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GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS
 
Goodwill is recorded as a result of business combinations. Activity in goodwill for the years ended December 31, 2017 and 2018 is provided below (in thousands):
 

Balance as of December 31, 2016
$239,553
Goodwill acquired through the acquisition of Resolution Imaging Medical Corp
1,901

Goodwill acquired through the acquisition of MRI Centers Inc.
401

Goodwill disposed through the transfer to Santa Monica Imaging Group JV
(1,901
)
Goodwill acquired through the acquisition of D&D Diagnostics, Inc.
1,519

Goodwill acquired through the acquisition of Stockton MRI, Inc.
3,101

Goodwill disposed through the sale of Hematology Oncology
(110
)
Goodwill acquired through the acquisition of DIA, Inc.
9,185

Goodwill disposed through the sale of Breastlink Medical Group, Inc.
(509
)
Goodwill acquired through the acquisition of RDI, Inc.
1,202

Adjustments to our preliminary allocation of the purchase price of DIA, Inc.
1,058

Goodwill acquired through the acquisition of RadSite, LLC
1,665

Goodwill transferred to other assets
(289
)
Balance as of December 31, 2017
256,776

 Goodwill acquired through the acquisition of Imaging Services Company of New York, LLC
2,692

 Goodwill acquired through the acquisition of certain assets of MemorialCare Medical Foundation
545

 Goodwill transferred to assets held for sale
(1,059
)
 Goodwill acquired through the acquisition of Women's Imaging Specialists in Healthcare
4,268

 Goodwill acquired through the acquisition of Valley Metabolic Imaging
1,469

 Goodwill acquired through the acquisition of Sierra Imaging Associates
1,147

 Goodwill disposed through the sale of plastic surgery unit
(80
)
 Goodwill acquired through the acquisition of Washington Heights Medical Management
2,303

 Goodwill acquired through the acquisition of Medical Arts Radiological Group, P.C.
41,469

 Goodwill acquired through the acquisition of Arcadia Radiology Imaging Services, LLC
2,582

 Goodwill acquired through the acquisition of Southern California Diagnostic Imaging, Inc.
41

 Goodwill acquired through the acquisition of Orange County Diagnostics Imaging Center, Inc.
3,618

 Goodwill acquired through assuming operational control of New Jersey Imaging Network, LLC
106,122

 Goodwill impaired in the Imaging On Call reporting unit
(3,800
)
Balance as of December 31, 2018
$418,093

 
The amount of goodwill from these acquisitions that is deductible for tax purposes as of December 31, 2018 is $160.1 million.
 
Other intangible assets are primarily related to the value of management service agreements obtained through our acquisition of Radiologix, Inc. in 2006 and are recorded at a cost of $57.5 million less accumulated amortization of $28.0 million at December 31, 2018. Also included in other intangible assets is the value of covenant not to compete contracts associated with our facility acquisitions totaling $7.7 million less valuation adjustments and accumulated amortization of $6.4 million, as well as the value of trade names associated with acquired imaging facilities totaling $12.1 million less accumulated amortization of $1.5 million and dispositions and impairments totaling $887,000.
 
Total amortization expense was $2.7 million for the year ended December 31, 2018 and $2.6 million for each of the years ended December 31, 2017 and 2016. Intangible assets are amortized using the straight-line method over their useful life determined at acquisition. Management service agreements are amortized over 25 years using the straight line method.

The following table shows annual amortization expense, by asset classes that will be recorded over the next five years (in thousands):
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
 
Weighted average amortization period remaining in years
Management Service Contracts
2,287

 
2,287

 
2,287

 
2,287

 
2,287

 
18,108

 
29,543

 
12.9

Covenant not to compete contracts
376

 
301

 
240

 
210

 
98

 

 
1,225

 
3.9

Trade Names amortized
11

 
11

 
11

 
11

 
9

 

 
53

 
5.0

Trade Names indefinite life

 

 

 

 

 
9,772

 
9,772

 

Total Annual Amortization
2,674

 
2,599

 
2,538

 
2,508

 
2,394

 
27,880

 
40,593

 
 
 
* These trade name intangibles have an indefinite life