10. GOODWILL

Changes to the carrying amount of consolidated goodwill by segment are as follows:



	Industrial Gases– Americas			Industrial Gases– EMEA			Industrial Gases– Asia		Industrial Gases– Global		Total
Goodwill, net at 30 September 2015	$	297.6		$	386.5		$	133.1	$	19.9	$	837.1
Currency translation	11.5			(5.9		)	2.1		.3		8.0
Goodwill, net at 30 September 2016	$	309.1		$	380.6		$	135.2	$	20.2	$	845.1
Impairment loss	(145.3		)	—			—		—		(145.3		)
Acquisitions	—			3.5			—		—		3.5
Currency translation	(.1		)	18.3			—		—		18.2
Goodwill, net at 30 September 2017	$	163.7		$	402.4		$	135.2	$	20.2	$	721.5



30 September	2017			2016			2015
Goodwill, gross	$	1,138.7		$	1,103.7		$	1,080.8
Accumulated impairment losses	(417.2		)	(258.6		)	(243.7		)
Goodwill, net	$	721.5		$	845.1		$	837.1

We review goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable. As described in Note 2, New Accounting Guidance, we elected to early adopt new accounting guidance that simplifies the test for goodwill impairment during the third quarter of fiscal year 2017.

For the first nine months of fiscal year 2017, volumes declined in our Latin America reporting unit (LASA), and overall revenue growth did not meet expectations. Due to weak economic conditions in Latin America and expectations for continued volume weakness in the Latin American countries and markets in which we operate, we lowered our long-term growth projections. We conducted an interim impairment test of the goodwill associated with LASA within the Industrial Gases – Americas segment as of 30 June 2017. As a result, we recorded a noncash goodwill impairment charge of $145.3, which has been reflected on our consolidated income statements within “Goodwill and intangible asset impairment charge.” This charge was not deductible for tax purposes and has been excluded from segment operating income.

LASA includes assets and goodwill associated with operations in Chile and other Latin American countries. We estimated the fair value of LASA based on two valuation approaches, the income approach and the market approach. We reviewed relevant facts and circumstances in determining the weighting of the approaches.

Under the income approach, we estimated the fair value of LASA based on the present value of estimated future cash flows. Cash flow projections were based on management’s estimates of revenue growth rates and EBITDA margins, taking into consideration business and market conditions for the Latin American countries and markets in which we operate. We calculated the discount rate based on a market-participant, risk-adjusted weighted average cost of capital, which considers industry‑specific rates of return on debt and equity capital for a target industry capital structure, adjusted for risks associated with business size and geography.

Under the market approach, we estimated fair value based on market multiples of revenue and earnings derived from publicly-traded industrial gases companies and regional manufacturing companies, adjusted to reflect differences in size and growth prospects.

Management judgment is required in the determination of each assumption utilized in the valuation model, and actual results could differ from our estimates.

The accumulated impairment losses of $417.2 as of 30 September 2017 are attributable to LASA within the Industrial Gases– Americas segment and include the LASA impairment charge recorded in fiscal year 2014 as well as the impacts of currency translation on the losses.

Prior to completing the LASA goodwill impairment test, we tested the recoverability of LASA’s long-lived assets and other indefinite-lived intangible assets. Refer to Note 11, Intangible Assets, for additional information.

During the fourth quarter of 2017, we conducted our annual goodwill impairment test. We determined that the fair value of all our reporting units exceeded their carrying value except LASA, for which the fair value equaled the carrying value.