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Goodwill

6 Months Ended

Jun. 30, 2015

Goodwill [Abstract]

12. Goodwill

The changes in the carrying amount of goodwill are as follows:



(in thousands):	Six Months Ended June 30, 2015			Year Ended December 31, 2014
Balance, beginning of period
Goodwill	$	1,170,395		$	1,050,533
Accumulated impairment loss *		(700,799)			(472,520)
Net goodwill, beginning of period		469,596			578,013

Goodwill acquired during the period		24,865			126,193
Impairment		—			(228,279)
Adjustments to purchase price allocations		(41)			(115)
Foreign currency translation		(1,696)			(6,216)
Balance, end of period
Goodwill		1,193,523			1,170,395
Accumulated impairment loss *		(700,799)			(700,799)
Net goodwill, end of period	$	492,724		$	469,596

* Accumulated impairment losses incurred relate to the U.S. Domestic reporting segment.

On July 8, 2015, the Centers for Medicare and Medicaid Services (“CMS”), the government agency responsible for administering the Medicare program released its 2016 preliminary physician fee schedule. The preliminary physician fee schedule proposes a 3% rate reduction on Medicare payments to freestanding radiation oncology providers. CMS provides a 60 day comment period and the final rule is expected in early November. During the Company’s last annual impairment test for goodwill, the Company completed the impairment test of its two reporting units that comprise the U.S. domestic operating segment and determined that the fair value of the Risk Based reporting unit exceeded its estimated carrying value by approximately 49%. Approximately $134.4 million of goodwill has been allocated to the Risk Based reporting unit as of December 31, 2014. If the final rule maintains the current proposed rate reductions, and considering the Company’s payer mix and case mix, the Company may be required to record an impairment charge for goodwill and indefinite-lived intangibles assets in its U.S. domestic operating segments. As a result the Company’s operating results could be materially impacted if the proposed rate decrease is implemented.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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