Goodwill and Intangibles

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in recorded goodwill by reporting unit for the six months ended June 30, 2018 were as follows (amounts in thousands):



	Home health reporting unit		Hospice reporting unit		Home and community-based services reporting unit		Facility-based reporting unit		HCI reporting unit		Total
Balance as of December 31, 2017	$	261,456	$	88,814	$	28,541	$	13,790	$	—	$	392,601
Acquisitions	525,654		25,176		137,882		—		35,484		724,196
Noncontrolling interests	1,576		—		—		—		—		1,576
Prior period adjustments and disposals............................................	—		—		—		404		—		404
Balance as of June 30, 2018	$	788,686	$	113,990	$	166,423	$	14,194	$	35,484	$	1,118,777

The allocation of goodwill from acquisitions for each reporting unit is preliminary and subject to change once the valuation analysis required by ASC 805, Business Combinations is finalized.

Intangible assets consisted of the following as of June 30, 2018 and December 31, 2017 (amounts in thousands):



	Indefinite lived assets					Definite lived assets
	Trade Names		Certificates of Need			Trade Names			Customer Relationships			Non-compete			Total
Balance as of December 31, 2017	$	78,299	$	53,493		$	2,580		$	—		$	238		$	134,610
Acquisitions	117,349		59,056			—			15,856			91			192,352
Amortization	—		—			(739		)	(127		)	(188		)	(1,054		)
Adjustments & disposals	—		(771		)	—			—			—			(771		)
Balance as of June 30, 2018	$	195,648	$	111,778		$	1,841		$	15,729		$	141		$	325,137

Remaining useful lives for trade names, customer relationships, and non-compete agreements were 9.3, 19.8 and 3.1 years, respectively, at June 30, 2018. Similar amounts at December 31, 2017 were 10.3 and 2.1 years for trade names and non-compete agreements, respectively.

Intangible assets (net of accumulated amortization) in the amount of $249.1 million were related to the home health services segment, $35.4 million were related to the hospice services segment, $20.7 million were related to the community-based services segment, $4.2 million were related to the facility-based services segment, and $15.7 million were related to the HCI services segment as of June 30, 2018. Amortization expense 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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