ASSET HELD FOR SALE DISPOSITIONS

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

ASSET HELD FOR SALE DISPOSITIONS

ASSETS HELD FOR SALE AND DISPOSITIONS

Assets Held for Sale

As of March 31, 2018, the Company determined that five skilled nursing/transitional care facilities, with an aggregate net book value of $12.5 million, met the criteria to be classified as held for sale. The net book value is included in accounts receivable, prepaid expenses and other assets, net on the condensed consolidated balance sheets. The facilities were sold on April 2, 2018 for an aggregate gross sales price of $17.0 million.

Dispositions

During the three months ended March 31, 2018, the Company completed the sale of one skilled nursing/transitional care facility for consideration, net of closing costs, of $6.8 million. The net carrying value of the assets and liabilities of this facility was $7.2 million, which resulted in a $0.4 million net loss on sale. The Company also recognized an additional $0.1 million of selling expenses for sales completed in 2017.

Excluding the net loss on sale, the Company recognized $0.1 million of net income during the three months ended March 31, 2018 from this facility. The sale of this facility does not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results, and therefore the results of operations attributable to this facility have remained in continuing operations.

The Company sold no facilities during the three months ended March 31, 2017.