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Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

A summary of the goodwill and related adjustments is provided below:

 

 

 

Hospice

 

 

Personal Care

 

 

Home Health

 

 

Total

 

 

 

(Amounts in Thousands)

 

Goodwill as of December 31, 2021

 

$

328,334

 

 

$

152,688

 

 

$

23,370

 

 

$

504,392

 

Additions for acquisitions

 

 

70,775

 

 

 

 

 

 

 

 

 

70,775

 

Adjustments to previously recorded goodwill

 

 

(91

)

 

 

 

 

 

(324

)

 

 

(415

)

Goodwill as of June 30, 2022

 

$

399,018

 

 

$

152,688

 

 

$

23,046

 

 

$

574,752

 

 

In connection with the JourneyCare acquisition, the Company recognized goodwill in its hospice segment of $70.8 million, during the six months ended June 30, 2022. See Note 4 for additional information regarding the acquisition.

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 five 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.

The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of June 30, 2022:

 

 

 

Customer

and referral

relationships

 

 

Trade

names and

trademarks

 

 

Non-

competition

agreements

 

 

State

Licenses

 

 

Total

 

 

 

(Amounts in Thousands)

 

Intangible assets with indefinite lives

 

$

 

 

$

 

 

$

 

 

$

25,891

 

 

$

25,891

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

 

44,672

 

 

 

51,941

 

 

 

6,785

 

 

 

12,517

 

 

 

115,915

 

Accumulated amortization

 

 

(37,215

)

 

 

(19,773

)

 

 

(4,331

)

 

 

(6,023

)

 

 

(67,342

)

Intangible assets subject to amortization, net

 

 

7,457

 

 

 

32,168

 

 

 

2,454

 

 

 

6,494

 

 

 

48,573

 

Total intangible assets at June 30, 2022

 

$

7,457

 

 

$

32,168

 

 

$

2,454

 

 

$

32,385

 

 

$

74,464

 

 

In connection with the JourneyCare acquisition, the Company recognized a trade name of $9.0 million and indefinite lived state licenses of $4.8 million in its hospice segment during the three months ended March 31, 2022. See Note 4 for additional information regarding the acquisition.

Amortization expense related to the intangible assets was $1.8 million and $3.6 million for the three and six months ended June 30, 2022, respectively, and $2.1 million and $4.3 million for the three and six months ended June 30, 2021, respectively. The weighted average remaining useful lives of identifiable intangible assets as of June 30, 2022 was 10.0 years.