NOTE 4. SEGMENTS

        Consistent with the Company's strategy to focus on the growth of its skilled nursing segment and the sale of the majority of its assisted living facilities (see Note 3) beginning in the fourth quarter of 2012, the Company evaluates operating performance of its 35 skilled nursing facilities, the three remaining assisted living facilities and the one independent living facility on a combined basis. Through the fourth quarter of 2012, the Company reported its operations under three segments: SNF, Assisted Living Facilities ("ALF"), and Corporate & Other.

        With the execution of an agreement to sell six of its assisted living facilities located in Ohio occurring during the fourth quarter of 2012, the Company has provided segment reporting herein for 2012 and 2011 based on its prior three operating segments. The SNF and ALF segments provide services to individuals needing long-term care in a nursing home or assisted living setting and management of those facilities. The Corporate & Other segment engages in the management of facilities and accounting and IT services. The Company previously evaluated operating performance and allocated resources primarily based upon segment operating income (loss). Segment operating results exclude interest expense and other non-operating income and expenses. The table below contains continuing operations segment information for the years ended December 31, 2012 and 2011 based on the Company's former operating segments. The revenue, expenses, and income/(loss) of all facilities reflected in discontinued operations (see Note 3) are excluded. Assets of disposal group are included in Corporate and other below.