NOTE 16—SEGMENT INFORMATION

As of September 30, 2017, 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 any of our three reportable business segments. Assets included in “all other” consist primarily of corporate assets, including cash, restricted cash, 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 net operating income (“NOI”) and related measures. We define segment 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 Quarterly Report on Form 10-Q.

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 Three Months Ended September 30, 2017
	Triple-Net Leased Properties		Senior Living Operations		Office Operations			All Other			Total
	(In thousands)
Revenues:
Rental income	$	212,370	$	—	$	189,506		$	—		$	401,876
Resident fees and services	—		461,700		—			—			461,700
Office building and other services revenue	1,125		—		1,568			503			3,196
Income from loans and investments	—		—		—			32,985			32,985
Interest and other income	—		—		—			171			171
Total revenues	$	213,495	$	461,700	$	191,074		$	33,659		$	899,928

Total revenues	$	213,495	$	461,700	$	191,074		$	33,659		$	899,928
Less:
Interest and other income	—		—		—			171			171
Property-level operating expenses	—		315,598		60,609			—			376,207
Office building services costs	—		—		418			—			418
Segment NOI	213,495		146,102		130,047			33,488			523,132
Income (loss) from unconsolidated entities	1,122		300		(348		)	(324		)	750
Segment profit	$	214,617	$	146,402	$	129,699		$	33,164		523,882
Interest and other income											171
Interest expense											(113,869		)
Depreciation and amortization											(213,407		)
General, administrative and professional fees											(33,317		)
Loss on extinguishment of debt, net											(511		)
Merger-related expenses and deal costs											(804		)
Other											(13,030		)
Income tax benefit											7,815
Income from continuing operations											$	156,930



	For the Three Months Ended September 30, 2016
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	210,424	$	—	$	158,273	$	—	$	368,697
Resident fees and services	—		461,974		—		—		461,974
Office building and other services revenue	1,246		—		2,211		860		4,317
Income from loans and investments	—		—		—		31,566		31,566
Interest and other income	—		—		—		562		562
Total revenues	$	211,670	$	461,974	$	160,484	$	32,988	$	867,116

Total revenues	$	211,670	$	461,974	$	160,484	$	32,988	$	867,116
Less:
Interest and other income	—		—		—		562		562
Property-level operating expenses	—		312,145		48,972		—		361,117
Office building services costs	—		—		974		—		974
Segment NOI	211,670		149,829		110,538		32,426		504,463
Income from unconsolidated entities	584		75		238		34		931
Segment profit	$	212,254	$	149,904	$	110,776	$	32,460	505,394
Interest and other income									562
Interest expense									(105,063		)
Depreciation and amortization									(208,387		)
General, administrative and professional fees									(31,567		)
Loss on extinguishment of debt, net									(383		)
Merger-related expenses and deal costs									(16,217		)
Other									(2,430		)
Income tax benefit									8,537
Income from continuing operations									$	150,446



	For the Nine Months Ended September 30, 2017
	Triple-Net Leased Properties		Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	634,955	$	—		$	561,641	$	—		$	1,196,596
Resident fees and services	—		1,386,131			—		—			1,386,131
Office building and other services revenue	3,455		—			5,347		979			9,781
Income from loans and investments	—		—			—		85,499			85,499
Interest and other income	—		—			—		854			854
Total revenues	$	638,410	$	1,386,131		$	566,988	$	87,332		$	2,678,861

Total revenues	$	638,410	$	1,386,131		$	566,988	$	87,332		$	2,678,861
Less:
Interest and other income	—		—			—		854			854
Property-level operating expenses	—		936,296			174,728		—			1,111,024
Office building services costs	—		—			1,708		—			1,708
Segment NOI	638,410		449,835			390,552		86,478			1,565,275
Income (loss) from unconsolidated entities	4,768		(157		)	284		(1,101		)	3,794
Segment profit	$	643,178	$	449,678		$	390,836	$	85,377		1,569,069
Interest and other income											854
Interest expense											(336,245		)
Depreciation and amortization											(655,298		)
General, administrative and professional fees											(100,560		)
Loss on extinguishment of debt, net											(856		)
Merger-related expenses and deal costs											(8,903		)
Other											(16,066		)
Income tax benefit											13,119
Income from continuing operations											$	465,114



	For the Nine Months Ended September 30, 2016
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	635,030	$	—	$	446,496	$	—	$	1,081,526
Resident fees and services	—		1,390,387		—		—		1,390,387
Office building and other services revenue	3,676		—		10,556		2,774		17,006
Income from loans and investments	—		—		—		78,098		78,098
Interest and other income	—		—		—		792		792
Total revenues	$	638,706	$	1,390,387	$	457,052	$	81,664	$	2,567,809

Total revenues	$	638,706	$	1,390,387	$	457,052	$	81,664	$	2,567,809
Less:
Interest and other income	—		—		—		792		792
Property-level operating expenses	—		932,675		136,619		—		1,069,294
Office building services costs	—		—		6,277		—		6,277
Segment NOI	638,706		457,712		314,156		80,872		1,491,446
Income from unconsolidated entities	738		732		301		380		2,151
Segment profit	$	639,444	$	458,444	$	314,457	$	81,252	1,493,597
Interest and other income									792
Interest expense									(312,001		)
Depreciation and amortization									(666,735		)
General, administrative and professional fees									(95,387		)
Loss on extinguishment of debt, net									(3,165		)
Merger-related expenses and deal costs									(25,073		)
Other									(8,901		)
Income tax benefit									28,507
Income from continuing operations									$	411,634

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



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	9,954	$	12,992	$	151,906	$	69,642
Senior living operations	45,152		26,495		96,533		70,297
Office operations	62,108		1,400,742		307,494		1,451,347
Total capital expenditures	$	117,214	$	1,440,229	$	555,933	$	1,591,286

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 Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
	(In thousands)
Revenues:
United States	$	844,370	$	815,719	$	2,521,813	$	2,417,314
Canada	48,639		45,021		137,647		130,195
United Kingdom	6,919		6,376		19,401		20,300
Total revenues	$	899,928	$	867,116	$	2,678,861	$	2,567,809



	As of September 30, 2017		As of December 31, 2016
	(In thousands)
Net real estate property:
United States	$	19,079,529	$	19,105,939
Canada	1,086,929		1,037,105
United Kingdom	298,415		251,710
Total net real estate property	$	20,464,873	20,394,754