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Goodwill and Intangible Assets, Net
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Goodwill

Goodwill has an estimated indefinite life and is not amortized; rather, it is reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Our annual goodwill impairment review occurs on October 31 of each fiscal year. We evaluate qualitative factors that could cause us to believe the estimated fair value of our reporting unit may be lower than the carrying value and trigger a quantitative assessment, including, but not limited to (i) macroeconomic conditions, (ii) industry and market considerations, (iii) our overall financial
performance, including an analysis of our current and projected cash flows, revenues and earnings, (iv) a sustained decrease in share price and (v) other relevant entity-specific events including changes in management, strategy, partners, or litigation.

We did not identify any qualitative factors that would trigger a quantitative goodwill impairment test for the six months ended June 30, 2024. We will perform our annual impairment test on October 31, 2024.

2023 Goodwill Impairment Test

On October 31, 2023, the Company performed its annual goodwill impairment review for fiscal year 2023. In addition, the Company underwent organizational changes which required a reassessment of reporting units. As a result, the Company determined it has one reporting unit due to the economic similarity of the services provided to our partners. Based on our qualitative assessment, we did not identify sufficient indicators of impairment that would suggest the fair value of our reporting unit was below its respective carrying values. As a result, a quantitative goodwill impairment analysis was not required.

Change in Goodwill

The following table summarizes the changes in the carrying amount of goodwill, for the periods presented (in thousands):

For the Six Months Ended June 30,
20242023
Balance, beginning of period$1,116,542 $722,774 
Goodwill acquired (1)
— 395,164 
Measurement period adjustment — (391)
Foreign currency translation(4)9 
Balance, end of period$1,116,538 $1,117,556 
————————
(1)Goodwill acquired from the addition of NIA in January 2023

Intangible Assets, Net

Details of our intangible assets (in thousands, except weighted-average useful lives) are presented below:

June 30, 2024December 31, 2023
  Weighted- Average Remaining Useful LifeGross Carrying AmountAccumulated AmortizationNet Carrying ValueWeighted- Average Remaining Useful LifeGross Carrying AmountAccumulated AmortizationNet Carrying Value
Corporate trade name0.5$51,965 $41,457 $10,508 1.0$51,965 $30,288 $21,677 
Customer relationships14.0806,668 162,744 643,924 14.5806,668 139,150 667,518 
Technology3.3162,015 109,424 52,591 3.8162,015 101,566 60,449 
Below market lease, net0.01,218 1,218 — 0.01,218 1,218 — 
Provider network contracts2.021,244 16,977 4,267 1.118,054 15,689 2,365 
Total intangible assets, net$1,043,110 $331,820 $711,290 $1,039,920 $287,911 $752,009 

Amortization expense related to intangible assets was $22.0 million and $44.0 million for the three and six months ended June 30, 2024, respectively and $24.0 million and $45.1 million for the three and six months ended June 30, 2023, respectively.
Future estimated amortization of intangible assets (in thousands) as of June 30, 2024, is as follows:

2024$43,416 
202563,619 
202663,369 
202760,628 
202848,693 
Thereafter431,565 
Total future amortization of intangible assets$711,290 

As part of the organizational changes as a result of growth in our value-based specialty care business, we will sunset several corporate trade names and replace them with Evolent signifying our adoption and launch of a unified brand. As a result, we accelerated amortization such that all corporate trade names will be fully amortized by December 2024.

Intangible assets are reviewed for impairment if circumstances indicate the Company may not be able to recover the assets’ carrying value. We did not identify any circumstances during the three and six months ended June 30, 2024 that require an impairment test for our intangible assets.