Discontinued Operations

6 Months Ended

Jun. 30, 2014

Discontinued Operations

Discontinued Operations

3. Discontinued Operations

During the second quarter of 2014, we discontinued the operation of two of our retail stores, located in Huntington Beach, California and Chicago, Illinois and our OnSale and eCost businesses. The financial results of these operations, which were historically reported as part of our MacMall segment, have been excluded from our results from continuing operations for all periods presented herein and have been presented as discontinued operations. The revenues, operating and non-operating results of the discontinued operations are reflected in a single line item entitled “Loss from discontinued operations, net of taxes” on our Condensed Consolidated Statements of Operations, and the related assets and liabilities are presented in our Condensed Consolidated Balance Sheets in line items entitled “Current assets of discontinued operations,” “Non-current assets of discontinued operations” and “Current liabilities of discontinued operations” for all periods presented herein.

The carrying amounts of major classes of assets and liabilities that have been included in such balance sheet line items, as described above, in our Condensed Consolidated Balance Sheets were as follows (in thousands):

	June 30, 2014		December 31, 2013
Accounts receivable, net	$	111	$	273
Inventories, net	166		1,700
Current assets of discontinued operations	277		1,973
Fixed assets, net	—		768
Intangible assets, net	—		466
Other non-current assets	14		14
Non-current assets of discontinued operations	14		1,248
Total assets of discontinued operations	$	291	$	3,221
Accounts payable	$	191	$	130
Accrued expenses and other current liabilities	777		1,557
Deferred revenue	13		29
Current liabilities of discontinued operations	$	981	$	1,716

The operating results of our discontinued operations reported in “Loss from discontinued operations, net of taxes” in our Condensed Consolidated Statements of Operations were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net sales	$	6,783		$	10,924		$	15,114		$	25,482
Loss before income taxes	$	(1,179	)	$	(365	)	$	(1,421	)	$	(662	)
Income tax benefit	(487		)	(156		)	(588		)	(280		)
Loss from discontinued operations, net of taxes	$	(692	)	$	(209	)	$	(833	)	$	(382	)