NOTE 3 – GOODWILL

Since the January 2012 restructuring announcement, we spent significant time analyzing our operations, organizational structure, and portfolio of products and services. As a result, in the second quarter of 2012, we combined the Commercial Markets, Financial Services and Industrial business units into one consolidated business unit, Business Solutions.

We determined that our two reportable segments after reorganization, Healthcare and Business Solutions, are also our two reporting units for purposes of goodwill impairment testing. The following table summarizes the revised allocation of goodwill.

	Healthcare		Business Solutions		Financial Services			Commercial Markets			Industrial			Total
Goodwill at January 1, 2012	$	3,284	$	-	$	1,743		$	1,296		$	1,133		$	7,456
Reallocation of goodwill		-		4,172		(1,743	)		(1,296	)		(1,133	)		-
Goodwill at July 1, 2012	$	3,284	$	4,172	$	-		$	-		$	-		$	7,456

We performed our annual impairment test of goodwill for all our reporting units in the second quarter of 2012. In performing our impairment test, we first considered the option of the qualitative approach provided by ASC 2011-08 and determined that it was not appropriate for the current year due to continuing changes in our business, current restructuring activities, and recent changes to our reporting units. The goodwill test did not result in any impairment.