Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2013

Segment net revenues by major payer source

Segment net revenues by major payer source were as follows (in millions):



	Home Health		Hospice		Community Care		Total
For the year ended December 31, 2013
Medicare	$	787.3	$	667.9	$	—	$	1,455.2
Medicaid and Local Government	43.8		28.3		44.5		116.6
Commercial Insurance and Other:
Paid at episodic rates	59.6		—		—		59.6
Other	75.1		19.0		1.1		95.2
Total net revenues	$	965.8	$	715.2	$	45.6	$	1,726.6

For the year ended December 31, 2012
Medicare	$	749.0	$	715.5	$	—	$	1,464.6
Medicaid and Local Government	46.8		27.7		—		74.4
Commercial Insurance and Other:
Paid at episodic rates	85.2		—		—		85.2
Other	67.0		21.6		—		88.6
Total net revenues	$	948.0	$	764.8	$	—	$	1,712.8

For the year ended December 31, 2011
Medicare	$	799.2	$	729.1	$	—	$	1,528.3
Medicaid and Local Government	52.3		30.8		—		83.1
Commercial Insurance and Other:
Paid at episodic rates	77.7		—		—		77.7
Other	83.4		26.3		—		109.7
Total net revenues	$	1,012.6	$	786.2	$	—	$	1,798.8

Segment information about the Company's operations

Segment information about the Company's operations is as follows (in thousands):



	Home Health			Hospice			Community Care		Total
For the year ended December 31, 2013
Net revenue	$	965,848		$	715,190		$	45,606	$	1,726,644
Operating contribution	$	113,809	(1)	$	78,810	(1)	$	6,385	$	199,004
Corporate expenses									(96,146		)	(1)
Goodwill, intangibles and other long-lived asset impairment									(610,436		)	(3)
Depreciation and amortization									(20,110		)
Interest expense and other, net									(110,384		)	(2)
(Loss) from continuing operations before income taxes and equity in earnings of affiliate									$	(638,072	)
Segment assets	$	406,806		$	357,044	(3)	172,418		$	936,268
Corporate assets									326,349			(3)
Total assets									$	1,262,617
For the year ended December 31, 2012
Net revenue	$	948,019		$	764,785		$	—	$	1,712,804
Operating contribution	$	125,445	(1)	$	133,133	(1)	$	—	$	258,578
Corporate expenses									(83,700		)	(1)
Goodwill, intangibles and other long-lived asset impairment									(19,132		)	(3)
Depreciation and amortization									(26,581		)
Gain on sale of businesses									8,014
Interest expense and other, net									(89,947		)	(2)
Income from continuing operations before income taxes and equity in loss of affiliate									$	47,232
Segment assets	$	242,603	(3)	$	858,502	(3)	$	—	$	1,101,105
Corporate assets									409,829
Total assets									$	1,510,934
For the year ended December 31, 2011
Net revenue	$	1,012,566		$	786,212		$	—	$	1,798,778
Operating contribution	$	126,194	(1)	$	139,723	(1)	$	—	$	265,917
Corporate expenses									(115,861		)	(1)
Goodwill, intangibles and other long-lived asset impairment									(643,305		)	(3)
Dividend income									8,590			(4)
Depreciation and amortization									(30,140		)
Gain on sale of assets and businesses, net									1,061
Interest expense and other, net									(88,610		)	(2)
(Loss) from continuing operations before income taxes and equity in earnings of affiliate									$	(602,348	)
Segment assets	$	239,751	(3)	$	905,284	(3)	$	—	$	1,145,035
Corporate assets									385,293			(3)
Total assets									$	1,530,328

Charges reflecting for segment reporting purposes

The charges were reflected as follows for segment reporting purposes (in millions):



	2013		2012			2011
Home Health	$	3.3	$	5.6		$	7.7
Hospice	8.2		0.4			3.7
Corporate expenses	16.0		(0.3		)	37.7
Total	$	27.5	$	5.7		$	49.1

(2)

For the year ended December 31, 2013, interest expense and other, net included charges of $19.1 million relating to the write-off of deferred debt issuance costs and fees associated with the Company entering a new credit agreement, dated October 18, 2013. For the year ended December 31, 2012, interest expense and other, net included charges of $0.5 million relating to the write-off of deferred debt issuance costs associated with the revolving credit facility. In addition, interest expense and other, net for the year ended December 31, 2011 included charges of $3.8 million associated with terminating the Company’s interest rate swaps in connection with the refinancing of the Company’s Term Loan A and Term Loan B under the Company’s former credit agreement. See Note 12 for additional information.


(3)	The Company performed its annual impairment test as of December 31, 2013 for its Home Health, Hospice and Community Care segments. Based on this assessment, the Company recorded non-cash impairment charges relating to the goodwill and intangibles of its Hospice segment of approximately $379.8 million and $6.3 million, respectively, for the year 2013.

At March 31, 2013, the Company performed an interim impairment test of its Hospice reporting unit. Based on the results of the interim impairment test, the Company recorded a non-cash impairment charge relating to goodwill of approximately $220.8 million. As part of that analysis, the Company reviewed the valuation of its owned real estate utilized in the Hospice business. The analysis indicated that two of the Company's hospice inpatient units had estimated fair values lower than their carrying values and, as such, the Company recorded a non-cash impairment charge of approximately $1.9 million. In addition, the Company conducted an evaluation of the various systems used to support its field operations. In connection with that review, the Company made a strategic decision to replace its business intelligence software platform and, as such, recorded a non-cash impairment charge, related to developed software, of approximately $1.6 million. Hospice and corporate assets were reduced by $220.8 million and $3.5 million, respectively, as a result of these impairments.

For the year ended December 31, 2012, the Company recorded non-cash impairment charges associated with a write-off of its trade name intangibles of $19.1 million in connection with the Company's initiative to re-brand its operations under the Gentiva name. Home Health and Hospice assets were reduced by $6.0 million and $13.1 million, respectively, as of December 31, 2012 as a result of the impairment.

For the year ended December 31, 2011, the Company recorded non-cash impairment charges associated with goodwill, intangibles and other long-lived assets of $643.3 million. This charge was the result of (i) changes in the Company's business climate, (ii) uncertainties around Medicare reimbursement as the federal government worked to reduce the federal deficit, (iii) a significant decline in the price of the Company's common stock during the fiscal year, (iv) a write-down of software and (v) a change in the estimated fair value of real estate. Home Health, Hospice and corporate assets were reduced by $408.4 million, $193.7 million and $41.2 million, respectively, as of December 31, 2011, as a result of the impairment.


(4)	For the year ended December 31, 2011, the Company recognized dividend income of $8.6 million as a result of the sale of a portion of the Company’s combined common and preferred ownership of CareCentrix.

- 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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