8. Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2011 and 2010 is as follows:


	2011		2010

Balance, beginning of year	$	10,821	$	10,821
Acquired during the year		-		-

Balance, end of year	$	10,821	$	10,821

Impairment exists when a reporting unit's carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of our single reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. We determined the fair value of our reporting unit exceeded its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, we are required to perform a second step to the impairment test. Our annual impairment analysis at December 31, 2011 and 2010 indicated that the Step 2 analysis was not necessary.