XML 22 R11.htm IDEA: XBRL DOCUMENT v3.21.2
Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

The goodwill for the Company was $497.9 million and $469.1 million as of September 30, 2021 and December 31, 2020, respectively.

A summary of the goodwill activity for the nine months ended September 30, 2021 is provided below:

 

 

 

Goodwill

 

 

 

Hospice

 

 

Personal Care

 

 

Home Health

 

 

Total

 

 

 

(Amounts in Thousands)

 

Goodwill as of December 31, 2020

 

$

314,833

 

 

$

152,448

 

 

$

1,791

 

 

$

469,072

 

Additions for acquisitions

 

 

13,379

 

 

 

115

 

 

 

15,100

 

 

 

28,594

 

Adjustments to previously recorded goodwill

 

 

95

 

 

 

158

 

 

 

 

 

 

253

 

Goodwill as of September 30, 2021

 

$

328,307

 

 

$

152,721

 

 

$

16,891

 

 

$

497,919

 

 

The Company’s identifiable intangible assets consist of customer and referral relationships, trade names and trademarks, non-competition agreements and state licenses. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from one to twenty-five years. Customer and referral relationships are amortized systematically over the periods of expected economic benefit, which range from five to ten years.

In connection with the acquisition of Armanda, the Company recognized goodwill in its hospice and home health segments of $13.4 million and $15.1 million, respectively, during the three and nine months ended September 30, 2021. See Note 4 for additional information regarding the acquisition.

The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of September 30, 2021:

 

 

 

Customer

and referral

relationships

 

 

Trade

names and

trademarks

 

 

Non-

competition

agreements

 

 

State

Licenses

 

 

Total

 

 

 

(Amounts in Thousands)

 

Intangible assets with indefinite lives

 

$

 

 

$

 

 

$

 

 

$

21,221

 

 

$

21,221

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

 

44,672

 

 

 

42,926

 

 

 

6,785

 

 

 

12,507

 

 

 

106,890

 

Accumulated amortization

 

 

(35,866

)

 

 

(17,800

)

 

 

(3,579

)

 

 

(4,534

)

 

 

(61,779

)

Intangible assets subject to amortization, net

 

 

8,806

 

 

 

25,126

 

 

 

3,206

 

 

 

7,973

 

 

 

45,111

 

Total intangible assets at September 30, 2021

 

$

8,806

 

 

$

25,126

 

 

$

3,206

 

 

$

29,194

 

 

$

66,332

 

 

 

Amortization expense related to the identifiable intangible assets amounted to $1.9 million and $6.2 million for the three and nine months ended September 30, 2021, respectively, and $1.7 million and $5.3 million for the three and nine months ended September 30, 2020, respectively. The weighted average remaining useful lives of identifiable intangible assets as of September 30, 2021 is 9.4 years.