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Goodwill and Intangible Assets, Net | 12 Months Ended
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Dec. 31, 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. 2024 Goodwill Impairment Test The Company elected to forego the qualitative assessment and proceed directly to the quantitative assessment of the goodwill impairment test for our sole reporting unit. To determine the implied fair value for our single reporting unit, we used a discounted cash flow valuation approach (“income approach”). In determining the estimated fair value using the income approach, we projected future cash flows based on management’s estimates and long-term plans and applied a discount rate based on the Company’s weighted average cost of capital. This analysis required us to make judgments about revenues, expenses, fixed asset and working capital requirements, applicable tax rates, capital market assumptions and other subjective inputs. In our quantitative assessment, the most sensitive assumption related to the income approach, other than the projected cash flows, was the discount rate. A significant increase in the discount rate in isolation would result in a significantly lower fair value. The concluded fair value under the income approach exceeded carrying value of consolidated total assets by approximately $336.0 million, or 13.6%, as of October 31, 2024. As fair value was greater than carrying value under the income approach, goodwill was not impaired as of October 31, 2024. As of December 31, 2024, Evolent assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of its goodwill below its carrying amount and require an additional impairment test. The Company determined there had been no such indicators. Therefore, it was unnecessary to perform an additional goodwill impairment assessment as of December 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. 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 Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Balance, beginning of period | $ | 1,116,542 |  |  | $ | 722,774 |  |  | $ | 426,297 |
Goodwill acquired (1) | 20,809 |  |  | 395,164 |  |  | 296,597 |
Measurement period adjustment | — |  |  | 971 |  |  | — |
Goodwill disposal (2) | — |  |  | (2,363) |  |  | — |
Foreign currency translation | (31) |  |  | (4) |  |  | (120) |
Balance, end of period | $ | 1,137,320 |  |  | $ | 1,116,542 |  |  | $ | 722,774 |
———————— (1)Goodwill acquired from the addition of IPG in August 2022, NIA in January 2023 and Machinify in August 2024 as described in Note 4. (2)Goodwill written-off upon disposal of non-strategic assets. Intangible Assets, Net Details of our intangible assets (in thousands, except weighted-average useful lives) are presented below:
| December 31, 2024 |  | December 31, 2023
| Weighted- Average Remaining Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted- Average Remaining Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
Corporate trade name | 0.0 |  | $ | 51,965 |  |  | $ | 51,965 |  |  | $ | — |  |  | 1.0 |  | $ | 51,965 |  |  | $ | 30,288 |  |  | $ | 21,677 |
Customer relationships | 13.5 |  | 806,668 |  |  | 186,377 |  |  | 620,291 |  |  | 14.5 |  | 806,668 |  |  | 139,150 |  |  | 667,518 |
Technology | 3.0 |  | 169,715 |  |  | 117,924 |  |  | 51,791 |  |  | 3.8 |  | 162,015 |  |  | 101,566 |  |  | 60,449 |
Below market lease, net | 0.0 |  | 1,218 |  |  | 1,218 |  |  | — |  |  | 0.0 |  | 1,218 |  |  | 1,218 |  |  | — |
Provider network contracts | 4.8 |  | 26,522 |  |  | 18,448 |  |  | 8,074 |  |  | 1.1 |  | 18,054 |  |  | 15,689 |  |  | 2,365 |
Total intangible assets, net |  |  | $ | 1,056,088 |  |  | $ | 375,932 |  |  | $ | 680,156 |  |  |  |  | $ | 1,039,920 |  |  | $ | 287,911 |  |  | $ | 752,009 |
Amortization expense related to intangible assets was $88.1 million, $91.0 million and $35.2 million for the years ended December 31, 2024, 2023 and 2022 respectively. Future estimated amortization of intangible assets (in thousands) as of December 31, 2024, is as follows:
2025 | $ | 66,203 |
2026 | 65,953 |
2027 | 63,211 |
2028 | 51,277 |
2029 | 48,864 |
Thereafter | 384,648 |
Total future amortization of intangible assets | $ | 680,156 |
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 were 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 year ended December 31, 2024 that require an impairment test for our intangible assets.

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