NOTE 8. IMPAIRMENT LOSS

During fiscal 2026, the Company recorded an impairment loss of $2.7 million related to goodwill and other intangible assets in its U.K. financial services business unit. The business unit had been suffering from increased losses resulting from loss of client accounts, which was accelerated by the departure of a former executive of the acquired businesses. The impairment loss included intangible assets of $0.2 million relating to brand name and $0.5 million relating to customer relationships. The Company determined the fair value of the reporting unit using multiple methods, including discounted cash flows and pricing of comparable companies. In addition to the $2.7 million impairment charge related to the U.K. financial services business unit, the Company also recorded a $0.9 million impairment charge related to an equity investment, as further described in Note 5. Certain Balance Sheet Details.