Segment Reporting

3 Months Ended

Mar. 31, 2019

We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations on our three operating segments: Seniors Housing Operating, Triple-net and Outpatient Medical. Our seniors housing operating properties include assisted living, independent living/continuing care retirement communities, independent supportive living communities (Canada), care homes with and without nursing (U.K.) and combinations thereof that are owned and/or operated through RIDEA structures (see Note 19). Under the Triple-net segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single tenant properties. Properties acquired are primarily leased under triple-net leases and we are not involved in the management of the property. Our outpatient medical properties are typically leased to multiple tenants and generally require a certain level of property management by us.

We evaluate performance based upon consolidated NOI of each segment. We define NOI as total revenues, including tenant reimbursements, less property operating expenses. We believe NOI provides investors relevant and useful information as it measures the operating performance of our properties at the property level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties.

Non-segment revenue consists mainly of interest income on certain non-real estate investments and other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018). The results of operations for all acquisitions described in Note 3 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. There are no intersegment sales or transfers.

Summary information for the reportable segments (which excludes unconsolidated entities) is as follows (in thousands):



Three Months Ended March 31, 2019:	Seniors Housing Operating			Triple-net			Outpatient Medical			Non-segment / Corporate			Total
Resident fees and services	$	868,285		$	—		$	—		$	—		$	868,285
Rental income	—			232,032			149,052			—			381,084
Interest income	—			14,946			173			—			15,119
Other income	4,101			1,263			236			2,157			7,757
Total revenues	872,386			248,241			149,461			2,157			1,272,245

Property operating expenses	607,686			14,955			48,166			—			670,807
Consolidated net operating income	264,700			233,286			101,295			2,157			601,438

Depreciation and amortization	131,575			61,348			51,009			—			243,932
Interest expense	18,251			3,440			3,348			120,193			145,232
General and administrative expenses	—			—			—			35,282			35,282
Loss (gain) on derivatives and financial instruments, net	—			(2,487		)	—			—			(2,487		)
Loss (gain) on extinguishment of debt, net	—			—			—			15,719			15,719
Provision for loan losses	—			18,690			—			—			18,690
Other expenses	2,946			3,029			754			2,027			8,756
Income (loss) from continuing operations before income taxes and other items	111,928			149,266			46,184			(171,064		)	136,314
Income tax (expense) benefit	(619		)	(951		)	(365		)	(287		)	(2,222		)
(Loss) income from unconsolidated entities	(16,580		)	5,658			1,723			—			(9,199		)
Gain (loss) on real estate dispositions, net	(160		)	167,574			(5		)	—			167,409
Income (loss) from continuing operations	94,569			321,547			47,537			(171,351		)	292,302
Net income (loss)	$	94,569		$	321,547		$	47,537		$	(171,351	)	$	292,302

Total assets	$	15,237,260		$	9,494,799		$	5,729,959		$	175,318		$	30,637,336



Three Months Ended March 31, 2018:	Seniors Housing Operating			Triple-net			Outpatient Medical			Non-segment/Corporate			Total
Resident fees and services	$	735,934		$	—		$	—		$	—		$	735,934
Rental income	—			206,831			136,538			—			343,369
Interest income	85			14,551			12			—			14,648
Other income	1,148			1,377			121			368			3,014
Total revenues	737,167			222,759			136,671			368			1,096,965

Property operating expenses	511,941			21			44,503			—			556,465
Consolidated net operating income	225,226			222,738			92,168			368			540,500

Depreciation and amortization	125,769			56,032			46,400			—			228,201
Interest expense	16,935			3,442			1,676			100,722			122,775
General and administrative expenses	—			—			—			33,705			33,705
Loss (gain) on derivatives and financial instruments, net	—			(7,173		)	—			—			(7,173		)
Loss (gain) on extinguishment of debt, net	(189		)	(32		)	11,928			—			11,707
Impairment of assets	2,301			25,884			—			—			28,185
Other expenses	(188		)	1,120			598			2,182			3,712
Income (loss) from continuing operations before income taxes and other items	80,598			143,465			31,566			(136,241		)	119,388
Income tax (expense) benefit	162			(1,136		)	(428		)	(186		)	(1,588		)
(Loss) income from unconsolidated entities	(9,480		)	5,821			1,230			—			(2,429		)
Gain (loss) on real estate dispositions, net	5			123,397			214,782			—			338,184
Income (loss) from continuing operations	71,285			271,547			247,150			(136,427		)	453,555
Net income (loss)	$	71,285		$	271,547		$	247,150		$	(136,427	)	$	453,555

Our portfolio of properties and other investments are located in the United States, the United Kingdom and Canada. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for the periods presented (dollars in thousands):



	Three Months Ended
	March 31, 2019				March 31, 2018
Revenues:	Amount		%		Amount		%
United States	$	1,043,667	82.1	%	$	863,789	78.8	%
United Kingdom	112,418		8.8	%	116,525		10.6	%
Canada	116,160		9.1	%	116,651		10.6	%
Total	$	1,272,245	100.0	%	$	1,096,965	100.0	%

	As of
	March 31, 2019				December 31, 2018
Assets:	Amount		%		Amount		%
United States	$	24,984,680	81.6	%	$	24,884,292	82.0	%
United Kingdom	3,230,152		10.5	%	3,078,994		10.2	%
Canada	2,422,504		7.9	%	2,378,786		7.8	%
Total	$	30,637,336	100.0	%	$	30,342,072	100.0	%