The Company’s goodwill and intangible assets are the result of historical acquisitions; primarily the acquisition of Covance in 2015 by Labcorp. Subsequent acquisitions of businesses were allocated to Fortrea based on the inclusion of the business activities using valuations at the time of acquisition.



	March 31, 2024		March 31, 2023
Balance as of December 31	$	1,739.4	$	1,707.4

Foreign currency impact and other adjustments to goodwill	(11.8)		12.5
Balance as of March 31	$	1,727.6	$	1,719.9

The Company assesses goodwill for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable. The Company recognizes an impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value.

Although the Company believes that the current assumptions and estimates used in its goodwill analysis are reasonable, supportable and appropriate, the Company’s business could be impacted by unfavorable changes, including those that impact the existing assumptions used in the impairment analysis. Various factors could reasonably be expected to unfavorably impact existing assumptions; primarily a worsening economic environment and protracted economic downturn and related impacts, including delays in revenue from new customers, increases in customer termination activity, or increases in operating costs.

Accordingly, there can be no assurance that the estimates and assumptions made for the purposes of the goodwill impairment analysis will prove to be accurate predictions of future performance.

The Company will continue to monitor the financial performance of and assumptions for its reporting units. A significant increase in the discount rate, decrease in the revenue and terminal growth rates, decreased operating margin or substantial reductions in end markets and volume assumptions could have a negative impact on the estimated fair value of the reporting units. A future impairment charge for goodwill or intangible assets could have a material effect on the Company’s consolidated financial position and results of operations.


	March 31, 2024						December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	1,135.7	$	(431.5)	$	704.2	$	1,143.5	$	(420.1)	$	723.4
Technology	27.7		(25.2)		2.5		27.7		(24.5)		3.2
Other	12.5		(11.3)		1.2		12.5		(11.0)		1.5

Total	$	1,175.9	$	(468.0)	$	707.9	$	1,183.7	$	(455.6)	$	728.1

Amortization of intangible assets for the three months ended March 31, 2024 and 2023 was $15.3 and $15.0, respectively. Amortization expense of intangible assets is estimated to be $45.5 for the remainder of 2024, $58.3 in 2025, $57.4 in 2026, $57.4 in 2027, $50.1 in 2028 and $439.2 thereafter.