Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

7. Goodwill and Intangible Assets:

Goodwill was $3.8 billion and $3.4 billion at December 31, 2016 and 2015, respectively. The change in the carrying amount of goodwill of $479.0 million during the year ended December 31, 2016 is primarily related to the Company’s 2016 acquisitions. The Company expects that $179.8 million of the goodwill recorded during the year ended December 31, 2016 will be deductible for tax purposes. The change in the carrying amount of goodwill during the year ended December 31, 2015 of $590.0 million related to the 2015 acquisitions.

Intangible assets, net, consist of the following (in thousands):


	December 31, 2016
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Physician and hospital agreements	$	347,862	$	(168,488	)	$	179,374
Customer relationships		443,300		(27,368	)		415,932
Trade names		43,156		(1,604	)		41,552
Patented and other technology		37,503		(5,832	)		31,671

	$	871,821	$	(203,292	)	$	668,529


	December 31, 2015
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Physician and hospital agreements	$	265,465	$	(130,050	)	$	135,415
Customer relationships		248,880		(10,612	)		238,268
Trade names		28,620		(597	)		28,023
Patented and other technology		24,230		(1,717	)		22,513

	$	567,195	$	(142,976	)	$	424,219

During the year ended December 31, 2016, the Company recorded intangible assets related to acquisitions totaling $304.6 million, consisting of physician and hospital agreements of $82.4 million, customer relationships of $194.4 million, trade names of $14.5 million and patented and other technology of $13.3 million. The weighted-average amortization periods for these physician and hospital agreements, customer relationships, trade names and patented technology are approximately 10, 20, 20 and 10 years, respectively.

Amortization expense for intangible assets was $60.3 million, $42.0 million and $30.1 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Amortization expense for existing intangible assets for the next five years is expected to be as follows (in thousands):


2017	$	65,560
2018		61,374
2019		57,060
2020		51,298
2021		44,896

- 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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