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ASSURANT, INC.2012 Form10-KF-32
10 Goodwill
10. Goodwill
Information about goodwill is as follows:
Goodwill for the Years Ended December31,
2012 2011 2010
Balance as of January1:
Goodwill $ 2,289,417 $ 2,270,099 $ 2,270,337
Accumulated impairment loss (1,650,320) (1,650,320) (1,343,939)
639,097 619,779 926,398
Additions 0 19,608 199
Foreign currency translation and other 1,617 (290) (437)
Impairments 0 0 (306,381)(1)
Goodwill 2,291,034 2,289,417 2,270,099
Accumulated impairment losses (1,650,320) (1,650,320) (1,650,320)
BALANCE AS OF DECEMBER31: $ 640,714 $ 639,097 $ 619,779
(1) Represents goodwill impairments related to Assurant Employee Benefits and Assurant Health reporting units. See Notes2 and 5 for further information.
e Company has assigned goodwill to its operating segments for impairment testing purposes.  e Corporate and Other segment is not assigned
goodwill. Below is a roll forward of goodwill by reportable segment.
Solutions(1) Specialty Property Health Employee Bene ts Consolidated
Balance at December31, 2010
Goodwill $ 1,640,874 239,844 204,303 185,078 2,270,099
Accumulated impairment losses (1,260,939) 0 (204,303) (185,078) (1,650,320)
379,935 239,844 0 0 619,779
Acquisitions 0 19,608 0 0 19,608
Foreign currency translation and other (290) 0 0 0 (290)
Impairment 0 0 0 0 0
Balance at December31, 2011
Goodwill 1,640,584 259,452 204,303 185,078 2,289,417
Accumulated impairment losses (1,260,939) 0 (204,303) (185,078) (1,650,320)
379,645 259,452 0 0 639,097
Acquisitions 0 0 0 0 0
Foreign currency translation and other 1,617 0 0 0 1,617
Impairment 0 0 0 0 0
Balance at December31, 2012
Goodwill 1,642,201 259,452 204,303 185,078 2,291,034
Accumulated impairment losses (1,260,939) 0 (204,303) (185,078) (1,650,320)
$ 381,262 $ 259,452 $ 0 $ 0 $ 640,714
(1) The accumulated impairment loss relates to an acquisition made in 1999. The entity acquired had businesses that currently are primarily represented by the Assurant Solutions and
Assurant Specialty Property segments. Prior to 2006, the Assurant Solutions and Assurant Specialty Property segments were combined and together called Assurant Solutions. Thus,
the entire goodwill impairment recognized in 2002 due to the adoption of FAS 142 is included in the tables under the Assurant Solutions segment.
In accordance with the goodwill guidance, goodwill is deemed to have
an inde nite life and should not be amortized, but rather must be
tested, at least annually, for impairment. In addition, goodwill should
be tested for impairment between annual tests if an event occurs or
circumstances change that would “more likely than not” reduce the
estimated fair value of the reporting unit below its carrying value.
e goodwill impairment test has two steps. Step 1 of the test identi es
potential impairments at the reporting unit level, which for the Company
is the same as our operating segments, by comparing the estimated
fair value of each reporting unit to its net book value. If the estimated
fair value of a reporting unit exceeds its net book value, there is no
impairment of goodwill and Step 2 is unnecessary. However, if the net
book value exceeds the estimated fair value, then Step 1 is failed, and Step
2 is performed to determine the amount of the potential impairment.
Step 2 utilizes acquisition accounting guidance and requires the fair
value calculation of all individual assets and liabilities of the reporting
unit (excluding goodwill, but including any unrecognized intangible
assets).  e net fair value of assets less liabilities is then compared to the
reporting unit’s total estimated fair value as calculated in Step 1.  e
excess of fair value over the net asset value equals the implied fair value
of goodwill.  e implied fair value of goodwill is then compared to the
carrying value of goodwill to determine the reporting unit’s goodwill
impairment. During September2011, the FASB issued amended
intangibles- goodwill and other guidance.  is guidance provides
the option to  rst assess qualitative factors to determine whether the
existence of events or circumstances leads to a determination that it
is more likely than not that the fair value of a reporting unit is less
than its carrying amount. If, after assessing the totality of events or
circumstances, an entity determines it is not more likely than not that
the fair value of a reporting unit is less than its carrying amount, then