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Investments in Unconsolidated Affiliates
9 Months Ended
Sep. 30, 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 statements of operations. 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 September 30, 2015 and December 31, 2014, the Company has recorded in the accompanying consolidated balance sheets its investments in unconsolidated affiliates of $112.9 million and $75.5 million, respectively. The Company's net earnings from these investments during the three months ended September 30, 2015 and 2014 were approximately $4.9 million and $2.2 million, respectively, and during the nine months ended September 30, 2015 and 2014 were approximately $11.6 million, and $3.5 million, respectively.

During the nine months ended September 30, 2015, the Company's ambulatory services segment entered into two separate equity method investments. As a result of these investment transactions, the Company contributed its controlling interest in three centers in exchange for noncontrolling interests in the new investments. Each of these investments is jointly owned by a health system and the Company. The newly formed investments (including the contributed centers) are controlled by the health systems. Also, as part of these transactions, the Company obtained a non-controlling interest in one additional center and one surgical hospital which were contributed by the health systems.

During the nine months ended September 30, 2014, the Company's ambulatory services segment entered into four separate equity method investments. As a result of these investment transactions, the Company contributed its controlling interest in four of its centers and received net cash of $1.2 million in exchange for noncontrolling interests in the new investments. Each of these investments is jointly owned by a health system and the Company. The newly formed investments (including the contributed centers) are controlled by the health systems. Also, as part of these transactions, the Company obtained a non-controlling interest in one additional center which was contributed by a health system.

During the nine months ended September 30, 2015, the Company's physician services segment contributed two contracts into an entity jointly owned by the Company and a health system.

As a result of these transactions, for the nine months ended September 30, 2015 and 2014, the Company recorded approximately $26.9 million and $7.0 million, respectively, in the accompanying consolidated balance sheets, as a component of investments in unconsolidated affiliates, the fair value of the Company's investment in these entities.

In each of these transactions, the gain or loss on deconsolidation, which are primarily non-cash in nature, are determined based on the difference between the fair value of the Company’s interest, which is based on estimates of the expected future earnings, in the new entity and the carrying value of both the tangible and intangible assets of the contributed centers or contracts immediately prior to each transaction. Accordingly, the Company recognized a net gain on deconsolidation in the accompanying consolidated statements of operations of approximately $9.1 million and $5.9 million during the three and nine months ended September 30, 2015 and for the nine months ended September 30, 2014, the Company recognized a net gain on deconsolidation of approximately $3.4 million. There was no deconsolidation activity during the three months ended September 30, 2014.