Note 10: Goodwill

Goodwill is recorded on the acquisition date of an entity. During the measurement period ended first quarter 2019, the Company could record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. The Universal acquisition on February 28, 2018 resulted in $20.5 million of goodwill, which included a measurement period adjustment of a $1.6 million reduction recorded during the second and fourth quarters of 2018 of $1.4 million and $200,000, respectively. No additional measurement period adjustments were recorded during 2019. Details regarding the acquisition are discussed in Note 2 of these Notes to Consolidated Financial Statements.

The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were:


	2019		2018
Balance as of January 1	$	22,310	$	1,800
Goodwill acquired during the year		-		22,069
Measurement period adjustments		-		(1,559)
Balance as of December 31	$	22,310	$	22,310

Goodwill is tested for impairment on an annual basis as of November 30, or whenever events or changes in circumstances indicate the carrying amount of goodwill exceeds its implied fair value. The Company’s fair value exceeded the Company’s carrying value; therefore, it was concluded goodwill is not impaired. No events or changes in circumstances have occurred since the annual impairment test that would suggest it was more likely than not goodwill impairment existed. For additional details related to impairment testing, see the “Goodwill” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.