GOODWILL

During the three months ended March 31, 2017, we changed our operating segments, as discussed in note 10 “Operating Segments,” and, subsequently, our reporting units. We now have six reporting units: IP services, IP products, data center services, managed hosting, cloud and Ubersmith. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to and after the reallocation and determined that no impairment existed.

During the six months ended June 30, 2017, we re-allocated goodwill as follows (in thousands):



	December 31, 2016		Re-allocations			June 30, 2017
Operating segments:
Data center and network services	$	—	0			$	—
Cloud and hosting services	50,209		(50,209		)	—
INAP COLO	—		6,003			6,003
INAP CLOUD	—		44,206			44,206
Total	$	50,209	$	—		$	50,209