GOODWILL

The following is a summary of the changes in the carrying value of the Company’s goodwill, which was included under the caption of Other Assets in the accompanying Consolidated Balance Sheets, for the years ended December 31, 2017 and 2016. The goodwill is related to the Company’s acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd.



	Carrying Value
	2017			2016
Goodwill, January 1,	$	1,812		$	1,938
Impairments	(1,909		)	—
Currency translation	97			(126		)
Goodwill, December 31,	$	—		$	1,812

On December 17, 2017, the Company announced plans to divest its recruitment and talent management businesses, inclusive of the China reporting unit (see Note 21). As a result, on December 31, 2017, the Company applied ASC 350-20-35, including the updated guidance from ASU 2017-04 which the Company adopted in 2017, and performed quantitative assessments to determine whether it was more likely than not that the fair value of its China reporting unit was less than its carrying value. As a result of the planned divestiture, the Company estimated the market value of the reporting unit based on the estimated purchase price for the planned divestiture. The Company determined the fair value of the reporting unit did not exceed its carrying value and goodwill was considered impaired. In accordance with ASU 2017-04, the Company calculated the impairment charge as the difference between the carrying amount and the fair value of the reporting unit. For the year ended December 31, 2017, an impairment charge was recognized for $1,909.

On October 1, 2016, the Company applied ASC 350-20-35, and performed quantitative assessments to determine whether it was more likely than not that the fair value of its China reporting unit was less than its carrying value. At the conclusion of its assessment, the Company determined the fair value of the reporting unit exceeded its carrying value. As such, the Company determined that no impairment of goodwill had taken place. At December 31 2016, the Company performed additional assessment with respect to goodwill and determined that no impairment existed at its China reporting unit as of December 31, 2016.