Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 10, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'AMBASSADORS GROUP INC | ' |
Entity Central Index Key | '0001162315 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 17,043,625 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,550 | $9,473 |
Available-for-sale securities and other | 43,586 | 36,174 |
Prepaid program costs and expenses | 2,597 | 7,069 |
Accounts receivable | 1,071 | 1,792 |
Deferred tax assets | 0 | 1,295 |
Assets held for sale | 8,400 | 0 |
Total current assets | 59,204 | 55,803 |
Property and equipment, net | 3,821 | 18,452 |
Available-for-sale securities | 724 | 719 |
Deferred tax assets | 125 | 0 |
Intangibles | 0 | 3,522 |
Goodwill | 70 | 9,781 |
Other long-term assets | 483 | 82 |
Total assets | 64,427 | 88,359 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 6,646 | 3,587 |
Participants' deposits | 9,303 | 26,362 |
Foreign currency exchange contracts | 625 | 244 |
Deferred tax liabilities | 149 | 0 |
Other liabilities | 0 | 119 |
Total current liabilities | 16,723 | 30,312 |
Participants' deposits | 190 | 0 |
Foreign currency exchange contracts | 0 | 52 |
Deferred tax liabilities | 0 | 2,087 |
Total liabilities | 16,913 | 32,451 |
Commitments and Contingencies (Note 15) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 50,000,000 shares authorized; 17,044,905 and 17,040,724 shares issued and outstanding, respectively | 170 | 170 |
Additional paid-in capital | 1,478 | 411 |
Retained earnings | 46,478 | 55,876 |
Accumulated other comprehensive gain (loss) | -612 | -549 |
Stockholders' equity | 47,514 | 55,908 |
Total liabilities and stockholders' equity | $64,427 | $88,359 |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 17,044,905 | 17,040,724 |
Common stock, shares outstanding (in shares) | 17,044,905 | 17,040,724 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | ' | ' | ' | ' |
Net revenue, non-directly delivered programs | $10,818 | $15,071 | $29,027 | $36,254 |
Gross revenue, directly delivered programs | 5,896 | 6,296 | 9,734 | 10,460 |
Total revenue | 16,714 | 21,367 | 38,761 | 46,714 |
Cost of sales, directly delivered programs | 3,372 | 4,128 | 5,816 | 7,053 |
Cost of sales, program merchandise markdown | 0 | 0 | 554 | 0 |
Gross margin | 13,342 | 17,239 | 32,391 | 39,661 |
Operating expenses: | ' | ' | ' | ' |
Selling and marketing | 8,369 | 9,224 | 20,868 | 24,275 |
General and administrative | 2,418 | 2,676 | 8,647 | 11,007 |
Restructuring costs | 217 | 1,756 | 1,756 | 1,756 |
Asset impairments | 350 | 6,461 | 2,350 | 6,461 |
Total operating expenses | 11,354 | 20,117 | 33,621 | 43,499 |
Operating income (loss) | 1,988 | -2,878 | -1,230 | -3,838 |
Other income: | ' | ' | ' | ' |
Interest and dividend income | 84 | 70 | 356 | 357 |
Foreign currency and other income | -2 | 1 | 6 | 22 |
Total other income | 82 | 71 | 362 | 379 |
Income (loss) before income tax benefit (provision) from continuing operations | 2,070 | -2,807 | -868 | -3,459 |
Income tax benefit (provision) | -158 | 1,004 | -416 | 1,269 |
Net income (loss) from continuing operations | 1,912 | -1,803 | -1,284 | -2,190 |
Discontinued operations: | ' | ' | ' | ' |
Income (loss) from discontinued operations | 196 | 250 | -9,298 | 959 |
Income tax benefit (provision) | 230 | -61 | 1,184 | -350 |
Net income (loss) from discontinued operations | 426 | 189 | -8,114 | 609 |
Net Income (Loss) | $2,338 | ($1,614) | ($9,398) | ($1,581) |
Weighted-average common shares outstanding - basic (in shares) | 17,041 | 16,984 | 16,827 | 16,982 |
Weighted-average common shares outstanding - diluted (in shares) | 17,046 | 16,984 | 16,827 | 16,982 |
Net income (loss) from continuing operations per share - basic (in dollars per share) | $0.11 | ($0.11) | ($0.08) | ($0.13) |
Net income (loss) from continuing operations per share - diluted (in dollars per share) | $0.11 | ($0.11) | ($0.08) | ($0.13) |
Net income (loss) from discontinued operations per share - basic (in dollars per share) | $0.03 | $0.01 | ($0.48) | $0.04 |
Net income (loss) from discontinued operations per share - diluted (in dollars per share) | $0.03 | $0.01 | ($0.48) | $0.04 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,338 | ($1,614) | ($9,398) | ($1,581) |
Unrealized gain (loss) on foreign currency exchange contracts, net of income tax benefit (provision) of $0, ($112), $0 and $324 | -685 | 209 | -329 | -603 |
Unrealized gain (loss) on available-for-sale securities, net of income tax benefit (provision) of $0, ($12), $0 and $89 | -2 | 21 | 265 | -165 |
Comprehensive income (loss) | $1,651 | ($1,384) | ($9,462) | ($2,349) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) [Abstract] | ' | ' | ' | ' |
Unrealized gain (loss) on foreign currency exchange contracts, income tax benefit (provision) | $0 | ($112) | $0 | $324 |
Unrealized gain (loss) on available-for-sale securities, income tax benefit (provision) | $0 | ($12) | $0 | $89 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($9,398) | ($1,581) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 4,497 | 4,088 |
Stock-based compensation | 1,305 | 2,161 |
Deferred income tax benefit | -877 | -2,373 |
Impairment and loss on sale of discontinued operations | 9,676 | 0 |
Loss on disposition and impairment of property and equipment | 2,364 | 6,461 |
Program merchandise writedown | 554 | 0 |
Excess tax shortfall from stock-based compensation | 109 | 2,103 |
Change in assets and liabilities: | ' | ' |
Accounts receivable and other assets | 663 | -169 |
Prepaid program costs and expenses | 3,890 | 9,652 |
Accounts payable, accrued expenses, and other current liabilities | 2,374 | 4,802 |
Participants' deposits | -16,869 | -15,888 |
Net cash provided by (used in) operating activities | -1,712 | 9,256 |
Cash flows from investing activities: | ' | ' |
Purchase of available-for-sale securities | -29,733 | -27,297 |
Proceeds from sale of available-for-sale securities | 22,582 | 22,931 |
Purchase of property and equipment | -1,202 | -2,413 |
Proceeds from sale of property and equipment | 28 | 0 |
Purchase of intangibles | -189 | -251 |
Proceeds from sale of BookRags, Inc. | 4,600 | 0 |
Net cash used in investing activities | -3,914 | -7,030 |
Cash flows from financing activities: | ' | ' |
Repurchase of Common Stock | -188 | -486 |
Dividend payment to shareholders | 0 | -1,017 |
Proceeds from exercise of stock options | 0 | 5 |
Excess tax shortfall from stock-based compensation | -109 | -2,103 |
Net cash used in financing activities | -297 | -3,601 |
Net decrease in cash and cash equivalents | -5,923 | -1,375 |
Cash and cash equivalents, beginning of period | 9,473 | 6,150 |
Cash and cash equivalents, end of period | $3,550 | $4,775 |
The_Company
The Company | 9 Months Ended |
Sep. 30, 2014 | |
The Company [Abstract] | ' |
The Company | ' |
1. The Company | |
Ambassadors Group, Inc. (the “Company”, “we”, “us” or “our”) is an educational company primarily engaged in organizing and promoting differentiated worldwide travel programs for students and professionals. Up through September 2014, we also operated an education oriented research website, BookRags.com, which provided study guides, lesson plans and other educational resources to students and teachers. These consolidated financial statements include the accounts of Ambassadors Group, Inc., and our wholly owned subsidiaries, Ambassador Programs, Inc., World Adventures Unlimited, Inc., Ambassadors Unlimited, LLC, AGI Hong Kong Limited, Beijing People to People Education Consultation Co., Ltd, Marketing Production Systems LLC, and BookRags, Inc. (“BookRags”). All significant intercompany accounts and transactions, which are of a normal recurring nature, are eliminated in consolidation. | |
During the third quarter of 2014, the Company announced it had consummated a sale of its wholly-owned subsidiary BookRags. All activities related to BookRags have been reflected as discontinued operations for all periods presented. For additional information, see Note 5 of Notes to Consolidated Financial Statements. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
2. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being materially misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2014 are not indicative of the results that may be expected for the year ending December 31, 2014. | |
These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
3. Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). This ASU relates to discontinued operations reporting for disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on the entity’s operations and financial results. The standard expands disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2014 and will be reflected in periods following the fourth quarter of 2014. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. | |
The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | |
In June, 2014, the FASB issued Accounting Standards Update 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. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition on Performance Stock Unit awards. In some cases, the terms of an award may provide that the performance target could be achieved after an employee completes the requisite service period. That is, the employee would be entitled to benefit from the award regardless of whether the employee is rendering service on the date the performance target is achieved. Current performance stock unit awards are contingent upon employment status as well as internal metrics. As such, this ASU is not expected to have an impact on our financial statements or disclosures. |
Restructuring_Costs
Restructuring Costs | 9 Months Ended | ||
Sep. 30, 2014 | |||
Restructuring Costs [Abstract] | ' | ||
Restructuring Costs | ' | ||
4. Restructuring Costs | |||
During the third quarter of 2013, we initiated a corporate restructuring plan aimed at streamlining our cost structure and focusing our business on our core Student Ambassador programs in order to promote the long-term health of the organization. This plan included the restructuring of operations and programs associated with Discovery Student Adventures and terminating the operations associated with our Beijing office. | |||
During the second quarter of 2014, we took additional measures to continue to streamline the organization and to further our businesses focus on our core Student Ambassador programs. We completed a workforce reduction during the second quarter of 2014 that resulted in restructuring expense of $1.6 million. Under the terms of executive separation agreements, we will continue to pay each terminated executive bi-weekly during the executive’s severance period, with the future payments having been accrued and reflected in the below table as outstanding liabilities at September 30, 2014. | |||
Other costs recorded as restructuring during the first nine months of 2014 included accelerated depreciation of assets scheduled for replacement within the next year as well as continued transition costs from the termination of operations of our Beijing office. | |||
We anticipate all restructuring expenses to be recognized within twelve months of the initial implementation of the restructuring plan. | |||
The following table summarizes costs incurred to date from continuing operations as part of the restructuring plan, which began during the third quarter of 2013 and the balance of the restructuring cost liability as of September 30, 2014 (in thousands). | |||
Restructuring Costs | |||
Ambassador Programs and Other | |||
Contract termination fees | $ | 1,550 | |
Separation payments | 949 | ||
Equity compensation expenses | 377 | ||
Other transition costs | 1,166 | ||
Accumulated expense at September 30, 2014 | 4,042 | ||
less: cash payments | 3,302 | ||
less: non-cash expenses | 377 | ||
Total restructuring liabilities at September 30, 2014 | $ | 363 |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Discontinued Operations [Abstract] | ' | |||||||||||||||
Discontinued Operations | ' | |||||||||||||||
5. Discontinued Operations | ||||||||||||||||
In furtherance to the Company’s focus on its core Student Ambassadors programs, in September 2014, the Company announced it had consummated a sale of BookRags for $5.0 million, subject to a $0.4 million escrow arrangement. All interests and future cash flows from BookRags were released upon sale. All activities related to BookRags, Inc. have been reflected as discontinued operations on our consolidated financial statements for all periods presented. | ||||||||||||||||
Included in the consolidated balance sheet at December 31, 2013, were $15.5 million of assets and $1.5 million of liabilities associated with the discontinued operations of BookRags. The following table summarizes the assets and liabilities of discontinued operations including in the consolidated balance sheet as of December 31, 2013. There were no assets and liabilities of discontinued operations as of September 30, 2014. | ||||||||||||||||
Balance Sheet (Audited) | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 765 | ||||||||||||||
Accounts receivable | 731 | |||||||||||||||
Other current assets | 62 | |||||||||||||||
Total current assets | 1,558 | |||||||||||||||
Property and equipment, net | 710 | |||||||||||||||
Intangibles | 3,522 | |||||||||||||||
Goodwill | 9,711 | |||||||||||||||
Total assets | $ | 15,501 | ||||||||||||||
Liabilities | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable and accrued expenses | $ | 283 | ||||||||||||||
Other current liabilties | 118 | |||||||||||||||
Total current liabilites | 401 | |||||||||||||||
Other long-term liabilties | 1,056 | |||||||||||||||
Total liabilties | $ | 1,457 | ||||||||||||||
The following table summarizes the results of discontinued operations for the periods indicated (in thousands): | ||||||||||||||||
Three months ended September 30, 2014 | Three months ended September 30, 2013 | Nine months ended September 30, 2014 | Nine months ended September 30, 2013 | |||||||||||||
Total revenue | $ | 545 | $ | 910 | $ | 2,608 | $ | 2,938 | ||||||||
Gross margin | $ | 472 | $ | 785 | $ | 2,285 | $ | 2,558 | ||||||||
Selling & marketing expenses | $ | (53 | ) | $ | (364 | ) | $ | (706 | ) | $ | (1,155 | ) | ||||
General & administrative expenses | $ | (258 | ) | $ | (171 | ) | $ | (679 | ) | $ | (444 | ) | ||||
Restructuring costs | $ | - | $ | - | $ | (522 | ) | $ | - | |||||||
Impairment and gain (loss) on sale of discontinued operations | $ | 35 | $ | - | $ | (9,676 | ) | $ | - | |||||||
Operating income (loss) from discontinued operations | $ | 196 | $ | 250 | $ | (9,298 | ) | $ | 959 | |||||||
Income tax benefit (provision) on discontinued operations | $ | 230 | $ | (61 | ) | $ | 1,184 | $ | (350 | ) | ||||||
Net income (loss) from discontinued operations | $ | 426 | $ | 189 | $ | (8,114 | ) | $ | 609 | |||||||
During the second quarter of 2014 and due to business changes as well as the narrow margin results of its most recent annual impairment test in December 2013, the Company re-evaluated the carrying value of BookRags and recorded a goodwill impairment charge of $9.7 million, as the implied fair value of the goodwill was determined to be lower than its carrying value. Using the income and market approaches, the significant assumptions used to determine fair value included projected operating revenues and expenses, growth rates, terminal value, discount rates, future cash flows and capital expenditures. This impairment charge has been recorded within discontinued operations and is reflected in the table above for the nine months ended, September 30, 2014. |
Assets_Held_For_Sale
Assets Held For Sale | 9 Months Ended |
Sep. 30, 2014 | |
Assets held for sale [Abstract] | ' |
Assets held for sale | ' |
6. Assets Held For Sale | |
In April 2012, the Company listed for sale its corporate headquarters building located in Spokane, Washington. During the third quarter of 2014, a purchase and sale agreement was executed for a sale of the building for $8.8 million. During the second quarter of 2014, the Company recorded an asset impairment charge of $2.0 million to lower the building’s carrying value to the anticipated sales price. During the third quarter of 2014, the Company recorded approximately $0.4 million in additional expense related to expected closing costs and broker fees. These charges are classified as asset impairment costs on the consolidated statements of operations. | |
During the third quarter of 2014, the corporate headquarters building was recorded within current assets as an asset held for sale for $8.8 million less anticipated transaction closing costs of approximately $0.4 million. The Company anticipates this purchase and sale agreement to be finalized during the fourth quarter of 2014. | |
Simultaneous with the final purchase and sales agreement, the Company will enter into a leasing agreement to remain in our current location until a new leased location in the Spokane area is found. It is expected that a new location will be selected within a year of sale. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ' | |||||||||||||||||||
Investments and Fair Value Measurements | ' | |||||||||||||||||||
7. Investments and Fair Value Measurements | ||||||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market, and we consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. | ||||||||||||||||||||
Our financial instruments are measured and recorded at fair value. Our non-financial assets, including property and equipment, intangible assets and goodwill, are measured at fair value upon acquisition, reviewed at least annually for impairment, and are fully assessed if there is an indicator of impairment. An adjustment would be made to the fair value of non-financial assets if an impairment charge is recognized. | ||||||||||||||||||||
