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Selected Financial Statement Information
12 Months Ended
Dec. 31, 2017
Selected Financial Statement Information  
Selected Financial Statement Information

6.        Selected Financial Statement Information

 

Property and Equipment

 

Our property and equipment at December 31, 2017 and 2016 consists of the following:

 

 

 

 

 

 

 

 

 

 

    

December 31,

    

December 31,

 

(in thousands)

 

2017

 

2016

 

Medical Equipment

 

$

629,193

 

$

618,052

 

Less: Accumulated depreciation

 

 

(467,236)

 

 

(441,182)

 

Medical equipment, net

 

 

161,957

 

 

176,870

 

Leasehold improvements

 

 

19,986

 

 

15,485

 

Office equipment and vehicles

 

 

85,355

 

 

79,361

 

 

 

 

105,341

 

 

94,846

 

Less: Accumulated depreciation and amortization

 

 

(69,284)

 

 

(63,067)

 

Property and office equipment, net

 

 

36,057

 

 

31,779

 

Total property and equipment, net

 

$

198,014

 

$

208,649

 

 

 

 

 

 

 

 

 

Property and equipment financed under capital leases, net

 

$

17,661

 

$

16,715

 

 

During 2015, we recorded asset impairment charges of $3.3 million on excess and under-utilized patient handling equipment. There were no impairment charges on property and equipment during 2017 and 2016.

 

Goodwill and Other Intangible Assets

 

The Company has three reporting segments with goodwill – Medical Equipment Solutions, Clinical Engineering Solutions and Surgical Services. All reporting segments have negative carrying amount at December 31, 2017 and 2016. There were no accumulated impairment losses at December 31, 2017 and 2016.

 

Our goodwill as of December 31, 2017 and 2016, by reportable segment, consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Medical

    

Clinical

    

    

    

    

 

 

 

Equipment

 

Engineering

 

Surgical

 

 

 

(in thousands)

 

Solutions

 

Solutions

 

Services

 

Total

Balance at December 31, 2016

 

$

227,486

 

$

62,826

 

$

53,454

 

$

343,766

Acquisitions

 

 

 —

 

 

203

 

 

2,199

 

 

2,402

Balance at December 31, 2017

 

$

227,486

 

$

63,029

 

$

55,653

 

$

346,168

 

Our other intangible assets as of December 31, 2017 and 2016 consist of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

December 31, 2016

 

    

    

    

Accumulated

    

 

    

    

    

    

    

Accumulated

    

 

    

    

(in thousands)

  

Cost

 

Amortization

 

Impairment

 

Net

 

Cost

 

Amortization

 

Impairment

 

Net

Finite-life intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationship

 

$

125,828

 

$

(105,911)

 

$

 —

 

$

19,917

 

$

122,109

 

$

(97,704)

 

$

 —

 

$

24,405

Supply agreement

 

 

26,000

 

 

(26,000)

 

 

 —

 

 

 —

 

 

26,000

 

 

(25,274)

 

 

 —

 

 

726

Non-compete agreements

 

 

2,101

 

 

(1,197)

 

 

 —

 

 

904

 

 

1,758

 

 

(856)

 

 

 —

 

 

902

Trade names

 

 

238

 

 

(238)

 

 

 —

 

 

 —

 

 

238

 

 

 —

 

 

 —

 

 

238

Total finite-life intangibles

 

 

154,167

 

 

(133,346)

 

 

 —

 

 

20,821

 

 

150,105

 

 

(123,834)

 

 

 —

 

 

26,271

Indefinite-life intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

 

166,000

 

 

 —

 

 

(34,900)

 

 

131,100

 

 

166,000

 

 

 —

 

 

(34,900)

 

 

131,100

Total intangible assets

 

$

320,167

 

$

(133,346)

 

$

(34,900)

 

$

151,921

 

$

316,105

 

$

(123,834)

 

$

(34,900)

 

$

157,371

 

Total amortization expense related to intangible assets was approximately $9.5,  $11.1 and $12.0 million for the years ended December 31, 2017,  2016 and 2015, respectively.

 

There were no impairment charges during 2017,  2016 or 2015 with respect to other intangible assets.

 

At December 31, 2017, future estimated amortization expense related to intangible assets for each of the years ended December 31, 2018 to 2022 is estimated as follows:

 

 

 

 

 

(in thousands)

    

    

 

2018

 

$

7,594

2019

 

 

5,005

2020

 

 

2,765

2021

 

 

2,106

2022

 

 

1,376

 

Future amortization expense is an estimate. Actual amounts may change due to additional intangible asset acquisitions, impairment, accelerated amortization or other events.