Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

We test each of our reporting units for goodwill impairment annually at October 1st, or upon a triggering event, in accordance with ASC Topic 350, “Intangibles – Goodwill and Other.” During the three months ended June 30, 2022, we recorded a non-cash goodwill impairment charge of $26.4 million in our Real Estate Investments segment for the Telford Homes business. The charge is attributable to the effects of elevated inflation on construction, materials and labor costs. This increased Telford Homes’ risk as the contractor and reduced the profitability of current projects. We are evaluating changes in Telford Homes’ investment model to limit the impact of inflation and other market changes on future projects. The requirement to test certain assets for impairment was triggered as a result of changing market conditions as of June 30, 2022, which resulted in the impairment to the goodwill balance associated with the Telford Homes reporting unit. No other Telford Homes assets were deemed impaired as their current value was deemed recoverable. (see note 6 for additional information).

The following table summarizes our change in carrying amount of goodwill for the six months ended June 30, 2022 (dollars in thousands):


	Advisory Services		Global Workspace Solutions		Real Estate Investments		Consolidated
Balance as of December 31, 2021
Goodwill	$	3,298,494	$	2,174,029	$	616,158	$	6,088,681
Accumulated impairment losses	(761,448)		(175,473)		(156,585)		(1,093,506)
	2,537,046		1,998,556		459,573		4,995,175
Impairment loss	—		—		(26,405)		(26,405)
Purchase accounting entries related to acquisitions	37,358		(27,806)		—		9,552
Foreign exchange movement	(40,827)		(119,850)		(22,798)		(183,475)
Balance as of June 30, 2022
Goodwill	3,295,025		2,026,373		593,360		5,914,758
Accumulated impairment losses	(761,448)		(175,473)		(182,990)		(1,119,911)
	$	2,533,577	$	1,850,900	$	410,370	$	4,794,847