Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables summarize, for the periods indicated, operating results and other financial information, by business segment (in thousands):

As of and for the
Three Months Ended
June 30, 2012
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services			Corporate			Intersegment Eliminations			Consolidated
Revenues from external customers	$	405,135		$	29,197	$	22,804		$	6		$	—		$	457,142
Intersegment revenues	—			32,804		719			—			(33,523		)	—
Total net revenues	405,135			62,001		23,523			6			(33,523		)	457,142
Operating salaries and benefits	189,415			52,465		17,626			—			—			259,506
Self-insurance for workers’ compensation and
general and professional liability insurance	12,157			610		359			64			—			13,190
Other operating costs	123,820			2,364		2,768			—			(33,523		)	95,429
General and administrative expenses(1)	8,841			2,240		621			16,049			—			27,751
Provision for losses on
accounts receivable	4,614			366		119			—			—			5,099
Segment operating income (loss)	$	66,288		$	3,956	$	2,030		$	(16,107	)	$	—		$	56,167
Center rent expense	36,207			145		170			—			—			36,522
Depreciation and amortization	7,115			260		187			942			—			8,504
Interest, net	(8		)	—		(3		)	4,440			—			4,429
Net segment income (loss)	$	22,974		$	3,551	$	1,676		$	(21,489	)	$	—		$	6,712
Identifiable segment assets	$	392,959		$	17,884	$	20,073		$	283,325		$	20,863		$	735,104
Goodwill	$	30,297		$	75	$	4,533		$	—		$	—		$	34,905
Segment capital expenditures	$	7,363		$	152	$	60		$	293		$	—		$	7,868

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(1) General and administrative expenses include operating administrative expenses.

The term “segment operating income (loss)” is defined as earnings before center rent expense, depreciation and amortization, interest, restructuring costs, transaction costs, income tax expense and discontinued operations.

The term “net segment income (loss)” is defined as earnings before restructuring costs, transaction costs, income tax expense and discontinued operations.

As of and for the
Three Months Ended
June 30, 2011
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services		Corporate			Intersegment Eliminations			Consolidated
Revenues from external customers	$	418,584		$	29,979	$	21,998	$	14		$	—		$	470,575
Intersegment revenues	—			33,225		699		—			(33,924		)	—
Total net revenues	418,584			63,204		22,697		14			(33,924		)	470,575
Operating salaries and benefits	192,826			53,494		17,141		—			—			263,461
Self-insurance for workers’ compensation and
general and professional liability insurance	13,480			642		352		67			—			14,541
Other operating costs	120,844			2,540		2,699		—			(33,924		)	92,159
General and administrative expenses(1)	10,264			2,431		609		14,953			—			28,257
Provision for losses on
accounts receivable	4,025			316		77		—			—			4,418
Segment operating income (loss)	$	77,145		$	3,781	$	1,819	$	(15,006	)	$	—		$	67,739
Center rent expense	35,453			127		170		—			—			35,750
Depreciation and amortization	6,354			227		187		861			—			7,629
Interest, net	(31		)	—		—		4,885			—			4,854
Net segment income (loss)	$	35,369		$	3,427	$	1,462	$	(20,752	)	$	—		$	19,506
Identifiable segment assets	$	701,565		$	16,490	$	19,571	$	337,425		$	20,864		$	1,095,915
Goodwill	$	345,800		$	75	$	4,533	$	—		$	—		$	350,408
Segment capital expenditures	$	7,869		$	224	$	19	$	1,207		$	—		$	9,319

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(1) General and administrative expenses include operating administrative expenses.

The term “segment operating income (loss)” is defined as earnings before center rent expense, depreciation and amortization, interest, restructuring costs, transaction costs, income tax expense and discontinued operations.

The term “net segment income (loss)” is defined as earnings before restructuring costs, transaction costs, income tax expense and discontinued operations.

