Segment Disclosures

The Company evaluates its business and allocates resources based on its reportable business segments: (i) senior housing triple-net, (ii) SHOP, (iii) life science and (iv) medical office. The Company has non-reportable segments that are comprised primarily of the Company’s debt investments, hospital properties, unconsolidated joint ventures (see below), and care homes in the U.K. The accounting policies of the segments are the same as those described under Summary of Significant Accounting Policies (see Note 2).

During the fourth quarter of 2017, as a result of a change in how operating results are reported to the chief operating decision makers, for the purpose of evaluating performance and allocating resources, the Company began excluding unconsolidated joint ventures from its evaluation of its segments' operating results. Unconsolidated joint ventures are now reflected in other non-reportable segments, and as a result, excluded from NOI and Adjusted NOI. Prior period NOI and Adjusted NOI have also been recast to conform to current period presentation, which excludes unconsolidated joint ventures.

During the year ended December 31, 2017, 42 senior housing triple-net facilities were transferred to the Company’s SHOP segment. During the year ended December 31, 2016, 17 senior housing triple-net facilities were transitioned to a RIDEA structure (reported in the Company’s SHOP segment). There were no intersegment sales or transfers during the year ended December 31, 2015.

The Company evaluates performance based upon: (i) property net operating income from continuing operations (“NOI”) and (ii) Adjusted NOI. NOI is defined as rental and related revenues, including tenant recoveries, resident fees and services, and income from DFLs, less property level operating expenses. Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, lease termination fees and the impact of deferred community fee income and expense. The adjustments to NOI and resulting Adjusted NOI for SHOP have been recast for prior periods presented to conform to the current period presentation which excludes (i) the impact of deferred community fee income and expense, resulting in recognition as cash is received and expenses are paid and (ii) adjustments related to unconsolidated joint ventures (see above).

Non-segment assets consist of assets in the Company's other non-reportable segments (see above) and corporate non-segment assets. Corporate non-segment assets consist primarily of corporate assets, including cash and cash equivalents, restricted cash, accounts receivable, net, marketable equity securities and, if any, real estate held for sale. See Note 22 for other information regarding concentrations of credit risk.

The following tables summarize information for the reportable segments (in thousands):

For the year ended December 31, 2017:



Segments	Senior Housing Triple-Net			SHOP			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Rental revenues⁽¹⁾	$	313,547		$	525,473		$	358,816		$	477,459		$	116,846		$	—		$	1,792,141
Operating expenses	(3,819		)	(396,491		)	(78,001		)	(183,197		)	(4,743		)	—			(666,251		)
NOI	309,728			128,982			280,815			294,262			112,103			—			1,125,890
Adjustments to NOI⁽²⁾	17,098			33,227			(4,517		)	(2,952		)	(4,446		)	—			38,410
Adjusted NOI	326,826			162,209			276,298			291,310			107,657			—			1,164,300
Addback adjustments	(17,098		)	(33,227		)	4,517			2,952			4,446			—			(38,410		)
Interest income	—			—			—			—			56,237			—			56,237
Interest expense	(2,518		)	(7,920		)	(373		)	(506		)	(4,230		)	(292,169		)	(307,716		)
Depreciation and amortization	(103,820		)	(103,162		)	(128,864		)	(169,795		)	(29,085		)	—			(534,726		)
General and administrative	—			—			—			—			—			(88,772		)	(88,772		)
Transaction costs	—			—			—			—			—			(7,963		)	(7,963		)
Recoveries (impairments), net	(22,590		)	—			—			—			(143,794		)	—			(166,384		)
Gain (loss) on sales of real estate, net	280,349			17,485			45,916			9,095			3,796			—			356,641
Loss on debt extinguishment	—			—			—			—			—			(54,227		)	(54,227		)
Other income (expense), net	—			—			—			—			50,895			(19,475		)	31,420
Income tax benefit (expense)	—			—			—			—			—			1,333			1,333
Equity income (loss) from unconsolidated JVs	—			—			—			—			10,901			—			10,901
Net income (loss)	$	461,149		$	35,385		$	197,494		$	133,056		$	56,823		$	(461,273	)	$	422,634

_______________________________________


(1)	Represents rental and related revenues, tenant recoveries, resident fees and services, and income from DFLs.


(2)	Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, deferral of community fees, net and termination fees.

For the year ended December 31, 2016:



Segments	Senior Housing Triple-Net			SHOP			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Rental revenues⁽¹⁾	$	423,118		$	686,822		$	358,537		$	446,280		$	125,729		$	—		$	2,040,486
Operating expenses	(6,710		)	(480,870		)	(72,478		)	(173,687		)	(4,654		)	—			(738,399		)
NOI	416,408			205,952			286,059			272,593			121,075			—			1,302,087
Adjustments to NOI⁽²⁾	(7,566		)	(2,686		)	(2,954		)	(3,536		)	(3,022		)	—			(19,764		)
Adjusted NOI	408,842			203,266			283,105			269,057			118,053			—			1,282,323
Addback adjustments	7,566			2,686			2,954			3,536			3,022			—			19,764
Interest income	—			—			—			—			88,808			—			88,808
Interest expense	(9,499		)	(29,745		)	(2,357		)	(5,895		)	(9,153		)	(407,754		)	(464,403		)
Depreciation and amortization	(136,146		)	(108,806		)	(130,829		)	(161,790		)	(30,537		)	—			(568,108		)
General and administrative	—			—			—			—			—			(103,611		)	(103,611		)
Transaction costs	—			—			—			—			—			(9,821		)	(9,821		)
Gain (loss) on sales of real estate, net	48,744			675			49,042			8,333			57,904			—			164,698
Loss on debt extinguishment																(46,020		)	(46,020		)
Other income (expense), net	—			—			—			—			—			3,654			3,654
Income tax benefit (expense)	—			—			—			—			—			(4,473		)	(4,473		)
Equity income (loss) from unconsolidated JVs	—			—			—			—			11,360			—			11,360
Discontinued operations	—			—			—			—			—			265,755			265,755
Net income (loss)	$	319,507		$	68,076		$	201,915		$	113,241		$	239,457		$	(302,270	)	$	639,926

