DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of Disposal Groups, Including Discontinued Operations, Balance Sheet

On March 31, 2014, the carrying value of the net assets of the Subject Companies was as follows (in thousands):

	Carrying Value
Net accounts receivable	$	12,597
Prepaid expenses and other current assets	242
Total current assets	12,839
Property and equipment, net	402
Goodwill	33,784
Intangible assets	15,400
Other non-current assets	28
Total assets	62,453
Accounts payable	673
Amounts due to plan sponsors	229
Accrued expenses and other current liabilities	3,008
Total liabilities	3,910
Net assets	$	58,543

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement

The operating results included in discontinued operations of the Home Health Business for the three months ended March 31, 2014 and 2013 are summarized as follows (in thousands):

	Three Months Ended March 31,
	2014			2013
Revenue	$	17,541		$	17,942
Gross profit	$	6,739		$	7,255
Selling, general and administrative expenses	6,589			5,785
Bad debt expense	658			217
Income (loss) from operations	(508		)	1,253
Gain on sale before income taxes	995			—
Broker's fee and legal expenses	2,875			—
Impairment of assets	452			—
Other costs and expenses	47			—
Income (loss) before income taxes	(2,887		)	1,253
Income tax expense (benefit)	(3,832		)	519
Income (loss) from discontinued operations, net of income taxes	$	945		$	734

Pharmacy Services Assets Sale

charges associated with exit or disposal activity

The accrual activity consisted of the following (in thousands):

	Legal Settlement			Employee Severance and Other Benefits			Other Costs			Total
Balance at December 31, 2013	$	15,000		$	92		$	1,195		$	16,287
Expenses	14			—			975			989
Cash payments	(3,014		)	(92		)	(1,321		)	(4,427		)
Non-cash charges and adjustments	—			—			(152		)	(152		)
Balance at March 31, 2014	$	12,000		$	—		$	697		$	12,697