Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2016 is as follows (in thousands):



Balance at December 31, 2015	$	157,109
Additions: ADP CHSA/COBRA Business acquisition (see Note 3)	140,300
Balance at December 31, 2016	$	297,409

Acquired intangible assets at December 31, 2015 and December 31, 2016 were comprised of the following (in thousands):



	December 31, 2015						December 31, 2016
	Gross carrying amount		Accumulated amortization		Net		Gross carrying amount		Accumulated amortization		Net
Amortizable intangible assets:
Client contracts and broker relationships	$	124,261	$	47,013	$	77,248	$	232,560	$	60,569	$	171,991
Trade names	3,880		2,405		1,475		3,880		3,078		802
Technology	13,846		11,039		2,807		14,646		11,867		2,779
Noncompete agreements	2,232		1,870		362		2,232		1,941		291
Favorable lease	1,136		412		724		1,136		510		626
Total	$	145,355	$	62,739	$	82,616	$	254,454	$	77,965	$	176,489

Included in the gross carrying amount in client contracts and broker relationships intangible assets as of December 31, 2016 are the additions of $20.9 million and $93.9 million related to the channel partner arrangement with Ceridian and the acquisition of ADP CHSA/COBRA Business, respectively. Amortization expense of intangible assets totaled $11.8 million, $15.7 million and $21.9 million in 2014, 2015 and 2016, respectively.

The estimated expected amortization expense in future periods at December 31, 2016 is as follows (in thousands)



2017	$	25,629
2018	24,966
2019	24,043
2020	22,059
2021	19,255
Thereafter	60,537
Total	$	176,489

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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