Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRS/A
Source: 0000950123-25-000378
Chunk: 401

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRS/A
Chunk 401
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 impairment during the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may
not be fully recoverable. Upon the adoption of Fresh Start Accounting, our intangible asset balances were adjusted to fair value. See Note 3—Fresh Start Accounting.

(a) Goodwill

Intelsat had two
reporting units for purposes of the analysis of goodwill: Intelsat Legacy (which consists of Intelsat S.A. excluding Intelsat CA) and Intelsat CA. For both reporting units, we used a qualitative approach to identify and consider the significance of
relevant key factors, events, and circumstances that affect the fair value of the reporting unit. We make our qualitative evaluation considering, among other things, general macroeconomic conditions, industry and market considerations, cost factors,
overall financial performance and other relevant entity-specific events.

During the qualitative assessment of the Intelsat CA reporting
unit in the second quarter of 2022, we identified that events existed which indicated it was more likely than not that the fair value of the reporting unit was less than its carrying amount. Specifically, Intelsat CA agreed to accept the termination
of a significant customer contract. 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 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, non-amortizable intangibles and other 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