Pediatrix Medical Group, Inc. Goodwill & Intangibles Disclosure
7. Goodwill and Intangible Assets:
The changes in the carrying amount of the Company's goodwill consist of the following (in thousands):
|
|
Goodwill Gross |
|
|
Accumulated Impairment Losses |
|
|
Goodwill Net |
|
|||
Balance at December 31, 2023 |
|
$ |
1,532,478 |
|
|
$ |
(148,312 |
) |
|
$ |
1,384,166 |
|
Acquisitions |
|
|
9,084 |
|
|
|
— |
|
|
|
9,084 |
|
Impairment loss |
|
|
— |
|
|
|
(150,644 |
) |
|
|
(150,644 |
) |
Balance at December 31, 2024 |
|
|
1,541,562 |
|
|
|
(298,956 |
) |
|
|
1,242,606 |
|
Acquisitions |
|
|
18,126 |
|
|
|
— |
|
|
|
18,126 |
|
Balance at December 31, 2025 |
|
$ |
1,559,688 |
|
|
$ |
(298,956 |
) |
|
$ |
1,260,732 |
|
Goodwill is tested for impairment on at least an annual basis, in accordance with the subsequent measurement provisions of the accounting guidance for goodwill. Consistent with prior years, the Company performed its annual impairment test in the third quarter of 2025 and determined that goodwill was not impaired.
During the second quarter of 2024 and the fourth quarter of 2023, the Company experienced a triggering event, due to a sustained decline in its stock price and a market capitalization below the Company's book equity value.
As a result, the Company performed an interim goodwill impairment assessment. This assessment resulted in a non-cash impairment charge of $126.4 million and $125.0 million during 2024 and 2023, respectively, representing the amount by which the Company's book value exceeded its implied fair value, based on its market capitalization plus an estimated control premium. Recognition of this non-cash charge against goodwill resulted in a tax benefit which generated an additional deferred tax asset and incremental non-cash impairment charge of $24.2 million and $23.3 million during 2024 and 2023, respectively. The total non-cash impairment charge was $150.6 million and $148.3 million for the years ended December 31, 2024 and 2023, respectively. A 1% change in the control premium used would have impacted the non-cash impairment charge by approximately $7.7 million and $9.0 million during 2024 and 2023, respectively.
Intangible assets, net, consist of the following (in thousands):
|
|
December 31, 2025 |
|
|||||||||
|
|
Gross Carrying Value |
|
|
Accumulated Amortization |
|
|
Net Carrying Value |
|
|||
Physician and hospital agreements |
|
$ |
60,232 |
|
|
$ |
(50,813 |
) |
|
$ |
9,419 |
|
Other technology |
|
|
14,466 |
|
|
|
(7,023 |
) |
|
|
7,443 |
|
|
|
$ |
74,698 |
|
|
$ |
(57,836 |
) |
|
$ |
16,862 |
|
|
|
December 31, 2024 |
|
|||||||||
|
|
Gross Carrying Value |
|
|
Accumulated Amortization |
|
|
Net Carrying Value |
|
|||
Physician and hospital agreements |
|
$ |
66,190 |
|
|
$ |
(61,606 |
) |
|
$ |
4,584 |
|
Other technology |
|
|
9,603 |
|
|
|
(2,592 |
) |
|
|
7,011 |
|
|
|
$ |
75,793 |
|
|
$ |
(64,198 |
) |
|
$ |
11,595 |
|
Amortization expense for intangible assets was $5.7 million, $7.1 million and $5.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. During the year ended December 31, 2025, the Company recorded intangible assets related to acquisitions totaling $6.1 million, consisting of physician and hospital agreements. The weighted-average amortization period for the acquired intangible assets is approximately 14 years.
Amortization expense for existing intangible assets for the next five years is expected to be as follows (in thousands):
2026 |
|
$ |
6,433 |
|
2027 |
|
|
2,718 |
|
2028 |
|
|
1,774 |
|
2029 |
|
|
914 |
|
2030 |
|
|
811 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 10, 2017 | |
| 2015 | Feb 11, 2016 | |
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.