Goodwill

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



(millions)	Region One			Region Two			Region Three			Region Four			Region Five			Total
Balance as of December 31, 2013	$	163.8		$	143.8		$	37.0		$	62.6		$	32.2		$	439.4
Goodwill acquired	—			—			—			0.2			—			0.2
Foreign currency translation	(0.5		)	—						—			—			(0.5		)
Disposals (1)	(2.1		)	(2.3		)	(0.6		)	(0.1		)	(1.1		)	(6.2		)
Balance as of December 31, 2014	$	161.2		$	141.5		$	36.4		$	62.7		$	31.1		$	432.9
Foreign currency translation	(0.7		)	—			—			—			—			(0.7		)
Disposals (2)	—			(0.9		)	—			—			—			(0.9		)
Balance as of December 31, 2015	$	160.5		$	140.6		$	36.4		$	62.7		$	31.1		$	431.3

(1) In October 2014, the Company contributed all of the assets and liabilities of its proprietary Click and Park parking prepayment business in exchange for a 30 percent interest in the newly formed legal entity called Parkmobile, LLC. The contribution of the Click and Park business to the joint venture resulted in a loss of control of the subsidiary and therefore it was deconsolidated from the Company's financial statements. As a result of the deconsolidation, the Company was required to allocate $6.2 million of goodwill to the net carrying amount of the subsidiary's net assets contributed to the Parkmobile joint venture. The pro-rata allocation on the disposal of goodwill at the operating segment level was based on a relative fair value approach.

(2) In August 2015, certain assets, which met the definition of a business, were sold to a third-party in an arms-length transaction (see also Note 1. Significant Accounting Policies and Practices and Note 10. Fair Value for further detail on the sale of the business). The sale resulted in the disposal of specifically identifiable goodwill associated with the business of $0.9 million from Region Two.

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. See Note 1. Significant Accounting Policies and Practices for additional detail on the Company's policy for assessing goodwill for impairment.

Due to a change in the Company’s segment reporting effective January 1, 2015, the goodwill allocated to previous reporting units have been reallocated to new reporting units based on the relative fair value of the new reporting units. See also Note 19. Domestic and Foreign Operations for further disclosure on the Company’s change in reporting segments effective January 1, 2015.

As a result of the change in internal reporting segment information, the Company completed a quantitative test (Step One) of goodwill impairment as of January 1, 2015 and concluded that the estimated fair values of each of the Company’s reporting units exceeded its carrying amount of net assets assigned to that reporting unit and therefore no further testing was required (Step Two). In conducting the January 1, 2015 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 January 1, 2015 goodwill assessment, the Company engaged a third-party to evaluate its reporting units’ fair values. No impairment was recorded as a result of the goodwill impairment test performed.

The Company completed its annual goodwill impairment test as of October 1, 2015, using a quantitative test (Step One), and concluded that the estimated fair values of each of the Company's reporting units exceeded its carrying amount of net assets assigned to that reporting unit and therefore no further testing was required (Step Two). As part of the October 1, 2015 goodwill assessment, the Company engaged a third-party to evaluate its reporting units' fair values. No impairment was recorded as a result of the goodwill impairment test performed.

The reporting units are reported as Region One (North reporting unit), Region Two (South reporting unit), Region Three (New York Metropolitan tri-state area of New York, New Jersey and Connecticut reporting unit), Region Four (Airport transportation operations nationwide reporting unit) and Region Five (USA Parking reporting unit and event planning and transportation services reporting unit). For purposes of reportable segments, goodwill in Region Five is attributable to USA Parking and event planning and transportation services reporting units.