Discontinued Operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On September 30, 2013, the Company completed the sale of certain assets comprising its Portamedic service line. The Portamedic service line is accounted for as a discontinued operation in this Report. During 2014, the Company sold certain assets comprising the Heritage Labs and Hooper Holmes Services business to Clinical Reference Laboratory, Inc. ("CRL"). The assets sold to CRL qualified as assets held for sale in April 2014. The operating results of these businesses are also segregated and reported as discontinued operations in this Report.

Following the sale of the Portamedic service line, the Company reassessed its segment reporting. Beginning in the fourth quarter of 2013, the Company began reporting financial results in three segments: Health and Wellness (health risk assessments including biometric screenings), Heritage Labs (laboratory testing) and Hooper Holmes Services (health information services). Following the sale of Heritage Labs and Hooper Holmes Services in the third quarter of 2014, the Company reverted to one reporting segment, Health and Wellness. The continuing operations and the Heritage Labs, Hooper Holmes Services and Portamedic discontinued segments had customers and suppliers in common. The continuing and discontinued operations also shared certain selling, general and administrative services. As a result, the Company does not have reliable information for the historical impact of Heritage Labs and Hooper Holmes Services on our cash flows for the three month period endedMarch 31, 2014.

The following table summarizes the major classes of line items constituting the pretax results of operations of Heritage Labs and Hooper Holmes Services for the three month period endedMarch 31, 2014, which are reported as a component of discontinued operations in the consolidated statement of operations. There was no income tax recorded in discontinued operations for Heritage Labs and Hooper Holmes Services for any period presented.

	Three Months Ended
(in thousands)	March 31, 2014
Revenues
Heritage Labs	$	2,312
Hooper Holmes Services	$	2,988
Total revenue	$	5,300
Cost of Sales
Heritage Labs	$	1,760
Hooper Holmes Services	$	2,582
Total cost of sales	$	4,342
Selling, General & Administrative Expenses
Heritage Labs	$	203
Hooper Holmes Services	$	468
Total selling, general & administrative expenses	$	671
(Loss) income from Discontinued Operations
Heritage Labs	$	349
Hooper Holmes Services	$	(62	)
Total income from discontinued operations	$	287
Reconciliation to statement of operations:
Portamedic discontinued operations and other	$	29
Gain on sale of subsidiaries, net of adjustments	$	(150	)
Income from discontinued operations	$	166

Operating cash flow from discontinued operations during the three month period endedMarch 31, 2014 was $0.5 million. Changes in working capital from discontinued operations during the three month period endedMarch 31, 2014 was $0.1 million. The Company recorded non-cash operating charges for depreciation and bad debt expense of $0.1 million. There were no significant investing or financing activities from discontinued operations during the three month period endedMarch 31, 2014. The determination of operating cash flow from discontinued operations for the three month period endedMarch 31, 2014 includes a degree of management judgment and estimates. The Company has not allocated any general corporate overhead to discontinued operations.