Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying value of the goodwill is as follows:


	Security Solutions		Secure Networks		Total
Balance at December 31, 2020	$	—	$	14,916	$	14,916
Acquired goodwill	3,006		—		3,006
Balance at December 31, 2021	$	3,006	$	14,916	$	17,922

As discussed in Note 1 - Overview and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements, we reorganized our segment reporting in the fourth quarter of 2021 to align with how our CODM currently oversees the business, allocates resources and evaluates operating performance. As a result of the segment reorganization, we reported two operating and reportable segments: Security Solutions and Secure Networks.

The Security Solution segment consists of three reporting units: Secure Communications, Information Assurance / Xacta and Telos ID; while the Secure Networks segment also became its own reporting unit for purposes of testing goodwill.

The existing goodwill reported from prior years was previously identified under the Cyber Operations and Defense reporting unit, which was comprised of Information Assurance / Xacta and Secure Networks. We determined that the goodwill balance was specifically related to an acquisition associated within the Secure Networks reporting unit; therefore, the previous goodwill balance was allocated entirely under our updated reporting unit structure to Secure Networks. Our goodwill from the recent DFT acquisition is housed within the Telos ID reporting unit, which is part of the Security Solutions operating segment.

The net assets attributable to the reporting units are determined based upon the estimated assets and liabilities attributable to the reporting units in deriving its free cash flows. In addition, the estimate of the total fair value of our reporting units is compared to the market capitalization of the Company.

Goodwill is subject to annual impairment tests and in the interim if triggering events are present before the annual tests, we will assess impairment. At year-end, the Company performed its annual impairment test of goodwill for all of the reporting units. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the reporting units exceeded its carrying value. For the years ended December 31, 2021, 2020 and 2019, no impairment charges were taken.