Goodwill, Net
 12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Net
GOODWILL, NET

The Company’s goodwill originated with the acquisitions of Evergreen Helicopters, Inc. in May 2013 and Air Amazonia in September 2013 and allocated to our three reportable segments based on their underlying net assets. As discussed in Note 13, we changed how we manage our business effective January 1, 2015, resulting in different reportable segments. Accordingly, the reportable segment information presented in this note for 2014 and 2013 has been conformed with the 2015 presentation.

Goodwill, net consisted of the following (in thousands):

 
Global Defense and Security
 
Commercial
Aviation Services
 
Manufacturing and MRO
 
Total
Balances as of December 31, 2013:
 
 
 
 
 
 
 
Goodwill, gross
$
207,128

 
$
22,308

 
$
5,542

 
$
234,978

Accumulated impairment loss
—

 
—

 
—

 
—

Goodwill, net
207,128

 
22,308

 
5,542

 
234,978

Activity during 2014:
 
 
 
 
 
 
 
Impairment loss
(21,272
)
 
—

 
—

 
(21,272
)
Purchase accounting adjustments
—

 
1,928

 
—

 
1,928

Fluctuations due to foreign currency translation adjustments
—

 
(393
)
 
—

 
(393
)
Balances as of December 31, 2014:
 
 
 
 
 
 
 
Goodwill, gross
207,128

 
23,843

 
5,542

 
236,513

Accumulated impairment loss
(21,272
)
 
—

 
—

 
(21,272
)
Goodwill, net
185,856

 
23,843

 
5,542

 
215,241

Activity during 2015:
 
 
 
 
 
 
 
Impairment loss
(49,823
)
 
—

 
—

 
(49,823
)
Fluctuations due to foreign currency translation adjustments
—

 
(1,710
)
 
—

 
(1,710
)
Balances as of December 31, 2015:
 
 
 
 
 
 
 
Goodwill, gross
207,128

 
22,133

 
5,542

 
234,803

Accumulated impairment losses
(71,095
)
 
—

 
—

 
(71,095
)
Goodwill, net
$
136,033

 
$
22,133

 
$
5,542

 
$
163,708



The Company conducts its annual test for goodwill impairment in the second quarter, and between annual tests when relevant events and circumstances occur. The goodwill impairment test first assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment results in the conclusion that the fair value of the reporting unit is less than the carrying value, the Company performs the first step of a two-step impairment test by calculating the fair value of the reporting unit and comparing that with the carrying value of the reporting unit. If the carrying value of the reporting unit exceeds its fair value, then the Company performs the second step of the goodwill impairment test, which is to measure the amount of any impairment loss. When the Company is required to perform the first step of the impairment test, it compares the reporting unit carrying value to its fair value using the income approach. The income approach estimates fair value by discounting the future cash flows expected to be generated by the reporting unit to its present value. The Company believes this is the most reliable indicator of fair value and is consistent with the approach a market place participant would use. The estimation of fair value utilizing the above approach includes numerous uncertainties which require significant judgment when making assumptions of the cost of capital, expected growth rates, selection of discount rates, as well as assumptions regarding general economic and business conditions, among other factors.

On January 1, 2015 the Company re-aligned its reporting unit structure which resulted in a reallocation of its goodwill to the new reporting units using the relative fair value approach. In the first quarter of 2015, due to the change in the reporting unit structure, the Company performed a goodwill impairment test on its Global Defense and Security reporting unit. The test resulted in an impairment charge of $49.8 million being recorded against the carrying amount of its goodwill which is included in the Company’s consolidated statements of operations for the first quarter of 2015.

Subsequent to the Company's re-organization into three operating reportable segments, the Company elected the second quarter of each fiscal year as the annual testing date for each reporting unit. During the second quarter of 2015, the Company performed the annual goodwill impairment test for the Global Defense and Security, Commercial Aviation Services, and Manufacturing & MRO reporting units. The Company assessed qualitative factors to determine whether it is more likely than not that the fair value of the reporting units are less than its carrying amount. As a result of this qualitative assessment, the Company determined it was not necessary to perform step one of the goodwill impairment tests.

In the fourth quarter of 2015, due to industry and market conditions, and the sustained decrease in the Company’s share price, the Company again assessed various qualitative factors and determined that a goodwill impairment test was warranted for all three of its reporting units. The Company performed the first step of the impairment test by calculating the fair value of each reporting unit and comparing that with the carrying value of each reporting unit. The fair value of each reporting unit exceeded their carrying values, and as a result, no goodwill impairment charges were recorded for any of the reporting units in the fourth quarter of 2015.