Discontinued Operations

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4. Discontinued Operations

On February 1, 2015 the Company completed the sale of its Physician Segment for $123.0 million, of which $6.0 million was placed in escrow for a period of 12 months. The gain on the sale was $25.7 million (net of income taxes of $14.4 million), which was included in discontinued operations. The $6.0 million placed in escrow is included in current assets in the condensed consolidated balance sheet at June 30, 2015. The operating results of this segment are presented as discontinued operations in the condensed consolidated statements of operations and comprehensive income for all periods presented. The condensed consolidated balance sheet at December 31, 2014 separately states the assets and liabilities of the Physician Segment as discontinued operations.

The following table is a reconciliation of the major classes of assets and liabilities of the Physician Segment that are presented separately in the condensed consolidated balance sheet at December 31, 2014, to the previously reported balances:

	December 31, 2014
	As Previously Reported		Physician Segment			As Adjusted
Cash and cash equivalents	$	31,714	$	(2,854	)	$	28,860
Accounts receivable, net	298,761		(21,615		)	277,146
Prepaid expenses and income taxes	14,513		(1,205		)	13,308
Deferred income tax assets	19,067		(3,321		)	15,746
Workers' compensation and medical malpractice receivable	18,728		(5,358		)	13,370
Other current assets (1)	2,310		—			2,310
Current assets of discontinued operations	—		34,353			34,353
Total current assets	385,093		—			385,093
Property and equipment, net	46,819		(2,508		)	44,311
Goodwill	570,697		(58,637		)	512,060
Identifiable intangible assets, net	262,569		(11,960		)	250,609
Other non-current assets (1)	5,728		(568		)	5,160
Non-current assets of discontinued operations	—		73,673			73,673
Total assets	$	1,270,906	$	—		$	1,270,906
Current portion of long-term debt (1)	$	17,439	$	—		$	17,439
Accounts payable	8,876		(951		)	7,925
Accrued payroll and contract professional pay	87,189		(4,626		)	82,563
Workers’ compensation and medical malpractice loss reserves	29,135		(13,571		)	15,564
Income taxes payable	340		—			340
Other current liabilities	21,776		(1,047		)	20,729
Current liabilities of discontinued operations	—		20,195			20,195
Total current liabilities	164,755		—			164,755
Long-term debt (1)	394,418		—			394,418
Deferred income tax liabilities	67,909		(4,088		)	63,821
Other long-term liabilities	9,416		(1,479		)	7,937
Long-term liabilities of discontinued operations	—		5,567			5,567
Total liabilities	$	636,498	$	—		$	636,498

____

(1) The December 31, 2014 balances have been adjusted to reflect unamortized deferred loan costs attributable to term loans as a reduction of the related debt balances whereas they were previously included in other current assets and other non-current assets. This change in presentation was the result of early adopting ASU 2015-03. The December 31, 2014 balances for the current portion of long-term debt and long-term debt are now reflected net of $0.8 million and $2.5 million of unamortized deferred loan costs, respectively.

Cash flows from discontinued operations are included in the condensed consolidated statements of cash flows for the six months ended June 30, 2015 and 2014. The cash flows that are attributable to the Physician Segment are as follows:

	Six Months Ended
	June 30,
	2015			2014
Net cash provided by (used in) operating activities	$	(1,778	)	$	503
Net cash provided by (used in) investing activities:
Cash received from sale of discontinued operations, net	$	115,440		$	—
Other	(14		)	(159		)
Total cash provided by (used in) investing activities	$	115,426		$	(159	)

The following is a summary of the operating results of all of the Company's discontinued operations (in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2015			2014		2015		2014
Revenues	$	—		$	34,194	$	12,068	$	66,617
Cost of services	—			23,342		8,653		46,421
Gross profit	—			10,852		3,415		20,196
Selling, general and administrative expenses	152			8,213		2,793		16,358
Amortization of intangible assets	—			634		155		1,268
Income (loss) before income taxes	(152		)	2,005		467		2,570
Provision (benefit) for income taxes	(69		)	857		141		1,110
Net income (loss)	$	(83	)	$	1,148	$	326	$	1,460