Followers | 8 |
Posts | 744 |
Boards Moderated | 0 |
Alias Born | 07/16/2006 |
Friday, August 22, 2014 10:17:52 AM
The $44.3M impairment recorded this quarter removed most of the goodwill and half of the intangible assets from FSYS' balance sheet... i.e. Goodwill was reduced to $7.5M from $48.9M and Intangible Assets were reduced to $8.6M from $11.8M.
A Goodwill impairment of $36M was attributed to FSS Automotive in Italy; $4M was attributed to FSS Industrial in Canada & the Netherlands. Intangibles were reduced relatively evenly across the technology, customer relationships, & Trade name categories.
One short term advantage of the long-lived asset impairment is that it produced a tax benefit of $1.1M.... Of course, this savings will be reversed if the impaired property is divested.
I suspect that the timing of the impairment is correlated to the closure of the Livorno automotive conversion facilities due to the trend towards lower DOEM volumes; albeit, I believe the impairment greatly exceeded that specific to Livorno.
The reason for the impairment stated in this quarter's 10Q is:
2014 Q2 10-Q: http://www.sec.gov/Archives/edgar/data/1340786/000156459014003843/fsys-10q_20140630.htm
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM