Goodwill

6 Months Ended

Mar. 31, 2015

7. GOODWILL

Changes to the carrying amount of consolidated goodwill by segment for the six months ended 31 March 2015 are as follows:


	Industrial		Industrial		Industrial		Industrial
	Gases–		Gases–		Gases–		Gases–		Materials
	Americas		EMEA		Asia		Global		Technologies			Total
Balance at 30 September 2014	$	327.2	$	433.3	$	140.0	$	21.4	$	315.4	$	1,237.3
Acquisitions and adjustments		2.2		3.2		-		-		-		5.4
Currency translation and other		(9.8)		(58.5)		(4.0)		(1.2)		(13.8)		(87.3)
Balance at 31 March 2015	$	319.6	$	378.0	$	136.0	$	20.2	$	301.6	$	1,155.4


		31 March		30 September
		2015		2014
Goodwill, gross	$	1,427.6	$	1,522.1
Accumulated impairment losses^(A)		(272.2)		(284.8)
Goodwill, net	$	1,155.4	$	1,237.3

^(A)Amount is attributable to the Industrial Gases – Americas segment and includes currency translation of $33.0 and $20.4 as of 31 March 2015
and 30 September 2014, respectively.

Due to the reorganization of our business effective as of 1 October 2014, we conducted a goodwill impairment test in the first quarter of 2015 on our thirteen reporting units. We determined that the fair value of all of our reporting units, except Latin America within the Industrial Gases – Americas segment, substantially exceeded their carrying value. The Latin America reporting unit is composed predominately of our Indura business acquired by the Company in 2012, with business units in Chile, Colombia, and other Latin America countries. In the fourth quarter of 2014, we recorded an impairment of goodwill of $305.2 related to this reporting unit. As of 1 October 2014, the fair value of our Latin America reporting unit exceeded its carrying value by approximately 10% primarily due to depreciation, amortization, and the impact of a Chilean tax rate change which had previously been reflected in the determination of the fair value of the reporting unit but not reflected in the carrying value until the enactment date. The fair value of the Latin America reporting unit at 1 October 2014 was estimated based on a similar outlook and assumptions as those used in the 2014 impairment testing. As of 31 March 2015, the carrying value of Latin America goodwill was $223.0, or approximately 1.3% of consolidated total assets.

Management judgement is required in the determination of each assumption utilized in the valuation model, and actual results could differ from the estimates. Revenue growth and EBITDA margin assumptions are two primary drivers of the fair value of our Latin America reporting unit, and these assumptions are underpinned by our expectations for long-term manufacturing growth in the region. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth fiscal quarter and whenever there are indicators of potential impairment.