Goodwill

On December 31, 2016, the Company completed the annual reviews of the carrying value of goodwill in its E&P Technology and Services and Optimization Software & Services reporting units and noted no impairments. The qualitative assessment concluded it was more likely than not that the fair values of the Company’s E&P Technology & Services, and Optimization Software & Services reporting units exceeded their carrying values.

In 2014, the Company recorded an impairment charge of $21.9 million related to its goodwill in its Devices reporting unit. For goodwill testing purposes, the litigation contingency accrual of $123.8 million as of December 31, 2014 was assigned to this reporting unit. Based on this accrual and the recording of a valuation allowance on substantially all of the Company’s net deferred tax assets, this reporting unit’s carrying value was negative as of December 31, 2014. The negative carrying value required the Company to perform step 2 of the impairment test on Devices; the test determined that the goodwill associated with the Devices reporting unit was impaired. The Company also recorded a $1.4 million impairment of certain intangible assets related to customer relationship within the E&P Technology & Services segment at December 31, 2014.

The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 (in thousands):



	E&P Technology & Services		Optimization Software & Services			Total
Balance at January 1, 2015	$	2,943	$	24,445		$	27,388
Impact of foreign currency translation adjustments	—		(1,114		)	(1,114		)
Balance at December 31, 2015	2,943		23,331			26,274
Impact of foreign currency translation adjustments	—		(4,066		)	(4,066		)
Balance at December 31, 2016	$	2,943	$	19,265		$	22,208