Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment net revenues by major payer source

Segment net revenues by major payer source were as follows (in millions):



	Third Quarter
	2013						2012
	Home Health		Hospice		Total		Home Health		Hospice		Total
Medicare	$	191.8	$	163.8	$	355.6	$	185.0	$	177.4	$	362.4
Medicaid and Local Government	10.8		6.6		17.4		12.2		6.9		19.1
Commercial Insurance and Other:
Paid at episodic rates	15.1		—		15.1		21.4		—		21.4
Other	17.2		5.2		22.4		16.1		5.4		21.5
Total net revenues	$	234.9	$	175.6	$	410.5	$	234.7	$	189.7	$	424.4



	First Nine Months
	2013						2012
	Home Health		Hospice		Total		Home Health		Hospice		Total
Medicare	$	577.7	$	498.8	$	1,076.5	$	561.7	$	539.0	$	1,100.7
Medicaid and Local Government	33.1		21.3		54.4		35.7		21.2		56.9
Commercial Insurance and Other:
Paid at episodic rates	43.3		—		43.3		62.8		—		62.8
Other	52.0		14.3		66.3		50.1		17.3		67.4
Total net revenues	$	706.1	$	534.4	$	1,240.5	$	710.3	$	577.5	$	1,287.8

Segment information about the Company's operations

Segment information about the Company’s operations is as follows (in thousands):



	Home Health			Hospice			Total
For the three months ended September 30, 2013
Net revenue	$	234,864		$	175,628		$	410,492
Operating contribution	$	31,922	(1)	$	22,365		$	54,287
Corporate expenses							(20,672		)	(1)
Depreciation and amortization							(4,421		)
Interest expense and other, net							(22,342		)
Income before income taxes and equity in earnings of affiliate							$	6,852

For the three months ended September 30, 2012
Net revenue	$	234,670		$	189,774		$	424,444
Operating contribution	$	32,268		$	34,798		$	67,066
Corporate expenses							(21,065		)	(1)
Goodwill, intangibles and other long-lived asset impairment							(19,132		)	(2)
Depreciation and amortization							(6,653		)
Interest expense and other, net							(22,894		)
Loss before income taxes and equity in earnings of affiliate							$	(2,678	)

For the nine months ended September 30, 2013
Net revenue	$	706,141		$	534,366		$	1,240,507
Operating contribution	$	92,027	(1)	$	76,223	(1)	$	168,250
Corporate expenses							(57,443		)	(1)
Goodwill, intangibles and other long-lived asset impairment							(224,320		)	(2)
Depreciation and amortization							(13,932		)
Interest expense and other, net							(66,783		)
Loss before income taxes and equity in earnings of affiliate							$	(194,228	)
Segment assets	$	249,313		$	624,819	(2)	$	874,132
Corporate assets							377,936			(2)
Total assets							$	1,252,068

For the nine months ended September 30, 2012
Net revenue	$	710,321		$	577,466		$	1,287,787
Operating contribution	$	94,527	(1)	$	102,426	(1)	$	196,953
Corporate expenses							(66,120		)	(1)
Goodwill, intangibles and other long-lived asset impairment							(19,132		)	(2)
Depreciation and amortization							(21,375		)
Gain on sale of businesses							5,447
Interest expense and other, net							(67,051		)	(3)
Income before income taxes and equity in earnings of affiliate							$	28,722
Segment assets	$	242,217	(2)	$	864,139	(2)	$	1,106,356
Corporate assets							377,858
Total assets							$	1,484,214

(1)

For the third quarter and first nine months of 2013, the Company recorded charges relating to cost savings initiatives and other restructuring costs, acquisition and integration costs and legal settlements of $1.7 million and $2.6 million, respectively. For the third quarter and first nine months of 2012, the Company recorded charges relating to cost savings initiatives and other restructuring costs, acquisition and integration costs and legal settlements of $0.1 million and $5.5 million, respectively.

The charges were reflected as follows for segment reporting purposes (in millions):



	Third Quarter				First Nine Months
	2013		2012		2013		2012
Home Health	$	0.1	$	—	$	0.1	$	5.7
Hospice	—		—		0.7		0.1
Corporate expenses	1.6		0.1		1.8		(0.3		)
Total	$	1.7	$	0.1	$	2.6	$	5.5

(2)

At March 31, 2013, the Company performed an interim impairment test of its Hospice reporting unit. Based on the results of the interim impairment test, the Company recorded a non-cash impairment charge relating to goodwill of approximately $220.8 million. As part of that analysis, the Company reviewed the valuation of its owned real estate utilized in the Hospice business. The analysis indicated that two of the Company's hospice inpatient units had estimated fair values lower than their carrying values and, as such, the Company recorded a non-cash impairment charge of approximately $1.9 million. See Note 9.

In addition, the Company conducted an evaluation of the various systems used to support its field operations. In connection with that review, the Company made a strategic decision to replace its business intelligence software platform and, as such, recorded a non-cash impairment charge, related to developed software, of approximately $1.6 million.

Hospice and corporate assets were reduced by $220.8 million and $3.5 million, respectively, as a result of the impairment.

For both the third quarter and first nine months of 2012, the Company recorded non-cash impairment charges associated with a write-off of its trade name intangibles of $19.1 million in connection with the Company's initiative to re-brand its operations under the Gentiva name. Home Health and Hospice assets were reduced by $6.0 million and $13.1 million, respectively, as of September 30, 2012 as a result of the impairment.


(3)	For the first nine months of 2012, interest expense and other, net included charges of $0.5 million relating to the write-off of deferred debt issuance costs associated with the revolving credit facility. See Note 2 for additional information.

Schedule of Segment Reporting Cost Allocation to Segment [Table Text Block]

The charges were reflected as follows for segment reporting purposes (in millions):



	Third Quarter				First Nine Months
	2013		2012		2013		2012
Home Health	$	0.1	$	—	$	0.1	$	5.7
Hospice	—		—		0.7		0.1
Corporate expenses	1.6		0.1		1.8		(0.3		)
Total	$	1.7	$	0.1	$	2.6	$	5.5

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details