Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

v3.6.0.2
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Identified Intangible Assets
Changes in the carrying amount of goodwill during the years ended December 31, 2016 and 2015, were as follows, in thousands:
Balance at January 1, 2015
 
$
193,378

Goodwill acquired
 
26,719

Balance at December 31, 2015
 
220,097

Goodwill acquired
 
39,890

Other
 
(49
)
Balance at December 31, 2016
 
$
259,938


There was no impairment of goodwill recorded in 2016, 2015, or 2014.
Changes in identified intangible assets during the years ended December 31, 2016 and 2015 were as follows:
 
December 31, 2015
 
Additions
 
Dispositions
 
Impairments
 
Transfers / Other
 
December 31, 2016
 
(in thousands)
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Developed technologies
$
69,379

 
$
6,538

 
$

 
$

 
$
7

 
$
75,924

Client relationships
96,523

 
15,331

 
(3,386
)
 

 

 
108,468

Vendor relationships
5,650

 

 

 

 

 
5,650

Trade names
5,149

 
750

 

 

 

 
5,899

Total finite-lived intangible assets
176,701

 
22,619

 
(3,386
)
 

 
7

 
195,941

Less: Accumulated amortization
(110,882
)
 
(24,489
)
 
1,904

 

 

 
(133,467
)
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trade names
15,461

 

 
(2,212
)
 
(750
)
 
3

 
12,502

Intangible assets, net
$
81,280

 
$
(1,870
)
 
$
(3,694
)
 
$
(750
)
 
$
10

 
$
74,976

 
December 31, 2014
 
Additions
 
Dispositions
 
Impairments
 
Transfers / Other
 
December 31, 2015
 
(in thousands)
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Developed technologies
$
55,212

 
$
14,194

 
$

 
$

 
$
(27
)
 
$
69,379

Client relationships
86,753

 
9,770

 

 

 

 
96,523

Vendor relationships
5,650

 

 

 

 

 
5,650

Trade names

 
83

 

 

 
5,066

 
5,149

Total finite-lived intangible assets
147,615

 
24,047

 

 

 
5,039

 
176,701

Less: Accumulated amortization
(88,880
)
 
(22,002
)
 

 

 

 
(110,882
)
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trade names
41,350

 

 

 
(20,801
)
 
(5,088
)
 
15,461

Intangible assets, net
$
100,085

 
$
2,045

 
$

 
$
(20,801
)
 
$
(49
)
 
$
81,280

Amortization expense for finite-lived intangible assets totaled $24.5 million, $22.0 million, and $20.7 million during the years ended December 31, 2016, 2015, and 2014, respectively.
The following table sets forth the estimated amortization of intangible assets for the years ending December 31, in thousands:
2017
$
18,797

2018
13,380

2019
9,860

2020
8,159

2021
5,545


In March 2015, the Company completed the integration of the InstaManager and Kigo platforms into a single solution marketed under the Kigo name. Subsequent to this integration, the Company discontinued the use of the InstaManager trade name to market or identify the software. Due to this change in circumstance, the Company evaluated the InstaManager trade name for impairment and concluded an impairment in the amount of $0.5 million existed at March 31, 2015.
In connection with the preparation of the third quarter 2015 financial statements, the Company identified indicators requiring the assessment of certain indefinite-lived trade names for impairment, primarily associated with the Company's 2011 acquisition of MyNewPlace. Identified indicators included declines in actual and anticipated lead-generation revenues and a change in the Company's long-term marketing strategy. As a result, the Company analyzed these intangible assets and recorded a $20.3 million impairment charge during the third quarter of 2015, representing the amount by which the carrying value of the indefinite-lived trade names exceeded their estimated fair value. Given the change in the Company's long-term marketing strategy and anticipated use of the trade names, the remaining balance was reclassified to finite-lived intangible assets as of September 30, 2015. The trade names were assigned an estimated useful life of seven years, amortized on a straight-line basis.
The $3.7 million of net dispositions shown above reflect our sale of certain assets associated with our senior living referral services in the fourth quarter of 2016. Based on the status of the sale negotiations at the end of the third quarter, we determined there was a possibility that certain of the assets could be impaired and performed an impairment analysis. As a result of that analysis we recorded an impairment of the associated trade names at September 30, 2016, in the amount of $0.8 million, the amount by which the carrying value of the trade names exceeded their estimated fair value on the date of analysis.
The above impairment charges are included in "Impairment of identified intangible assets" in the accompanying Consolidated Statements of Operations. See Note 12 for discussion of the methodology and inputs utilized by the Company to estimate the fair value of these indefinite-lived trade names.