Assets and Liabilities Held for Sale and Divested Operations

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale and Divested Operations

As of September 30, 2020, the Company began the process of negotiating an agreement for the sale of certain non-core assets and liabilities. As of September 30, 2020, the assets and liabilities related to the divestment met the criteria for classification as assets held for sale on the Company’s balance sheet. In anticipation of the sale, current assets of $15,958 and long term assets of $20,101 were reclassified to current assets held for sale, while current liabilities of $24,650 and long term liabilities of $398 were reclassified to current liabilities held for sale.

The divestiture does not represent a strategic shift and did not have a major effect on the Company’s operations or financial results, as defined by ASC 205-20, Discontinued Operations; as a result, the divestiture did not meet the criteria to be classified as discontinued operations.

The carrying amount of major classes of assets and liabilities that are included in Assets held for sale and Liabilities held for sale at September 30, 2020 consist of the following:


Assets:
Current assets:
Accounts receivable	$	6,774
Inventories	174
Prepaid expenses	9,010
Total current assets	15,958
Property, plant and equipment	25
Goodwill	9,129
Other intangible assets, net	10,232
Other non-current assets	602
Operating lease right-of-use assets	113
Total Assets held for sale	$	36,059

Liabilities:
Current liabilities:
Accounts payable	$	22
Accrued expenses and other current liabilities	6,068
Current portion of deferred revenues	18,480
Current portion of operating lease liabilities	80
Total current liabilities	24,650
Non-current portion of deferred revenues	363
Operating lease liabilities	35
Total Liabilities held for sale	$	25,048

On November 3, 2019, the Company entered into an agreement with OpSec Security for the sale of certain assets and liabilities of its MarkMonitor Product Line within its IP Group. The divestiture closed on January 1, 2020 for a total purchase price of $3,751. An impairment charge of $18,431 was recognized in the Statement of Operations during the fourth quarter 2019 to write down the Assets and Liabilities of the disposal group to fair value. Of the total impairment charge, $17,967 related to the write down of intangible assets and $468 to the write down of goodwill. There was an immaterial loss on the divestiture recorded to Other operating income (expense), net during the nine months ended September 30, 2020. The Company used the proceeds for general business purposes.

The divestiture does not represent a strategic shift and did not have a major effect on the Company’s operations or financial results, as defined by ASC 205-20, Discontinued Operations; as a result, the divestitures did not meet the criteria to be classified as discontinued operations.