Juno 2013 Annual Report Download - page 119

Table of Contents
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The changes in goodwill by reportable segment for the years ended December 31, 2012 and 2013 were as follows (in thousands):
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During the quarter ended June 30, 2012, due to the sustained decline in the Company's market capitalization, the Company performed an interim
quantitative goodwill impairment assessment for all of the Company's reporting units. Step one of the goodwill impairment test for each of the
Company's reporting units resulted in the Company's determination that the fair value of each of the reporting units exceeded its respective carrying
amount, including goodwill. Accordingly, no impairment charges were recorded.
The Company performed its annual goodwill impairment assessment for all of its reporting units during the quarter ended December 31, 2012. The
Company did not perform a qualitative assessment to determine whether it is more likely than not that goodwill is impaired. The first step of the
quantitative goodwill impairment test resulted in the determination that the estimated fair values of the Classmates and Communications reporting units
exceeded their respective carrying amounts, including goodwill. Accordingly, the second step was not required for these reporting units.
The MyPoints reporting unit typically generates higher revenues and operating income in the quarter ending December 31 when compared to the
other quarters. In the quarter ended December 31, 2012, revenues and operating income were substantially lower than expected. The Company lowered
its
F-26
   
Balance at December 31, 2011:
Goodwill (excluding impairment charges) $ 124,712 $ 13,227 $ 137,939
Accumulated impairment charges — (5,738) (5,738)
Goodwill at December 31, 2011 124,712 7,489 132,201
Acquisition of schoolFeed, Inc. 12,457 — 12,457
Impairment charge (26,606) — (26,606)
Foreign currency translation 3 — 3
Balance at December 31, 2012:
Goodwill (excluding impairment charges) 137,172 13,227 150,399
Accumulated impairment charges (26,606) (5,738) (32,344)
Goodwill at December 31, 2012 110,566 7,489 118,055
Acquisition of the Yearbook App 413 — 413
Impairment charge (52,899) — (52,899)
Foreign currency translation 8 — 8
Balance at December 31, 2013:
Goodwill (excluding impairment charges) 137,593 13,227 150,820
Accumulated impairment charges (79,505) (5,738) (85,243)
Goodwill at December 31, 2013 $ 58,088 $ 7,489 $ 65,577