|6 Months Ended|
Jun. 30, 2023
|Goodwill and Intangible Assets Disclosure [Abstract]|
NOTE 8. GOODWILL
We account for goodwill in accordance with FASB ASC Topic 350
. We do not amortize goodwill, but rather test for impairment annually or more frequently if events or circumstances indicate that an asset may be impaired. We perform our annual impairment testing during the fourth quarter of each year, which coincides with our budget and planning process for the upcoming year.
Intangibles—Goodwill and Other
As a result of changes in macroeconomic conditions and revenue forecasts, we performed an interim review of goodwill for impairment at June 30, 2023. We assessed a variety of factors, including forecasts for the remainder of 2023 and the amount by which the prior estimated fair value exceeded the carrying value including goodwill.
Based on our qualitative review, we tested one market for goodwill impairment. We engaged Bond & Pecaro, an independent appraisal and valuation firm, to assist us in estimating the enterprise value of Townhall.com
The key estimates and assumptions used for our enterprise valuations were as follows:
The risk-adjusted discount rate reflects the WACC developed based on data from same or similar industry
participants and publicly available market data as of the measurement date.
n our review and analysis, we recorded an impairment charge of $1.8
million to the carrying value of goodwill associated with Townhall.com
®at June 30, 2023. The impairment charge was driven by the decreased revenue growth rates within the industry over those used in the
year-endvaluation forecasts. We believe that this decrease is indicative of trends in the industry as a whole and not unique to our company or operations.
The following table presents the changes in goodwill including business acquisitions and dispositions
asdiscussed in Note 3 of our Condensed Consolidated Financial Statements.
The entire disclosure for goodwill.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef