Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

The amounts for goodwill and changes to carrying value by reportable segment are as follows:



(millions)	Commercial			Aviation		Total
Balance as of December 31, 2017	$	369.0		$	62.7	$	431.7
Goodwill acquired	—			154.1		154.1
Foreign currency translation	(0.3		)	—		(0.3		)
Balance as of December 31, 2018	$	368.7		$	216.8	$	585.5
Purchase price adjustments	—			0.3		0.3
Foreign currency translation	0.2			—		0.2
Balance as of December 31, 2019	$	368.9		$	217.1	$	586.0

The Company tests goodwill at least annually for impairment (the Company has elected to annually test for potential impairment of goodwill on the first day of the fourth quarter) and tests more frequently if indicators are present or changes in circumstances suggest that impairment may exist. The indicators include, among others, declines in sales, earning or cash flows or the development of a material adverse change in business climate. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a reporting unit. The reporting units

are also its reportable segments of Commercial and Aviation. See Note 1. Significant Accounting Policies and Practices for additional detail on the Company's policy for assessing goodwill for impairment.

The Company completed a quantitative test (Step One) of goodwill impairment as of October 1, 2019 and concluded that the estimated fair values of each of the Company’s reporting units exceeded its carrying amount of net assets assigned to each reporting unit and therefore no further testing was required (Step Two). In conducting the October 1, 2019 goodwill impairment quantitative test (Step One), the Company analyzed actual and projected growth trends of the reporting units, gross margin, operating expenses and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) (which also includes forecasted five-year income statement and working capital projection, a market-based weighted average cost of capital and terminal values after five years). The Company also assesses critical areas that may impact its business including economic conditions, market related exposures, competition, changes in service offerings and changes in key personnel. As part of the October 1, 2019 goodwill assessment, the Company engaged a third-party to evaluate its reporting units’ fair values. No impairment was identified as a result of the goodwill impairment test performed for such period.