GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill is not amortized, but is evaluated for impairment annually in the fourth quarter of the fiscal year, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.
Circumstances that could trigger an interim impairment test include: a significant adverse change in the business climate or legal factors, an adverse action or assessment by a regulator, unanticipated competition, the loss of key personnel, a change in reporting units, the likelihood that a reporting unit or significant portion of a reporting unit will be sold or otherwise disposed of, and the results of testing for recoverability of a significant asset group within a reporting unit.
A qualitative impairment analysis was performed in the fourth quarter of 2025, 2024, and 2023, to assess whether it is more likely than not that the fair value of the Company’s reporting units are less than their carrying value. The Company assessed relevant events and circumstances including macroeconomic conditions, industry and market considerations, overall financial performance, entity-specific events, and changes in the Company’s stock price. The Company determined that there was no goodwill impairment in 2025, 2024, or 2023.
The determination of fair value for acquisitions and the allocation of that value requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to, the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which the Company competes; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization, and capital expenditures. Actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting unit, the amount of the goodwill impairment charge, or both. The Company did not recognize any accumulated impairment losses at the beginning of the period.
Changes in the carrying amount of goodwill consist of the following activity for the years ended December 31, 2025, 2024, and 2023 (in thousands):
| | | | | | | | |
| | Amount |
| Balance at December 31, 2022 | | $ | 1,533,424 | |
| Acquisitions | | 6,998 | |
| Purchase accounting adjustments | | (176) | |
| Balance at December 31, 2023 | | $ | 1,540,246 | |
| Acquisitions | | — | |
| Purchase accounting adjustments | | — | |
| Balance at December 31, 2024 | | $ | 1,540,246 | |
| Acquisitions | | 65,684 | |
| Purchase accounting adjustments | | 813 | |
| Balance at December 31, 2025 | | $ | 1,606,743 | |
The carrying amount and accumulated amortization of intangible assets consist of the following as of December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Gross intangible assets: | | | |
| Referral sources | $ | 551,188 | | | $ | 514,388 | |
| Trademarks/names | 46,808 | | | 39,136 | |
| Other amortizable intangible assets | 985 | | | 985 | |
| Total gross intangible assets | 598,981 | | | 554,509 | |
| | | |
| Accumulated amortization: | | | |
| Referral sources | (263,907) | | | (230,371) | |
| Trademarks/names | (25,170) | | | (22,599) | |
| Other amortizable intangible assets | (726) | | | (529) | |
| Total accumulated amortization | (289,803) | | | (253,499) | |
| Total intangible assets, net | $ | 309,178 | | | $ | 301,010 | |
Amortization expense for intangible assets was $36.9 million, $34.4 million, and $34.2 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Expected future amortization expense for intangible assets recorded at December 31, 2025, is as follows (in thousands):
| | | | | |
| Amount |
| 2026 | $ | 37,078 | |
| 2027 | 36,937 | |
| 2028 | 36,887 | |
| 2029 | 36,881 | |
| 2030 | 22,745 | |
| Thereafter | 138,650 | |
| Total | $ | 309,178 | |