Company: SGBAF
Filing Date: 2025-04-23
Form Type: DRS/A
Source: 0000950123-25-003652
Chunk: 449

Company: SES S.A.
Filing Date: 2025-04-23
Form: DRS/A
Chunk 449
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 the quantitative analysis, we determined that the fair value of the Intelsat CA reporting unit was approximately $342.0 million as compared to its carrying amount of $585.0 million, resulting in the recognition of goodwill impairment of $243.0 million in the second quarter of 2022, which is included within “Impairment of goodwill and other intangible assets” in our consolidated statements of operations. Based on our examination of the qualitative factors as of December 31, 2022, we identified that conditions and events existed which indicated it was more likely than not that the fair value of the Intelsat CA reporting unit was less than its carrying amount. Specifically, there was an increase in the risk-free rate as a result of an increase of the treasury rate by the Federal Reserve, combined with challenging macroeconomic and geopolitical conditions and delays in the reporting unit’s expected cash flows. Consequently, we performed a quantitative analysis to determine the fair value of the reporting unit. In estimating the fair value, we used an income approach utilizing a discounted cash flow model. Based on the results of the quantitative analysis, we determined that the fair value of the Intelsat CA reporting unit was less than its carrying amount, resulting in the recognition of goodwill impairment limited to the remaining amount of goodwill allocated to the reporting unit of $78.3 million in the fourth quarter of 2022, which is included within “Impairment of goodwill and other intangible assets” in our consolidated statements of operations. During the qualitative assessment of the Intelsat Legacy reporting unit in the first quarter of 2024, we identified that the SES Transaction indicated it was more likely than not that the fair value of the reporting unit was less than its carrying amount. Consequently, we performed a quantitative analysis to determine the fair value of the reporting unit. In estimating the fair value, we used an income approach utilizing a discounted cash flow model. Based on the results of the quantitative analysis, we determined that the fair value of the reporting unit was less than its carrying amount, resulting in the recognition of goodwill impairment of $290.7 million in the first quarter of 2024, which is included within “Impairment of goodwill and other intangible assets” in our consolidated statements of operations. We did not recognize any other goodwill impairment for the year ended December 31, 2024. Determining the fair value of a reporting unit often involves the use of estimates and assumptions that require significant judgment, and that could have a substantial impact on whether or not an impairment