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DISCONTINUED OPERATIONS
 6 Months Ended
Jun. 30, 2013
Discontinued Operation, Additional Disclosures [Abstract]  
DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

As part of our management of our portfolio of care centers, we review each care center's current financial performance, market penetration, forecasted market growth and the impact of proposed CMS payment revisions. As a result of our review, during the three-month period ended June 30, 2013, we committed to a plan to divest approximately 50 care centers; therefore, as of June 30, 2013, we classified 34 care centers as held for sale (33 home health care centers and one hospice care center) and consolidated 19 care centers (17 home health care centers and two hospice care centers) with care centers servicing the same markets. In addition, we sold assets associated with two home health care centers and one hospice care center.

As we are exiting certain selected geographical areas and in accordance with applicable accounting guidance, the 34 care centers which are held for sale and the three care centers sold are presented as discontinued operations in our condensed consolidated financial statements. The 19 care centers consolidated with care centers servicing the same markets are presented in continuing operations as we expect continuing cash flows from these markets. For additional information on the care centers consolidated with care centers servicing the same markets and the care centers sold see Note 4 – Exit Activities.

As of June 30, 2013, assets held for sale included $0.5 million in fixed assets, net, $0.3 million in intangible assets and $0.7 million in goodwill.

 

Net revenues and operating results for the periods presented for the care centers classified as discontinued operations are as follows (dollars in millions):  
                
    For the Three-Month Periods Ended June 30,  For the Six-Month Periods Ended June 30,  
    2013  2012  2013  2012  
                
 Net revenues $11.7 $15.3 $24.8 $30.4  
 (Loss) before income taxes  (0.8)  0.0  (1.6)  (2.4)  
 Income tax benefit  0.3  0.0  0.6  1.0  
 Discontinued operations, net of tax $(0.5) $0.0 $(1.0) $(1.4)