$6,335,562 $5,573,435 

(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)202420232022
Independent Living$— $487 $10,906 
Assisted Living and Memory Care— 8,008 60,630 
CCRCs— 578 8,933 
Total other operating income$— $9,073 $80,469 

(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, and 2022, revenue and other operating income includes $0.9 million and $4.2 million of revenue earned from unconsolidated ventures in which the Company had an ownership interest.
(4)Other facility operating expenses is primarily comprised of costs for food, utilities, maintenance, real estate taxes, insurance, marketing, paid referral fees, and other costs of operating the Company's communities.
(5)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.
(6)The Company's total carrying amount of goodwill is included on the Independent Living segment and was $27.3 million as of December 31, 2024, 2023, and 2022.