8Goodwill

The changes in goodwill during the six months ended April 1, 2016 and April 3, 2015 were as follows:


	April 1		April 3
	2016		2015
Balance at beginning of period	$	14,292	$	14,416
Acquisitions		2,338		-
Amount attributable to movements in foreign currency rates		42		(107)
Balance at end of period	$	16,672	$	14,309

We evaluate the carrying value of long-lived assets, including intangible assets subject to amortization, when events and circumstances warrant such an evaluation. During the second quarter of fiscal 2016, the Company re-evaluated its projections for its Diving reporting unit, based on lower than anticipated results due to continuing market dislocation and economic factors. In conducting this analysis, the Company evaluated its cash flows for the Diving reporting unit over a five-year period. Based on the Company’s goodwill assessment, the fair value of the Diving reporting unit exceeded its carrying value by approximately 9%. The Company believes its assumptions are reasonable, however, the fair value of the reporting unit is close to its carrying amount, including goodwill, and is sensitive to changes in assumptions. There can be no assurance that its estimates and assumptions made for purposes of its goodwill impairment testing, at the annual date and the interim testing date, will prove to be accurate predictions of the future. A sustained decline in Diving sales, unfavorable operating margins, lack of new product acceptance by consumers, changes in customer trends, an increase in the discount rate, and/or a decrease in our projected long-term growth rates used in the discounted cash flow model could result in significant changes to the goodwill impairment analysis going forward, including a potential significant goodwill impairment charge during a future statement period.