XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Goodwill And Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2016
Goodwill And Intangible Assets [Abstract] |
Goodwill And Intangible Assets | 5. Goodwill and Intangible Assets The Company's carrying value of goodwill is the residual of the purchase price over the fair value of the net assets acquired from various acquisitions including the acquisition of Addus HealthCare. In accordance with ASC Topic 350, "Goodwill and Other Intangible Assets," goodwill and intangible assets with indefinite useful lives are not amortized. The Company tests goodwill for impairment on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that impairment may have occurred. Goodwill is required to be tested for impairment at least annually. The Company can elect to perform Step 0 an optional qualitative analysis and based on the results skip the remaining two steps. In 2016, 2015 and 2014, the Company elected to implement Step 0 and was not required to conduct the remaining two step analysis. In performing its goodwill assessment for 2016, 2015 and 2014, the Company evaluated the following factors that affect future business performance: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, entity-specific events, reporting unit factors and company stock price. As a result of the assessment of these qualitative factors, the Company has concluded that it is more likely than not that the fair values of the reporting unit goodwill as of December 31, 2016, 2015 and 2014 exceed the carrying values of the unit. Accordingly, the first and second steps of the goodwill impairment test as described in FASB ASC 350-20-35, which includes estimating the fair values of the Company, are not considered necessary. The Company did not record any impairment charges for the years ended December 31, 2016, 2015, or 2014. The goodwill for the Company's continuing operations was $73.9 million and $68.8 million as of December 31, 2016 and 2015, respectively. A summary of goodwill and related adjustments for continuing operations is provided below:
|  | Goodwill |
|  | (Amounts in |
|  | Thousands) |
Goodwill, at December 31, 2014 | $ | 64,220 |
Additions for acquisitions |  | 4,747 |
Adjustments to previously recorded goodwill |  | (123 | )
Goodwill, at December 31, 2015 | $ | 68,844 |
Additions for acquisitions |  | 5,265 |
Adjustments to previously recorded goodwill |  | (203 | )
Goodwill, at December 31, 2016 | $ | 73,906 |
Adjustments to the previously recorded goodwill are primarily credits related to amortization of tax goodwill in excess of book basis. The Company's identifiable intangible assets consist of customer and referral relationships, trade names, trademarks, state licenses and non-compete agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from two to twenty-five years. The Company also has indefinite-lived assets that are not subject to amortization expense such as licenses and in certain states certificates of need to conduct specific operations within geographic markets. The Company has concluded these assets have indefinite lives, as management has determined that there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets and the Company intends to renew the licenses indefinitely. The licenses and certificates of need are tested annually for impairment using the cost approach. Under this method assumptions are made about the cost to replace the certificates of need. No impairment charges were recorded in the years ended December 31, 2016, 2015 or 2014. The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following for continuing operations at December 31, 2016 and 2015:
|  | Customer |  |  | Trade |  |  |  |  |  |  |  |  |
|  | and referral |  |  | names and |  |  | State |  | Non-competition |  |  |  |
|  | relationships |  |  | trademarks |  |  | Licenses |  | agreements |  |  | Total |
| (Amounts in Thousands)
Gross balance at January 1, 2015 | $ | 27,896 |  |  | 7,181 |  |  | 150 |  | 2,058 |  |  | 37,285 |
Acquisition of customer list |  | 146 |  |  | — |  |  | — |  | — |  |  | 146 |
Additions for acquisitions |  | 1,830 |  |  | 980 |  |  | — |  | 40 |  |  | 2,850 |
Accumulated amortization |  | (24,055 | ) |  | (4,587 | ) |  | — |  | (1,288 | ) |  | (29,930 | )
Net Balance at December 31, 2015 |  | 5,817 |  |  | 3,574 |  |  | 150 |  | 810 |  |  | 10,351 |
Gross balance at January 1, 2016 |  | 29,872 |  |  | 8,161 |  |  | 150 |  | 2,098 |  |  | 40,281 |
Additions for acquisitions |  | 4,800 |  |  | 5,100 |  |  | — |  | 57 |  |  | 9,957 |
Accumulated amortization |  | (26,766 | ) |  | (6,296 | ) |  | — |  | (1,763 | ) |  | (34,825 | )
Net Balance at December 31, 2016 | $ | 7,906 |  | $ | 6,965 |  | $ | 150 | $ | 392 |  | $ | 15,413 |
Amortization expense for continuing operations related to the identifiable intangible assets amounted to $4.9 million, $3.0 million and $2.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Goodwill and state licenses are not amortized pursuant to ASC Topic 350. The weighted average remaining lives of identifiable intangible assets as of December 31, 2016 is 6.1 years. The estimated future intangible amortization expense is as follows:
|  | Total
|  | (Amount in
For the year ended December 31, |  | Thousands)
2017 | $ | 4,185
2018 |  | 3,835
2019 |  | 2,698
2020 |  | 1,593
2021 |  | 1,418
Thereafter |  | 1,684
Total | $ | 15,413

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration