United Online (UNTD) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information
Entity Registrant Name	UNITED ONLINE INC
Entity Central Index Key	1,142,701
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,818,359
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 99,650	$ 78,634
Accounts receivable, net of allowance	10,567	14,112
Inventories, net	7,985	5,413
Deferred tax assets, net	186	192
Other current assets	13,074	6,415
Assets of discontinued operations		5,672
Total current assets	131,462	110,438
Property and equipment, net	13,724	15,040
Deferred tax assets, net	1,349	1,549
Goodwill	47,143	46,862
Intangible assets, net	428	734
Other assets	1,082	1,161
Assets of discontinued operations		32,811
Total assets	195,188	208,595
Current liabilities:
Accounts payable	10,161	9,707
Accrued liabilities	9,871	18,545
Member redemption liability	7,070	7,287
Deferred revenue	14,142	16,168
Deferred tax liabilities, net	344	529
Liabilities of discontinued operations		31,545
Total current liabilities	41,588	83,781
Member redemption liability	10,994	11,360
Deferred revenue	17	17
Deferred tax liabilities, net	1,623	805
Other liabilities	6,017	5,766
Liabilities of discontinued operations		5,153
Total liabilities	$ 60,239	$ 106,882
Commitments and contingencies
Stockholders' equity:
Common stock	$ 1	$ 1
Additional paid-in capital	221,257	215,302
Accumulated other comprehensive loss	(3,326)	(3,158)
Accumulated deficit	(82,983)	(110,432)
Total stockholders' equity	134,949	101,713
Total liabilities and stockholders' equity	$ 195,188	$ 208,595

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 36,289	$ 39,989	$ 111,011	$ 123,906
Operating expenses:
Cost of revenues	14,735	14,615	44,389	45,849
Sales and marketing	6,586	6,621	21,098	24,005
Technology and development	3,330	3,963	11,562	13,251
General and administrative	8,861	11,991	28,667	37,300
Amortization of intangible assets	102	105	308	317
Restructuring and other exit costs	(20)	521	944	2,744
Total operating expenses	33,594	37,816	106,968	123,466
Operating income	2,695	2,173	4,043	440
Interest income	150	101	331	292
Other income, net	320	257	390	324
Income before income taxes	3,165	2,531	4,764	1,056
Provision for income taxes	1,284	1,542	2,439	5,346
Income (loss) from continuing operations	1,881	989	2,325	(4,290)
Income (loss) from discontinued operations, net of tax	24,070	(783)	25,124	(8,141)
Net income (loss)	25,951	206	27,449	(12,431)
Income allocated to participating securities	(962)	(12)	(1,139)
Net income (loss) attributable to common stockholders	$ 24,989	$ 194	$ 26,310	$ (12,431)
Basic net income (loss) per common share:
Continuing operations (in dollars per share)	$ 0.06	$ 0.07	$ 0.08	$ (0.30)
Discontinued operations (in dollars per share)	1.63	(0.06)	1.72	(0.58)
Basic net income (loss) per common share (in dollars per share)	$ 1.69	$ 0.01	$ 1.80	$ (0.88)
Shares used to calculate basic net income (loss) per common share	14,770	14,178	14,622	14,069
Diluted net income (loss) per common share:
Continuing operations (in dollars per share)	$ 0.06	$ 0.07	$ 0.08	$ (0.30)
Discontinued operations (in dollars per share)	1.63	(0.06)	1.71	(0.58)
Diluted net income (loss) per common share (in dollars per share)	$ 1.69	$ 0.01	$ 1.79	$ (0.88)
Shares used to calculate diluted net income (loss) per common share	14,789	14,180	14,693	14,069

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 25,951	$ 206	$ 27,449	$ (12,431)
Cash flow hedges:
Changes in net gains (losses) on derivatives, net of tax benefit of $0 and $19 for the quarters ended September 30, 2015 and 2014 and $0 and $0 for the nine months ended September 30, 2015 and 2014, respectively	(3)	(22)	4	6
Derivative settlement (gains) losses reclassified into earnings, net of tax provision of $0 and $1 for the quarters ended September 30, 2015 and 2014 and $0 and $0 for the nine months ended September 30, 2015 and 2014, respectively	9	(27)	48	(25)
Other hedges:
Changes in net gains on derivatives, net of tax benefit of $0 and $3 for the quarters ended September 30, 2015 and 2014 and $0 and $0 for the nine months ended September 30, 2015 and 2014, respectively		189		193
Foreign currency translation	109	(634)	(220)	(528)
Other comprehensive income (loss)	115	(494)	(168)	(354)
Comprehensive income (loss)	$ 26,066	$ (288)	$ 27,281	$ (12,785)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Changes in net gains (losses) on derivatives designated as cash flow hedges, tax provision	$ 0	$ 19	$ 0	$ 0
Derivative settlement (gains) losses reclassified into earnings, tax provision	0	1	0	0
Changes in net gains on derivatives designated as other hedges, tax provision	$ 0	$ 3	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Balance at Dec. 31, 2014	$ 1	$ 215,302	$ (3,158)	$ (110,432)	$ 101,713
Balance (in shares) at Dec. 31, 2014	14,289
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		1,693			1,693
Exercise of stock options (in shares)	143
Issuance of common stock through ESPP		936			936
Issuance of common stock through ESPP (in shares)	94
Vesting of restricted stock units (in shares)	254
Repurchases of common stock		(1,433)			(1,433)
Stock-based compensation		4,759			4,759
Other comprehensive loss			(168)		(168)
Net income				27,449	27,449
Balance at Sep. 30, 2015	$ 1	$ 221,257	$ (3,326)	$ (82,983)	$ 134,949
Balance (in shares) at Sep. 30, 2015	14,780

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ 27,449	$ (12,431)
Less: Income (loss) from discontinued operations, net of tax	25,124	(8,141)
Income (loss) from continuing operations	2,325	(4,290)
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities:
Depreciation and amortization	4,984	5,276
Stock-based compensation	4,595	6,048
Provision for doubtful accounts receivable	10	(43)
Deferred taxes, net	759	788
Excess tax benefits from equity awards		(51)
Other, net	287	732
Changes in operating assets and liabilities, net of effects of acquisitions and discontinued operations :
Accounts receivable, net	3,399	6,070
Inventories, net	(2,925)	3,002
Other assets	(3,530)	580
Accounts payable and accrued liabilities	(7,575)	1,620
Member redemption liability	(583)	(2,055)
Deferred revenue	(1,171)	(1,327)
Other liabilities	251	(1,306)
Net cash provided by operating activities from continuing operations	826	15,044
Cash flows from investing activities:
Purchases of property and equipment	(4,260)	(5,306)
Purchases of investments		(44)
Proceeds from sales of investments	186	126
Proceeds from sales of assets, net		30
Net cash used for investing activities from continuing operations	(4,074)	(5,194)
Cash flows from financing activities:
Proceeds from exercises of stock options	1,693
Proceeds from employee stock purchase plans	936	826
Repurchases of common stock	(1,433)	(2,380)
Excess tax benefits from equity awards		51
Net cash provided by (used for) financing activities from continuing operations	1,196	(1,503)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(969)	(1,173)
Net cash provided by (used for) discontinued operations:
Operating activities	(2,198)	5,246
Investing activities	26,075	(4,392)
Financing activities		5
Effect of a change in cash and cash equivalents on discontinued operations	160	(81)
Net cash from discontinued operations	24,037	778
Change in cash and cash equivalents	21,016	7,952
Cash and cash equivalents, beginning of period	78,634	68,047
Cash and cash equivalents, end of period	$ 99,650	$ 75,999

DESCRIPTION OF BUSINESS, BASIS

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2015
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS	1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS Description of Business United Online, Inc. (together with its subsidiaries, "United Online" or the "Company"), through its operating subsidiaries, provides consumer services and products over the Internet under a number of brands, including NetZero, Juno, MyPoints, StayFriends, and Trombi. Effective in the first quarter of 2015, the Company modified how it reports segment information to the Company's Chief Operating Decision Maker ("CODM") because the information regularly reviewed by the CODM had changed. As a result of the changes, the Company now reports three operating segments to the CODM, including the Communications segment, as well as separately reporting the operating results of the Commerce & Loyalty and Social Media segments (which in prior periods were reported to the CODM together as the Content & Media segment). This change has been reflected through a retroactive revision of prior-period segment information to conform to the newly-defined segment information. As discussed above, the Company reports its business in three reportable segments: Communications, Commerce & Loyalty and Social Media. The Company's primary Communications service is Internet access. The Company's Commerce & Loyalty segment promotes commerce and user engagement through its loyalty marketing service and provides a complete web, browser and mobile shopping experience through a portfolio of online portals, apps, and browser extensions. The Company's Social Media segment provides social networking services and products. On a combined basis, the Company's web properties attract a significant number of Internet users and the Company offers a broad array of Internet marketing services for advertisers. In August 2015, the Company consummated the sale of its Classmates domestic business unit to Intelius Holdings, Inc. The purchase price received for Classmates domestic business unit was approximately $30 million in cash, subject to a post-closing working capital adjustment. The Stock Purchase Agreement for the sale included customary representations, warranties and covenants of each party, some of which survive the closing of the transaction for a period of time. Accordingly, the results of operations, the financial condition and the cash flows of Classmates domestic business unit have been presented as discontinued operations for all periods presented. The Company's corporate headquarters are located in Woodland Hills, California, and the Company also maintains offices in San Francisco, California; Schaumburg, Illinois; Fort Lee, New Jersey; Erlangen, Germany; Berlin, Germany; and Hyderabad, India. Basis of Presentation The Company's unaudited condensed consolidated financial statements for the quarters and nine months ended September 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), including those for interim financial information, and with the instructions for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (the "SEC"). Accordingly, such financial statements do not include all of the information and note disclosures required by GAAP for complete financial statements. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the results for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for any future periods. The unaudited condensed consolidated balance sheet at December 31, 2014 was derived from the Company's audited consolidated financial statements, filed on March 2, 2015, with the SEC in the Company's Annual Report on Form 10- K for the year ended December 31, 2014, but does not include all of the disclosures required by GAAP. The unaudited condensed consolidated balance sheet at December 31, 2014 was revised for the purposes of discontinued operations presentation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates and assumptions. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 10-K. The most significant areas of the unaudited condensed consolidated financial statements that require management judgment include the Company's revenue recognition, goodwill, definite-lived intangible assets and other long-lived assets, member redemption liability, income taxes, and legal contingencies. The Company believes that its existing cash and cash equivalents and cash generated from operations will be sufficient to fund its working capital requirements, capital expenditures and other obligations through at least the next 12 months. Accounting Policies Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2014 for a discussion of the Company's significant accounting policies. Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The core principle of the guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the new definition of a discontinued operation. The amendments in this ASU are effective prospectively for disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company adopted the standard with no material impact on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The core principle of the guidance is 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 amendments in this ASU will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The amendments should be applied retrospectively. In July 2015, the FASB approved a one-year deferral of the effective date with early adoption permitted. The Company intends to adopt the standard effective January 1, 2018 and is currently assessing the impact of this update on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . The core principle of the guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU No. 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company does not expect this update to have a material impact on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . The update provides GAAP guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. The amendments in this update are effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect this update to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement . The update provides GAAP guidance on evaluating the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this update also provide a basis for evaluating whether a cloud computing arrangement includes a software license. The amendments in this update are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements . The update contains amendments that will affect a wide variety of topics in the Codification. The amendments in this update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does not expect this update to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . The amendments in this update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the impact of this update on its consolidated financial statements.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2015
SEGMENT INFORMATION
SEGMENT INFORMATION	2. SEGMENT INFORMATION Effective in the first quarter of 2015, the Company modified how it reports segment information to the Company's CODM as the information regularly reviewed by the CODM had changed. As a result of the changes, the Company now reports three operating segments to the CODM, including the Communications segment, as well as separately reporting the operating results of the Commerce & Loyalty and Social Media segments (which, in prior periods, were reported to the CODM together as the Content & Media segment). Further, as a result of the sale of Classmates domestic business unit, the Social Media segment results exclude the Classmates domestic business unit (which, in prior periods, was reported as part of the Social Media segment). These changes have been reflected through a retroactive revision of prior-period segment information to conform to the newly-defined segment information. Segment revenues and segment income (loss) from operations (which excludes depreciation and amortization of intangible assets) were as follows (in thousands): Quarter Ended September 30, 2015 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income (loss) from operations $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended September 30, 2014 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income from operations $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2015 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income (loss) from operations $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2014 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income (loss) from operations $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A reconciliation of segment revenues to consolidated revenues was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Segment revenues: Communications $ $ $ $ Commerce & Loyalty Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues Corporate revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A reconciliation of segment operating expenses (which excludes depreciation and amortization of intangible assets) to consolidated operating expenses was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Segment operating expenses: Communications $ $ $ $ Commerce & Loyalty Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment operating expenses Depreciation Amortization of intangible assets Unallocated corporate expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated operating expenses $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A reconciliation of segment income (loss) from operations (which excludes depreciation and amortization of intangible assets) to consolidated income before income taxes was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Segment income (loss) from operations: Communications $ $ $ $ Commerce & Loyalty ) ) ) Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment income from operations Corporate revenues — — — Depreciation ) ) ) ) Amortization of intangible assets ) ) ) ) Unallocated corporate expenses ) ) ) ) Interest income Other income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation expense by segment was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Communications $ $ $ $ Commerce & Loyalty Social Media Unallocated corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total depreciation expense $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of intangible assets by segment was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Commerce & Loyalty $ $ $ $ Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total amortization expense $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic revenues are attributed to countries based on the principal location of the Company's entities from which those revenues were generated. Geographic information for revenues was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States $ $ $ $ Germany Europe, excluding Germany ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic information for long-lived assets, which consist of property and equipment and other assets, was as follows (in thousands): September 30, 2015 December 31, 2014 United States $ $ Germany Other ​ ​ ​ ​ ​ ​ ​ ​ Total long-lived assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment assets are not reported to, or used by, the Company's CODM to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.

BALANCE SHEET COMPONENTS

BALANCE SHEET COMPONENTS	9 Months Ended
	Sep. 30, 2015
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS	3. BALANCE SHEET COMPONENTS Inventories, Net Inventories, net, consisted of the following (in thousands): September 30, 2015 December 31, 2014 Work-in-process $ — $ Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Current Assets Other current assets consisted of the following (in thousands): September 30, 2015 December 31, 2014 Insurance recovery receivable $ $ — Income taxes receivable Prepaid expenses Prepaid insurance Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, 2015 December 31, 2014 Employee compensation and related liabilities $ $ Non-income taxes payable Income taxes payable Customer deposits Reserve for legal settlements Separation payments for an executive officer — Accrued restructuring and other exit costs — Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Liabilities Other liabilities consisted of the following (in thousands): September 30, 2015 December 31, 2014 Income taxes payable $ $ Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss were as follows (in thousands): Gains (Losses) on Cash Flow Hedging Instruments, Net of Tax Gains on Other Hedging Instruments, Net of Tax Foreign Currency Translation Accumulated Other Comprehensive Loss Balance at December 31, 2014 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) ) Amounts reclassified from accumulated other comprehensive loss — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2015 $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ All amounts reclassified from accumulated other comprehensive loss were related to losses on derivatives classified as cash flow hedges. These reclassifications impacted technology and development expenses in the unaudited consolidated statement of operations.

GOODWILL, INTANGIBLE ASSETS AND

GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS	9 Months Ended
	Sep. 30, 2015
GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS
GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS	4. GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS Goodwill The changes in goodwill by reportable segment were as follows (in thousands): Communications Commerce & Loyalty Social Media Total Balance at December 31, 2014: Goodwill (excluding impairment charges) $ $ $ $ Accumulated impairment charges ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at December 31, 2014 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2015: Goodwill (excluding impairment charges) Accumulated impairment charges ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at September 30, 2015 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible Assets, Net Intangible assets, net, consisted of the following (in thousands): September 30, 2015 Gross Value Accumulated Amortization Net Pay accounts and free accounts $ $ ) $ Customer contracts and relationships ) — Trademarks and trade names ) Software and technology ) — Rights, content and intellectual property ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2014 Gross Value Accumulated Amortization Net Pay accounts and free accounts $ $ ) $ Customer contracts and relationships ) — Trademarks and trade names ) Software and technology ) — Rights, content and intellectual property ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization expense related to intangible assets for the quarter and nine months ended September 30, 2015 was $0.1 million and $0.3 million, respectively. Amortization expense related to intangible assets for the quarter and nine months ended September 30, 2014 was $0.1 million and $0.3 million, respectively. Estimated future intangible assets amortization expense at September 30, 2015 was as follows (in thousands): Year Ending December 31, Oct-Dec 2015 Total 2016 2017 2018 Estimated amortization of intangible assets $ $ $ $ $

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2015
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	5. DERIVATIVE INSTRUMENTS The fair and notional values of outstanding derivative instruments were as follows (in thousands): Fair Value of Derivative Instruments Notional Value of Derivative Instruments Balance Sheet Location September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Derivative assets Other current assets $ $ $ $ Derivative liabilities Accrued liabilities $ — $ $ — $

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	6. FAIR VALUE MEASUREMENTS Financial Assets and Derivative Instruments The following table presents information about financial assets and derivative instruments that were required to be measured at fair value on a recurring basis (in thousands): Estimated Fair Value September 30, 2015 Description Level 1 Level 2 Total Assets: Money market funds $ $ — $ Time deposits — Derivative assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated Fair Value December 31, 2014 Description Level 1 Level 2 Total Assets: Money market funds $ $ — $ Time deposits — Derivative assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: Derivative liabilities $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	7. STOCKHOLDERS' EQUITY Common Stock Repurchases In May 2001, the Company's Board of Directors authorized a common stock repurchase program (the "Program") that allows the Company to repurchase shares of its common stock through open market or privately negotiated transactions based on prevailing market conditions and other factors. From time to time since then, the Board of Directors has increased the amount authorized for repurchase under this Program and has extended the Program, which is currently extended through December 31, 2015. From August 2001 through December 2014, the Company had repurchased $150.2 million of its common stock under the Program. There were no repurchases under the Program during the nine months ended September 30, 2015 and, at September 30, 2015, the authorization remaining under the Program was $80.0 million. Shares withheld upon the vesting of restricted stock units and upon the issuance of stock awards to pay minimum statutory employee withholding taxes are considered common stock repurchases, but are not counted as purchases against the Program. Upon vesting of most restricted stock units or issuance of stock awards, we currently do not collect the minimum statutory withholding taxes from employees. Instead, we automatically withhold, from the restricted stock units that vest and from the stock awards that are issued, the portion of those shares with a fair market value equal to the amount of the minimum statutory employee withholding taxes due, which is accounted for as a repurchase of common stock. We then pay the minimum statutory employee withholding taxes in cash. The amounts remitted in the nine months ended September 30, 2015 and 2014 were $1.4 million and $2.4 million, respectively, for which the Company withheld 0.1 million and 0.2 million shares of common stock, respectively, that were underlying the restricted stock units that vested.

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS	9 Months Ended
	Sep. 30, 2015
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS	8. STOCK-BASED COMPENSATION PLANS Stock-Based Compensation The following table summarizes the stock-based compensation that has been included in the following line items within the unaudited condensed consolidated statements of operations (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Operating expenses: Cost of revenues $ $ $ $ Sales and marketing Technology and development General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stock-based compensation $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted Stock Units The following table summarizes activity for restricted stock units (in thousands): Nonvested at December 31, 2014 Granted Vested ) Forfeited/canceled ) ​ ​ ​ ​ ​ Nonvested at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock Options The following table summarizes activity for stock options (in thousands): Outstanding at December 31, 2014 Granted Exercised ) Forfeited/canceled ) ​ ​ ​ ​ ​ Outstanding at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2015
INCOME TAXES
INCOME TAXES	9. INCOME TAXES The Company's provision for income taxes for the quarter ended September 30, 2015 differed from the U.S. federal statutory tax rate of 34% primarily due to a provision for income taxes related to the Company's foreign operations, an income tax accrual related to certain goodwill assets and a tax accrual related to reserves for uncertain tax positions. For the quarter and nine months ended September 30, 2015, the Company utilized the actual effective tax rate (discrete method) in determining the domestic income tax expense, rather than the annual effective tax rate method, as allowed under Accounting Standards Codification ("ASC") 740-270-30-36, Income Taxes—Interim Reporting . The Company's tax provision has an unusual relationship to domestic pre-tax loss primarily due to the existence of a full deferred tax asset valuation allowance. This circumstance generally results in a zero net tax provision since the income tax expense or benefit that would otherwise be recognized is offset by the change in the valuation allowance. However, the tax expense recorded in the quarter and nine months ended September 30, 2015 included an accrual of a non-cash tax expense of approximately $0.3 million and $1.0 million respectively, in connection with the tax amortization of certain goodwill assets that is not available to offset existing deferred tax assets (termed "naked credits"). Specifically, the Company does not consider the deferred tax liabilities related to certain goodwill assets when determining the need for a valuation allowance. In March 2015, the Company reached an audit settlement with the Internal Revenue Service related to tax years 2009 through 2012 and, in connection with such settlement, the Company remitted approximately $6.4 million to the Internal Revenue Service in the quarter ended June 30, 2015, for which the Company had previously established a reserve.

NET INCOME (LOSS) PER COMMON SH

NET INCOME (LOSS) PER COMMON SHARE	9 Months Ended
	Sep. 30, 2015
NET INCOME (LOSS) PER COMMON SHARE
NET INCOME (LOSS) PER COMMON SHARE	10. NET INCOME (LOSS) PER COMMON SHARE The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Income (loss) from continuing operations $ $ $ $ ) Income allocated to participating securities ) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations available to common stockholders ) Income (loss) from discontinued operations, net of tax, available to common stockholders ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to common stockholders $ $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Weighted-average common shares Add: Dilutive effect of non-participating securities — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares used to calculate diluted net income (loss) per common share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per common share: Continuing operations $ $ $ $ ) Discontinued operations ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per common share $ $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per common share: Continuing operations $ $ $ $ ) Discontinued operations ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per common share $ $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The diluted net income (loss) per common share computations exclude stock options and restricted stock units that are antidilutive. Weighted-average antidilutive shares for the quarter and nine months ended September 30, 2015 were 0.9 million and 1.1 million, respectively. Weighted-average antidilutive shares for the quarter and nine months ended September 30, 2014 were 1.2 million and 1.3 million, respectively.

