SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

SEGMENT INFORMATION

15. SEGMENT INFORMATION

Our operations involve servicing patients through our two reportable business segments: home health and hospice. Our home health segment delivers a wide range of services in the homes of individuals who may be recovering from surgery, have a chronic disability or terminal illness or need assistance with the essential activities of daily living. Our hospice segment provides palliative care and comfort to terminally ill patients and their families. The “other” column in the following tables consists of costs relating to corporate support functions that are not directly attributable to a specific segment.

During 2012, 2011 and 2010, we closed 3, 29 and 23 care centers, respectively, which are reflected as discontinued operations in accordance with applicable accounting guidance. See Note 4 for additional information. Prior periods have been reclassified to conform to the current presentation.

During the quarter ended December 31, 2012, management revised its measurement of the reportable segments’ operating income (loss). Operating income (loss) for the reportable segments has been restated to include certain expenses previously captured in the corporate support function which are directly attributable to the support of the specific segment. Prior periods have been restated to conform to the current presentation.

Management evaluates performance and allocates resources based on the operating income of the reportable segments, which includes an allocation of corporate expenses directly attributable to the specific segment and includes revenues and all other costs directly attributable to the specific segment. Segment assets are not reviewed by the company’s chief operating decision maker and therefore are not disclosed below (amounts in millions).

	For the Year Ended December 31, 2012
	Home Health			Hospice		Other			Total
Net service revenue	$	1,198.0		$	289.9	$	—		$	1,487.9
Cost of service, excluding depreciation and amortization		691.1			150.0		—			841.1
General and administrative expenses		350.8			72.4		112.1			535.3
Provision for doubtful accounts		17.8			3.9		—			21.7
Depreciation and amortization		13.9			1.5		24.5			39.9
Goodwill and other intangibles impairment charge		161.6			0.5		—			162.1
Operating expenses		1,235.2			228.3		136.6			1,600.1
Operating (loss) income	$	(37.2	)	$	61.6	$	(136.6	)	$	(112.2	)
	For the Year Ended December 31, 2011
	Home Health			Hospice		Other			Total
Net service revenue	$	1,250.5		$	217.8	$	—		$	1,468.3
Cost of service, excluding depreciation and amortization		664.0			116.6		—			780.6
General and administrative expenses		340.2			50.0		135.5			525.7
Provision for doubtful accounts		12.3			1.2		—			13.5
Depreciation and amortization		14.0			0.7		23.9			38.6
Goodwill and other intangibles impairment charge		579.9			—		—			579.9
Operating expenses		1,610.4			168.5		159.4			1,938.3
Operating (loss) income	$	(359.9	)	$	49.3	$	(159.4	)	$	(470.0	)

	For the Year Ended December 31, 2010
	Home Health		Hospice		Other			Total
Net service revenue	$	1,462.5	$	138.6	$	—		$	1,601.1
Cost of service, excluding depreciation and amortization		719.9		74.1		—			794.0
General and administrative expenses		376.4		34.3		132.6			543.3
Provision for doubtful accounts		17.7		1.0		—			18.7
Depreciation and amortization		14.3		0.5		19.0			33.8
Operating expenses		1,128.3		109.9		151.6			1,389.8
Operating income (loss)	$	334.2	$	28.7	$	(151.6	)	$	211.3