| Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
| Jun. 30, 2015 |
| Accounting Policies [Abstract] | |
| Principles of Consolidation | Principles of Consolidation
The
consolidated financial statements include the accounts of the
Company and its subsidiaries. The Company also evaluates its
ownership in entities to determine if they are variable interest
entities (“VIEs”), if the Company has a variable
interest in those entities, and if the nature and extent of those
interests result in consolidation. Refer to Note 4 for more
information on VIEs. The Company applies the cost method of
accounting for investments in entities if the Company do not have
the ability to exercise significant influence over the entities.
The interests held at cost are periodically evaluated for
other-than-temporary declines in value. Intercompany balances and
transactions have been eliminated in consolidation. Certain amounts
have been reclassified to conform to current year
presentation. |
| Use of Estimates | Use of
Estimates
The preparation
of financial statements in conformity with accounting principles
generally accepted in the United States of America
(“GAAP”) requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenue
and expenses during the reporting period. These estimates are based
on information available as of the date of the financial
statements; therefore, actual results could differ from those
estimates. |
| Revenue Recognition | Revenue
Recognition
Direct
Marketing Services (“DMS”) revenue, which constituted
more than 99% in fiscal year 2015, 2014, and 2013, is derived from
fees which are earned through the delivery of qualified leads,
clicks, calls, customers and, to a lesser extent, display
advertisements, or impressions. The Company recognizes revenue when
persuasive evidence of an arrangement exists, delivery has
occurred, the fee is fixed or determinable and collectability is
reasonably assured. Delivery is deemed to have occurred at the time
a qualified lead, inquiry, click, call, application, customer or
impression is delivered to the client provided that no significant
obligations remain.
The Company
allocates revenue in an arrangement using the estimated selling
price (“ESP”) of deliverables if it does not have
vendor-specific objective evidence (“VSOE”) of selling
price based on historical stand-alone sales or third-party evidence
(“TPE”) of selling price. Due to the unique nature of
some of its multiple deliverable revenue arrangements, the Company
may not be able to establish selling prices based on historical
stand-alone sales or third-party evidence, therefore the Company
may use its best estimate to establish selling prices for these
arrangements under the standard. The Company establishes best
estimates within a range of selling prices considering multiple
factors including, but not limited to, class of client, size of
transaction, available media inventory, pricing strategies and
market conditions. The Company believes the use of the best
estimate of selling price allows revenue recognition in a manner
consistent with the underlying economics of the
transaction.
From time to
time, the Company may agree to credit a client for certain leads,
inquiries, clicks, calls, applications, customers or impressions if
they fail to meet the contractual or other guidelines of a
particular client. The Company has established a sales reserve
based on historical experience. To date, such credits have been
within management’s expectations.
For a portion
of its revenue, the Company has agreements with providers of online
media or traffic, publishers, used in the generation of qualified
leads, inquiries, clicks, calls, applications, and customers. The
Company receives a fee from its clients and pays a fee to
publishers as a portion of revenue generated or on a cost per lead,
cost per click or cost per thousand impressions basis. The Company
is the primary obligor in the transaction. As a result, the fees
paid by the Company’s clients are recognized as revenue and
the fees paid to its publishers are included in cost of
revenue.
All other
revenue, which constituted less than 1% in fiscal year 2015, 2014,
and 2013, comprises (i) set-up and professional services fees
and (ii) usage fees. Set-up and professional service fees that
do not provide stand-alone value to a client are recognized over
the contractual term of the agreement or the expected client
relationship period, whichever is longer, effective when the
application reaches the “go-live” date. The Company
defines the “go-live” date as the date when the
application enters into a production environment or all essential
functionalities have been delivered. Usage fees are recognized on a
monthly basis as earned.
Deferred
revenue is comprised of contractual billings in excess of
recognized revenue and payments received in advance of revenue
recognition. |
| Concentrations of Credit Risk | Concentrations of Credit Risk
Financial
instruments that potentially subject the Company to significant
concentrations of credit risk consist principally of cash and cash
equivalents and accounts receivable. The Company’s investment
portfolio consists of money market funds. Cash is deposited with
financial institutions that management believes are creditworthy.
To date, the Company has not experienced any losses on its
investment portfolio.