RESTRUCTURING AND OTHER EXIT CO

RESTRUCTURING AND OTHER EXIT COSTS	9 Months Ended
	Sep. 30, 2015
RESTRUCTURING AND OTHER EXIT COSTS
RESTRUCTURING AND OTHER EXIT COSTS	11. RESTRUCTURING AND OTHER EXIT COSTS Restructuring and other exit costs were a result of management's decision to streamline operations, prioritize resources for growth initiatives and increase profitability. The following tables summarize restructuring and other exit costs (in thousands): Accrued restructuring and other exit costs at December 31, 2014 $ Restructuring and other exit costs Cash paid for restructuring and other exit costs ) ​ ​ ​ ​ ​ Accrued restructuring and other exit costs at September 30, 2015 $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2015 Communications Commerce & Loyalty Corporate Total Restructuring and other exit costs: Employee termination costs $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total restructuring and other exit costs $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2014 Communications Commerce & Loyalty Corporate Total Restructuring and other exit costs: Employee termination costs $ $ $ $ Facility closure and relocation costs — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total restructuring and other exit costs $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

CONTINGENCIES-LEGAL MATTERS

CONTINGENCIES-LEGAL MATTERS	9 Months Ended
	Sep. 30, 2015
CONTINGENCIES-LEGAL MATTERS
CONTINGENCIES-LEGAL MATTERS	12. CONTINGENCIES—LEGAL MATTERS In June 2011, Memory Lane, Inc., a California corporation, filed a complaint in United States District Court, Central District of California, against Classmates International, Inc., Classmates Online, Inc. and Classmates, Inc. (then known as Memory Lane, Inc.) ("Classmates"), alleging false designation of origin under the Lanham Act, 15 U.S.C. section 1125, and state and common law unfair competition. The complaint included requests for an award of damages and for preliminary and permanent injunctive relief. Notwithstanding the request for preliminary injunctive relief, no motion for such relief was filed. Classmates responded to the complaint in September 2011. In October 2011, the plaintiff amended its complaint to, among other things, dismiss Classmates International, Inc. and add United Online, Inc. as a defendant. In February 2014, the jury issued a verdict for the defendants, concluding that the defendants did not infringe plaintiff's trademark and the court entered judgment in favor of the defendants. In March 2014 plaintiff filed a notice of appeal of the judgment in favor of defendants. The plaintiff's appeal brief was filed in November 2014. Classmates' opposition brief was filed in December 2014. Plaintiff's reply brief was filed in March 2015. Classmates' reply brief was filed in April 2015. In 2010, Classmates, Inc., and Florists' Transworld Delivery, Inc. and FTD.COM Inc. (together, the "FTD Parties") received subpoenas from the Attorney General for the State of Kansas and the Attorney General for the State of Maryland, respectively. These subpoenas were issued on behalf of a Multistate Work Group that consists of the Attorneys General for the following states: Alabama, Alaska, Delaware, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Michigan, Nebraska, New Mexico, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Vermont, Washington and Wisconsin (the "Multistate Work Group"). The inquiry concerned certain post-transaction sales practices in which these companies previously engaged with certain third-party vendors and certain auto-renewal practices of Classmates, Inc. In May 2015, Classmates, Inc. and the FTD Parties entered into settlement agreements with each member of the Multistate Work Group. Under the terms of the settlement agreements, Classmates, Inc. and the FTD Parties denied all wrong-doing and agreed to certain injunctive relief and to two areas of monetary relief: (1) a payment from Classmates, Inc. and the FTD Parties in the aggregate amount of $8 million to be distributed amongst the states in the Multistate Work Group (with approximately $5.18 million to be paid by Classmates, Inc. and approximately $2.82 million to be paid by the FTD Parties); and (2) Classmates, Inc. funding a $3 million restitution program covering eligible consumers in the states in the Multistate Work Group, with any restitution not paid to consumers being paid to such states. The Classmates, Inc. portion of the payments described above relating to the settlement agreements was paid by Classmates, Inc. in July 2015. In October 2015, the Company received insurance proceeds in the amount of $4.2 million related to the Multistate Work Group inquiry and accompanying legal fees. Of this amount, $2.8 million was allocated to United Online, Inc. and $1.4 million was allocated to FTD, which was remitted to FTD in October 2015. In November 2013, we consummated the separation of our company into two independent, publicly-traded companies: United Online, Inc., which continues to operate our current business segments, and FTD Companies, Inc., which includes the domestic and international operations of our former FTD segment (the "FTD Spin-Off Transaction"). Prior to the completion of the FTD Spin-Off Transaction, the Company and FTD Companies, Inc. entered into a Separation and Distribution Agreement (as amended, the "Separation Agreement"). The Separation Agreement addresses, among other things, the control and settlement of certain litigation matters that relate to the Company (and certain subsidiaries) and FTD Companies, Inc. (and certain subsidiaries), including the matters related to the Multistate Work Group investigation. The Separation Agreement also provides for the allocation of liabilities and expenses between the Company and FTD Companies, Inc. with respect to these matters. It also establishes procedures with respect to claims subject to indemnification, insurance claims and related matters. In August 2015, the Company consummated the sale of its Classmates domestic business unit. Pursuant to the Stock Purchase Agreement for the disposition, the Company retains some liability for certain legal matters relating to the Classmates domestic business unit, including matters related to the Multistate Work Group investigation and the Memory Lane, Inc. lawsuit. The Company cannot predict the outcome of these or any other legal actions or governmental investigations or their potential implications for its business. In addition, the Company, at times, has negotiated resolutions related to certain legal actions and governmental investigations. There are no assurances that additional legal actions or governmental investigations will not be instituted in connection with the Company's current or former business practices. The Company records a liability when it believes that it is both probable that a loss will be incurred, and the amount of loss can be reasonably estimated. The Company evaluates, at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued, and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. The Company may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if the proceedings are in early stages; (iii) if there is uncertainty as to the outcome of pending appeals, motions, or settlements; (iv) if there are significant factual issues to be determined or resolved; and (v) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. At September 30, 2015, the Company had reserves totaling $0.1 million for estimated losses related to legal matters. With respect to the legal matters described above that are ongoing, the Company has determined, based on its current knowledge, that the amount of possible loss or range of loss, including any reasonably possible losses in excess of amounts already accrued, is not reasonably estimable. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company's control. As such, even though the Company intends to vigorously defend itself with respect to its legal matters, there can be no assurance that the final outcome of these matters will not materially and adversely affect the Company's business, financial condition, results of operations, or cash flows.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2015
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS	13. DISCONTINUED OPERATIONS Sale of Classmates Domestic Business Unit In August 2015, the Company consummated the sale of its Classmates domestic business unit to Intelius Holdings, Inc. The Classmates domestic business unit was previously included as part of the Social Media segment results. Accordingly, the results of operations, financial condition and cash flows of the Classmates domestic business unit have been presented as discontinued operations for all periods presented. Revenues and income from discontinued operations related to the Classmates domestic business unit were as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues $ $ $ $ Operating expenses: Cost of revenues Sales and marketing Technology and development General and administrative ) Amortization of intangible assets Restructuring and other exit costs — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) Other income, net — ) — ) Gain on disposal of discontinued operations — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations before income taxes ) ) Provision for (benefit from) income taxes ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations, net of tax $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The major classes of assets and liabilities included in discontinued operations related to the Classmates domestic business unit were as follows (in thousands): December 31, 2014 Assets Current assets: Cash and cash equivalents $ Accounts receivable, net Inventory, net Deferred tax assets Other current assets ​ ​ ​ ​ ​ Total current assets Property and equipment, net Goodwill Intangible assets, net Other assets ​ ​ ​ ​ ​ Total assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Current liabilities: Accounts payable $ Accrued liabilities Deferred revenue ​ ​ ​ ​ ​ Total current liabilities Deferred revenue Deferred tax liabilities, net ​ ​ ​ ​ ​ Total liabilities $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company recorded $0.2 million and $0.3 million of transaction-related costs in the quarter and nine months ended September 30, 2015, respectively, in connection with the sale of the Classmates domestic business unit, which was included in discontinued operations in the unaudited condensed consolidated statements of operations. During the quarter ended September 30, 2015, the Company recorded an insurance recovery gain of $2.8 million related to the Classmates' portion of the Multistate Work Group inquiry and accompanying legal fees, which was included in discontinued operations in the consolidated statements of operations.

