|6 Months Ended|
Jun. 30, 2023
For the purposes of impairment testing, goodwill is allocated to the Company’s reporting units as follows:
There were no goodwill impairment losses recorded during the six months ended June 30, 2023.
During the six months ended June 30, 2022, the Company conducted additional impairment testing of its goodwill related to Jupiter to determine if the carrying value of the Jupiter reporting unit exceeded its fair value.
The recoverable amount for Jupiter was based on fair value, using an income approach. Where applicable, the Company uses its comparative market multiples to corroborate discounted cash flow results. The fair value measurement was categorized as a Level 3 based on the inputs used in the valuation technique. The key assumptions used included management’s projected future cash flows for a five-year period, a terminal value, growth rate, and discount rate based on the estimated weighted average cost of capital, which incorporates the risks specific to the reporting units.
The following table details the key assumptions used in determining the recoverable amount as of June 30, 2022:
*Projected revenue growth rate averaged over the next ten years.
Based on the test results for Jupiter, the carrying amount of the reporting unit exceeded its estimated recoverable amount by $6,668 as of June 30, 2022. Consequently, an impairment loss was recorded for goodwill.
The entire disclosure for goodwill.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef