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 six months ended June 30, 2026 was as follows (in thousands):


	Sleep Health		Respiratory Health		Wellness at Home		Total Goodwill
Balance at December 31, 2025	$	1,595,083	$	682,011	$	180,533	$	2,457,627
Goodwill from acquisitions (note 3)	11,459		22,874		22,592		56,925

Goodwill impairment	—		(79,111)		(65,125)		(144,236)
Other	29		9		77		115
Balance at June 30, 2026	$	1,606,571	$	625,783	$	138,077	$	2,370,431

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 connection with the Company's plan to divest the Diabetes Health business, as further discussed in Note 5, Held for Sale and Discontinued Operations, and corresponding revisions to the Company's financial projections, management performed a quantitative goodwill impairment test for each of the Company's reporting units as of June 30, 2026. As part of these revisions, the Company reallocated certain shared corporate support costs that were previously attributed to the Diabetes Health business among the remaining 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 values of the Company's Respiratory Health and Wellness at Home reporting units were less than their respective carrying values, and as such, the Company recognized non-cash goodwill impairment charges totaling $144.2 million during the three and six months ended June 30, 2026. 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.

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 June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $45,320	$	31,780	4.7
Identifiable intangible assets, net	$	31,780


	December 31, 2025
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $41,626	$	35,774	5.1
Identifiable intangible assets, net	$	35,774

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 $2.0 million and $4.0 million for the three and six months ended June 30, 2026, respectively, and was $2.1 million and $4.3 million for the three and six months ended June 30, 2025, respectively.

Future amortization expense related to identifiable intangible assets is estimated to be as follows (in thousands):


Twelve months ending June 30,
2027	$	7,192
2028	6,860
2029	6,860
2030	6,860
2031	4,008
Thereafter	—
Total	$	31,780

The Company did not recognize any impairment charges related to identifiable intangible assets during the six months ended June 30, 2026 and 2025.