Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 271

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 271
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 transitioned from the FAA operating certificate held by GVA to the FAA operating certificate held by Wheels Up Private Jets LLC, our indirect subsidiary (“WUPJ” and such transition, the “Phenom Fleet Transition”). The Phenom Post-Closing Agreements will terminate upon completion of the Phenom Fleet Transition and the final payment of any sums owed by WUP LLC thereunder. Also on the Phenom Acquisition Closing Date, the Company and GVA terminated an agreement pursuant to which GVA had provided the Company’s members and customers with certain dedicated Embraer Phenom 300 and Phenom 300E aircraft since November 2021.

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6.    GOODWILL AND INTANGIBLE ASSETS

GoodwillThe following table presents goodwill carrying value and the movements, by reporting unit, during the years ended December 31, 2024 and 2023 (in thousands):WUP LegacyAir PartnerTotalBalance as of December 31, 2022 (1)$270,467 $77,651 $348,118 Acquisitions (2)— 350 350 Impairment of goodwill(126,200)— (126,200)Divestitures (3)(8,169)— (8,169)Foreign currency translation adjustment— 4,109 4,109 Balance as of December 31, 2023  (4)136,098 82,110 218,208 Foreign currency translation adjustment— (1,163)(1,163)Balance as of December 31, 2024$136,098 $80,947 $217,045 (1)    Net of accumulated impairment losses of $180 million, all of which was recognized during the year ended December 31, 2022.    (2)    Reflects the current period impact of measurement period adjustments (see Note 5).(3)    Reflects the amount of goodwill allocated to the divestiture of the aircraft management business (see Note 5).(4)    Net of accumulated impairment losses of $306.2 million.Goodwill ImpairmentDuring the third quarter of 2022, we determined that because of continued deterioration in our stock price, resulting in a market capitalization that was below the carrying value of our equity, there was an indication that a triggering event occurred and the carrying value of WUP Legacy may not be recoverable. As a result, we performed a quantitative