XML 26 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets, Net
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net
Goodwill and Other Intangible Assets, Net

The following is a summary of the carrying value of goodwill by operating segment.
(in thousands)
Retirement Centers
 
Assisted Living
 
Brookdale Ancillary Services
 
Total
Balance at January 1, 2018
$
27,321

 
$
351,652

 
$
126,810

 
$
505,783

Impairment

 
(351,652
)
 

 
(351,652
)
Balance at June 30, 2018
$
27,321

 
$

 
$
126,810

 
$
154,131



Goodwill is tested for impairment annually with a test date of October 1 or sooner if indicators of impairment are present.  The Company determined no impairment was necessary for the three months ended June 30, 2018. Factors the Company considers important in its analysis, which could trigger an impairment of such assets, include significant underperformance relative to historical or projected future operating results, significant negative industry or economic trends, a significant decline in the Company's stock price for a sustained period and a decline in its market capitalization below net book value. A change in anticipated operating results or the other metrics indicated above could necessitate further analysis of potential impairment at an interval prior to the Company's annual measurement date. Refer to Note 5 for information on impairment expense for goodwill.

The following is a summary of other intangible assets.
 
June 30, 2018
(in thousands)
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Community purchase options
$
4,738

 
$

 
$
4,738

Health care licenses
49,250

 

 
49,250

Trade names
27,800

 
(25,006
)
 
2,794

Management contracts
10,680

 
(7,645
)
 
3,035

Total
$
92,468

 
$
(32,651
)
 
$
59,817



 
December 31, 2017
(in thousands)
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Community purchase options
$
9,533

 
$

 
$
9,533

Health care licenses
50,927

 

 
50,927

Trade names
27,800

 
(23,714
)
 
4,086

Management contracts
11,360

 
(7,929
)
 
3,431

Total
$
99,620

 
$
(31,643
)
 
$
67,977



Amortization expense related to definite-lived intangible assets for the three months ended June 30, 2018 and 2017 was $0.8 million and $3.0 million, respectively, and for the six months ended June 30, 2018 and 2017 was $1.7 million and $3.9 million, respectively.

Health care licenses were determined to be indefinite-lived intangible assets and are not subject to amortization. The community purchase options are not currently amortized, but will be added to the cost basis of the related communities if the option is exercised, and will then be depreciated over the estimated useful life of the community.