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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service Sales | |||||||||||||||
CDIM | $ | 50,089 | $ | 53,228 | $ | 155,031 | $ | 161,753 | |||||||
MPS | 32,153 | 32,796 | 97,697 | 100,082 | |||||||||||
AIM | 3,383 | 3,154 | 9,731 | 10,559 | |||||||||||
Total service sales | 85,625 | 89,178 | 262,459 | 272,394 | |||||||||||
Equipment and supplies sales | 10,833 | 11,265 | 35,010 | 35,369 | |||||||||||
Total net sales | $ | 96,458 | $ | 100,443 | $ | 297,469 | $ | 307,763 |
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Gross Goodwill | Accumulated Impairment Loss | Net Carrying Amount | |||||||||
January 1, 2016 | $ | 405,558 | $ | 192,950 | $ | 212,608 | |||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | 73,920 | (73,920 | ) | |||||||
December 31, 2016 | 405,558 | 266,870 | 138,688 | ||||||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | 17,637 | (17,637 | ) | |||||||
September 30, 2017 | $ | 405,558 | $ | 284,507 | $ | 121,051 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortizable other intangible assets | |||||||||||||||||||||||
Customer relationships | $ | 99,484 | $ | 89,789 | $ | 9,695 | $ | 99,104 | $ | 86,305 | $ | 12,799 | |||||||||||
Trade names and trademarks | 20,283 | 19,891 | 392 | 20,281 | 19,878 | 403 | |||||||||||||||||
$ | 119,767 | $ | 109,680 | $ | 10,087 | $ | 119,385 | $ | 106,183 | $ | 13,202 |
2017 (excluding the nine months ended September 30, 2017) | $ | 1,027 | |
2018 | 3,875 | ||
2019 | 3,151 | ||
2020 | 1,539 | ||
2021 | 178 | ||
Thereafter | 317 | ||
$ | 10,087 |
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• | Future reversals of existing taxable temporary differences; |
• | Future taxable income exclusive of reversing temporary differences and carryforwards; |
• | Taxable income in prior carryback years; and |
• | Tax-planning strategies. |
• | Nature, frequency, and severity of recent losses; |
• | Duration of statutory carryforward periods; |
• | Historical experience with tax attributes expiring unused; and |
• | Near- and medium-term financial outlook. |
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September 30, 2017 | December 31, 2016 | |||||||
Term A loan facility maturing 2022 net of deferred financing fees of $811 and $1,039; 3.07% and 2.86% interest rate at September 30, 2017 and December 31, 2016 | $ | 58,064 | $ | 119,961 | ||||
Borrowings from revolving loan facility under the Term A Credit Agreement; 3.23% and 2.64% interest rate at September 30, 2017 and December 31, 2016 | 46,125 | 950 | ||||||
Various capital leases; weighted average interest rate of 4.6% and 5.6% at September 30, 2017 and December 31, 2016; principal and interest payable monthly through September 2022 | 44,975 | 36,231 | ||||||
Various other notes payable with a weighted average interest rate of 10.8% and 10.7% at September 30, 2017 and December 31, 2016; principal and interest payable monthly through November 2019 | 21 | 31 | ||||||
149,185 | 157,173 | |||||||
Less current portion | (20,268 | ) | (13,773 | ) | ||||
$ | 128,917 | $ | 143,400 |
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Fair Value | |||||||||
Balance Sheet Classification | September 30, 2017 | December 31, 2016 | |||||||
Derivative designated as hedging instrument under ASC 815 | |||||||||
Interest rate cap contracts - current portion | Other current assets | $ | 10 | $ | 39 | ||||
Interest rate cap contracts - long-term portion | Other assets | — | — | ||||||
Total derivatives designated as hedging instruments | $ | 10 | $ | 39 |
Amount of Income (Loss) Recognized in AOCL on Derivatives | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Derivative in ASC 815 Cash Flow Hedging Relationship | ||||||||||||||||
Interest rate cap contracts, net of tax | $ | 55 | $ | 47 | $ | 141 | $ | (50 | ) |
Amount of Loss Reclassified from AOCL into Income | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
Effective Portion | Ineffective Portion | Effective Portion | Ineffective Portion | Effective Portion | Ineffective Portion | Effective Portion | Ineffective Portion | |||||||||||||||||||||||||
Location of Loss Reclassified from AOCL into Income | ||||||||||||||||||||||||||||||||
Interest expense | $ | 103 | $ | — | $ | 68 | $ | — | $ | 261 | $ | — | $ | 132 | $ | — |
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Significant Other Unobservable Inputs | |||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||
Level 3 | Total Losses | Level 3 | Total Losses | ||||||||||||
Nonrecurring Fair Value Measure | |||||||||||||||
Goodwill | $ | 121,051 | $ | 17,637 | $ | 138,688 | $ | 73,920 | |||||||
Significant Other Unobservable Inputs | |||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||
Level 2 | Level 3 | Total Losses | Level 2 | Level 3 | Total Losses | ||||||||||||||||||||
Recurring Fair Value Measure | |||||||||||||||||||||||||
Interest rate cap contracts | $ | 10 | $ | — | $ | — | $ | 39 | $ | — | $ | — | |||||||||||||
Contingent purchase price consideration for acquired businesses | $ | — | $ | 258 | $ | — | $ | — | $ | 402 | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Beginning balance | $ | 318 | $ | 604 | $ | 402 | $ | 1,059 | |||||||
Additions related to acquisitions | — | — | 34 | 104 | |||||||||||
