Goodwill and Intangibles

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

Goodwill and Intangibles

The changes in recorded goodwill and intangible assets by reporting unit for the three months ended March 31, 2020 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
Goodwill:
Balance as of December 31, 2019	$	867,924		$	128,875		$	166,629		$	15,682		$	40,862		$	1,219,972
Acquisitions	7,254			2,700			—			—			—			9,954
Noncontrolling interests	2,863			1,797			—			—			—			4,660
Adjustments and disposals	(79		)	(316		)	—			—			—			(395		)
Balance as of March 31, 2020	$	877,962		$	133,056		$	166,629		$	15,682		$	40,862		$	1,234,191
Intangible assets:
Balance as of December 31, 2019	$	219,872		$	40,590		$	24,096		$	5,317		$	15,681		$	305,556
Acquisitions	4,700			930			—			—			—			5,630
Amortization	(137		)	(23		)	(10		)	(1		)	(145		)	(316		)
Balance as of March 31, 2020	$	224,435		$	41,497		$	24,086		$	5,316		$	15,536		$	310,870

The allocation of goodwill from acquisitions purchased during the three months ended March 31, 2020 for each reporting unit is preliminary and subject to change once the valuation analysis required by ASC 805, Business Combinations is finalized.

The following tables summarize the changes in intangible assets during the three months ended March 31, 2020 and December 31, 2019 (amounts in thousands): 

	2020			2019
Indefinite-lived intangible assets:
Trade Names	$	165,417		$	163,499
Certificates of Need/Licenses	133,273			129,689
Net Total	$	298,690		$	293,188
Definite-lived intangible assets:
Trade Names
Gross carrying amount	$	10,209		$	10,182
Accumulated amortization	(9,303		)	(9,229		)
Net total	$	906		$	953
Non-compete agreements
Gross carrying amount	$	6,897		$	6,795
Accumulated amortization	(6,089		)	(5,991		)
Net total	$	808		$	804
Customer relationships
Gross carrying amount	$	11,822		$	11,822
Accumulated amortization	(1,356		)	(1,211		)
Net total	$	10,466		$	10,611
Total definite-lived intangible assets
Gross carrying amount	$	28,928		$	28,799
Accumulated amortization	(16,748		)	(16,431		)
Net total	$	12,180		$	12,368
Total intangible assets:
Gross carrying amount	$	327,618		$	321,987
Accumulated amortization	(16,748		)	(16,431		)
Net total	$	310,870		$	305,556

Remaining useful lives for trade names, customer relationships, and non-compete agreements were 9.5, 18.0, and 2.7 years, respectively, at March 31, 2020. Similar periods at December 31, 2019 were 9.8, 18.2, and 2.8 years for trade names, customer relationships, and non-compete agreements, respectively. Amortization expense was $0.3 million and $0.4 million during the three months ended March 31, 2020 and 2019, respectively. Amortization expense was recorded in general and administrative expenses.