DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Disposal Groups, Including Discontinued Operations, Balance Sheet

As of the March 31, 2014 closing date of the sale of the Home Health Business, 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 and six months ended June 30, 2014 and 2013 are summarized as follows (in thousands):

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014			2013
Revenue	$	502		$	18,410	$	18,392		$	36,461
Gross profit	$	173		$	7,237	$	6,954		$	14,487
Selling, general and administrative expenses	583			5,683		7,375			11,590
Bad debt expense	237			223		900			440
Income (loss) from operations	(647		)	1,331		(1,321		)	2,457
Gain on sale before income taxes	1,072			—		2,067			—
Financial advisor fee and legal expenses	—			—		(2,875		)	—
Impairment of assets	—			—		(452		)	—
Other costs and expenses	—			—		(47		)	—
Income (loss) before income taxes	425			1,331		(2,628		)	2,457
Income tax expense (benefit)	(355		)	352		(4,186		)	585
Income (loss) from discontinued operations, net of income taxes	$	780		$	979	$	1,558		$	1,872

The operating results of the divested traditional and specialty pharmacy mail operations and community pharmacies included in discontinued operations for the three months and six months ended June 30, 2014 and 2013, are summarized below (in thousands):

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
Revenue	$	—		$	(35	)	$	—		$	(55	)
Gross profit	$	—		$	(9	)	$	(27	)	$	(77	)
Operating expenses	1,987			554			2,796			1,144
Income (loss) from discontinued operations, net of income taxes	$	(1,987	)	$	(563	)	$	(2,823	)	$	(1,221	)

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			—			2,904			2,918
Cash payments	(3,014		)	(92		)	(3,058		)	(6,164		)
Non-cash charges and adjustments	—			—			(95		)	(95		)
Balance at June 30, 2014	$	12,000		$	—		$	946		$	12,946