Goodwill and Intangibles

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in recorded goodwill by reporting unit for the nine months ended September 30, 2017 were as follows (amounts in thousands):



	Home health reporting unit			Hospice reporting unit		Community - based reporting unit		Facility-based reporting unit		Total
Balance as of December 31, 2016	$	210,839		$	64,234	$	18,820	$	13,424	$	307,317
Goodwill from acquisitions	29,448			15,188		4,285		1,876		50,797
Goodwill related to noncontrolling interests	20,781			9,674		2,856		1,002		34,313
Goodwill related to disposals	(80		)	—		—		—		(80		)
Goodwill related to prior period net working capital adjustments............................................	(5		)	—		—		347		342
Balance as of September 30, 2017	$	260,983		$	89,096	$	25,961	$	16,649	$	392,689

Intangible assets consisted of the following as of September 30, 2017 and December 31, 2016 (amounts in thousands):



	September 30, 2017
	Remaining useful life	Gross carrying amount		Accumulated amortization			Net carrying amount
Indefinite-lived assets:
Trade names	Indefinite	$	78,590	$	—		$	78,590
Certificates of need/licenses	Indefinite	49,773		—			49,773
Total		$	128,363	$	—		$	128,363
Definite-lived assets:
Trade names	2 months — 9 years	$	9,291	$	(7,184	)	$	2,107
Non-compete agreements	2 month — 2 years	5,732		(5,423		)	309
Total		$	15,023	$	(12,607	)	$	2,416
Balance as of September 30, 2017		$	143,386	$	(12,607	)	$	130,779



	December 31, 2016
	Remaining useful life	Gross carrying amount		Accumulated amortization			Net carrying amount
Indefinite-lived assets:
Trade names	Indefinite	$	64,672	$	—		$	64,672
Certificates of need/licenses	Indefinite	33,327		—			$	33,327
Total		$	97,999	$	—		$	97,999
Definite-lived assets:
Trade names	8 months — 9 years	$	9,294	$	(5,991	)	$	3,303
Non-compete agreements	2 months — 3 years	5,681		(4,977		)	704
Total		$	14,975	$	(10,968	)	$	4,007
Balance as of December 31, 2016		$	112,974	$	(10,968	)	$	102,006

Intangible assets of $87.8 million, net of accumulated amortization, were related to the home health services segment, $31.8 million were related to the hospice services segment, $9.0 million were related to the community-based services segment, and $2.2 million were related to the facility-based services segment as of September 30, 2017. The Company recorded $1.6 million and $1.8 million of amortization expense during the nine months ended September 30, 2017 and 2016, respectively. This was recorded in general and administrative expenses.

- 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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