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Goodwill | 9 Months Ended
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Sep. 30, 2023
Goodwill Disclosure [Abstract] |
Goodwill | 9. GOODWILL The changes in the carrying amount of goodwill for the nine months ended September 30, 2023 are as follows:
(In thousands) |  | Network Solutions |  |  | Services & Support |  |  | Total |
As of December 31, 2022 |  | $ | 298,280 |  |  | $ | 83,444 |  |  | $ | 381,724 |
Goodwill impairment |  |  | — |  |  |  | (37,500 | ) |  |  | (37,500 | )
Foreign currency translation adjustments |  |  | (3,873 | ) |  |  | (1,268 | ) |  |  | (5,141 | )
As of September 30, 2023 |  | $ | 294,407 |  |  | $ | 44,676 |  |  | $ | 339,083 |
Related to the Business Combination with Adtran Networks, the Company recognized $350.5 million of goodwill upon the closing of the Business Combination on July 15, 2022. Goodwill represents the excess purchase price over the fair value of net assets acquired. The Company performed an impairment assessment as of September 30, 2023, prior to our October 1, 2023 annual measurement date. The Company’s policy is to assess the realizability of its goodwill, and to evaluate such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (or group of assets) may not be recoverable. During the third quarter of 2023, qualitative factors such as a decrease in the Company's market capitalization and long-term projections, triggered a quantitative impairment assessment for our reporting units. The Company determined the fair value of each reporting unit using a combination of an income approach and a market based peer group analysis. It was determined that the decreases in projected future cash flows, discount rates, overall macroeconomic conditions, as well as the decrease in our market capitalization applied in the valuation, were required to align with market-based assumptions and company-specific risk, which resulted in lower fair values of the Services & Support reporting unit. The Company determined upon its quantitative impairment assessment to recognize a $37.9 million non-cash goodwill impairment charge for the Services & Support reporting unit. The Company does not expect the impairment charge for the Services & Support Unit to result in any future cash expenditures. The Company did not recognize any impairment charges for the Network Solutions reporting unit as of September 30, 2023. Subsequent to September 30, 2023, the Company has experienced volatility in its stock price which reduced the market value of the Company’s common stock as of this filing. The Company will continue to monitor its stock price, operating results and other macroeconomic factors to determine if there is further indication of a sustained decline in fair value requiring an event driven assessment of the recoverability of its goodwill within the fourth quarter of 2023.

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