Goodwill. During 2004, the Company recorded goodwill associated with a business combination, which represents the cost of an acquired entity over the net amounts assigned to assets acquired and liabilities assumed. In accordance with GAAP, goodwill is not amortized to earnings, but is assessed for impairment whenever events or circumstances indicate that impairment of the carrying value of goodwill is likely, but no less often than annually. If the carrying value of goodwill is determined to be impaired, it is reduced for the impaired value with a corresponding charge to earnings in the period in which it is determined to be impaired. During the third quarter of 2013, the Company performed a qualitative assessment of goodwill to determine whether it was more likely than not that the fair value of the Company's reporting unit was less than its carrying amount as a basis for determining whether it was necessary to perform the two-step goodwill impairment test. Based upon the results of the assessment, the Company determined that it was not likely that the Company's goodwill was impaired.
For the year ended December 31, 2013, the Company reduced the carrying value of goodwill by $23.8 million, reflecting the portion of the Company's goodwill related to assets sold or included in assets held for sale at December 31, 2013, primarily associated with the sale of 40 percent of Pioneer's interest in 207,000 net acres leased by the Company in the horizontal Wolfcamp Shale play in the southern portion of the Spraberry field in West Texas, and the planned sales of the Company's Alaska subsidiary and Barnett Shale net assets. See Note C for additional information regarding the Company's divestitures. At December 31, 2013, the Company performed a qualitative assessment of its remaining goodwill to determine whether it is more likely than not that the fair value of the Company's reporting unit is less than its carrying amount, and the Company determined that it is not likely that the Company's remaining goodwill is impaired.
