Goodwill

Goodwill was recorded in connection with various acquisitions but was written-off as of December 31, 2011. We evaluated the recoverability of goodwill by comparing the carrying value of our reporting units to their fair value. Fair value was determined using discounted cash flows supplemented by market-based assessments of fair value, and impairment was measured as the difference between the resulting implied fair value of goodwill and its recorded carrying value. The determination of fair value was significantly impacted by estimates related to current market valuations, current and future economic conditions in each of our geographical markets, and our strategic plans within each of our markets.

In the third quarters of both 2011 and 2010, we performed event-driven assessments of the recoverability of goodwill. These assessments were necessary primarily due to sustained declines in our market capitalization. In performing the goodwill impairment analyses, we followed similar approaches using management's estimates of the future cash flows for each reporting unit, which were required to consider the decrease in our market capitalization. The results of these analyses determined that goodwill impairment charges of $240.5 million and $654.9 million in the third quarters of 2011 and 2010, respectively, were required. In the second quarter of 2010, we also recorded a goodwill impairment charge of $1.4 million in conjunction with the completion of business combination accounting for the Centex merger and disposed of $1.6 million of goodwill in connection with the sale of the retail title operations acquired with the Centex merger.

Activity in our goodwill balances by reporting segment consisted of the following ($000's omitted):



	Reporting Segment
	Northeast			Southeast			Florida			Texas			North			Southwest			Financial Services			Total Goodwill
December 31, 2009	—			327,033			5,465			347,969			160,095			53,763			1,593			895,918
Additions	494			610			79			600			468			263			—			2,514
Impairments	(494		)	(267,149		)	(5,544		)	(256,474		)	(95,207		)	(31,430		)	—			(656,298		)
Disposals	—			—			—			—			—			—			(1,593		)	(1,593		)
December 31, 2010	—			60,494			—			92,095			65,356			22,596			—			240,541
Impairments	—			(60,494		)	—			(92,095		)	(65,356		)	(22,596		)	—			(240,541		)
December 31, 2011	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Our accumulated goodwill impairment losses totaled $1.8 billion at December 31, 2012. This includes goodwill and impairments associated with the Centex merger as well as goodwill and impairments associated with previous acquisitions. The goodwill associated with such previous acquisitions was fully impaired as of December 31, 2009. Goodwill impairment charges are reflected in other expense (income), net.