7. GOODWILL

A summary of the change in the carrying amount of goodwill follows:

(dollars in thousands)	2012		2011		2010
beginning balance	$	11,462		11,462		11,593
Bodet & Horst acquisition		-		-		(131	)
ending balance	$	11,462		11,462		11,462

The goodwill balance relates to the mattress fabrics segment.

During the first quarter of fiscal 2010, we finalized our valuation of the fair values for the assets acquired and liabilities assumed regarding the purchase of the Bodet & Horst USA, LP and Bodet & Horst GMBH & Co. KG's (collectively "Bodet & Horst") knitted mattress fabric operation located in High Point, NC. As a result of this final valuation, we recorded an adjustment to increase the fair value of the non-compete agreement and reduce the fair value of the goodwill by $131,000.