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Acquisitions and divestitures | 6 Months Ended
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Jun. 30, 2020
Business Combinations [Abstract] |
Acquisitions and divestitures | Acquisitions and divestitures Routine acquisitions During the six months ended June 30, 2020, the Company acquired dialysis businesses consisting of three dialysis centers located in the U.S. and 25 dialysis centers located outside the U.S. for a total of $44,267 in net cash, $1,693 in deferred purchase price obligations, and $10,769 in earn-out obligations and assumed liabilities. The assets and liabilities for these acquisitions were recorded at their estimated fair values at the dates of the acquisitions and are included in the Company’s condensed consolidated financial statements, as are their operating results, from the designated effective dates of the acquisitions. The initial purchase price allocations for these transactions have been recorded at estimated fair values based on the best information available to management and will be finalized when certain information arranged to be obtained has been received. In particular, certain income tax amounts are pending final evaluation and quantification of pre-acquisition tax contingencies and filing of final tax returns. In addition, valuation of certain working capital items, fixed assets and intangibles are pending final audits and related valuation reports. The following table summarizes the assets acquired and liabilities assumed in these transactions at their estimated acquisition date fair values:
Current assets | $ | 9,934 |
Property and equipment | 9,204 |
Intangible and other long-term assets | 7,138 |
Goodwill | 41,584 |
Deferred income taxes | 1,513 |
Current liabilities | (12,048 | )
Noncontrolling interests | (596 | )
| $ | 56,729 |
Amortizable intangible assets acquired during the six months ended June 30, 2020 primarily represent non-compete agreements which had weighted-average estimated useful lives of approximately four years. The total estimated amount of goodwill deductible for tax purposes associated with these acquisitions was approximately $25,475. Sale of RMS Lifeline The Company also divested its vascular access business, RMS Lifeline, Inc., effective May 1, 2020 and recognized a loss on sale of approximately $16,252. Contingent earn-out obligations The Company has several contingent earn-out obligations associated with acquisitions that could result in the Company paying the former owners of acquired companies a total of up to $33,785 if certain performance targets or quality margins are met primarily over the next one year to five years. As of June 30, 2020, the estimated fair value of these contingent earn-out obligations is $24,057, of which $5,832 is included in other current liabilities and the remaining $18,225 is included in other long-term liabilities in the Company’s consolidated balance sheet. The following is a reconciliation of changes in contingent earn-out obligations for the three and six month periods ended June 30, 2020:
| Three months ended June 30, 2020 |  | Six months ended June 30, 2020
Beginning balance | $ | 22,386 |  |  | $ | 24,586 |
Acquisitions | 3,190 |  |  | 5,861 |
Foreign currency translation | (510 | ) |  | (5,383 | )
Fair value remeasurements | (642 | ) |  | (640 | )
Payments or other settlements | (367 | ) |  | (367 | )
Ending balance | $ | 24,057 |  |  | $ | 24,057 |

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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