DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

On January 10, 2014, the Company completed the disposition of its Owned & Operated Websites segment. The proceeds from the sale consisted of gross cash consideration of $80.0 million, and $74.8 million net of cash divested. The company incurred $2.0 million in transaction costs in connection with the divestiture. The divestiture generated a pre-tax gain of $7.0 million in the first quarter of 2014, which includes a $1.4 million reclassification adjustment relating to the foreign currency translation amounts previously included in other comprehensive income, and a $34.2 million gain net of income taxes due to a tax benefit of $27.2 million realized upon the sale due primarily to tax deductible goodwill. In the second quarter of 2014, the Company recorded an additional $1.3 million pre-tax gain, and $0.7 million gain net of income taxes, as a result of working capital adjustments defined in the sale agreement.

The assets and liabilities of the Owned & Operated Websites segment were classified as held for sale as of December 31, 2013, and the historical results of operations of the Owned & Operated Websites segment are treated as discontinued operations herein. The Company determined that its Owned & Operated Websites segment met the definition of an asset held for sale in the third quarter of 2013.

The following amounts related to the Owned & Operated Websites segment for the three- and six-month periods ended June 30, 2013, were derived from historical financial information. All amounts have been segregated from continuing operations and reported in discontinued operations (in thousands):

	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013
Revenue	$	31,662	$	62,617
Income from discontinued operations before income taxes	4,941		9,211
Income tax expense	1,583		2,949
Net income from discontinued operations	$	3,358	$	6,262

The components of assets and liabilities held for sale at December 31, 2013 are as follows (in thousands):

	December 31, 2013
Current assets held for sale:
Cash and cash equivalents	$	14,933
Receivables, net	15,113
Other current assets	2,756
	$	32,802
Assets held for sale, less current portion:
Property and equipment, net	$	1,554
Goodwill	45,878
Intangible assets acquired in business combinations	7,798
Other assets	412
	$	55,642
Current liabilities related to assets held for sale:
Accounts payable and accrued expenses	$	7,242
Other current liabilities	404
	$	7,646
Liabilities related to assets held for sale, less current portion:
Deferred tax liabilities	$	1,058
Other non-current liabilities	—
	$	1,058