Fixed Assets, Net

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Fixed assets at December 31, 2013 and 2012 were as follows:



(In thousands)	Useful Lives	December 31, 2013			December 31, 2012
Land	Indefinite	$	768		$	1,451
Building	30 Years	4,587			6,107
Computer equipment and software	3-7 Years	70,131			65,718
Home medical equipment	4 Years	5,356			5,179
Furniture and fixtures	5 Years	35,028			24,556
Leasehold improvements	Lease Term	18,121			18,250
Machinery and equipment	5 Years	2,153			2,692
Automobiles	5 Years	1,265			111
		137,409			124,064
Less accumulated depreciation		(88,034		)	(82,650		)
Fixed assets, net		$	49,375		$	41,414

Depreciation expense was approximately $15.3 million for 2013, $16.6 million for 2012 and $17.2 million for 2011.

Computer equipment and software at December 31, 2013 and December 31, 2012 included deferred software development costs of $1.5 million and $2.0 million, respectively, primarily related to enhancements of the Company’s human resources, time keeping and management reporting systems.

At March 31, 2013, the Company performed an interim impairment test of its Hospice reporting unit. As part of that analysis, the Company obtained a market assessment of its owned real estate utilized in the Hospice business. The analysis indicated that two of the Company's hospice inpatient units had estimated fair values lower than their carrying values and, as such, the Company recorded a non-cash impairment charge of approximately $1.9 million. These charges are recorded in goodwill, intangibles and other long-lived asset impairment in the Company's consolidated statement of comprehensive income for the for the year ended December 31, 2013. See Note 9 for additional information.

In addition, the Company conducted an evaluation of the various systems used to support its field operations. In connection with that review, the Company made a strategic decision to replace its business intelligence software platform and, as such, recorded a non-cash impairment charge related to developed software, of approximately $1.6 million, which is reflected in goodwill, intangibles and other long-lived asset impairment in the Company's consolidated statement of comprehensive income for the for the year ended December 31, 2013.

In connection with the Odyssey acquisition, the Company conducted a strategic evaluation of its various field operating systems, including the Company's LifeSmart clinical management system, to review alternatives towards achieving a comprehensive platform, capable of handling both its Home Health and Hospice business segments. During 2011, the Company completed its review of alternatives to replacing various field operating systems and, in connection with that review, recorded a non-cash impairment charge of approximately $40.3 million related to developed software. In addition, the Company conducted a review of real estate it owned in Dothan, Alabama which indicated that the estimated fair value of the real estate was lower than the carrying value, and recorded a non-cash impairment charge of approximately $0.9 million. These charges are recorded in goodwill, intangibles and other long-lived asset impairment in the Company’s consolidated statement of comprehensive income for the year ended December 31, 2011.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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