DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2013

Discontinued Operation, Additional Disclosures [Abstract]

DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

As part of our management of our portfolio of care centers, we review each care center's current financial performance, market penetration, forecasted market growth and the impact of proposed CMS payment revisions. As a result of our review, we consolidated nine home health care centers with care centers servicing the same markets during the three-month period ended March 31, 2013.

During the three-month period ended June 30, 2013, we committed to a plan to divest approximately 50 care centers; therefore, as of June 30, 2013, we classified 34 care centers as held for sale (33 home health care centers and one hospice care center)and consolidated 19 care centers (17 home health care centers and two hospice care centers) with care centers servicing the same markets. In addition, we sold assets associated with two home health care centers and one hospice care center.

Based on current market conditions and an assessment of divestiture opportunities, we removed six care centers (five home health care centers and one hospice care center) from those care centers classified as held for sale during the three-month period ended September 30, 2013. In addition, we consolidated four home health care centers with care centers servicing the same markets.

As we are exiting certain selected geographical areas and in accordance with applicable accounting guidance, the 28care centers which are held for sale and the threecare centers sold are presented as discontinued operations in our condensed consolidated financial statements. The six care centers removed from the held for sale classification are presented in continuing operations in our condensed consolidated financial statements. The 32 care centers consolidated with care centers servicing the same markets are presented in continuing operations as we expect continuing cash flows from these markets. For additional information on the care centers consolidated with care centers servicing the same markets and the care centers sold see Note 4 –Exit Activities.

As of September 30, 2013, assets held for sale included $0.3 million in fixed assets, net, $0.5 million in intangible assets and $0.5 million in goodwill.

Net revenues and operating results for the periods presented for the care centers classified as discontinued operations are as follows (dollars in millions):
			For the Three-Month Periods Ended September 30,				For the Nine-Month Periods Ended September 30,
			2013		2012		2013		2012
	Net revenues	$	7.3	$	11.3	$	25.9	$	34.4
	(Loss) before income taxes		(1.2)		(0.7)		(3.4)		(4.2)
	Income tax benefit		0.5		0.3		1.4		1.7
	Discontinued operations, net of tax	$	(0.7)	$	(0.4)	$	(2.0)	$	(2.5)
Net revenues and operating results for the periods presented for the care centers removed from the classification of held for sale during the three-month period ended September 30, 2012, are as follows (dollars in millions):
			For the Three-Month Periods Ended September 30,				For the Nine-Month Periods Ended September 30,
			2013		2012		2013		2012
	Net revenues	$	2.8	$	3.6	$	9.2	$	10.9
	Income before income taxes		0.0		0.4		0.6		1.4
	Income tax (expense)		0.0		(0.1)		(0.2)		(0.5)
	Income from continuing operations, net of tax	$	0.0	$	0.3	$	0.4	$	0.9