Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

6. Intangible Assets and Goodwill

We amortize intangible assets subject to amortization on a straight-line basis over the applicable useful lives of the identifiable assets.  In connection with our acquisition of Nutrisystem on March 8, 2019, we recorded the following amounts of intangible assets and goodwill.  All of the goodwill was recorded to the Nutrition segment, and none of the goodwill is deductible for tax purposes.  

(In thousands)	Fair Value		Estimated Useful Life (in years)
Intangible assets subject to amortization:
Tradename - South Beach Diet		9,000		15
Customer list		110,000		7
Retail customer relationship		8,000		10
Noncompetition agreements		6,000		5
Subtotal	$	133,000
Intangible assets not subject to amortization:
Tradename - Nutrisystem		800,000	n/a
Total intangible assets	$	933,000
Goodwill		457,056	n/a

In addition, as of September 30, 2019, there was $334.7 million of goodwill and $29.0 million of intangible assets not subject to amortization allocated to the Healthcare segment.

The change in the carrying amount of goodwill during the nine months ended September 30, 2019 was as follows:

(In thousands)
Balance, January 1, 2019	$	334,680
Acquisition of Nutrisystem		445,671
Measurement period adjustment (1)		11,384
Balance, September 30, 2019	$	791,735

(1) See Note 2 for explanation.