During 2013, we sold assets associated with two home health care centers in Alaska and Washington, as well as a hospice care center in Washington for cash consideration of approximately $1.6 million and recognized a gain of approximately $1.0 million which is included in discontinued operations. We also sold our membership interest in one of our unconsolidated joint ventures for cash consideration of approximately $0.5 million and recognized a loss of approximately $0.7 million, which is included in other income (expense).

We also reported 28 care centers as held for sale and sold assets associated with 17 of these home health care centers for cash consideration of approximately $1.4 million and recognized a gain of approximately $0.7 million which is included in discontinued operations. We closed eight of our home health care centers previously classified as held for sale and recorded charges of $0.1 million for the write-off of intangible assets and $0.5 million related to lease termination costs which are included in discontinued operations. Three of these home health care centers remain classified as held for sale as of December 31, 2013.

In addition to the sale and available for sale care centers mentioned above, we consolidated 41 operating home health care centers and five operating hospice care centers with care centers servicing the same markets and closed two home health care centers as of December 31, 2013. In connection with these care centers, we recorded charges of $3.5 million in goodwill and other intangibles impairment expense related to the write-off of intangible assets, $1.5 million in other general and administrative expenses related to lease termination costs and $1.8 million in salaries and benefits related to severance costs during 2013.

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 these costs $0.2 million related to the closed care centers 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. We recorded lease termination liabilities of $3.1 million, severance of $0.7 million and charges of $1.5 million related to the write-off of intangibles and other assets, of these costs $2.7 million related to the closed care centers is included in discontinued operations.

The care centers that were closed or sold in 2013, 2012 and 2011 are presented in discontinued operations in our consolidated financial statements. See Note 4 – Discontinued Operations and Assets Held For Sale for additional information.


Our reserve activity for the 2013, 2012 and 2011 closures and consolidations is as follows (amounts in millions):

		2013 Exit Activity				2012 Exit Activity				2011 Exit Activity
		Lease Termination		Severance		Lease Termination		Severance		Lease Termination		Severance
	Balances at December 31, 2010	$	0.0	$	0.0	$	0.0	$	0.0	$	0.0	$	0.0
	Charge in 2011		0.0		0.0		0.0		0.0		3.0		0.7
	Cash expenditures in 2011		0.0		0.0		0.0		0.0		(0.3)		(0.6)
	Balances at December 31, 2011		0.0		0.0		0.0		0.0		2.7		0.1
	Charge in 2012		0.0		0.0		0.9		0.1		0.1		0.0
	Cash expenditures in 2012		0.0		0.0		(0.3)		(0.1)		(2.5)		(0.1)
	Balances at December 31, 2012		0.0		0.0		0.6		0.0		0.3		0.0
	Charge in 2013		2.0		1.8		0.0		0.0		0.0		0.0
	Cash expenditures in 2013		(0.5)		(0.5)		(0.5)		0.0		(0.2)		0.0
	Balances at December 31, 2013	$	1.5	$	1.3	$	0.1	$	0.0	$	0.1	$	0.0