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Goodwill and Identifiable Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets 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 years ended December 31, 2025 and 2024 was as follows (in thousands):
Sleep HealthRespiratory HealthDiabetes HealthWellness at HomeTotal
Balance at December 31, 2023$2,724,958 
Goodwill impairment(13,078)
Write-off from sale of assets(4,598)
Reallocation adjustment (1)1,581,039 676,747 211,796 237,700 2,707,282 
Goodwill classified as assets held for sale — — — (41,211)(41,211)
Goodwill from acquisitions (note 3)— — — 9,095 9,095 
Balance at December 31, 2024$1,581,039 $676,747 $211,796 $205,584 $2,675,166 
Goodwill from acquisitions (note 3)12,893 5,039 — 15,328 33,260 
Write-off from dispositions (note 4)— — — (41,319)(41,319)
Other (2)1,151 225 — 940 2,316 
Goodwill impairment— — (127,995)— (127,995)
Balance at December 31, 2025 (3)$1,595,083 $682,011 $83,801 $180,533 $2,541,428 
(1)    Represents the reallocation of goodwill from one reportable segment to the Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home reportable segments, using a relative fair value approach, as a result of the change in reportable segments in the fourth quarter of 2024.
(2)    The Company is a member of a joint venture subsidiary which includes another member who has a noncontrolling interest in such subsidiary. During the year ended December 31, 2025, the noncontrolling interest member contributed certain assets to the joint venture totaling $3.0 million, of which $2.3 million was attributed to goodwill. This transaction was treated as a business combination under ASC 805.
(3)    On a consolidated basis, gross and net goodwill as of December 31, 2025 was $3.5 billion and $2.5 billion, respectively. The total amount of accumulated impairment charges as of December 31, 2025 was $1.0 billion.
Management is required to perform an assessment of the recoverability of goodwill on an annual basis and upon the occurrence 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.
In the fourth quarter of 2025, in connection with the Company's annual assessment of the recoverability of goodwill, management performed a quantitative goodwill impairment test for each of the Company's reporting units. The fair value of the Company’s reporting units were computed using (1) a discounted cash flow method which includes assumptions on the projected future cash flows, earnings, discount rates, working capital adjustments, long-term growth rates, and others, and (2) a market approach method to estimate value through the analysis of recent sales of comparable assets or business entities. The impairment test indicated that the estimated fair value of the Company's Diabetes Health reporting unit was less than its carrying value, and as such, the Company recognized a non-cash goodwill impairment
charge of $128.0 million during the year ended December 31, 2025. The impairment charge was primarily driven by revisions to the Company's financial projections.
While the Company's quantitative goodwill impairment test did not result in an impairment charge of the Company's Wellness at Home or Respiratory Health reporting units, based on the results of such test, the excess of the estimated fair value of the Wellness at Home reporting unit over its carrying value was less than 10%, and the excess of the estimated fair value of the Respiratory Health reporting unit over its carrying value was less than 20%. 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 or annual period and could be required to recognize a non-cash goodwill impairment charge at that time, which could be material.
The goodwill impairment charge recognized during the year ended December 31, 2024 related to the disposition of certain immaterial custom rehab technology assets.
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 December 31, 2025 and 2024 (in thousands):
December 31, 2025
Weighted-Average
Remaining Life (Years)
Tradenames, net of accumulated amortization of $61,564
$47,737 4.9
Payor contracts, net of accumulated amortization of $44,616
37,384 4.6
Identifiable intangible assets, net$85,121 
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 $20.3 million, $22.3 million and $32.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Future amortization expense related to identifiable intangible assets is estimated to be as follows (in thousands):
Twelve months ending December 31,
2026$18,913 
202717,650 
202817,626 
202917,626 
203012,728 
Thereafter578 
Total$85,121 
The Company did not recognize any impairment charges related to identifiable intangible assets during the years ended December 31, 2025, 2024 and 2023.