8. Goodwill

Changes to the carrying amount of goodwill during the years ended December 31, 2011 and 2010 are as follows:


	Ladenburg		Independent Brokerage and Advisory Services			Total
Balance as of January 1, 2010	$	301	$	29,438		$	29,739
Acquisition of Premier		—		15			15
Benefit applied to reduce goodwill		—		(35	)		(35	)
Balance as of December 31, 2010	$	301	$	29,418		$	29,719
Acquisition of Securities America		—		61,526			61,526
Benefit applied to reduce goodwill		—		(84	)		(84	)
Balance as of December 31, 2011	$	301	$	90,860		$	91,161

The annual impairment tests performed at December 31, 2011 and 2010 did not indicate that the carrying value of goodwill had been impaired. However, changes in circumstances or business conditions could result in an impairment of goodwill. As required, the Company will continue to perform impairment testing on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of the Company’s reporting units below the carrying amount of their net assets. For 2011 and 2010, the carrying amount of goodwill was reduced by $84 and $35, respectively, representing state tax benefit realized for the excess of tax deductible goodwill over goodwill recognized for reporting purposes with respect to one of the Company’s subsidiaries.