Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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 seniors apartments, 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 generally owned and/or operated through RIDEA structures (see Note 19). Our Triple-net properties include the property types described above as well as long-term/post-acute care facilities. 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 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). 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) during the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):

Year Ended December 31, 2020:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	3,074,022	$	—	$	—	$	—	$	3,074,022
Rental income	—		733,776		709,584		—		1,443,360
Interest income	618		62,625		5,913		—		69,156
Other income	7,223		4,903		4,522		2,781		19,429
Total revenues	3,081,863		801,304		720,019		2,781		4,605,967
Property operating expenses	2,326,311		53,183		214,948		3,381		2,597,823
Consolidated net operating income	755,552		748,121		505,071		(600)		2,008,144
Depreciation and amortization	544,462		232,604		261,371		—		1,038,437
Interest expense	54,901		9,477		17,579		432,431		514,388
General and administrative expenses	—		—		—		128,394		128,394
Loss (gain) on derivatives and financial instruments, net	—		11,049		—		—		11,049
Loss (gain) on extinguishment of debt, net	12,659		—		1,046		33,344		47,049
Provision for loan losses	671		90,563		3,202		—		94,436
Impairment of assets	100,741		34,867		—		—		135,608
Other expenses	14,265		22,923		8,218		24,929		70,335
Income (loss) from continuing operations before income taxes and other items	27,853		346,638		213,655		(619,698)		(31,552)
Income tax (expense) benefit	—		—		—		(9,968)		(9,968)
Income (loss) from unconsolidated entities	(33,857)		18,462		7,312		—		(8,083)
Gain (loss) on real estate dispositions, net	328,249		64,288		695,918		—		1,088,455
Income (loss) from continuing operations	322,245		429,388		916,885		(629,666)		1,038,852
Net income (loss)	$	322,245	$	429,388	$	916,885	$	(629,666)	$	1,038,852
Total assets	$	16,044,153	$	8,547,482	$	6,522,880	$	1,369,127	$	32,483,642

Year Ended December 31, 2019:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	3,448,175	$	—	$	—	$	—	$	3,448,175
Rental income	—		903,798		684,602		—		1,588,400
Interest income	36		62,599		1,195		—		63,830
Other income	8,658		6,246		2,031		3,966		20,901
Total revenues	3,456,869		972,643		687,828		3,966		5,121,306
Property operating expenses	2,417,349		53,900		218,793		—		2,690,042
Consolidated net operating income	1,039,520		918,743		469,035		3,966		2,431,264
Depreciation and amortization	553,189		232,626		241,258		—		1,027,073
Interest expense	67,983		12,892		13,411		461,273		555,559
General and administrative expenses	—		—		—		126,549		126,549
Loss (gain) on derivatives and financial instruments, net	—		(4,399)		—		—		(4,399)
Loss (gain) on extinguishment of debt, net	1,614		—		—		82,541		84,155
Provision for loan losses	—		18,690		—		—		18,690
Impairment of assets	2,145		11,926		14,062		—		28,133
Other expenses	26,348		13,771		1,788		10,705		52,612
Income (loss) from continuing operations before income taxes and other items	388,241		633,237		198,516		(677,102)		542,892
Income tax (expense) benefit	—		—		—		(2,957)		(2,957)
Income (loss) from unconsolidated entities	12,388		22,985		7,061		—		42,434
Gain (loss) on real estate dispositions, net	528,747		218,322		972		—		748,041
Income (loss) from continuing operations	929,376		874,544		206,549		(680,059)		1,330,410
Net income (loss)	$	929,376	$	874,544	$	206,549	$	(680,059)	$	1,330,410
Total assets	$	15,784,898	$	9,434,817	$	7,991,521	$	169,515	$	33,380,751

Year Ended December 31, 2018:	Seniors Housing Operating		Triple-net			Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	3,234,852	$	—		$	—	$	—	$	3,234,852
Rental income	—		828,865			551,557		—		1,380,422
Interest income	578		54,926			310		—		55,814
Other income	5,024		17,173			4,939		2,275		29,411
Total revenues	3,240,454		900,964			556,806		2,275		4,700,499
Property operating expenses	2,255,432		915			176,670		—		2,433,017
Consolidated net operating income	985,022		900,049			380,136		2,275		2,267,482
Depreciation and amortization	529,449		235,480			185,530		—		950,459
Interest expense	69,060		14,225			7,051		436,256		526,592
General and administrative expenses	—		—			—		126,383		126,383
Loss (gain) on derivatives and financial instruments, net	—		(4,016)			—		—		(4,016)
Loss (gain) on extinguishment of debt, net	110		(32)			11,928		4,091		16,097
Impairment of assets	7,599		107,980			—		—		115,579
Other expenses(1)	6,624		90,975		(1)	7,570		7,729		112,898
Income (loss) from continuing operations before income taxes and other items	372,180		455,437			168,057		(572,184)		423,490
Income tax (expense) benefit	—		—			—		(8,674)		(8,674)
Income (loss) from unconsolidated entities	(28,142)		21,938			5,563		—		(641)
Gain (loss) on real estate dispositions, net	(2,245)		196,589			221,231		—		415,575
Income (loss) from continuing operations	341,793		673,964			394,851		(580,858)		829,750
Net income (loss)	$	341,793	$	673,964		$	394,851	$	(580,858)	$	829,750

(1) Represents non-capitalizable transaction costs of $81,116,000 primarily related to a joint venture transaction with an existing seniors housing operator including the conversion of properties from Triple-net to Seniors Housing Operating and termination/restructuring of preexisting relationships.

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):

	Year Ended
	December 31, 2020				December 31, 2019				December 31, 2018
Revenues:	Amount(1)		%		Amount		%		Amount		%
United States	$	3,720,155	80.8	%	$	4,205,492	82.1	%	$	3,777,960	80.4	%
United Kingdom	451,399		9.8	%	452,698		8.8	%	452,956		9.6	%
Canada	434,413		9.4	%	463,116		9.1	%	469,583		10.0	%
Total	$	4,605,967	100.0	%	$	5,121,306	100.0	%	$	4,700,499	100.0	%
	As of
	December 31, 2020				December 31, 2019
Assets:	Amount		%		Amount		%
United States	$	26,658,659	82.1	%	$	27,513,911	82.4	%
United Kingdom	3,352,549		10.3	%	3,405,388		10.2	%
Canada	2,472,434		7.6	%	2,461,452		7.4	%
Total	$	32,483,642	100.0	%	$	33,380,751	100.0	%

(1) The United States, United Kingdom and Canada represent 76%, 10% and 14%, respectively, of our resident fees and services revenue for the year ended December 31, 2020.