Goodwill and Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The change in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2025 was as follows (in thousands):


	Sleep Health		Respiratory Health		Diabetes Health		Wellness at Home		Total Goodwill
Balance at December 31, 2024	$	1,581,039	$	676,747	$	211,796	$	205,584	$	2,675,166
Goodwill from acquisitions (note 3)	8,179		2,650		—		4,822		15,651
Goodwill from dispositions (note 4)	—		—		—		(39,732)		(39,732)
Other (1)	1,151		225		—		940		2,316
Balance at September 30, 2025	$	1,590,369	$	679,622	$	211,796	$	171,614	$	2,653,401

(1)The Company is a member of a joint venture subsidiary which includes another member who has a non-controlling interest in such subsidiary. During the three months ended September 30, 2025, the non-controlling interest member contributed certain assets to the joint venture totaling $3.0 million, of which $2.3 million was attributed to goodwill.

Management is required to perform an assessment of the recoverability of goodwill on an annual basis and upon the identification of a triggering event. Triggering events potentially warranting an interim goodwill impairment assessment include, among other factors, declines in historical or projected reporting unit revenue, operating results or cash flows, and sustained decreases in the Company’s stock price or market capitalization. While management cannot predict if or when future goodwill impairments may occur, a non-cash goodwill impairment charge could have a material adverse effect on the Company’s operating results, net assets and the Company’s cost of, or access to, capital. As discussed in Note 4, Disposals, during the nine months ended September 30, 2025, the Company completed the disposition of two businesses within its Wellness at Home segment. In connection with these disposal transactions, the Company performed a goodwill impairment assessment on the remaining goodwill included in the Wellness at Home segment and concluded there was no impairment during the nine months ended September 30, 2025.

The Company did not identify any other triggering events indicating a possible impairment of goodwill at September 30, 2025. If in future periods, the Company were to identify events that indicate a potential impairment of goodwill, the Company may be required to perform a goodwill impairment test at an interim period and could be required to recognize a non-cash goodwill impairment charge at that time, which could be material.

The non-cash goodwill impairment charge during the nine months ended September 30, 2024 related to the disposition of an immaterial business.

Identifiable intangible assets that are separable and have determinable useful lives are valued separately and amortized over the period which reflects the pattern in which the economic benefits of the assets are expected to be consumed. Identifiable intangible assets consisted of the following at September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $58,642	$	50,658	5.2
Payor contracts, net of accumulated amortization of $42,566	39,434		4.8
Identifiable intangible assets, net	$	90,092


	December 31, 2024
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $49,736	$	59,964	5.6
Payor contracts, net of accumulated amortization of $36,416	45,584		5.6
Identifiable intangible assets, net	$	105,548

Amortization expense related to identifiable intangible assets, which is included in depreciation and amortization, excluding patient equipment depreciation, in the accompanying statements of operations was $5.1 million and $15.4 million for the three and nine months ended September 30, 2025, respectively, and was $5.6 million and $16.7 million for the three and nine months ended September 30, 2024, respectively.

Future amortization expense related to identifiable intangible assets is estimated to be as follows (in thousands):


Twelve months ending September 30,
2026	$	19,248
2027	17,880
2028	17,626
2029	17,626
2030	15,419
Thereafter	2,293
Total	$	90,092

The Company did not recognize any impairment charges related to identifiable intangible assets during the nine months ended September 30, 2025 and 2024.