As of and for the
Six Months Ended
June 30, 2012
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services			Corporate			Intersegment Eliminations			Consolidated
Revenues from external customers	$	810,923		$	59,826	$	44,873		$	13		$	—		$	915,635
Intersegment revenues	—			66,267		1,550			—			(67,817		)	—
Total net revenues	810,923			126,093		46,423			13			(67,817		)	915,635
Operating salaries and benefits	379,124			106,359		35,112			—			—			520,595
Self-insurance for workers’ compensation and
general and professional liability insurance	26,445			1,219		715			128			—			28,507
Other operating costs	249,488			4,861		5,463			—			(67,817		)	191,995
General and administrative expenses(1)	18,101			4,770		1,236			32,092			—			56,199
Provision for losses on
accounts receivable	9,044			781		83			—			—			9,908
Segment operating income (loss)	$	128,721		$	8,103	$	3,814		$	(32,207	)	$	—		$	108,431
Center rent expense	72,282			279		338			—			—			72,899
Depreciation and amortization	14,144			511		371			1,908			—			16,934
Interest, net	(28		)	—		(3		)	8,870			—			8,839
Net segment income (loss)	$	42,323		$	7,313	$	3,108		$	(42,985	)	$	—		$	9,759
Identifiable segment assets	$	392,959		$	17,884	$	20,073		$	283,325		$	20,863		$	735,104
Goodwill	$	30,297		$	75	$	4,533		$	—		$	—		$	34,905
Segment capital expenditures	$	16,020		$	562	$	112		$	1,135		$	—		$	17,829

______________________________________

(1) General and administrative expenses include operating administrative expenses.

The term “segment operating income (loss)” is defined as earnings before center rent expense, depreciation and amortization, interest, restructuring costs, transaction costs, income tax expense and discontinued operations.

The term “net segment income (loss)” is defined as earnings before restructuring costs, transaction costs, income tax expense and discontinued operations.

As of and for the
Six Months Ended
June 30, 2011
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services			Corporate			Intersegment Eliminations			Consolidated
Revenues from external customers	$	832,471		$	60,077	$	44,314		$	21		$	—		$	936,883
Intersegment revenues	—			65,920		1,321			—			(67,241		)	—
Total net revenues	832,471			125,997		45,635			21			(67,241		)	936,883
Operating salaries and benefits	383,756			107,629		34,558			—			—			525,943
Self-insurance for workers’ compensation and
general and professional liability insurance	26,979			1,285		699			135			—			29,098
Other operating costs	240,268			4,708		5,559			—			(67,241		)	183,294
General and administrative expenses(1)	20,277			4,829		1,264			30,333			—			56,703
Provision for losses on
accounts receivable	8,979			640		(24		)	—			—			9,595
Segment operating income (loss)	$	152,212		$	6,906	$	3,579		$	(30,447	)	$	—		$	132,250
Center rent expense	70,845			254		343			—			—			71,442
Depreciation and amortization	12,560			453		374			1,690			—			15,077
Interest, net	(37		)	—		1			9,889			—			9,853
Net segment income (loss)	$	68,844		$	6,199	$	2,861		$	(42,026	)	$	—		$	35,878
Identifiable segment assets	$	701,565		$	16,490	$	19,571		$	337,425		$	20,864		$	1,095,915
Goodwill	$	345,800		$	75	$	4,533		$	—		$	—		$	350,408
Segment capital expenditures	$	14,376		$	953	$	72		$	2,755		$	—		$	18,156

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(1) General and administrative expenses include operating administrative expenses.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table reconciles net segment income to consolidated income before income taxes and discontinued operations (in thousands):

	For the Three Months Ended June 30,
	2012			2011
Net segment income	$	6,712		$	19,506
Transaction costs	(1,838		)	—
Restructuring costs	—			(167		)
Consolidated income before income taxes
and discontinued operations	$	4,874		$	19,339

	For the Six Months Ended June 30,
	2012			2011
Net segment income	$	9,759		$	35,878
Transaction costs	(1,838		)	—
Restructuring costs	—			(303		)
Consolidated income before income taxes
and discontinued operations	$	7,921		$	35,575