XML 59 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Goodwill and Other Intangibles, Net
12 Months Ended
Dec. 31, 2012
Goodwill and Other Intangibles, Net [Abstract]  
Goodwill and Other Intangibles, Net

4. Goodwill and Other Intangibles, Net

In accordance with applicable accounting standards, the Company performed an impairment analysis on its indefinite-lived intangible assets related to the Company’s trade names, licenses and certificates of need to determine the fair values as of September 30, 2012. Lower revenue expectations caused primarily by projected Medicare reimbursement cuts reduced the fair values of certain intangible assets below their carrying values. Based on that analysis, the Company recorded an impairment charge of $650,000 for the year ended December 31, 2012 which is included in general and administrative expenses.

As a result of the impairment charge, the carrying values of the related intangible assets were adjusted to their estimated fair values as of September 30, 2012. Any further decline in the estimated fair values of these intangibles could result in additional impairment charges being recorded. The Company determined that except for the impairment charges described above, no other intangible assets were impaired at December 31, 2012.

The Company determined that there was no impairment for the goodwill of any reporting units as of December 31, 2012.

The following table summarizes the changes in goodwill by segment during the twelve months ended December 31, 2012 (amounts in thousands):

 

                 
    2012     2011  

Home-based services segment:

               

Balances at beginning of period

  $ 153,140     $ 145,747  

Goodwill from acquisitions

    3,517       6,735  

Goodwill related to noncontrolling interest

    902       658  
   

 

 

   

 

 

 

Home-based balance at end of period

    157,559       153,140  
   

 

 

   

 

 

 

Facility-based services segment:

               

Balances at beginning of period

  $ 11,591     $ 11,591  
   

 

 

   

 

 

 

Facility-based balance at end of period

    11,591       11,591  
   

 

 

   

 

 

 

Consolidated balance at end of period

  $ 169,150     $ 164,731  
   

 

 

   

 

 

 

The following table summarizes the changes in intangible assets during the twelve months ended December 31, 2012 (amounts in thousands):

 

                                 
    Trade Names     Certificate of
Need/
License
    Other
Intangibles
    Total  

Balance at December 31, 2011

  $ 49,840     $ 8,502     $ 1,047     $ 59,389  

Additions

    1,895       2,135       147       4,177  

Amortization

    —         —         (660 )     (660

Other(1)

    (327 )     (537 )           (864
   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

  $ 51,408     $ 10,100     $ 534     $ 62,042  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes a non-cash impairment charge of $650,000 and $214,000 to reduce the intangible assets due to the closure of an agency. Of these costs $464,000 was allocated to the home-based services segment and $400,000 was allocated to the facility-based services segment.

Intangible assets of $60.5 million, net of accumulated amortization, related to the home-based services segment and $1.5 million related to the facility-based services segment as of December 31, 2012.

 

During the twelve months ended December 31, 2012, the Company purchased a certificate of need which was previously leased and entered into a noncompete agreement for $1.7 million, primarily paid in cash. This asset acquisition was allocated among certificate of need and noncompete agreement in the home-based services segment. The certificate of need has an indefinite useful life and will not be subject to amortization. The noncompete agreement will be amortized over the life of the agreement, which is three years.