InfuSystem Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 9 - Leases

Note 9 - Leases

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

. Leases

The Company

leases office space, service facility centers and equipment under non-cancelable capital and operating lease arrangements. The Company periodically enter into capital leases to finance the purchase of ambulatory infusion pumps. The pumps are capitalized into medical equipment in rental service at their fair market value, which equals the value of the future minimum lease payments and are depreciated over the useful life of the pumps. The weighted average interest rate under capital leases was

3.6%

as of

December 31, 2017.

The leases for office space and service facility centers used in the Company’s logistics operations are operating leases. In most cases, we expect our facility leases will be renewed or replaced by other leases in the ordinary course of business.

Future minimum rental payments pursuant to leases that have an initial or remaining non-cancelable lease term in excess of

one

year as of

December 31,

201

are as follows (in thousands):

	Capital Leases			Operating Leases		Total
2018	$	514		$	1,326	$	1,840
2019		33			1,225		1,258
2020		-			695		695
2021		-			181		181
2022		-			191		191
Thereafter		-			747		747
Total require payments	$	547		$	4,365	$	4,912
Less amounts representing interest (3.5%)		(9	)
Present value of minimum lease payments		538
Less current maturities		(505	)
Long-term capital lease liability	$	33

December 31,

201

and

2016,

pump assets obtained under capital leases, had a cost of approximately

$14.0

million and

$13.9

million, respectively, and accumulated depreciation of

$6.1

million and

$4.2

million, respectively.

The Company had minimum future operating lease commitments, mainly r

elated to its leased facilities. Related rental expense for facilities and other equipment from

third

parties under operating leases approximated

$1.0

million for the years ended

December 31, 2017

and

2016,

respectively.