Note 7. Goodwill

The following table analyzes goodwill for 2015 and 2014.


(in millions)	Fuel Specialties			Performance Chemicals			Octane Additives			Total
At January 1, 2014
Gross cost ⁽¹⁾	$	141.1		$	46.8		$	236.5		$	424.4
Accumulated impairment losses		0.0			0.0			(236.5	)		(236.5	)

Net book amount		141.1			46.8			0.0			187.9

Exchange effect		(0.3	)		(0.1	)		0.0			(0.4	)
Acquisitions		88.1			0.0			0.0			88.1
Adjustments to purchase price allocation		0.5			0.0			0.0			0.5
At December 31, 2014
Gross cost ⁽¹⁾		229.4			46.7			236.5			512.6
Accumulated impairment losses		0.0			0.0			(236.5	)		(236.5	)

Net book amount		229.4			46.7			0.0			276.1

Exchange effect		(0.2	)		0.0			0.0			(0.2	)
Disposals		0.0			(7.6	)		0.0			(7.6	)
Adjustments to purchase price allocation		(0.9	)		0.0			0.0			(0.9	)
At December 31, 2015
Gross cost ⁽¹⁾		228.3			39.1			236.5			503.9
Accumulated impairment losses		0.0			0.0			(236.5	)		(236.5	)

Net book amount	$	228.3		$	39.1		$	0.0		$	267.4

(1)	Gross cost is net of $8.7 million, $0.3 million and $289.5 million of historical accumulated amortization in respect of the Fuel Specialties, Performance Chemicals and Octane Additives reporting segments, respectively.

The Company’s reporting units, the level at which goodwill is tested for impairment, are consistent with the reportable segments: Fuel Specialties, Performance Chemicals and Octane Additives. The components in each segment (including products, markets and competitors) have similar economic characteristics and the segments, therefore, reflect the lowest level at which operations and cash flows can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company.

The Company assesses goodwill for impairment on at least an annual basis, initially based on a qualitative assessment to determine whether it is more likely than not that the fair value of a segment is less than the carrying amount. If a potential impairment is identified then a two-step impairment test is followed.

The Company performs its annual impairment assessment in respect of our Fuel Specialties and Performance Chemicals goodwill as at December 31, 2015. At this date we had $228.3 million and $39.1 million of goodwill relating to our Fuel Specialties and Performance Chemicals segments, respectively. Our impairment assessment concluded that there had been no impairment of goodwill in respect of those reporting segments. For the years ended December 31, 2014 and 2013 the Company performed annual impairment tests and concluded that there had been no impairment of goodwill in respect of those reporting segments at those balance sheet dates.

We believe that where appropriate the assumptions used in our impairment assessments are reasonable, but that they are judgmental, and variations in any of the assumptions may result in materially different calculations of any potential impairment charges.