Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select’s 6.375% Senior Notes

Select’s 6.375% senior notes are fully and unconditionally and jointly and severally guaranteed, except for customary limitations, on a senior basis by all of Select’s wholly owned subsidiaries (the “Subsidiary Guarantors”). The Subsidiary Guarantors are defined as subsidiaries where Select, or a subsidiary of Select, holds all of the outstanding ownership interests. Certain of Select’s subsidiaries did not guarantee the 6.375% senior notes (the “Non-Guarantor Subsidiaries” and Concentra Group Holdings and its subsidiaries, or “Non-Guarantor Concentra”).

Select conducts a significant portion of its business through its subsidiaries. Presented below is condensed consolidating financial information for Select, the Subsidiary Guarantors, the Non-Guarantor Subsidiaries, and Non-Guarantor Concentra at December 31, 2016 and 2017 and for the years ended December 31, 2015, 2016, and 2017.

The equity method has been used by Select with respect to investments in subsidiaries. The equity method has been used by Subsidiary Guarantors with respect to investments in Non-Guarantor Subsidiaries. Separate financial statements for Subsidiary Guarantors are not presented.

Certain reclassifications have been made to prior reported amounts in order to conform to the current year guarantor structure.

Select Medical Corporation

Condensed Consolidating Balance Sheet

December 31, 2017



	Select (Parent Company Only)			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Non-Guarantor Concentra		Eliminations				Consolidated Select Medical Corporation
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	73		$	4,856	$	4,561		$	113,059	$	—			$	122,549
Accounts receivable, net	—			445,942		126,279			119,511		—				691,732
Intercompany receivables	—			1,595,692		62,990			—		(1,658,682		)	(a)	—
Prepaid income taxes	22,704			5,703		31			2,949		—				31,387
Other current assets	13,021			29,547		13,693			18,897		—				75,158
Total Current Assets	35,798			2,081,740		207,554			254,416		(1,658,682		)		920,826
Property and equipment, net	39,836			622,445		79,653			170,657		—				912,591
Investment in affiliates	4,521,865			128,319		—			—		(4,650,184		)	(b)(c)	—
Goodwill	—			2,108,270		—			674,542		—				2,782,812
Identifiable intangible assets, net	—			103,913		5,200			217,406		—				326,519
Other assets	36,494			98,492		35,523			23,898		(9,989		)	(e)	184,418
Total Assets	$	4,633,993		$	5,143,179	$	327,930		$	1,340,919	$	(6,318,855	)		$	5,127,166
LIABILITIES AND EQUITY
Current Liabilities:
Overdrafts	$	29,463		$	—	$	—		$	—	$	—			$	29,463
Current portion of long-term debt and notes payable	16,635			740		2,212			2,600		—				22,187
Accounts payable	12,504			85,096		17,868			12,726		—				128,194
Intercompany payables	1,595,692			62,990		—			—		(1,658,682		)	(a)	—
Accrued payroll	16,736			98,834		4,872			40,120		—				160,562
Accrued vacation	4,083			58,043		12,607			18,142		—				92,875
Accrued interest	17,479			7		6			2,393		—				19,885
Accrued other	39,219			57,121		12,856			33,970		—				143,166
Income taxes payable	—			1,190		142			7,739		—				9,071
Total Current Liabilities	1,731,811			364,021		50,563			117,690		(1,658,682		)		605,403
Long-term debt, net of current portion	2,042,555			127		24,730			610,303		—				2,677,715
Non-current deferred tax liability	—			88,376		780			45,750		(9,989		)	(e)	124,917
Other non-current liabilities	36,259			56,718		8,141			44,591		—				145,709
Total Liabilities	3,810,625			509,242		84,214			818,334		(1,668,671		)		3,553,744
Redeemable non-controlling interests	—			—		—			16,270		624,548			(d)	640,818
Stockholder’s Equity:
Common stock	0			—		—			—		—				0
Capital in excess of par	947,370			—		—			—		—				947,370
Retained earnings (accumulated deficit)	(124,002		)	1,415,978		(33,368		)	64,626		(1,447,236		)	(c)(d)	(124,002		)
Subsidiary investment	—			3,217,959		277,084			437,779		(3,932,822		)	(b)(d)	—
Total Select Medical Corporation Stockholder’s Equity	823,368			4,633,937		243,716			502,405		(5,380,058		)		823,368
Non-controlling interests	—			—		—			3,910		105,326			(d)	109,236
Total Equity	823,368			4,633,937		243,716			506,315		(5,274,732		)		932,604
Total Liabilities and Equity	$	4,633,993		$	5,143,179	$	327,930		$	1,340,919	$	(6,318,855	)		$	5,127,166

