What does technology brands — goodwill impairment mean?

The non-cash charge recognized when the carrying amount of goodwill in the Technology Brands segment exceeds its implied fair value. This indicates that the expected future economic benefits from the segment's acquisitions have diminished. It is a critical indicator of management's assessment of the segment's long-term viability.

GameStop GME Technology Brands — Goodwill Impairment

Discontinued — last reported Q4 '18

Similar metrics at other companies

LYBTechnology — Goodwill impairments

$0—

LYBTechnology — Goodwill

$8M0.0%

MODPerformance Technologies — Goodwill Impaired Accumulated Impairment Loss

$40.8M0.0%

RPMSpecialty Products Group — Goodwill Impairment

$2.85M—

BRGlobal Technology and Operations — Goodwill, Impaired, Accumulated Impairment Loss

$0—

ULSSoftware and Advisory — Goodwill impairment

$0—

Other financials

Income statement

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Revenue$835.3M+14.0%

Gross profit$340.3M+34.6%

Operating income$143.3M+1,427%

Net income$389.6M+770%

EPS (diluted)$0.66+633%

Balance sheet

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Cash & equivalents$7.4B+15.4%

Total debt$4.3B+146%

Total equity$5.8B+17.1%

Total assets$11.0B+46.3%

Cash flow

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Operating cash flow$337.4M+75.3%

CapEx$4.5M+55.2%

Free cash flow$332.9M+75.6%

Valuation

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Market cap$9.66B-39.3%

Enterprise value$6.58B-41.5%

P/E12.7×-63.7×

P/S2.6×-1.7×

Profitability

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Gross margin34.4%+3.8pp

Operating margin10.3%—

Net margin20.4%+14.8pp

FCF margin19.8%—

Returns & leverage

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Return on equity14.1%+7.5pp

Debt / equity0.7×+0.4×

Current ratio12.4×+4.0×

Where this comes from

Reported directly by GameStop in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: GameStop’s 10-K, filed April 2, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does technology brands — goodwill impairment mean?: The non-cash charge recognized when the carrying amount of goodwill in the Technology Brands segment exceeds its implied fair value. This indicates that the expected future economic benefits from the segment's acquisitions have diminished. It is a critical indicator of management's assessment of the segment's long-term viability.