INTANGIBLE ASSETS, NET

6 Months Ended

Jun. 30, 2017

6. INTANGIBLE ASSETS, NET

Intangible assets, net as of June 30, 2017 and December 31, 2016 consisted of the following (in thousands):

	June 30, 2017		December 31, 2016
Tradenames	$	26,352	$	21,234
Referral relationships, net of accumulated amortization of $6,214 and $5,275, respectively		18,613		14,859
Non-compete agreements, net of accumulated amortization of $3,781 and $3,380, respectively		3,356		1,967
	$	48,321	$	38,060

Tradenames, referral relationships and non-compete agreements are related to the businesses acquired. Typically, the value assigned to tradenames has an indefinite life and is tested at least annually for impairment using the relief from royalty method in conjunction with the Company’s annual goodwill impairment test. The value assigned to referral relationships is being amortized over their respective estimated useful lives which range from six to 16 years. Non-compete agreements are amortized over the respective term of the agreements which range from five to six years.

The following table details the amount of amortization expense recorded for intangible assets for the three and six months ended June 30, 2017 and 2016 (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Tradenames	$	-	$	21	$	-	$	42
Referral relationships		481		352		939		675
Non-compete agreements		206		147		401		281
	$	687	$	520	$	1,340	$	998

Based on the balance of referral relationships and non-compete agreements as of June 30, 2017, the expected amount to be amortized in 2017 and thereafter by year is as follows (in thousands):

Referral Relationships		Non-Compete Agreements
Years	Annual Amount	Years	Annual Amount

2017	1,993	2017	860
2018	2,063	2018	883
2019	1,973	2019	810
2020	1,973	2020	597
2021	1,973	2021	519
2022	1,924	2022	88
2023	1,817
2024	1,698
2025	1,592
2026	1,131
2027	971
2028	401
2029	43