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87
Note 12: Discontinued Operations
Discontinuation of Certain New Ventures
During 2013, we discontinued four new venture concepts; Rubi, Crisp Market, Orango, and Star Studio. As a result, for each
concept we estimated the fair value of assets held utilizing a cash flow approach. For each of the concepts and for certain
shared service assets used for the new ventures, we estimated the fair value of the assets was zero and recorded impairment
charges for each concept. Total asset impairment charges related to the concepts and relevant shared service assets were
recorded in 2013 as follows:
Dollars in thousands
Impairment
Expense
Rubi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,317
Orango . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,551
Crisp Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
Star Studio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,786
Corporate assets utilized for discontinued concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,789
Total impairment expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,732
We completed the wind-down process of all discontinued ventures in 2014. The results of the discontinued ventures and
associated impairment and restructuring charges, net of tax, are recorded within Loss from discontinued operations, net of tax in
our Consolidated Statements of Comprehensive Income (see Note 10: Restructuring). The discontinued concepts did not meet
the criteria to be classified as held for sale and accordingly the assets and liabilities are not separately presented in our
Consolidated Balance Sheets.
Summary Financial Information
The disposition and operating results of the discontinued ventures are presented in discontinued operations in our Consolidated
Statements of Comprehensive Income for all periods presented. The continuing cash flows from these operations after
discontinuation are insignificant and are not segregated from cash flows from continuing operations in all periods presented in
our Consolidated Statements of Cash Flows.
The following table sets forth the components of discontinued operations included in our Consolidated Statements of
Comprehensive Income:
Year Ended December 31,
Dollars in thousands 2014 2013 2012
Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100 $ 4,399 $ 2,159
Loss from discontinued operations before income tax . . . . . . . . . . . . . . . $(1,259)$ (54,395)$ (16,647)
Income tax benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491 21,096 6,425
Loss from discontinued operations, net of tax . . . . . . . . . . . . . . . . . . . . . $(768)$ (33,299)$ (10,222)