_______________________________________


(1)	Represents rental and related revenues, tenant recoveries, resident fees and services, and income from DFLs.


(2)	Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, deferral of community fees, net and termination fees.

For the year ended December 31, 2015:



Segments	Senior Housing Triple-Net			SHOP			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Rental revenues⁽¹⁾	$	428,269		$	518,264		$	342,984		$	415,351		$	123,437		$	—		$	1,828,305
Operating expenses	(3,427		)	(371,016		)	(70,217		)	(162,054		)	(3,965		)	—			(610,679		)
NOI	424,842			147,248			272,767			253,297			119,472			—			1,217,626
Adjustments to NOI⁽²⁾	(9,716		)	8,145			(10,128		)	(4,933		)	(2,356		)	—			(18,988		)
Adjusted NOI	415,126			155,393			262,639			248,364			117,116			—			1,198,638
Addback adjustments	9,716			(8,145		)	10,128			4,933			2,356			—			18,988
Interest income	—			—			—			—			112,184			—			112,184
Interest expense	(16,899		)	(31,869		)	(2,878		)	(9,603		)	(9,745		)	(408,602		)	(479,596		)
Depreciation and amortization	(125,538		)	(80,981		)	(126,241		)	(143,682		)	(28,463		)	—			(504,905		)
General and administrative	—			—			—			—			—			(95,965		)	(95,965		)
Transaction costs	—			—			—			—			—			(27,309		)	(27,309		)
Recoveries (impairments), net	—			—			—			—			(108,349		)	—			(108,349		)
Gain (loss) on sales of real estate, net	6,325			—			—			52			—			—			6,377
Other income (expense), net	—			—			—			—			—			16,208			16,208
Income tax benefit (expense)	—			—			—			—			—			9,807			9,807
Equity income (loss) from unconsolidated JVs	—			—			—			—			6,590			—			6,590
Discontinued operations	—			—			—			—			—			(699,086		)	(699,086		)
Net income (loss)	$	288,730		$	34,398		$	143,648		$	100,064		$	91,689		$	(1,204,947	)	$	(546,418	)

_______________________________________


(1)	Represents rental and related revenues, tenant recoveries, resident fees and services, and income from DFLs.


(2)	Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, deferral of community fees, net and termination fees.

The following table summarizes the Company’s revenues by segment (in thousands):



	Year Ended
	December 31,
Segments	2017		2016		2015
Senior housing triple-net	$	313,547	$	423,118	$	428,269
SHOP	525,473		686,822		518,264
Life science	358,816		358,537		342,984
Medical office	477,459		446,280		415,351
Other non-reportable segments	173,083		214,537		235,621
Total revenues	$	1,848,378	$	2,129,294	$	1,940,489

The following table summarizes the Company’s total assets by segment (in thousands):



	December 31,
Segments	2017			2016			2015
Senior housing triple-net	$	3,515,400		$	3,871,720		$	5,092,443
SHOP	2,392,130			3,135,115			2,684,675
Life science	4,154,372			3,961,623			3,613,726
Medical office	3,989,168			3,724,483			3,410,931
Gross reportable segment assets	14,051,070			14,692,941			14,801,775
Accumulated depreciation and amortization	(2,919,278		)	(2,900,060		)	(2,704,425		)
Net reportable segment assets	11,131,792			11,792,881			12,097,350
Other non-reportable segment assets	1,904,433			2,255,712			2,392,823
Assets held for sale and discontinued operations, net	417,014			927,866			5,654,326
Other non-segment assets	635,222			782,806			1,305,350
Total assets	$	14,088,461		$	15,759,265		$	21,449,849

As a result of the change in the composition of reportable segments during the fourth quarter of 2017, as further described above, the Company allocated goodwill to its revised reporting units using a relative fair value approach. The Company completed a goodwill impairment assessment for all reporting units immediately prior to the reallocation and determined that no impairment existed at September 30, 2017. Additionally, the Company completed the required annual goodwill impairment test during the fourth quarter of 2017 and no impairment was recognized. At December 31, 2017, goodwill of $47 million was allocated to segment assets as follows: (i) senior housing triple-net—$21 million, (ii) SHOP—$9 million, (iii) medical office—$11 million and (iv) other—$6 million. At December 31, 2016, goodwill of $42 million was allocated to segment assets as follows: (i) senior housing triple-net—$16 million, (ii) SHOP—$9 million, (iii) medical office—$11 million and (iv) other—$6 million.