The
Company’s accounts receivable are derived from clients
located principally in the United States. The Company performs
ongoing credit evaluation of its clients, does not require
collateral, and maintains allowances for potential credit losses on
client accounts when deemed necessary. No client accounted for 10%
or more of net accounts receivable or net revenue for fiscal years
2015, 2014 or 2013. |
| Fair Value of Financial Instruments | Fair
Value of Financial Instruments
The
Company’s financial instruments consist principally of cash
equivalents, accounts receivable, accounts payable, an
acquisition-related promissory note and a revolving loan facility.
The fair value of the Company’s cash equivalents is
determined based on quoted prices in active markets for identical
assets for its money market funds. The recorded values of the
Company’s accounts receivable and accounts payable
approximate their current fair values due to the relatively
short-term nature of these accounts. The fair value of the
acquisition-related promissory note approximates its recorded
amounts as the interest rates on similar financing arrangements
available to the Company at June 30, 2015 approximate the
interest rates implied when the acquisition-related promissory note
was originally issued and recorded. The Company believes that the
fair value of the revolving loan facility approximates its recorded
amount at June 30, 2015 as the interest rate on the revolving
loan facility is variable and is based on market interest rates and
after consideration of default and credit risk. |
| Cash and Cash Equivalents | Cash and
Cash Equivalents
All highly
liquid investments with maturities of three months or less at the
date of purchase are classified as cash equivalents. Cash
equivalents consist of money market funds at June 30,
2015. |
| Property and Equipment | Property
and Equipment
Property and
equipment are stated at cost less accumulated depreciation and
amortization, and are depreciated on a straight-line basis over the
estimated useful lives of the assets, as follows:
Computer
equipment 3 years
Software 3 years
Furniture and
fixtures 3 to 5 years
Leasehold
improvements the shorter of the lease term or the estimated useful
lives of the improvements |
| Internal Software Development Costs | Internal
Software Development Costs
The Company
incurs costs to develop software for internal use. The Company
expenses all costs that relate to the planning and
post-implementation phases of development as product development
expense. Costs incurred in the development phase are capitalized
and amortized over the product’s estimated useful life if the
product is expected to have a useful life beyond six months. Costs
associated with repair or maintenance of existing sites or the
developments of website content are included in cost of revenue in
the accompanying statements of operations. The Company’s
policy is to amortize capitalized internal software development
costs on a product-by-product basis using the straight-line method
over the estimated economic life of the application, which is
generally two years. The Company capitalized $2.5 million, $2.5
million, and $2.5 million in fiscal years 2015, 2014 and 2013.
Amortization of internal software development costs is reflected in
cost of revenue. |
| Goodwill | Goodwill
The Company
conducts a test for the impairment of goodwill at the reporting
unit level on at least an annual basis and whenever there are
events or changes in circumstances that would more likely than not
reduce the estimated fair value of a reporting unit below its
carrying value. Application of the goodwill impairment test
requires judgment, including the identification of reporting units,
assigning assets and liabilities to reporting units, assigning
goodwill to reporting units, and determining the fair value of each
reporting unit. Significant judgments required to estimate the fair
value of reporting units include estimating future cash flows and
determining appropriate discount rates, growth rates, an
appropriate control premium and other assumptions. Changes in these
estimates and assumptions could materially affect the determination
of fair value for each reporting unit which could trigger
impairment.
The Company has
two reporting units for purposes of allocating and testing
goodwill, DMS and DSS. The Company performed its annual goodwill
impairment test on April 30, 2015 for fiscal year 2015. The
Company conducted a qualitative assessment to determine whether it
is necessary to perform a two-step quantitative goodwill impairment
test. In assessing the qualitative factors, the Company considered
the impact of key factors such as changes in industry and
competitive environment, stock price, actual revenue performance
compared to previous years, forecasts and cash flow generation.
Based on the results of the qualitative assessment, there were no
indicators of impairment.
The Company
performed its annual goodwill impairment test on April 30,
2014 for fiscal year 2014. While the Company was permitted to
conduct a qualitative assessment to determine whether it was
necessary to perform a two-step quantitative goodwill impairment
test, for its annual goodwill impairment test in the fourth quarter
of fiscal 2014, the Company performed a quantitative test for both
of its reporting units.
In the first
step of the annual impairment test, the Company compared the fair
value of each reporting unit to its carrying value. The Company
estimated the fair value of the DSS reporting unit using only the
income approach as market comparables were not meaningful. The
Company concluded that the carrying value of the DSS reporting unit
exceeded its estimated fair value. Therefore it performed a Step 2
analysis, as required, and recorded a goodwill impairment charge of
$1.2 million for the entire goodwill of its DSS reporting unit. The
Company estimated the fair value of its DMS reporting unit based on
the Company’s market capitalization and determined that there
were no instances of impairment in its DMS reporting
unit.
