NOTE 16—SEGMENT INFORMATION

As of June 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 June 30, 2017
	Triple-Net Leased Properties		Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	213,258	$	—		$	186,240	$	—		$	399,498
Resident fees and services	—		460,243			—		—			460,243
Office building and other services revenue	1,125		—			1,848		206			3,179
Income from loans and investments	—		—			—		32,368			32,368
Interest and other income	—		—			—		202			202
Total revenues	$	214,383	$	460,243		$	188,088	$	32,776		$	895,490
Total revenues	$	214,383	$	460,243		$	188,088	$	32,776		$	895,490
Less:
Interest and other income	—		—			—		202			202
Property-level operating expenses	—		308,625			57,205		—			365,830
Office building services costs	—		—			552		—			552
Segment NOI	214,383		151,618			130,331		32,574			528,906
Income (loss) from unconsolidated entities	377		(381		)	298		(400		)	(106		)
Segment profit	$	214,760	$	151,237		$	130,629	$	32,174		528,800
Interest and other income											202
Interest expense											(113,572		)
Depreciation and amortization											(224,108		)
General, administrative and professional fees											(33,282		)
Loss on extinguishment of debt, net											(36		)
Merger-related expenses and deal costs											(6,043		)
Other											(1,848		)
Income tax benefit											2,159
Income from continuing operations											$	152,272



	For the Three Months Ended June 30, 2016
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	210,119	$	—	$	144,087	$	—	$	354,206
Resident fees and services	—		464,437		—		—		464,437
Office building and other services revenue	1,231		—		3,369		904		5,504
Income from loans and investments	—		—		—		24,146		24,146
Interest and other income	—		—		—		111		111
Total revenues	$	211,350	$	464,437	$	147,456	$	25,161	$	848,404
Total revenues	$	211,350	$	464,437	$	147,456	$	25,161	$	848,404
Less:
Interest and other income	—		—		—		111		111
Property-level operating expenses	—		307,989		43,966		—		351,955
Office building services costs	—		—		1,852		—		1,852
Segment NOI	211,350		156,448		101,638		25,050		494,486
Income from unconsolidated entities	825		336		173		84		1,418
Segment profit	$	212,175	$	156,784	$	101,811	$	25,134	495,904
Interest and other income									111
Interest expense									(103,665		)
Depreciation and amortization									(221,961		)
General, administrative and professional fees									(32,094		)
Loss on extinguishment of debt, net									(2,468		)
Merger-related expenses and deal costs									(7,224		)
Other									(2,303		)
Income tax benefit									11,549
Income from continuing operations									$	137,849



	For the Six Months Ended June 30, 2017
	Triple-Net Leased Properties		Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	422,585	$	—		$	372,135	$	—		$	794,720
Resident fees and services	—		924,431			—		—			924,431
Office building and other services revenue	2,330		—			3,779		476			6,585
Income from loans and investments	—		—			—		52,514			52,514
Interest and other income	—		—			—		683			683
Total revenues	$	424,915	$	924,431		$	375,914	$	53,673		$	1,778,933
Total revenues	$	424,915	$	924,431		$	375,914	$	53,673		$	1,778,933
Less:
Interest and other income	—		—			—		683			683
Property-level operating expenses	—		620,698			114,119		—			734,817
Office building services costs	—		—			1,290		—			1,290
Segment NOI	424,915		303,733			260,505		52,990			1,042,143
Income (loss) from unconsolidated entities	3,646		(457		)	633		(778		)	3,044
Segment profit	$	428,561	$	303,276		$	261,138	$	52,212		1,045,187
Interest and other income											683
Interest expense											(222,376		)
Depreciation and amortization											(441,891		)
General, administrative and professional fees											(67,243		)
Loss on extinguishment of debt, net											(345		)
Merger-related expenses and deal costs											(8,099		)
Other											(3,036		)
Income tax benefit											5,304
Income from continuing operations											$	308,184



	For the Six Months Ended June 30, 2016
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	424,606	$	—	$	288,223	$	—	$	712,829
Resident fees and services	—		928,413		—		—		928,413
Office building and other services revenue	2,430		—		8,345		1,914		12,689
Income from loans and investments	—		—		—		46,532		46,532
Interest and other income	—		—		—		230		230
Total revenues	$	427,036	$	928,413	$	296,568	$	48,676	$	1,700,693
Total revenues	$	427,036	$	928,413	$	296,568	$	48,676	$	1,700,693
Less:
Interest and other income	—		—		—		230		230
Property-level operating expenses	—		620,530		87,647		—		708,177
Office building services costs	—		—		5,303		—		5,303
Segment NOI	427,036		307,883		203,618		48,446		986,983
Income from unconsolidated entities	154		673		47		346		1,220
Segment profit	$	427,190	$	308,556	$	203,665	$	48,792	988,203
Interest and other income									230
Interest expense									(206,938		)
Depreciation and amortization									(458,348		)
General, administrative and professional fees									(63,820		)
Loss on extinguishment of debt, net									(2,782		)
Merger-related expenses and deal costs									(8,856		)
Other									(6,471		)
Income tax benefit									19,970
Income from continuing operations									$	261,188

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



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	48,143	$	15,949	$	141,952	$	56,650
Senior living operations	30,056		24,808		51,381		43,802
Office operations	51,390		38,192		245,386		50,605
Total capital expenditures	$	129,589	$	78,949	$	438,719	$	151,057

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 June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
	(In thousands)
Revenues:
United States	$	844,623	$	797,394	$	1,677,443	$	1,601,595
Canada	44,412		44,045		89,008		85,174
United Kingdom	6,455		6,965		12,482		13,924
Total revenues	$	895,490	$	848,404	$	1,778,933	$	1,700,693



	As of June 30, 2017		As of December 31, 2016
	(In thousands)
Net real estate property:
United States	$	19,190,206	$	19,105,939
Canada	1,056,233		1,037,105
United Kingdom	293,327		251,710
Total net real estate property	$	20,539,766	20,394,754