Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2015

6. Goodwill and Intangible Assets

Goodwill

The Company performed its annual goodwill impairment assessment as of October 1, 2015 and 2014, and determined there was no impairment of goodwill. Changes in the carrying amount of goodwill for the years ended December 31, 2015, 2014 and 2013 were as follows:


Balance as of January 1, 2013	$	384,341
OTSS acquisition		1,388
Morehead adjustments		21
Balance as of December 31, 2013	$	385,750
OTSS adjustments		375
DCS acquisition		2,162
NDNQI acquisition		14,647
Balance as of December 31, 2014	$	402,934
HPI acquisition		8,269
Balance as of December 31, 2015	$	411,203

Intangible Assets

The Company performed its annual indefinite-life intangible asset impairment assessment as of October 1, 2015 and 2014, and determined there was no impairment of the indefinite-life intangible asset. The following table summarizes the Company’s intangible assets at December 31, 2015 and 2014:


		December 31, 2015						December 31, 2014
	Weighted
	Average	Gross				Net		Gross				Net
	Remaining	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Useful Life	Amount		Amortization		Amount		Amount		Amortization		Amount
Trade name (indefinite life)	—	$	200,000	$	—	$	200,000	$	200,000	$	—	$	200,000
Trade names (finite life)	4.2		2,410		(1,509)		901		2,130		(1,167)		963
Customer relationships	12.3		237,620		(94,851)		142,769		235,300		(82,010)		153,290
Proprietary technology	9.0		32,240		(14,849)		17,391		32,240		(11,645)		20,595
Other	7.9		3,180		(1,776)		1,404		2,090		(1,547)		543
		$	475,450	$	(112,985)	$	362,465	$	471,760	$	(96,369)	$	375,391

Amortization expense was $16.6 million, $16.0 million, and $15.3 million, for the years ended December 31, 2015, 2014, and 2013, respectively. The Company cannot reliably determine the pattern for which it consumes the benefit of its customer relationship intangible assets. As such, the Company amortizes its customer relationship intangible assets using the straight‑line method over the estimated lives based upon the Company’s historical customer retention and recurring revenue base.

The estimated remaining amortization expense related to intangible assets with finite lives for each of the five succeeding years and thereafter is as follows at December 31, 2015:


2016	$	16,470
2017		15,527
2018		13,939
2019		13,393
2020		12,965
Thereafter		90,171
	$	162,465

- Definition

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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