American Tower Corp books $322 mn goodwill impairment charge for India unit
American Tower Corp (ATC) has informed the US Securities and Exchange Commission (SEC) that it has taken a $322 million (Rs 2,677 crore approx) goodwill impairment charge for its India unit in the quarter ended September 2023, amid continuing business challenges in the country.
This is since the fair value of ATC’s India unit has dropped below its carrying amount in the September quarter, the Boston-based telecom tower company said in a recent global SEC filing.
“The company (read: ATC) performed an interim quantitative goodwill impairment test as of September 30, 2023, using information obtained from third parties to compare the fair value of the India reporting unit to its carrying amount, including goodwill. The result indicated that the carrying amount of the company's India reporting unit exceeded its estimated fair value… as a result, the company recorded a goodwill impairment charge of $322 million for the three and nine months ended September 30, 2023,” ATC said in its US SEC filing, dated October 26.
The US tower firm added that it continues to evaluate the carrying value of its Indian assets, which may result in realisation of additional impairment expenses or other similar charges.
The fair value, typically, is the estimated price at which an asset is bought or sold when buyer and seller agree on a price.
