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Segment Disclosures | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Segment Disclosures | 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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