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, and U.K. investments. The accounting policies of the segments are the same as those described under Summary of Significant Accounting Policies (see Note 2).

During the years ended December 31, 2018, 2017 and 2016, 22, 25 and 17 senior housing triple-net facilities, respectively, were transferred to the Company’s SHOP segment. When an asset is transferred from one segment to another, the results associated with that asset are included in the original segment until the date of transfer. Results generated after the transfer date are included in the new segment.

The Company evaluates performance based upon: (i) property net operating income from continuing operations (“NOI”) and (ii) Adjusted NOI. NOI is defined as real estate revenues (inclusive of rental and related revenues, resident fees and services, and income from direct financing leases), less property level operating expenses (which exclude transition costs); NOI excludes all other financial statement amounts included in net income (loss). 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, actuarial reserves for insurance claims that have been incurred but not reported and the impact of deferred community fee income and expense. NOI and Adjusted NOI exclude the Company's share of income (loss) generated by unconsolidated joint ventures, which is recognized in equity income (loss) from unconsolidated joint ventures in the consolidated statements of operations.

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 20 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, 2018:



Segments	Senior Housing Triple-Net			SHOP			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Real estate revenues⁽¹⁾	$	276,091		$	547,976		$	395,064		$	509,019		$	108,133		$	—		$	1,836,283
Operating expenses	(3,618		)	(414,312		)	(91,742		)	(189,859		)	(5,507		)	—			(705,038		)
NOI	272,473			133,664			303,322			319,160			102,626			—			1,131,245
Adjustments to NOI⁽²⁾	2,127			2,875			(9,589		)	(2,899		)	(4,418		)	—			(11,904		)
Adjusted NOI	274,600			136,539			293,733			316,261			98,208			—			1,119,341
Addback adjustments	(2,127		)	(2,875		)	9,589			2,899			4,418			—			11,904
Interest income	—			—			—			—			10,406			—			10,406
Interest expense	(2,404		)	(2,725		)	(316		)	(474		)	(1,469		)	(258,955		)	(266,343		)
Depreciation and amortization	(79,605		)	(104,405		)	(140,480		)	(193,710		)	(31,299		)	—			(549,499		)
General and administrative	—			—			—			—			—			(96,702		)	(96,702		)
Transaction costs	—			—			—			—			—			(10,772		)	(10,772		)
Recoveries (impairments), net	—			(44,343		)	(7,639		)	—			(3,278		)	—			(55,260		)
Gain (loss) on sales of real estate, net	641			93,977			806,184			4,428			20,755			—			925,985
Loss on debt extinguishment	—			—			—			—			—			(44,162		)	(44,162		)
Other income (expense), net	—			—			—			—			9,605			3,711			13,316
Income tax benefit (expense)	—			—			—			—			—			17,854			17,854
Equity income (loss) from unconsolidated joint ventures	—			—			—			—			(2,594		)	—			(2,594		)
Net income (loss)	$	191,105		$	76,168		$	961,071		$	129,404		$	104,752		$	(389,026	)	$	1,073,474

_______________________________________


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


(2)	Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, deferral of community fees, net and termination fees.

For the year ended December 31, 2017:



Segments	Senior Housing Triple-Net			SHOP			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Real estate 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 joint ventures	—			—			—			—			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, resident fees and services, and income from DFLs.


(2)	Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, 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
Real estate 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 joint ventures	—			—			—			—			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, resident fees and services, and income from DFLs.


(2)	Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, 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	2018		2017		2016
Senior housing triple-net	$	276,091	$	313,547	$	423,118
SHOP	547,976		525,473		686,822
Life science	395,064		358,816		358,537
Medical office	509,019		477,459		446,280
Other non-reportable segments	118,539		173,083		214,537
Total revenues	$	1,846,689	$	1,848,378	$	2,129,294

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



	December 31,
Segments	2018			2017			2016
Senior housing triple-net	$	2,965,679		$	3,515,400		$	3,871,720
SHOP	2,173,795			2,392,130			3,135,115
Life science	4,303,471			4,154,372			3,961,623
Medical office	4,354,441			3,989,168			3,724,483
Reportable segment assets	13,797,386			14,051,070			14,692,941
Accumulated depreciation and amortization	(2,915,592		)	(2,919,278		)	(2,900,060		)
Net reportable segment assets	10,881,794			11,131,792			11,792,881
Other non-reportable segment assets	1,015,854			1,904,433			2,255,712
Assets held for sale, net	108,086			417,014			927,866
Other non-segment assets	712,819			635,222			782,806
Total assets	$	12,718,553		$	14,088,461		$	15,759,265

The Company completed the required annual goodwill impairment test during the fourth quarter of 2018, 2017 and 2016, and no impairment was recognized. At December 31, 2018 and 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.