Segment Reporting

6 Months Ended

Jun. 30, 2016

Segment Reporting

Segment Reporting

Note 8.  Segment Reporting

As of June 30, 2016, we have four operating segments, of which three are separate reporting segments. The first reporting segment includes triple net senior living communities that provide short term and long term residential care and other services for residents. The second reporting segment includes managed senior living communities that provide short term and long term residential care and other services for residents. The third reporting segment includes MOBs. Our fourth segment includes the remainder of our operations, including certain properties that offer wellness, fitness and spa services to members, which we do not consider to be sufficiently material to constitute a separate reporting segment, and all of our other operations.

	For the Three Months Ended June 30, 2016
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Revenues:
Rental income	$	66,441	$	—	$	92,978	$	4,578	$	163,997
Residents fees and services		—		97,370		—		—		97,370
Total revenues		66,441		97,370		92,978		4,578		261,367
Expenses:
Property operating expenses		423		71,642		25,409		—		97,474
Depreciation and amortization		19,273		20,140		31,011		948		71,372
General and administrative		—		—		—		11,965		11,965
Acquisition related costs		—		—		—		180		180
Impairment of assets		—		—		4,961		—		4,961
Total expenses		19,696		91,782		61,381		13,093		185,952
Operating income (loss)		46,745		5,588		31,597		(8,515)		75,415
Dividend income		—		—		—		789		789
Interest and other income		—		—		—		177		177
Interest expense		(6,282)		(2,663)		(844)		(31,329)		(41,118)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee		40,463		2,925		30,753		(38,878)		35,263
Income tax expense		—		—		—		(108)		(108)
Equity in earnings of an investee		—		—		—		17		17
Income (loss) before gain on sale of properties	$	40,463	$	2,925	$	30,753	$	(38,969)	$	35,172
Gain on sale of properties		4,061		—		—		—		4,061
Net income (loss)	$	44,524	$	2,925	$	30,753	$	(38,969)		39,233
	As of June 30, 2016
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Total assets	$	2,318,798	$	1,258,212	$	3,374,952	$	313,805	$	7,265,767

	For the Three Months Ended June 30, 2015
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Revenues:
Rental income	$	61,347	$	—	$	89,591	$	4,608	$	155,546
Residents fees and services		—		91,856		—		—		91,856
Total revenues		61,347		91,856		89,591		4,608		247,402
Expenses:
Property operating expenses		—		69,792		23,800		—		93,592
Depreciation and amortization		17,058		13,649		30,856		948		62,511
General and administrative		—		—		—		11,674		11,674
Acquisition related costs		—		—		—		4,617		4,617
Total expenses		17,058		83,441		54,656		17,239		172,394
Operating income (loss)		44,289		8,415		34,935		(12,631)		75,008
Interest and other income		—		—		—		142		142
Interest expense		(6,270)		(2,561)		(1,758)		(27,318)		(37,907)
Loss on early extinguishment of debt		(6)		(33)		—		—		(39)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee		38,013		5,821		33,177		(39,807)		37,204
Income tax expense		—		—		—		(129)		(129)
Equity in earnings of an investee		—		—		—		23		23
Income (loss) from continuing operations		38,013		5,821		33,177		(39,913)		37,098
Discontinued operations:
Loss from discontinued operations		—		—		(109)		—		(109)
Impairment of assets from discontinued operations		—		—		(602)		—		(602)
Net income (loss)	$	38,013	$	5,821	$	32,466	$	(39,913)	$	36,387
	As of December 31, 2015
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Total assets	$	2,251,212	$	1,260,425	$	3,362,214	$	286,239	$	7,160,090

	For the Six Months Ended June 30, 2016
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Revenues:
Rental income	$	131,749	$	—	$	184,559	$	9,111	$	325,419
Residents fees and services		—		194,323		—		—		194,323
Total revenues		131,749		194,323		184,559		9,111		519,742
Expenses:
Property operating expenses		786		143,820		50,816		—		195,422
Depreciation and amortization		38,674		40,158		61,866		1,896		142,594
General and administrative		—		—		—		22,828		22,828
Acquisition related costs		—		—		—		619		619
Impairment of assets		4,391		—		7,960		—		12,351
Total expenses		43,851		183,978		120,642		25,343		373,814
Operating income (loss)		87,898		10,345		63,917		(16,232)		145,928
Dividend income		—		—		—		789		789
Interest and other income		—		—		—		242		242
Interest expense		(12,665)		(5,227)		(1,798)		(60,709)		(80,399)
Loss on early extinguishment of debt		—		(6)		—		—		(6)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee		75,233		5,112		62,119		(75,910)		66,554
Income tax expense		—		—		—		(202)		(202)
Equity in earnings of an investee		—		—		—		94		94
Income (loss) before gain on sale of properties		75,233		5,112		62,119		(76,018)		66,446
Gain on sale of properties		4,061		—		—		—		4,061
Net income (loss)	$	79,294	$	5,112	$	62,119	$	(76,018)	$	70,507
	As of June 30, 2016
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Total assets	$	2,318,798	$	1,258,212	$	3,374,952	$	313,805	$	7,265,767

	For the Six Months Ended June 30, 2015
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Revenues:
Rental income	$	116,598	$	—	$	175,592	$	9,139	$	301,329
Residents fees and services		—		174,649		—		—		174,649
Total revenues		116,598		174,649		175,592		9,139		475,978
Expenses:
Property operating expenses		—		132,195		47,191		—		179,386
Depreciation and amortization		32,183		22,109		60,030		1,896		116,218
General and administrative		—		—		—		22,248		22,248
Acquisition related costs		—		—		—		5,775		5,775
Total expenses		32,183		154,304		107,221		29,919		323,627
Operating income (loss)		84,415		20,345		68,371		(20,780)		152,351
Interest and other income		—		—		—		217		217
Interest expense		(12,255)		(4,580)		(3,525)		(53,488)		(73,848)
Loss on early extinguishment of debt		(6)		(33)		—		(1,409)		(1,448)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee		72,154		15,732		64,846		(75,460)		77,272
Income tax expense		—		—		—		(239)		(239)
Equity in earnings of an investee		—		—		—		95		95
Income (loss) from continuing operations		72,154		15,732		64,846		(75,604)		77,128
Discontinued operations:
Loss from discontinued operations		—		—		(350)		—		(350)
Impairment of assets from discontinued operations		—		—		(602)		—		(602)
Net income (loss)	$	72,154	$	15,732	$	63,894	$	(75,604)	$	76,176
	As of December 31, 2015
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated
Total assets	$	2,251,212	$	1,260,425	$	3,362,214	$	286,239	$	7,160,090