Goodwill

The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded. Goodwill is tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset may be less than the carrying amount of the asset.

The changes in the carrying amount of goodwill are as follows:



	Nonwovens
In thousands	Americas			Europe			Asia			Oriented Polymers		Total
January 1, 2011	$	—		$	2,253		$	—		$	—	$	2,253
Elimination of Predecessor	—			(2,308		)	—			—		(2,308		)
Acquisition of PGI	46,428			—			39,948			—		86,376
Acquisitions	—			—			—			—		—
Impairment	(448		)	—			(7,199		)	—		(7,647		)
Translation	—			55			1,817			—		1,872
Other	—			—			—			—		—
December 31, 2011	$	45,980		$	—		$	34,566		$	—	$	80,546
Acquisitions	—			—			—			—		—
Impairment	—			—			—			—		—
Translation	—			—			62			—		62
Other	—			—			—			—		—
December 29, 2012	$	45,980		$	—		$	34,628		$	—	$	80,608

As of December 29, 2012, the Company had recorded goodwill of $80.6 million. The balance primarily relates to the Merger on January 28, 2011, in which $86.4 million was recorded as goodwill.

During the fourth quarter of 2011, the Company performed its annual impairment test of goodwill in accordance with ASC 350. Utilizing an outside valuation expert, the fair value Company's reporting units were determined based on a discounted cash flow model (income approach valuation technique). Management believes the estimates, judgments and assumptions were appropriate in the circumstances and based these assumptions on market and geographic risks unique to each reporting unit. As a result, the Company recorded a $7.6 million impairment charge to goodwill in the fourth quarter of 2011, attributable to four of its twelve reporting units. The Company does not have any accumulated impairment losses other than the amounts recorded during 2011.

In April 2012, the Company approved the internal redesign and restructuring of its global operations for the purposes of realigning and repositioning the Company to consolidate the benefits of its global footprint, align resources and capabilities with future growth opportunities and provide for a more efficient structure to serve existing markets. As part of the change, the Company eliminated the Latin America Nonwovens segment and merged it with the U.S. Nonwoven segment to create the Americas Nonwoven segment.

During the fourth quarter of 2012, the Company performed its annual impairment test of goodwill in accordance with ASC 350. As a result, the Company determined that the fair value of its reporting units exceeded their respective carrying values. Therefore, no impairment charges were recorded during 2012. However, two of the Company's reporting units failed step 1 of the impairment test, but did not have a goodwill impairment loss in step 2 as the implied fair value of goodwill in each of the reporting units exceeded its respective carrying amount.