EXIT ACTIVITIES

12 Months Ended

Dec. 31, 2012

EXIT ACTIVITIES

13. EXIT ACTIVITIES

During 2012, we consolidated five operating home health care centers and four operating hospice care centers with care centers servicing the same markets and closed three operating home health care centers. We recorded lease termination liabilities of $0.9 million and severance of $0.1 million as of December 31, 2012 of which $0.2 million is included in discontinued operations.

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 locations.

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.

The care centers that were closed in 2012, 2011 and 2010 are presented in discontinued operations in our consolidated financial statements. See Note 4 for additional information.

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

	2011 Exit Activities						2010 Exit Activities						Balance Sheet Line Item	Income Statement Line Item
	Home Health		Hospice		Total		Home Health		Hospice		Total
Lease Terminations:
Consolidations	$	1.3	$	0.1	$	1.4	$	8.6	$	0.8	$	9.4	Accrued Expenses	General and administrative - other
Closures		1.7		—		1.7		1.1		0.5		1.6	Accrued Expenses	Discontinued operations
Total		3.0		0.1		3.1		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		2.5		0.2		2.7		1.6		0.6		2.2
Total	$	4.8	$	0.5	$	5.3	$	13.0	$	1.6	$	14.6

Our reserve activity for the 2012, 2011 and 2010 closures and consolidations is as follows (amounts in millions):

	2012 Exit Activity						2011 Exit Activity						2010 Exit Activity
	Lease Termination			Severance			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			—
Charge in 2012		0.9			0.1			0.1			—			—			—
Cash expenditures in 2012		(0.3	)		(0.1	)		(2.5	)		(0.1	)		(4.7	)		—
Balances at December 31, 2012	$	0.6		$	—		$	0.3		$	—		$	0.3		$	—