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GOODWILL AND OTHER INTANGIBLE ASSETS, NET
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS, NET

4. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

During 2014, we did not record any goodwill impairment charges as a result of our annual impairment test and none of the goodwill associated with our various reporting units were considered at risk of impairment as of October 31, 2014. Since the date of our last annual goodwill impairment test, there have been no material developments, events, changes in operating performance or other circumstances that would cause management to believe it is more likely than not that the fair value of any of our reporting units would be less than its carrying amount.

During step one of our annual goodwill impairment test, we determined that the fair value of certain intangible assets was less than the carrying value and as a result recognized a non-cash other intangibles impairment charge of $0.9 million during the fourth quarter of 2014. In addition, we recorded impairment charges of $2.2 million related to intangibles associated with those care centers that were closed or consolidated during 2014 as discussed in Note 11 – Exit and Restructuring Activities. These impairments did not have any impact on our compliance with our debt covenant or on our cash flows.

During the fiscal year 2013, we recognized the following: a non-cash goodwill impairment charge of $1.3 million and a non-cash other intangibles impairment charge of $8.2 million. The non-cash goodwill impairment charge related to an investment that we currently consolidate as discussed in Note 1- Nature of Operations, Consolidation and Presentation of Financial Statements. Included in the non-cash other intangibles impairment charge discussed above is $4.6 million recognized during step one of our 2013 annual goodwill impairment test and $3.6 million related to intangibles associated with those care centers that were closed or consolidated during 2013 as discussed in Note 11 – Exit and Restructuring Activities.

During the fiscal year 2012, we recognized the following: a non-cash goodwill impairment charge of $157.9 million, a non-cash other intangibles impairment charge of $4.2 million and a deferred tax benefit of $37.0 million. The goodwill impairment charge primarily resulted from a further decline in our market capitalization and the other intangibles impairment charge was due to a change in the fair value of various non-amortizable licenses and trade names. Included in the non-cash goodwill and other intangibles impairment charges discussed above is $17.4 million and $3.1 million, respectively, related to a consolidated investment as a result of a significant decline in the projected operating forecasts during the fourth quarter of 2012. These impairments did not have any impact on our compliance with our debt covenants or on our cash flows.

The following tables summarize the activity related to our goodwill for the 2014, 2013 and 2012 (amounts in millions):
           
   Goodwill
   Home Health Hospice Total
Balances at December 31, 2011 $152.5 $182.2 $334.7
 Additions  23.6  9.2  32.8
 Impairment  (157.9)  0.0  (157.9)
Balances at December 31, 2012  18.2  191.4  209.6
 Additions  0.1  0.9  1.0
 Write-off (1)  (0.4)  0.0  (0.4)
 Impairment  (1.3)  0.0  (1.3)
Balances at December 31, 2013  16.6  192.3  208.9
 Write-off (1)  (0.1)  (3.2)  (3.3)
Balances at December 31, 2014 $16.5 $189.1 $205.6
           

  • Write-off of goodwill related to the sale of care centers as discussed in Note 11 – Exit and Restructuring Activities.

The following summarizes the activity related to our other intangible assets, net for 2014, 2013 and 2012 (amounts in millions):
              
   Other Intangible Assets, Net
         Non-Compete   
         Agreements &   
   Certificates of Acquired  Reacquired   
   Need and Names of Franchise   
   Licenses Business (1) Rights Total
Balances at December 31, 2011 $34.0 $11.8 $4.2 $50.0
 Additions  3.6  0.0  0.4  4.0
 Impairment  (3.9)  (0.3)  0.0  (4.2)
 Amortization  0.0  0.0  (2.8)  (2.8)
Balances at December 31, 2012  33.7  11.5  1.8  47.0
 Additions  0.6  0.0  0.0  0.6
 Write-off (1)  (1.1)  0.0  0.0  (1.1)
 Impairment  (7.8)  (0.4)  0.0  (8.2)
 Amortization  0.0  0.0  (1.6)  (1.6)
Balances at December 31, 2013  25.4  11.1  0.2  36.7
 Additions  0.0  0.0  0.0  0.0
 Write-off (1)  (0.2)  0.0  0.0  (0.2)
 Impairment  (2.1)  (1.0)  0.0  (3.1)
 Amortization  0.0  0.0  (0.2)  (0.2)
Balances at December 31, 2014 $23.1 $10.1 $0.0 $33.2
              

  • Write-off of intangible assets related to the sale of care centers as discussed in Note 11 – Exit and Restructuring Activities.

 

Our amortizable intangible assets were fully amortized during 2014; only unamortized intangible assets remain as of December 31, 2014.