Supplemental Balance Sheet Data

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Data

Supplemental Balance Sheet Data

(a)Accounts Receivable, net

Accounts receivable consist of the following (dollars in thousands):

	September 30, 2012			December 31, 2011
Gross trade accounts receivable:
Billed trade accounts receivable (1)	$	411,090		$	371,832
Unbilled receivables (1)	47,087			43,597
Less:  Allowance for revenue adjustments (1)	(79,151		)	(17,674		)
Gross trade accounts receivable	379,026			397,755
Less:  Allowance for bad debt	(4,848		)	(3,477		)
Net trade accounts receivable	374,178			394,278
Other receivables	7,444			7,680
	$	381,622		$	401,958

(1) The lower amounts for billed trade accounts receivable, unbilled receivables and allowance for revenue adjustments at December 31, 2011 are due primarily to Merger-related fair value adjustments recorded upon the close of the Merger.

(b)   Inventories, net

Inventories consist of the following (dollars in thousands):

	September 30, 2012			December 31, 2011
Finished goods and tissue available for distribution	$	91,768		$	99,028
Goods and tissue in-process	9,431			14,005
Raw materials, supplies, parts and unprocessed tissue	52,080			77,691
	153,279			190,724
Less: Amounts expected to be converted into equipment for short-term rental	(9,646		)	(10,507		)
Reserve for excess and obsolete inventory(2)	(20,016		)	(1,974		)
	$	123,617		$	178,243

(2) The lower reserve for excess and obsolete inventory at December 31, 2011 is due primarily to Merger-related fair value adjustments recorded upon the close of the Merger.

Supplemental Balance Sheet Data

(a)Accounts Receivable, net

Accounts receivable consist of the following (dollars in thousands):

	December 31, 2011			December 31, 2010
	Successor			Predecessor
Gross trade accounts receivable:
Billed trade accounts receivable (1)	$	371,832		$	444,814
Unbilled receivables (1)	43,597			54,068
Less:  Allowance for revenue adjustments (1)	(17,674		)	(87,035		)
Gross trade accounts receivable (2)	397,755			411,847
Less:  Allowance for bad debt (2)	(3,477		)	(9,970		)
Net trade accounts receivable	394,278			401,877
Other receivables	7,680			12,206
	$	401,958		$	414,083

_____________________

(1) The lower amounts for billed trade accounts receivable, unbilled receivables and allowance for revenue adjustments at December 31, 2011 are due primarily to Merger-related fair value adjustments recorded upon the close of the Merger.

(2) Total trade accounts receivable and the related allowance for revenue adjustments and allowance for bad debt was $469.0 million, $70.5 million and $10.6 million, respectively, on November 3, 2011 immediately prior to the closing of the Merger.

(b)   Inventories, net

Inventories consist of the following (dollars in thousands):

	December 31, 2011			December 31, 2010
	Successor			Predecessor
Finished goods and tissue available for distribution	$	99,028		$	92,769
Goods and tissue in-process	14,005			9,507
Raw materials, supplies, parts and unprocessed tissue	77,691			96,197
	190,724			198,473
Less: Amounts expected to be converted into equipment for short-term rental	(10,507		)	(10,008		)
Reserve for excess and obsolete inventory (1)	(1,974		)	(15,913		)
	$	178,243		$	172,552

(1) The lower reserve for excess and obsolete inventory at December 31, 2011 is due primarily to Merger-related fair value adjustments recorded upon the close of the Merger.

(c)Net property, plant and equipment

Net property, plant and equipment consists of the following (dollars in thousands):

	December 31, 2011			December 31, 2010
	Successor			Predecessor
Land	$	7,336		$	741
Buildings	28,971			17,810
Equipment for short-term rental	262,641			342,428
Machinery, equipment and furniture	206,573			371,736
Leasehold improvements	67,256			81,868
Inventory to be converted to equipment	10,507			10,008
	583,284			824,591
Less accumulated depreciation	(37,937		)	(553,528		)
	$	545,347		$	271,063

(d)Accrued expenses and other

Accrued expenses and other consist of the following (dollars in thousands):

	December 31, 2011		December 31, 2010
	Successor		Predecessor
Payroll, benefits, commissions, bonuses and related taxes	$	79,721	$	83,238
Royalty accrual	63,800		50,688
Interest accruals	43,585		4,784
Restructuring charges	20,870		1,715
Sales and other taxes	19,977		12,664
Deferred compensation	5,639		—
Insurance accruals	6,288		7,249
Derivative liability	581		5,102
Other accrued expenses	71,156		60,084
	$	311,617	$	225,524