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Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2023
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, 2022

 

$

397,728

 

 

$

152,688

 

 

$

32,421

 

 

$

582,837

 

Additions for acquisitions

 

 

23,114

 

 

 

601

 

 

 

56,204

 

 

 

79,919

 

Adjustments to previously recorded goodwill

 

 

 

 

 

 

 

 

225

 

 

 

225

 

Goodwill as of September 30, 2023

 

$

420,842

 

 

$

153,289

 

 

$

88,850

 

 

$

662,981

 

 

In connection with the acquisition of Coastal Nursecare of Florida, Inc. (“CareStaff”), the Company recognized goodwill in its personal care segment of $0.6 million during the nine months ended September 30, 2023.

In connection with the Tennessee Quality Care acquisition, the Company recognized goodwill in its hospice and home health segments of $23.1 million and $56.2 million during the nine months ended September 30, 2023, respectively.

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 September 30, 2023:

 

 

 

Customer
and referral
relationships

 

 

Trade
names and
trademarks

 

 

Non-
competition
agreements

 

 

State
Licenses

 

 

Total

 

 

 

(Amounts in Thousands)

 

Intangible assets with indefinite lives

 

$

 

 

$

 

 

$

 

 

$

46,328

 

 

$

46,328

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

 

44,672

 

 

 

59,567

 

 

 

6,785

 

 

 

12,670

 

 

 

123,694

 

Accumulated amortization

 

 

(39,203

)

 

 

(23,104

)

 

 

(5,397

)

 

 

(8,519

)

 

 

(76,223

)

Intangible assets subject to amortization, net

 

 

5,469

 

 

 

36,463

 

 

1,388

 

 

 

4,151

 

 

 

47,471

 

Total intangible assets at September 30, 2023

 

$

5,469

 

 

$

36,463

 

 

$

1,388

 

 

$

50,479

 

 

$

93,799

 

 

In connection with the Tennessee Quality Care acquisition, the Company recognized a trade name of $2.1 million and indefinite-lived state licenses of $7.6 million in its hospice segment during the nine months ended September 30, 2023. The Company recognized a trade name of $5.4 million and indefinite-lived state licenses of $11.6 million in its home health segment during the nine months ended September 30, 2023. See Note 4 for additional information regarding the acquisition.

Amortization expense related to the intangible assets was $1.8 million and $5.3 million for the three and nine months ended September 30, 2023, respectively, and $1.8 million and $5.4 million for the three and nine months ended September 30, 2022, respectively. The weighted average remaining useful lives of identifiable intangible assets as of September 30, 2023 was 10.3 years.