v3.26.1
Goodwill and Identifiable Intangible Assets
 3 Months Ended
Mar. 31, 2026
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 three months ended March 31, 2026 was as follows (in thousands):
Sleep HealthRespiratory HealthDiabetes HealthWellness at HomeTotal Goodwill
Balance at December 31, 2025$1,595,083 $682,011 $83,801 $180,533 $2,541,428 
  Goodwill from acquisitions (note 3)3,631 10,645 — 11,661 25,937 
Balance at March 31, 2026$1,598,714 $692,656 $83,801 $192,194 $2,567,365 
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.
The Company did not identify any triggering events indicating a possible impairment of goodwill at March 31, 2026.
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 March 31, 2026 and December 31, 2025 (in thousands):
March 31, 2026
Weighted-Average
Remaining Life (Years)
Tradenames, net of accumulated amortization of $64,402
$44,8984.7
Payor contracts, net of accumulated amortization of $46,666
35,3344.3
Identifiable intangible assets, net$80,232

December 31, 2025
Weighted-Average
Remaining Life (Years)
Tradenames, net of accumulated amortization of $61,564
$47,7374.9
Payor contracts, net of accumulated amortization of $44,616
37,3844.6
Identifiable intangible assets, net$85,121
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 $4.9 million and $5.2 million for the three months ended March 31, 2026 and 2025, respectively.
Future amortization expense related to identifiable intangible assets is estimated to be as follows (in thousands):
Twelve months ending March 31,
2027$18,454 
202817,626 
202917,626 
203017,626 
20318,900 
Thereafter— 
Total$80,232 
The Company did not recognize any impairment charges related to identifiable intangible assets during the three months ended March 31, 2026 and 2025.