GOODWILL AND INTANGIBLE ASSETS - NET

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS - NET

GOODWILL AND INTANGIBLE ASSETS—NET The Company tests goodwill during the fourth quarter of each year or more often if events or circumstances indicate there may be impairment. The Company performs its goodwill impairment analysis for each reporting unit that constitutes a business for which (1) discrete financial information is produced and reviewed by operating segment management and (2) provides services that are distinct from the other components of the operating segment, in accordance with the provisions of ASC Topic 350, Intangibles-Goodwill and Other (“Topic 350”). Topic 350 provides the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, a “Step 0” analysis. If, based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company performs “Step 1” of the traditional two-step goodwill impairment test by comparing the net assets of each reporting unit to their respective fair values. The Company determines the estimated fair value of each reporting unit using a discounted cash flow analysis. In the event a unit’s net assets exceed its fair value, an implied fair value of goodwill must be determined by assigning the unit’s fair value to each asset and liability of the unit. The excess of the fair value of the

reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. An impairment loss is measured by the difference between the goodwill carrying value and the implied fair value. The Company anticipates the the majority to total goodwill recognized will be fully deductible for tax purposes as of December 31, 2019.

The following table represents activity in goodwill by segment as of and for the year ended December 31, 2019:

	Home Health and Hospice Services		Senior Living Services		Total
December 31, 2017	$	24,322	$	3,642	$	27,964
Additions	2,872				2,872
Purchase price adjustment	56				56
December 31, 2018	27,250		3,642		30,892
Additions	10,341		—		10,341
December 31, 2019	$	37,591	$	3,642	$	41,233

Other indefinite-lived intangible assets consist of the following:

	Year Ended December 31,
	2019		2018
Trade name	$	355	$	328
Medicare and Medicaid licenses	33,107		24,808
Total	$	33,462	$	25,136

Definite-lived intangible assets consist of the following:

		December 31, 2019						December 31, 2018
Intangible Assets	Weighted Average Life (Years)	Gross Carrying		Accumulated Amortization		Net		Gross Carrying		Accumulated Amortization		Net
Patient base	0.7	$	611	$	(611)	$	—	$	591	$	(573)	$	18
Customer relationships	2.6	470		(425)		45		470		(410)		60
Total		$	1,081	$	(1,036)	$	45	$	1,061	$	(983)	$	78

Amortization expense was $53, $101 and $100 for the years ended December 31, 2019, 2018 and 2017, respectively.

Estimated amortization expense for each of the periods ending December 31, is as follows:

Year	Amount
2020	$	14
2021	14
2022	14
2023	3
	$	45