7 Goodwill

Due to the new segment reporting effective as of January 1, 2015, the goodwill allocated to the previous reporting unit Passive Safety Systems has been reallocated to the new segments, Passive Safety and Electronics. The allocation was made based on the relative fair values of the two new segments as of January 1, 2015, see table below. The estimated relative fair values of the businesses transferred were determined using the discounted cash flow method taking into account expected long-term operating cash flow performance (for further information, see Note 1, Summary of significant accounting policies to the Consolidated Financial Statements, in the Company’s Annual Report on Form 10-K). The amount of goodwill held in the previous Active Safety Systems reporting unit was allocated to the new Electronics segment as this old reporting unit rolls up fully into the new Electronics segment.


Goodwill
Previous reporting units	Passive Safety Systems			Active Safety Systems¹⁾		Total
Balance December 31, 2014	$	1,586.2		$	7.8	$	1,594.0

New segments	Passive Safety			Electronics¹⁾		Total
Balance January 1, 2015 before goodwill reallocation	$	1,586.2		$	7.8	$	1,594.0
Allocation of goodwill due to change in segment reporting		(185.7	)		185.7		—
Balance January 1, 2015 after goodwill reallocation	$	1,400.5		$	193.5	$	1,594.0
Goodwill from business combination		—			84.9		84.9
Effect of currency translation		(10.9	)		—		(10.9	)
Balance September 30, 2015	$	1,389.6		$	278.4	$	1,668.0

1) As of January 1, 2015, the goodwill amount related to the reporting unit Active Safety Systems was allocated to the Electronics segment, shown in the table above.