Study of Goodwill & Goodwill Impairment Trends across Regions - US, Asia, Africa, MENA, Europe etc. It covers all major sectors including Financials, Consumer discretionary, healthcare, energy, technology etc.

1. GoodwillStudy of Goodwill &
Goodwill Impairment Trends
January 2016
Alps Venture Partners
A M E R I C A S | A S I A PA C I F I C | E U R O P E

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Contents
Goodwill
Introduction & Concept
Global Scenario
Region
United States & Canada
Asia & Pacific
Industries
Information & Technology
Consumer Discretionary
Consumer Staples
Healthcare
Compliances & Valuations
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2
3
4

3. Goodwill & Impairments Study
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info@alpsvp.com
Goodwill is the excess of the purchase price paid for an acquired entity and the amount of the
price not assigned to acquired assets and liabilities. It arises when an acquirer pays a high price to
acquire another business/asset over and above the identified assets.
If the fair value is less than carrying value (Goodwill is said to be impaired), the goodwill value
needs to be reduced so the carrying value is equal to the fair value. The impairment loss is reported
as a separate line item on the income statement, and new adjusted value of goodwill is reported in
the balance sheet.
We have relied on CapitalIQ for the current analysis. Our methodology for selection of Goodwill
and Goodwill Impairment is presented below:
Goodwill Goodwill Impairment
We have collated the data points for goodwill greater than
$20M reported by companies across regions and Industries.
Any positive Goodwill Impairment is considered for the
analysis. We have not considered negative impairments
(goodwill add back) in the analysis.

4. Goodwill - Global
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$1,061
$937
$325
$1,744
$919
$1,164
$799
$444
$549
$362
Consumer Discretionary Consumer Staples
Energy Financials
Healthcare Industrials
Information Technology Materials
Telecommunication Services Utilities
Accumulated Goodwill 2015 ($ billion)We have observed majority of the goodwill is concentrated
in Financial sector followed by Industrials in 2015.
Globally $8.3 trillion of accumulated goodwill is recorded
across Industries and Regions.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2011 2012 2013 2014 2015
AccumulatedGoodwill($billion)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada

5. Goodwill Impairment - Global
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$561
$378
$724
$6,440
$1,186
$2,595
$280 $1,077
$302
$1,287
Consumer Discretionary Consumer Staples
Energy Financials
Healthcare Industrials
Information Technology Materials
Telecommunication Services Utilities
Goodwill Impairment 2015 ($ Million)
Majority of the Goodwill Impairment is recorded by
Financial Sector followed by Utilities and Materials in 2015.
Globally $14.8 billion of goodwill is impaired across
Industries and Regions.
0
5
10
15
20
25
30
35
2010 2011 2012 2013 2014 2015
Goodwill
Impaired($billion)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
*Source: CapitalIQ. Industry Goodwill refers to goodwill reported in year 2015 as in CapitalIQ.

6. United States and Canada
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United States and Canada Region has witnessed $1,863
billion of Mergers & Acquisitions in 2015 and $7,200 billion
in past 5 years. Goodwill is concentrated in these primary
industries:
Industry
Accumulated
Goodwill ($B)
Diversified Banks 351.7
Regional Banks 255.9
Integrated Telecommunication Services 148.0
Aerospace and Defense 141.1
Packaged Foods and Meats 138.9
Pharmaceuticals 113.6
Movies and Entertainment 110.3
Oil and Gas Storage and Transportation 102.5
Technology Hardware, Storage and Peripherals 102.2
Data Processing and Outsourced Services 96.4
Electric Utilities 85.5
*Source: CapitalIQ. Industry Goodwill refers to goodwill reported in year 2015 as in CapitalIQ.

7. United States and Canada – Goodwill & Impairment
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Accumulated Goodwill ($ billion)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2011 2012 2013 2014 2015
Goodwill($billion)
Consumer Discretionary Consumer Staples
Energy Financials
Healthcare Industrials
Information Technology Materials
Telecommunication Services Utilities
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2010 2011 2012 2013 2014 2015
GoodwillImpairment($Million)
Consumer Discretionary Consumer Staples
Energy Financials
Healthcare Industrials
Information Technology Materials
Telecommunication Services Utilities
Goodwill Impairment ($ Million)
*Source: CapitalIQ. Goodwill and Goodwill Impairment as recorded in CapitalIQ.

