Segment	May 31, 2022			May 31, 2021
Cannabis		2,640,669			2,628,146
Distribution		4,458			4,458
Beverage alcohol		102,999			100,202
Wellness		77,470			77,470
Effect of foreign exchange		39,640			63,713
Impairments		(223,931	)		(41,195	)
	$	2,641,305		$	2,832,794

During the year ended May 31, 2022, the Company completed its annual goodwill impairment assessment of the fair value of the Company’s reporting units compared to their carrying amount. For the year ended May 31, 2022 the Company recognized impairment charges of $182,736 in cannabis goodwill recorded in impairment. These impairment charges were a related to changes in market opportunities, causing a shift in our strategic priorities, and market conditions inclusive of higher rates of borrowing and lower foreign exchange rates. The company used a discount rate of 11.21%, terminal growth rate of 5%, and an average revenue growth rate of 46% over 5 years as a result of anticipated federal legalization in various countries. A 1% increase in the discount rate would result in an additional $587 million in impairment, a 1% decrease in the terminal growth rate would result in an additional $457 million in impairment and a 5% decrease in the average revenue growth rate would result in an additional $553 million in impairment.

For the year ended May 31, 2021, there were no impairment charges recognized. For the year ended May 31, 2020, the Company recognized impairment charges of $50,679 consisting of: $5,229 in capital assets, $15,340 in intangible assets, $41,195 in cannabis goodwill, offset by a $4,065 in net liabilities and $7,020 of NCI portion of the impairment.