Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

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
September 30, 2012
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services		Corporate			Intersegment Eliminations			Consolidated

Revenues from external customers	$	409,750		$	29,032	$	21,686	$	2		$	—		$	460,470
Intersegment revenues	—			31,885		432		—			(32,317		)	—
Total net revenues	409,750			60,917		22,118		2			(32,317		)	460,470

Operating salaries and benefits	191,048			51,809		16,522		—			—			259,379
Self-insurance for workers’ compensation and
general and professional liability insurance	14,237			601		335		64			—			15,237
Other operating costs	124,858			2,130		2,948		—			(32,317		)	97,619
General and administrative expenses(1)	8,523			1,514		596		14,449			—			25,082
Provision for losses on
accounts receivable	4,758			374		118		—			—			5,250
Segment operating income (loss)	$	66,326		$	4,489	$	1,599	$	(14,511	)	$	—		$	57,903

Center rent expense	36,323			154		170		—			—			36,647
Depreciation and amortization	7,276			267		191		920			—			8,654
Interest, net	(53		)	—		—		4,511			—			4,458
Net segment income (loss)	$	22,780		$	4,068	$	1,238	$	(19,942	)	$	—		$	8,144

Identifiable segment assets	$	381,223		$	17,605	$	19,806	$	298,364		$	20,915		$	737,913
Goodwill	$	30,297		$	75	$	4,533	$	—		$	—		$	34,905
Segment capital expenditures	$	6,081		$	200	$	40	$	401		$	—		$	6,722

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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
September 30, 2011
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services		Corporate			Intersegment Eliminations			Consolidated

Revenues from external customers	$	418,097		$	29,568	$	20,996	$	15		$	—		$	468,676
Intersegment revenues	—			32,791		757		—			(33,548		)	—
Total net revenues	418,097			62,359		21,753		15			(33,548		)	468,676

Operating salaries and benefits	193,403			54,298		16,231		—			—			263,932
Self-insurance for workers’ compensation and
general and professional liability insurance	13,501			633		344		67			—			14,545
Other operating costs	121,890			2,374		2,989		—			(33,548		)	93,705
General and administrative expenses(1)	10,112			2,309		540		14,826			—			27,787
Provision for losses on
accounts receivable	4,460			73		71		—			—			4,604
Segment operating income (loss)	$	74,731		$	2,672	$	1,578	$	(14,878	)	$	—		$	64,103

Center rent expense	35,642			140		170		—			—			35,952
Depreciation and amortization	6,770			236		187		970			—			8,163
Interest, net	(33		)	—		—		4,867			—			4,834
Net segment income (loss)	$	32,352		$	2,296	$	1,221	$	(20,715	)	$	—		$	15,154

Identifiable segment assets	$	384,576		$	16,254	$	20,039	$	343,550		$	20,881		$	785,300
Goodwill	$	31,071		$	75	$	4,533	$	—		$	—		$	35,679
Segment capital expenditures	$	12,934		$	149	$	63	$	1,044		$	—		$	14,190

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

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
Nine Months Ended
September 30, 2012
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services			Corporate			Intersegment Eliminations			Consolidated

Revenues from external customers	$	1,220,673		$	88,858	$	66,559		$	15		$	—		$	1,376,105
Intersegment revenues	—			98,152		1,982			—			(100,134		)	—
Total net revenues	1,220,673			187,010		68,541			15			(100,134		)	1,376,105

Operating salaries and benefits	570,169			158,170		51,637			—			—			779,976
Self-insurance for workers’ compensation and
general and professional liability insurance	40,683			1,820		1,049			192			—			43,744
Other operating costs	374,346			6,991		8,411			—			(100,134		)	289,614
General and administrative expenses(1)	26,624			6,284		1,831			46,542			—			81,281
Provision for losses on
accounts receivable	13,802			1,154		201			—			—			15,157
Segment operating income (loss)	$	195,049		$	12,591	$	5,412		$	(46,719	)	$	—		$	166,333

Center rent expense	108,606			432		508			—			—			109,546
Depreciation and amortization	21,420			778		562			2,828			—			25,588
Interest, net	(81		)	—		(3		)	13,381			—			13,297
Net segment income (loss)	$	65,104		$	11,381	$	4,345		$	(62,928	)	$	—		$	17,902

Identifiable segment assets	$	381,223		$	17,605	$	19,806		$	298,364		$	20,915		$	737,913
Goodwill	$	30,297		$	75	$	4,533		$	—		$	—		$	34,905
Segment capital expenditures	$	22,408		$	758	$	151		$	1,234		$	—		$	24,551

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

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
Nine Months Ended
September 30, 2011
	Inpatient Services			Rehabilitation Therapy Services		Medical Staffing Services		Corporate			Intersegment Eliminations			Consolidated

Revenues from external customers	$	1,250,568		$	89,645	$	65,309	$	36		$	—		$	1,405,558
Intersegment revenues	—			98,710		2,079		—			(100,789		)	—
Total net revenues	1,250,568			188,355		67,388		36			(100,789		)	1,405,558

Operating salaries and benefits	577,160			161,925		50,789		—			—			789,874
Self-insurance for workers’ compensation and
general and professional liability insurance	40,480			1,918		1,043		202			—			43,643
Other operating costs	362,158			7,082		8,548		—			(100,789		)	276,999
General and administrative expenses(1)	30,387			7,139		1,804		45,159			—			84,489
Provision for losses on
accounts receivable	13,438			713		47		—			—			14,198
Segment operating income (loss)	$	226,945		$	9,578	$	5,157	$	(45,325	)	$	—		$	196,355

Center rent expense	106,487			394		513		—			—			107,394
Depreciation and amortization	19,331			689		561		2,660			—			23,241
Interest, net	(69		)	—		1		14,756			—			14,688
Net segment income (loss)	$	101,196		$	8,495	$	4,082	$	(62,741	)	$	—		$	51,032

Identifiable segment assets	$	384,576		$	16,254	$	20,039	$	343,550		$	20,881		$	785,300
Goodwill	$	31,071		$	75	$	4,533	$	—		$	—		$	35,679
Segment capital expenditures	$	27,309		$	1,102	$	136	$	3,799		$	—		$	32,346

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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 September 30,
	2012		2011
Net segment income	$	8,144	$	15,154
Transaction costs	1,034		—
Loss on sale of assets, net	189		809
Restructuring costs	—		2,426
Loss on asset impairment	—		317,091
Consolidated income (loss) before income taxes
and discontinued operations	$	6,921	$	(305,172	)



	For the Nine Months Ended September 30,
	2012		2011
Net segment income	$	17,902	$	51,032
Transaction costs	2,871		—
Loss on sale of assets, net	189		809
Restructuring costs	—		2,728
Loss on asset impairment	—		317,091
Consolidated income (loss) before income taxes
and discontinued operations	$	14,842	$	(269,596	)

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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