INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consist of the following:



(Amounts in 000's)	Bed Licenses (included in property and equipment)			Bed Licenses— Separable		Lease Rights			Total
Balances, December 31, 2011
Gross	$	26,149		$	1,189	$	9,545		$	36,883
Accumulated amortization	(533		)	—		(1,085		)	(1,618		)
Net carrying amount	$	25,616		$	1,189	$	8,460		$	35,265

Reclass adjustment from bed licenses to goodwill	(2,694		)	—		—			(2,694		)
Deconsolidation of Oklahoma Owners	(3,458		)	—		—			(3,458		)
Acquisitions	18,481			1,282		—			19,763
Reclass to held for use	—			—		(721		)	(721		)
Amortization expense	(905		)	—		(1,616		)	(2,521		)

Balances, December 31, 2012
Gross	$	38,478		$	2,471	$	8,824		$	49,773
Accumulated amortization	(1,438		)	—		(2,701		)	(4,139		)
Net carrying amount	$	37,040		$	2,471	$	6,123		$	45,634

Amortization expense	(1,253		)	—		(1,234		)	(2,487		)

Balances, December 31, 2013
Gross	$	38,478		$	2,471	$	8,824		$	49,773
Accumulated amortization	(2,691		)	—		(3,935		)	(6,626		)
Net carrying amount	$	35,787		$	2,471	$	4,889		$	43,147

Amortization expense for bed licenses included in property and equipment is included in property and equipment depreciation and amortization expense (See Note 5 - Property and Equipment). During 2013, the Company recognized an impairment loss of $0.7 million related to two facilities in Tybee Island, Georgia (see Note 10 - Discontinued Operations ).

Amortization expense for lease rights was $1.2 million and $1.6 million for the years ended December 31, 2013 and 2012, respectively. Estimated amortization expense for all definite lived intangibles for each of the future years ending December 31 is as follows:



Amounts in (000's)	Bed Licenses		Lease Rights
2014	$	1,283	$	802
2015	1,283		667
2016	1,283		667
2017	1,283		667
2018	1,283		667
Thereafter	29,372		1,419
Total	$	35,787	$	4,889

The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012.



	(Amounts in 000's)
Balances, December 31, 2011
Goodwill	$	5,374
Accumulated impairment losses	(1,774		)
Total	$	3,600

Deconsolidation of variable interest entities	(1,122		)
Goodwill acquired in acquisitions	3,451
Disposed in sale of business (net of accumulated impairment losses of $1,774)	(906		)
Impairment losses	—
Net change during year	1,423

Balances, December 31, 2012
Goodwill	$	5,023
Accumulated impairment losses	—
Total	$	5,023

Impairment loss	(799		)
Net change during year	(799		)

Balances, December 31, 2013
Goodwill	$	5,023
Accumulated impairment losses	(799		)
Total	$	4,224

For the year ended December 31, 2013, the Company determined that an impairment adjustment was required for the goodwill recorded when the Company acquired the land, building, improvements, furniture, fixtures and equipment of Companions on August 17, 2012. Accordingly, the Company recorded a goodwill impairment charge of $0.8 million in the fourth quarter of 2013, which is included in Loss on impairment. The Company does not amortize goodwill or indefinite lived intangibles, which consist of separable bed licenses.

- 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.

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