Company: MYGN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000899923-25-000086
Chunk: 72

Company: MYRIAD GENETICS INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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$(344.1)$138.7 Internal-use software$21.9 $(1.9)$20.0 Trademarks$2.1 $(1.6)$0.5 Licensed technologies$5.3 $(0.2)$5.1 Internal-use software (in-process)$5.6 $— $5.6 Total intangible assets$517.7 $(347.6)$170.1 (1)Net of $82.0 million in impairment expense recognized in the three months ended June 30, 2025.  See the discussion below for further details regarding the impairment of intangible assets below.  (in millions)GrossCarryingAmountAccumulatedAmortizationNetAt December 31, 2024Developed technologies$560.1 $(326.5)$233.6 Internal-use software1.8(0.7)$1.1 Customer relationships1.6(0.3)1.3 Trademarks6.1(1.3)4.8 Internal-use software (in-process)21.6— $21.6 Total intangible assets$591.2 $(328.8)$262.4 As noted above, the Company experienced a sustained decline in its market capitalization, which triggered the Company to perform a recoverability test for certain of its asset groups during the quarter.  The Company performed the recoverability test by comparing the carrying value of each asset group to its estimated undiscounted future cash flows. The analysis indicated that the carrying value exceeded the recoverable amounts for the Company's Pharmacogenomics and Gateway asset groups, requiring the Company to determine the fair value of each asset group. As a result of the tests performed, the Company recognized impairment expense totaling $82.0 million related to the Pharmacogenomics and Gateway intangible asset groups.  The fair value of the Pharmacogenomics developed technology was determined using a discounted cash flow model and the fair value of the Gateway intangible assets was determined using a discounted cash flow model and relief from royalty models.  The primary assumptions used in the discounted cash flow models 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 17% and 16% for the Pharmacogenomics and Gateway intangible asset groups, respectively. The primary assumptions used in the relief from royalty models were projected revenue and royalty