Acquisitions (Tables)

3 Months Ended

Mar. 31, 2016

Transaction Related Expenses as Incurred

Transaction-related expenses comprised the following costs for the three months ended March 31, 2016 and 2015 (in thousands):

	Three Months Ended March 31,
	2016		2015
Advisory and financing commitment fees	$	14,850	$	10,337
Legal, accounting and other costs		11,448		3,819
Severance and contract termination costs		—		4,260
	$	26,298	$	18,416

Pro Forma Financial Information for Acquisitions Occurred

The following table provides certain pro forma financial information for the Company as if the 2015 and 2016 Acquisitions occurred as of January 1, 2015 (in thousands):

	Three Months Ended March 31,
	2016		2015
Revenue	$	725,667	$	685,480
Income from continuing operations, before income taxes	$	12,363	$	14,779

Priory [Member]

Preliminary Fair Values of Assets Acquired and Liabilities Assumed at Corresponding Acquisition Date

The preliminary fair values of assets acquired and liabilities assumed for Priory, at February 16, 2016, were as follows (in thousands):

Cash	$	10,253
Accounts receivable		57,831
Prepaid expenses and other current assets		7,920
Property and equipment		1,603,307
Goodwill		652,146
Intangible assets		43,394
Other assets		7,760
Total assets acquired		2,382,611
Accounts payable		24,203
Accrued salaries and benefits		39,588
Other accrued expenses		46,806
Deferred tax liabilities – noncurrent		71,233
Debt		1,348,389
Other liabilities		45,161
Total liabilities assumed		1,575,380
Net assets acquired	$	807,231

CRC Health Group Inc and Other Acquisitions [Member]

Preliminary Fair Values of Assets Acquired and Liabilities Assumed at Corresponding Acquisition Date

The preliminary fair values of assets acquired and liabilities assumed, at the corresponding acquisition dates, during the year ended December 31, 2015 in connection with the 2015 acquisitions were as follows (in thousands):

	CRC		Other		Total
Cash	$	19,599	$	5,417	$	25,016
Accounts receivable		47,035		27,059		74,094
Prepaid expenses and other current assets		26,945		2,738		29,683
Property and equipment		136,163		273,143		409,306
Goodwill		1,043,601		315,010		1,358,611
Intangible assets		37,000		204		37,204
Deferred tax assets-noncurrent		74,383		—		74,383
Other assets		6,478		51		6,529
Total assets acquired		1,391,204		623,622		2,014,826
Accounts payable		4,741		4,564		9,305
Accrued salaries and benefits		14,827		3,321		18,148
Other accrued expenses		38,873		5,291		44,164
Deferred tax liabilities – noncurrent		—		13,541		13,541
Debt		904,467		—		904,467
Other liabilities		34,720		10		34,730
Total liabilities assumed		997,628		26,727		1,024,355
Redeemable noncontrolling interests		—		9,132		9,132
Net assets acquired	$	393,576	$	587,763	$	981,339