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Goodwill

12 Months Ended

Dec. 31, 2012

6.	Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows (in thousands):


	M2M Products and Solutions
	2012			2011
Balance at January 1,	$	19,772		$	22,258
Goodwill acquisition price adjustments, net of tax		0			791
Goodwill impairment during the period		(19,772	)		(3,277	)

Balance at December 31,	$	0		$	19,772

During the third quarter of 2012, the first quarter of 2012 and the third quarter of 2011, based on actual operating results, and reductions in management’s then estimates of forecasted operating results of the M2M Products and Solutions reporting unit principally due to updated views 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 during the respective impacted quarters.

Based upon fair value tests performed with the assistance of third party independent appraisals, during the third quarter of 2012, the first quarter of 2012 and the third quarter of 2011, the Company recorded pre-tax goodwill impairment charges of $13.2 million, $6.5 million and $3.3 million, respectively.

The Company used the third party independent appraisal report from the third quarter of 2012 to assist it with its annual impairment analysis.