_______________________________________________________________________________


(a)	Elimination of intercompany.


(b)	Elimination of investments in consolidated subsidiaries.


(c)	Elimination of investments in consolidated subsidiaries’ earnings.


(d)	Reclassification of equity attributable to non-controlling interests.


(e)	Reclassification of non-current deferred tax asset to report net non-current deferred tax liability in consolidation.

Select Medical Corporation

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2017



	Select (Parent Company Only)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Non-Guarantor Concentra			Eliminations				Consolidated Select Medical Corporation
	(in thousands)
Net operating revenues	$	700		$	2,711,321		$	697,547		$	1,034,035		$	—			$	4,443,603
Costs and expenses:
Cost of services	2,585			2,283,360			591,641			856,590			—				3,734,176
General and administrative	111,069			159			—			2,819			—				114,047
Bad debt expense	—			44,080			14,534			20,877			—				79,491
Depreciation and amortization	7,540			76,268			14,258			61,945			—				160,011
Total costs and expenses	121,194			2,403,867			620,433			942,231			—				4,087,725
Income (loss) from operations	(120,494		)	307,454			77,114			91,804			—				355,878
Other income and expense:
Intercompany interest and royalty fees	32,828			(17,864		)	(14,964		)	—			—				—
Intercompany management fees	220,601			(180,697		)	(39,904		)	—			—				—
Loss on early retirement of debt	(19,719		)	—			—			—			—				(19,719		)
Equity in earnings of unconsolidated subsidiaries	—			20,973			81			—			—				21,054
Non-operating loss	—			(49		)	—			—			—				(49		)
Interest income (expense)	(124,406		)	381			(170		)	(30,508		)	—				(154,703		)
Income (loss) from operations before income taxes	(11,190		)	130,198			22,157			61,296			—				202,461
Income tax expense (benefit)	(8,753		)	(3,178		)	1,186			(7,439		)	—				(18,184		)
Equity in earnings of consolidated subsidiaries	179,621			13,588			—			—			(193,209		)	(a)	—
Net income	177,184			146,964			20,971			68,735			(193,209		)		220,645
Less: Net income attributable to non-controlling interests	—			—			6,736			36,725			—				43,461
Net income attributable to Select Medical Corporation	$	177,184		$	146,964		$	14,235		$	32,010		$	(193,209	)		$	177,184

_______________________________________________________________________________


(a)	Elimination of equity in earnings of consolidated subsidiaries.

