Enom 2014 Annual Report Download - page 81

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F-17
discontinued operations, the impact of these disposition transactions would have been to reclassify the following activity in our
consolidated statements of operations from continuing operations to discontinued operations (in thousands):
Year ended December 31, 2014
Service revenue ..................................................................................... $ 1,842
Service costs .......................................................................................... 1,038
Sales and marketing .............................................................................. 559
Product development ............................................................................. 1,432
General and administrative .................................................................... 889
Amortization of intangible assets .......................................................... 890
Loss before income taxes ...................................................................... (2,966)
Income tax benefit ................................................................................. 202
N
et income (loss) .................................................................................. $ (2,764)
Assets Held-For-Sale
We report a business as held-for-sale when management has approved or received approval to sell the business and is committed
to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is probable and
anticipated to occur during the ensuing year and certain other specified criteria are met. A business classified as held-for-sale is
recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its
estimated fair value, a loss is recognized. Depreciation is not recorded on long-lived assets of a business classified as held-for-sale.
Assets and liabilities related to a business classified as held-for-sale are segregated in the unaudited consolidated balance sheet and
major classes are separately disclosed in the notes to the unaudited consolidated financial statements commencing in the period in
which the business is classified as held-for-sale.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09,
Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP.
The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to
customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or
services. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount,
timing and uncertainty of revenue that is recognized. The new guidance is effective for reporting periods beginning after December 15,
2016. Entities have the option of using either a full retrospective or cumulative effect approach to adopt ASU No. 2014-09. We are
currently evaluating the new guidance and have not determined the impact this standard may have on our consolidated financial
statements or the method of adoption.
3. Property and Equipment
Property and equipment consisted of the following (in thousands):
December 31, December 31,
2014
2013
Computers and other related equipment ............................................................. $ 28,776 $ 43,010
Purchased and internally developed software .................................................... 48,875 65,632
Furniture and fixtures ......................................................................................... 3,004 3,868
Leasehold improvements ................................................................................... 7,591 9,075
88,246 121,585
Less accumulated depreciation .......................................................................... (65,410 ) (79,392)
Property and equipment, net .............................................................................. $ 22,836 $ 42,193
At December 31, 2014 and 2013, total software under capital lease and vendor financing obligations consisted of $3.8 million
and $3.8 million with accumulated amortization of $3.7 million and $3.0 million, respectively. Amortization expense for assets under
capital lease and vendor financing obligations for the years ended December 31, 2014, 2013 and 2012 was $0.7 million, $0.7 million
and $0.7 million, respectively.