Fair value is determined for assets and liabilities using a three-tiered hierarchy, based upon significant levels of inputs as follows: | ||||||||||||||||||||
- | Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||
- | Level 2 – Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||
- | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |||||||||||||||||||
The following tables summarize the composition of our investments at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||||
Classification on Balance Sheet | ||||||||||||||||||||
30-Sep-14 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term | Long-term available for-sale securities | ||||||||||||||
available-for-sale securities | ||||||||||||||||||||
Auction rate securities (“ARS”), greater than one year | $ | 1,000 | $ | (276 | ) | $ | 724 | $ | - | $ | - | $ | 724 | |||||||
Money market funds, ninety days or less | 17 | - | 17 | 17 | - | - | ||||||||||||||
Municipal securities1 | ||||||||||||||||||||
Short term municipal securities funds2 | 42,803 | 17 | 42,820 | - | 42,820 | - | ||||||||||||||
One year or less | - | - | - | - | - | - | ||||||||||||||
After one year through three years | - | - | - | - | - | - | ||||||||||||||
Greater than three years | 782 | (16 | ) | 766 | - | 766 | - | |||||||||||||
Total | $ | 44,602 | $ | (275 | ) | $ | 44,327 | $ | 17 | $ | 43,586 | $ | 724 | |||||||
Classification on Balance Sheet | ||||||||||||||||||||
31-Dec-13 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term available-for-sale securities | Long-term available-for-sale securities | ||||||||||||||
ARS, greater than one year | $ | 1,002 | $ | (283 | ) | $ | 719 | $ | - | $ | - | $ | 719 | |||||||
Money market funds, ninety days or less | 488 | - | 488 | 488 | - | - | ||||||||||||||
Municipal securities1 | ||||||||||||||||||||
Short term municipal securities funds2 | 27,493 | (143 | ) | 27,350 | - | 27,350 | - | |||||||||||||
One year or less | 952 | 3 | 955 | - | 955 | - | ||||||||||||||
After one year through three years | 3,132 | 20 | 3,152 | - | 3,152 | - | ||||||||||||||
Greater than three years | 4,854 | (137 | ) | 4,717 | - | 4,717 | - | |||||||||||||
Total | $ | 37,921 | $ | (540 | ) | $ | 37,381 | $ | 488 | $ | 36,174 | $ | 719 | |||||||
1Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
2Amounts include short-term municipal security funds that do not have a set maturity date. | ||||||||||||||||||||
The following tables detail the fair value measurements of assets and liabilities within the three levels of the fair value hierarchy at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
30-Sep-14 | Fair Market Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | ||||||||||||||||||||
ARS | $ | 724 | $ | - | $ | - | $ | 724 | ||||||||||||
Money market funds | 17 | 17 | - | - | ||||||||||||||||
Municipal securities1 | 43,585 | 42,819 | 766 | - | ||||||||||||||||
Foreign currency exchange contracts | - | - | - | - | ||||||||||||||||
Total financial assets | $ | 44,326 | $ | 42,836 | $ | 766 | $ | 724 | ||||||||||||
Financial liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts | 625 | - | 625 | - | ||||||||||||||||
Total financial liabilities | $ | 625 | $ | - | $ | 625 | $ | - | ||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
31-Dec-13 | Fair Market Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | ||||||||||||||||||||
ARS | $ | 719 | $ | - | $ | - | $ | 719 | ||||||||||||
Money market funds | 488 | 488 | - | - | ||||||||||||||||
Municipal securities1 | 36,174 | 27,350 | 8,824 | - | ||||||||||||||||
Foreign currency exchange contracts | 253 | - | 253 | - | ||||||||||||||||
Total financial assets | $ | 37,634 | $ | 27,838 | $ | 9,077 | $ | 719 | ||||||||||||
Financial liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts | 549 | - | 549 | - | ||||||||||||||||
Total financial liabilities | $ | 549 | $ | - | $ | 549 | $ | - | ||||||||||||
1 At September 30, 2014, municipal securities were split 98/1/1 percent between holdings in short-term municipal security funds, municipal revenue bonds, and municipal general obligation bonds, respectively. At December 31, 2013, municipal securities were split 76/13/11 percent split between holdings in short-term municipal security funds, municipal revenue bonds and municipal general obligation bonds, respectively. The underlying credit rating of the municipal securities at September 30, 2014 and December 31, 2013 were A+, A1 or better as defined by S&P 500 and Moody’s, respectively. | ||||||||||||||||||||
Money market funds and municipal securities are classified as Level 1 assets because market prices are readily available for these investments. Level 2 financial assets and liabilities represent the fair value of our municipal bonds and foreign currency exchange contracts that were valued using pricing models that take into account the contract terms, as well as multiple inputs where applicable, such as equity prices, interest rates, volatility and currency rates. Level 3 financial assets represent the fair value of our one auction-rate security (“ARS”), which was valued using a pricing model that takes into account the average life of the underlying collateral, the rate of return, and the spread used for similar issuances. | ||||||||||||||||||||
The following table details the fair value measurements of assets measured on a non-recurring basis within the three levels of the fair value hierarchy at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Total Loss | |||||||||||||||||||
30-Sep-14 | Fair Market Value | Qouted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Three months ended September 30, 2014 | |||||||||||||||
Non-financal assets: | ||||||||||||||||||||
Property and equipment, net | $ | 8,750 | $ | - | $ | - | $ | 8,750 | $ | 2,000 | ||||||||||
