Goodwill and Other Intangible Assets, Net

9 Months Ended

Sep. 30, 2015

Goodwill and Other Intangible Assets, Net [Abstract]

Goodwill and Other Intangible Assets, Net

6. Goodwill and Other Intangible Assets, Net

The following is a summary of the carrying amount of goodwill for the nine months ended September 30, 2015 and the year ended December 31, 2014 presented on an operating segment basis (dollars in thousands):

	September 30, 2015							December 31, 2014
	Gross Carrying Amount		Accumulated Impairment and Other Charges			Net		Gross Carrying Amount		Accumulated Impairment and Other Charges			Net
Retirement Centers	$	28,141	$	(521	)	$	27,620	$	28,141	$	(521	)	$	27,620
Assisted Living		591,814		(248	)		591,566		582,623		(248	)		582,375
Brookdale Ancillary Services		126,810		—			126,810		126,810		—			126,810
Total	$	746,765	$	(769	)	$	745,996	$	737,574	$	(769	)	$	736,805

Goodwill is tested for impairment annually with a test date of October 1 or sooner if indicators of impairment are present. The Company determined no impairment was necessary for the nine months ended September 30, 2015.

The following is a summary of other intangible assets at September 30, 2015 and December 31, 2014 (dollars in thousands):

	September 30, 2015							December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Community purchase options	$	40,270	$	—		$	40,270	$	55,738	$	—		$	55,738
Health care licenses		67,511		—			67,511		64,538		—			64,538
Trade names		27,800		(11,702	)		16,098		27,800		(4,179	)		23,621
Other		13,531		(4,331	)		9,200		13,531		(2,655	)		10,876
Total	$	149,112	$	(16,033	)	$	133,079	$	161,607	$	(6,834	)	$	154,773

Amortization expense related to definite-lived intangible assets for the three months ended September 30, 2015 and 2014 was $3.1 million and $2.5 million, respectively and for the nine months ended September 30, 2015 and 2014 was $9.2 million and $4.9 million, respectively. Health care licenses were determined to be indefinite-lived intangible assets and are not subject to amortization. The community purchase options are not currently amortized, but will be added to the cost basis of the related communities if the option is exercised, and will then be depreciated over the estimated useful life of the community.

- 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 + Details