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Business Segment Information (Tables)
6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment net revenues by major payer source
Segment net revenues by major payer source were as follows (in millions): 
 
Second Quarter
 
2014
 
2013
 
Home
Health
 
Hospice
 
Community Care
 
Total
 
Home
Health
 
Hospice
 
Total
Medicare
$
218.4

 
$
161.5

 
$

 
$
379.9

 
$
192.7

 
$
167.8

 
$
360.5

Medicaid and Local Government
8.6

 
6.3

 
55.8

 
70.7

 
11.2

 
7.5

 
18.7

Commercial Insurance and Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
Paid at episodic rates
17.8

 

 

 
17.8

 
14.0

 

 
14.0

Other
24.2

 
4.5

 
0.9

 
29.6

 
17.3

 
3.9

 
21.2

Total net revenues
$
269.0

 
$
172.3

 
$
56.7

 
$
498.0

 
$
235.2

 
$
179.2

 
$
414.4

 
 
First Six Months
 
2014
 
2013
 
Home
Health
 
Hospice
 
Community Care
 
Total
 
Home
Health
 
Hospice
 
Total
Medicare
$
427.2

 
$
324.7

 
$

 
$
751.9

 
$
385.9

 
$
335.0

 
$
720.9

Medicaid and Local Government
17.1

 
12.5

 
112.2

 
141.8

 
22.4

 
14.5

 
36.9

Commercial Insurance and Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
Paid at episodic rates
33.4

 

 

 
33.4

 
28.2

 

 
28.2

Other
47.3

 
9.5

 
1.6

 
58.4

 
34.8

 
9.2

 
44.0

Total net revenues
$
525.0

 
$
346.7

 
$
113.8

 
$
985.5

 
$
471.3

 
$
358.7

 
$
830.0

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 three months ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
269,068

  
 
$
172,322

  
 
$
56,650

 
 
$
498,040

  
Operating contribution
$
41,027


 
$
22,087

(1)
 
$
8,507

(1)
 
$
71,621

  
Corporate expenses
 
 
 
 
 
 
 
 
 
(23,666
)
(1)
Depreciation and amortization
 
 
 
 
 
 
 
 
 
(6,368
)
 
Interest expense and other, net
 
 
 
 
 
 
 
 
 
(24,689
)
 
Income before income taxes
 
 
 
 
 
 
 
 
 
$
16,898

  
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
235,216

  
 
$
179,208

  
 
$

 
 
$
414,424

  
Operating contribution
$
29,917


 
$
26,437

(1)
 
$


 
$
56,354

  
Corporate expenses
 
 
 
 
 
 
 
 
 
(18,084
)
(1)
Depreciation and amortization
 
 
 
 
 
 
 
 
 
(4,730
)
 
Interest expense and other, net
 
 
 
 
 
 
 
 
 
(22,148
)
 
Income before income taxes
 
 
 
 
 
 
 
 
 
$
11,392

  
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
525,044

  
 
$
346,724

  
 
$
113,777

 
 
$
985,545

  
Operating contribution
$
70,630

(1)
 
$
39,631

(1)
 
$
17,786

(1)
 
$
128,047

  
Corporate expenses
 
 
 
 
 
 
 
 
 
(48,228
)
(1)
Depreciation and amortization
 
 
 
 
 
 
 
 
 
(12,815
)
 
Interest expense and other, net
 
 
 
 
 
 
 
 
 
(49,187
)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
17,817

  
Segment assets
$
396,674


 
$
357,206


 
$
170,111


 
$
923,991

  
Corporate assets
 
 
 
 
 
 
 
 
 
326,560


Total assets
 
 
 
 
 
 
 
 
 
$
1,250,551

  
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
471,277

  
 
$
358,738

  
 
$

 
 
$
830,015

  
Operating contribution
$
60,105


 
$
53,858

(1)
 
$


 
$
113,963

  
Corporate expenses
 
 
 
 
 
 
 
 
 
(36,771
)
(1)
Goodwill and other long-lived asset impairment
 
 
 
 
 
 
 
 
 
(224,320
)
(2)
Depreciation and amortization
 
 
 
 
 
 
 
 
 
(9,511
)
 
Interest expense and other, net
 
 
 
 
 
 
 
 
 
(44,441
)
 
Loss before income taxes
 
 
 
 
 
 
 
 
 
$
(201,080
)
  
Segment assets
$
247,164


 
$
632,773

(2)
 
$


 
$
879,937

  
Corporate assets
 
 
 
 
 
 
 
 
 
376,287

(2)
Total assets
 
 
 
 
 
 
 
 
 
$
1,256,224

  
 
(1)
For the second quarter and first six months of 2014, the Company recorded charges relating to cost savings initiatives and acquisition and integration activities of $4.7 million and $10.0 million, respectively. For the second quarter and first six months of 2013, the Company recorded charges relating to cost savings initiatives and acquisition and integration activities of $0.8 million and $0.9 million, respectively.
The charges were reflected as follows for segment reporting purposes (in millions): 
 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
Home Health
$

 
$

 
$
0.6

 
$

Hospice
2.5

 
0.7

 
5.4

 
0.7

Community Care
0.1

 

 
0.1

 

Corporate expenses
2.1

 
0.1

 
3.9

 
0.2

Total
$
4.7

 
$
0.8

 
$
10.0

 
$
0.9


 
(2)
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. See Note 9.
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 the impairment.
Schedule of segment reporting cost allocation to segment
The charges were reflected as follows for segment reporting purposes (in millions): 
 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
Home Health
$

 
$

 
$
0.6

 
$

Hospice
2.5

 
0.7

 
5.4

 
0.7

Community Care
0.1

 

 
0.1

 

Corporate expenses
2.1

 
0.1

 
3.9

 
0.2

Total
$
4.7

 
$
0.8

 
$
10.0

 
$
0.9