The
Company’s public market capitalization sustained a decline
after June 30, 2014 primarily due to the Company’s
operating results in the fourth quarter of fiscal year 2014, to a
value below the net book carrying value of the Company’s
equity. As a result, the Company determined that this triggered the
necessity to conduct an interim goodwill impairment test as of
June 30, 2014. The Company first tested the long-lived assets
related to the DMS reporting unit as of June 30, 2014 and,
based on the undiscounted cash flows, determined that these assets
were not impaired.
A two-step
process was then required to test goodwill impairment. The first
step was to determine if there is an indication of impairment by
comparing the estimated fair value to its carrying value including
goodwill. Goodwill is considered impaired if the carrying value
exceeds the estimated fair value. Upon indication of impairment, a
second step is performed to determine the amount of the impairment
by comparing the implied fair value of the reporting unit’s
goodwill with its carrying value.
The Company
estimated the fair value of its DMS reporting unit using a
weighting of fair values derived most significantly from the market
approach which approximated the Company’s market
capitalization and to a lesser extent the income approach. Under
the market approach, the Company utilized publicly-traded
comparable company information to determine revenue and earnings
multiples that are used to value its reporting units adjusted for
an estimated control premium. As the DMS reporting unit represented
substantially the entire Company, the market approach was
reconciled to the Company’s market capitalization. Under the
income approach, the Company estimated the fair value of a
reporting unit based on the present value of estimated future cash
flows. Cash flow projections were based on management’s
estimates of revenue growth rates and operating margins, taking
into consideration industry and market conditions. The discount
rate used was based on the weighted-average cost of capital
adjusted for the relevant risk associated with business-specific
characteristics and the uncertainty related to the reporting
unit’s ability to execute on the projected cash
flows.
The second step
of the goodwill impairment test required the Company to fair value
all assets and liabilities of its DMS reporting unit to determine
the implied fair value of goodwill. The Company compared the
implied fair value of the reporting unit’s goodwill to its
carrying value. This test resulted in a non-cash goodwill
impairment charge in aggregate of $95.6 million for the year ended
June 30, 2014. The inputs used to measure the estimated fair
value of goodwill are classified as a Level 3 fair value
measurement due to the significance of unobservable inputs in
income approach using company specific information. |
| Long-Lived Assets | Long-Lived Assets
The Company
evaluates long-lived assets, such as property and equipment and
purchased intangible assets with finite lives, for impairment
whenever events or changes in circumstances indicate that the
carrying value of an asset may not be recoverable. The Company
applies judgment when assessing the fair value of the assets based
on the undiscounted future cash flows the assets are expected to
generate and recognizes an impairment loss if estimated
undiscounted future cash flows expected to result from the use of
the asset plus net proceeds expected from disposition of the asset,
if any, are less than the carrying value of the asset. When the
Company identifies an impairment, it reduces the carrying amount of
the asset to its estimated fair value based on a discounted cash
flow approach or, when available and appropriate, to comparable
market values. As mentioned in the Goodwill section above, our
public market capitalization sustained a decline after
June 30, 2014 and, based on the undiscounted cash flows,
determined that these assets were not impaired as of June 30,
2014. The Company re-evaluated its long-lived assets as of
April 30, 2015 and determined that these assets were not
impaired. Intangible asset are amortized on a straight-line basis
over the estimated useful lives of the assets. The weighted average
useful life of intangible assets was 8 years as of June 30,
2015 and 7 years as of June 30, 2014. |
| Advertising Costs | Advertising Costs
The Company
expenses advertising costs the first time the advertising takes
place. The Company’s advertising costs were $0.7 million and
$1.1 million in fiscal years 2015 and 2014. The Company did not
incur any advertising costs for fiscal year 2013. |
| Income Taxes | Income
Taxes
The Company
accounts for income taxes using an asset and liability approach to
record deferred taxes. The Company’s deferred income tax
assets represent temporary differences between the financial
statement carrying amount and the tax basis of existing assets and
liabilities that will result in deductible amounts in future years.
