2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Impact of recent accounting standards change

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

In thousands except per share data	As previously reported			Impact of adoption		As currently reported
Provision for income taxes	$	(1,073	)	$	323	$	(750	)
Net income		1,949			323		2,272
Net income attributable to Radnet Inc. common shareholders		1,902			323		2,225
Basic and diluted income per share		0.04			0.01		0.05

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands	As previously reported			Impact of adoption			As currently reported
Net income	$	1,949		$	323		$	2,272
Deferred taxes		333			(323	)		10
Others		(2,295	)		–			(2,295	)
Net decrease in cash and cash equivalents	$	(13	)	$	–		$	(13	)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

In thousands	As previously reported			Impact of adoption		As currently reported
Net income	$	1,949		$	323	$	2,272
Foreign currency translation adjustments		(16	)		–		(16	)
Comprehensive income		1,933			323		2,256
Less comprehensive income attributable to non-controlling interests		47			–		47
Comprehensive income attributable to Radnet Inc. common shareholders	$	1,886		$	323	$	2,209

Service Fee Revenue

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Commercial insurance	$	142,691		$	134,962		$	283,683		$	266,439
Medicare		47,611			45,558			95,291			91,385
Medicaid		6,525			6,890			13,259			13,915
Workers' compensation/personal injury		8,867			8,966			17,925			18,485
Other		8,362			7,383			16,648			14,377
Service fee revenue, net of contractual allowances and discounts		214,056			203,759			426,806			404,601
Provision for bad debts		(11,854	)		(12,326	)		(23,500	)		(22,630	)
Net service fee revenue		202,202			191,433			403,306			381,971
Revenue under capitation arrangements		27,812			27,132			55,721			52,982
Total net revenue	$	230,014		$	218,565		$	459,027		$	434,953

Schedule of goodwill and other intangible assets

Balance as of December 31, 2016		239,553
Goodwill acquired through the acquisition of Resolution Imaging Medical Corp		1,901
Goodwill acquired through the acquisition of MRI Centers of Torrance		401
Goodwill disposed through the transfer to Santa Monica Imaging Group JV		(1,901	)
Goodwill acquired through the acquisition of D&D Diagnostics, Inc.		1,519
Goodwill acquired through the acquisition of Stockton MRI, Inc.		3,101
Goodwill disposed through the sale of Hematology Oncology		(110	)
Balance as of June 30, 2017	$	244,464

Fair value of derivatives

Derivatives	Balance Sheet Location	Fair Value – Liabilities
Interest rate contracts	Current and other non-current liabilities	$(1,970)

Effect of derivative instruments on comprehensive income

For the three months ended June 30, 2017
Effective Interest Rate Cap	Amount of Loss Recognized on Derivative	Location of Loss Recognized in Income on Derivative
Interest rate contracts	($944)	Other Comprehensive Loss

For the six months ended June 30, 2017
Effective Interest Rate Cap	Amount of Loss Recognized on Derivative	Location of Loss Recognized in Income on Derivative
Interest rate contracts	($1,722)	Other Comprehensive Loss

Schedule of fair value of assets and liabilities

	As of June 30, 2017
	Level 1		Level 2			Level 3		Total
Current and other non-current liabilities
Interest Rate Contracts	$	–	$	(1,970	)	$	–	$	(1,970	)

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
Current assets
Interest Rate Contracts	$	–	$	818	$	–	$	818

	As of June 30, 2017
	Level 1		Level 2		Level 3		Total Fair Value		Total Face Value
First Lien Term Loans	$	–	$	468,564	$	–	$	468,564	$	466,813
Second Lien Term Loans	$	–	$	169,260	$	–		169,260	$	168,000

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total		Total Face Value
First Lien Term Loans	$	–	$	483,129	$	–	$	483,129	$	478,938
Second Lien Term Loans	$	–	$	167,580	$	–	$	167,580	$	168,000

Earnings per share

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net income attributable to RadNet, Inc.'s common stockholders	$	5,310	$	3,622	$	4,100	$	2,225
BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period		46,756,276		46,558,944		46,662,420		46,576,631
Basic net income per share attributable to RadNet, Inc.'s common stockholders	$	0.11	$	0.08	$	0.09	$	0.05
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period		46,756,276		46,558,944		46,662,420		46,576,631
Add nonvested restricted stock subject only to service vesting		250,153		77,162		198,477		155,447
Add additional shares issuable upon exercise of stock options and warrants		189,469		246,277		207,666		228,148
Weighted average number of common shares used in calculating diluted net income per share		47,195,898		46,882,383		47,068,563		46,960,226
Diluted net income per share attributable to RadNet, Inc.'s common stockholders	$	0.11	$	0.08	$	0.09	$	0.05
Stock options excluded from the computation of diluted per share amounts:
Weighted average shares for which the exercise price exceeds average market price of common stock		165,000		325,626		337,575		325,626

Investment in joint ventures

Balance as of December 31, 2016	$	43,509
Equity in earnings in these joint ventures		4,922
Distribution of earnings		(3,993	)
Equity contributions in existing joint ventures		4,062
Balance as of June 30, 2016	$	48,500

Joint venture investment and financial information

Balance Sheet Data:	June 30, 2017			December 31, 2016
Current assets	$	41,059		$	40,093
Noncurrent assets		106,421			100,146
Current liabilities		(16,342	)		(14,077	)
Noncurrent liabilities		(42,680	)		(44,405	)
Total net assets	$	88,458		$	81,757
Book value of RadNet joint venture interests	$	42,012		$	38,538
Cost in excess of book value of acquired joint venture interests		6,488			4,970
Total value of Radnet joint venture interests	$	48,500		$	43,509
Total book value of other joint venture partner interests	$	46,446		$	43,219

Income statement data for the six months ended June 30,	2017		2016
Net revenue	$	86,981	$	80,917
Net income	$	10,285	$	13,044