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Goodwill and Intangible Assets
9 Months Ended
Sep. 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 nine months ended September 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

 

Additions for acquisition

 

 

11,252

 

 

 

 

 

 

 

 

 

11,252

 

Divestiture

 

 

 

 

 

(1,167

)

 

 

 

 

 

(1,167

)

Adjustments to previously recorded goodwill

 

 

1,438

 

 

 

(322

)

 

 

(17

)

 

 

1,099

 

Goodwill as of September 30, 2020

 

$

139,267

 

 

$

145,494

 

 

$

1,791

 

 

$

286,552

 

 

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.

The Company recognized goodwill in the personal care segment of $11.3 million related to the acquisition of A Plus during the nine months ended September 30, 2020. For the three and nine months ended September 30, 2020, adjustments to previously recorded goodwill are primarily adjustments to accounts receivable based on the final valuations for the acquisitions of Hospice Partners, Alliance and VIP. During the nine months ended September 30, 2020, the Company divested certain branches and their related net assets including $1.2 million of related goodwill. The Company recognized $0.3 million loss on the disposition, reflected as a reduction in general and administrative expense for the nine months ended September 30, 2020.

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

 

 

 

31,946

 

 

 

4,655

 

 

 

12,164

 

 

 

96,793

 

Accumulated amortization

 

 

(37,263

)

 

 

(14,671

)

 

 

(2,716

)

 

 

(2,566

)

 

 

(57,216

)

Intangible assets subject to amortization, net

 

 

10,765

 

 

 

17,275

 

 

 

1,939

 

 

 

9,598

 

 

 

39,577

 

Total intangible assets at September 30, 2020

 

$

10,765

 

 

$

17,275

 

 

$

1,939

 

 

$

22,894

 

 

$

52,873

 

 

During the nine months ended September 30, 2020, the Company acquired a trade name of $1.4 million related to the acquisition of A Plus. Amortization expense related to identifiable intangible assets amounted to $1.7 million and $5.3 million for the three and nine months ended September 30, 2020, respectively, and $1.8 million and $4.4 million for the three and nine months ended September 30, 2019, respectively. The weighted average remaining lives of identifiable intangible assets as of September 30, 2020 is 8.7 years.