Segment Information

As of March 31, 2018 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.

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 and Alzheimer's units.

Brookdale Ancillary Services. The Company's Brookdale Ancillary Services segment includes the home health, hospice, and outpatient therapy services, as well as education and wellness programs, provided to residents of many of the Company's communities and to seniors living outside of the Company's communities. The Brookdale Ancillary Services segment does not include the inpatient therapy services provided in the Company's skilled nursing units, which are included in the Company's CCRCs-Rental segment.

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 selected segment financial and operating data:



	Three Months Ended March 31,
(in thousands)	2018			2017
Revenue:
Retirement Centers ⁽¹⁾	$	158,397		$	172,620
Assisted Living ⁽¹⁾	532,280			590,537
CCRCs-Rental ⁽¹⁾	105,069			141,798
Brookdale Ancillary Services ⁽¹⁾	110,520			111,972
Management Services ⁽²⁾	280,968			199,839
	$	1,187,234		$	1,216,766
Segment Operating Income: ⁽³⁾
Retirement Centers	$	64,422		$	74,002
Assisted Living	176,538			217,439
CCRCs-Rental	24,663			35,315
Brookdale Ancillary Services	8,318			15,629
Management Services	18,681			15,894
	292,622			358,279

General and administrative (including non-cash stock-based compensation expense)	76,710			65,560
Transaction costs	4,725			7,593
Facility lease expense	80,400			88,807
Depreciation and amortization	114,255			127,487
Goodwill and asset impairment	430,363			20,706
Income (loss) from operations	$	(413,831	)	$	48,126



	As of
(in thousands)	March 31, 2018		December 31, 2017
Total assets:
Retirement Centers	$	1,255,585	$	1,266,076
Assisted Living	4,134,795		4,535,114
CCRCs-Rental	637,545		667,234
Brookdale Ancillary Services	248,763		257,257
Corporate and Management Services	910,740		949,768
	$	7,187,428	$	7,675,449


(1)	All revenue is earned from external third parties in the United States.


(2)	Management services segment revenue includes management fees and reimbursements of costs incurred on behalf of managed communities.


(3)	Segment operating income is defined as segment revenues less segment facility operating expenses (excluding depreciation and amortization) and costs incurred on behalf of managed communities.