Goodwill

The Company tests goodwill at least annually for impairment. The Company tests more frequently if indicators are present or changes in circumstances suggest that impairment may exist. These indicators include, among others, declines in sales, earnings or cash flows, or the development of a material adverse change in the business climate. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment.

During 2016, the Company voluntarily changed its annual goodwill testing date from the end of the fourth quarter, December 31, to the beginning of the fourth quarter, October 1. The Company believes this change in the method of applying the accounting principle is preferable, as it more closely aligns the annual impairment testing date with the most current information from the budgeting and strategic planning process and provides management with additional time to complete its annual assessment in advance of our year-end reporting. The change did not delay, accelerate or avoid an impairment charge. This change was not applied retrospectively, as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change has been applied prospectively.

In the fourth quarter of 2016, the Company performed a quantitative impairment analysis that did not result in an impairment charge for either the BioStim or Biologics reporting units, the only reporting units with goodwill. In 2015 and 2014, the Company performed qualitative assessments for its annual goodwill impairment analysis, which did not result in any impairment charge. This qualitative analysis considered all relevant factors specific to the reporting units, including macroeconomic conditions, industry and market considerations, overall financial performance and relevant entity-specific events.

The following table presents the net carrying value of goodwill by reportable segment:

	December 31,
(U.S. Dollars, in thousands)	2016		2015
BioStim	$	42,678	$	42,678
Biologics		10,887		10,887
Extremity Fixation		—		—
Spine Fixation		—		—
	$	53,565	$	53,565