Payments | (70 | ) | (86 | ) | (221 | ) | (453 | ) | |||||||
Adjustments included in earnings | 3 | 15 | 26 | (180 | ) | ||||||||||
Foreign currency translation adjustments | 7 | 8 | 17 | 11 | |||||||||||
Ending balance | $ | 258 | $ | 541 | $ | 258 | $ | 541 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service Sales | |||||||||||||||
CDIM | $ | 50,089 | $ | 53,228 | $ | 155,031 | $ | 161,753 | |||||||
MPS | 32,153 | 32,796 | 97,697 | 100,082 | |||||||||||
AIM | 3,383 | 3,154 | 9,731 | 10,559 | |||||||||||
Total service sales | 85,625 | 89,178 | 262,459 | 272,394 | |||||||||||
Equipment and supplies sales | 10,833 | 11,265 | 35,010 | 35,369 | |||||||||||
Total net sales | $ | 96,458 | $ | 100,443 | $ | 297,469 | $ | 307,763 |
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Gross Goodwill | Accumulated Impairment Loss | Net Carrying Amount | |||||||||
January 1, 2016 | $ | 405,558 | $ | 192,950 | $ | 212,608 | |||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | 73,920 | (73,920 | ) | |||||||
December 31, 2016 | 405,558 | 266,870 | 138,688 | ||||||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | 17,637 | (17,637 | ) | |||||||
September 30, 2017 | $ | 405,558 | $ | 284,507 | $ | 121,051 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortizable other intangible assets | |||||||||||||||||||||||
Customer relationships | $ | 99,484 | $ | 89,789 | $ | 9,695 | $ | 99,104 | $ | 86,305 | $ | 12,799 | |||||||||||
Trade names and trademarks | 20,283 | 19,891 | 392 | 20,281 | 19,878 | 403 | |||||||||||||||||
$ | 119,767 | $ | 109,680 | $ | 10,087 | $ | 119,385 | $ | 106,183 | $ | 13,202 |
2017 (excluding the nine months ended September 30, 2017) | $ | 1,027 | |
2018 | 3,875 | ||
2019 | 3,151 | ||
2020 | 1,539 | ||
2021 | 178 | ||
Thereafter | 317 | ||
$ | 10,087 |
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September 30, 2017 | December 31, 2016 | |||||||
Term A loan facility maturing 2022 net of deferred financing fees of $811 and $1,039; 3.07% and 2.86% interest rate at September 30, 2017 and December 31, 2016 | $ | 58,064 | $ | 119,961 | ||||
Borrowings from revolving loan facility under the Term A Credit Agreement; 3.23% and 2.64% interest rate at September 30, 2017 and December 31, 2016 | 46,125 | 950 | ||||||
Various capital leases; weighted average interest rate of 4.6% and 5.6% at September 30, 2017 and December 31, 2016; principal and interest payable monthly through September 2022 | 44,975 | 36,231 | ||||||
Various other notes payable with a weighted average interest rate of 10.8% and 10.7% at September 30, 2017 and December 31, 2016; principal and interest payable monthly through November 2019 | 21 | 31 | ||||||
149,185 | 157,173 | |||||||
Less current portion | (20,268 | ) | (13,773 | ) | ||||
$ | 128,917 | $ | 143,400 |
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Fair Value | |||||||||
Balance Sheet Classification | September 30, 2017 | December 31, 2016 | |||||||
Derivative designated as hedging instrument under ASC 815 | |||||||||
Interest rate cap contracts - current portion | Other current assets | $ | 10 | $ | 39 | ||||
Interest rate cap contracts - long-term portion | Other assets | — | — | ||||||
Total derivatives designated as hedging instruments | $ | 10 | $ | 39 |
Amount of Income (Loss) Recognized in AOCL on Derivatives | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Derivative in ASC 815 Cash Flow Hedging Relationship | ||||||||||||||||
Interest rate cap contracts, net of tax | $ | 55 | $ | 47 | $ | 141 | $ | (50 | ) |
Amount of Loss Reclassified from AOCL into Income | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
Effective Portion | Ineffective Portion | Effective Portion | Ineffective Portion | Effective Portion | Ineffective Portion | Effective Portion | Ineffective Portion | |||||||||||||||||||||||||
Location of Loss Reclassified from AOCL into Income | ||||||||||||||||||||||||||||||||
Interest expense | $ | 103 | $ | — | $ | 68 | $ | — | $ | 261 | $ | — | $ | 132 | $ | — |
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Significant Other Unobservable Inputs | |||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||
Level 3 | Total Losses | Level 3 | Total Losses | ||||||||||||
Nonrecurring Fair Value Measure | |||||||||||||||
Goodwill | $ | 121,051 | $ | 17,637 | $ | 138,688 | $ | 73,920 | |||||||
Significant Other Unobservable Inputs | |||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||
Level 2 | Level 3 | Total Losses | Level 2 | Level 3 | Total Losses | ||||||||||||||||||||
Recurring Fair Value Measure | |||||||||||||||||||||||||
Interest rate cap contracts | $ | 10 | $ | — | $ | — | $ | 39 | $ | — | $ | — | |||||||||||||
Contingent purchase price consideration for acquired businesses | $ | — | $ | 258 | $ | — | $ | — | $ | 402 | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Beginning balance | $ | 318 | $ | 604 | $ | 402 | $ | 1,059 | |||||||
Additions related to acquisitions | — | — | 34 | 104 | |||||||||||
Payments | (70 | ) | (86 | ) | (221 | ) | (453 | ) | |||||||
Adjustments included in earnings | 3 | 15 | 26 | (180 | ) | ||||||||||
Foreign currency translation adjustments | 7 | 8 | 17 | 11 | |||||||||||
Ending balance | $ | 258 | $ | 541 | $ | 258 | $ | 541 |
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