Note 6—Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2015 are as follows (in thousands):

	Traditional Toys and Electronics			Role Play, Novelty and Seasonal Toys		Total
Balance, January 1, 2014:
Goodwill	$	25,265		$	19,611	$	44,876
Adjustments to goodwill for foreign currency translation		(384	)		—		(384	)
Balance December 31, 2014:	$	24,881		$	19,611	$	44,492
Balance, January 1, 2015:
Goodwill	$	24,881		$	19,611	$	44,492
Adjustments to goodwill for foreign currency translation		(293	)		—		(293	)
Balance December 31, 2015:	$	24,588		$	19,611	$	44,199

The Company assesses goodwill and indefinite-lived intangible assets for impairment on an annual basis by reviewing relevant qualitative and quantitative factors. More frequent evaluations may be required if the Company experiences changes in its business climate or as a result of other triggering events that take place. If carrying value exceeds fair value, a possible impairment exists and further evaluation is performed.

The Company assessed its goodwill for impairment as of October 1, 2015 for each of its reporting units by evaluating qualitative factors, including, but not limited to, the performance of each reporting unit, general economic conditions, access to capital, the industry and competitive environment, the interest rate environment. The Company prepared step-one of its impairment model. The valuation of goodwill involves a high degree of judgment and uncertainty related to key assumptions. Due to the subjective nature of the impairment analysis, significant changes in the assumptions used to develop the estimate could materially affect the conclusion regarding the future cash flows necessary to support the valuation of goodwill.

Based on the Company’s assessment, it determined that the fair value of its reporting units were not less than the carrying amounts. As such, the Company determined there was no impairment to be recorded.