XML 35 R17.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the fiscal years 2023 and 2022 are included in the tables below (in millions of dollars):
|  | As of Year-End 2022 |  | Additions to Goodwill |  | Impairment Adjustments |  | As of Year-End 2023
Science, Engineering & Technology |  | $ | 111.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 111.3 |
Education |  | 39.8 |  |  | — |  |  | — |  |  | 39.8 |
Outsourcing & Consulting |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 151.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 151.1 |
|  | As of Year-End 2021 |  | Additions to Goodwill |  | Impairment Adjustments |  | As of Year-End 2022
Science, Engineering & Technology |  | $ | 111.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 111.3 |
Education |  | 3.5 |  |  | 36.3 |  |  | — |  |  | 39.8 |
Outsourcing & Consulting |  | — |  |  | 41.0 |  |  | (41.0) |  |  | — |
Total |  | $ | 114.8 |  |  | $ | 77.3 |  |  | $ | (41.0) |  |  | $ | 151.1 |
The goodwill resulting from the acquisition of RocketPower during the first quarter of 2022 was allocated to the OCG reportable segment and RocketPower was deemed to be a separate reporting unit. The goodwill resulting from the acquisition of PTS during the second quarter of 2022 was allocated to the Education reportable segment and PTS was deemed to be a separate reporting unit. The goodwill resulting from the acquisition of Softworld during the second quarter of 2021 was allocated to the SET reportable segment and Softworld was deemed to be a separate reporting unit. (See Additions to Goodwill column in the 2022 table above and the Acquisitions and Dispositions footnote for more details regarding each acquisition.) The Company performs its annual goodwill impairment testing in the fourth quarter each year and regularly assesses whenever events or circumstances make it more likely than not that an impairment may have occurred. We also perform a qualitative review on a quarterly basis of our long-lived assets, comprised of net property and equipment and definite-lived intangible assets, to determine whether events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. 2023 Goodwill Impairment Assessment In the fourth quarter of 2023, we performed our annual goodwill impairment testing, which included a step one quantitative test for the Softworld and PTS reporting units. As a result of the quantitative assessment, we determined that the estimated fair value of the Softworld and PTS reporting units was more than its carrying value. Additionally, we performed a step zero qualitative analysis for the Education reporting unit to determine whether a further quantitative analysis was necessary and concluded that a step one quantitative analysis was not necessary. As a result of the quantitative and qualitative assessments, the Company determined goodwill related to these reporting units was not impaired. The estimated fair value of the Softworld reporting unit exceeds the carrying value by less than 10%. If current expectations of future revenue and profit margins are not met, or if market factors outside of our control change significantly, including discount rate, and other market factors, then the goodwill of the Softworld reporting unit may be impaired in the future, resulting in goodwill impairment charges. 2022 Goodwill Impairment During the third quarter of 2022, customers within the high-tech industry vertical, in which RocketPower specializes, reduced or eliminated their full-time hiring, reducing demand for RocketPower’s services, and on-going economic uncertainty had more broadly impacted the growth in demand for RPO in the near-term. These changes in market conditions therefore caused a triggering event requiring an interim impairment test for both long-lived assets and goodwill. RocketPower has definite-lived intangible assets, consisting of trades names, customer relationships and non-compete agreements, which are amortized over their estimated useful lives. We performed a long-lived asset recoverability test for RocketPower and determined that undiscounted future cash flows exceeded the carrying amount of the asset group and were recoverable. We performed an interim step one quantitative test for RocketPower’s goodwill and determined that the estimated fair value of the reporting unit no longer exceeded the carrying value. Based on the result of our interim goodwill impairment test as of third quarter-end 2022, we recorded a goodwill impairment charge of $30.7 million to write off a portion of RocketPower’s goodwill, with $10.3 million goodwill remaining in the OCG reportable segment as of third quarter-end 2022. In the fourth quarter of 2022, we performed our annual goodwill impairment testing, which included a step one quantitative test for the Softworld and PTS reporting units. As a result of the quantitative assessment, we determined that the estimated fair value of the Softworld and PTS reporting units was more than its carrying value. Additionally, we performed a step zero qualitative analysis for the Education and RocketPower reporting units to determine whether a further quantitative analysis was necessary and concluded that a step one quantitative analysis was not necessary at that time. As a result of the quantitative and qualitative assessments, the Company determined goodwill related to these reporting units was not impaired at that time. Subsequent to our annual goodwill impairment testing, job eliminations in the high-tech industry vertical continued, indicating a broad, sustained reduction in hiring was likely and was expected to last through much of 2023, directly impacting RocketPower and the demand for RocketPower's services in this vertical. These changes in market conditions caused a triggering event requiring another interim impairment test for both long-lived assets and goodwill as of year-end 2022. We performed a long-lived asset recoverability test for RocketPower and determined that undiscounted future cash flows exceeded the carrying amount of the asset group and were recoverable. We performed an interim step one quantitative test for RocketPower’s goodwill and determined that the estimated fair value of the reporting unit no longer exceeded the carrying value. Based on the result of our interim goodwill impairment test as of year-end 2022, we recorded an additional goodwill impairment charge of $10.3 million in the fourth quarter of 2022 to write off the remaining balance of RocketPower’s goodwill, for a total goodwill impairment charge of $41.0 million as of year-end 2022. (See Impairment Adjustments column in the 2022 table above.) Intangible Assets Intangible assets, excluding fully-amortized intangibles, are included within other assets on our consolidated balance sheet and consist of the following (in millions of dollars):
|  |  | 2023 |  | 2022
| Useful Lives |  | Gross Carrying Amount |  | Less: Accumulated Amortization |  | Net |  | Gross Carrying Amount |  | Less: Accumulated Amortization |  | Net
Customer relationships | 10-15 years |  | $ | 141.1 |  |  | $ | 47.7 |  |  | $ | 93.4 |  |  | $ | 141.1 |  |  | $ | 32.9 |  |  | $ | 108.2 |
Trade names | 10-15 years |  | 51.6 |  |  | 12.8 |  |  | 38.8 |  |  | 51.7 |  |  | 8.3 |  |  | 43.4 |
Non-compete agreements | 5 years |  | 4.3 |  |  | 1.7 |  |  | 2.6 |  |  | 6.0 |  |  | 2.2 |  |  | 3.8 |
Trademarks | 10 years |  | 4.8 |  |  | 1.9 |  |  | 2.9 |  |  | 4.8 |  |  | 1.5 |  |  | 3.3 |
Total |  |  | $ | 201.8 |  |  | $ | 64.1 |  |  | $ | 137.7 |  |  | $ | 203.6 |  |  | $ | 44.9 |  |  | $ | 158.7 |
Intangible amortization expense, which is included in SG&A expense in the consolidated statements of earnings, was $20.9 million, $19.4 million and $13.0 million in 2023, 2022 and 2021, respectively. The amortization expense will be $20.6 million in 2024, $18.5 million in 2025, $17.9 million in 2026, $17.3 million in 2027 and $16.1 million in 2028.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration