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Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

A summary of the goodwill activity for the six months ended June 30, 2020 is provided below:

 

 

 

Goodwill

 

 

 

Personal

Care

 

 

Hospice

 

 

Home

Health

 

 

Total

 

 

 

(Amounts in Thousands)

 

Goodwill as of December 31, 2019

 

$

126,577

 

 

$

146,983

 

 

$

1,808

 

 

$

275,368

 

Divestiture

 

 

 

 

 

(1,167

)

 

 

 

 

 

(1,167

)

Adjustments to previously recorded goodwill

 

 

1,438

 

 

 

(243

)

 

 

37

 

 

 

1,232

 

Goodwill as of June 30, 2020

 

$

128,015

 

 

$

145,573

 

 

$

1,845

 

 

$

275,433

 

 

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. Customer and referral relationships are amortized systematically over the periods of expected economic benefit, which range from five to ten years. Goodwill and certain state licenses are not amortized pursuant to ASC Topic 350.

For the three and six months ended June 30, 2020, adjustments to the previously recorded goodwill are primarily adjustments to accounts receivable based on the final valuations. During the three months ended June 30, 2020, the Company divested certain branches and their related net assets including $1.2 million of related goodwill. The Company recognized a $0.4 million loss on the disposition, reflected as a reduction in general and administrative expense for the three and six months ended June 30, 2020.

The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of June 30, 2020:

 

 

 

Customer

and referral

relationships

 

 

Trade

names and

trademarks

 

 

Non-

competition

agreements

 

 

State

Licenses

 

 

Total

 

 

 

(Amounts in Thousands)

 

Intangible assets with indefinite lives

 

 

 

 

 

 

 

 

 

 

 

13,296

 

 

 

13,296

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

 

48,028

 

 

 

30,566

 

 

 

4,655

 

 

 

12,020

 

 

 

95,269

 

Accumulated amortization

 

 

(36,730

)

 

 

(14,109

)

 

 

(2,570

)

 

 

(2,083

)

 

 

(55,492

)

Intangible assets subject to amortization, net

 

 

11,298

 

 

 

16,457

 

 

 

2,085

 

 

 

9,937

 

 

 

39,777

 

Total intangible assets at June 30, 2020

 

$

11,298

 

 

$

16,457

 

 

$

2,085

 

 

$

23,233

 

 

$

53,073

 

 

Amortization expense related to the identifiable intangible assets amounted to $1.8 million and $3.5 million for the three and six months ended June 30, 2020, respectively, and $1.4 million and $2.7 million for the three and six months ended June 30, 2019, respectively. The weighted average remaining lives of identifiable intangible assets as of June 30, 2020 is 8.6 years.