Goodwill

A reconciliation of the changes in the carrying amount of goodwill and accumulated impairment losses, by reportable segment, for the nine months ended September 30, 2011, is as follows:



(in thousands)	Data and Analytics			Business and Information Services			Consolidated
Balance at December 31, 2010
Goodwill	$	603,516		$	693,897		$	1,297,413
Accumulated impairment losses	(600		)	(6,925		)	(7,525		)
Goodwill, net	$	602,916		$	686,972		$	1,289,888
Acquisitions	176,231			18,898			195,129
Translation adjustments	(16,354		)	—			(16,354		)
Balance at September 30, 2011
Goodwill, net	$	762,793		$	705,870		$	1,468,663

After the Separation, our reporting units consisted of mortgage origination services, default and technology services, specialty finance solutions, risk and fraud analytics, employer services, litigation services and marketing services. After the sale of the employer and litigation services businesses and the closure of our marketing services business, our reporting units, for purposes of applying the provisions of accounting guidance related to goodwill, are risk and fraud analytics, specialty finance solutions, mortgage origination services and default and technology services.

During the nine months ended September 30, 2011, we recorded $18.9 million of goodwill in connection with our acquisition of the remaining interest in Dorado in March 2011, $162.7 million of goodwill in connection with our acquisition of the remaining interest in RP Data in May 2011 and $13.5 million in connection with our acquisition of Tarasoft Corporation ("Tarasoft") in September 2011. We have reclassified $31.8 million and $155.1 million of goodwill, net, to assets of discontinued operations as of September 30, 2011 and December 31, 2010, respectively.

As of September 30, 2011, we closed our marketing services reporting unit (Leadclick), which resulted in a $123.3 million non-cash impairment charge as a component of loss from discontinued operations, net of tax. Our policy is to perform an annual goodwill impairment test for each reporting unit in the fourth quarter; using September 30 as our valuation date. In addition to our annual impairment test, we periodically assess whether events or circumstances occurred that potentially indicate that the carrying amounts of these assets may not be recoverable. Due to weak market demand, the market price of our common stock declined during the quarter ended September 30, 2011, and therefore we performed an interim goodwill impairment analysis as of August 31, 2011. Based on the analysis, we noted no risk of impairment of any other reporting unit, other than in the marketing services reporting unit as discussed above.

Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates and future market conditions, among others. Key assumptions used to determine the fair value of our reporting units in our testing were: (a) expected cash flow for the period from 2011 to 2019; (b) an average discount rate of 12.0%, which was based on management's best estimate of the after-tax weighted average cost of capital; and (c) a 19% control premium. It is reasonably possible that changes in the facts, judgments, assumptions and estimates used in assessing the fair value of the goodwill could cause a reporting unit to become impaired.