Goodwill

Goodwill resulting from the Company's acquisitions is carried as an asset on the Consolidated Balance Sheets and is not amortized, but is evaluated annually to determine whether any impairment exists. The Company uses an income approach to estimate the fair value of each reporting unit. The impairment review is highly judgmental and involves the use of significant estimates and assumptions. The estimates and assumptions may have a significant impact on the amount of any goodwill impairment charge, should one be required to be recorded. The Company completed its annual assessment of goodwill in December 2010 and concluded that the value of its goodwill was not impaired.

The Company completed the acquisition of Auto Knight on January 1, 2011 and eReinsure on March 3, 2011, recording goodwill of $4.2 million and $31.5 million, respectively. On May 15, 2010, the Company purchased 100% of the stock of Continental Car Club and initially recorded $11.8 million in goodwill associated with the transaction. On September 1, 2010, the Company purchased 100% of the stock of United Motor Club and initially recorded $8.5 million in goodwill associated with the transaction. The values of certain assets and liabilities were preliminary in nature, and were subject to adjustment within 12 months of the close of the acquisition as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, fixed assets, deferred taxes and loss reserves. In July 2011, the Company sold CIRG, a part of its Brokerage segment, which reduced goodwill by $1.3 million at September 30, 2011.

During 2011, the Company determined the final valuations for Continental Car Club and United Motor Club. The Company reduced the amount of goodwill associated with the Continental Car Club and United Motor Club acquisitions by $6.4 million and $3.9 million, respectively, and increased other intangibles in order to reflect the final valuation of goodwill acquired in those transactions. The December 31, 2010 balances for goodwill, below, have been revised to include the effect of the measurement period adjustments. Changes in goodwill balances by segment are as follows:



	Payment Protection		BPO			Brokerage			Total
Balance at December 31, 2010	$	33,413	$	10,239		$	30,395		$	74,047
Segment reclassifications	—		(1,337		)	1,337			—
Goodwill disposed of during 2011	—		—			(1,337		)	(1,337		)
Goodwill acquired during 2011	4,180		—			31,528			35,708
Balance at September 30, 2011	$	37,593	$	8,902		$	61,923		$	108,418