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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets A summary of goodwill by segment and related adjustments is provided below:
|  | Goodwill |
|  | Hospice |  |  | Personal Care |  |  | Home Health |  |  | Total |
|  | (Amounts In Thousands) |
Goodwill at December 31, 2022 |  | $ | 397,728 |  |  | $ | 152,688 |  |  | $ | 32,421 |  |  | $ | 582,837 |
Additions for acquisitions |  |  | 35,071 |  |  |  | 601 |  |  |  | 44,274 |  |  |  | 79,946 |
Adjustments to previously recorded goodwill |  |  | — |  |  |  | (13 | ) |  |  | 225 |  |  |  | 212 |
Goodwill at December 31, 2023 |  |  | 432,799 |  |  |  | 153,276 |  |  |  | 76,920 |  |  |  | 662,995 |
Additions for acquisitions |  |  | — |  |  |  | 292,204 |  |  |  | 18,094 |  |  |  | 310,298 |
Adjustments to previously recorded goodwill |  |  | 41 |  |  |  | (2,954 | ) |  |  | 178 |  |  |  | (2,735 | )
Goodwill at December 31, 2024 |  | $ | 432,840 |  |  | $ | 442,526 |  |  | $ | 95,192 |  |  | $ | 970,558 |
In 2024, the Company recognized goodwill in the personal care services segment of $292.2 million related to the acquisition of Upstate and the Gentiva Acquisition and recognized goodwill in the home health segment of $18.1 million related to the Gentiva Acquisition. In connection with the acquisition of Tennessee Quality Care in 2023, the Company recognized goodwill in its hospice and home health segments of $35.0 million and $44.3 million, respectively. The Company also recognized goodwill of $0.6 million related to the CareStaff acquisition in the personal care services segment in 2023. Goodwill adjustments to previously recorded goodwill are generally related to accounts receivable and accrued expenses based on the final valuations. See Note 4 to the Notes to Consolidated Financial Statements for additional information regarding the acquisitions made by the Company in 2023 and 2024, and Note 5 for additional information regarding the divestiture for New York Asset Sale. 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. Goodwill and certain state licenses are not amortized pursuant to ASC Topic 350. We test intangible assets with indefinite useful lives for impairment at the reporting unit level 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 an impairment may have occurred. The Company estimates the fair value of the reporting unit using both a discounted cash flow model as well as a market multiple model. The cash flow forecasts are adjusted by an appropriate discount rate based on the Company’s estimate of a market participant’s weighted-average cost of capital. These models are both based on the Company’s best estimate of future revenues and operating costs and are reconciled to the Company’s consolidated market capitalization, with consideration of the amount a potential acquirer would be required to pay, in the form of a control premium. The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for each reporting unit utilizing known and estimated inputs at the evaluation date. Some of those inputs include, but are not limited to, the most recent price of the Company’s common stock and fair value of long term debt, estimates of future re venue and expense growth, estimated market multiples, expected capital expenditures, income tax rates and cost of invested capital. Significant assumptions used in the analysis included a 9.0% discount rate and a 3.5% long-term revenue growth rate. The Company did no t record any impairment charges for the years ended December 31, 2024, 2023 or 2022. The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following at December 31, 2024 and 2023:
|  |  |  | December 31, 2024 |  |  | December 31, 2023 |
|  |  |  | (Amounts in Thousands) |  |  | (Amounts in Thousands) |
|  | Estimated Useful Life |  | Gross carrying value |  |  | Accumulated amortization |  |  | Net carrying value |  |  | Gross carrying value |  |  | Accumulated amortization |  |  | Net carrying value |
Customer and referral relationships |  | 5-10 years |  | $ | 34,201 |  |  | $ | (33,255 | ) |  | $ | 946 |  |  | $ | 44,672 |  |  | $ | (39,566 | ) |  | $ | 5,106 |
Trade names and trademarks |  | 1-20 years |  |  | 59,366 |  |  |  | (21,900 | ) |  |  | 37,466 |  |  |  | 59,566 |  |  |  | (23,857 | ) |  |  | 35,709 |
Non-competition agreement |  | 3-5 years |  |  | 6,728 |  |  |  | (6,263 | ) |  |  | 465 |  |  |  | 6,785 |  |  |  | (5,601 | ) |  |  | 1,184 |
State Licenses |  | 6-10 years |  |  | 24,981 |  |  |  | (1,243 | ) |  |  | 23,738 |  |  |  | 12,671 |  |  |  | (9,015 | ) |  |  | 3,656 |
State Licenses |  | Indefinite |  |  | 47,028 |  |  |  | — |  |  |  | 47,028 |  |  |  | 46,328 |  |  |  | — |  |  |  | 46,328 |
Total intangible assets |  |  |  | $ | 172,304 |  |  | $ | (62,661 | ) |  | $ | 109,643 |  |  | $ | 170,022 |  |  | $ | (78,039 | ) |  | $ | 91,983 |
During the year ended December 31, 2024, the Company acquired state licenses and a trade name of $23.0 million and $4.9 million, respectively, in its personal care services segment related to the Gentiva Acquisition. The Company also acquired indefinite-lived state licenses of $0.7 million in its home health segment in connection with the Gentiva Acquisition. During the year ended December 31, 2023, the Company acquired indefinite-lived state licenses and a trade name of $7.6 million and $2.1 million, respectively, in its hospice segment related to the acquisition of Tennessee Quality Care. The Company also acquired indefinite-lived state licenses and trade name of $11.6 million and $5.4 million, respectively, in its home health segment in connection with the Tennessee Quality Care acquisition. Amortization expense related to the identifiable intangible assets amounted to $6.7 million, $7.1 million and $7.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. The weighted average remaining useful life of identifiable intangible assets as of December 31, 2024 is 9.82 years. The estimated future intangible amortization expense is as follows:
For the year ended December 31, |  | Total (Amount in Thousands) |
2025 |  | $ | 7,937 |
2026 |  |  | 7,523 |
2027 |  |  | 7,197 |
2028 |  |  | 5,486 |
2029 |  |  | 5,382 |
Thereafter |  |  | 29,090 |
Total, intangible assets subject to amortization |  | $ | 62,615 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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