Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information

Segment Information

Note 9.             Segment Information

Effective January 1, 2011, we changed our reportable operating segments to: (i) Residential Services, (ii) ResCare HomeCare, (iii) Youth Services and (iv) Workforce Services. Residential Services primarily includes services for individuals with intellectual, cognitive or other developmental disabilities in our community home settings. ResCare HomeCare primarily includes periodic in-home care services to the elderly, as well as persons with disabilities. Youth Services consists of our Job Corps centers, a variety of youth programs including foster care, alternative education programs and charter schools. Workforce Services is comprised of job training and placement programs that assist welfare recipients and disadvantaged job seekers in finding employment and improving their career prospects. We believe the changes in our segments will allow us to serve our customers more efficiently and allow future growth and long-term sustainability. We have presented both periods below to reflect the change in our segments.

The following table sets forth information about our reportable segments:

	Residential			ResCare			Youth			Workforce					Consolidated
	Services			HomeCare			Services			Services		Corporate			Totals
Three months ended September 30:
2011 (Successor)
Revenues(1)	$	216,984		$	80,297		$	46,301		$	52,685	$	—		$	396,267
Operating income (loss) (1) (2)	28,089			6,439			3,232			4,946		(11,318		)	31,388
Total assets	526,914			168,050			97,412			93,932		95,016			981,324
Capital expenditures	1,856			155			29			46		1,747			3,833
Depreciation and amortization (1)	2,252			473			186			315		966			4,192
2010 (Predecessor)
Revenues (1)	$	209,166		$	79,166		$	43,271		$	67,222	$	—		$	398,825
Operating income (loss) (1) (2) (3)	(10,770		)	(3,483		)	(4,638		)	4,730		(17,743		)	(31,904		)
Total assets	290,982			273,946			70,996			111,887		44,175			791,986
Capital expenditures	994			105			230			130		759			2,218
Depreciation and amortization (1)	1,996			1,004			491			666		2,103			6,260
Nine months ended September 30:
2011 (Successor)
Revenues (1)	$	635,840		$	238,917		$	138,760		$	167,926	$	—		$	1,181,443
Operating income (loss) (1) (2)	74,019			17,578			10,672			14,030		(39,686		)	76,613
Capital expenditures	4,176			339			129			850		3,639			9,133
Depreciation and amortization (1)	7,551			1,548			749			998		3,310			14,156

2010 (Predecessor)
Revenues (1)	$	619,795	$	228,179	$	136,083	$	190,247	$	—		$	1,174,304
Operating income (loss) (1) (2) (3)	33,413		4,733		3,718		14,112		(47,712		)	8,264
Capital expenditures	3,276		503		303		704		2,151			6,937
Depreciation and amortization (1)	5,860		2,741		1,487		1,964		6,483			18,535

(1) Amounts for Workforce Services and Consolidated Totals have been restated to exclude the effects of the international operations, as the international operations have been discontinued as of September 30, 2011.

(2) Under Corporate, the operating loss is comprised of our corporate general and administrative expenses, as well as other operating income (loss) and (expenses) related to the corporate office.

(3) Operating income includes a goodwill impairment charge of $51.7 million, of which $34.4 million related to Residential Services, $9.3 million related to ResCare HomeCare and $8.0 million related to Youth Services.