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Goodwill

6 Months Ended

Jun. 30, 2012

4. Goodwill

The changes in the carrying amount of goodwill for the six month periods ended June 30, 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 June 30,	$	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. During the second quarter of 2012, the Company finalized its review of these impairments analyses, which resulted in no adjustments to the pre-tax impairment losses recognized in the first quarter of 2012.