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Investments in Unconsolidated Affiliates
3 Months Ended
Mar. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Affiliates
Investments in Unconsolidated Affiliates

Investments in unconsolidated affiliates in which the Company exerts significant influence but does not control or otherwise consolidate are accounted for using the equity method. Equity method investments are initially recorded at cost, unless such investments are a result of the Company entering into a transaction whereby the Company loses control of a previously controlled entity but retains a noncontrolling interest. Such transactions, which result in the deconsolidation of a previously consolidated entity, are measured at fair value. These investments are included as investments in unconsolidated affiliates in the accompanying consolidated balance sheets. The Company’s share of the profits and losses from these investments is reported in equity in earnings of unconsolidated affiliates in the accompanying consolidated statement of earnings. The Company monitors its investments for other-than-temporary impairment by considering factors such as current economic and market conditions and the operating performance of the companies and records reductions in carrying values when necessary.

As of March 31, 2015 and December 31, 2014, the Company has recorded in the accompanying consolidated balance sheets its investments in unconsolidated affiliates of $79.3 million and $75.5 million, respectively. The Company's earnings from these investments during the three months ended March 31, 2015 and 2014, which are reflected in the accompanying consolidated statements of earnings, were approximately $2.7 million and $0.8 million, respectively.

During the three months ended March 31, 2015, the Company's ambulatory services division entered into a transaction whereby it contributed its controlling interest in one center in exchange for a noncontrolling interest in an entity that owned one ASC prior to the transaction and, after the completion of the transaction, controls the contributed center and the center it previously owned. During the three months ended March 31, 2014, the Company's ambulatory services division entered into a transaction whereby it contributed a controlling interest in one center in exchange for $0.6 million and a noncontrolling interest in an entity jointly owned by a hospital that, after the completion of the transaction, controls the contributed center and one additional center. Management of the Company believes these structures provide both economies of scale and potential future growth opportunities in the markets in which the centers are located. 

As a result of these transactions, the Company recorded in the accompanying consolidated balance sheets, as a component of investments in unconsolidated affiliates, the fair value of the Company's investment in the entities which control the contributed centers of approximately $1.3 million and $1.2 million as of the three months ended March 31, 2015 and 2014, respectively.

In each of these transactions, the gain or loss on deconsolidation was determined based on the difference between the fair value of the Company’s noncontrolling interest in the new entity and the carrying value of both the tangible and intangible assets of the contributed centers immediately prior to each transaction. During the three months ended March 31, 2015, the fair value of the Company’s noncontrolling interest was based on estimates of the expected future earnings. Accordingly, the Company recognized a net loss on deconsolidation in the accompanying consolidated statements of earnings of approximately $0.2 million during the three months ended March 31, 2015, which resulted primarily from the allocation of $1.1 million of goodwill, and a net gain of $2.0 million during the three months ended March 31, 2014.