v3.22.4
Goodwill
 12 Months Ended
Dec. 31, 2022
Goodwill Goodwill
 
As of December 31, 2022, the Company had 10 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. In 2022, we performed a Step-1 analysis on all of our reporting units. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2022.
 
These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.
 
The following table presents goodwill by reportable segments and in total:
 
 WestEastCementTotal
Balance—January 2, 2021$586,209 $410,426 $204,656 $1,201,291 
Dispositions (1)(16,222)(21,841)— (38,063)
Foreign currency translation adjustments522 — — 522 
Balance—January 1, 2022$570,509 $388,585 $204,656 $1,163,750 
Dispositions (1)— (27,084)— (27,084)
Foreign currency translation adjustments(4,120)— — (4,120)
Balance—December 31, 2022$566,389 $361,501 $204,656 $1,132,546 
______________________
(1)Reflects goodwill derecognition from dispositions completed during 2021 and 2022, respectively.
Summit Materials, LLC  
Goodwill Goodwill
 
As of December 31, 2022, the Company had 10 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. In 2022, we performed a Step-1 analysis on all of our reporting units. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2022.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of
appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.
 
The following table presents goodwill by reportable segments and in total:
 WestEastCementTotal
Balance—January 2, 2021$587,209 $410,426 $204,656 $1,202,291 
Dispositions (1)(16,222)(21,841)— (38,063)
Foreign currency translation adjustments522 — — 522 
Balance—January 1, 2022$571,509 $388,585 $204,656 $1,164,750 
Dispositions (1)— (27,084)— (27,084)
Foreign currency translation adjustments(4,120)— — (4,120)
Balance—December 31, 2022$567,389 $361,501 $204,656 $1,133,546 
______________________
(1)Reflects goodwill derecognition from dispositions completed during 2021 and 2022, respectively.