Our corporate headquarters building is recorded as an asset held for sale on the balance sheet at $8.4 million, which is the expected sales price less expected costs to sell of $0.4 million. | ||||||||||||||||||||
The following table details the fair value measurements of assets measured on a non-recurring basis within the three levels of the fair value hierarchy at December 31, 2013 (in thousands): | ||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Total Loss | |||||||||||||||||||
31-Dec-13 | Fair Market Value | Qouted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Year ended December 31, 2013 | |||||||||||||||
Non-financal assets: | ||||||||||||||||||||
Property and equipment, net | $ | 11,000 | $ | - | $ | - | $ | 11,000 | $ | 4,544 | ||||||||||
Fair value measurements on a recurring basis using Level 3 inputs consist of one available-for-sale ARS. The following table presents a reconciliation for the three and nine months ended September 30, 2014 and 2013, of available-for-sale ARS measured at fair value on a recurring basis using Level 3 inputs (in thousands): | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Beginning balance | $ | 729 | $ | 716 | $ | 719 | $ | 723 | ||||||||||||
Total realized / unrealized gains (losses): | ||||||||||||||||||||
Included in OCI | (5 | ) | 1 | 5 | (6 | ) | ||||||||||||||
Ending balance | $ | 724 | $ | 717 | $ | 724 | $ | 717 | ||||||||||||
During the nine months ended September 30, 2014, we experienced one failed ARS auction, representing principal of $1.0 million. This ARS continues to be classified as a long-term asset due to the high probability that the ARS may fail in future auctions. The next scheduled auction for this ARS is March 6, 2015. We have determined that there is no other-than-temporary impairment on this security, since we do not intend and are not required to sell this security before we have recovered the amortized cost basis, there has been no further deterioration of the credit rating of this investment, interest payments at coupon rate continue to be received, and we expect to recover the amortized cost basis of this security. We will continue to reassess liquidity in future reporting periods based on several factors, including the success or failure of future auctions, possible failure of the investment to be redeemed, deterioration of the credit rating of the investment, market risk, and other factors. | ||||||||||||||||||||
In determining the fair value of bond and ARS investments we consider the individual ratings of each holding. With regard to bonds, we consider the following: the underlying rating of the issuer irrespective of the insurance; the performance of the issuer; the term of the bond; and the quality of bond insurance provided by the rating of the bond insurer. With regard to valuation of our ARS, which is comprised of student loans, we consider the underlying credit quality of comparable student loan portfolios and the average life of the underlying student loan assets and apply a discount related to the illiquidity of our ARS due to past failed auctions. Based on these inputs, we have applied a discount of 321.0-basis points to the London interbank offered rate resulting in a valuation of $0.7 million from a cost basis of $1.0 million as of September 30, 2014. At the reporting dates and in the future, we recognize that this investment is subject to general credit, liquidity, market and interest rate risks. The fair value of this investment accordingly will continue to change and we will continue to evaluate its carrying value. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||
Derivative Financial Instruments | ' | ||||||||||
8. Derivative Financial Instruments | |||||||||||
The majority of our travel programs take place outside of the United States, and most foreign suppliers require payment in currency other than the U.S. dollar. Accordingly, we are exposed to foreign currency risk relative to changes in foreign currency exchange rates between those currencies and the U.S. dollar for our non-directly delivered programs. We use forward contracts that allow us to acquire foreign currency at a fixed price for a specified point in time to provide a hedge against foreign currency risk. All of our derivatives are cash flow hedges and at September 30, 2014, all contracts qualified for cash flow hedge accounting. | |||||||||||
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income or loss and reclassified into earnings in the same period during which the hedged transaction is recognized in earnings; this is primarily during the second and third quarters of the year when our student travel programs occur. Gains or losses representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||||||||||
At September 30, 2014, the following forward contracts were outstanding (in thousands): | |||||||||||
Notional Amount | Matures | ||||||||||
Forward contracts: | |||||||||||
Australian dollar | 3,250 | January 2015 - July 2015 | |||||||||
Euro | 9,500 | January 2015 - July 2015 | |||||||||
British pound | 1,900 | January 2015 - July 2015 | |||||||||
Canadian dollar | 400 | March 2015 - May 2015 | |||||||||
New Zealand dollar | 400 | March 2015 - July 2015 | |||||||||
Japenese Yen | 25,000 | May-15 | |||||||||
The fair values of our forward contracts were as follows (in thousands): | |||||||||||
30-Sep-14 | |||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||
Assets | Liabilities | Liabilities | |||||||||
Forward contracts | $ | - | $ | 625 | $ | 625 | |||||
31-Dec-13 | |||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||
Assets | Liabilities | Liabilities | |||||||||
Forward contracts | $ | 253 | $ | 549 | $ | 296 | |||||
The net asset and liability derivatives at September 30, 2014 and December 31, 2013 are reported in the consolidated balance sheet as current and long-term foreign currency exchange contracts. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
9. Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Unrealized gains or losses related to derivative securities are recorded in accumulated other comprehensive income (“AOCI”). The change in unrealized gains or losses related to derivative securities are recorded in other comprehensive income net of income taxes in the period the change occurred. When derivative securities designated as cash flow hedges are used to pay vendors, the effective portion of the hedge is reclassified into the income statement and recorded in net revenue, non-directly delivered programs. | ||||||||||||||||
Unrealized gains or losses related to available-for-sale securities are recorded in AOCI. The change in unrealized gains or losses related to available-for-sale securities are recorded in other comprehensive income net of income taxes in the period the change occurred. When securities are sold and a realized gain or loss is recognized, the amount is reclassified from AOCI to the income statement and recorded in interest and dividend income. During the nine months ended September 30, 2014 and 2013, the Company recognized net realized losses of $19 thousand and $120 thousand, respectively, due to the sale of investments. | ||||||||||||||||
For the three months ended September 30, 2014 and 2013, a summary of AOCI balances and gains (losses) recognized in OCI are as follows (in thousands): | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Derivative Securities | Available-for-sale securities | |||||||||||||||
Three months ended | Three months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance, beginning of period | $ | 164 | $ | (267 | ) | $ | (90 | ) | $ | (366 | ) | |||||
Change before reclassification | (690 | ) | 253 | 12 | (24 | ) | ||||||||||
Reclassification into net revenue, non-directly delivered programs | 5 | (67 | ) | - | - | |||||||||||
Reclassification into interest and dividend income | - | - | (14 | ) | 70 | |||||||||||
Effect of incomes taxes | (0 | ) | 23 | 0 | (25 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (685 | ) | 209 | (2 | ) | 21 | ||||||||||
Balance, end of period | $ | (521 | ) | $ | (58 | ) | $ | (91 | ) | $ | (345 | ) | ||||
For the nine months ended September 30, 2014 and 2013, a summary of AOCI balances and gains (losses) recognized in OCI are as follows (in thousands): | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Derivative Securities | Available-for-sale securities | |||||||||||||||
Nine months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance, beginning of period | $ | (192 | ) | $ | 544 | $ | (357 | ) | $ | (180 | ) | |||||
Change before reclassification | (310 | ) | (482 | ) | 272 | (216 | ) | |||||||||
Reclassification into net revenue, non-directly delivered programs | (19 | ) | (185 | ) | - | - | ||||||||||
Reclassification into interest and dividend income | - | - | (6 | ) | 79 | |||||||||||
Effect of incomes taxes | (0 | ) | 65 | 0 | (28 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (329 | ) | (602 | ) | 266 | (165 | ) | |||||||||
Balance, end of period | $ | (521 | ) | $ | (58 | ) | $ | (91 | ) | $ | (345 | ) |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
10. Income Taxes | |
We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. A significant piece of objective negative evidence we evaluated was our cumulative loss incurred over the three-year period ended June 30, 2014. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. As a result, we determined that the negative evidence outweighed the positive evidence as of June 30, 2014 and recorded a one-time, non-cash charge to income tax expense of approximately $0.7 million to establish a valuation allowance against our total U.S. deferred tax assets, net of U.S. deferred tax liabilities, approximately all of which relates to the beginning of the year balance. This accounting treatment has no effect on our ability to utilize deferred tax assets such as loss carryforwards and tax credits to reduce future cash tax payments. We will continue to assess the likelihood that the deferred tax assets will be realizable at each reporting period and the valuation allowance will be adjusted accordingly. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
11. Stock-Based Compensation | |||||||||||||||||||||
Under our Equity Participation Plan (the “Plan”), we may grant stock-based incentive compensation awards to eligible employees (including officers), non-employee directors and consultants in the form of distribution equivalent rights, incentive stock options, non-qualified stock options, performance share awards, performance unit awards, restricted stock awards, restricted stock units awards, stock appreciation rights, tandem stock appreciation rights, unrestricted stock awards or any combination of the foregoing. As of September 30, 2014, we had 2,125,512 shares authorized under the Plan available for future stock-based compensation. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
Under the terms of the Plan, options to purchase shares of our common stock are granted at a price set by the Compensation Committee of the Board of Directors (the “Compensation Committee”). The price is not to be less than the fair market value of the stock on the date of grant. The Compensation Committee establishes the vesting period of the awards, which is generally set at 25 percent per year for four years. Options may be exercised any time after they vest for a period up to 10 years from the grant date. | |||||||||||||||||||||
