Note 11 — Goodwill

The changes to the carrying amount of goodwill for the six months ended June 30, 2012 are as follows (in thousands):

	Traditional Toys and Electronics		Role Play, Novelty and Seasonal Toys		Total
Balance at beginning of the period	$	17,597	$	6,418	$	24,015
Adjustments to goodwill during the period		710		―		710
Balance, June 30, 2012	$	18,307	$	6,418	$	24,725

The Company applies a fair value-based impairment test to the net book value of goodwill and indefinite-lived intangible assets on an annual basis and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. The analysis of potential impairment of goodwill requires a two-step process. The first step is the estimation of fair value. If step one indicates that an impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. There was no goodwill impairment during the periods ended June 30, 2011 and 2012.