(JE), a publicly traded company that produces and sells products in several sectors of the U.S. economy. One of JE's major segments, which meets the Financial Accounting Standards Board (FASB) definition of an operating segment is its semiconductor business comprised of two subsidiary companies: Dynamic Technologies (80 percent owned and publicly traded), and ZD Systems (wholly owned).

Dynamic Technologies (hereafter, Dynamic) is headquartered in the northeastern section of the U.S. and specializes in the manufacture of electronic sensors and indicators used on automated production systems in North America, Europe, and Asia. In 2011, JE acquired 80 percent of Dynamic's common stock, a transaction resulting in $150 million of recognized goodwill. ZD Systems (hereafter, ZD), a company headquartered in the mid-western section of the U.S., manufactures sensor-type devices used solely for agricultural machines and systems in the U.S. At the time of the acquisition of ZD in early 2006, JE recorded $50 million of goodwill. While the two subsidiaries are classified within the same segment for segment reporting purposes.
 

 Required:

1) If JE should be combined or separated for the purposes of the goodwill analysis. Explain. Why is this important?
 

2) Briefly explain what combined and separated reporting are and its requirements.