Acquisitions (Tables)

6 Months Ended

Jun. 30, 2016

Transaction-related expenses comprised the following costs for the three and six months ended June 30, 2016 and 2015 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Advisory and financing commitment fees	$	—	$	—	$	14,850	$	10,337
Legal, accounting and other costs		4,653		5,234		16,101		9,054
Severance and contract termination costs		1,421		1,923		1,421		6,182

	$	6,074	$	7,157	$	32,372	$	25,573

Pro Forma Financial Information for Acquisitions Occurred

The following table provides certain pro forma financial information for the Company as if the 2015 and 2016 Acquisitions occurred as of January 1, 2015 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenue	$	761,048	$	726,929	$	1,490,720	$	1,423,281

Income from continuing operations, before income taxes	$	74,572	$	55,320	$	87,925	$	71,426

Priory [Member]

Preliminary Fair Values of Assets Acquired and Liabilities Assumed at Corresponding Acquisition Date

The preliminary fair values of assets acquired and liabilities assumed, at the corresponding acquisition dates, during the six months ended June 30, 2016 in connection with the 2016 acquisitions were as follows (in thousands):


	Priory		Other		Total
Cash	$	10,253	$	2,488	$	12,741
Accounts receivable		57,832		4,289		62,121
Prepaid expenses and other current assets		7,921		75		7,996
Property and equipment		1,603,306		35,400		1,638,706
Goodwill		668,915		95,274		764,189
Intangible assets		23,200		204		23,404
Other assets		7,760		47		7,807

Total assets acquired		2,379,187		137,777		2,516,964
Accounts payable		24,203		805		25,008
Accrued salaries and benefits		39,588		760		40,348
Other accrued expenses		47,016		293		47,309
Deferred tax liabilities – noncurrent		67,598		—		67,598
Long-term debt		1,348,389		—		1,348,389
Other liabilities		45,162		30,242		75,404

Total liabilities assumed		1,571,956		32,100		1,604,056

Net assets acquired	$	807,231	$	105,677	$	912,908

CRC Health Group Inc And Other Acquisitions [Member]

Preliminary Fair Values of Assets Acquired and Liabilities Assumed at Corresponding Acquisition Date

The preliminary fair values of assets acquired and liabilities assumed, at the corresponding acquisition dates, during the year ended December 31, 2015 in connection with the 2015 acquisitions were as follows (in thousands):


	CRC		Other		Total
Cash	$	19,599	$	5,330	$	24,929
Accounts receivable		47,035		20,566		67,601
Prepaid expenses and other current assets		26,945		2,674		29,619
Property and equipment		136,163		273,143		409,306
Goodwill		1,043,601		321,387		1,364,988
Intangible assets		37,000		204		37,204
Deferred tax assets-noncurrent		74,383		—		74,383
Other assets		6,478		51		6,529

Total assets acquired		1,391,204		623,355		2,014,559
Accounts payable		4,741		4,937		9,678
Accrued salaries and benefits		14,827		3,321		18,148
Other accrued expenses		38,873		5,290		44,163
Deferred tax liabilities – noncurrent		—		13,541		13,541
Debt		904,467		—		904,467
Other liabilities		34,720		10		34,730

Total liabilities assumed		997,628		27,099		1,024,727

Redeemable noncontrolling interests		—		9,132		9,132

Net assets acquired	$	393,576	$	587,124	$	980,700