Commissions. Commissions include the commissions paid to distributors selling credit insurance policies offered by our Payment Protection division. Commission rates, in many instances, are set by state regulators and are also impacted by market conditions. In certain instances, our commissions are subject to retrospective adjustment based on the profitability of the related policies. These retrospective commission adjustments are payments made or adjustments to future commission expense based on claims experience. Under these retrospective commission arrangements, the producer of the credit insurance policies, which is typically our client, receives a retrospective commission if the premium generated by that producer in the accounting period exceeds the costs associated with those policies, which includes our administrative fees, claims, reserves and premium taxes. If the net result is negative, we either offset that negative amount against future retrospective commission payments, reduce the producer's up-front commission on a prospective basis to increase the likelihood that it will return to a positive position or request payment of the negative amount from the producer.
Net realized gains for the year ended December 31, 2011 increased $3.5 million from the sale of approximately $62.3 million in securities during the year compared to $8.8 million sold in 2010.
Income taxes for the year ended December 31, 2011 decreased $1.0 million, or 11.0%, to $7.7 million compared with $8.7 million for 2010 due primarily to lower income before income taxes. Our effective tax rate was 35.1% for the year ended December 31, 2011 compared to 34.9% for the same period in 2010.
On November 30, 2010, Columbus Bank & Trust, a division of Synovus Bank, entered into a joinder agreement to the revolving credit facility and became a new lender under the revolving credit facility with a revolving commitment of $20.0 million, which increased the size of the Facility to $55.0 million.
Wells Fargo Capital Finance, LLC Revolving Line of Credit - On February 7, 2011, we terminated our existing revolving $40.0 million credit facility with Wells Fargo Capital Finance, LLC, which was never drawn upon.
The Company's investments in less than majority-owned companies in which it has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method except when they qualify as Variable Interest Entities, ("VIE") and the Company is the primary beneficiary, in which case the investments are consolidated in accordance with ASC 810, "Consolidation." Investments that do not meet the above criteria are accounted for under the cost method.
Short-term investments consist of certificates of deposits issued by Federally Insured Depository Institutions and normally have maturities of less than one year. At various times throughout the year, the Company may have certificates of deposits with financial institutions that exceed the federally insured deposit amount. Management reviews the financial viability of these financial institutions on a periodic basis and does not anticipate nonperformance by the financial institutions.
In conjunction with the Continental and United acquisitions in 2010, the Company initially recorded $11.8 million and $8.5 million, respectively in goodwill. During 2011, the Company determined the final valuations for Continental and United. The Company reduced the amount of goodwill associated with Continental and United by $6.4 million and $3.9 million, respectively, and increased other intangibles by $6.4 million and $4.3 million, respectively, and increased deferred tax liabilities associated with United by $0.4 million, in order to reflect the final valuation of goodwill acquired. The measurement period adjustment was recorded based on information obtained subsequent to the acquisitions related to tradenames, agent relationships and non-compete agreements at the acquisition date. The December 31, 2010 balances for goodwill and other intangibles assets on the Consolidated Balance Sheets have been retrospectively adjusted to include the effect of the measurement period adjustments for Continental and United as required under ASC 805, Business Combinations.
During 2011, the Company determined the final valuations for 2010 acquisitions of Continental and United and increased the amount of other intangible assets associated with these acquisitions by a total of $10.7 million. The December 31, 2010 balance for other intangible assets, above, has been revised to include the effect of the measurement period adjustments on these two acquisitions in accordance with ASC805. The changes by category were increases to customer and agent relationships, tradenames, and present value of future profits of $4.0 million, $6.4 million, and $0.5 million respectively, and a decrease to non-compete agreements of $0.2 million.
The Company had a current tax payable of $1.3 million at December 31, 2011, and a current tax receivable of $0.9 million at December 31, 2010.
The Company's insurance subsidiaries are required by the laws of the states in which they are domiciled to maintain certain statutory capital and surplus levels. The required minimum statutory capital and surplus totaled $15.3 million and $13.0 million as of December 31, 2011 and 2010, respectively.