Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Summary of discontinued business segment

The following table summarizes the preliminary calculation of the gain on sale, which will be finalized during the fourth quarter of 2016 (in thousands):

Consideration received	$	80,000
Cash included in assets sold	(4,250		)
Transaction costs	(5,328		)
Product supply obligation	(3,900		)
Preliminary working capital adjustment	3,372
Net cash proceeds	69,894
Less:
Carrying value of business and assets sold	64,533
Net gain on sale of business	$	5,361

The following table summarizes the results of discontinued operations for the periods presented in the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015 (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Discontinued operations	2016			2015			2016			2015
Revenues	$	18,043		$	11,309		$	40,146		$	38,679
Cost of revenues	11,469			4,111			19,694			13,060
Amortization of acquired intangible assets	555			376			1,291			1,093
Gross profit	6,019			6,822			19,161			24,526
Operating (income) expenses:
Research and development	16			48			50			123
Sales and marketing	2,865			4,360			12,391			14,109
General and administrative	1,440			1,553			5,079			4,894
Amortization of acquired intangible assets	155			241			622			971
Goodwill and intangible impairment	—			908			—			908
Restructuring expenses	4			(16		)	620			(188		)
Net gain on sale of business	(5,361		)	—			(5,361		)	—
Total operating (income) expenses	(881		)	7,094			13,401			20,817
Operating income (loss)	6,900			(272		)	5,760			3,709
Other income (expense):
Interest income	12			15			46			29
Interest expense	(2,156		)	(2,142		)	(7,240		)	(6,504		)
Other income (expense), net	243			(102		)	1,892			(451		)
Total other income (expense)	(1,901		)	(2,229		)	(5,302		)	(6,926		)
Income (loss) from discontinued operations before taxes	4,999			(2,501		)	458			(3,217		)
Income tax provision	8,657			766			9,809			766
Loss from discontinued operations, net of applicable taxes	$	(3,658	)	$	(3,267	)	$	(9,351	)	$	(3,983	)

The following table summarizes the assets and liabilities of discontinued operations as of September 30, 2016 and December 31, 2015 related to the International Business (in thousands):

	September 30, 2016		December 31, 2015
Assets
Current assets:
Cash	$	288	$	4,934
Accounts receivable, net	—		11,449
Inventories, net	2,375		12,276
Prepaid expenses and other current assets	165		1,551
Total current assets of discontinued operations	2,828		30,210
Property and equipment, net	10		5,864
Intangible assets, net	—		12,810
Other assets	61		783
Total assets of discontinued operations	$	2,899	$	49,667
Liabilities
Current liabilities:
Accounts payable	$	143	$	627
Accrued expenses	1,290		8,616
Deferred revenue	147		648
Other current liabilities	627		—
Total current liabilities of discontinued operations	2,207		9,891
Other long-term liabilities	87		1,516
Total liabilities of discontinued operations	$	2,294	$	11,407

Included in the cash flows for the nine months ended September 30, 2016 and September 30, 2015 are the following non-cash adjustments related to the discontinued operations (in thousands):

	Nine Months Ended September 30,
	2016		2015
Depreciation and amortization	$	3,836	$	3,965
Provision for excess and obsolete inventory	$	151	$	—
Capital expenditures	$	1,319	$	2,229
Interest expense related to amortization of debt discount and debt issuance costs	$	2,052	$	2,065