Based on estimates, the carrying value of the Company’s net
deferred tax assets assumes that it is more likely than not that
the Company will be able to generate sufficient future taxable
income in the respective tax jurisdictions. The Company’s
judgments regarding future profitability may change due to future
market conditions, changes in U.S. or international tax laws
and other factors. |
| Foreign Currency Translation | Foreign
Currency Translation
The
Company’s foreign operations are subject to exchange rate
fluctuations. The majority of the Company’s sales and
expenses are denominated in U.S. dollars. The functional
currency for the majority of the Company’s foreign
subsidiaries is the U.S. dollar. For these subsidiaries,
assets and liabilities denominated in foreign currency are
remeasured into U.S. dollars at current exchange rates for
monetary assets and liabilities and historical exchange rates for
nonmonetary assets and liabilities. Net revenue, cost of revenue
and expenses are generally remeasured at average exchange rates in
effect during each period. Gains and losses from foreign currency
remeasurement are included in other income (expense), net in the
consolidated statement of operations. Certain foreign subsidiaries
designate the local currency as their functional currency. For
those subsidiaries, the assets and liabilities are translated into
U.S. dollars at exchange rates in effect at the balance sheet
date. Income and expense items are translated at average exchange
rates for the period. The foreign currency translation adjustments
are included in accumulated other comprehensive loss as a separate
component of stockholders’ equity. Foreign currency
transaction gains and losses are recorded in other income
(expense), net and were not material for any period
presented. |
| Comprehensive Loss | Comprehensive Loss
Comprehensive
loss consists of two components, net loss and other comprehensive
income (loss). Other comprehensive income (loss) refers to revenue,
expenses, gains, and losses that under GAAP are recorded as an
element of stockholders’ equity but are excluded from net
loss. The Company’s comprehensive loss and accumulated other
comprehensive loss consists of foreign currency translation
adjustments from those subsidiaries not using the U.S. dollar
as their functional currency, unrealized gains and losses on
marketable securities categorized as available-for-sale and
unrealized gains and losses on the interest rate swap. Total
accumulated other comprehensive loss is displayed as a separate
component of stockholders’ equity. |
| Derivative Instrument | Derivative Instrument
During the
third quarter of fiscal year 2012, the Company entered into an
interest rate swap agreement to hedge the interest rate exposure
relating to its borrowing under its term loan facility. The Company
does not speculate using derivative instruments. The Company
entered into this derivative instrument arrangement solely for the
purpose of risk management.
The current and
noncurrent portion of the interest rate swap was recorded in
accrued liabilities and other liabilities, noncurrent,
respectively, on the consolidated balance sheets at fair value
based upon quoted market prices at June 30, 2014. Changes in
the fair value of this interest rate swap are recorded in other
comprehensive (loss) income because the Company has designated the
swap as a cash flow hedge. Gains or losses on the interest rate
swap as reported in other comprehensive income (loss) are
classified to interest expense in the period the hedged item
affects earnings. In June 2015, in conjunction with the termination
of the term loan facility, the Company terminated its interest rate
swap. Refer to Note 8, Debt, for additional information regarding
the Company’s interest rate swap. |
| Loss Contingencies | Loss
Contingencies
The Company is
subject to the possibility of various loss contingencies arising in
the ordinary course of business. Management considers the
likelihood of loss or impairment of an asset or the incurrence of a
liability, as well as its ability to reasonably estimate the amount
of loss, in determining loss contingencies. An estimated loss
contingency is accrued when it is probable that an asset has been
impaired or a liability has been incurred and the amount of loss
can be reasonably estimated. The Company regularly evaluates
current information available to its management to determine
whether such accruals should be adjusted and whether new accruals
are required.
From time to
time, the Company is involved in disputes, litigation and other
legal actions. The Company records a charge equal to at least the
minimum estimated liability for a loss contingency only when both
of the following conditions are met: (i) information available
prior to issuance of the financial statements indicates that it is
probable that an asset had been impaired or a liability had been
incurred at the date of the financial statements, and (ii) the
range of loss can be reasonably estimated. The actual liability in
any such matters may be materially different from the
Company’s estimates, which could result in the need to adjust
the liability and record additional expenses. |
| Stock-Based Compensation | Stock-Based Compensation
The Company
measures and records the expense related to stock-based
transactions based on the fair values of stock-based payment
awards, as determined on the date of grant. To estimate the fair
value of stock options, the Company selected the Black-Scholes
option pricing model. In applying the Black-Scholes option pricing
model, the Company’s determination of the fair value of the
stock option is affected by assumptions regarding a number of
highly complex and subjective variables. These variables include,
but are not limited to, the Company’s expected stock price
volatility over the term of the stock options and the
employees’ actual and projected stock option exercise and
pre-vesting employment termination behaviors. The fair value of
restricted stock units is determined based on the closing price of
the Company’s common stock on the date of grant.
