Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets:

Goodwill represents the unallocated excess of purchase price over the fair value of identifiable assets and liabilities acquired in business combinations. Other finite-lived intangibles consist primarily of certificates of need, licenses, noncompete agreements, tradenames, internal-use software, and market access assets.

The following table shows changes in the carrying amount of Goodwill for the years ended December 31, 2011, 2010, and 2009 (in millions):



	Amount
Goodwill as of December 31, 2008	$	406.0
Acquisition of interest in joint venture entity	2.6
Allocation to discontinued operations related to expected sale of hospital	(0.9		)
Goodwill as of December 31, 2009	407.7
Acquisitions	12.6
Goodwill as of December 31, 2010	420.3
Acquisition	1.4
Goodwill as of December 31, 2011	$	421.7

Goodwill increased in 2009 as a result of a joint venture acquisition of an inpatient rehabilitation unit in Altoona, Pennsylvania. Goodwill increased in 2010 as a result of our acquisitions of Sugar Land and Desert Canyon. Goodwill increased in 2011 as a result of our acquisition of Drake Center's two rehabilitation-focused patient care units.

We performed impairment reviews as of October 1, 2011, 2010, and 2009 and concluded no Goodwill impairment existed. As of December 31, 2011, we had no accumulated impairment losses related to Goodwill.

The following table provides information regarding our other intangible assets (in millions):



	Gross Carrying Amount		Accumulated Amortization			Net
Certificates of need:
2011	$	7.0	$	(2.3	)	$	4.7
2010	6.2		(2.1		)	4.1
Licenses:
2011	$	50.2	$	(41.7	)	$	8.5
2010	50.2		(39.4		)	10.8
Noncompete agreements:
2011	$	33.0	$	(17.1	)	$	15.9
2010	30.1		(12.4		)	17.7
Tradenames:
2011	$	15.0	$	(8.0	)	$	7.0
2010	14.3		(7.3		)	7.0
Internal-use software:
2011	$	64.8	$	(51.1	)	$	13.7
2010	54.1		(44.4		)	9.7
Market access assets:
2011	$	13.2	$	(5.3	)	$	7.9
2010	13.2		(4.0		)	9.2
Total intangible assets:
2011	$	183.2	$	(125.5	)	$	57.7
2010	168.1		(109.6		)	58.5

Amortization expense for other intangible assets is as follows (in millions):



	For the Year Ended December 31,
	2011		2010		2009
Amortization expense	$	15.2	$	12.9	$	11.9

Total estimated amortization expense for our other intangible assets for the next five years is as follows (in millions):



Year Ending December 31,	Estimated Amortization Expense
2012	$	12.1
2013	9.4
2014	7.2
2015	6.1
2016	4.9

See also Note 1, Summary of Significant Accounting Policies, “Reclassifications,” and “Recent Accounting Pronouncements,” Note 2, Business Combinations, and Note 18, Assets and Liabilities in and Results of Discontinued Operations.

- 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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