Identifiable Intangible Assets And Goodwill

6 Months Ended

Jun. 30, 2011

Identifiable Intangible Assets And Goodwill

Identifiable Intangible Assets And Goodwill

Identifiable Intangible Assets and Goodwill

The gross carrying amount and accumulated amortization of each category of identifiable intangible assets as of June 30, 2011 and December 31, 2010 were as follows (in thousands):


	June 30, 2011									December 31, 2010
	Home Health			Hospice			Total			Home Health			Hospice			Total			Useful Life
Amortized intangible assets:
Covenants not to compete	$	1,473		$	15,675		$	17,148		$	1,473		$	15,675		$	17,148			2-5 Years
Less: accumulated amortization		(1,280	)		(5,919	)		(7,199	)		(1,253	)		(2,671	)		(3,924	)

Net covenants not to compete		193			9,756			9,949			220			13,004			13,224
Customer relationships		27,196			910			28,106			27,196			910			28,106			5-10 Years
Less: accumulated amortization		(12,898	)		(253	)		(13,151	)		(11,456	)		(208	)		(11,664	)

Net customer relationships		14,298			657			14,955			15,740			702			16,442
Tradenames		18,215			16,730			34,945			18,215			16,730			34,945			5-10 Years
Less: accumulated amortization		(9,636	)		(1,505	)		(11,141	)		(8,702	)		(663	)		(9,365	)

Net tradenames		8,579			15,225			23,804			9,513			16,067			25,580

Subtotal		23,070			25,638			48,708			25,473			29,773			55,246
Indefinite-lived intangible assets:
Medicare licenses and certificates of need		220,285			98,526			318,811			220,285			98,526			318,811			Indefinite

Total identifiable intangible assets	$	243,355		$	124,164		$	367,519		$	245,758		$	128,299		$	374,057

The Company recorded amortization expense of approximately $3.3 million and $6.5 million for the second quarter and first six months of 2011, respectively, and $1.3 million and $2.5 million for the corresponding periods of 2010. The estimated amortization expense for the remainder of 2011 is $6.5 million and for each of the next five succeeding years approximates $11.5 million for 2012, $7.8 million for 2013, $5.9 million for 2014, $5.7 million for 2015, and $3.4 million for 2016.

The gross carrying amount of goodwill as of December 31, 2010 and June 30, 2011 and activity during the first six months of 2011 were as follows (in thousands):


	Home Health		Hospice		Total
Balance at December 31, 2010	$	264,679	$	820,387	$	1,085,066
Goodwill acquired during 2011		—		—		—

Balance at June 30, 2011	$	264,679	$	820,387	$	1,085,066

- 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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