Goodwill

The following table shows changes in goodwill for the nine months ended September 30, 2013. All of the Company's goodwill as of September 30, 2013 is recorded in the geographic divisions reportable segment (Note 15):



December 31, 2012	$	6,511
Acquisition of Chesapeake (Note 5)	675
September 30, 2013	$	7,186

The Company performs its annual impairment assessment of goodwill during the third quarter of each year, or at any other time when impairment indicators exist. To the extent that the carrying value of the net assets of any of the reporting units having goodwill is greater than their estimated fair value, the Company may be required to take goodwill impairment charges. The Company’s reporting units are its East, South and West geographic divisions and Coleman Floor.

For purposes of testing goodwill, the Company estimates fair value using the income approach. The income approach uses a reporting unit’s projection of estimated future cash flows that is discounted at a market derived weighted average cost of capital. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs, estimates of future expected changes in operating margins and cash expenditures.

The annual impairment assessment performed by the Company during the third quarter of 2013 and 2012 did not indicate that an impairment existed. During each assessment, the Company determined that the fair value of its reporting units containing goodwill exceeded their carrying value.