Select Medical Corporation

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2017



	Select (Parent Company Only)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Non-Guarantor Concentra			Eliminations				Consolidated Select Medical Corporation
	(in thousands)
Operating activities
Net income	$	177,184		$	146,964		$	20,971		$	68,735		$	(193,209	)	(a)	$	220,645
Adjustments to reconcile net income to net cash provided by operating activities:
Distributions from unconsolidated subsidiaries	—			19,940			66			—			—				20,006
Depreciation and amortization	7,540			76,268			14,258			61,945			—				160,011
Provision for bad debts	—			44,080			14,534			20,877			—				79,491
Equity in earnings of unconsolidated subsidiaries	—			(20,973		)	(81		)	—			—				(21,054		)
Equity in earnings of consolidated subsidiaries	(179,621		)	(13,588		)	—			—			193,209			(a)	—
Loss on extinguishment of debt	6,527			—			—			—			—				6,527
Loss (gain) on sale of assets and businesses	(939		)	(4,828		)	(4,602		)	20			—				(10,349		)
Stock compensation expense	18,291			—			—			993			—				19,284
Amortization of debt discount, premium and issuance costs	7,895			—			—			3,235			—				11,130
Deferred income taxes	14,041			(40,788		)	156			(45,733		)	—				(72,324		)
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	—			(126,451		)	(43,043		)	(27,697		)	—				(197,191		)
Other current assets	(1,068		)	4,411			(3,697		)	1,951			—				1,597
Other assets	168			(4,235		)	3,413			(232		)	—				(886		)
Accounts payable	1,450			2,534			828			(909		)	—				3,903
Accrued expenses	(25,396		)	2,168			13,244			27,325			—				17,341
Net cash provided by operating activities	26,072			85,502			16,047			110,510			—				238,131
Investing activities
Business combinations, net of cash acquired	—			(10,006		)	(1,664		)	(15,720		)	—				(27,390		)
Purchases of property and equipment	(30,413		)	(136,075		)	(37,843		)	(28,912		)	—				(233,243		)
Investment in businesses	—			(12,682		)	—			—			—				(12,682		)
Proceeds from sale of assets and businesses	45,788			15,022			19,537			3			—				80,350
Net cash provided by (used in) investing activities	15,375			(143,741		)	(19,970		)	(44,629		)	—				(192,965		)
Financing activities
Borrowings on revolving facilities	970,000			—			—			—			—				970,000
Payments on revolving facilities	(960,000		)	—			—			—			—				(960,000		)
Proceeds from term loans	1,139,487			—			—			—			—				1,139,487
Payments on term loans	(1,156,377		)	—			—			(23,065		)	—				(1,179,442		)
Revolving facility debt issuance costs	(4,392		)	—			—			—			—				(4,392		)
Borrowings of other debt	25,630			—			18,224			2,767			—				46,621
Principal payments on other debt	(13,748		)	(456		)	(3,036		)	(3,407		)	—				(20,647		)
Dividends paid to Holdings	(4,753		)	—			—			—			—				(4,753		)
Equity investment by Holdings	2,017			—			—			—			—				2,017
Intercompany	(40,410		)	57,204			(16,794		)	—			—				—
Decrease in overdrafts	(9,899		)	—			—			—			—				(9,899		)
Proceeds from issuance of non-controlling interests	—			—			9,982			—			—				9,982
Purchase of non-controlling interests	—			(120		)	—			—			—				(120		)
Distributions to non-controlling interests	—			—			(4,948		)	(5,552		)	—				(10,500		)
Net cash provided by (used in) financing activities	(52,445		)	56,628			3,428			(29,257		)	—				(21,646		)
Net increase (decrease) in cash and cash equivalents	(10,998		)	(1,611		)	(495		)	36,624			—				23,520
Cash and cash equivalents at beginning of period	11,071			6,467			5,056			76,435			—				99,029
Cash and cash equivalents at end of period	$	73		$	4,856		$	4,561		$	113,059		$	—			$	122,549

_______________________________________________________________________________


(a)	Elimination of equity in earnings of consolidated subsidiaries.

