Annual report pursuant to section 13 and 15(d)

Goodwill

v2.4.0.8
Goodwill
 12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Asset Impairment [Abstract]  
Goodwill
Goodwill

Changes to the carrying amount of goodwill during the years ended December 31, 2013 and 2012 are as follows:

 
 
Ladenburg
 
Independent Brokerage and Advisory Services
 
Total
Balance as of January 1, 2012
 
$
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

Benefit applied to reduce goodwill
 
—

 
(77
)
 
(77
)
Balance as of December 31, 2013
 
$
301

 
$
90,200

 
$
90,501



The annual impairment tests performed at December 31, 2013 and 2012, based on quantitative and qualitative assessments in 2013 and quantitative assessments in 2012, 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.

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 2013 and 2012 , the carrying amount of goodwill was reduced by $77 and $71, 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.