ACORN ENERGY, INC. Goodwill & Intangibles Disclosure
NOTE 11—GOODWILL
The changes in the carrying amounts of goodwill by segment from December 31, 2014 to December 31, 2016 were as follows:
|
Energy & Security Sonar Solutions segment |
||||
| Balance at December 31, 2014 | $ | 518 | ||
| Impairment | — | |||
| Translation adjustment | (2 | ) | ||
| Balance at December 31, 2015 | 516 | |||
| Translation adjustment | 20 | |||
| Deconsolidation of DSIT | (536 | ) | ||
| Balance at December 31, 2016 | $ | — | ||
Following the closing of the DSIT Transaction (see Note 3), the Company no longer consolidates the results of DSIT, but rather reports its investment in DSIT using the equity method. Accordingly, the Company eliminated this goodwill as part of the deconsolidation of DSIT.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2016 | Mar 29, 2017 | Showing above |
| 2015 | Mar 30, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.