Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Media Business

On September 17, 2012, Geeknet, Inc. entered into a purchase agreement with Dice Holding's Inc. ("Dice") and two of Dice’s subsidiaries, (collectively, the “Buyers”) pursuant to which the Buyers purchased the Company’s Media business segment, including the SourceForge, Slashdot and Freecode websites and assumed certain related liabilities.

In accordance with the terms of the purchase agreement, the Buyers paid $20.0 million in cash to the Company. The purchase agreement contained customary representations, warranties and covenants, and the indemnification thereof.  The purchase agreement generally limited the Company's liability for breaches of representations and warranties made in the purchase agreement to an aggregate of $10.0 million. The Company's representations and warranties made under the purchase agreement generally expired on September 17, 2013, although certain representations, warranties and covenants survive pursuant to the terms of the purchase agreement.  

The following shows revenues, gross profit and (loss) income from discontinued operations, net of tax from discontinued operations:

	Year Ended December 31,
	2013			2012
Revenue	$	—		$	13,797
Gross profit	$	—		$	10,421
Loss from discontinued operations	$	(119	)	$	(1,509	)
Gain on sale of discontinued operations	—			13,712
Income tax (benefit) provision from discontinued operations	(52		)	101
(Loss) income from discontinued operations, net of tax	$	(67	)	$	12,102

Gross profit and (loss) income from discontinued operations do not include allocated corporate costs that were previously allocated to the Company's Media segment. The $13.7 million gain on the sale of the Media business is the selling price of $20.0 million less the carrying value of certain assets and liabilities assumed by the Buyers, offset by transaction costs of $1.1 million. The carrying value of the total assets and total liabilities included in the purchased business were $8.3 million and $3.1 million, respectively.

The income tax benefit for the year ended December 31, 2013 represents federal and state tax receivables as a result of overpayments. The tax provision recorded on discontinued operations for the year ended December 31, 2012 represents the tax based upon the with and without method. The 2012 tax provision is significantly lower than the statutory rate as a result of net operating losses recognized with a full valuation allowance.