DESCRIPTION OF BUSINESS, BASI21

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Sep. 30, 2015
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS
Basis of Presentation	Basis of Presentation The Company's unaudited condensed consolidated financial statements for the quarters and nine months ended September 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), including those for interim financial information, and with the instructions for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (the "SEC"). Accordingly, such financial statements do not include all of the information and note disclosures required by GAAP for complete financial statements. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the results for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for any future periods. The unaudited condensed consolidated balance sheet at December 31, 2014 was derived from the Company's audited consolidated financial statements, filed on March 2, 2015, with the SEC in the Company's Annual Report on Form 10- K for the year ended December 31, 2014, but does not include all of the disclosures required by GAAP. The unaudited condensed consolidated balance sheet at December 31, 2014 was revised for the purposes of discontinued operations presentation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates and assumptions. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 10-K. The most significant areas of the unaudited condensed consolidated financial statements that require management judgment include the Company's revenue recognition, goodwill, definite-lived intangible assets and other long-lived assets, member redemption liability, income taxes, and legal contingencies. The Company believes that its existing cash and cash equivalents and cash generated from operations will be sufficient to fund its working capital requirements, capital expenditures and other obligations through at least the next 12 months.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The core principle of the guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the new definition of a discontinued operation. The amendments in this ASU are effective prospectively for disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company adopted the standard with no material impact on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The core principle of the guidance is 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 amendments in this ASU will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The amendments should be applied retrospectively. In July 2015, the FASB approved a one-year deferral of the effective date with early adoption permitted. The Company intends to adopt the standard effective January 1, 2018 and is currently assessing the impact of this update on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . The core principle of the guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU No. 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company does not expect this update to have a material impact on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . The update provides GAAP guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. The amendments in this update are effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect this update to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement . The update provides GAAP guidance on evaluating the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this update also provide a basis for evaluating whether a cloud computing arrangement includes a software license. The amendments in this update are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements . The update contains amendments that will affect a wide variety of topics in the Codification. The amendments in this update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does not expect this update to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . The amendments in this update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the impact of this update on its consolidated financial statements.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2015
SEGMENT INFORMATION
Schedule of segment revenues and segment income (loss) from operations	Segment revenues and segment income (loss) from operations (which excludes depreciation and amortization of intangible assets) were as follows (in thousands): Quarter Ended September 30, 2015 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income (loss) from operations $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended September 30, 2014 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income from operations $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2015 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income (loss) from operations $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2014 Communications Commerce & Loyalty Social Media Total Services revenues $ $ — $ $ Products revenues — Advertising and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment income (loss) from operations $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of segment revenues to consolidated revenues	A reconciliation of segment revenues to consolidated revenues was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Segment revenues: Communications $ $ $ $ Commerce & Loyalty Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment revenues Corporate revenues — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of segment operating expenses to consolidated operating expenses	A reconciliation of segment operating expenses (which excludes depreciation and amortization of intangible assets) to consolidated operating expenses was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Segment operating expenses: Communications $ $ $ $ Commerce & Loyalty Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment operating expenses Depreciation Amortization of intangible assets Unallocated corporate expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated operating expenses $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of segment income (loss) from operations to consolidated income before income taxes	A reconciliation of segment income (loss) from operations (which excludes depreciation and amortization of intangible assets) to consolidated income before income taxes was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Segment income (loss) from operations: Communications $ $ $ $ Commerce & Loyalty ) ) ) Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total segment income from operations Corporate revenues — — — Depreciation ) ) ) ) Amortization of intangible assets ) ) ) ) Unallocated corporate expenses ) ) ) ) Interest income Other income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of depreciation expense and amortization of intangible assets by segment	Depreciation expense by segment was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Communications $ $ $ $ Commerce & Loyalty Social Media Unallocated corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total depreciation expense $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of intangible assets by segment was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Commerce & Loyalty $ $ $ $ Social Media ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total amortization expense $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of geographic information for revenues	Geographic revenues are attributed to countries based on the principal location of the Company's entities from which those revenues were generated. Geographic information for revenues was as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States $ $ $ $ Germany Europe, excluding Germany ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated revenues $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of geographic information for long-lived assets	Geographic information for long-lived assets, which consist of property and equipment and other assets, was as follows (in thousands): September 30, 2015 December 31, 2014 United States $ $ Germany Other ​ ​ ​ ​ ​ ​ ​ ​ Total long-lived assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

BALANCE SHEET COMPONENTS (Table

BALANCE SHEET COMPONENTS (Tables)	9 Months Ended
	Sep. 30, 2015
BALANCE SHEET COMPONENTS
Schedule of inventories, net	Inventories, net, consisted of the following (in thousands): September 30, 2015 December 31, 2014 Work-in-process $ — $ Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of other current assets	Other current assets consisted of the following (in thousands): September 30, 2015 December 31, 2014 Insurance recovery receivable $ $ — Income taxes receivable Prepaid expenses Prepaid insurance Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): September 30, 2015 December 31, 2014 Employee compensation and related liabilities $ $ Non-income taxes payable Income taxes payable Customer deposits Reserve for legal settlements Separation payments for an executive officer — Accrued restructuring and other exit costs — Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of other liabilities	Other liabilities consisted of the following (in thousands): September 30, 2015 December 31, 2014 Income taxes payable $ $ Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of components of accumulated other comprehensive loss	The components of accumulated other comprehensive loss were as follows (in thousands): Gains (Losses) on Cash Flow Hedging Instruments, Net of Tax Gains on Other Hedging Instruments, Net of Tax Foreign Currency Translation Accumulated Other Comprehensive Loss Balance at December 31, 2014 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) ) Amounts reclassified from accumulated other comprehensive loss — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2015 $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

GOODWILL, INTANGIBLE ASSETS A24

GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS (Tables)	9 Months Ended
	Sep. 30, 2015
GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS
Schedule of changes in goodwill by reportable segment	The changes in goodwill by reportable segment were as follows (in thousands): Communications Commerce & Loyalty Social Media Total Balance at December 31, 2014: Goodwill (excluding impairment charges) $ $ $ $ Accumulated impairment charges ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at December 31, 2014 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2015: Goodwill (excluding impairment charges) Accumulated impairment charges ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at September 30, 2015 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of intangible assets, net	Intangible assets, net, consisted of the following (in thousands): September 30, 2015 Gross Value Accumulated Amortization Net Pay accounts and free accounts $ $ ) $ Customer contracts and relationships ) — Trademarks and trade names ) Software and technology ) — Rights, content and intellectual property ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2014 Gross Value Accumulated Amortization Net Pay accounts and free accounts $ $ ) $ Customer contracts and relationships ) — Trademarks and trade names ) Software and technology ) — Rights, content and intellectual property ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of estimated future intangible assets amortization expense	Estimated future intangible assets amortization expense at September 30, 2015 was as follows (in thousands): Year Ending December 31, Oct-Dec 2015 Total 2016 2017 2018 Estimated amortization of intangible assets $ $ $ $ $

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
DERIVATIVE INSTRUMENTS
Schedule of fair and notional values of outstanding derivative instruments	The fair and notional values of outstanding derivative instruments were as follows (in thousands): Fair Value of Derivative Instruments Notional Value of Derivative Instruments Balance Sheet Location September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Derivative assets Other current assets $ $ $ $ Derivative liabilities Accrued liabilities $ — $ $ — $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
FAIR VALUE MEASUREMENTS
Schedule of financial assets and derivative instruments measured at fair value on a recurring basis	The following table presents information about financial assets and derivative instruments that were required to be measured at fair value on a recurring basis (in thousands): Estimated Fair Value September 30, 2015 Description Level 1 Level 2 Total Assets: Money market funds $ $ — $ Time deposits — Derivative assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated Fair Value December 31, 2014 Description Level 1 Level 2 Total Assets: Money market funds $ $ — $ Time deposits — Derivative assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: Derivative liabilities $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Tables)	9 Months Ended
	Sep. 30, 2015
STOCK-BASED COMPENSATION PLANS
Schedule of the stock-based compensation included in condensed consolidated statements of operations	The following table summarizes the stock-based compensation that has been included in the following line items within the unaudited condensed consolidated statements of operations (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Operating expenses: Cost of revenues $ $ $ $ Sales and marketing Technology and development General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stock-based compensation $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of activity for restricted stock units	The following table summarizes activity for restricted stock units (in thousands): Nonvested at December 31, 2014 Granted Vested ) Forfeited/canceled ) ​ ​ ​ ​ ​ Nonvested at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of stock option activity	The following table summarizes activity for stock options (in thousands): Outstanding at December 31, 2014 Granted Exercised ) Forfeited/canceled ) ​ ​ ​ ​ ​ Outstanding at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

