Annual report pursuant to Section 13 and 15(d)

Note 10 - Leases

v3.19.1
Note 10 - Leases
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Leases of Lessee Disclosure [Text Block]
10
.
Leases
 
The Company leases office space, service facility centers and equipment under non-cancelable capital and operating lease arrangements. The Company periodically enters into capital leases to finance the purchase of ambulatory infusion pumps (“Pump Assets”). The Pump Assets 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
3.5%
as of
December 31, 2018.
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, 2018
are as follows (in thousands):
 
   
Capital
Leases
   
Operating
Leases
   
Total
 
2019
  $
33
    $
1,866
    $
1,899
 
2020
   
-
     
1,717
     
1,717
 
2021
   
-
     
1,107
     
1,107
 
2022
   
-
     
1,016
     
1,016
 
2023
   
-
     
1,040
     
1,040
 
Thereafter
   
-
     
5,599
     
5,599
 
Total require payments
  $
33
    $
12,345
    $
12,378
 
Less amounts representing interest (3.5%)
   
-
     
 
     
 
 
Present value of minimum lease payments
   
33
     
 
     
 
 
Less current maturities
   
(33
)    
 
     
 
 
Long-term capital lease liability
  $
-
     
 
     
 
 
 
 
At
December 31, 2018
and
2017,
Pump Assets obtained under capital leases had a cost of approximately
$0.6
million and
$1.7
million, respectively, and accumulated depreciation of
$0.2
million and
$0.5
million, respectively.
 
The Company had minimum future operating lease commitments, mainly related to its leased facilities. Related rental expense for facilities and other equipment from
third
parties under operating leases approximated
$1.5
million and
$1.0
million for the years ended
December 31, 2018
and
2017,
respectively.