For awards with
graded vesting the Company recognizes stock-based compensation
expense over the requisite service period using the straight-line
method, based on awards ultimately expected to vest. The Company
estimates future forfeitures at the date of grant and revises the
estimates, if necessary, in subsequent periods if actual
forfeitures differ from those estimates. Refer to Note 10, Stock
Benefit Plans, for additional information regarding stock-based
compensation. |
| 401(k) Savings Plan | 401(k)
Savings Plan
The Company
sponsors a 401(k) defined contribution plan covering all
U.S. employees. There were no employer contributions under
this plan for fiscal years 2015, 2014 or 2013. |
| Recent Accounting Pronouncements | Recent
Accounting Pronouncements
In July 2013,
the FASB issued a new accounting standard update on the financial
presentation of unrecognized tax benefits. The new guidance
provides that a liability related to an unrecognized tax benefit
would be presented as reduction of a deferred tax asset for a net
operating loss carryforward, a similar tax loss or a tax credit
carryforward if such settlement is required or expected in the
event the uncertain tax position is disallowed. The new guidance
becomes effective for fiscal years beginning after
December 15, 2014, and it should be applied prospectively to
unrecognized tax benefits that exist at the effective date,
although retrospective application is permitted. The adoption of
this standard is not expected to have a material effect on the
Company’s consolidated financial statements.
In May 2014,
the FASB issued a new accounting standard update on revenue from
contracts with clients. The new guidance provides that an entity
should recognize revenue to depict the transfer of promised goods
or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in
exchange for those goods or services. The new guidance becomes
effective for fiscal years beginning after December 15, 2017,
and interim periods within those years with early adoption
permitted. The Company is currently assessing the impact of this
new guidance.
In June 2014,
the FASB issued a new accounting standard update on accounting for
share-based payments when the terms of an award provide that a
performance target could be achieved after the requisite service
period, which amends ASC 718, “Compensation — Stock
Compensation.” The amendment provides guidance on the
treatment of shared-based payment awards with a specific
performance target, requiring that a performance target that
affects vesting and that could be achieved after the requisite
service period be treated as a performance condition. The new
guidance becomes effective for fiscal years, and interim periods
within those years, beginning after December 15, 2015 with
early adoption permitted. The Company is currently evaluating the
impact of this guidance.
In August 2014,
the FASB issued new guidance related to the disclosures around
going concern. The new standard provides guidance around
management’s responsibility to evaluate whether there is
substantial doubt about an entity’s ability to continue as a
going concern and to provide related footnote disclosures. The new
guidance becomes effective for fiscal years beginning after
December 15, 2016, and interim periods within those years,
with early adoption permitted. The adoption of this standard is not
expected to have a material impact on the Company’s
consolidated financial statements.
In April 2015,
the FASB issued a new accounting standard update on the
presentation of debt issuance costs. The new guidance provides that
debt issuance costs related to a recognized debt liability be
presented as a direct reduction from its carrying value. The new
guidance becomes effective for fiscal years beginning after
December 15, 2015, and interim periods within those years,
with early adoption permitted. The adoption of this standard is not
expected to have a material impact on the Company’s
consolidated financial statements. |
| Net Loss per Share | Basic net loss
per share is computed by dividing net loss by the weighted average
number of shares of common stock outstanding during the period.
Diluted net loss per share is computed by using the
weighted-average number of shares of common stock outstanding,
including potential dilutive shares of common stock assuming the
dilutive effect of outstanding stock options and restricted stock
units using the treasury stock method. |
| Fair Value Measurements and Marketable Securities | Fair value is
defined as the price that would be received on sale of an asset or
paid to transfer a liability (“exit price”) in an
orderly transaction between market participants at the measurement
date. The FASB has established a fair value hierarchy that
distinguishes between (1) market participant assumptions
developed based on market data obtained from independent sources
(observable inputs) and (2) an entity’s own assumptions
about market participant assumptions developed based on the best
information available in the circumstances (unobservable inputs).
The fair value hierarchy consists of three broad levels, which
gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the
lowest priority to unobservable inputs (Level 3).
