GOODWILL AND INTANGIBLE ASSETS

The changes in goodwill for the years ended December 31, 2025 and 2024 were as follows:


	2025		2024

Balance, beginning of year	$	8,856	$	7,733
Goodwill acquired during the year	80		1,146
Adjustments to goodwill	9		(23)
Balance, end of year	$	8,945	$	8,856

Principally all of the Company’s goodwill as of December 31, 2025 and 2024 was associated with its DIS business.

For the year ended December 31, 2025, goodwill acquired was principally associated with the acquisition of select clinical testing assets and select dialysis-related water testing assets of Fresenius Medical Care's wholly-owned Spectra Laboratories (see Note 6). For the year ended December 31, 2025, adjustments to goodwill principally related to foreign currency translation, partially offset by the finalization of the purchase price allocation for a 2024 acquisition.

For the year ended December 31, 2024, goodwill acquired was principally associated with the acquisitions of LifeLabs, the laboratory business of three physician groups in New York, select assets of the outreach laboratory services business of Allina Health, select assets of the outreach laboratory services business of OhioHealth and the outreach laboratory services business of University Hospitals (see Note 6). For the year ended December 31, 2024, adjustments to goodwill related to foreign currency translation.

Intangible assets as of December 31, 2025 and 2024 consisted of the following:


	Weighted Average Amortization Period (in years)	2025						2024
		Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizing intangible assets:
Customer-related	18	$	2,247	$	(1,112)	$	1,135	$	2,274	$	(1,030)	$	1,244

Technology-related	15	287		(129)		158		282		(108)		174
Trade names	15	147		(58)		89		143		(52)		91
Non-competition agreements	5	15		(3)		12		15		—		15
Other	13	49		(42)		7		64		(61)		3
Total		2,745		(1,344)		1,401		2,778		(1,251)		1,527

Intangible assets not subject to amortization:
Trade names		235		—		235		235		—		235
Other		—		—		—		1		—		1
Total intangible assets		$	2,980	$	(1,344)	$	1,636	$	3,014	$	(1,251)	$	1,763

During the year ended December 31, 2025, the Company recorded a $29 million impairment charge on certain long-lived assets related to the exit of a business. Such charge principally related to customer-related intangible assets. See Note 5 for further discussion.

The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of December 31, 2025 is as follows:


Year Ending December 31,
2026	$	149
2027	139
2028	127
2029	119
2030	109
Thereafter	758
Total	$	1,401

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

QUEST DIAGNOSTICS INC Goodwill & Intangibles Disclosure

About Goodwill & Intangibles Disclosures

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