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Goodwill | 6 Months Ended
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Jun. 30, 2024
Goodwill Disclosure [Abstract] |
Goodwill | 8. GOODWILL The changes in the carrying amount of goodwill for the six months ended June 30, 2024, are as follows:
(In thousands) |  | Network Solutions |  |  | Services & Support |  |  | Total |
As of December 31, 2023 |  | $ | 297,031 |  |  | $ | 56,384 |  |  | $ | 353,415 |
Goodwill impairment |  |  | (290,528 | ) |  |  | — |  |  |  | (290,528 | )
Foreign currency translation adjustments |  |  | (6,503 | ) |  |  | (1,487 | ) |  |  | (7,990 | )
As of June 30, 2024 |  | $ | — |  |  | $ | 54,897 |  |  | $ | 54,897 |
Goodwill represents the excess purchase price over the fair value of net assets acquired. The Company performs its annual goodwill impairment assessment on the first day of the fourth quarter. In addition, the Company performs an interim impairment assessment prior to our October 1st annual measurement date 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, the Company identified a triggering event due to a decrease in the Company’s market capitalization and changes in projections (decrease in estimated cash flows). While the quantitative impairment analysis indicated that there was no impairment of Network Solutions goodwill, the Company determined that a $37.9 million non-cash impairment charge for goodwill was warranted for the Services & Support reporting unit. During the fourth quarter of 2023, the Company completed its annual impairment test. There were no significant market changes or changes to cash flow projections, as such no triggering event was identified during the fourth quarter of 2023. During the first quarter of 2024, qualitative factors such as a decrease in the Company’s market capitalization, lower service provider spending and delayed holding patterns of inventory with respect to customers caused us to reduce our forecasts, triggering 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. The significant inputs and assumptions used in the determination of the fair value of our reporting units based on future cash flows for the reporting units, requires significant judgment and the use of estimates and assumptions related to cash flow projections, discount rate, peer group determination and market multiple selection. The Company determined upon its quantitative impairment assessment to recognize a $292.6 million non-cash goodwill impairment charge for the Network Solutions reporting unit. The quantitative impairment analysis indicated there was no impairment of the Services & Support goodwill during the first quarter of 2024. No impairment of goodwill was recognized during the three months ended June 30, 2024. Goodwill impairment recognized during the six months ended June 30, 2024, was $292.6 million. No impairment of goodwill was recognized during the three and six months ended June 30, 2023. As of June 30, 2024, accumulated goodwill impairment losses totaled $330.5 million. The Company will continue to monitor its stock price, operating results and other macroeconomic factors to determine if there is indication of a decline in fair value requiring an event driven assessment of the recoverability of its remaining goodwill prior to the annual assessment.

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