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Goodwill and Other Intangible Assets, Net

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets, Net [Abstract]

Goodwill and Other Intangible Assets, Net

7. Goodwill and Other Intangible Assets, Net

The Company adopted ASC 350 - Goodwill and Other Intangible Assets, on October 1, 2002 and tests goodwill for impairment annually or whenever indicators of impairment arise. During 2011, 2010, and 2009, the Company performed its annual impairment review of goodwill allocated to its reporting units and determined that no impairment charge was necessary. Estimates utilized in the fair value calculations are classified within Level 3 of the fair value hierarchy.

Following is a summary of changes in the carrying amount of goodwill for the years ended December 31, 2011 and 2010 presented on an operating segment basis (dollars in thousands):

	December 31, 2011										December 31, 2010
	Gross Carrying Amount		Adjustment			Accumulated Impairment and Other Charges			Net		Gross Carrying Amount		Adjustment			Accumulated Impairment and Other Charges			Net
Retirement Centers	$	7,642	$	(34	)	$	(487	)	$	7,121	$	7,642	$	—		$	(487	)	$	7,155
Assisted Living		102,680		(106	)		(142	)		102,432		102,680		(142	)		—			102,538
CCRCs		214,999		—			(214,999	)		—		214,999		—			(214,999	)		—
Total	$	325,321	$	(140	)	$	(215,628	)	$	109,553	$	325,321	$	(142	)	$	(215,486	)	$	109,693

Intangible assets with definite useful lives are amortized over their estimated lives and are tested for impairment whenever indicators of impairment arise. Intangible assets with indefinite useful lives are not amortized until and unless their useful life is determined to no longer be indefinite. Such indefinite-lived intangible assets are tested for impairment annually or whenever indicators of impairment arise. No impairment charges were recorded during 2011, 2010, and 2009. The following is a summary of other intangible assets at December 31, 2011 and 2010 (dollars in thousands):

	December 31, 2011							December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Community purchase options	$	147,610	$	(17,566	)	$	130,044	$	147,782	$	(13,867	)	$	133,915
Management contracts and other		158,041		(158,041	)		—		158,041		(140,463	)		17,578
Home health licenses		24,092		—			24,092		19,848		—			19,848
Total	$	329,743	$	(175,607	)	$	154,136	$	325,671	$	(154,330	)	$	171,341

Amortization expense related to definite-lived intangible assets for the twelve months ended December 31, 2011, 2010 and 2009 was $21.3 million, $34.8 million and $35.2 million, respectively.

Estimated amortization expense related to intangible assets with definite lives at December 31, 2011, for each of the years in the five-year period ending December 31, 2016 and thereafter is as follows (dollars in thousands):

Year Ending December 31,	Future Amortization
2012	$	3,698
2013		3,698
2014		3,698
2015		3,698
2016		3,698
Thereafter		111,554
Total	$	130,044

- 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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