SEC Filings

10-Q
ENVISION HEALTHCARE CORP filed this Form 10-Q on 08/08/2017
Entire Document
 
Item 1. Financial Statements - (continued)

(8Goodwill and Intangible Assets

Goodwill 

The changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows (in millions):
 
Physician Services
 
Ambulatory Services
 
Total
Balance at December 31, 2016
$
5,509.7

 
$
2,074.3

 
$
7,584.0

Goodwill acquired, including post acquisition adjustments
534.1

 
75.0

 
609.1

Goodwill disposed, including impact of deconsolidation transactions

 
(14.1
)
 
(14.1
)
Balance at June 30, 2017
$
6,043.8

 
$
2,135.2

 
$
8,179.0


During the six months ended June 30, 2017, goodwill was recorded in the Company's physician services segment due to the acquisition of nine physician practices. In the Company's ambulatory services segment, goodwill increased due to the acquisition of four surgery centers and was offset by $14.1 million of goodwill from the disposal of three surgery centers within the ambulatory services segment.

Intangible Assets
Amortizable Intangible Assets
 
Estimated Useful Life
 
Weighted Average Amortization Period
Customer relationships
 
17 to 20 years
 
18.6
Capitalized software
 
3 to 5 years
 
4.4
Trade names
 
1 year
 
0.4
Agreements, contracts and other
 
3 to 10 years
 
3.6

Intangible assets at June 30, 2017 and December 31, 2016 consisted of the following (in millions):
 
June 30, 2017
 
December 31, 2016
 
Gross
 
 
 
 
 
Gross
 
 
 
 
 
Carrying
 
Accumulated
 
 
 
Carrying
 
Accumulated
 
 
 
Amount
 
Amortization
 
Net 
 
Amount
 
Amortization
 
Net 
Amortizable intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
3,422.9

 
$
(236.1
)
 
$
3,186.8

 
$
3,235.0

 
$
(154.6
)
 
$
3,080.4

Capitalized software
148.0

 
(58.0
)
 
90.0

 
136.5

 
(41.8
)
 
94.7

Trade names
25.0

 
(14.6
)
 
10.4

 
25.0

 
(2.1
)
 
22.9

Agreements, contracts and other
13.7

 
(5.8
)
 
7.9

 
13.2

 
(4.7
)
 
8.5

Total amortizable intangible assets
3,609.6

 
(314.5
)
 
3,295.1

 
3,409.7

 
(203.2
)
 
3,206.5

Non-amortizable intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trade names
460.0

 

 
460.0

 
460.0

 

 
460.0

Restrictive covenant arrangements
8.0

 

 
8.0

 
9.0

 

 
9.0

Total non-amortizable intangible assets
468.0

 

 
468.0

 
469.0

 

 
469.0

Total intangible assets
$
4,077.6

 
$
(314.5
)
 
$
3,763.1

 
$
3,878.7

 
$
(203.2
)
 
$
3,675.5


Amortization of intangible assets for the three months ended June 30, 2017 and 2016 was $55.5 million and $21.1 million, respectively, and $111.6 million and $41.5 million for the six months ended June 30, 2017 and 2016, respectively. Estimated amortization of intangible assets for the remainder of 2017 and each of the following five years and thereafter is $113.4 million, $202.1 million, $193.7 million, $186.9 million, $180.0 million, $174.8 million and $2.24 billion, respectively. The Company expects to recognize amortization of all intangible assets over a weighted average period of 18.2 years with no expected residual values.

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