Segment Reporting

The Company conducts its business through the following six reportable segments:

•

Healthcare—The Company's healthcare segment is composed of a diverse portfolio of senior housing, skilled nursing facilities, medical office buildings, and hospitals. The Company earns rental income from senior housing, skilled nursing facilities and hospital assets that are under net leases to single tenants/operators and from medical office buildings which are both single tenant and multi-tenant. In addition, certain of the Company's senior housing properties are managed by operators under a RIDEA (REIT Investment Diversification and Empowerment Act) structure, which effectively allows the Company to gain financial exposure to underlying operations of the facility in a tax efficient manner versus receiving contractual rent under a net lease arrangement.


•	Industrial—The Company's industrial segment is composed of and primarily invests in light industrial assets throughout the U.S. that serve as the “last mile” of the logistics chain, which are vital for e-commerce and tenants that require increasingly quick delivery times. These properties are generally multi-tenant warehouses that are less than 250,000 square feet.


•	Hospitality—The Company's hospitality portfolio is composed of primarily extended stay and select service hotels located mainly in major metropolitan and high-demand suburban markets in the U.S., with the majority affiliated with top hotel brands such as Marriott and Hilton.


•	CLNC—This represents the Company's investment in Colony Credit, a commercial real estate credit REIT with a diverse portfolio consisting primarily of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities and net lease properties primarily in the U.S.

•

Other Equity and Debt—The Company's other equity and debt segment consists of a diversified group of strategic and non-strategic real estate and real estate-related debt and equity investments. Strategic investments include investments for which the Company acts as a general partner and/or manager (“GP Co-Investments”) and receives various forms of investment management economics on related third-party capital. Non-strategic investments are composed of those investments the Company does not intend to own for the long term including other real estate equity, real estate debt, and net leased assets, among other holdings.

•

Investment Management—The Company's investment management business raises, invests and manages funds on behalf of a diverse set of institutional and individual investors, for which the Company earns management fees, generally based on the amount of assets or capital managed, and contractual incentive fees or carried interest based on the performance of the investment vehicles managed subject to the achievement of minimum return hurdles.

In 2018, the Company determined that its equity interests in various investment vehicles as sponsor and general partner, which were previously included in the industrial and other equity and debt segments, would be part of its investment management segment. The reclassification of investments in unconsolidated ventures and corresponding earnings on investments in unconsolidated ventures was applied retrospectively to all prior periods presented. The reclassification was not material to segment results.

Amounts not allocated to specific segments include corporate level cash and corresponding interest income, fixed assets for administrative use, corporate level financing and related interest expense, income and expense related to cost reimbursement arrangements with certain affiliates, costs in connection with unconsummated investments, compensation expense not directly attributable to reportable segments, corporate level administrative and overhead costs as well as Merger-related transaction and integration costs.

The chief operating decision maker assesses the performance of the business based on net income (loss) of each of the reportable segments. The various reportable segments generate distinct revenue streams, consisting of property operating income, interest income and fee income. Costs which are directly attributable, or otherwise can be subjected to a reasonable and systematic allocation, have been allocated to each of the reportable segments.

Selected Segment Results of Operations

The following table presents selected results of operations of the Company's reportable segments:



(In thousands)	Healthcare			Industrial			Hospitality			CLNC			Other Equity and Debt			Investment Management			Amounts Not Allocated to Segments			Total

Year Ended December 31, 2018
Total revenues	$	592,455		$	290,956		$	849,513		$	—		$	739,167		$	183,946		$	9,239		$	2,665,276
Property operating expenses	271,166			83,003			563,453			—			316,037			—			—			1,233,659
Interest expense	194,898			42,713			153,395			—			150,032			—			54,513			595,551
Depreciation and amortization	164,389			129,104			144,528			—			99,525			28,653			6,207			572,406
Provision for loan losses	213			—			—			—			42,821			—			—			43,034
Impairment loss	217,524			948			72,469			—			79,432			217,850			—			588,223
Gain on sale of real estate	—			7,633			—			—			159,598			—			—			167,231
Equity method earnings (losses)	—			—			—			(65,366		)	99,400			(43,435		)	—			(9,401		)
Equity method earnings—carried interest	—			—			—			—			—			19,961			—			19,961
Income tax benefit (expense)	(4,991		)	(40		)	9,875			—			(4,298		)	59,030			205			59,781
Income (loss) from continuing operations	(283,516		)	26,749			(90,581		)	(65,366		)	268,870			(128,255		)	(222,974		)	(495,073		)
Loss from discontinued operations	—			—			—			—			(102		)	—			—			(102		)
Net income (loss)	(283,516		)	26,749			(90,581		)	(65,366		)	268,768			(128,255		)	(222,974		)	(495,175		)
Net income (loss) attributable to Colony Capital, Inc.	(199,277		)	4,246			(82,798		)	(61,457		)	143,065			(120,286		)	(203,100		)	(519,607		)



