8. Goodwill

The carrying amount of goodwill as of December 31, 2013, 2012, and 2011 relates to three acquisitions, including ARIGO Software GmbH (“ARIGO”) in 2001, BeAtHome in 2002, and MTC in 2003. The goodwill acquired as part of the ARIGO transaction is valued in Euros, and is therefore subject to foreign currency translation gains and losses.

The changes in the carrying amount of goodwill, net, for the years ended December 31, 2013 and 2012 are as follows (in thousands):



	Total
Balance as of December 31, 2011	$	8,235
Unrealized foreign currency translation loss	41
Balance as of December 31, 2012	$	8,276
Unrealized foreign currency translation loss	114
Balance as of December 31, 2013	$	8,390

Effective in the fourth quarter of 2013, the Company changed the way it managed the business to focus the business on two operating segments based on homogeneity of products and technology- Grid and IIoT. As a result, the Company, with the assistance of an external service provider, reallocated goodwill of the Company to the Grid and IIoT operating segments using a relative fair value approach. Each operating segment's fair value was determined based on comparative market values and discounted cash flows. As of December 31, 2013, approximately $3.4 million and $5.0 million of the total goodwill balance was attributable to the Grid and IIoT operating segments, respectively. There was no indication of impairment when goodwill was reallocated to the new operating segments, as the respective fair values of each substantially exceed their carrying values (including goodwill) as of December 31, 2013.