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Goodwill (Tables)
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of changes in goodwill
Changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018, by reportable segment, are as follows (in thousands):
 
 
Diagnostic Services
 
Medical Device Sales and Service
 
Building and Construction (4)
Total
Balance at December 31, 2017
 
$
2,393

 
$
1,098

 
$

$
3,491

Derecognition of DMS Health (1)
 

 
(1,098
)
 

(1,098
)
Impairment of Telerhythmics
 
(476
)
 

 

(476
)
Derecognition of Telerhythmics (2)
 
(172
)
 

 

(172
)
Balance at December 31, 2018
 
1,745

 

 

1,745

Recognition of ATRM (3)
 

 

 
8,233

8,233

Balance at December 31, 2019
 
$
1,745

 
$

 
$
8,233

$
9,978


(1) 
On February 1, 2018, the Company’s MDSS reportable segment ceased to exist as the Company sold its MDSS customer contracts related to the post-warranty service business. As a result, the MDSS reportable segment is reported as discontinued operations in these consolidated financial statements and related notes thereto.
(2) 
On October 31, 2018, the Company entered into a membership interest purchase agreement (the “Telerhythmics Purchase Agreement”) with G Medical Innovations USA, Inc. (“G Medical”), pursuant to which we sold all the outstanding membership interests in Telerhythmics to G Medical.
(3) 
On September 10, 2019, Digirad completed its acquisition of ATRM pursuant to the ATRM Merger Agreement. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of ATRM. As of December 31, 2019, there was a subsequent measurement of goodwill and a related tax benefit adjustment that resulted in a net adjustment of $3.0 thousand to the recognized amounts of goodwill resulting from the acquisition of ATRM.
(4) 
See Note 5 Merger, within the notes to our consolidated financial statements for further detail.