PARSONS CORP Goodwill & Intangibles Disclosure
7. Goodwill
The following table summarizes the changes in the carrying value of goodwill by reporting segment for the years ended December 31, 2024 and December 31, 2023 (in thousands):
|
|
December 31, |
|
|
Acquisitions |
|
|
Foreign |
|
|
December 31, |
|
||||
Federal Solutions |
|
$ |
1,686,901 |
|
|
$ |
119,663 |
|
|
$ |
- |
|
|
$ |
1,806,564 |
|
Critical Infrastructure |
|
|
105,764 |
|
|
|
174,585 |
|
|
|
(4,233 |
) |
|
|
276,116 |
|
Total |
|
$ |
1,792,665 |
|
|
$ |
294,248 |
|
|
$ |
(4,233 |
) |
|
$ |
2,082,680 |
|
|
|
December 31, |
|
|
Acquisitions |
|
|
Foreign |
|
|
December 31, |
|
||||
Federal Solutions |
|
$ |
1,591,563 |
|
|
$ |
95,338 |
|
|
$ |
- |
|
|
$ |
1,686,901 |
|
Critical Infrastructure |
|
|
70,287 |
|
|
|
34,261 |
|
|
|
1,216 |
|
|
|
105,764 |
|
Total |
|
$ |
1,661,850 |
|
|
$ |
129,599 |
|
|
$ |
1,216 |
|
|
$ |
1,792,665 |
|
For the years ended December 31, 2024 and December 31, 2023, the Company performed a quantitative impairment analysis for all reporting units. It was determined that the fair value of all reporting units exceeded their carrying values. No goodwill impairments were identified for the three years ended December 31, 2024, December 31, 2023 and December 31, 2022.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 19, 2025 | Showing above |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 10, 2020 | |
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.