Select Medical Corporation

Condensed Consolidating Balance Sheet

December 31, 2016



	Select (Parent Company Only)			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Non-Guarantor Concentra		Eliminations				Consolidated Select Medical Corporation
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	11,071		$	6,467	$	5,056		$	76,435	$	—			$	99,029
Accounts receivable, net	—			363,470		97,770			112,512		—				573,752
Intercompany receivables	—			1,573,960		25,578			—		(1,599,538		)	(a)	—
Prepaid income taxes	6,658			—		—			5,765		—				12,423
Other current assets	11,953			33,958		10,269			21,519		—				77,699
Total Current Assets	29,682			1,977,855		138,673			216,231		(1,599,538		)		762,903
Property and equipment, net	48,697			603,408		50,869			189,243		—				892,217
Investment in affiliates	4,493,684			89,288		—			—		(4,582,972		)	(b) (c)	—
Goodwill	—			2,090,963		—			660,037		—				2,751,000
Identifiable intangible assets, net	—			106,439		2,693			231,430		—				340,562
Other assets	45,636			84,803		53,954			16,235		(26,684		)	(e)	173,944
Total Assets	$	4,617,699		$	4,952,756	$	246,189		$	1,313,176	$	(6,209,194	)		$	4,920,626
LIABILITIES AND EQUITY
Current Liabilities:
Overdrafts	$	39,362		$	—	$	—		$	—	$	—			$	39,362
Current portion of long-term debt and notes payable	7,227			445		1,324			4,660		—				13,656
Accounts payable	10,775			78,608		22,397			14,778		—				126,558
Intercompany payables	1,573,960			25,578		—			—		(1,599,538		)	(a)	—
Accrued payroll	16,963			92,216		4,246			32,972		—				146,397
Accrued vacation	3,440			55,486		10,668			13,667		—				83,261
Accrued interest	20,114			—		—			2,211		—				22,325
Accrued other	39,155			62,384		4,639			33,898		—				140,076
Total Current Liabilities	1,710,996			314,717		43,274			102,186		(1,599,538		)		571,635
Long-term debt, net of current portion	2,048,154			601		9,685			626,893		—				2,685,333
Non-current deferred tax liability	—			133,852		596			91,314		(26,684		)	(e)	199,078
Other non-current liabilities	42,824			53,537		5,727			34,432		—				136,520
Total Liabilities	3,801,974			502,707		59,282			854,825		(1,626,222		)		3,592,566
Redeemable non-controlling interests	—			—		—			15,493		406,666			(d)	422,159
Stockholder’s Equity:
Common stock	0			—		—			—		—				0
Capital in excess of par	925,111			—		—			—		—				925,111
Retained earnings (accumulated deficit)	(109,386		)	1,269,009		(32,826		)	2,723		(1,238,906		)	(c) (d)	(109,386		)
Subsidiary investment	—			3,181,040		219,733			436,786		(3,837,559		)	(b) (d)	—
Total Select Medical Corporation Stockholder’s Equity	815,725			4,450,049		186,907			439,509		(5,076,465		)		815,725
Non-controlling interests	—			—		—			3,349		86,827			(d)	90,176
Total Equity	815,725			4,450,049		186,907			442,858		(4,989,638		)		905,901
Total Liabilities and Equity	$	4,617,699		$	4,952,756	$	246,189		$	1,313,176	$	(6,209,194	)		$	4,920,626

_______________________________________________________________________________


(a)	Elimination of intercompany.


(b)	Elimination of investments in consolidated subsidiaries.


(c)	Elimination of investments in consolidated subsidiaries’ earnings.


(d)	Reclassification of equity attributable to non-controlling interests.


(e)	Reclassification of non-current deferred tax asset to report net non-current deferred tax liability in consolidation.

