5. Goodwill

The changes in the carrying amount of goodwill are as follows (in thousands):


	September 30,		December 31,
	2018		2017
Balance at beginning of year	$	200,584	$	149,208
Additions (See Note 4)		30,606		52,481
Impairment adjustment		—		(1,105)
Balance at end of period	$	231,190	$	200,584

We recorded a goodwill impairment charge of $1.1 million during the first quarter of 2017. Based on changes to our market strategy that occurred in March 2017 related to our reporting unit based in California, we reevaluated our projected future earnings for this operating location. When the carrying value of a given reporting unit exceeds its fair value, a goodwill impairment loss is recorded for this difference, not to exceed the carrying amount of goodwill. Based upon our projected future earnings for this location, we could no longer support the related goodwill balance and therefore the goodwill associated with this location was fully impaired. The fair value was estimated using a discounted cash flow model.