Segments

Following the sale of the Portamedic service line, the Company reassessed its segment reporting to align with the information that the Company's chief operating decision maker regularly reviews since the sale of Portamedic. Beginning in the fourth quarter of 2013, the Company reports financial results in three segments: Health and Wellness (health risk assessments including biometric screenings), Heritage Labs (laboratory testing and kit assembly) and Hooper Holmes Services (health information services). Financial statement amounts have been recast to reflect the new segment determination for all periods presented in this Report, including revenues and costs previously reported as a part of discontinued Portamedic operations which have been reclassified to Hooper Holmes Services to conform to current period presentation. The determination of segment assets involves a degree of management judgment and estimates as the Company has not historically prepared balance sheets by service line. As of December 31, 2013, substantially all of the Company's services are provided within the United States, and substantially all of the Company's assets are located within the United States.

The table presented below provides disclosures by segment for the years ended December 31, 2013, 2012 and 2011. Intercompany revenue for the years ended December 31, 2013, 2012 and 2011 was $1.1 million, $2.1 million and $2.0 million, representing Heritage Lab revenue for kit sales to the discontinued Portamedic operations at arms' length sales prices. Heritage Lab also performs services to Health and Wellness. These services are recorded at Heritage Labs' cost directly within the Health and Wellness segment, and thus, no intercompany elimination is required.



2013	Health and Wellness		Heritage Labs		Hooper Holmes Services			Unallocated Corporate				Total
Revenues	$	23,149	$	11,390	$	14,621		$	—			$	49,160
Depreciation and amortization expense	655		423		260			508				1,846
Operating income (loss)	5		619		(1,716		)	(8,664		)	^(a)	(9,756		)
Capital expenditures	347		56		—			122				525
Segment assets	6,937		4,094		1,994			8,621				21,646

a) Unallocated corporate includes selling, general and administrative costs that the Company has not allocated to its segments. The method of allocating selling, general and administrative costs to Health and Wellness, Heritage Labs and Hooper Holmes Services did not change subsequent to the sale of Portamedic. Allocations that would have been made to Portamedic in the fourth quarter of 2013 if it had still been owned by the Company were made using previously budgeted amounts, which resulted in higher unallocated amounts in corporate during the fourth quarter of 2013.



2012	Health and Wellness		Heritage Labs		Hooper Holmes Services			Unallocated Corporate				Total
Revenues	$	21,349	$	13,154	$	16,474		$	—			$	50,977
Depreciation and amortization expense	563		620		371			813				2,367
Operating income (loss)	989		764		(2,475		)	(6,315		)	^(a)	(7,037		)
Capital expenditures	818		752		109			408				2,087
Segment assets	6,261		4,624		3,320			22,213				36,418

a) Unallocated corporate includes selling, general and administrative costs that the Company has not allocated to its segments.



2011	Health and Wellness		Heritage Labs		Hooper Holmes Services			Unallocated Corporate				Total
Revenues	$	18,441	$	13,664	$	18,977		$	—			$	51,082
Depreciation and amortization expense	409		455		340			1,110				2,314
Operating income (loss)	1,992		596		(3,348		)	(7,011		)	^(a)	(7,771		)
Capital expenditures	788		254		413			500				1,955

a) Unallocated corporate includes selling, general and administrative costs that the Company has not allocated to its segments.