Segment Reporting

6 Months Ended

Jun. 30, 2015

Note 8. Segment Reporting

We have four operating segments, of which three are separately reportable operating segments: (i) triple net senior living communities that we lease to operators who provide short term and long term residential care and dining services for residents, (ii) managed senior living communities that provide short term and long term residential care and dining services for residents and (iii) MOBs. Our triple net and managed senior living communities include independent living communities, assisted living communities and skilled nursing facilities, or SNFs. Properties in the MOB segment include medical office, clinic and biotech laboratory buildings. The “All Other” category in the following table includes amounts related to corporate business activities and the operating results of certain properties that offer fitness, wellness and spa services to members.


	For the Three Months Ended June 30, 2015
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated

Revenues:
Rental income	$	61,347	$	—	$	89,591	$	4,608	$	155,546
Residents fees and services		—		91,856		—		—		91,856
Total revenues		61,347		91,856		89,591		4,608		247,402

Expenses:
Property operating expenses		—		69,792		23,800		—		93,592
Depreciation		17,058		13,649		30,856		948		62,511
General and administrative		—		—		—		11,674		11,674
Acquisition related costs		—		—		—		4,617		4,617
Total expenses		17,058		83,441		54,656		17,239		172,394

Operating income (loss)		44,289		8,415		34,935		(12,631)		75,008

Interest and other income		—		—		—		142		142
Interest expense		(6,270)		(2,561)		(1,758)		(27,318)		(37,907)
Loss on early extinguishment of debt		(6)		(33)		—		—		(39)
Income (loss) before income tax expense and equity in earnings of an investee		38,013		5,821		33,177		(39,807)		37,204
Income tax expense		—		—		—		(129)		(129)
Equity in earnings of an investee		—		—		—		23		23
Income (loss) from continuing operations		38,013		5,821		33,177		(39,913)		37,098
Discontinued operations:
Loss from discontinued operations		—		—		(109)		—		(109)
Impairment of assets from discontinued operations		—		—		(602)		—		(602)
Net income (loss)	$	38,013	$	5,821	$	32,466	$	(39,913)	$	36,387

Total assets	$	2,231,685	$	1,298,982	$	3,412,125	$	405,234	$	7,348,026


	For the Three Months Ended June 30, 2014
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated

Revenues:
Rental income	$	55,166	$	—	$	68,027	$	4,476	$	127,669
Residents fees and services		—		79,039		—		—		79,039
Total revenues		55,166		79,039		68,027		4,476		206,708

Expenses:
Property operating expenses		—		60,624		19,162		—		79,786
Depreciation		15,515		8,333		21,907		948		46,703
General and administrative		—		—		—		9,577		9,577
Acquisition related costs		—		—		—		2,512		2,512
Total expenses		15,515		68,957		41,069		13,037		138,578

Operating income (loss)		39,651		10,082		26,958		(8,561)		68,130

Interest and other income		—		—		—		154		154
Interest expense		(6,472)		(2,806)		(1,507)		(23,327)		(34,112)
Income (loss) before income tax expense and equity in earnings of an investee		33,179		7,276		25,451		(31,734)		34,172
Income tax expense		—		—		—		(155)		(155)
Equity in earnings of an investee		—		—		—		118		118
Income (loss) from continuing operations		33,179		7,276		25,451		(31,771)		34,135
Discontinued operations:
Income from discontinued operations		—		—		741		—		741
Impairment of assets from discontinued operations		—		—		387		—		387
Income (loss) before gain on sale of properties		33,179		7,276		26,579		(31,771)		35,263
Gain on sale of properties		2,396		—		—		—		2,396
Net income (loss)	$	35,575	$	7,276	$	26,579	$	(31,771)		37,659

Total assets	$	1,806,867	$	922,557	$	2,967,167	$	320,264	$	6,016,855


	For the Six Months Ended June 30, 2015
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated

Revenues:
Rental income	$	116,598	$	—	$	175,592	$	9,139	$	301,329
Residents fees and services		—		174,649		—		—		174,649
Total revenues		116,598		174,649		175,592		9,139		475,978

Expenses:
Property operating expenses		—		132,195		47,191		—		179,386
Depreciation		32,183		22,109		60,030		1,896		116,218
General and administrative		—		—		—		22,248		22,248
Acquisition related costs		—		—		—		5,775		5,775
Total expenses		32,183		154,304		107,221		29,919		323,627

Operating income (loss)		84,415		20,345		68,371		(20,780)		152,351

Interest and other income		—		—		—		217		217
Interest expense		(12,255)		(4,580)		(3,525)		(53,488)		(73,848)
Loss on early extinguishment of debt		(6)		(33)		—		(1,409)		(1,448)
Income (loss) before income tax expense and equity in earnings of an investee		72,154		15,732		64,846		(75,460)		77,272
Income tax expense		—		—		—		(239)		(239)
Equity in earnings of an investee		—		—		—		95		95
Income (loss) from continuing operations		72,154		15,732		64,846		(75,604)		77,128
Discontinued operations:
Loss from discontinued operations		—		—		(350)		—		(350)
Impairment of assets from discontinued operations		—		—		(602)		—		(602)
Net income (loss)	$	72,154	$	15,732	$	63,894	$	(75,604)	$	76,176

Total assets	$	2,231,685	$	1,298,982	$	3,412,125	$	405,234	$	7,348,026


	For the Six Months Ended June 30, 2014
	Triple Net
	Leased		Managed
	Senior Living		Senior Living				All Other
	Communities		Communities		MOBs		Operations		Consolidated

Revenues:
Rental income	$	110,055	$	—	$	120,791	$	8,878	$	239,724
Residents fees and services		—		158,481		—		—		158,481
Total revenues		110,055		158,481		120,791		8,878		398,205

Expenses:
Property operating expenses		—		121,412		36,178		—		157,590
Depreciation		31,152		16,488		35,522		1,896		85,058
General and administrative		—		—		—		17,866		17,866
Acquisition related costs		—		—		—		2,635		2,635
Total expenses		31,152		137,900		71,700		22,397		263,149

Operating income (loss)		78,903		20,581		49,091		(13,519)		135,056

Interest and other income		—		—		—		258		258
Interest expense		(12,860)		(5,794)		(2,844)		(41,514)		(63,012)
Income (loss) before income tax expense and equity in earnings of an investee		66,043		14,787		46,247		(54,775)		72,302
Income tax expense		—		—		—		(346)		(346)
Equity in earnings of an investee		—		—		—		21		21
Income (loss) from continuing operations		66,043		14,787		46,247		(55,100)		71,977
Discontinued operations:
Income from discontinued operations		—		—		2,041		—		2,041
Impairment of assets from discontinued operations		—		—		(334)		—		(334)
Income (loss) before gain on sale of properties		66,043		14,787		47,954		(55,100)		73,684
Gain on sale of properties		2,552		—		—		—		2,552
Net income (loss)	$	68,595	$	14,787	$	47,954	$	(55,100)	$	76,236

Total assets	$	1,806,867	$	922,557	$	2,967,167	$	320,264	$	6,016,855

- 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

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+ Details