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GOODWILL

9 Months Ended

Sep. 30, 2024

GOODWILL

GOODWILL

9. GOODWILL

During the quarter ended September 30, 2024, the Company completed an impairment assessment for its US Telecom segment after identifying events that indicate that the fair value of a reporting unit may be below its carrying value. These events included, the Company’s continued shift away from wholesale roaming and retail operations towards carrier managed services and fixed broadband services, delays in completing significant network upgrade projects, the conclusion of certain government subsidy programs leading to slower consumer growth, and delays in enterprise sales and delivery. The combination of these events led to the reporting unit being unable to meet key financial and operational forecasted targets.

The Company’s quantitative test for goodwill impairment involves a comparison of the estimated fair value of a reporting unit to its carrying amount, including goodwill. The Company determines the fair value of a reporting unit using the income approach. The income approach is based on a discounted cash flow (“DCF”) model. The DCF model requires the exercise of significant judgment, including judgments and assumptions about appropriate discount rates and revenue growth. Discount rates are based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity. The revenue growth and cash flows employed in the DCF model were derived from internal earnings and forecasts and external market forecasts.

As a result of that analysis, the Company recorded an impairment of $35.3 million during the three months ended September 30, 2024. The table below discloses goodwill recorded in each of the Company’s segments and accumulated impairment changes (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	​	International	​	​	US	​	​	​
​	​	​	Telecom	​	​	Telecom	​	​	Consolidated
Balance at December 31, 2023	​	​	​	​	​	​	​	​	​
Goodwill	​	$	25,423	​	$	35,268	​	$	60,691
Accumulated Impairment	​	​	(20,587)	​	​	—	​	​	(20,587)
Goodwill, net of accumulated impairment	​	​	4,836	​	​	35,268	​	​	40,104
Balance at September 30, 2024	​	​	​	​	​	​	​	​	​
Goodwill	​	​	25,422	​	​	35,269	​	​	60,691
Accumulated Impairment	​	​	(20,587)	​	​	(35,269)	​	​	(55,856)
Goodwill, net of accumulated impairment	​	$	4,835	​	$	—	​	$	4,835

​

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- References

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- Definition

The entire disclosure for goodwill.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/350-20/tableOfContent

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