BUSINESS ACQUISITIONS |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Business Combination [Abstract] | |
| BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS During August 2025, the Company and Corewell Health signed a definitive agreement to form a new entity which will perform laboratory testing in the state of Michigan via a new laboratory facility. The parties completed the transaction during January 2026. In connection with the transaction, Corewell Health contributed a laboratory business over which the Company obtained a controlling financial interest. Under the terms of the transaction, the Company and Corewell Health are continuing to serve providers and patients in Michigan from their existing patient service centers (which are operated by the newly formed entity) and their existing laboratories until a new laboratory is operational during 2027. Equity ownership of the newly formed entity is shared 51% by the Company and 49% by Corewell Health and the Company is consolidating the entity in its consolidated financial statements. The total purchase consideration transferred to Corewell Health in conjunction with the formation of the entity included $38 million of cash consideration and a 49% non-controlling interest in the entity, with such interest valued at $253 million. Based on the preliminary purchase price allocation, which may be revised as additional information becomes available during the measurement period, the assets acquired and liabilities assumed principally consist of $179 million of goodwill, of which $22 million is deductible for tax purposes, $124 million of customer-related intangible assets, $20 million of operating lease assets, $20 million of operating lease liabilities, and $12 million of deferred income tax liabilities. The intangible assets are being amortized over a useful life of 15 years. The acquisition described above was accounted for under the acquisition method of accounting. As such, the assets acquired and liabilities assumed are recorded based on their estimated fair values as of the closing date. The goodwill recorded primarily includes the expected synergies resulting from combining the operations of the acquired entity with those of the Company and the value associated with an assembled workforce and other intangible assets that do not qualify for separate recognition. All of the goodwill acquired in connection with the acquisition has been allocated to the Company's DIS business. For further details regarding business segment information, see Note 11. Supplemental pro forma combined financial information, and financial information subsequent to the acquisition close date, has not been presented as the impact of the acquisition is not material to the Company's consolidated financial statements. For details regarding the Company's 2025 acquisitions, see Note 6 to the audited consolidated financial statements in the Company's 2025 Annual Report on Form 10-K.
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