(h) Property, Plant, and equipment (i) Goodwill 22 As of september 30, 2014, based on our calculations under the above noted approach, the fair value of the reporting unit  exceeded its carrying value by approximately $69.0 million or 74%. In performing these calculations, management used  its most reasonable estimates of the key assumptions discussed above. Based on management’s review, if any of these  individual key assumptions were to change, or if a combination of these key assumptions were to change, the fair value  of the reporting unit could be reduced below the carrying value. As a result, if our actual operating results and/or the key  assumptions utilized in management’s calculations differ from our expectations, it is possible that a future impairment  charge may be necessary. As the Company has elected our fiscal year-end as the annual impairment testing date, the Company assessed qualitative  factors as of December 31, 2014, and determined that as there were no material changes in the results of operations or  financial condition from the september 30, 2014 impairment test, it was more likely than not that the fair value of its  reporting unit exceeded its carrying amount at December 31, 2014. Factors considered included financial performance,  forecasts and trends, market cap, regulatory and environmental issues, macro-economic conditions, industry and market  considerations, raw material costs and management stability. Goodwill is tested for impairment annually, and will be tested for impairment between annual tests if an event occurs or  circumstances change that would indicate that the carrying amount may be impaired. Impairment testing for goodwill is  done at a reporting unit level. Reporting units are one level below the business segment level, but can be combined when  reporting units within the same segment have similar economic characteristics. An impairment loss generally would be  recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting  unit. As of september 30, 2014, the Company consists of a single reporting unit. In conjunction with a reassessment of our  reportable segments (see note 19), we performed step 1 of the goodwill impairment test as of september 30, 2014. We  utilized the guideline public company (“GpC”) method under the market approach and the discounted cash flows method  (“DCF”) under the income approach to determine the fair value of the reporting unit for purposes of testing the reporting  unit’s carrying value of goodwill for impairment. the GpC method derives a value by generating a multiple of eBItDA  through the comparison of the Company to similar publicly traded companies. the DCF approach derives a value based on  the present value of a series of estimated future cash flows at the valuation date by the application of a discount rate, one  that a prudent investor would require before making an investment in our equity securities. the key assumptions used in  our approach included: property, plant, and equipment amounts are reviewed for impairment whenever events or changes in circumstances  indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the  carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the  asset and its eventual disposition. the amount of the impairment loss to be recorded is calculated by the excess of the  asset’s carrying value over its fair value. property, plant, and equipment are stated at cost and are depreciated or amortized using the straight-line method over the  estimated useful lives of the assets or the related lease term, if shorter. estimated useful lives of property, plant, and equipment are as follows: Leasehold improvements  shorter of estimated useful life or remaining lease term Buildings and improvements  20 years  Machinery & equipment  7-10 years  Furniture, fixtures, computers & software  3-7 years • the reporting unit’s 2014 estimated financials and five-year projections of financial results, which were based  on our strategic plans and long-range forecasts. sales growth rates represent estimates based on current and  forecasted sales mix and market conditions. the profit margins were projected based on historical margins,  projected sales mix, current expense structure and anticipated expense modifications.  • the projected terminal value, which reflects the total present value of projected cash flows beyond the last  period in the DCF. this value reflects a growth rate for the reporting unit, which is approximately the same  growth rate of expected inflation into perpetuity.  • the discount rate determined using a Weighted Average Cost of Capital method (“WACC”), which considered  market and industry data as well as Company-specific risk factors.  • selection of guideline public companies which are similar to each other and to the Company.