The Company accounts for goodwill in accordance with ASC 350,
“Intangibles – Goodwill and Other,” and tests
goodwill for impairment annually, or whenever events occur or
circumstances change that would more likely than not reduce the
fair value of a reporting unit below its carrying amount. This
assessment involves the use of significant accounting judgments and
estimates as to future operating results and discount rates.
Changes in estimates or use of different assumptions could produce
significantly different results. An impairment loss is generally
recognized when the carrying amount of the reporting unit’s
net assets exceeds the estimated fair value of the reporting unit.
The Company uses discounted cash flow analysis to estimate the fair
value of our reporting units. The Company’s goodwill
impairment analysis also includes a comparison of the aggregate
estimated fair value of its reporting units to the Company’s
total market capitalization.