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Segment Information
 9 Months Ended
Sep. 30, 2015
Segment Information [Abstract]  
Segment Information
14.  Segment Information

As of September 30, 2015, the Company has five reportable segments: Retirement Centers; Assisted Living; CCRCs – Rental; Brookdale Ancillary Services; and Management Services. Operating segments are defined as components of an enterprise that engage in business activities from which it may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment.

Prior to August 29, 2014, the Company had an additional reportable segment, CCRCs - Entry Fee. On August 29, 2014, the Company contributed all but two of the legacy Brookdale entry fee CCRCs to the CCRC Venture, at which time the contributed CCRCs were deconsolidated.  The results of the entry fee CCRCs contributed to the CCRC Venture are reported in the CCRCs - Entry Fee segment for the time periods prior to being contributed to the CCRC Venture. The results of the two legacy Brookdale CCRCs that were not contributed to the CCRC Venture are included in the CCRCs - Entry Fee segment for the six month period ended June 30, 2014 and the CCRCs - Rental segment for the periods subsequent to June 30, 2014, based on how operating results are being reviewed by the chief operating decision maker following the creation of the CCRC Venture. The CCRC Venture is accounted for under the equity method of accounting.

Subsequent to September 30, 2014, one community was moved from the Retirement Centers segment to the CCRCs - Rental segment to more accurately reflect the underlying product offering of the community. The movement did not change our reportable segments, but it did impact the revenues and expenses reported within the Retirement Centers and CCRCs - Rental segments. Revenue and expenses for the three and nine months ended September 30, 2014 have not been recast.

Retirement Centers.  The Company's Retirement Centers segment includes owned or leased communities that are primarily designed for middle to upper income seniors generally age 75 and older who desire an upscale residential environment providing the highest quality of service. The majority of the Company's retirement center communities consist of both independent living and assisted living units in a single community, which allows residents to "age-in-place" by providing them with a continuum of senior independent and assisted living services.

Assisted Living.  The Company's Assisted Living segment includes owned or leased communities that offer housing and 24-hour assistance with activities of daily life to mid-acuity frail and elderly residents. Assisted living communities include both freestanding, multi-story communities and freestanding single story communities. The Company also operates memory care communities, which are freestanding assisted living communities specially designed for residents with Alzheimer's disease and other dementias.

CCRCs - Rental.  The Company's CCRCs - Rental segment includes large owned or leased communities that offer a variety of living arrangements and services to accommodate all levels of physical ability and health. Most of the Company's CCRCs have independent living, assisted living and skilled nursing available on one campus or within the immediate market, and some also include memory care/Alzheimer's units. As of September 30, 2015 and 2014, the CCRCs - Rental segment also includes three entry fee CCRCs.

CCRCs - Entry Fee.  Prior to August 29, 2014, the Company had an additional reportable segment, CCRCs - Entry Fee. The communities in the Company's former CCRCs - Entry Fee segment are similar to rental CCRCs but allow for residents in the independent living apartment units to pay a one-time upfront entrance fee, which is partially refundable in certain circumstances. In addition to the initial entrance fee, residents under all entrance fee agreements also pay a monthly service fee, which entitles them to the use of certain amenities and services.

Brookdale Ancillary Services. The Company's Brookdale Ancillary Services segment includes the outpatient therapy, home health and hospice services provided to residents of many of the Company's communities, to other senior living communities that the Company does not own or operate and to seniors living outside of the Company's communities. The Brookdale Ancillary Services segment does not include the therapy services provided in the Company's skilled nursing units, which are included in the Company's CCRCs - Rental and CCRCs - Entry Fee segments.

Management Services.  The Company's Management Services segment includes communities operated by the Company pursuant to management agreements. In some of the cases, the controlling financial interest in the community is held by third parties and, in other cases, the community is owned in a venture structure in which the Company has an ownership interest. Under the management agreements for these communities, the Company receives management fees as well as reimbursed expenses, which represent the reimbursement of expenses it incurs on behalf of the owners.

The accounting policies of the Company's reportable segments are the same as those described in the summary of significant accounting policies in Note 2.

The following table sets forth certain segment financial and operating data (dollars in thousands):

 
 
Three Months Ended September 30,
  
Nine Months Ended September 30,
 
 
 
2015
  
2014
  
2015
  
2014
 
Revenue
 
  
  
  
 
Retirement Centers(1)
 
$
164,415
  
$
155,227
  
$
492,310
  
$
421,017
 
Assisted Living(1)
  
608,393
   
516,640
   
1,837,575
   
1,071,301
 
CCRCs - Rental(1)
  
149,572
   
144,074
   
457,124
   
340,230
 
CCRCs - Entry Fee(1)
  
—
   
44,145
   
—
   
202,414
 
Brookdale Ancillary Services(1)
  
117,702
   
95,426
   
349,283
   
224,377
 
Management Services(2)
  
198,759
   
128,423
   
588,614
   
320,264
 
 
 
$
1,238,841
  
$
1,083,935
  
$
3,724,906
  
$
2,579,603
 
Segment operating income(3)
                
Retirement Centers
 
$
70,334
  
$
67,205
  
$
212,902
  
$
180,326
 
Assisted Living
  
211,213
   
188,154
   
658,078
   
397,392
 
CCRCs - Rental
  
41,395
   
34,492
   
115,826
   
87,015
 
CCRCs - Entry Fee
  
—
   
10,431
   
—
   
48,433
 
Brookdale Ancillary Services
  
17,420
   
18,146
   
57,886
   
43,804
 
Management Services
  
14,694
   
10,428
   
44,630
   
25,319
 
 
  
355,056
   
328,856
   
1,089,322
   
782,289
 
General and administrative (including non-cash stock-based compensation expense)
  
99,534
   
90,020
   
278,609
   
181,693
 
Transaction costs
  
—
   
41,572
   
7,163
   
59,224
 
Facility lease expense
  
91,144
   
91,462
   
276,953
   
231,361
 
Depreciation and amortization
  
160,715
   
178,999
   
606,787
   
320,403
 
Loss on facility lease termination
  
—
   
—
   
76,143
   
—
 
Income (loss) from operations
 
$
3,663
  
$
(73,197
)
 
$
(156,333
)
 
$
(10,392
)

 
 
As of
 
 
 
September 30,
2015
  
December 31,
2014
 
Total assets
 
  
 
Retirement Centers
 
$
1,609,486
  
$
1,607,792
 
Assisted Living
  
6,466,083
   
6,584,830
 
CCRCs - Rental
  
1,051,371
   
1,062,828
 
Brookdale Ancillary Services
  
295,141
   
275,618
 
Corporate and Management Services
  
852,879
   
990,295
 
Total assets
 
$
10,274,960
  
$
10,521,363
 

(1)All revenue is earned from external third parties in the United States.
(2)Management services segment revenue includes reimbursements for which the Company is the primary obligor of costs incurred on behalf of managed communities.
(3)Segment operating income is defined as segment revenues less segment operating expenses (excluding depreciation and amortization).