SELECT MEDICAL HOLDINGS CORPSEM

SELECT MEDICAL HOLDINGS CORP Goodwill & Intangibles Disclosure

10-KFiled Feb 19, 20262 min read
Intangible Assets
Goodwill
The following table shows changes in the carrying amounts of goodwill by reporting unit for the years ended December 31, 2024 and 2025:
 Critical Illness Recovery HospitalRehabilitation HospitalOutpatient
Rehabilitation		Total
 (in thousands)
Balance as of January 1, 2024$1,157,802 $458,340 $667,283 $2,283,425 
Acquisition of businesses8,000 38,367 1,666 48,033 
Measurement period adjustment— 440 — 440 
Balance as of December 31, 20241,165,802 497,147 668,949 2,331,898 
Acquisition of businesses7,773 20,450 781 29,004 
Balance as of December 31, 2025$1,173,575 $517,597 $669,730 $2,360,902 
Identifiable Intangible Assets
The following table provides the gross carrying amounts, accumulated amortization, and net carrying amounts for the Company’s identifiable intangible assets:
 December 31,
 20242025
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
 (in thousands)
Indefinite-lived intangible assets:      
Trademarks$61,798 $— $61,798 $61,798 $— $61,798 
Certificates of need26,393 — 26,393 26,318 — 26,318 
Accreditations1,775 — 1,775 1,775 — 1,775 
Finite-lived intangible assets:     
Non-compete agreements31,735 (18,518)13,217 29,133 (18,224)10,909 
Total identifiable intangible assets$121,701 $(18,518)$103,183 $119,024 $(18,224)$100,800 
The Company’s accreditations and trademarks have renewal terms and the costs to renew these intangible assets are expensed as incurred. At December 31, 2025, the accreditations and trademarks have a weighted average time until next renewal of 1.5 years and 5.4 years, respectively.
The Company’s finite-lived intangible assets amortize over their estimated useful lives. Amortization expense was $1.6 million for the years ended December 31, 2023, 2024, and 2025.
Estimated amortization expense of the Company’s finite-lived intangible assets for each of the five succeeding years is as follows:
20262027202820292030
(in thousands)
Amortization expense$1,613 $1,613 $1,613 $1,613 $1,607 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 20, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Feb 23, 2017
2015Feb 26, 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.

Other Available Disclosures

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