The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of options. Option valuation models require the input of highly subjective assumptions, particularly for the expected term and stock price volatility. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and our experience. Our employee stock options do not trade on a secondary exchange; therefore, employees do not derive a benefit from holding stock options unless there is an appreciation in the market price of our stock above the grant price. Such an increase in stock price would benefit all shareholders commensurately. | |||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for grants in the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||
Three months ended | Three months ended | Nine months ended | Nine months ended | ||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||
Expected dividend yield | - | % | - | % | - | % | 1.37 | % | |||||||||||||
Expected stock price volatility | 41.94 | % | - | % | 47.98 | % | 54.66 | % | |||||||||||||
Risk-free interest rate | 2.47 | % | - | % | 2.31 | % | 2.08 | % | |||||||||||||
Expected life of options | 4.15 | Years | - | Years | 4.28 | Years | 4.56 | Years | |||||||||||||
Estimated fair value per option granted | $ | 1.58 | $ | $ | 1.61 | $ | 1.63 | ||||||||||||||
The dividend yield is based on expected quarterly cash dividends paid to our shareholders. Expected stock price volatility is based on historical volatility of our stock. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Additionally, an annualized forfeiture rate of 14.08 percent is used as a best estimate of future forfeitures based on our historical forfeiture experience. Stock-based compensation expense will be adjusted in later periods if the actual forfeiture rate is different from the estimate. | |||||||||||||||||||||
A summary of option activity under the Plan as of September 30, 2014, and the changes during the nine months then ended is presented below: | |||||||||||||||||||||
Stock Options | Weighted-Average Exercise Price | Weighted-Average | |||||||||||||||||||
Remaining Contractual | |||||||||||||||||||||
Life (years) | |||||||||||||||||||||
Outstanding at December 31, 2013 | 907,945 | $ | 6.54 | ||||||||||||||||||
Granted | 186,072 | 4.13 | |||||||||||||||||||
Forfeited / Expired | (510,450) | 6.07 | |||||||||||||||||||
Exercised | - | - | |||||||||||||||||||
Outstanding at September 30, 2014 | 583,567 | $ | 6.17 | 7.45 | |||||||||||||||||
Exercisable at September 30, 2014 | 214,348 | $ | 9.21 | 4.86 | |||||||||||||||||
During the nine months ended September 30, 2014, the total intrinsic value of stock options exercised was zero and the total fair value of options which vested was $0.8 million. During the nine months ended September 30, 2013, the total intrinsic value of stock options exercised was zero and the total fair value of options which vested was $1.0 million. The aggregate intrinsic value of outstanding and exercisable stock options was $0.1 million, based on our $3.70 closing stock price at September 30, 2014. Compensation expense recognized in the consolidated statement of operations for stock options was $0.1 million and $0.1 million for the three months ended September 30, 2014 and 2013, respectively, before the effect of income taxes. Compensation expense recognized in the consolidated statement of operations for stock options was $0.5 million and $1.0 million for the nine months ended September 30, 2014 and 2013, respectively, before the effect of income taxes. As of September 30, 2014, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $0.4 million, which is expected to be recognized over approximately 3.83 years. | |||||||||||||||||||||
Restricted Stock Grants | |||||||||||||||||||||
Restricted stock awards and restricted stock units may be granted under the Plan by the Compensation Committee. The Compensation Committee also establishes the vesting period of the awards, which is generally set at 100 percent at the conclusion of one to four years for restricted stock awards. Restricted stock units generally vest pro rata at 25 percent each year over a four year vesting period. Our key employees who have been granted awards are typically subject to a four year vesting period, while members of our Board of Directors who have been granted awards are subject to a one year vesting period. The fair value of restricted stock awards and restricted stock units is based on the market price of our shares on the grant date. | |||||||||||||||||||||
A summary of the activity of non-vested restricted stock awards and restricted stock units under the Plan as of September 30, 2014, and the changes during the nine months then ended is presented below: | |||||||||||||||||||||
Restricted Stock Awards | Restricted Stock Units | ||||||||||||||||||||
Restricted Stock | Weighted- | Weighted- | Restricted Stock | Weighted- | Weighted- | ||||||||||||||||
Awards | Average Grant | Average | Units | Average Grant | Average | ||||||||||||||||
Date Fair Value | Remaining Contractual | Date Fair Value | Remaining Contractual | ||||||||||||||||||
Life (years) | Life (years) | ||||||||||||||||||||
Balance at December 31, 2013 | 285,435 | $ | 5.24 | 28,123 | $ | 3.88 | |||||||||||||||
Granted | 51,704 | 3.72 | 81,060 | 4.34 | |||||||||||||||||
Forfeited | (13,364) | 5.76 | (12,689) | 4.13 | |||||||||||||||||
Vested | (190,335) | 4.97 | (9,555) | 4.15 | |||||||||||||||||
Balance at September 30, 2014 | 133,440 | $ | 5.00 | 1.61 | 86,939 | $ | 4.24 | 2.06 | |||||||||||||
At September 30, 2014, the aggregate value of non-vested restricted stock awards and restricted stock units was $0.5 million and $0.3 million, respectively, before applicable income taxes, based on a $3.70 closing stock price at September 30, 2014. During the three months ended September 30, 2014 and 2013, the weighted-average grant date fair value of restricted stock awards, which vested was $0.1 million and $0, respectively. During the nine months ended September 30, 2014 and 2013, the weighted-average grant date fair value of restricted stock awards, which vested was $1.0 million and $2.0 million, respectively. Compensation expense recognized in the consolidated statement of operations for restricted stock awards and units was $0.1 million for the three months ended September 30, 2014 and 2013, before the effect of income taxes. Compensation expense recognized in the consolidated statement of operations for restricted stock awards and units was $0.8 million and $1.1 million for the nine months ended September 30, 2014 and 2013, respectively, before the effect of income taxes. As of September 30, 2014, total unrecognized stock-based compensation expense related to restricted stock awards and units was approximately $0.3 million and $0.3 million, respectively, which is expected to be recognized over approximately 3.83 years. | |||||||||||||||||||||
