Disposition of Business

3 Months Ended

Mar. 31, 2017

Discontinued Operations And Disposal Groups [Abstract]

Disposition of Business

13. Disposition of Business

On February 23, 2017, the Company completed the sale of the assets of its Skyfence cloud access security broker business (“Skyfence”) to Forcepoint LLC and its Israeli subsidiary for consideration of approximately $40 million in cash. Of the total consideration, approximately $5.0 million was remitted directly to escrow to secure the Company’s indemnification obligations. This escrowed amount is recorded in other assets on our condensed consolidated balance sheet as of March 31, 2017, and represents a noncash item in our condensed consolidated statement of cash flows. As a result of the sale, we recognized a gain of $35.9 million during the first quarter of 2017 included in gain on sale of Skyfence in our condensed consolidated statement of operations.

The following table presents the carrying amounts of Skyfence immediately preceding the disposition on February 23, 2017:

	(dollarsin thousands)
Assets
Prepaid and other current assets	$	46
Property and equipment, net		219
Goodwill		1,058
Acquired intangible assets, net		4,496
Total assets	$	5,819
Liabilities
Accounts payable	$	104
Accrued and other current liabilities		117
Deferred revenue		1,454
Total liabilities	$	1,675

We evaluated the disposition of Skyfence and determined it did not meet the criteria for classification as a discontinued operation and determined that the disposition is not expected to have a material impact to our quarterly consolidated operating loss and net income. However, we determined that the disposition does represent an individually significant component of our business. The following table presents certain amounts related to Skyfence in our consolidated results of operations through its disposal on February 23, 2017:

	Forthe three months ended March 31,
	2017			2016
	(dollars in thousands)
Operating loss	$	(3,567	)	$	(5,263	)
Loss before taxes		(3,648	)		(5,263	)
Net loss		(3,659	)		(5,308	)