Annual report pursuant to Section 13 and 15(d)

Goodwill

v3.24.1
Goodwill
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
Note I – Goodwill

The changes in the carrying amount of goodwill were as follows:
Gross Goodwill Accumulated Impairment Net Goodwill
Balance of goodwill as of December 31, 2021
 $ 96,314  $ —  $ 96,314 
Goodwill arising from the Space NV acquisition
 17,313  —  17,313 
Impairment expense —  (49,916) (49,916)
Change arising from impact of foreign currency
 907  —  907 
Balance of goodwill as of December 31, 2022
 $ 114,534  $ (49,916) $ 64,618 
Measurement period adjustment - Space NV 545  —  545 
Change arising from impact of foreign currency 808  (214) 594 
Balance of goodwill as of December 31, 2023
 $ 115,887  $ (50,130) $ 65,757 

During the year ended December 31, 2023, the Company settled the net working capital adjustment with the seller and finalized its settlement with Redu Space Service SA/NV (“RSS”) related to the transfer of all maintenance and operations services (“M&O Services”) in April 2022 from Redu Operation Services SA/NV (“ROS”) to RSS, including personnel, and the termination of the subcontractor relationship between ROS and RSS. These settlements resulted in non-cash measurement period adjustments to the estimate of amounts receivable from the seller, accounts receivable, prepaid and other assets, accounts payable, accrued expenses, other current liabilities with a corresponding adjustment to goodwill as of the acquisition date.

There was no impairment recognized related to goodwill during the year ended December 31, 2023. During the year ended December 31, 2022, the Company recognized impairment expense of $96.6 million, of which $49.9 million related to goodwill on the Mission Solutions reporting unit. Please refer to Note T – Impairment Expense for additional information related to this impairment.