GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

As of June 30, 2015 and December 31, 2014, goodwill consists of the following by reporting unit:

	June 30,		December 31,
	2015		2014
Reporting unit:
FIN	$	16,586	$	16,586	(1)
VIP		16,262		16,129
Vapestick		16,059		15,872	(1)
GEC (2)		8,071		8,071
Total	$	56,978	$	56,658

(1)	The Company’s cost basis was adjusted as of December 31, 2014 due to impairment charges.
(2)	In July 2014, the Company completed the acquisition of its Global E-Commerce (“GEC”) division from Hardwire Interactive Inc. (“Hardwire”).

Goodwill increased by $320 from December 31, 2014 to June 30, 2015 due to foreign exchange translation associated with the VIP and Vapestick acquisitions.

Identifiable Intangible Assets.

Identifiable intangible assets consist of the following as of June 30, 2015 and December 31, 2014:

	Life (Years)				June 30, 2015							December 31, 2014
			Weighted				Accumulated			Net Book				Accumulated			Net Book
	Range		Average		Cost		Amortization			Value		Cost (1)		Amortization			Value
Customer relationships		2-10		8.2	$	34,457	$	(10,040	)	$	24,417	$	34,761	$	(7,103	)	$	27,658
Trade names		10-15		12.6		28,077		(3,525	)		24,552		28,168		(2,548	)		25,620
Internet domains and websites		10		10.0		1,156		(139	)		1,017		1,142		(83	)		1,059
Non-compete agreements		3		3.0		420		(134	)		286		420		(64	)		356
Total					$	64,110	$	(13,838	)	$	50,272	$	64,491	$	(9,798	)	$	54,693

(1) The Company’s cost basis for certain identifiable intangible assets was adjusted as of December 31, 2014 as a result of the Company’s impairment evaluation. Accordingly, effective January 1, 2015 amortization expense was computed based on the newly established cost basis over the remaining estimated useful life.

Amortization expense related to identifiable intangible assets amounted to $2,078 and $3,235 for the three months ended June 30, 2015 and 2014, respectively. Amortization expense related to identifiable intangible assets amounted to $4,164 and $3,139 for the six months ended June 30, 2015 and 2014, respectively.