XML 63 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

5.     Goodwill and Intangible Assets

 

Goodwill is tested for impairment on an annual basis and between annual tests if indicators of potential impairment exist. The date of our annual impairment test is October 1. A change in our reportable segments, more fully described herein in Note 1, resulted in a change in the composition of our reporting units, which is the unit of accounting for goodwill.  Accordingly, we reallocated goodwill between our reporting units using the relative fair value approach.  A summary of changes to goodwill is as follows:

 

 

 

 

 

 

 

Education

 

 

 

 

 

 

 

 

 

 

 

 

 

and

 

 

 

 

 

 

 

 

 

Residential

 

ResCare

 

Training

 

Workforce

 

Pharmacy

 

 

 

 

 

Services

 

HomeCare

 

Services

 

Services

 

Services

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2011

 

$

152,459

 

$

63,171

 

$

15,311

 

$

32,720

 

$

4,036

 

$

267,697

 

Goodwill added through acquisition

 

15,936

 

3,163

 

 

 

290

 

19,389

 

Other

 

1,179

 

 

 

 

 

 

1,179

 

Balance at December 31, 2012

 

169,574

 

66,334

 

15,311

 

32,720

 

4,326

 

288,265

 

Goodwill added through acquisition

 

12,864

 

7,213

 

 

 

 

20,077

 

Other

 

8

 

 

 

 

 

8

 

Balance at December 31, 2013

 

$

182,446

 

$

73,547

 

$

15,311

 

$

32,720

 

4,326

 

$

308,350

 

 

For our October 1, 2013 annual impairment test, all reporting units passed Step One.  The ResCare HomeCare reporting unit passed Step One with a fair value that exceeded its carrying value by a 7 percent margin. Inability to meet projected results utilized in the annual impairment test could lead to a potential impairment in the future.

 

Intangible assets are as follows:

 

 

 

December 31, 2013

 

December 31, 2012

 

 

 

 

 

 

 

Accumulated

 

 

 

Accumulated

 

Life

 

 

 

Gross

 

Amortization

 

Gross

 

Amortization

 

(Years)

 

 

 

 

 

 

 

 

 

 

 

 

 

Licenses

 

$

226,955

 

$

 

$

226,706

 

$

 

Indefinite

 

Trade names

 

63,933

 

10,272

 

63,060

 

6,824

 

5-20

 

Customer relationships

 

57,296

 

7,993

 

40,479

 

4,855

 

15-20

 

Covenants not to compete

 

5,747

 

2,420

 

4,069

 

1,831

 

2-5

 

Other intangible assets

 

751

 

384

 

748

 

259

 

5-20

 

 

 

$

354,682

 

$

21,069

 

$

335,062

 

$

13,769

 

 

 

 

Amortization expense on the intangible assets for the years ended December 31, 2013, December 31, 2012 and December 31, 2011 was approximately $7.3 million, $6.7 million and $6.2 million, respectively.

 

Estimated amortization expense for the next five years is as follows:

 

Year Ending December 31:

 

 

 

 

 

 

 

2014

 

$

8,989

 

2015

 

8,633

 

2016

 

8,175

 

2017

 

7,566

 

2018

 

6,933