NET INCOME (LOSS) PER COMMON 28

NET INCOME (LOSS) PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
NET INCOME (LOSS) PER COMMON SHARE
Schedule of computation of basic and diluted net income (loss) per common share	The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Income (loss) from continuing operations $ $ $ $ ) Income allocated to participating securities ) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations available to common stockholders ) Income (loss) from discontinued operations, net of tax, available to common stockholders ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to common stockholders $ $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Weighted-average common shares Add: Dilutive effect of non-participating securities — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares used to calculate diluted net income (loss) per common share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per common share: Continuing operations $ $ $ $ ) Discontinued operations ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per common share $ $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per common share: Continuing operations $ $ $ $ ) Discontinued operations ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per common share $ $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

RESTRUCTURING AND OTHER EXIT 29

RESTRUCTURING AND OTHER EXIT COSTS (Tables)	9 Months Ended
	Sep. 30, 2015
RESTRUCTURING AND OTHER EXIT COSTS
Schedule of restructuring and other exit costs	The following tables summarize restructuring and other exit costs (in thousands): Accrued restructuring and other exit costs at December 31, 2014 $ Restructuring and other exit costs Cash paid for restructuring and other exit costs ) ​ ​ ​ ​ ​ Accrued restructuring and other exit costs at September 30, 2015 $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2015 Communications Commerce & Loyalty Corporate Total Restructuring and other exit costs: Employee termination costs $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total restructuring and other exit costs $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2014 Communications Commerce & Loyalty Corporate Total Restructuring and other exit costs: Employee termination costs $ $ $ $ Facility closure and relocation costs — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total restructuring and other exit costs $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2015
DISCONTINUED OPERATIONS
Schedule of revenues and income from discontinued operations	Revenues and income from discontinued operations related to the Classmates domestic business unit were as follows (in thousands): Quarter Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues $ $ $ $ Operating expenses: Cost of revenues Sales and marketing Technology and development General and administrative ) Amortization of intangible assets Restructuring and other exit costs — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) Other income, net — ) — ) Gain on disposal of discontinued operations — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations before income taxes ) ) Provision for (benefit from) income taxes ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations, net of tax $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of major classes of assets and liabilities included in discontinued operations	The major classes of assets and liabilities included in discontinued operations related to the Classmates domestic business unit were as follows (in thousands): December 31, 2014 Assets Current assets: Cash and cash equivalents $ Accounts receivable, net Inventory, net Deferred tax assets Other current assets ​ ​ ​ ​ ​ Total current assets Property and equipment, net Goodwill Intangible assets, net Other assets ​ ​ ​ ​ ​ Total assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Current liabilities: Accounts payable $ Accrued liabilities Deferred revenue ​ ​ ​ ​ ​ Total current liabilities Deferred revenue Deferred tax liabilities, net ​ ​ ​ ​ ​ Total liabilities $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DESCRIPTION OF BUSINESS, BASI31

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Details) $ in Millions	1 Months Ended	9 Months Ended
	Aug. 31, 2015USD ($)	Sep. 30, 2015segment
Description of business, basis of presentation, accounting policies, and recent accounting pronouncements
Number of operating segments		3
Number of reportable segments		3
Minimum period for which existing cash and cash equivalents and cash generated from operations will be sufficient to service debt obligations and payments		12 months
Discontinued operations, disposed of by sale | Classmates domestic business unit
Description of business, basis of presentation, accounting policies, and recent accounting pronouncements
Cash consideration from sale of business | $	$ 30

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)
SEGMENT INFORMATION
Number of operating segments | segment			3
Total segment revenues	$ 36,289	$ 39,989	$ 111,011	$ 123,906
Segment income (loss) from operations	2,695	2,173	4,043	440
Operating segments
SEGMENT INFORMATION
Services revenues	20,533	24,005	64,749	73,450
Products revenues	1,089	1,663	4,395	5,596
Advertising and other revenues	14,667	14,321	41,867	44,760
Total segment revenues	36,289	39,989	111,011	123,806
Segment income (loss) from operations	9,475	11,318	25,779	30,332
Operating segments | Communications
SEGMENT INFORMATION
Services revenues	15,201	17,097	48,592	51,874
Products revenues	959	1,397	3,734	4,838
Advertising and other revenues	5,306	6,801	16,612	20,452
Total segment revenues	21,466	25,295	68,938	77,164
Segment income (loss) from operations	7,339	7,309	18,798	21,262
Operating segments | Commerce & Loyalty
SEGMENT INFORMATION
Advertising and other revenues	9,175	7,166	24,580	23,120
Total segment revenues	9,175	7,166	24,580	23,120
Segment income (loss) from operations	(219)	263	(216)	(1,272)
Operating segments | Social Media
SEGMENT INFORMATION
Services revenues	5,332	6,908	16,157	21,576
Products revenues	130	266	661	758
Advertising and other revenues	186	354	675	1,188
Total segment revenues	5,648	7,528	17,493	23,522
Segment income (loss) from operations	$ 2,355	$ 3,746	$ 7,197	$ 10,342

SEGMENT INFORMATION (Details 2)

SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment revenues:
Revenues	$ 36,289	$ 39,989	$ 111,011	$ 123,906
Operating segments
Segment revenues:
Revenues	36,289	39,989	111,011	123,806
Operating segments | Communications
Segment revenues:
Revenues	21,466	25,295	68,938	77,164
Operating segments | Commerce & Loyalty
Segment revenues:
Revenues	9,175	7,166	24,580	23,120
Operating segments | Social Media
Segment revenues:
Revenues	$ 5,648	$ 7,528	$ 17,493	23,522
Corporate
Segment revenues:
Revenues				$ 100

SEGMENT INFORMATION (Details 3)

SEGMENT INFORMATION (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment operating expenses:
Consolidated operating expenses	$ 33,594	$ 37,816	$ 106,968	$ 123,466
Operating segments
Segment operating expenses:
Consolidated operating expenses	26,814	28,671	85,232	93,474
Operating segments | Communications
Segment operating expenses:
Consolidated operating expenses	14,127	17,986	50,140	55,902
Depreciation	633	767	2,097	2,248
Operating segments | Commerce & Loyalty
Segment operating expenses:
Consolidated operating expenses	9,394	6,903	24,796	24,392
Depreciation	376	344	1,102	1,260
Amortization of intangible assets	71	71	214	213
Operating segments | Social Media
Segment operating expenses:
Consolidated operating expenses	3,293	3,782	10,296	13,180
Depreciation	315	393	978	1,149
Amortization of intangible assets	31	34	94	104
Reconciling items
Segment operating expenses:
Depreciation	1,487	1,601	4,676	4,959
Amortization of intangible assets	102	105	308	317
Unallocated amounts
Segment operating expenses:
Depreciation	163	97	499	302
Corporate expenses	$ 5,191	$ 7,439	$ 16,752	$ 24,716

SEGMENT INFORMATION (Details 4)

