Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Intangible Assets [Abstract]

NOTE 6—GOODWILL AND INTANGIBLE ASSETS

Changes in goodwill by segment are as follows:


*(in thousands)*	Home Infusion Therapy		Home Respiratory Therapy and Home Medical Equipment			Total
Balance, December 31, 2009	$	257,823	$	501,374		$	759,197

Acquisitions		—		891			891

Balance, December 31, 2010		257,823		502,265			760,088
Acquisitions		902		7,603			8,505
Impairment charge		—		(509,868	)		(509,868	)

Balance, December 31, 2011	$	258,725	$	—		$	258,725

Intangible assets consist of the following:


	December 31, 2011												December 31, 2010
*(dollars in thousands)*	Average Life in Years		Gross Carrying Amount		Accumulated Amortization			Impairment Charge			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Intangible assets subject to amortization:
Capitated relationships		20.0	$	40,000	$	(6,333	)	$	(30,400	)	$	3,267	$	40,000	$	(4,333	)	$	35,667
Payor relationships		20.0		11,000		(1,742	)		—			9,258		11,000		(1,192	)		9,808
Net favorable leasehold interest		3.5		3,210		(2,904	)		—			306		3,553		(2,325	)		1,228
Customer list		1.2		1,123		(588	)		—			535		710		(456	)		254

Subtotal				55,333		(11,567	)		(30,400	)		13,366		55,263		(8,306	)		46,957
Intangible assets not subject to amortization:
Trade names		—		525,000		—			(60,000)			465,000		525,000		—			525,000
Accreditations with commissions		—		7,000		—			—			7,000		7,000		—			7,000

Subtotal		—		532,000		—			(60,000)			472,000		532,000		—			532,000

Total			$	587,333	$	(11,567	)	$	(90,400	)	$	485,366	$	587,263	$	(8,306	)	$	578,957

The Company recorded impairment charges related to goodwill and intangible assets in 2011 of the $600.3 million, of which $596.7 million relates to the home respiratory therapy/home medical equipment reporting unit. See Note 1—Summary of Significant Accounting Policies—for additional details. Amortization expense was $4.5 million, $4.8 million and $47.7 million for the years ended December 31, 2011, 2010 and 2009, respectively. Estimated amortization expense for each of the fiscal years ending December 31, is presented below:


Year Ending December 31,	(in thousands)
2012	$	1,585
2013		744
2014		744
2015		744
2016		744
Thereafter		8,805

- 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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