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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | 4. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023 are as follows (in millions):
Balance, beginning balance |  | 2024 |  |  | 2023 |
Goodwill |  | $ | 6,772 |  |  | $ | 6,980 |
Accumulated impairment losses |  |  | (2,814 | ) |  |  | (2,814 | )
|  |  | 3,958 |  |  |  | 4,166 |
Goodwill acquired as part of acquisitions during current year |  |  | 24 |  |  |  | 23 |
Goodwill allocated to hospitals divested or held-for-sale |  |  | (193 | ) |  |  | (231 | )
Balance, end of year |  |  |  |  |  |
Goodwill |  |  | 6,603 |  |  |  | 6,772 |
Accumulated impairment losses |  |  | (2,814 | ) |  |  | (2,814 | )
|  | $ | 3,789 |  |  | $ | 3,958 |
Goodwill allocated to hospitals divested or held-for-sale reflects the net activity of changing the classification of entities as held-and-used or held-for-sale during the year ended December 31, 2024. Goodwill is allocated to each identified reporting unit, which is defined as an operating segment or one level below the operating segment (referred to as a component of the entity). Management has determined that the Company’s operating segment meets the criteria to be classified as a reporting unit. At December 31, 2024, after giving effect to the 2024 acquisition and divestiture activity, the Company had approximately $3.8 billion of goodwill recorded. Goodwill is evaluated for impairment annually and when an event occurs or circumstances change that, more likely than not, reduce the fair value of the reporting unit below its carrying value. The Company performed its last annual goodwill impairment evaluation during the fourth quarter of 2024 using an October 31, 2024 measurement date, which indicated no impairment. The Company estimates the fair value of the reporting unit using both a discounted cash flow model as well as a market multiple model. The cash flow forecasts are adjusted by an appropriate discount rate based on the Company’s estimate of a market participant’s weighted-average cost of capital. These models are both based on the Company’s best estimate of future revenues and operating expenses and are reconciled to the Company’s consolidated market capitalization, with consideration of the amount a potential acquirer would be required to pay, in the form of a control premium, in order to gain sufficient ownership to set policies, direct operations and control management decisions. The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for the reporting unit utilizing known and estimated inputs at the evaluation date. Some of those inputs include, but are not limited to, the most recent price of the Company’s common stock and fair value of long-term debt, the Company’s recent financial results, estimates of future revenue and expense growth, estimated market multiples, expected capital expenditures, income tax rates, costs of invested capital and a discount rate. Future estimates of fair value could be adversely affected if the actual outcome of one or more of the assumptions described above changes materially in the future, including as a result of any decline in the Company’s stock price and the fair value of its long-term debt, an increase in the volatility of the Company’s stock price and the fair value of its long-term debt, lower-than-expected hospital volumes and/or net operating revenues, higher market interest rates, increased operating costs or other adverse impacts on the Company’s financial results. Such changes impacting the calculation of fair value could result in a material impairment charge in the future. The determination of fair value of the Company’s hospital operations reporting unit as part of its goodwill impairment measurement represents a Level 3 fair value measurement in the fair value hierarchy due to its use of internal projections and unobservable measurement inputs. Intangible Assets During the years ended December 31, 2024 and 2023, the Company acquired goodwill as well as definite-lived intangible assets for the acquisition of assembled workforces. The gross carrying amount of the Company’s other intangible assets subject to amortization was $28 million and $27 million at December 31, 2024 and 2023, respectively, and the net carrying amount was $15 million and $20 million at December 31, 2024 and 2023, respectively. The carrying amount of the Company’s other intangible assets not subject to amortization was $38 million and $41 million at December 31, 2024 and 2023, respectively. Other intangible assets are included in other assets, net on the Company’s consolidated balance sheets. The Company’s intangible assets include an assembled workforce and various contract-based intangible assets related to operating licenses, management contracts, or non-compete agreements entered into in connection with prior acquisitions. The weighted-average remaining amortization period for the intangible assets subject to amortization is approximately two years. There are no expected residual values related to these intangible assets. Amortization expense on these intangible assets was $9 million, $5 million and $1 million during the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense on intangible assets is estimated to be $9 milli on, $5 million and $1 million in 2025, 2026 and 2027, respectively. The gross carrying amount of capitalized software for internal use was approximately $982 million and $959 million at December 31, 2024 and 2023, respectively, and the net carrying amount was approximately $119 million and $144 million at December 31, 2024 and 2023, respectively. The estimated amortization period for capitalized internal-use software is generally three years. There is no expected residual value for capitalized internal-use software. At December 31, 2024, there were approximately $90 million of capitalized costs for internal-use software that is currently in the development stage and will begin amortization once the software project is complete and ready for its intended use. Amortization expense on capitalized internal-use software was $80 million, $80 million and $85 million during the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense on capitalized internal-use software is estimated to be $51 million in 2025, $39 million in 2026, $17 million in 2027, $10 million in 2028, $2 million in 2029 and less than $1 million thereafter.

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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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