Note 10. Goodwill

Changes in the carry value of goodwill allocated segment are as follows (in millions):



	Network Enablement			Service Enablement		Optical Security and Performance Products		Total
Balance as of July 2, 2016 (1)	$	143.8		$	—	$	8.3	$	152.1
Currency translation and other adjustments	(0.5		)	—		—		(0.5		)
Balance as of July 1, 2017 (2)	$	143.3		$	—	$	8.3	$	151.6
Acquisitions (4)	190.1			—		—		190.1
Currency translation and other adjustments	(5.4		)	—		—		(5.4		)
Balance as of June 30, 2018 (3)	$	328.0		$	—	$	8.3	$	336.3


(1)	Gross goodwill balances for NE, SE and OSP were $445.7 million, $272.6 million and $92.8 million, respectively as of July 2, 2016. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of July 2, 2016.


(2)	Gross goodwill balances for NE, SE and OSP were $445.2 million, $272.6 million and $92.8 million, respectively as of July 1, 2017. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of July 1, 2017.


(3)	Gross goodwill balances for NE, SE and OSP were $629.9 million, $272.6 million and $92.8 million, respectively as of June 30, 2018. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of June 30, 2018.


(4)	See “Note 7. Acquisitions” of the Notes to Consolidated Financial Statement for additional information related to our acquisitions.

The following table presents gross goodwill and aggregate impairment balances for the fiscal years ended June 30, 2018, and July 1, 2017, (in millions):



	Year Ended
	June 30, 2018			July 1, 2017
Gross goodwill balance	$	995.3		$	810.6
Accumulated impairment losses	(659.0		)	(659.0		)
Net goodwill balance	$	336.3		$	151.6

Impairment of Goodwill

The Company tests goodwill at the reporting unit level for impairment annually, during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that the asset may be impaired. The Company determined that, based on its organizational structure and the financial information that is provided to and reviewed by management during fiscal 2018 and 2017, its reporting units were NE, SE and OSP.

Fiscal 2018

For fiscal 2018, the Company reviewed goodwill under the qualitative assessment of the authoritative guidance for impairment testing and concluded that it was more likely than not that the fair value of each reporting unit exceeded its carrying amount. Accordingly, there was no indication of impairment.

Fiscal 2017

For fiscal 2017, the Company performed the quantitative goodwill impairment test in accordance with the authoritative guidance for impairment test of the NE reporting unit. Based on the quantitative analysis, the Company determined that the fair value of NE is above its carrying amount. The Company reviewed goodwill of the OSP reporting unit under the qualitative assessment of the authoritative guidance for impairment testing and concluded that it was more likely than not that the fair value of OSP exceeded its carrying amount. Accordingly, there was no indication of impairment.

Fiscal 2016

If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is required. Otherwise, no further testing is required.

During the fourth quarter of fiscal 2016, the Company performed a qualitative assessment of its SE segment, at which time it was determined that it was more likely than not that the segments fair value was less than its carrying value. After performing a quantitative test including a hypothetical purchase price allocation to determine the implied fair value of the SE reporting unit’s goodwill, an impairment charge of $91.4 million was recorded in the fourth quarter of fiscal 2016.