In accordance with ASC Topic 350, "Intangibles—Goodwill and Other," goodwill is not subject to amortization, but is monitored at least annually for impairment, or more frequently, as necessary, if events or circumstances exist that would more likely than not reduce the fair value of the reporting unit below its carrying amount. For the Company's goodwill impairment analysis, the Company operates under one reporting unit. The Company completed the annual impairment test required as of fiscal 2011 and determined that there was no impairment. At the time of the annual test, the entity-wide estimated fair value exceeded the net book value by approximately 25%.

Although late in the second quarter of fiscal 2012 the Company's stock price experienced a significant decline, the Company did not record any impairment losses related to goodwill or intangible assets during the fiscal year to date period ended June 30, 2012 as there were no events or circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The Company continues to monitor its market capitalization and other potential indicators of impairment. If the Company's market capitalization, plus an estimated control premium, is below its carrying value for a significant duration, or if events or circumstances exist that would more likely than not reduce the fair value of the reporting unit below its carrying amount, the Company may be required to record an impairment of goodwill in the third quarter of fiscal 2012, the fourth quarter of fiscal 2012 when the Company conducts its annual impairment test, or in future quarters. A non-cash goodwill impairment charge would have the effect of decreasing the Company's earnings in any such period. If the Company is required to take a substantial impairment charge, its operating results would be materially adversely affected in any such period.

The changes in the carrying amount of goodwill for the fiscal year to date period ended June 30, 2012 are as follows (in thousands):


Balance at December 31, 2011	$	140,654
Effect of foreign currency translation adjustments		377

Balance at June 30, 2012	$	141,031