8. Asia & Pacific
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Asia & Pacific Region witnessed Mergers & Acquisitions
aggregating $1,110 billion in 2015 and $4,440 billion during
the past 5 years. Goodwill is concentrated in these primary
industries:
Industry
Accumulated
Goodwill ($B)
Diversified Banks 76.3
Industrial Conglomerates 44.8
Wireless Telecommunication Services 38.7
Integrated Telecommunication Services 36.1
Pharmaceuticals 27.3
Electric Utilities 25.6
Technology Hardware, Storage and Peripherals 23.3
Oil and Gas Exploration and Production 19.5
Packaged Foods and Meats 19.3
Food Retail 17.4
Integrated Oil and Gas 16.7
*Source: CapitalIQ. Industry Goodwill refers to goodwill reported in year 2015 as in CapitalIQ.

9. Asia & Pacific – Goodwill & Impairment
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0
100
200
300
400
500
600
700
800
900
1,000
2011 2012 2013 2014 2015
Goodwill($billion)
Consumer Discretionary Consumer Staples
Energy Financials
Healthcare Industrials
Information Technology Materials
Telecommunication Services Utilities
Goodwill Impairment ($ Million)
0
1,000
2,000
3,000
4,000
5,000
6,000
2010 2011 2012 2013 2014 2015
GoodwillImpairment($Million)
Consumer Discretionary Consumer Staples
Energy Financials
Healthcare Industrials
Information Technology Materials
Telecommunication Services Utilities
*Source: CapitalIQ. Goodwill and Goodwill Impairment as recorded in CapitalIQ.
Accumulated Goodwill ($ billion)

10. INFORMATION TECHNOLOGY | CONSUMER STAPLES | HEALTHCARE
Industry Focused
Analysis

11. Information Technology
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0
100
200
300
400
500
600
700
800
900
2011 2012 2013 2014 2015
Goodwill($billion)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
Primary Sub-Industry
Accumulated
Goodwill ($B)
Application Software 104
Technology Hardware, Storage and Peripherals 130
Data Processing and Outsourced Services 114
Internet Software and Services 93
IT Consulting and Other Services 90
Systems Software 77
Communications Equipment 66
Semiconductors 46
Electronic Equipment and Instruments 22
Electronic Components 14
Semiconductor Equipment 12
Home Entertainment Software 12
Technology Distributors 11
Electronic Manufacturing Services 9
Information Technology witnessed $280 million of
impairment in 2015. It is the rising sector of new
millennium with $2,500 billion of M&A transactions
during the last 5 years.
*Source: CapitalIQ. Goodwill and Goodwill Impairment as recorded in CapitalIQ.

12. Information Technology
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0
200
400
600
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013 2014 2015
GoodwillImpairment($Million)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
Primary Sub-Industry
Goodwill
Impairment ($M)*
Semiconductors 106.3
Electronic Components 93.3
Internet Software and Services 20.9
Electronic Manufacturing Services 14.0
IT Consulting and Other Services 12.5
Electronic Equipment and Instruments 7.4
Application Software 7.4
Technology Distributors 6.6
Data Processing and Outsourced Services 4.1
Systems Software 3.7
Technology Hardware, Storage and Peripherals 2.9
Communications Equipment 0.7
*Source: CapitalIQ. Industry Goodwill refers to goodwill reported in year 2015 as in CapitalIQ.

13. Consumer Discretionary
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0
200
400
600
800
1,000
1,200
2011 2012 2013 2014 2015
Goodwill($billion)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
Primary Sub-Industry
Accumulated
Goodwill ($B)
Cable and Satellite 155.6
Movies and Entertainment 128.9
Broadcasting 85.9
Publishing 85.7
Apparel, Accessories and Luxury Goods 67.9
Advertising 64.1
Automobile Manufacturers 51.2
Restaurants 49.6
Auto Parts and Equipment 49.1
Casinos and Gaming 40.5
Hotels, Resorts and Cruise Lines 38.8
Internet Retail 23.5
Specialty Stores 21.5
Department Stores 18.0
Education Services 17.0
Catalog Retail 16.2
Apparel Retail 13.8
Consumer Discretionary witnessed $560 million of
impairment in 2015. M&A transactions aggregating
$3,075 billion during last 5 years.
*Source: CapitalIQ. Goodwill and Goodwill Impairment as recorded in CapitalIQ.
11

