Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations [Abstract]

Discontinued Operations

2. Discontinued Operations

During 2012, we committed to a plan to sell the assets of the Disposal Group, which includes sparkling beverage appliances, flavorings, CO₂ cylinders and accessories sold under the Flavorstation brand as well as the Omnifrio Single-Serve Business and initiated an active program to execute this plan.  In addition, we determined that the Disposal Group met all of the criteria for classification as discontinued operations.  As a result, current and prior year amounts and disclosures reflect these operations as discontinued operations.

The assets and liabilities of the Disposal Group classified as held for sale were as follows:

	June 30, 2013		December 31, 2012
Current assets of disposal group held for sale
Accounts receivable, net	$	32	$	–
Inventories		1,084		2,794
Prepaid expenses and other current assets		–		247
	$	1,116	$	3,041
Current liabilities of disposal group held for sale
Accounts payable		23		146
Deferred income		431		–
Accrued expenses and other current liabilities		273		2,638
	$	727	$	2,784
Liabilities of disposal group held for sale, net of current portion
Other long-term liabilities		2,000		–
	$	2,000	$	–

The net sales and operating results classified as discontinued operations were as follows:

	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Net sales	$	155		$	326		$	2,004		$	307
Operating costs and expenses:
Cost of sales		180			911			2,144			1,033
Selling, general and administrative		111			357			220			774
Other operating income		–			(2,000	)		–			(2,000	)
Depreciation and amortization		–			270			–			442
Goodwill and developed technology impairment		–			13,445			–			13,445
Total operating costs and expenses		291			12,983			2,364			13,694
Loss from discontinued operations	$	(136	)	$	(12,657	)	$	(360	)	$	(13,387	)

Barter credit transactions

During the six months ended June 30, 2013, we sold $1,893 of inventory of the Disposal Group in exchange for $1,076 in cash and $1,275 in barter credits.  We valued the barter credits at the fair value of the products and services to be received upon exchange as they have a more readily determinable fair value than the products exchanged.  At June 30, 2013, the barter credits were recorded at their fair value of $277 and $993 in prepaid expenses and other current assets and in other assets, respectively, on the condensed consolidated balance sheets.  The sales and costs of goods sold associated with the transactions are reported as part of loss from discontinued operations on the condensed consolidated statements of operations.