Goodwill and Other Intangible Assets:The following table shows changes in the carrying amount of Goodwill (in millions):
| | | | | |
| | Amount |
| Goodwill as of December 31, 2022 | $ | 1,263.2 | |
| Acquisitions | 18.1 | |
| |
| |
| Goodwill as of December 31, 2023 | 1,281.3 | |
| Acquisitions | 2.7 | |
| |
| Goodwill as of December 31, 2024 | 1,284.0 | |
| Acquisitions | 33.6 | |
| |
| Goodwill as of December 31, 2025 | $ | 1,317.6 | |
Goodwill increased in 2023, 2024, and 2025 as a result of our acquisitions of inpatient rehabilitation operations.
We performed impairment reviews as of October 1, 2025, 2024, and 2023 and concluded no Goodwill impairment existed. As of December 31, 2025, we had no accumulated impairment losses related to Goodwill.
The following table provides information regarding our other intangible assets (in millions):
| | | | | | | | | | | | | | | | | |
| | Gross Carrying Amount | | Accumulated Amortization | | Net |
| Certificates of need: | | | | | |
| 2025 | $ | 137.0 | | | $ | (54.9) | | | $ | 82.1 | |
| 2024 | 131.4 | | | (49.0) | | | 82.4 | |
| Licenses: | | | | | |
| 2025 | $ | 65.6 | | | $ | (57.5) | | | $ | 8.1 | |
| 2024 | 65.7 | | | (56.4) | | | 9.3 | |
| Noncompete agreements: | | | | | |
| 2025 | $ | 64.9 | | | $ | (61.7) | | | $ | 3.2 | |
| 2024 | 66.5 | | | (63.4) | | | 3.1 | |
| Trade name - Encompass: | | | | | |
| 2025 | $ | 135.2 | | | $ | — | | | $ | 135.2 | |
| 2024 | 135.2 | | | — | | | 135.2 | |
| Trade names - all other: | | | | | |
| 2025 | $ | 38.9 | | | $ | (24.5) | | | $ | 14.4 | |
| 2024 | 39.6 | | | (23.6) | | | 16.0 | |
| Internal-use software: | | | | | |
| 2025 | $ | 245.7 | | | $ | (180.9) | | | $ | 64.8 | |
| 2024 | 214.4 | | | (163.3) | | | 51.1 | |
| Market access assets: | | | | | |
| 2025 | $ | 13.2 | | | $ | (12.7) | | | $ | 0.5 | |
| 2024 | 13.2 | | | (12.5) | | | 0.7 | |
| Total intangible assets: | | | | | |
| 2025 | $ | 700.5 | | | $ | (392.2) | | | $ | 308.3 | |
| 2024 | 666.0 | | | (368.2) | | | 297.8 | |
Amortization expense for other intangible assets is as follows (in millions):
| | | | | | | | | | | | | | | | | |
| | For the Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Amortization expense | $ | 28.3 | | | $ | 28.8 | | | $ | 32.5 | |
Total estimated amortization expense for our other intangible assets for the next five years is as follows (in millions):
| | | | | |
| Year Ending December 31, | Estimated
Amortization Expense |
| 2026 | $ | 27.4 | |
| 2027 | 20.2 | |
| 2028 | 13.6 | |
| 2029 | 11.6 | |
| 2030 | 10.6 | |
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.