SEGMENT INFORMATION (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment income (loss) from operations:
Segment income (loss) from operations	$ 2,695	$ 2,173	$ 4,043	$ 440
Income before income taxes	3,165	2,531	4,764	1,056
Operating segments
Segment income (loss) from operations:
Segment income (loss) from operations	9,475	11,318	25,779	30,332
Operating segments | Communications
Segment income (loss) from operations:
Segment income (loss) from operations	7,339	7,309	18,798	21,262
Depreciation	(633)	(767)	(2,097)	(2,248)
Operating segments | Commerce & Loyalty
Segment income (loss) from operations:
Segment income (loss) from operations	(219)	263	(216)	(1,272)
Depreciation	(376)	(344)	(1,102)	(1,260)
Amortization of intangible assets	(71)	(71)	(214)	(213)
Operating segments | Social Media
Segment income (loss) from operations:
Segment income (loss) from operations	2,355	3,746	7,197	10,342
Depreciation	(315)	(393)	(978)	(1,149)
Amortization of intangible assets	(31)	(34)	(94)	(104)
Unallocated amounts
Segment income (loss) from operations:
Depreciation	(163)	(97)	(499)	(302)
Corporate expenses	(5,191)	(7,439)	(16,752)	(24,716)
Corporate
Segment income (loss) from operations:
Corporate Revenue				100
Reconciling items
Segment income (loss) from operations:
Depreciation	(1,487)	(1,601)	(4,676)	(4,959)
Amortization of intangible assets	(102)	(105)	(308)	(317)
Interest income	150	101	331	292
Other income, net	$ 320	$ 257	$ 390	$ 324

SEGMENT INFORMATION (Details 5)

SEGMENT INFORMATION (Details 5) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenues from external customers and long-lived assets
Revenues	$ 36,289	$ 39,989	$ 111,011	$ 123,906
Total long-lived assets	14,806		14,806		$ 16,201
United States
Revenues from external customers and long-lived assets
Revenues	30,640	32,460	93,515	100,382
Total long-lived assets	11,775		11,775		13,042
Germany
Revenues from external customers and long-lived assets
Revenues	4,670	6,160	14,482	19,118
Total long-lived assets	2,922		2,922		2,928
Europe excluding Germany
Revenues from external customers and long-lived assets
Revenues	979	$ 1,369	3,014	$ 4,406
Other
Revenues from external customers and long-lived assets
Total long-lived assets	$ 109		$ 109		$ 231

BALANCE SHEET COMPONENTS (Detai

BALANCE SHEET COMPONENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventories
Work-in-process		$ 411
Finished goods	$ 7,985	5,002
Total inventories	7,985	5,413
Other Current Assets
Insurance recovery receivable	4,247
Income taxes receivable	2,945	881
Prepaid expenses	2,853	2,154
Prepaid insurance	181	1,319
Other	2,848	2,061
Total other current assets	$ 13,074	$ 6,415

BALANCE SHEET COMPONENTS (Det38

BALANCE SHEET COMPONENTS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accrued Liabilities
Employee compensation and related liabilities	$ 7,529	$ 10,927
Non-income taxes payable	505	527
Income taxes payable	418	5,204
Customer deposits	159	79
Reserve for legal settlements	110	30
Separation payments for an executive officer		859
Accrued restructuring and other exit costs		200
Other	1,150	719
Total accrued Liabilities	9,871	18,545
Other Liabilities
Income taxes payable	3,717	3,571
Other	2,300	2,195
Total	$ 6,017	$ 5,766

BALANCE SHEET COMPONENTS (Det39

BALANCE SHEET COMPONENTS (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Loss
Balance at the beginning of period			$ (3,158)
Other comprehensive income (loss) before reclassifications			(216)
Amounts reclassified from accumulated other comprehensive loss			48
Other comprehensive income (loss)	$ 115	$ (494)	(168)	$ (354)
Balance at the end of period	(3,326)		(3,326)
Gains (Losses) on Cash Flow Hedging Instruments, Net of Tax
Accumulated Other Comprehensive Loss
Balance at the beginning of period			(49)
Other comprehensive income (loss) before reclassifications			4
Amounts reclassified from accumulated other comprehensive loss			48
Other comprehensive income (loss)			52
Balance at the end of period	3		3
Gains on Other Hedging Instruments, Net of Tax
Accumulated Other Comprehensive Loss
Balance at the beginning of period			168
Balance at the end of period	168		168
Foreign Currency Translation
Accumulated Other Comprehensive Loss
Balance at the beginning of period			(3,277)
Other comprehensive income (loss) before reclassifications			(220)
Other comprehensive income (loss)			(220)
Balance at the end of period	$ (3,497)		$ (3,497)

GOODWILL, INTANGIBLE ASSETS A40

GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2015
Goodwill
Goodwill (excluding impairment charges)	$ 116,962	$ 117,243
Accumulated impairment charges	(70,100)	(70,100)
Goodwill	46,862	47,143
Foreign currency translation	281
Communications
Goodwill
Goodwill (excluding impairment charges)	13,227	13,227
Accumulated impairment charges	(5,738)	(5,738)
Goodwill	7,489	7,489
Commerce & Loyalty
Goodwill
Goodwill (excluding impairment charges)	49,122	49,122
Accumulated impairment charges	(26,606)	(26,606)
Goodwill	22,516	22,516
Social Media
Goodwill
Goodwill (excluding impairment charges)	54,613	54,894
Accumulated impairment charges	(37,756)	(37,756)
Goodwill	16,857	$ 17,138
Foreign currency translation	$ 281

GOODWILL, INTANGIBLE ASSETS A41

GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Intangible Assets, Net
Gross Value	$ 83,669	$ 83,703
Accumulated Amortization	(83,241)	(82,969)
Net	428	734
Pay accounts and free accounts
Intangible Assets, Net
Gross Value	56,455	56,473
Accumulated Amortization	(56,170)	(56,096)
Net	285	377
Customer contracts and relationships
Intangible Assets, Net
Gross Value	7,900	7,900
Accumulated Amortization	(7,900)	(7,900)
Trademarks and trade names
Intangible Assets, Net
Gross Value	11,548	11,548
Accumulated Amortization	(11,405)	(11,191)
Net	143	357
Software and technology
Intangible Assets, Net
Gross Value	5,072	5,079
Accumulated Amortization	(5,072)	(5,079)
Rights, content and intellectual property
Intangible Assets, Net
Gross Value	2,694	2,703
Accumulated Amortization	$ (2,694)	$ (2,703)

GOODWILL, INTANGIBLE ASSETS A42

GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS
Amortization of intangible assets	$ 100	$ 100	$ 300	$ 300
Estimated amortization of intangible assets
Total	428		428
Oct-Dec 2015	101		101
2,016	183		183
2,017	83		83
2,018	$ 61		$ 61

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Other current assets
Fair and notional values of outstanding derivative instruments, Balance Sheet Location
Fair Value of Derivative Instruments, Assets	$ 61	$ 149
Notional Value of Derivative Instruments, Assets	$ 341	1,594
Accrued liabilities
Fair and notional values of outstanding derivative instruments, Balance Sheet Location
Fair Value of Derivative Instruments, Liabilities		18
Notional Value of Derivative Instruments, Liabilities		$ 867

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Money market funds	$ 65,772	$ 42,741
Time deposits	6,706	8,041
Derivative assets	61	149
Total	72,539	50,931
Liabilities:
Derivative liabilities		18
Total		18
Level 1 Fair Value
Assets:
Money market funds	65,772	42,741
Total	65,772	42,741
Level 2 Fair Value
Assets:
Time deposits	6,706	8,041
Derivative assets	61	149
Total	$ 6,767	8,190
Liabilities:
Derivative liabilities		18
Total		$ 18

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) shares in Millions, $ in Millions	9 Months Ended		161 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Common Stock Repurchases
Amount of stock repurchased under stock repurchase program	$ 0		$ 150.2
Remaining authorization under the stock repurchase program	80
Remittances for withholding tax	$ 1.4	$ 2.4
Common stock shares withheld to pay employee tax withholding	0.1	0.2

