CPSI 2017 Annual Report

82 11. INTANGIBLE ASSETS AND GOODWILL Our purchased definite-lived intangible assets as of December 31, 2017 and 2016 are summarized as follows: (In thousands) Customer Relationships Trademark Developed Technology Total Gross carrying amount. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,300 $ 10,900 $ 24,100 $ 117,300 Accumulated amortization for year ended December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,398) (832) (2,952) (10,182) Net intangible assets as of December 31, 2016. . . . . . . 75,902 10,068 21,148 107,118 Accumulated amortization for year ended December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,539) (850) (3,016) (10,405) Net intangible assets as of December 31, 2017. . . . . . . $ 69,363 $ 9,218 $ 18,132 $ 96,713 Weighted average remaining years of useful life. . . . . . . 11 13 6 11 The following table represents the remaining amortization of definite-lived intangible assets as of December 31, 2017: (In thousands) For the year ended December 31, 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,406 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,112 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,106 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,066 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,066 Due thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,957 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 96,713 The following table sets forth the change in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016: (In thousands) Acute Care EHR Post-acute Care EHR TruBridge Total Balance as of December 31, 2015 . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ — Goodwill acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,095 57,570 13,784 168,449 Balance as of December 31, 2016 . . . . . . . . . . . . . . . . . . . . $ 97,095 $ 57,570 $ 13,784 $ 168,449 Goodwill impairment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (28,000) — (28,000) Balance as of December 31, 2017 . . . . . . . . . . . . . . . . . . . . $ 97,095 $ 29,570 $ 13,784 $ 140,449 We did not identify any events or circumstances that would require interim goodwill impairment testing prior to October 1, 2017. Based on our assessment as of October 1, 2017, we determined that there was no impairment of goodwill for our Acute Care EHR and TruBridge reporting units. We also determined as of October 1, 2017, that it was more likely than not that we did not have an impairment of our Post-acute Care EHR reporting unit. During the fourth quarter of 2017, the cumulation of events, including anticipated attrition of significant post-acute customer accounts and a product development acceleration plan for our post-acute EHR software, triggered management to re-assess future discounted cash flow projections incorporated in the October 1, 2017 annual assessment to include updated assumptions for the aforementioned fourth quarter events impacting the Post-acute Care EHR reporting unit. The result of our fair value assessment, which applied a combination of the income and market valuation approach, measured the reporting unit's fair value less than the reporting unit's carrying value. A goodwill impairment of $28.0 million was recorded against our Post-acute Care EHR reporting unit as of December 31, 2017. We determined there was no impairment to goodwill as of December 31, 2016.