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Table of Contents
<br />AMERESCO, INC.
<br />NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<br />(In thousands, except per share amounts)
<br />5. GOODWILL AND INTANGIBLE ASSETS, NET
<br />Goodwill, Net
<br />Our annual goodwill impairment review is performed during the fourth quarter each year-end using a quantitative approach. We tested goodwill for impairment at the reporting
<br />unit level utilizing the income approach which included a discounted cash flow method with a market approach. Based on our assessment during the fourth quarter ended
<br />December 31, 2023, one reporting unit had a fair value that was2% less than the carrying value and we recorded a $1,644 goodwill impairment, which was $2,222 after taking
<br />into account the effect of deferred income taxes. The impairment was primarily driven by a decline in projected cash flows, including revenues and profitability. The impairment
<br />charges are included in the asset impairments within the consolidated statements of income for the year ended December 31, 2023. All other reporting units with goodwill had
<br />estimated fair values that exceeded their carrying values by at least 16% as of December 31, 2023 and 20% as of December 31, 2022. There was no goodwill impairment for the
<br />years ended December 31, 2022 and 2021.
<br />The changes in the goodwill balances by reportable segment are as follows:
<br />Carrying Value of Goodwill
<br />Balance, December 31, 2021
<br />Remeasurement adjustments
<br />Foreign currency translation
<br />Balance, December 31, 2022
<br />Goodwill acquired during the year
<br />Remeasurement adjustments
<br />Impairment charges, net of tax
<br />Foreign currency translation
<br />Balance, December 31, 2023
<br />Accumulated Goodwill Impairment
<br />Balance, December 31, 2022
<br />Balance, December 31, 2023
<br />Alternative
<br />U.S. Regions U.S. Federal Canada Fuels Europe Other Total
<br />$ 39,204
<br />$ 3,981 $
<br />3,454
<br />$ — $
<br />6,627
<br />$ 17,891 $
<br />71,157
<br />389
<br />389
<br />—
<br />—
<br />(218)
<br />—
<br />(695)
<br />—
<br />(913)
<br />39,593
<br />3,981
<br />3,236
<br />—
<br />5,932
<br />17,891
<br />70,633
<br />—
<br />—
<br />—
<br />—
<br />6,855
<br />—
<br />6,855
<br />—
<br />—
<br />—
<br />—
<br />(165)
<br />—
<br />(165)
<br />(2,222)
<br />(2,222)
<br />—
<br />—
<br />73
<br />—
<br />413
<br />—
<br />486
<br />$ 37,371
<br />$ 3,981 $
<br />3,309
<br />$ — $
<br />13,035
<br />$ 17,891 $
<br />75,587
<br />$ —
<br />$ — $
<br />(1,016)
<br />$ — $
<br />—
<br />$ — $
<br />(1,016)
<br />$ (2,222)
<br />$ $
<br />(1,016)
<br />$ $
<br />$ $
<br />(3,238)
<br />72
<br />
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