4. Goodwill

The changes in the carrying amount of goodwill for the three month periods ended March 31, 2012 and 2011 are as follows (in thousands):


	M2M Products and Solutions
	2012			2011
Balance at January 1,	$	19,772		$	22,258
Goodwill impairment during the period		(6,547	)		—

Balance at March 31,	$	13,225		$	22,258

During the first quarter of 2012, based on actual operating results, and reductions in management's estimates of forecasted operating results of the M2M products and solutions reporting unit principally due to an updated view of competitive pressures impacting average selling prices, customer product and technology selections, and the loss of certain customers, the Company determined there were sufficient indicators of impairment present to require an interim impairment analysis.

Based upon fair value tests performed with the assistance of a third party independent appraisal, the Company recorded a preliminary pre-tax goodwill impairment charge of approximately $6.5 million and a preliminary purchased intangible asset charge of approximately $22.8 million during the first quarter of 2012. As of May 10, 2012, the Company had not finalized its review of these impairments analyses due to the limited time period from the first indication of the potential impairments to the date of this filing and the complexities involved in estimating the fair value of certain assets and liabilities. Any adjustments to those estimated charges resulting from the completion of the measurement of the impairment losses will be recognized in the second quarter of 2012.