13. EXIT ACTIVITIES

During 2011, we consolidated 27 operating home health care centers and five operating hospice care centers with care centers servicing the same markets, closed 27 operating home health care centers and two operating hospice care centers and discontinued the start-up process associated with two prospective unopened home health care centers. The 27 operating home health care centers and two operating hospice care centers that we closed are presented in discontinued operations in our consolidated financial statements. See Note 4 for additional information.

During 2010, we consolidated 59 operating home health care centers and three operating hospice care centers with care centers servicing the same markets, closed 19 operating home health care centers and four operating hospice care centers and discontinued the start-up process associated with 41 prospective unopened home health locations and six prospective unopened hospice locations which were incurring expenses.

As part of our exit activities associated with these locations, we have recorded the following as of December 31, 2011 and 2010 (amounts in millions):


	2011 Exit Activities						2010 Exit Activities
	Home Health		Hospice		Total		Home Health		Hospice		Total		Balance Sheet Line Item	Income Statement Line Item
Lease Terminations:
Consolidations	$	1.3	$	0.1	$	1.4	$	8.6	$	0.8	$	9.4	Accrued Expenses	General and administrative - other
Closures		1.6		—		1.6		1.1		0.5		1.6	Accrued Expenses	Discontinued operations

Total		2.9		0.1		3.0		9.7		1.3		11.0
Relocation costs:
Consolidations		—		—		—		0.5		0.1		0.6	Accrued Expenses	General and administrative - other
Closures		—		—		—		0.1		—		0.1	Accrued Expenses	Discontinued operations

Total		—		—		—		0.6		0.1		0.7
Severance:
Consolidations		0.2		—		0.2		0.4		—		0.4	Payroll and employee benefits	General and administrative - salaries and benefits
Closures		0.5		—		0.5		0.2		0.1		0.3	Payroll and employee benefits	Discontinued operations

Total		0.7		—		0.7		0.6		0.1		0.7
Intangible write-off:
Consolidations		0.6		0.2		0.8		1.9		0.1		2.0	Intangible Assets	Depreciation and amortization
Closures		0.1		0.2		0.3		0.2		—		0.2	Intangible Assets	Discontinued operations

Total		0.7		0.4		1.1		2.1		0.1		2.2
Asset write-off:
Consolidations		0.2		—		0.2		—		—		—	Property and equipment	Miscellaneous, net
Closures		0.2		—		0.2		—		—		—	Property and equipment	Discontinued operations

Total		0.4		—		0.4		—		—		—
Total
Consolidations		2.3		0.3		2.6		11.4		1.0		12.4
Closures		2.4		0.2		2.6		1.6		0.6		2.2

Total	$	4.7	$	0.5	$	5.2	$	13.0	$	1.6	$	14.6

Our reserve activity for the 2011 and 2010 closures and consolidations is as follows (amounts in millions):


	2011 Exit Activity						2010 Exit Activity
	Lease Termination			Severance			Lease Termination			Severance
Balances at December 31, 2009	$	—		$	—		$	—		$	—
Charge in 2010		—			—			10.2			0.7
Cash expenditures in 2010		—			—			(2.6	)		(0.5	)

Balances at December 31, 2010		—			—			7.6			0.2
Charge in 2011		3.0			0.7			0.8			—
Cash expenditures in 2011		(0.3	)		(0.6	)		(3.4	)		(0.2	)

Balances at December 31, 2011	$	2.7		$	0.1		$	5.0		$	—