Goodwill and Amortizable Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Amortizable Intangible Assets

NOTE 7. Goodwill and Amortizable Intangible Assets

Goodwill

As of December 31, 2022 and 2021, goodwill of $39.0 million was allocated to the Company’s Hawaii reporting unit, which has a negative carrying amount of net assets as of December 31, 2022 and 2021. The Company completed the required annual goodwill impairment test during the fourth quarters of 2022 and 2021, and no impairment was recognized.

Amortizable Intangible Assets

The following table summarizes the Company’s amortizable intangible assets as of December 31, 2022 (dollars in thousands):

	Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Health plan contracts	15	$	39,700	$	(16,983	)	$	22,717
Trade names	15-30		20,300		(4,342	)		15,958
Provider networks	10-15		8,400		(3,593	)		4,807
Noncompete enforcement agreements	1-5		59,669		(36,100	)		23,569
Other	4-15		2,700		(2,071	)		629
		$	130,769	$	(63,089	)	$	67,680

The following table summarizes the Company’s amortizable intangible assets as of December 31, 2021 (dollars in thousands):

	Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Health plan contracts	15	$	39,700	$	(14,336	)	$	25,364
Trade names	15-30		20,300		(3,665	)		16,635
Provider networks	10-15		8,400		(3,033	)		5,367
Noncompete enforcement agreements	2-5		37,599		(30,355	)		7,244
Other	4-15		2,700		(1,912	)		788
		$	108,699	$	(53,301	)	$	55,398

For the years ended December 31, 2022, 2021, and 2020, the Company recognized $9.7 million, $11.9 million, and $11.4 million, respectively, in amortization expense which is included in depreciation and amortization expense in the consolidated statements of operations.

The following table summarizes the estimated annual amortization for each of the five succeeding fiscal years and thereafter as of December 31, 2022 (in thousands):

Year	Amount
2023	$	8,800
2024		7,777
2025		7,162
2026		6,905
2027		6,359
Thereafter		30,677
	$	67,680