Please answer it. Thank you!
Prepare a table or schedule showing individual goodwill and intangible assets. The table should include the cost of each asset category at the end of the year and related amortization rates (this information is in the notes do not calculate). If amortization is not provided explain briefly why. For each item, indicate whether or not the net book value increased or decreased from the prior year to the current year.
7. GOODWILL AND INTANGIBLE ASSETS Recorded as: The recoverable amount of the Company's CGUs is determined based on value-in-use calculations. These calculations use estimated cash flow projections based on financial plans approved by the Board covering five-year periods and discount rates based on weighted average cost of capital of like businesses that range between 10\% and 13\% per annum for the Alexander Dennis Limited ("ADL") and North American bus/coach manufacturing CGUs, between 12% and 14\% for the ARBOC CGU, and between 8% and 13% per annum for the NFI parts - aftermarket parts and ADL parts CGU. Cash flows beyond this period are extrapolated using a steady estimated growth rate based on the long-term average annual growth rate of 3% for each industry in which the CGUs operate. Management has determined planned cash flows based on a projected production schedule, past performance and expectations of market development. The discount rates used reflect specific risks relating to the relevant CGUs. The impacts of the COVID:19, and the global supply chain issues have impacted the cash flow projections for all of the CGUs. Sensitivity testing is conducted as part of the annual impairment tests. Management believes that any reasonable change in the key assumptions used to determine the recoverable amounts would not result in an impairment at the North American bus/coach manufacturing CGU, ADL manufacturing CGU or aftermarket parts CGU. Impairment of the remaining CGUs may result if one of the following changes occurs: ARBOCCGU - the cash flow projections are lower by 18.8% annually; - the long-term average annual growth rate is decreased by 3.1%; or - the discount rate is higher by at least 2.0%. ADDL manufacturing C GU - the discount rate is higher by at least 3.2%. ADL parts CGU - the discount rate is higher by at least 3.5% GOODWILL AND INTANGIBLE ASSETS (Continued) During the third quarter of 2020, the Company announced its commitment to a significant restructuring program called "NFI Forward" (see Note 29). The NFI Forward program combined the North American aftermarket parts operations of ADL and NFI parts. As a result of this combination, the Company reallocated $6.2 million of goodwill and $10.5 million of intangible assets from the ADL aftermarket parts operations CGU to the NFI parts - aftermarket parts operations CGU for impairment testing purposes (note 30). Based upon historical operating results, management's forecasts and business plans, the Company's trade names were assigned an indefinite life, except for the 'NABI Parts" tradename (net book value of $1,238 at January 2, 2022) which is amortized over its useful life, which ends in 2025. 7. GOODWILL AND INTANGIBLE ASSETS Recorded as: The recoverable amount of the Company's CGUs is determined based on value-in-use calculations. These calculations use estimated cash flow projections based on financial plans approved by the Board covering five-year periods and discount rates based on weighted average cost of capital of like businesses that range between 10\% and 13\% per annum for the Alexander Dennis Limited ("ADL") and North American bus/coach manufacturing CGUs, between 12% and 14\% for the ARBOC CGU, and between 8% and 13% per annum for the NFI parts - aftermarket parts and ADL parts CGU. Cash flows beyond this period are extrapolated using a steady estimated growth rate based on the long-term average annual growth rate of 3% for each industry in which the CGUs operate. Management has determined planned cash flows based on a projected production schedule, past performance and expectations of market development. The discount rates used reflect specific risks relating to the relevant CGUs. The impacts of the COVID:19, and the global supply chain issues have impacted the cash flow projections for all of the CGUs. Sensitivity testing is conducted as part of the annual impairment tests. Management believes that any reasonable change in the key assumptions used to determine the recoverable amounts would not result in an impairment at the North American bus/coach manufacturing CGU, ADL manufacturing CGU or aftermarket parts CGU. Impairment of the remaining CGUs may result if one of the following changes occurs: ARBOCCGU - the cash flow projections are lower by 18.8% annually; - the long-term average annual growth rate is decreased by 3.1%; or - the discount rate is higher by at least 2.0%. ADDL manufacturing C GU - the discount rate is higher by at least 3.2%. ADL parts CGU - the discount rate is higher by at least 3.5% GOODWILL AND INTANGIBLE ASSETS (Continued) During the third quarter of 2020, the Company announced its commitment to a significant restructuring program called "NFI Forward" (see Note 29). The NFI Forward program combined the North American aftermarket parts operations of ADL and NFI parts. As a result of this combination, the Company reallocated $6.2 million of goodwill and $10.5 million of intangible assets from the ADL aftermarket parts operations CGU to the NFI parts - aftermarket parts operations CGU for impairment testing purposes (note 30). Based upon historical operating results, management's forecasts and business plans, the Company's trade names were assigned an indefinite life, except for the 'NABI Parts" tradename (net book value of $1,238 at January 2, 2022) which is amortized over its useful life, which ends in 2025