The three
levels of the fair value hierarchy under the guidance for fair
value measurement are described below:
Level 1 —
Inputs are unadjusted quoted prices in active markets for identical
assets or liabilities. Pricing inputs are based upon quoted prices
in active markets for identical assets or liabilities that the
reporting entity has the ability to access at the measurement date.
The valuations are based on quoted prices of the underlying
security that are readily and regularly available in an active
market, and accordingly, a significant degree of judgment is not
required. As of June 30, 2015 and 2014, the Company used Level
1 assumptions for its money market funds.
Level 2 —
Pricing inputs are based upon quoted prices for similar instruments
in active markets, quoted prices for identical or similar
instruments in markets that are not active, and model-based
valuation techniques for which all significant assumptions are
observable in the market or can be corroborated by observable
market data for substantially the full term of the assets or
liabilities. As of June 30, 2015 and 2014, the Company used
Level 2 assumptions for its U.S. municipal securities, certificates
of deposit, acquisition-related promissory notes, revolving loan
facility, term loan facility, and interest rate swap.
Level 3 —
Pricing inputs are generally unobservable for the assets or
liabilities and include situations where there is little, if any,
market activity for the investment. The inputs into the
determination of fair value require management’s judgment or
estimation of assumptions that market participants would use in
pricing the assets or liabilities. The fair values are therefore
determined using model-based techniques that include option pricing
models, discounted cash flow models, and similar techniques. As of
June 30, 2015 and 2014, the Company did not have any Level 3
financial assets or liabilities. |
| Marketable Securities | Marketable Securities
All liquid
investments with maturities of three months or less at the date of
purchase are classified as cash equivalents. Investments with
maturities greater than three months at the date of purchase are
classified as marketable securities. The Company’s marketable
securities have been classified and accounted for as
available-for-sale. Management determines the appropriate
classification of its investments at the time of purchase and
reevaluates the available-for-sale designation as of each balance
sheet date. Available-for-sale securities are carried at fair
value, with unrealized gains and losses, net of tax, reported in
accumulated comprehensive loss as a component of
stockholders’ equity and are presented as current assets as
they are available for current operations. |
| Variable Interest Entities | Variable
Interest Entities
In April 2015,
the Company purchased an interest in a privately held entity that
is a VIE. A VIE is consolidated by its primary beneficiary. The
primary beneficiary has both the power to direct the activities
that most significantly impact the entity’s economic
performance and the obligation to absorb losses or the right to
receive benefits from the entity that could potentially be
significant to the VIE. The assessment of whether the Company is
the primary beneficiary of the VIE require significant assumptions
and judgments, including the identification of significant
activities and an assessment of our ability to direct those
activities. Based on the results of the assessment performed, the
Company has concluded that it is not the primary beneficiary as it
does not have the ability to exert significant influence over the
VIE’s operations. Accordingly, the interest of
$2.5 million as of June 30, 2015 is recognized at cost in
other assets, noncurrent on the Company’s consolidated
balance sheet. The Company’s interest was evaluated for
impairment as of June 30, 2015 which did not result in any
indications of impairment. The Company’s maximum exposure to
loss as a result of the unconsolidated VIE was $2.5 million at
June 30, 2015, which represents the value of the
Company’s investment in the VIE. |
| Interest Rate Swap | The Company
entered into an interest rate swap to reduce its exposure to the
financial impact of changing interest rates under its term loan
facility. The swap encompasses the principal balances scheduled to
be outstanding as of January 1, 2014 and thereafter, such
principal amount totaling $85.0 million in January 2014 and
amortizing to $35.0 million in November 2016. The effective date of
the swap is April 9, 2012 with a maturity date of
November 4, 2016. The swap agreement exchanges a variable
interest rate base (Eurodollar margin) for a fixed interest rate of
0.97% over the term of the agreement. This interest rate swap is
designated as a cash flow hedge of the interest rate risk
attributable to forecasted variable interest payments. The
effective portion of the fair value gains or losses on this swap
are included as a component of accumulated other comprehensive
loss. |
| Segment Information | Operating
segments are defined as components of an enterprise about which
separate financial information is available that is evaluated
regularly by the chief operating decision maker, or decision making
group, in deciding how to allocate resources and in assessing
performance. The Company’s chief operating decision maker is
its chief executive officer. The Company’s chief executive
officer reviews financial information presented on a consolidated
basis, accompanied by information about operating segments,
including net sales and operating loss before depreciation and
amortization, stock-based compensation expense and goodwill
impairment. |
