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Goodwill and Other Intangible Assets, Net
12 Months Ended
Dec. 31, 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 amount of goodwill presented on an operating segment basis.
 
December 31, 2018
(in thousands)
Gross Carrying Amount
 
Dispositions and Other Reductions
 
Accumulated Impairment
 
Net
Independent Living
$
28,141

 
$
(820
)
 
$

 
$
27,321

Assisted Living and Memory Care
605,469

 
(48,817
)
 
(556,652
)
 

Health Care Services
126,810

 

 

 
126,810

Total
$
760,420

 
$
(49,637
)
 
$
(556,652
)
 
$
154,131


 
December 31, 2017
(in thousands)
Gross Carrying Amount
 
Dispositions and Other Reductions
 
Accumulated Impairment
 
Net
Independent Living
$
28,141

 
$
(820
)
 
$

 
$
27,321

Assisted Living and Memory Care
605,469

 
(48,817
)
 
(205,000
)
 
351,652

Health Care Services
126,810

 

 

 
126,810

Total
$
760,420

 
$
(49,637
)
 
$
(205,000
)
 
$
505,783



Goodwill is tested for impairment annually with a test date of October 1 or sooner if indicators of impairment are present. 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.
 
December 31, 2018
(in thousands) 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Community purchase options
$
4,738

 
$

 
$
4,738

Health care licenses
42,323

 

 
42,323

Trade names
27,800

 
(26,295
)
 
1,505

Management contracts
9,610

 
(6,704
)
 
2,906

Total
$
84,471

 
$
(32,999
)
 
$
51,472


 
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 years ended December 31, 2018, 2017 and 2016 was $3.1 million, $5.6 million and $9.2 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 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. The Company is amortizing the trade names and management contract intangibles assets over their estimated weighted average useful lives of five years and nine years, respectively. Refer to Note 5 for information on impairment expense for other intangible assets.

Future amortization expense for intangible assets with definite lives is estimated to be as follows (in thousands):
Year Ending December 31,
Future
Amortization
2019
$
2,140

2020
635

2021
635

2022
635

2023
366

Thereafter

Total
$
4,411