Select Medical Corporation

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2016



	Select (Parent Company Only)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Non-Guarantor Concentra			Eliminations				Consolidated Select Medical Corporation
	(in thousands)
Net operating revenues	$	541		$	2,752,676		$	532,180		$	1,000,624		$	—			$	4,286,021
Costs and expenses:
Cost of services	2,037			2,346,487			476,084			840,235			—				3,664,843
General and administrative	106,864			63			—			—			—				106,927
Bad debt expense	—			41,737			9,206			18,150			—				69,093
Depreciation and amortization	5,348			67,932			11,314			60,717			—				145,311
Total costs and expenses	114,249			2,456,219			496,604			919,102			—				3,986,174
Income (loss) from operations	(113,708		)	296,457			35,576			81,522			—				299,847
Other income and expense:
Intercompany interest and royalty fees	31,083			(16,998		)	(14,085		)	—			—				—
Intercompany management fees	168,915			(140,347		)	(28,568		)	—			—				—
Loss on early retirement of debt	(773		)	—			—			(10,853		)	—				(11,626		)
Equity in earnings of unconsolidated subsidiaries	—			19,838			105			—			—				19,943
Non-operating gain	33,932			8,719			—			—			—				42,651
Interest income (expense)	(132,066		)	382			(101		)	(38,296		)	—				(170,081		)
Income (loss) from operations before income taxes	(12,617		)	168,051			(7,073		)	32,373			—				180,734
Income tax expense (benefit)	(14,461		)	54,047			3,166			12,712			—				55,464
Equity in earnings (losses) of consolidated subsidiaries	113,567			(8,061		)	—			—			(105,506		)	(a)	—
Net income (loss)	115,411			105,943			(10,239		)	19,661			(105,506		)		125,270
Less: Net income (loss) attributable to non-controlling interests	—			28			(2,346		)	12,177			—				9,859
Net income (loss) attributable to Select Medical Corporation	$	115,411		$	105,915		$	(7,893	)	$	7,484		$	(105,506	)		$	115,411

______________________________________________________________________________


(a)	Elimination of equity in earnings of consolidated subsidiaries.

Select Medical Corporation

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2016



	Select (Parent Company Only)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Non-Guarantor Concentra			Eliminations				Consolidated Select Medical Corporation
	(in thousands)
Operating activities
Net income (loss)	$	115,411		$	105,943		$	(10,239	)	$	19,661		$	(105,506	)	(a)	$	125,270
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Distributions from unconsolidated subsidiaries	—			20,380			96			—			—				20,476
Depreciation and amortization	5,348			67,932			11,314			60,717			—				145,311
Provision for bad debts	—			41,737			9,206			18,150			—				69,093
Equity in earnings of unconsolidated subsidiaries	—			(19,838		)	(105		)	—			—				(19,943		)
Equity in earnings of consolidated subsidiaries	(113,567		)	8,061			—			—			105,506			(a)	—
Loss on extinguishment of debt	773			—			—			10,853			—				11,626
Loss (gain) on sale of assets and businesses	(33,738		)	(12,975		)	246			(21		)	—				(46,488		)
Gain on sale of equity investment	—			(2,779		)	—			—			—				(2,779		)
Impairment of equity investment	—			5,339			—			—			—				5,339
Stock compensation expense	16,643			—			—			770			—				17,413
Amortization of debt discount, premium and issuance costs	12,358			—			—			3,298			—				15,656
Deferred income taxes	(709		)	—			—			(11,882		)	—				(12,591		)
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	—			15,768			(40,080		)	(15,008		)	—				(39,320		)
Other current assets	(1,432		)	10,310			(4,619		)	13,191			—				17,450
Other assets	(2,978		)	51,586			(53,295		)	13,977			—				9,290
Accounts payable	330			(24,877		)	5,979			3,076			—				(15,492		)
Accrued expenses	(1,287		)	53,764			(2,091		)	(4,094		)	—				46,292
Net cash provided by (used in) operating activities	(2,848		)	320,351			(83,588		)	112,688			—				346,603
Investing activities
Business combinations, net of cash acquired	(406,305		)	(59,520		)	(953		)	(5,428		)	—				(472,206		)
Purchases of property and equipment	(15,262		)	(101,564		)	(28,861		)	(15,946		)	—				(161,633		)
Investment in businesses	—			(4,723		)	—			—			—				(4,723		)
Proceeds from sale of assets and businesses	63,418			16,978			67			—			—				80,463
Proceeds from sale of equity investment	—			3,779			—			—			—				3,779
Net cash used in investing activities	(358,149		)	(145,050		)	(29,747		)	(21,374		)	—				(554,320		)
Financing activities
Borrowings on revolving facilities	575,000			—			—			—			—				575,000
Payments on revolving facilities	(650,000		)	—			—			(5,000		)	—				(655,000		)
Proceeds from term loans	600,127			—			—			195,217			—				795,344
Payments on term loans	(230,524		)	—			—			(207,510		)	—				(438,034		)
Borrowings of other debt	11,935			—			12,970			2,816			—				27,721
Principal payments on other debt	(15,144		)	(751		)	(2,554		)	(2,952		)	—				(21,401		)
Dividends paid to Holdings	(2,929		)	—			—			—			—				(2,929		)
Equity investment by Holdings	1,672			—			—			—			—				1,672
Intercompany	67,115			(169,473		)	102,358			—			—				—
Increase in overdrafts	10,746			—			—			—			—				10,746
Proceeds from issuance of non-controlling interests	—			—			11,846			—			—				11,846
Purchase of non-controlling interests	—			(2,099		)	—			—			—				(2,099		)
Distributions to non-controlling interests	—			(217		)	(6,854		)	(3,484		)	—				(10,555		)
Net cash provided by (used in) financing activities	367,998			(172,540		)	117,766			(20,913		)	—				292,311
Net increase in cash and cash equivalents	7,001			2,761			4,431			70,401			—				84,594
Cash and cash equivalents at beginning of period	4,070			3,706			625			6,034			—				14,435
Cash and cash equivalents at end of period	$	11,071		$	6,467		$	5,056		$	76,435		$	—			$	99,029

