Business Segment Information and Geographic Data

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segment Information and Geographic Data

Business Segment Information and Geographic Data

Beginning in the fourth quarter of 2015, in conjunction with our accelerated wind-down of the Company's legacy business, the Company changed the manner in which it evaluates the operations of the Company and makes decisions around the allocation of resources. The Company operated in three reportable segments as of December 31, 2015: “Nexsan”, “IronKey” and "Storage Media and Accessories." Nexsan is expected to be our go forward business. (See Note 18 - Subsequent Events on the sale of IronKey on February 2, 2016). Storage Media and Accessories (consisting of our Commercial Storage Media, Consumer Storage Media and Audio and Accessories product categories) is collectively referred to as our "legacy business" and is in the process of being wound-down (which is expected to be completed in the first quarter of 2016). Going forward, we will focus on Nexsan business and evaluating other investment opportunities.

The segment information for prior periods have been revised to conform to the 2015 reportable segment presentation.    

We evaluate segment performance based on revenue and operating income (loss). The operating income (loss) reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. The corporate and unallocated operating loss includes costs which are not allocated to the business segments in management’s evaluation of segment performance such as litigation settlement expense, goodwill impairment, intangible impairments, intangible asset abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring programs and restructuring and other expenses. Inventory and accounts receivable write-offs incurred for the year-ended December 31, 2015 of $9.7 million and $5.2 million, respectively have been absorbed by their respective business segments.

During the first quarter of 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses. The operating results for these businesses are presented in our Consolidated Statements of Operations as discontinued operations and are not included in segment results for any periods presented. See Note 4 - Acquisitions and Divestitures for further information.

Net revenue and operating income (loss) by segment were as follows:

	Years Ended December 31,
	2015		2014		2013
	(In millions)
Net Revenue
Nexsan	$	62.8	$	63.5	78.2
IronKey	18.9		20.6		22.4
Storage Media and Accessories	447.5		645.4		760.2
Total Net Revenue	$	529.2	$	729.5	$	860.8

	Years Ended December 31,
	2015			2014			2013
	(In millions)
Operating Income (Loss)
Nexsan	$	(25.4	)	$	(34.3	)	$	(14.8	)
IronKey	(6.9		)	(10.4		)	(12.5		)
Storage Media and Accessories	(2.2		)	25.7			55.9
Total segment operating income (loss)	(34.5		)	(19.0		)	28.6
Corporate and unallocated	(142.8		)	(85.1		)	(48.7		)
Total operating loss	(177.3		)	(104.1		)	(20.1		)
Interest income	(0.4		)	(0.5		)	(0.2		)
Interest expense	3.3			2.6			2.5
Other expense, net	1.3			3.1			0.6
Loss from continuing operations before income taxes	$	(181.5	)	$	(109.3	)	$	(23.0	)

We have not provided specific asset information by segment, as it is not provided to our chief operating decision maker for review at a segment specific level. Corporate and unallocated amounts above include non-cash goodwill impairment charges of $36.1 million and $35.4 million for the years ended December 31, 2015and 2014, respectively, non-cash intangible asset impairment charges of $37.6 million for the year ended December 31, 2015, restructuring and other costs of $47.9 million, $13.6 million and $11.3 million for the years ended December 31, 2015, 2014 and 2013, respectively, and other corporate expenses of $21.2 million and $36.1 million and $39.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. The 2013 operating loss also included a $10.6 million loss related to the settlement of our UK pension plan and a $9.8 gain on the sale of land at a previously closed facility and a litigation settlement gain of $2.5 million.

The following table presents net revenue by geographical region based on the country in which the revenue originated:

	Years Ended December 31,
	2015		2014		2013
	(In millions)
Net Revenue
United States	$	207.2	$	253.6	$	348.1
International	322.0		475.9		512.7
Total	$	529.2	$	729.5	$	860.8

The United States and Japan each comprise more than 10 percent of our total net revenue. Net revenue from Japan was 24.0 percent, 23.5 percent and 20.6 percent of total net revenue for the years ended December 31, 2015, 2014 and 2013, respectively.

The following table presents long-lived assets by geographical region:

	As of December 31,
	2015		2014		2013
	(In millions)
Long-Lived Assets
United States	$	3.0	$	41.6	$	47.0
International	1.6		3.4		4.6
Total	$	4.6	$	45.0	$	51.6