14. Consumer Discretionary
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0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2010 2011 2012 2013 2014 2015
GoodwillImpairment($Million)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
Primary Sub-Industry
Goodwill
Impairment ($M) *
Education Services 98.4
Specialized Consumer Services 87.0
Hotels, Resorts and Cruise Lines 67.9
Auto Parts and Equipment 64.3
Consumer Electronics 50.3
Automobile Manufacturers 25.9
Publishing 23.3
Apparel, Accessories and Luxury Goods 21.9
Home Furnishings 21.6
Textiles 19.8
Casinos and Gaming 18.0
Movies and Entertainment 13.2
Advertising 10.9
Department Stores 10.9
Distributors 8.6
Broadcasting 6.3
Tires and Rubber 3.4
*Source: CapitalIQ. Industry Goodwill refers to goodwill reported in year 2015 as in CapitalIQ.
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15. Consumer Staples
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0
100
200
300
400
500
600
700
800
900
1,000
2011 2012 2013 2014 2015
Goodwill($billion)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
Primary Sub-Industry
Accumulated
Goodwill ($B)
Packaged Foods and Meats 253
Brewers 161
Food Retail 98
Household Products 79
Hypermarkets and Super Centers 74
Personal Products 61
Soft Drinks 55
Tobacco 51
Drug Retail 47
Food Distributors 25
Distillers and Vintners 21
Agricultural Products 12
Consumer Staples witnessed $376.0 million of
impairment in 2015. M&A transactions aggregating
$1,547 billion in this industry during the last 5 years.
*Source: CapitalIQ. Goodwill and Goodwill Impairment as recorded in CapitalIQ.
13

16. Consumer Staples
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0
500
1,000
1,500
2,000
2,500
3,000
2010 2011 2012 2013 2014 2015
GoodwillImpairment($Million)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
Primary Sub-Industry
Goodwill
Impairment ($M) *
Soft Drinks 131.1
Packaged Foods and Meats 124.0
Agricultural Products 78.5
Drug Retail 31.1
Hypermarkets and Super Centers 4.6
Household Products 3.8
Brewers 2.2
Distillers and Vintners 1.2
Food Retail 0.8
Personal Products 0.7
*Source: CapitalIQ. Industry Goodwill refers to goodwill reported in year 2015 as in CapitalIQ.
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17. Healthcare
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0
100
200
300
400
500
600
700
800
900
1,000
2011 2012 2013 2014 2015
Goodwill($billion)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
Primary Sub-Industry
Accumulated
Goodwill ($B)
Pharmaceuticals 366
Healthcare Services 145
Healthcare Equipment 127
Managed Healthcare 74
Healthcare Facilities 61
Healthcare Distributors 41
Life Sciences Tools and Services 38
Biotechnology 36
Healthcare Supplies 20
Health Care Technology 12
Healthcare witnessed $1,185 million of impairment in
2015. M&A transactions totaling $1,570 billion
during the last 5 years.
*Source: CapitalIQ. Goodwill and Goodwill Impairment as recorded in CapitalIQ.
15

18. Healthcare
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Primary Sub-Industry
Goodwill
Impairment ($M) *
Healthcare Facilities 635.1
Health Care Technology 417.5
Biotechnology 64.5
Life Sciences Tools and Services 30.4
Pharmaceuticals 24.2
Healthcare Distributors 6.8
Healthcare Services 5.6
Healthcare Equipment 1.1
Healthcare Supplies 0.3
Managed Healthcare 0.0
0
200
400
600
800
1000
1200
1400
2010 2011 2012 2013 2014 2015
GoodwillImpairment($Million)
Africa / Middle East Asia / Pacific
Europe Latin America and Caribbean
United States and Canada
*Source: CapitalIQ. Industry Goodwill refers to goodwill reported in year 2015 as in CapitalIQ.
16

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Our business valuation experienced
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Goodwill and Investment
Impairment testing.
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