8. Goodwill

Changes to the carrying amount of goodwill during the years ended December 31, 2012 and 2011 are as follows:


	Ladenburg		Independent Brokerage and Advisory Services			Total
Balance as of January 1, 2011	$	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
Benefit applied to reduce goodwill		—		(71	)		(71	)
Business acquisition		—		522			522
Adjustment related to allocation of Securities America purchase price		—		(935	)		(935	)
Reduction of purchase price for Securities America acquisition		—		(99	)		(99	)
Balance as of December 31, 2012	$	301	$	90,277		$	90,578

The annual impairment tests performed at December 31, 2012 and 2011 based on quantitative assessments (see Note B — “Goodwill” and “Recently Issued Accounting Pronouncement”) 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. During 2012, the Company reduced goodwill by $935, to correct an overstatement of the deferred tax liability recorded upon acquisition of Securities America, increased goodwill by $522 due to a business acquisition and reduced goodwill by $99 related to a working capital purchase price adjustment for the Securities America acquisition. For 2012 and 2011, the carrying amount of goodwill was reduced by $71 and $84, respectively, representing state tax benefit realized for the excess of tax deductible goodwill over goodwill recognized for reporting purposes with respect to the Company’s subsidiaries.