Goodwill

As previously disclosed, the Company realigned its organizational structure as a result of a new management team and a renewed business strategy. In connection with this reorganization, the Company evaluated its historical geographic-based operating segments (North America, Europe, Latin America and Pacific Rim) in relation to GAAP and identified the following new operating segments: (i) North America Products, (ii) North America Services, (iii) International Products and (iv) International Services. The new operating segments became effective, on a prospective basis, beginning on April 1, 2013. Note that the Company's operating segments are also its reporting units (for goodwill assessment purposes) and reporting segments (for financial reporting purposes). In connection with the identification of the new operating segments, the Company allocated goodwill from the historical geographic-based reporting units to the new reporting units using a relative fair market value approach. See Note 1 and Note 14 for additional information.

The following table summarizes, as of April 1, 2013, Goodwill at the Company’s reporting segments, which has been allocated from the historical geographic-based reporting segments using a relative fair market value approach:



	North America Products			North America Services			International Products			International Services			Total
Goodwill (gross) at March 31, 2013	$	79,763		$	506,222		$	38,524		$	38,685		$	663,194
Accumulated impairment losses at March 31, 2013	(232		)	(277,132		)	(13,724		)	(26,709		)	(317,797		)
Goodwill (net) at March 31, 2013	$	79,531		$	229,090		$	24,800		$	11,976		$	345,397

Foreign currency translation adjustment	(9		)	36			391			1,286			1,704

Goodwill (gross) at December 31, 2013	$	79,754		$	506,258		$	38,915		$	39,971		$	664,898
Accumulated impairment losses at December 31, 2013	(232		)	(277,132		)	(13,724		)	(26,709		)	(317,797		)
Goodwill (net) at December 31, 2013	$	79,522		$	229,126		$	25,191		$	13,262		$	347,101

Also, as of April 1, 2013, the Company conducted an interim goodwill impairment assessment because data, relevant to a goodwill impairment assessment, was readily available through the reassignment of goodwill to the Company's new business segments using the relative fair market value approach. The first step of the goodwill impairment assessment, used to identify potential impairment, resulted in a surplus of fair value over carrying amount for each of our new reporting units, thus the new reporting units were considered not impaired as of April 1, 2013 and the second step of the impairment test was not necessary.

Consistent with prior years, the Company is conducting its annual goodwill impairment assessment as of the end of the second quarter of its fiscal year (September 28, 2013 for Fiscal 2014). Historically, this assessment was completed during the third quarter. However, given the downward adjustment in the Company’s revenue and profitability outlook for Fiscal 2014 in each reporting unit announced in November 2013 with the second fiscal quarter financial results and changes in outlook as a result of the Company’s efforts to transform into a more relevant and effective solution provider, the Company determined it was necessary to extend completion of its assessment process in order to take into account a contemporary outlook for the Company’s business units that are being developed in connection with Fiscal 2015 planning. As a result, it is expected that our annual goodwill impairment assessment will be completed during the fourth quarter of Fiscal 2014. The Company expects that the downward adjustment in its revenue and profitability outlook noted above and an increase in the Company’s weighted-average cost of capital (primarily driven by an increase in the risk-free interest rate) will decrease the fair value of our reporting units. A decrease in the fair value of our reporting units could result in a non-cash goodwill impairment charge, which could have a material adverse effect on our consolidated financial statements.