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 three months ended March 31, 2017 were as follows:



In millions	Climate		Industrial		Total
Net balance as of December 31, 2016	$	4,879.1	$	779.3	$	5,658.4
Currency translation	30.2		5.5		35.7
Net balance as of March 31, 2017	$	4,909.3	$	784.8	$	5,694.1

The net goodwill balances at March 31, 2017 and December 31, 2016 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.