(In thousands)	Healthcare			Industrial			Hospitality			CLNC		Other Equity and Debt			Investment Management			Amounts Not Allocated to Segments			Total

Year Ended December 31, 2017
Total revenues	$	613,169		$	243,172		$	815,831		$	—	$	873,046		$	244,654		$	6,862		$	2,796,734
Property operating expenses	274,528			67,196			537,884			—		233,901			—			—			1,113,509
Interest expense	185,256			38,566			134,729			—		161,993			—			54,278			574,822
Depreciation and amortization	183,897			109,265			133,269			—		128,942			56,616			5,790			617,779
Provision for loan losses	1,588			—			—			—		18,153			—			—			19,741
Impairment loss	14,375			44			—			—		30,867			375,074			—			420,360
Gain on sale of real estate	—			24,612			—			—		112,758			—			—			137,370
Equity method earnings	—			—			—			—		265,079			20,072			—			285,151
Income tax benefit (expense)	(5,639		)	(2,252		)	(2,779		)	—		(3,950		)	111,205			1,814			98,399
Income (loss) from continuing operations	(64,767		)	37,497			(9,863		)	—		567,752			(170,168		)	(438,619		)	(78,168		)
Income from discontinued operations	—			—			—			—		995			—			12,560			13,555
Net income (loss)	(64,767		)	37,497			(9,863		)	—		568,747			(170,168		)	(426,059		)	(64,613		)
Net income (loss) attributable to Colony Capital, Inc.	(51,428		)	12,537			(9,199		)	—		426,052			(182,038		)	(393,815		)	(197,891		)
Year Ended December 31, 2016
Total revenues	$	—		$	196,357		$	—		$	—	$	569,780		$	68,331		$	4,389		$	838,857
Property operating expenses	—			55,924			—			—		62,537			—			—			118,461
Interest expense	—			44,834			—			—		80,503			—			44,746			170,083
Depreciation and amortization	—			88,854			—			—		63,480			14,767			4,581			171,682
Provision for loan losses	—			—			—			—		35,005			—			—			35,005
Impairment loss	—			407			—			—		10,990			320			—			11,717
Gain on sale of real estate	—			2,888			—			—		70,728			—			—			73,616
Equity method earnings	—			—			—			—		97,188			2,187			—			99,375
Income tax benefit (expense)	—			(586		)	—			—		(10,143		)	6,608			(661		)	(4,782		)
Net income (loss)	—			(3,003		)	—			—		431,903			21,229			(159,403		)	290,726
Net income (loss) attributable to Colony Capital, Inc.	—			(911		)	—			—		226,202			17,903			(127,876		)	115,318

Total assets and equity method investments of the reportable segments are summarized as follows:



(In thousands)	Healthcare		Industrial		Hospitality		CLNC		Other Equity and Debt		Investment Management		Amounts Not Allocated to Segments		Total
December 31, 2018
Total assets	$	5,395,550	$	3,185,906	$	3,980,988	$	1,037,754	$	6,371,999	$	1,983,911	$	259,141	$	22,215,249
Equity method investments	—		—		—		1,037,754		1,054,295		194,304		3,742		2,290,095
December 31, 2017
Total assets	$	5,813,552	$	2,810,135	$	4,094,596	$	—	$	9,251,963	$	2,714,840	$	100,564	$	24,785,650
Equity method investments	—		—		—		—		1,315,670		207,642		3,742		1,527,054

Geography

Geographic information about the Company's total income and long-lived assets are as follows. Geography is generally presented as the location in which the income producing assets reside or the location in which income generating services are performed.



	Year Ended December 31,
(In thousands)	2018		2017		2016
Total income by geography:
United States	$	2,311,230	$	2,741,862	$	732,928
Europe	329,609		310,783		194,923
Other	302		3,610		6,083
Total ⁽¹⁾	$	2,641,141	$	3,056,255	$	933,934



(In thousands)	December 31, 2018		December 31, 2017
Long-lived assets by geography:
United States	$	12,454,871	$	13,244,197
Europe	1,600,623		1,749,282
Total ⁽²⁾	$	14,055,494	$	14,993,479

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⁽¹⁾	Total income includes earnings from investments in unconsolidated ventures and excludes cost reimbursement income from affiliates.


⁽²⁾	Long-lived assets comprise real estate, real estate related intangible assets, and fixed assets, and exclude financial instruments, assets held for sale and investment management related intangible assets.