_______________________________________________________________________________


(a)	Elimination of equity in earnings of consolidated subsidiaries.

Select Medical Corporation

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2015



	Select (Parent Company Only)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Non-Guarantor Concentra			Eliminations				Consolidated Select Medical Corporation
	(in thousands)
Net operating revenues	$	724		$	2,691,851		$	464,939		$	585,222		$	—			$	3,742,736
Costs and expenses:
Cost of services	2,029			2,280,986			400,179			528,347			—				3,211,541
General and administrative	88,227			(890		)	—			4,715			—				92,052
Bad debt expense	—			40,708			9,073			9,591			—				59,372
Depreciation and amortization	4,292			56,957			10,088			33,644			—				104,981
Total costs and expenses	94,548			2,377,761			419,340			576,297			—				3,467,946
Income (loss) from operations	(93,824		)	314,090			45,599			8,925			—				274,790
Other income and expense:
Intercompany interest and royalty fees	29,393			(23,274		)	(6,119		)	—			—				—
Intercompany management fees	143,939			(120,356		)	(23,583		)	—			—				—
Equity in earnings of unconsolidated subsidiaries	—			16,719			92			—			—				16,811
Non-operating gain	—			29,647			—			—			—				29,647
Interest income (expense)	(89,160		)	408			(2		)	(24,062		)	—				(112,816		)
Income (loss) from operations before income taxes	(9,652		)	217,234			15,987			(15,137		)	—				208,432
Income tax expense (benefit)	(7,869		)	85,949			(512		)	(5,132		)	—				72,436
Equity in earnings of consolidated subsidiaries	132,519			7,527			—			—			(140,046		)	(a)	—
Net income (loss)	130,736			138,812			16,499			(10,005		)	(140,046		)		135,996
Less: Net income (loss) attributable to non-controlling interests	—			245			8,899			(3,884		)	—				5,260
Net income (loss) attributable to Select Medical Corporation	$	130,736		$	138,567		$	7,600		$	(6,121	)	$	(140,046	)		$	130,736

_______________________________________________________________________________


(a)	Elimination of equity in earnings of consolidated subsidiaries.

