GOODWILL

Our goodwill at December 31, 2017 and 2016 is related to our acquisitions. We evaluate each reporting unit’s fair value as compared to its carrying value on October 1st of each year or more frequently if events or changes in circumstances indicate that the carrying value may exceed the fair value. Prior to 2017, we evaluated each reporting unit's fair value as compared to its carrying value on December 31, 2017. During Step 1 of the quantitative goodwill impairment test, 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 Machine Vision. As a result of the change to our operating segments in 2016, we 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.

As of December 31, 2017 and 2016, we did not have any goodwill that was identified as impaired. The increase in goodwill during 2017 and 2016 reflected the acquisitions completed in those periods and changes in foreign exchange rates.



December 31, 2017	Beginning Balance		Additions		Foreign Currency Translation		Ending Balance
Factory Metrology	$	37,861	$	2,357	$	2,941	$	43,159
Construction BIM-CIM	6,078		—		443		6,521
Public Safety Forensics	$	2,805	$	55	$	210	$	3,070
Total	$	46,744	$	2,412	$	3,594	$	52,750



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