Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of carrying amount of goodwill

The following table shows changes in the carrying amounts of goodwill by reporting unit for the nine months ended September 30, 2018:

	Critical Illness Recovery Hospital(1)		Rehabilitation Hospital(1)		Outpatient Rehabilitation			Concentra			Total
	(in thousands)
Balance as of December 31, 2017	$	1,045,220	$	415,528	$	647,522		$	674,542		$	2,782,812
Acquired	—		1,118		2,465			536,945			540,528
Measurement period adjustment	—		—		—			(2,472		)	(2,472		)
Sold	—		—		(9,409		)	—			(9,409		)
Balance as of September 30, 2018	$	1,045,220	$	416,646	$	640,578		$	1,209,015		$	3,311,459

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(1)

The critical illness recovery hospital reporting unit was previously referred to as the long term acute care reporting unit. The rehabilitation hospital reporting unit was previously referred to as the inpatient rehabilitation reporting unit.

Schedule of carrying value and amortization of identifiable intangible assets

The following table provides the gross carrying amounts, accumulated amortization, and net carrying amounts for the Company’s identifiable intangible assets:

	December 31, 2017							September 30, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in thousands)
Indefinite-lived intangible assets:
Trademarks	$	166,698	$	—		$	166,698	$	166,698	$	—		$	166,698
Certificates of need	19,155		—			19,155		19,118		—			19,118
Accreditations	1,895		—			1,895		1,857		—			1,857
Finite-lived intangible assets:
Trademarks	—		—			—		5,000		(3,333		)	1,667
Customer relationships	143,953		(38,281		)	105,672		279,967		(55,760		)	224,207
Favorable leasehold interests	13,295		(4,319		)	8,976		13,553		(5,653		)	7,900
Non-compete agreements	28,023		(3,900		)	24,123		28,953		(5,553		)	23,400
Total identifiable intangible assets	$	373,019	$	(46,500	)	$	326,519	$	515,146	$	(70,299	)	$	444,847

Schedule of amortization expense for customer relationships, non-compete agreements, and trademarks

Estimated amortization expense for the Company’s finite-lived customer relationships, non-compete agreements, and trademarks for the remaining period of 2018 and each of the four succeeding years is as follows:

	2018		2019		2020		2021		2022
	(in thousands)
Amortization expense	$	7,811	$	26,490	$	25,864	$	25,648	$	25,443