Goodwill

The Company has two reporting units, Energy Chemistry Technologies and Consumer and Industrial Chemistry Technologies, which have existing goodwill balances at December 31, 2016.

Goodwill is tested for impairment annually in the fourth quarter, or more frequently if circumstances indicate a potential impairment. During annual goodwill impairment testing during the years ended December 31, 2016 and 2014, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step goodwill impairment test that the Company has historically used. The Company concluded that it was not more likely than not that goodwill was impaired as of the fourth quarter of 2016 and 2014, and therefore, further testing was not required.

During annual goodwill impairment testing during the year ended December 31, 2015, the Company assessed the qualitative factors and concluded it was not more likely than not that there was an impairment of goodwill for the Consumer and Industrial Chemistry Technologies reporting unit. However, the Company was not able to conclude that it was not more likely than not that fair value of the Energy Chemistry Technologies reporting unit exceeded its carrying value. Therefore, the Company performed the Step 1 impairment test for this reporting unit. The result of the Step 1 test indicated that the fair value of the Energy Chemistry Technologies reporting unit exceeded its carrying amount. Therefore, no further testing was required for this reporting unit.

No impairments of goodwill were recognized during the years ended December 31, 2016, 2015, and 2014.

Changes in the carrying value of goodwill for each reporting unit are as follows (in thousands):



	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Total
Balance at December 31, 2014:
Goodwill	$	36,318	$	19,480	$	55,798
Accumulated impairment losses	—		—		—
Goodwill balance, net	36,318		19,480		55,798
Activity during the year 2015:
Goodwill impairment recognized	—		—		—
Acquisition goodwill recognized	—		—		—
Balance at December 31, 2015:
Goodwill	36,318		19,480		55,798
Accumulated impairment losses	—		—		—
Goodwill balance, net	36,318		19,480		55,798
Activity during the year 2016:
Goodwill impairment recognized	—		—		—
Acquisition goodwill recognized	862		—		862
Balance at December 31, 2016:
Goodwill	37,180		19,480		56,660
Accumulated impairment losses	—		—		—
Goodwill balance, net	$	37,180	$	19,480	$	56,660