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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;1.&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; &lt;u&gt;Accounting Policies&lt;/u&gt;&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
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&lt;p style="MARGIN: 0in 0in 0pt 0.35pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The accompanying unaudited consolidated financial statements for the three and six months ended June&amp;#160;30, 2013 and 2012 have been prepared pursuant to the rules&amp;#160;and regulations of the Securities and Exchange Commission (SEC).&amp;#160; Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to such rules&amp;#160;and regulations.&amp;#160; Accordingly, the reader of this Form&amp;#160;10-Q is referred to Almost Family,&amp;#160;Inc.&amp;#8217;s (the &amp;#8220;Company&amp;#8221;) Form&amp;#160;10-K for the year ended December&amp;#160;31, 2012 for further information.&amp;#160; In the opinion of management of the Company, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position at June&amp;#160;30, 2013, the results of operations for the three and six month periods ended June&amp;#160;30, 2013 and cash flows for the six month periods ended June&amp;#160;30, 2013 and 2012.&amp;#160; The results of operations for the three and six month periods ended June&amp;#160;30, 2013 are not necessarily indicative of the operating results for the year.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt 0.35pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt 0.35pt;"&gt;&lt;b&gt;&lt;i&gt;&lt;font style="FONT-STYLE: italic; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;Use of Estimates&lt;/font&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt 0.35pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.&amp;#160; Actual results could differ from those estimates.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;i&gt;&lt;font style="FONT-STYLE: italic; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;Discontinued Operations&lt;/font&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The Company follows the guidance in Accounting Standards Codification (ASC) 205-20, &lt;i&gt;Discontinued Operations&lt;/i&gt; and, when appropriate, reclassifies operating units closed, sold or held for sale out of continuing operations and into discontinued operations for all periods presented.&amp;#160; During the quarter ended June&amp;#160;30, 2013, the Company completed the sale of its only two Alabama locations, which operated in the Visiting Nurse (VN) segment.&amp;#160; The operations and gain on sale related to the Alabama operations were reclassified from continuing operations into discontinued operations for all periods presented.&amp;#160; Other Assets Held for Sale primarily relate to prior period VN segment goodwill that was allocated to the Company&amp;#8217;s Alabama operations.&amp;#160; The effective tax rate for discontinued operations is unusually high due primarily to the impact of writing off non-deductible goodwill in addition to providing a valuation allowance for Alabama net operating loss carryforwards.&amp;#160; Unless otherwise noted, amounts in these Notes to Consolidated Financial Statements exclude amounts attributable to discontinued operations&lt;/font&gt;&lt;/p&gt;
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