The total amount of goodwill impairment recorded by U.S. public companies climbed 23 percent last year, reaching $35.1 billion in 2017, according to a new study, while the average goodwill impairment per event rose 21 percent to $120 million.
“Despite strength in both the global economy and U.S. equity markets, U.S. companies experienced an increase in aggregate impairment amounts in 2017,” said Greg Franceschi, managing director and global leader of Duff & Phelps Financial Reporting Valuation Practice, in a statement. “Goodwill may be exposed to future impairments particularly given the record $319 billion of goodwill added to corporate balance sheets during 2017 — a reflection of robust M&A activity fueled by the favorable economic and market conditions in 2017. In fact, this is the highest level of aggregate goodwill added since Duff & Phelps began compiling this data in 2008.”
