Goodwill

The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded. Goodwill is tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of a reporting unit may be less than the carrying amount of the reporting unit.

The changes in the carrying amount of goodwill for the six months ended June 30, 2016 were as follows:



In millions	Climate		Industrial		Total
Net balance as of December 31, 2015	$	4,952.6	$	777.6	$	5,730.2
Acquisitions	—		12.8		12.8
Currency translation	18.8		1.9		20.7
Net balance as of June 30, 2016	$	4,971.4	$	792.3	$	5,763.7

The net goodwill balances at June 30, 2016 and December 31, 2015 include $2,496.0 million of accumulated impairment. The accumulated impairment relates entirely to a charge in the fourth quarter of 2008 associated with the Climate segment. In the second quarter of 2016, the Company acquired distributors of Industrial products that were previously independently owned. These acquisitions are not considered material for further disclosure.