GOODWILL

Our goodwill at December 31, 2016 and 2015 is related to our previous acquisitions. We evaluate each reporting unit’s fair value as compared to its carrying value on December 31 of each year or more frequently if events or changes in circumstances indicate that the carrying value may exceed the fair value. We first perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and if it is necessary to perform the two-step goodwill impairment test. If Step 1 of the quantitative goodwill impairment test is performed, the fair value of the reporting units is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved for each reporting unit and a market approach. The key assumptions used in the discounted cash flow model include discount rates, growth rates, cash flow projections and terminal value rates. These rates are susceptible to change and require significant management judgment. The market approach relies on an analysis of publicly-traded companies similar to us and derives a range of revenue and profit multiples. The publicly-traded companies used in the market approach are selected based on our defined peer group. The resulting multiples are then applied to each reporting unit to determine fair value. Impairments to goodwill are charged against earnings in the period the impairment is identified.

During 2016, we realigned our organizational structure to focus on five operating segments: Factory Metrology, Construction BIM-CIM, Product Design, Public Safety Forensics, and 3D Solutions. As a result of the change to our new operating segments in 2016, we have realigned our reporting units for which goodwill was tested as of December 31, 2016: Factory Metrology, Construction BIM-CIM and Public Safety Forensics as shown in the table below. Goodwill amounts as of and for the year ended December 31, 2015 were reclassified to conform to the current period presentation.

As of December 31, 2016 and 2015, we did not have any goodwill that was identified as impaired. The increase in goodwill during 2016 and 2015 reflected the acquisitions completed in those periods, partially offset by changes in foreign exchange rates.



December 31, 2016	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Factory Metrology	$	21,360	$	16,709	$	(208	)	$	37,861
Construction BIM-CIM	3,429		2,682		(33		)	6,078
Public Safety Forensics	$	1,582	$	1,238	$	(15	)	$	2,805
Total	$	26,371	$	20,629	$	(256	)	$	46,744



December 31, 2015	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Factory Metrology	$	15,556	$	7,103	$	(1,299	)	$	21,360
Construction BIM-CIM	2,497		1,140		(208		)	3,429
Public Safety Forensics	$	1,152	$	526	$	(96	)	$	1,582
Total	$	19,205	$	8,769	$	(1,603	)	$	26,371