Goodwill and Other Intangible Assets

9 Months Ended

Sep. 29, 2017

Goodwill and Other Intangible Assets

3.Goodwill and Other Intangible Assets

The Company conducts annual reviews of goodwill and other indefinite-lived intangible assets for impairment, or more frequently if circumstances indicate impairment may have occurred. Other intangible assets consist of certificates of need and licenses, trade names and non-compete agreements. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Licenses, provider numbers, certificates of need and trade names have indefinite lives and are reviewed at least annually for possible impairment, or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. The Company completed its most recent annual impairment test of goodwill and other indefinite-lived intangible assets as of December 30, 2016 and determined that no impairment existed.

The following table summarizes the activity related to goodwill and other intangible assets for 2017:


			Other Intangible Assets
			Certificates
			of Need and		Trade		Non-compete		Customer
	Goodwill		Licenses		Names		Agreements		Relationships		Total
Balances at December 30, 2016	$	305,476	$	51,432	$	23,323	$	620	$	9,688	$	85,063
Acquisitions		85,076		51,763		9,880		490		—		62,133
Assets held for sale		—		(1,290)		—		—		—		(1,290)
Amortization		—		—		—		(162)		(381)		(543)
Balances at September 29, 2017	$	390,552	$	101,905	$	33,203	$	948	$	9,307	$	145,363

Acquisitions in the table primarily relate to the CHS-JV acquisition discussed further in Note 8, “Acquisitions.”

The following table summarizes the Company’s goodwill and other intangible assets at September 29, 2017 by segment:


			Other Intangible Assets
			Certificates
			of Need and		Trade		Non-compete		Customer
	Goodwill		Licenses		Names		Agreements		Relationships		Total
Home Health	$	278,034	$	97,725	$	23,078	$	500	$	—	$	121,303
Other Home-Based Services		75,869		4,180		5,195		56		—		9,431
Healthcare Innovations		36,649		—		4,930		392		9,307		14,629
September 29, 2017 balances	$	390,552	$	101,905	$	33,203	$	948	$	9,307	$	145,363

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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