GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

Goodwill consists of the following by reporting unit as of December 31, 2015 and 2014:

Reporting Unit	2015 (1)		2014 (2)
FIN	$	16,586	$	16,586
VIP		10,606		11,129
Vapestick		12,460		15,872
GEC		8,071		8,071
Total	$	47,723	$	51,658

⁽¹⁾ The Company’s cost basis for Vapestick was reduced by $2,664 due to an impairment charge in the fourth quarter of 2015. This impairment loss was primarily due to lower cash flow forecasts as this reporting unit has lagged our expectations for growth. 

⁽²⁾ The Company’s cost basis for FIN and Vapestick were reduced by an aggregate of $94,391 as of December 31, 2014 due to impairment charges in 2014. These impairment losses were primarily due to a rapid migration of U.S. consumers from our disposable products sold by the FIN reporting unit, which was acquired by us in February 2014. 

Goodwill decreased by $1,271 during 2015 related to foreign exchange translation adjustments associated with the VIP and Vapestick reporting units.

Identifiable Intangible Assets.

Identifiable intangible assets consist of the following:

	December 31, 2015							December 31, 2014
			Accumulated			Net Book				Accumulated			Net Book
	Cost (1)		Amortization			Value		Cost (2)		Amortization			Value
Customer relationships	$	30,623	$	(12,744	)	$	17,879	$	34,761	$	(7,103	)	$	27,658
Trade names		19,808		(4,637	)		15,171		28,168		(2,548	)		25,620
Internet domains and websites		1,091		(184	)		907		1,142		(83	)		1,059
Non-compete agreements		420		(204	)		216		420		(64	)		356
Total	$	51,942	$	(17,769	)	$	34,173	$	64,491	$	(9,798	)	$	54,693

⁽¹⁾ The Company’s cost basis for customer relationships was reduced by $2,930 and tradenames was reduced by $7,426 as of December 31, 2015, as a result of the Company’s impairment evaluation during the fourth quarter of 2015. These impairment losses were primarily due to lower cash flow forecasts as these reporting units have lagged our expectations for growth. 

⁽²⁾ The Company’s cost basis for customer relationships was reduced by $35,288 and tradenames was reduced by $14,678 as of December 31, 2014 as a result of the Company’s impairment evaluation. These impairment losses were primarily due to a rapid migration of U.S. consumers from our disposable products sold by the FIN reporting unit, which was acquired by us in February 2014. 

Amortization expense related to identifiable intangible assets amounted to $8,339 and $9,796 for the years ended December 31, 2015 and 2014, respectively. Identifiable intangible assets decreased by $1,825 during 2015 related to foreign exchange translation adjustments associated with the VIP and Vapestick reporting units.