Company: SGBAF
Filing Date: 2025-04-29
Form Type: F-4
Source: 0001193125-25-103898
Chunk: 163

Company: SES S.A.
Filing Date: 2025-04-29
Form: F-4
Chunk 163
---
 forma carrying value of the net assets of 
 Intelsat Legacy’s reporting unit is lower than its fair value due to the U.S. GAAP to IFRS adjustments and therefore, Intelsat under IFRS would not have had a goodwill impairment.                     |

114

| ii. | During 2022, after the Fresh Start Reporting Date, an additional impairment was recorded in relation to                                                                                                                                                 
 goodwill for the Intelsat CA reporting unit under U.S. GAAP. The difference between the recoverable amount and the carrying value of the reporting unit exceeded the value of the remaining goodwill. Under U.S. GAAP, the goodwill was fully impaired, 
 but no further impairment was recorded on the remainder of the assets included in the reporting unit as the sum of the undiscounted cash flows was greater than the carrying value of the net assets. Under IFRS, the impairment loss first reduces     
 goodwill to zero, and if there is any additional impairment loss, the entity generally allocates it to each asset in the cash generating unit (“CGU”) on a pro rata basis.                                                                              |

As a result, an adjustment representing the additional IFRS impairment was recorded as at December 31, 2024, reflected as a decrease of $24 million for “Satellites and other property and equipment, net” and a decrease of $20 million for “Amortizable intangible assets, net.”, with a corresponding adjustment made to “Retained earnings”. An adjustment of $10 million for the year ended December 31, 2024 was recorded to reflect the lower depreciation and amortization expense in respect of these assets, presented under “Depreciation and amortization”. D. Employee benefits For U.S. GAAP purposes, the Intelsat Group uses a market-related asset value to compute the expected return on assets, whereas IFRS requires the use of the fair market value. This difference results in a lower interest income on plan assets by $6 million for the year ended December 31, 2024 reflected in “Other income (expense), net”. Under U.S. GAAP, the Intelsat Group has historically reflected the effect of expected administration expenses paid from plan assets implicitly in the expected investment return on plan assets. Under IFRS, expected administration expenses are recognized in the income statement, resulting in an increase in expense of $1 million for the year ended December 31, 2024, reflected in “Other income (expense), net”. E. Share-based compensation Under