2.2.0.25falsefalse0203 - Disclosure - Acquisitionstruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011
USD ($)
USD ($) / shares
$Jan-01-2011_Mar-31-2011http://www.sec.gov/CIK0001254419duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0mdas_AcquisitionsAbstractmdasfalsenadurationAcquisitions.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringAcquisitions.falsefalse3false0us-gaap_BusinessCombinationDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>3. ACQUISITION</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Broadlane Acquisition</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On November 16, 2010, pursuant to a Stock Purchase Agreement (the “Purchase Agreement”)
with Broadlane Holdings, LLC, a Delaware limited liability company (“Broadlane LLC”), and Broadlane
Intermediate Holdings, Inc., a Delaware corporation and a wholly-owned subsidiary of Broadlane LLC
(“Broadlane”), we acquired all of the outstanding shares of capital stock of Broadlane (the
“Broadlane Acquisition”) from Broadlane LLC.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We paid to Broadlane LLC approximately $725,000 in cash plus $20,895
for a working capital based purchase price adjustment for an aggregate preliminary purchase price of $745,895. In addition, we will make an additional
payment in cash, subject to adjustment and to certain limitations, currently estimated at $123,100
on or before January 4, 2012 (the “deferred purchase consideration”).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At closing, we recorded $119,505 on our balance sheet, representing the present value of
the preliminary estimated $123,100 deferred purchase consideration amount. The deferred purchase
consideration is subject to adjustment based on certain adjustments as defined in the Purchase
Agreement. During the three months ended March 31, 2011, we recognized approximately $817, in
imputed interest expense due to the accretion of this liability and we will record the remaining
interest expense using the effective interest method to accrete the deferred purchase consideration
to its face value by January 4, 2012. The balance of the deferred purchase consideration was
$120,729 as of March 31, 2011 and has been recorded as a current liability in the accompanying
Condensed Consolidated Balance Sheet.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The preliminary purchase price is subject to change based upon final agreement of certain
adjustments with the seller.
We are currently in negotiations with the seller regarding final purchase price adjustments.
Any subsequent change to the purchase price will be recorded as
an increase or decrease to the deferred purchase consideration and goodwill.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Broadlane Purchase Price Allocation</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the preliminary amounts of the assets acquired and
liabilities assumed recognized at the acquisition date in addition to adjustments made in the first
year after the acquisition date (measurement period adjustments). The measurement period
adjustments did not have a significant impact on our earnings, balance sheets or cash flows in any
period and, therefore, we have not retrospectively adjusted our financial statements.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amounts Previously</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Recognized as of</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amounts Recognized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Acquisition Date</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Measurement Period</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>as of Acquisition</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Provisional)(1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Date (Adjusted)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets(2)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">56,402</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">909</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57,311</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">13,941</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,941</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long term assets
</div></td>
<td> </td>
<td> </td>
<td align="right">110</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">110</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill(3)
</div></td>
<td> </td>
<td> </td>
<td align="right">567,326</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,227</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">566,099</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">419,900</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">419,900</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">1,057,679</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(318</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,057,361</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities(4)
</div></td>
<td> </td>
<td> </td>
<td align="right">35,832</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">523</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,355</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long term liabilities(5)
</div></td>
<td> </td>
<td> </td>
<td align="right">156,447</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(841</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">155,606</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilities assumed
</div></td>
<td> </td>
<td> </td>
<td align="right">192,279</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(318</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">191,961</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total purchase price
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">865,400</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">865,400</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>As previously reported in the Company’s 2010 Annual Report on Form 10-K.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>Represents a $1,147 increase to accounts receivable relating to administrative fees
earned associated with customer purchases that occurred prior to the acquisition date in
excess of what was originally estimated. We also recorded a $238 reduction in deferred tax
assets for the tax impact of the change in accounts receivable.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(3)</td>
<td> </td>
<td>Represents the cumulative change to goodwill for the changes in current assets, current
liabilities and other long term liabilities.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(4)</td>
<td> </td>
<td>Represents the revenue share obligation owed to customers associated with the
additional administrative fees earned as noted above.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(5)</td>
<td> </td>
<td>Represents a reduction in our uncertain tax positions based on a federal audit
completed by the Internal Revenue Service in which they determined that no tax liability
had been identified.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We expect to continue to
adjust our preliminary estimates during the measurement period for
matters such as administrative fee receivable and
related revenue share obligation as actual purchases are reported to
us, certain liabilities including our self-insurance liability as we
receive updated information that may cause the initial amount recorded at the time of the Broadlane
Acquisition to change, deferred income taxes purchase price,
goodwill and possibly other matters.
</div>
</div>
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<!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescription of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable).Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F
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