U.S. public companies recorded $28.5 billion in goodwill impairment (GWI) in 2016, half the $56.9 billion they reported in 2015, according to the 2017 U.S. Goodwill Impairment Study from Duff & Phelps. The study was prepared and issued in partnership with the Financial Executives Research Foundation (FERF).
Energy hardest hit: For the third year in a row, the energy sector was the hardest-hit industry, although it saw a notable improvement in 2016. The amount of GWI in the energy sector dropped by 60%, from $18.2 billion in 2015 to $7.2 billion in 2016. Overall, nine out of the 10 industries analyzed saw their aggregate GWI amounts decrease—the only exception being the healthcare industry.
The study examines general and industry goodwill impairment trends through December 2016 for over 8,400 U.S. publicly traded companies. It also reports results from an annual survey of Financial Executive International (FEI) members, representing both privately owned and publicly traded companies.
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