Goodwill

The following table summarizes the changes in goodwill for the years ended June 30, 2014 and 2015:



	MCE		MDS		Total
Balance at June 30, 2013	$	133,783	$	33,768	$	167,551
Goodwill adjustments during fiscal 2014	595		—		595
Balance at June 30, 2014 and 2015	$	134,378	$	33,768	$	168,146

In accordance with FASB ASC 350 Intangibles-Goodwill and Other “FASB ASC 350”, the Company determines its reporting units based upon whether discrete financial information is available, if management regularly reviews the operating results of the component, the nature of the products offered to customers and the market characteristics of each reporting unit. A reporting unit is considered to be an operating segment or one level below an operating segment also known as a component. MCE has four components with discrete financial information available which are reviewed by their segment manager; however, those four components are economically similar in nature and thus have been aggregated into a single reporting unit at the operating segment level. MDS is a sole component and the reporting unit is at the operating segment level. The Company determined that its reporting units are the same as its operating segments, MCE and MDS.

As defined by FASB ASC 350, goodwill is tested for impairment on an interim basis at the occurrence of certain triggering events or at a minimum on an annual basis. In fiscal 2015, there were no triggering events from continuing operations which required an interim goodwill impairment test.

The Company follows FASB ASC 350 in assessing whether the fair value of a reporting unit is less than its carrying amount. As of June 30, 2015, both MCE and MDS had goodwill balances and the annual impairment analysis was performed for each reporting unit in the fourth quarter of fiscal 2015. The results of the Company's step one interim goodwill impairment test indicated that the fair values of the MCE and MDS reporting units were substantially in excess of their carrying values. As such, step two of the goodwill impairment testing was not required. Consistent with prior years, the valuation was based upon a discounted cash flow analysis and corroborated by a market-based analysis which compares the trading multiples of public companies in similar lines of business.