Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

NOTE 19—SEGMENT INFORMATION

As of December 31, 2016, we operated through three reportable business segments: triple-net leased properties, senior living operations and office operations. Under our triple-net leased properties segment, we invest in and own seniors housing and healthcare properties throughout the United States and the United Kingdom and lease those properties to healthcare operating companies under “triple-net” or “absolute-net” leases that obligate the tenants to pay all property-related expenses. In our senior living operations segment, we invest in seniors housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. In our office operations segment, we primarily acquire, own, develop, lease, and manage MOBs and life science and innovation centers throughout the United States. Information provided for “all other” includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to our three reportable business segments. Assets included in “all other” consist primarily of corporate assets, including cash, restricted cash, deferred financing costs, loans receivable and investments, and miscellaneous accounts receivable.

Our chief operating decision makers evaluate performance of the combined properties in each reportable business segment and determine how to allocate resources to those segments in significant part, based on segment NOI and related measures. We define segment NOI as NOI adjusted for income or loss from unconsolidated entities, and we define NOI as total revenues, less interest and other income, property-level operating expenses and office building services costs. We consider segment NOI useful because it allows investors, analysts and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies between periods on a consistent basis. In order to facilitate a clear understanding of our historical consolidated operating results, segment NOI should be examined in conjunction with income from continuing operations as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Annual Report on Form 10-K.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense and other non-property specific revenues and expenses are not allocated to individual reportable business segments for purposes of assessing segment performance. There are no intersegment sales or transfers.

Summary information by reportable business segment is as follows:

	For the Year Ended December 31, 2016
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	845,834	$	—	$	630,342	$	—	$	1,476,176
Resident fees and services	—		1,847,306		—		—		1,847,306
Office building and other services revenue	4,921		—		13,029		3,120		21,070
Income from loans and investments	—		—		—		98,094		98,094
Interest and other income	—		—		—		876		876
Total revenues	$	850,755	$	1,847,306	$	643,371	$	102,090	$	3,443,522
Total revenues	$	850,755	$	1,847,306	$	643,371	$	102,090	$	3,443,522
Less:
Interest and other income	—		—		—		876		876
Property-level operating expenses	—		1,242,978		191,784		—		1,434,762
Office building services costs	—		—		7,311		—		7,311
Segment NOI	850,755		604,328		444,276		101,214		2,000,573
Income from unconsolidated entities	2,363		1,265		590		140		4,358
Segment profit	$	853,118	$	605,593	$	444,866	$	101,354	2,004,931
Interest and other income									876
Interest expense									(419,740		)
Depreciation and amortization									(898,924		)
General, administrative and professional fees									(126,875		)
Loss on extinguishment of debt, net									(2,779		)
Merger-related expenses and deal costs									(24,635		)
Other									(9,988		)
Income tax benefit									31,343
Income from continuing operations									$	554,209

	For the Year Ended December 31, 2015
	Triple-Net Leased Properties			Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	779,801		$	—		$	566,245	$	—		$	1,346,046
Resident fees and services	—			1,811,255			—		—			1,811,255
Office building and other services revenue	4,433			—			34,436		2,623			41,492
Income from loans and investments	—			—			—		86,553			86,553
Interest and other income	—			—			—		1,052			1,052
Total revenues	$	784,234		$	1,811,255		$	600,681	$	90,228		$	3,286,398
Total revenues	$	784,234		$	1,811,255		$	600,681	$	90,228		$	3,286,398
Less:
Interest and other income	—			—			—		1,052			1,052
Property-level operating expenses	—			1,209,415			174,225		—			1,383,640
Office building services costs	—			—			26,565		—			26,565
Segment NOI	784,234			601,840			399,891		89,176			1,875,141
(Loss) income from unconsolidated entities	(813		)	(526		)	369		(450		)	(1,420		)
Segment profit	$	783,421		$	601,314		$	400,260	$	88,726		1,873,721
Interest and other income												1,052
Interest expense												(367,114		)
Depreciation and amortization												(894,057		)
General, administrative and professional fees												(128,035		)
Loss on extinguishment of debt, net												(14,411		)
Merger-related expenses and deal costs												(102,944		)
Other												(17,957		)
Income tax benefit												39,284
Income from continuing operations												$	389,539

	For the Year Ended December 31, 2014
	Triple-Net Leased Properties		Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	674,547	$	—		$	463,910	$	—		$	1,138,457
Resident fees and services	—		1,552,951			—		—			1,552,951
Office building and other services revenue	4,565		—			22,529		2,270			29,364
Income from loans and investments	—		—			—		51,778			51,778
Interest and other income	—		—			—		4,263			4,263
Total revenues	$	679,112	$	1,552,951		$	486,439	$	58,311		$	2,776,813
Total revenues	$	679,112	$	1,552,951		$	486,439	$	58,311		$	2,776,813
Less:
Interest and other income	—		—			—		4,263			4,263
Property-level operating expenses	—		1,036,556			158,832		—			1,195,388
Office building services costs	—		—			17,092		—			17,092
Segment NOI	679,112		516,395			310,515		54,048			1,560,070
Income (loss) from unconsolidated entities	859		(658		)	398		(738		)	(139		)
Segment profit	$	679,971	$	515,737		$	310,913	$	53,310		1,559,931
Interest and other income											4,263
Interest expense											(292,065		)
Depreciation and amortization											(725,216		)
General, administrative and professional fees											(121,738		)
Loss on extinguishment of debt, net											(5,564		)
Merger-related expenses and deal costs											(43,304		)
Other											(25,743		)
Income tax benefit											8,732
Income from continuing operations											$	359,296

Assets by reportable business segment are as follows:

	As of December 31,
	2016				2015
	(Dollars in thousands)
Assets:
Triple-net leased properties	$	7,627,792	32.9	%	$	7,996,645	35.9	%
Senior living operations	7,826,262		33.8		8,022,206		36.0
Office operations	6,614,454		28.6		5,209,751		23.4
All other assets	1,098,092		4.7		1,033,316		4.7
Total assets	$	23,166,600	100.0	%	$	22,261,918	100.0	%

Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:

	For the Year Ended December 31,
	2016		2015		2014
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	74,192	$	1,890,245	$	647,870
Senior living operations	105,614		382,877		977,997
Office operations	1,503,304		604,827		36,861
Total capital expenditures	$	1,683,110	$	2,877,949	$	1,662,728

Our portfolio of properties and mortgage loan and other investments are located in the United States, Canada and the United Kingdom. Revenues are attributed to an individual country based on the location of each property.

Geographic information regarding our operations is as follows:

	For the Year Ended December 31,
	2016		2015		2014
	(In thousands)
Revenues:
United States	$	3,242,353	$	3,086,449	$	2,636,591
Canada	174,831		173,778		126,435
United Kingdom	26,338		26,171		13,787
Total revenues	$	3,443,522	$	3,286,398	$	2,776,813

	As of December 31,
	2016		2015
	(In thousands)
Net real estate property:
United States	$	19,105,939	$	18,271,829
Canada	1,037,105		1,039,561
United Kingdom	251,710		313,830
Total net real estate property	$	20,394,754	$	19,625,220