Goodwill, Net

A reconciliation of the changes in the carrying amount of goodwill, net, by reporting unit, for the years ended December 31, 2017 and 2016 is as follows:



(in thousands)	PIRM			UWS			Consolidated
Balance at January 1, 2016
Goodwill	$	963,680		$	925,392		$	1,889,072
Accumulated impairment losses	(600		)	(6,925		)	(7,525		)
Goodwill, net	963,080			918,467			1,881,547
Acquisitions	226,907			—			226,907
Translation adjustments	(1,199		)	—			(1,199		)
Balance at December 31, 2016
Goodwill, net	1,188,788			918,467			2,107,255
Acquisitions	127,805			1,700			129,505
Translation adjustments	13,839			—			13,839
Rental Property Solutions reclassification	5,521			(5,521		)	—
Valuation Solutions reclassification	(307,330		)	307,330			—
Balance at December 31, 2017
Goodwill, net	$	1,028,623		$	1,221,976		$	2,250,599

In December 2017, we transferred our rental property solutions business from our UWS segment to our PIRM segment, and transferred our valuation solutions business to our UWS segment from the PIRM segment. These transfers were executed to better leverage the core business capabilities of each segment and represent changes in our management structure and internal reporting, see Note 1 - Description of the Company. As a result of these actions, we revised our reporting for segment disclosure purposes, see Note 18 - Segment Financial Information, and reassessed our reporting units for purposes of evaluating the carrying value of our goodwill. This assessment required us to perform a fourth quarter reassignment of our goodwill to each reporting unit impacted using the relative fair value approach, based on the fair values of the reporting units as of December 31, 2017. As of December 31, 2017, the assessment resulted in $307.3 million of goodwill being re-allocated to our UWS reporting unit from our PIRM reporting unit and $5.5 million of goodwill being re-allocated to our PIRM reporting unit from our UWS reporting unit.

For the year ended December 31, 2017, we recorded an adjustment of $5.4 million to goodwill within our UWS reporting unit related to the finalization of our FNC, Inc. ("FNC") acquisition purchase price allocation. Additionally, we recorded $1.7 million in our UWS segment related to an insignificant acquisition. Further, in August 2017, we completed the acquisitions of Mercury, Myriad Development, Inc. ("Myriad") and Clareity Ventures, Inc. ("Clareity"). For the year ended December 31, 2017, we recorded goodwill of $105.3 million for Mercury within our UWS reporting unit and $28.1 million, related to Myriad and Clareity, within our PIRM reporting unit. See Note 16 - Acquisitions for additional information. Finally, we recorded goodwill of $0.2 million within our PIRM reporting unit related to an acquisition that was not significant.

For the year ended December 31, 2016, we recorded $225.7 million of goodwill related to the acquisition of FNC, Inc. ("FNC") within our UWS reporting unit. Further, we recorded $1.2 million of goodwill, within our PIRM reporting unit, related to an acquisition that was not significant. See Note 16 - Acquisitions for additional information.

We perform an annual goodwill impairment test for each reporting unit in the fourth quarter. 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. We elected to perform a quantitative impairment test on our reporting units without first assessing qualitative factors. 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 flows for the period from 2018 to 2023 and (b) discount rates ranging from 8.5% and 9.0%, which were based on management's best estimate of an after-tax weighted average cost of capital. Based on the results of our fourth quarter goodwill impairment test, the goodwill attributable to our reporting units was not impaired as of December 31, 2017. 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.