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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the year ended December 31, 2024 are as follows:
(in millions) | Year Ended December 31, 2024
Beginning balance | $ | 287.4 |
Goodwill impairment | (0.8) |
Translation adjustments | (0.3) |
Ending balance | $ | 286.3 |
During the fourth quarter of 2024, UnitedHealthcare announced that it would no longer provide coverage for certain multi-gene panel pharmacogenetic tests, including the Company's GeneSight test, under its commercial, individual exchange, and certain managed Medicaid plans. The change took effect for commercial and individual exchange plans on January 1, 2025, and is expected to take effect for impacted managed Medicaid plans during the first half of 2025. As a result, the Company performed an quantitative impairment test for the goodwill for the Pharmacogenomics reporting unit during the fourth quarter of 2024. The Company also elected to perform a quantitative impairment review of goodwill for its Women's Health and International reporting units. The Company estimated the fair values of each reporting unit using both the market approach, applying an observable multiple of revenue based on guideline public companies, and the income approach, discounting future cash flows based on management's expectations of the current and future operating environments for each reporting unit. The Company corroborated the reasonableness of the estimated reporting unit fair values by reconciling the values to its enterprise value and market capitalization. The goodwill balance at each reporting unit was determined to not be impaired as of December 31, 2024. During the second quarter of 2024, as a result of the disposition of the EndoPredict business, the Company recognized a goodwill impairment charge of $0.8 million for the goodwill allocated to the EndoPredict business within the Company's International reporting unit. The goodwill impairment charge is reflected in Goodwill and long-lived asset impairment charges in the Consolidated Statements of Operations. See Note 17 for further discussion. The Company did not record an impairment of goodwill for the years ended December 31, 2023 and 2022. Intangible Assets The following tables summarize the amounts reported as intangible assets:
(in millions) | Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Weighted-Average Useful Life (in Years) |  | Weighted-Average Remaining Useful Life (in Years)
At December 31, 2024 |  |  |  |  |  |  |  |  |
Developed technologies | $ | 560.1 |  |  | $ | (326.5) |  |  | $ | 233.6 |  |  | 10.6 |  | 3.6
Internal-use software | 1.8 |  |  | (0.7) |  |  | 1.1 |  |  | 3.0 |  | 1.9
Customer relationships | 1.6 |  |  | (0.3) |  |  | 1.3 |  |  | 10.0 |  | 7.8
Trademarks | 6.1 |  |  | (1.3) |  |  | 4.8 |  |  | 10.0 |  | 7.8
Internal-use software (in-process) | 21.6 |  |  | — |  |  | 21.6 |  |  |  |  |
Total intangible assets | $ | 591.2 |  |  | $ | (328.8) |  |  | $ | 262.4 |  |  |  |  |
(in millions) | Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Weighted-Average Useful Life (in Years) |  | Weighted-Average Remaining Useful Life (in Years)
At December 31, 2023 |  |  |  |  |  |  |  |  |
Developed technologies | $ | 626.1 |  |  | $ | (295.3) |  |  | $ | 330.8 |  |  | 14.4 |  | 8.1
Internal-use software | 0.8 |  |  | (0.1) |  |  | 0.7 |  |  | 3.0 |  | 2.5
Customer relationships | 1.6 |  |  | (0.2) |  |  | 1.4 |  |  | 10.0 |  | 8.8
Trademarks | 6.1 |  |  | (0.7) |  |  | 5.4 |  |  | 10.0 |  | 8.8
Internal-use software (in-process) | 11.2 |  |  | — |  |  | 11.2 |  |  |  |  |
Total intangible assets | $ | 645.8 |  |  | $ | (296.3) |  |  | $ | 349.5 |  |  |  |  |
As noted above, UnitedHealthcare announced that it would longer provide coverage for certain multi-gene panel pharmacogenetic tests, including the Company's GeneSight test, which triggered the Company to perform a recoverability test for the Pharmacogenomics asset group during the fourth quarter of 2024. The Company performed the recoverability test by comparing the carrying value of the asset group to its estimated undiscounted future cash flows. The analysis indicated that the carrying value exceeded the recoverable amount, requiring the Company to determine the fair value of the asset group. The fair value of the developed technology was determined using a discounted cash flow model. The primary assumptions used in the discounted cash flow model included projected revenue and profitability associated with the developed technology based on management's forecast and a discount rate reflective of the risk-adjusted cost of capital of 10%. As the carrying value for the developed technology asset exceeded the relative fair value, the Company recognized an impairment charge of $43.0 million during the year ended December 31, 2024, which is included in "Goodwill and long-lived asset impairment charges" in the Consolidated Statements of Operations. The impairment reduced the carrying value of the developed technology to its estimated fair value of $89.0 million as of the impairment date. The Company determined there was no impairment of long-lived intangible assets for the years ended December 31, 2023 and 2022. In recent years, the Company has invested in the development of internal-use software. As of December 31, 2024, the Company has capitalized $21.6 million related to projects under development. The Company expects the majority of the current in-process internal-use software projects to be completed in fiscal year 2025. As of December 31, 2024, the Company's developed technologies have estimated remaining useful lives ranging between 5 and 12 years. The Company's acquired trademarks and customer relationships have an estimated remaining useful life of approximately 8 years as of December 31, 2024. The Company's internal-use software assets are amortized over the estimated useful life of the software, which is generally 3 years. The Company recorded amortization during the respective periods for intangible assets as follows:
| Years Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Amortization of intangible assets | $ | 42.1 |  |  | $ | 42.8 |  |  | $ | 41.1 |
Future amortization expense of intangible assets as of December 31, 2024 is estimated to be as follows (in millions):
Years Ended December 31, | Amortization Expense
2025 | $ | 37.4 |
2026 | 37.2 |
2027 | 36.8 |
2028 | 36.7 |
2029 | 36.7 |
Thereafter | 77.6 |
Total | $ | 262.4 |

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