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Goodwill and Intangible assets, net | 9 Months Ended
--- | ---
Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible assets, net | 6. Goodwill and Intangible assets, net The changes in the net carrying amount of goodwill are as follows (in millions):
| Total
Balance as of December 31, 2024 | $ | 3,212 |
Impairment(1) | (2,321) |
Other | (5) |
Balance at September 30, 2025 | $ | 886 |
(1)Amount relates to non-cash goodwill impairment charges. Goodwill for each reporting unit is tested for impairment annually as of October 1, or more frequently if there are indicators that a reporting unit may be impaired. During the fourth quarter of 2024, the Company performed a quantitative assessment in accordance with FASB Accounting Standards Codification ("ASC") 350. The Company determined the fair value of its reporting units exceeded the carrying value as of October 1, 2024, and therefore, goodwill was not impaired. During the second quarter of 2025, we evaluated the macroeconomic, industry and market conditions, both current and future expected financial performance, and relevant entity-specific events for each of the reporting units to determine whether there were any interim indicators of impairment. Based on these considerations, we concluded there were indicators of impairment in the Health Solutions reporting unit and the Company recorded a non-cash goodwill impairment charge of $983 million, which is included in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2025. During the third quarter of 2025, we evaluated for interim indicators of impairment and concluded the sustained decline in our stock price coupled with a reduction in future expected financial performance were indicators of impairment. The reduction of future expected financial performance is driven by lower Net Commercial Activity (which reflects items such as client wins and losses), including lower than expected bookings and larger than anticipated losses from contract renewals which is expected to impact revenue growth. We define client wins as sales to new clients and sales of new solutions to existing clients. We define client losses as instances where clients do not renew or terminate their arrangements in relation to individual solutions or all of the solutions that we provide. As such, the Company recorded non-cash goodwill impairment charges of $1,293 million in the Health Solutions reporting unit and $45 million in the Wealth Solutions reporting unit which are included in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended September 30, 2025. The Company determines the fair value of the reporting units by using a combination of the present value of expected future cash flows and a market approach based on earnings multiple data from peer companies, using unobservable level 3 inputs. If an impairment is identified, an impairment is recorded by the amount that the carrying value exceeds the fair value for each reporting unit as a non-recurring fair value measurement. While the future cash flows are consistent with those that are used in our internal planning process inclusive of long-term growth assumptions, estimating cash flows requires significant judgment. Future changes to our projected cash flows can vary from the cash flows eventually realized, which may have a material impact on the outcomes of future goodwill impairment tests. The Company uses a weighted average cost of capital that represents the blended average required rate of return for equity and debt capital based on observed market return data and company-specific risk factors. Other significant assumptions utilized included the Company’s projections of expected future revenues and EBITDA margin, which is defined as earnings before interest, taxes, depreciation and intangible amortization as a percentage of revenue. In connection with the impairment taken in the third quarter of 2025, we utilized a discount rate of 11.25% and a long-term growth rate of 3.5% for our Health Solutions and Wealth Solutions reporting units in the determination of fair value. A hypothetical 50-basis point decrease in the long-term growth rate could have resulted in an additional goodwill impairment of $125 million in the Company’s Health Solutions reporting unit and $10 million in the Company's Wealth Solutions reporting unit. A hypothetical 25-basis point increase in the discount rate could have resulted in an additional goodwill impairment of $100 million in the Company’s Health Solutions reporting unit and $10 million in the Company's Wealth Solutions reporting unit. At September 30, 2025, our Health Solutions and Wealth Solutions reporting units had $803 million and $83 million of goodwill, respectively. Intangible assets by asset class are as follows (in millions):
| September 30, 2025 |  | December 31, 2024
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer-related and contract based intangibles | $ | 3,192 |  |  | $ | 903 |  |  | $ | 2,289 |  |  | $ | 3,192 |  |  | $ | 742 |  |  | $ | 2,450 |
Technology related intangibles | 230 |  |  | 162 |  |  | 68 |  |  | 230 |  |  | 133 |  |  | 97 |
Trade name | 408 |  |  | 121 |  |  | 287 |  |  | 408 |  |  | 100 |  |  | 308 |
Total | $ | 3,830 |  |  | $ | 1,186 |  |  | $ | 2,644 |  |  | $ | 3,830 |  |  | $ | 975 |  |  | $ | 2,855 |
Amortization expense from finite-lived intangible assets for the three months ended September 30, 2025 and 2024 was $70 million and $70 million, respectively. Amortization expense from finite-lived intangible assets for the nine months ended September 30, 2025 and 2024 was $211 million and $210 million, respectively. Amortization expense from finite-lived intangible assets was recorded in Depreciation and intangible amortization in the Condensed Consolidated Statements of Comprehensive Income (Loss). The following table reflects intangible assets net carrying amount and weighted-average remaining useful lives as of September 30, 2025 and December 31, 2024 (in millions, except for years):
| September 30, 2025 |  | December 31, 2024
| Net Carrying Amount |  | Weighted-Average Remaining Useful Lives |  | Net Carrying Amount |  | Weighted-Average Remaining Useful Lives
Intangible assets: |  |  |  |  |  |  |
Customer-related and contract-based intangibles | $ | 2,289 |  |  | 10.7 |  | $ | 2,450 |  |  | 11.5
Technology-related intangibles | 68 |  |  | 1.8 |  | 97 |  |  | 2.6
Trade name | 287 |  |  | 10.7 |  | 308 |  |  | 11.4
Total | $ | 2,644 |  |  |  |  | $ | 2,855 |  |  |
Subsequent to September 30, 2025, the annual amortization expense is expected to be as follows (in millions):
| Customer-Related and Contract Based Intangibles |  | Technology Related Intangibles |  | Trade Name Intangibles |  | Total
2025 (October - December) | $ | 53 |  |  | $ | 10 |  |  | $ | 7 |  |  | $ | 70 |
2026 | 214 |  |  | 38 |  |  | 27 |  |  | 279 |
2027 | 214 |  |  | 19 |  |  | 27 |  |  | 260 |
2028 | 214 |  |  | 1 |  |  | 27 |  |  | 242 |
2029 | 214 |  |  | — |  |  | 27 |  |  | 241 |
Thereafter | 1,380 |  |  | — |  |  | 172 |  |  | 1,552 |
Total amortization expense | $ | 2,289 |  |  | $ | 68 |  |  | $ | 287 |  |  | $ | 2,644 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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