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Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

A summary of the goodwill activity for the nine months ended September 30, 2019 is provided below:

 

 

 

Goodwill

 

 

 

Personal

Care

 

 

Hospice

 

 

Home

Health

 

 

Total

 

 

 

(Amounts in Thousands)

 

Goodwill as of December 31, 2018

 

$

112,377

 

 

$

22,200

 

 

$

865

 

 

$

135,442

 

Additions for acquisitions

 

 

12,701

 

 

 

13,028

 

 

 

861

 

 

 

26,590

 

Adjustments to previously recorded goodwill

 

 

(51

)

 

 

33

 

 

 

2

 

 

 

(16

)

Goodwill as of September 30, 2019

 

$

125,027

 

 

$

35,261

 

 

$

1,728

 

 

$

162,016

 

 

The Company’s identifiable intangible assets consist of customer and referral relationships, trade names, trademarks and non-competition agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from three to twenty-five years. Goodwill and certain state licenses are not amortized pursuant to ASC Topic 350. The Company recognized goodwill in the personal care segment of $10.4 million related to the acquisition of VIP during the nine months ended September 30, 2019. In connection with the acquisition of Alliance on August 1, 2019, the Company recognized goodwill in the personal care, hospice and home health segments of $2.1 million, $13.0 million and $0.9 million, respectively.

The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of September 30, 2019:

 

 

 

Customer

and referral

relationships

 

 

Trade

names and

trademarks

 

 

Non-

competition

agreements

 

 

State

Licenses

 

 

Total

 

 

 

(Amounts in Thousands)

 

Intangible assets with indefinite lives:

 

$

 

 

$

 

 

$

 

 

$

7,186

 

 

$

7,186

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

 

48,028

 

 

 

21,566

 

 

 

2,155

 

 

 

12,020

 

 

 

83,769

 

Accumulated amortization

 

 

(34,898

)

 

 

(12,246

)

 

 

(2,063

)

 

 

(629

)

 

 

(49,836

)

Intangible assets subject to amortization, net

 

 

13,130

 

 

 

9,320

 

 

 

92

 

 

 

11,391

 

 

 

33,933

 

Total intangible assets at September 30, 2019

 

$

13,130

 

 

$

9,320

 

 

$

92

 

 

$

18,577

 

 

$

41,119

 

 

During the nine months ended September 30, 2019, the Company acquired state licenses and customer relationships of $10.7 million and $4.7 million, respectively, related to the acquisition of VIP and state licenses of $5.4 million related to the acquisition of Alliance. Amortization expense related to the identifiable intangible assets amounted to $1.8 million and $4.4 million for the three and nine months ended September 30, 2019, respectively, and $1.9 million and $4.9 million for the three and nine months ended September 30, 2018, respectively. The weighted average remaining lives of identifiable intangible assets as of September 30, 2019 is 7.8 years.