Select Medical Corporation

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2015



	Select (Parent Company Only)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Non-Guarantor Concentra			Eliminations				Consolidated Select Medical Corporation
	(in thousands)
Operating activities
Net income (loss)	$	130,736		$	138,812		$	16,499		$	(10,005	)	$	(140,046	)	(a)	$	135,996
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Distributions from unconsolidated subsidiaries	—			13,870			99			—			—				13,969
Depreciation and amortization	4,292			56,957			10,088			33,644			—				104,981
Provision for bad debts	—			40,708			9,073			9,591			—				59,372
Equity in earnings of unconsolidated subsidiaries	—			(16,719		)	(92		)	—			—				(16,811		)
Equity in earnings of consolidated subsidiaries	(132,519		)	(7,527		)	—			—			140,046			(a)	—
Loss (gain) on sale of assets and businesses	—			(1,128		)	16			14			—				(1,098		)
Gain on sale of equity investment	—			(29,647		)	—			—			—				(29,647		)
Stock compensation expense	13,969			—			—			1,016			—				14,985
Amortization of debt discount, premium and issuance costs	7,404			—			—			2,139			—				9,543
Deferred income taxes	(3,484		)	—			—			1,426			—				(2,058		)
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	—			(83,142		)	(10,255		)	825			—				(92,572		)
Other current assets	(2,661		)	(2,236		)	(396		)	2,790			—				(2,503		)
Other assets	10,840			(6,415		)	288			—			—				4,713
Accounts payable	560			8,569			2,654			(9,438		)	—				2,345
Accrued expenses	(1,508		)	9,569			5,696			(6,557		)	—				7,200
Net cash provided by operating activities	27,629			121,671			33,670			25,445			—				208,415
Investing activities
Business combinations, net of cash acquired	—			—			(8,832		)	(1,052,796		)	—				(1,061,628		)
Purchases of property and equipment	(10,890		)	(134,002		)	(10,979		)	(26,771		)	—				(182,642		)
Investment in businesses	—			(2,347		)	—			—			—				(2,347		)
Proceeds from sale of assets and businesses	—			1,742			24			1			—				1,767
Proceeds from sale of equity investment	—			33,096			—			—			—				33,096
Net cash used in investing activities	(10,890		)	(101,511		)	(19,787		)	(1,079,566		)	—				(1,211,754		)
Financing activities
Borrowings on revolving facilities	1,115,000			—			—			20,000			—				1,135,000
Payments on revolving facilities	(880,000		)	—			—			(15,000		)	—				(895,000		)
Proceeds from term loans	—			—			—			623,575			—				623,575
Payments on term loans	(26,884		)	—			—			(2,250		)	—				(29,134		)
Borrowings of other debt	8,684			—			1,681			3,009			—				13,374
Principal payments on other debt	(11,923		)	(2,736		)	(1,513		)	(1,964		)	—				(18,136		)
Dividends paid to Holdings	(28,956		)	—			—			—			—				(28,956		)
Equity investment by Holdings	1,649			—			—			—			—				1,649
Intercompany	(199,024		)	(15,930		)	(2,981		)	217,935			—				—
Tax benefit from stock based awards	1,846			—			—			—			—				1,846
Increase in overdrafts	6,869			—			—			—			—				6,869
Proceeds from issuance of non-controlling interests	—			—			—			217,065			—				217,065
Purchase of non-controlling interests	—			—			(1,095		)	—			—				(1,095		)
Distributions to non-controlling interests	—			(242		)	(10,180		)	(2,215		)	—				(12,637		)
Net cash provided by (used in) financing activities	(12,739		)	(18,908		)	(14,088		)	1,060,155			—				1,014,420
Net increase (decrease) in cash and cash equivalents	4,000			1,252			(205		)	6,034			—				11,081
Cash and cash equivalents at beginning of period	70			2,454			830			—			—				3,354
Cash and cash equivalents at end of period	$	4,070		$	3,706		$	625		$	6,034		$	—			$	14,435

_______________________________________________________________________________


(a)	Elimination of equity in earnings of consolidated subsidiaries.