Intangible Assets

6 Months Ended

Jun. 30, 2012

Intangible Assets

Intangible Assets

3.  Intangible Assets

The Company’s intangible assets consist of the following:

	As of June 30, 2012
	Gross Carrying Amount		Accumulated Amortization
	(in thousands)
Amortized intangible assets:
Non-compete agreements	$	25,909	$	(25,909	)
Indefinite-lived intangible assets:
Goodwill	$	1,631,461
Trademarks	57,709
Certificates of need	11,914
Accreditations	2,160
Total	$	1,703,244

The Company’s accreditations and trademarks have renewal terms. The costs to renew these intangibles are expensed as incurred. At June 30, 2012, the accreditations and trademarks have a weighted average time until next renewal of approximately 1.5 years and 8.0 years, respectively.

Amortization expense for the Company’s intangible assets with finite lives follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2012		2011		2012
	(in thousands)				(in thousands)
Amortization expense	$	327	$	85	$	653	$	340

Amortization expense for the Company’s intangible assets primarily relates to the amortization of the value associated with the non-compete agreement entered into in connection with the acquisition of the outpatient rehabilitation division of HealthSouth Corporation. The useful life of the outpatient rehabilitation division of HealthSouth Corporation’s non-compete was five years.

The changes in the carrying amount of goodwill for the Company’s reportable segments for the six months ended June 30, 2012 are as follows:

	Specialty Hospitals			Outpatient Rehabilitation		Total
	(in thousands)
Balance as of December 31, 2011	$	1,333,553		$	298,163	$	1,631,716
Other	(333		)	—		(333		)
Goodwill acquired during the period	—			78		78
Balance as of June 30, 2012	$	1,333,220		$	298,241	$	1,631,461