Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Identified Intangible Assets

v3.8.0.1
Goodwill and Identified Intangible Assets
9 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identified Intangible Assets
Goodwill and Identified Intangible Assets
Changes in the carrying amount of goodwill during the nine months ended September 30, 2017 were as follows, in thousands:
Balance as of December 31, 2016
$
259,938

Goodwill acquired
305,451

Other
36

Balance as of September 30, 2017
$
565,425


Identified intangible assets consisted of the following at September 30, 2017 and December 31, 2016:
 
 
September 30, 2017
 
December 31, 2016
 
 
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
 
(in thousands)
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Developed technologies
 
$
116,823

 
$
(71,356
)
 
$
45,467

 
$
75,671

 
$
(62,249
)
 
$
13,422

Client relationships
 
143,998

 
(72,965
)
 
71,033

 
108,468

 
(64,173
)
 
44,295

Vendor relationships
 
5,650

 
(5,650
)
 

 
5,650

 
(5,650
)
 

Trade names
 
13,840

 
(2,798
)
 
11,042

 
5,899

 
(1,225
)
 
4,674

Non-compete agreements
 
4,173

 
(407
)
 
3,766

 
253

 
(170
)
 
83

Total finite-lived intangible assets
 
284,484

 
(153,176
)
 
131,308

 
195,941

 
(133,467
)
 
62,474

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Trade names
 
12,139

 

 
12,139

 
12,502

 

 
12,502

Total identified intangible assets
 
$
296,623

 
$
(153,176
)
 
$
143,447

 
$
208,443

 
$
(133,467
)
 
$
74,976


Amortization expense related to finite-lived intangible assets was $7.1 million and $6.3 million for the three months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 and 2016, amortization expense related to finite-lived intangible assets was $19.7 million and $18.5 million, respectively.
In October 2016, we entered into an agreement with A Place for Mom, Inc. (“A Place for Mom”), whereby we sold certain assets associated with our senior living referral services, including certain indefinite-lived trade names, and agreed with A Place for Mom to collaborate to improve lead transparency utilizing A Place for Mom’s and the Company’s senior living customer relationship management platforms. Based on the status of the sale negotiations, we concluded there was a possibility that the negotiated assets could be impaired and performed an impairment analysis as of September 30, 2016. As a result of this analysis, we recorded an impairment of the associated trade names 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, in the third quarter of 2016. See Note 11 for discussion of the methodology and inputs utilized by the Company to estimate the fair value of these indefinite-lived trade names.