Fixed Assets, Net

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Fixed assets at December 31, 2012 and 2011 were as follows:



(In thousands)	Useful Lives	December 31, 2012			December 31, 2011
Land	Indefinite	$	1,451		$	1,451
Building	30 Years	6,107			6,107
Computer equipment and software	3-7 Years	65,718			58,270
Home medical equipment	4 Years	5,179			4,671
Furniture and fixtures	5 Years	24,556			31,501
Leasehold improvements	Lease Term	18,250			19,318
Machinery and equipment	5 Years	2,803			2,954
		124,064			124,272
Less accumulated depreciation		(82,650		)	(78,026		)
Fixed assets, net		$	41,414		$	46,246

Depreciation expense was approximately $16.6 million in 2012, $17.2 million in 2011 and $14.4 million in 2010.

Computer equipment and software at December 31, 2012 and December 31, 2011 included deferred software development costs of $2.0 million and $5.7 million, respectively, primarily related to replacement of the Company’s financial, human resources and management reporting systems.

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, intangible assets 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 that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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