Goodwill and Other Long-Lived Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table presents the changes in the carrying amount of our goodwill for the six months ended June 30, 2016 (in thousands):



	Animal Hospital		Laboratory		All Other			Total
Balance as of December 31, 2015
Goodwill	$	1,402,106	$	101,269	$	144,332		$	1,647,707
Accumulated impairment losses	—		—		(130,057		)	(130,057		)
Subtotal	1,402,106		101,269		14,275			1,517,650
Goodwill acquired	434,323		—		512			434,835
Foreign translation adjustment	9,034		32		—			9,066
Other ⁽¹⁾	1,826		—		—			1,826
Balance as of June 30, 2016
Goodwill	1,847,289		101,301		144,844			2,093,434
Accumulated impairment losses	—		—		(130,057		)	(130,057		)
Subtotal	$	1,847,289	$	101,301	$	14,787		$	1,963,377

____________________________


⁽¹⁾	"Other" consists primarily of measurement period adjustments.

Other Intangible Assets

Our acquisition related amortizable intangible assets at June 30, 2016 and December 31, 2015 are as follows (in thousands):



	As of June 30, 2016							As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Non-contractual customer relationships	$	265,385	$	(61,093	)	$	204,292	$	116,082	$	(48,821	)	$	67,261
Covenants not-to-compete	20,785		(6,083		)	14,702		12,435		(4,779		)	7,656
Favorable lease assets	9,461		(5,644		)	3,817		9,441		(5,440		)	4,001
Technology	1,377		(697		)	680		1,377		(589		)	788
Trademarks	25,866		(5,328		)	20,538		10,551		(4,086		)	6,465
Franchise rights	11,730		(2,151		)	9,579		11,730		(1,564		)	10,166
Total	$	334,604	$	(80,996	)	$	253,608	$	161,616	$	(65,279	)	$	96,337


3.	Goodwill and Other Long-Lived Assets, continued

The following table summarizes our aggregate amortization expense related to acquisition related intangible assets (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Aggregate amortization expense	$	9,798	$	5,858	$	16,026	$	11,384

The estimated amortization expense related to acquisition related intangible assets for the remainder of 2016 and each of the succeeding years thereafter, as of June 30, 2016, is as follows (in thousands):



Finite-lived intangible assets:
Remainder of 2016	$	21,950
2017	39,150
2018	35,719
2019	32,723
2020	27,868
Thereafter	96,198
Total	$	253,608
Indefinite-lived intangible assets:
Trademarks	4,040
Total intangible assets	$	257,648

- 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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