NOTE 5. SEGMENTS

The Company reports its operations in three segments: Skilled Nursing Facility (“SNF”), Assisted Living Facility (“ALF”), and Corporate & Other. The SNF and ALF segments provide services to individuals needing long-term care in a nursing home or assisted living setting, and the management of those facilities. The Corporate & Other segment engages in the management of facilities and accounting and IT services. We evaluate financial performance and allocate resources primarily based upon segment operating income (loss). Segment operating results excludes interest expense and other non-operating income and expenses. The table below sets forth our segment information for the three and nine months ended September 30, 2012 and 2011.

					Corporate
(Amounts in 000’s)	SNF		ALF		& Other			Eliminations			Total
Three months ended September 30, 2012 Restated (Note 2)
Net revenues	$	54,408	$	3,364	$	3,505		$	(2,918	)	$	58,359
Cost of services	48,801		2,445		280			(2,918		)	48,608
General and administrative	—		—		3,998			—			3,998
Facility rent expense	2,039		—		41			—			2,080
Depreciation and amortization	1,407		224		298			—			1,929
Salary retirement and continuation costs	—		—		38			—			38
Operating income/(loss)	$	2,161	$	695	$	(1,150	)	$	—		$	1,706

Three months ended September 30, 2011
Net revenues	$	37,729	$	2,463	$	2,349		$	(2,019	)	$	40,522
Cost of services	32,856		1,885		(85		)	(2,019		)	32,637
General and administrative	—		—		3,267			—			3,267
Facility rent expense	1,937		—		—			—			1,937
Depreciation and amortization	631		158		47			—			836
Operating income/(loss)	$	2,305	$	420	$	(880	)	$	—		$	1,845

Nine months ended September 30, 2012 Restated (Note 2)
Net revenues	$	145,305	$	10,038	$	9,487		$	(7,849	)	$	156,981
Cost of services	127,842		7,420		318			(7,849		)	127,731
General and administrative	—		—		12,336			—			12,336
Facility rent expense	6,065		—		130			—			6,195
Depreciation and amortization	3,939		653		641			—			5,233
Salary retirement and continuation costs	—		—		38			—			38
Operating income/(loss)	$	7,459	$	1,965	$	(3,976	)	$	—		$	5,448
Total assets, September 30, 2012	$	154,022	$	29,211	$	48,723		$	(10,696	)	$	221,260

Nine months ended September 30, 2011
Net revenues	$	97,382	$	7,214	$	7,646		$	(6,334	)	$	105,908
Cost of services	85,419		5,740		91			(6,334		)	84,916
General and administrative	—		—		9,358			—			9,358
Facility rent expense	5,787		—		—			—			5,787
Depreciation and amortization	1,595		470		123			—			2,188
Salary retirement and continuation costs	—		—		622			—			622
Operating income/(loss)	$	4,581	$	1,004	$	(2,548	)	$	—		$	3,037
Total assets, December 31, 2011	$	110,532	$	22,328	$	35,792		$	(9,548	)	$	159,104