Goodwill and Other Intangibles, Net

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes changes in goodwill by reporting unit during the twelve months ended December 31, 2015 and 2014 (amounts in thousands):



	Home health reporting unit			Hospice reporting unit		Community- based reporting unit			Facility-based reporting unit		Total
Balance as of December 31, 2013	$	173,574		$	9,463	$	265		$	11,591	$	194,893
Goodwill from acquisitions	22,809			5,330		17,074			—		45,213
Goodwill related to noncontrolling interests	113			—		—			—		113
Goodwill related to disposal	(200		)	—		—			—		(200		)
Balance as of December 31, 2014	$	196,296		$	14,793	$	17,339		$	11,591	$	240,019
Goodwill from acquisitions	7,069			43,343		638			—		51,050
Goodwill related to noncontrolling interests	14			—		22			—		36
Goodwill related to disposal	(384		)	—		(27		)	—		(411		)
Balance as of December 31, 2015	$	202,995		$	58,136	$	17,972		$	11,591	$	290,694

The Company determined that there was no impairment for the goodwill of any reporting units as of December 31, 2015, 2014 and 2013 based on the Company's annual impairment testing; however, the Company did record $0.4 million and $0.2 million of disposal of goodwill during the years ended December 31, 2015 and 2014, respectively, due to the closure of underperforming locations. This was recorded in impairment of intangibles and other.

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 November 30, 2015 and 2014. Lower revenue expectations caused by payor contract changes and 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 $0.6 million, $2.0 million, and $0.5 million for the years ended December 31, 2015, 2014 and 2013, respectively, which was recorded in impairment of intangibles and other.

The following tables summarize the changes in intangible assets during the twelve months ended December 31, 2015 and 2014 (amounts in thousands):



	December 31, 2015
	Remaining useful life	Gross carrying amount		Accumulated amortization			Net carrying amount
Indefinite-lived assets:
Trade names	Indefinite	$	60,762	$	—		$	60,762
Certificates of need/licenses	Indefinite	29,807		—			29,807
Total		90,569		—			90,569
Amortizing assets:
Trade names	2 months – 5 years	8,985		(4,385		)	4,600
Non-compete agreements	3 months – 2 years	5,347		(4,111		)	1,236
Total		14,332		(8,496		)	5,836
Balance at December 31, 2015		$	104,901	$	(8,496	)	$	96,405



	December 31, 2014
	Remaining useful life	Gross carrying amount		Accumulated amortization			Net carrying amount
Indefinite-lived assets:
Trade names	Indefinite	$	54,732	$	—		$	54,732
Certificates of need/licenses	Indefinite	19,058		—			19,058
Total		$	73,790	$	—		$	73,790
Amortizing assets:
Trade names	2 months – 5 years	$	8,230	$	(2,797	)	$	5,433
Non-compete agreements	3 months – 3 years	4,225		(3,763		)	462
Total		12,455		(6,560		)	5,895
Balance at December 31, 2014		$	86,245	$	(6,560	)	$	79,685

Intangible assets of $66.4 million, net of accumulated amortization, related to the home health services segment, $21.8 million related to the hospice segment, $7.3 million related to the community-based services segment and $0.9 million related to the facility-based services segment as of December 31, 2015. Amortization for the years ended December 31, 2015, 2014 and 2013 was $1.9 million, $2.1 million and $1.5 million, respectively, which was recorded in general and administrative expenses.

Disposal of Intangible Assets in Company’s Subsidiary

During the twelve months ended December 31, 2015 and 2014, the Company disposed of intangible assets for underperforming providers in the home health segment. The loss on the disposal of these providers was $0.3 million and $1.4 million, respectively, which was recorded in impairment of intangibles and other.

- 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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