STOCK-BASED COMPENSATION PLAN46

STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock-Based Compensation
Total stock-based compensation	$ 1,513	$ 1,837	$ 4,595	$ 6,048
Cost of revenues
Stock-Based Compensation
Total stock-based compensation	44	69	155	153
Sales and marketing
Stock-Based Compensation
Total stock-based compensation	125	121	365	387
Technology and development
Stock-Based Compensation
Total stock-based compensation	159	215	592	638
General and administrative
Stock-Based Compensation
Total stock-based compensation	$ 1,185	$ 1,432	$ 3,483	$ 4,870

STOCK-BASED COMPENSATION PLAN47

STOCK-BASED COMPENSATION PLANS (Details 2) - Restricted Stock Units shares in Thousands	9 Months Ended
	Sep. 30, 2015shares
Restricted Stock Units
Nonvested at the beginning of the period (in shares)	805
Granted (in shares)	271
Vested (in shares)	(357)
Forfeited/canceled (in shares)	(174)
Nonvested at the end of the period (in shares)	545

STOCK-BASED COMPENSATION PLAN48

STOCK-BASED COMPENSATION PLANS (Details 3) - Stock Options shares in Thousands	9 Months Ended
	Sep. 30, 2015shares
Options Outstanding
Outstanding at the beginning of the period (in shares)	947
Granted (in shares)	545
Exercised (in shares)	(143)
Forfeited/canceled (in shares)	(338)
Outstanding at the end of the period (in shares)	1,011

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2015
Income taxes
U.S. federal taxes at statutory tax rate (as a percent)	34.00%
Non-cash tax expense relating to tax amortization of certain goodwill assets	$ 0.3		$ 1
IRS
Income taxes
Income taxes paid in connection with audit settlement		$ 6.4

NET INCOME (LOSS) PER COMMON 50

NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Income (loss) from continuing operations	$ 1,881	$ 989	$ 2,325	$ (4,290)
Income allocated to participating securities	(962)	(12)	(1,139)
Income (Loss) from continuing operations available to common stockholders	919	977	1,186	(4,290)
Income (loss) from discontinued operations, net of tax, available to common stockholders	24,070	(783)	25,124	(8,141)
Net income (loss) attributable to common stockholders	$ 24,989	$ 194	$ 26,310	$ (12,431)
Denominator:
Weighted-average common shares	14,770	14,178	14,622	14,069
Add: Dilutive effect of non-participating securities (in shares)	19	2	71
Shares used to calculate diluted net income (loss) per common share	14,789	14,180	14,693	14,069
Basic net income (loss) per common share:
Continuing operations (in dollars per share)	$ 0.06	$ 0.07	$ 0.08	$ (0.30)
Discontinued operations (in dollars per share)	1.63	(0.06)	1.72	(0.58)
Basic net income (loss) per common share (in dollars per share)	1.69	0.01	1.80	(0.88)
Diluted net income (loss) per common share:
Continuing operations (in dollars per share)	0.06	0.07	0.08	(0.30)
Discontinued operations (in dollars per share)	1.63	(0.06)	1.71	(0.58)
Diluted net income (loss) per common share (in dollars per share)	$ 1.69	$ 0.01	$ 1.79	$ (0.88)
Weighted-average antidilutive shares	900	1,200	1,100	1,300

RESTRUCTURING AND OTHER EXIT 51

RESTRUCTURING AND OTHER EXIT COSTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Changes in restructuring and other exit costs
Accrued restructuring and other exit costs at the beginning of the period			$ 200
Restructuring and other exit costs	$ (20)	$ 521	944	$ 2,744
Cash paid for restructuring and other exit costs			(1,144)
Operating segments | Communications
Changes in restructuring and other exit costs
Restructuring and other exit costs			913	271
Operating segments | Commerce & Loyalty
Changes in restructuring and other exit costs
Restructuring and other exit costs			(2)	1,451
Corporate
Changes in restructuring and other exit costs
Restructuring and other exit costs			33	1,022
Employee termination costs
Changes in restructuring and other exit costs
Restructuring and other exit costs			944	2,377
Employee termination costs | Operating segments | Communications
Changes in restructuring and other exit costs
Restructuring and other exit costs			913	262
Employee termination costs | Operating segments | Commerce & Loyalty
Changes in restructuring and other exit costs
Restructuring and other exit costs			(2)	1,093
Employee termination costs | Corporate
Changes in restructuring and other exit costs
Restructuring and other exit costs			$ 33	1,022
Facility closure and relocation costs
Changes in restructuring and other exit costs
Restructuring and other exit costs				367
Facility closure and relocation costs | Operating segments | Communications
Changes in restructuring and other exit costs
Restructuring and other exit costs				9
Facility closure and relocation costs | Operating segments | Commerce & Loyalty
Changes in restructuring and other exit costs
Restructuring and other exit costs				$ 358

CONTINGENCIES-LEGAL MATTERS (De

CONTINGENCIES-LEGAL MATTERS (Details) $ in Thousands	1 Months Ended
	Oct. 31, 2015USD ($)	May. 31, 2015USD ($)item	Sep. 30, 2015USD ($)	Nov. 30, 2013item
Legal Matters
Number of independent, publicly-traded companies | item				2
Reserve for legal and dispute settlements			$ 100
Multistate Work Group Settlement
Legal Matters
Proceeds from insurance settlements	$ 4,200
Multistate Work Group Settlement | United Online Inc.
Legal Matters
Proceeds from insurance settlements	2,800
Multistate Work Group Settlement | FTD.COM Inc
Legal Matters
Payments of settlement amount		$ 2,820
Proceeds from insurance settlements	$ 1,400
Multistate Work Group Settlement | Classmates and FTD.COM
Legal Matters
Number of areas of monetary relief | item		2
Litigation settlement amount		$ 8,000
Multistate Work Group Settlement | Classmates domestic business unit
Legal Matters
Payments of settlement amount		5,180
Restitution amount		$ 3,000

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Current assets:
Total current assets					$ 5,672
Current liabilities:
Total current liabilities					31,545
Classmates domestic business unit | Discontinued operations, disposed of by sale
Revenues and income from discontinued operations
Revenues	$ 5,755	$ 13,094	$ 31,523	$ 39,605
Operating expenses:
Cost of revenues	963	2,347	5,488	7,582
Sales and marketing	2,162	4,669	12,696	15,686
Technology and development	754	2,563	5,678	8,113
General and administrative	(1,924)	2,886	1,514	11,934
Amortization of intangible assets	186	1,455	987	4,006
Restructuring and other exit costs		11	3	375
Total operating expenses	2,141	13,931	26,366	47,696
Operating income (loss)	3,614	(837)	5,157	(8,091)
Other income, net		(88)		(88)
Gain on disposal of discontinued operations	20,787		20,787
Income (loss) from discontinued operations before income taxes	24,401	(925)	25,944	(8,179)
Provision for (benefit from) income taxes	331	(142)	820	(38)
Income (loss) from discontinued operations, net of tax	24,070	$ (783)	25,124	$ (8,141)
Current assets:
Cash and cash equivalents					161
Accounts receivable, net					397
Inventory, net					3
Deferred tax assets					3,746
Other current assets					1,365
Total current assets					5,672
Property and equipment, net					7,740
Goodwill					16,152
Intangible assets, net					8,714
Other assets					205
Total assets					38,483
Current liabilities:
Accounts payable					2,591
Accrued liabilities					12,284
Deferred revenue					16,670
Total current liabilities					31,545
Deferred revenue					1,897
Deferred tax liabilities, net					3,256
Total liabilities					$ 36,698
Transaction costs related to disposal of discontinued operations	200		$ 300
Classmates domestic business unit | Discontinued operations, disposed of by sale | Multistate Work Group Settlement
Current liabilities:
Gain related to insurance recovery	$ 2,800