XML 39 R13.htm IDEA: XBRL DOCUMENT v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS, NET GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
As discussed in further detail below, during 2024, we recorded a non-cash impairment charge of $30.8 million related to the goodwill associated with our high acuity care reporting unit as a result of our annual impairment test as of October 31st. The non-cash impairment charge is reflected in impairment within our consolidated statement of operations. During 2023 and 2022, we did not record any goodwill impairment charges as a result of our annual impairment test, and none of the goodwill associated with our reporting units was considered impaired as of October 31st of each respective year.
During 2024, we performed a qualitative assessment to determine if it was more likely than not that the fair values of our reporting units were less than their carrying values by evaluating relevant events and circumstances including financial performance, market conditions and share price. Based on this assessment, we concluded that the goodwill associated with our home health and hospice reporting units was not considered at risk of impairment as of October 31, 2024. In addition to the qualitative assessment, we also performed a quantitative analysis using an income approach for our high acuity care reporting unit due to delays in achieving our long-term projections established as of the August 2021 acquisition date. This quantitative analysis required us to make estimates and assumptions surrounding projected revenues and costs, growth rates and discount rates. Based on this analysis, we concluded that the carrying value of the goodwill associated with our high acuity care reporting unit exceeded its fair value as of October 31, 2024. As a result, we recorded a non-cash impairment charge of $30.8 million during the three-month period ended December 31, 2024. Additionally, we allocated a portion of the goodwill impairment to noncontrolling interests and recorded an adjustment totaling $5.9 million to reduce the carrying value of the noncontrolling interests. The remaining carrying value of the goodwill associated with our high acuity care reporting unit is $200.3 million as of December 31, 2024.
The following table summarizes the activity related to our goodwill for 2024 and 2023 (amounts in millions):
Goodwill
Home HealthHospicePersonal CareHigh Acuity CareTotal
Balances at December 31, 2022(1)
$203.8 $800.9 $43.1 $239.6 $1,287.4 
Additions0.3 — — — 0.3 
Adjustments(2)
0.2 — — — 0.2 
Reclass between segments(3)
8.5 — — (8.5)— 
Divestitures(4)
— — (43.1)— (43.1)
Balances at December 31, 2023212.7 800.9 — 231.1 1,244.7 
Impairment(5)
— — — (30.8)(30.8)
Balances at December 31, 2024(6)
$212.7 $800.9 $— $200.3 $1,213.9 
(1)Net of prior years' accumulated impairment losses of $730.0 million within the home health reporting unit.
(2)The Company finalized its valuation of the assets acquired and liabilities assumed in connection with the acquisition of Evolution on April 1, 2022.
(3)Effective January 1, 2023, we transitioned from the high acuity care segment to the home health segment the operations of a home health care center that was contributed to the high acuity care segment by one of our health system partners during 2022.
(4)The Company divested its personal care business on March 31, 2023.
(5)The Company recorded a non-cash impairment charge of $30.8 million related to the goodwill associated with our high acuity care reporting unit as a result of our annual impairment test as of October 31, 2024.
(6)Net of accumulated impairment losses of $730.0 million and $30.8 million within the home health reporting unit and the high acuity care reporting unit, respectively.
Other Intangible Assets, net
As described in further detail below, during 2024, we recorded a non-cash impairment charge of $17.6 million related to the unamortizable acquired names associated with our high acuity care reporting unit as a result of our annual impairment test as of October 31, 2024. The non-cash impairment charge is reflected in impairment within our consolidated statement of operations. During 2023 and 2022, we did not record any impairment charges related to our other intangible assets as a result of our annual impairment test.
During 2024, we performed a qualitative assessment of our indefinite-lived intangible assets to determine if it was more likely than not that the fair values of any of our indefinite-lived intangible assets would be less than their carrying amounts. Based on this assessment, we concluded that the indefinite-lived intangible assets associated with our home health and hospice reporting units were not considered at risk of impairment as of October 31, 2024. In addition to the qualitative assessment, we also performed a quantitative analysis using the relief from royalty method for the indefinite-lived intangible assets (acquired names) associated with our high acuity care reporting unit due to delays in achieving our long-term projections established as of the August 2021 acquisition date. This quantitative analysis required us to make estimates and assumptions surrounding projected revenues and costs, growth rates and discount rates. Based on this analysis, we concluded that the carrying value of the indefinite-lived intangible assets (acquired names) associated with our high acuity care reporting unit exceeded their fair values as of October 31, 2024. As a result, we recorded a non-cash impairment charge of $17.6 million during the three-month period ended December 31, 2024. The remaining carrying value of the indefinite-lived assets (acquired names) associated with our high acuity care reporting unit is $10.7 million as of December 31, 2024.
Other intangible assets, net is comprised of the following (amounts in millions):
Gross AssetAccumulated AmortizationNet Book Value
Balances at December 31, 2024
Certificates of Need and Licenses$52.8 $(6.3)$46.5 
Acquired Names - Unamortizable18.0 — 18.0 
Technology29.2 (12.5)16.7 
Total$100.0 $(18.8)$81.2 
Balances at December 31, 2023
Certificates of Need and Licenses$52.8 $(6.1)$46.7 
Acquired Names - Unamortizable35.6 — 35.6 
Technology28.3 (7.9)20.4 
Total$116.7 $(14.0)$102.7 

The following table summarizes the activity related to our other intangible assets, net for 2024 and 2023 (amounts in millions):
Other Intangible Assets, Net
Certificates of Need and LicensesAcquired
Names -Unamortizable		Non-Compete
Agreements
Technology(2)
Total
Balances at December 31, 2022$46.7 $35.6 $1.8 $17.1 $101.2 
Additions0.1 — — 7.1 7.2 
Amortization(1)
(0.1)— (1.8)(3.8)(5.7)
Balances at December 31, 202346.7 35.6 — 20.4 102.7 
Additions— — — 0.8 0.8 
Impairment— (17.6)— — (17.6)
Amortization(1)
(0.2)— — (4.5)(4.7)
Balances at December 31, 2024$46.5 $18.0 $— $16.7 $81.2 
(1)Amortization of certificates of need and licenses is related to care centers that were closed during 2023 and 2024.
(2)The weighted average remaining amortization period of our technology is 3.6 years.
The estimated aggregate amortization expense related to intangible assets for each of the five succeeding years is as follows (amounts in millions):
Intangible Asset Amortization
2025$4.7 
20264.7 
20274.7 
20282.6 
2029— 
$16.7 
See Note 4 – Mergers, Acquisitions and Dispositions for further details on changes to goodwill and other intangible assets, net.