Performance Stock Awards | |||||||||||||||||||||
Under the terms of the Plan, performance stock awards may be granted by the Compensation Committee to key executive employees. Performance stock awards are based on achieving key internal metrics measured at the end of each fiscal year over a three year performance period. If performance objectives are achieved as determined by the Compensation Committee, common stock is granted. The fair value of these awards is determined on the date of grant based on our share price. Compensation expense related to performance stock units is evaluated quarterly to determine the likelihood that performance metrics will be achieved during the performance period. | |||||||||||||||||||||
A summary of the activity of performance stock units under the Plan as of September 30, 2014, and the changes during the nine months then ended is presented below: | |||||||||||||||||||||
Performance Stock | Weighted-Average Grant Date Fair Value | Weighted-Average | |||||||||||||||||||
Units | Remaining Contractual | ||||||||||||||||||||
Life (years) | |||||||||||||||||||||
Balance at December 31, 2013 | 114,560 | $ | 4.41 | ||||||||||||||||||
Granted | - | - | |||||||||||||||||||
Forfeited | -78,514 | 4.41 | |||||||||||||||||||
Vested | - | - | |||||||||||||||||||
Balance at September 30, 2014 | 36,046 | $ | 4.41 | 2.25 | |||||||||||||||||
During the three and nine months ended September 30, 2014, no performance stock units were granted. Performance stock units outstanding on September 30, 2014 are payable upon the achievement of certain internal metrics over a performance period of January 1, 2014 through December 31, 2016. As of September 30, 2014, no compensation expense related to performance share unit awards was recognized. |
Net_Income_Loss_per_Share
Net Income (Loss) per Share | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Net Income (Loss) per Share [Abstract] | ' | ||||||||||||||
Net Income (Loss) per Share | ' | ||||||||||||||
12. Net Income (Loss) per Share | |||||||||||||||
The following table presents a reconciliation of basic and diluted income (loss) from continuing operations per share computations (in thousands, except per share data and anti-dilutive stock option counts): | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | |||||||||||||||
Net income (loss) from continuing operations | $ | 1,912 | $ | (1,803 | ) | $ | (1,284 | ) | $ | (2,190 | ) | ||||
Denominator: | |||||||||||||||
Weighted-average shares outstanding | 16,903 | 16,984 | 16,827 | 16,982 | |||||||||||
Effect of unvested restricted stock awards | 138 | - | - | - | |||||||||||
considered participating securities | |||||||||||||||
Weighted-average shares outstanding – basic | 17,041 | 16,984 | 16,827 | 16,982 | |||||||||||
Effect of dilutive common stock options | - | - | - | - | |||||||||||
Effect of dilutive restricted stock units | 5 | - | - | - | |||||||||||
Weighted-average shares outstanding – diluted | 17,046 | 16,984 | 16,827 | 16,982 | |||||||||||
Net income (loss) per share - basic | $ | 0.11 | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.13 | ) | ||||
Net income (loss) per share - diluted | $ | 0.11 | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.13 | ) | ||||
Cash dividends declared per share1 | $ | - | $ | - | $ | - | $ | 0.06 | |||||||
Stock options and restricted stock units excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive | 658,000 | 782,000 | 751,000 | 1,319,000 | |||||||||||
1The Company suspended quarterly dividend payments during the second quarter of 2013. |
Supplemental_Disclosures_of_Co
Supplemental Disclosures of Consolidated Statements of Cash Flows | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Disclosures of Consolidated Statements of Cash Flows [Abstract] | ' | |||||||
Supplemental Disclosures of Consolidated Statements of Cash Flows | ' | |||||||
13. Supplemental Disclosures of Consolidated Statements of Cash Flows | ||||||||
Our non-cash investing and financing activities during the three and nine months ended September 30, 2014 and 2013 were as follows (in thousands): | ||||||||
30-Sep-14 | 30-Sep-13 | |||||||
Unrealized loss on foreign currency exchange contracts | $ | (329 | ) | $ | (927 | ) | ||
Unrealized income (loss) on available-for-sale securities | $ | 265 | $ | (254 | ) |
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2014 | |
Line of Credit [Abstract] | ' |
Line of Credit | ' |
14. Line of Credit | |
The Company’s credit agreement with Wells Fargo expired on June 1, 2014 and was not renewed. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
On May 7, 2014, Anthony F. Dombrowik, our former interim Chief Executive Officer and Chief Financial Officer, was terminated by the Board of Directors. In connection with Mr. Dombrowik’s departure, we entered into a separation agreement effective May 7, 2014. Under the terms of the separation agreement, cash payouts of approximately $0.4 million are to be made to Mr. Dombrowik, all of which was fully expensed during the second quarter of 2014 although approximately $0.4 million remained to be paid during the 8 months following June 30, 2014. Additionally, the separation agreement called for the immediate vesting of stock options and stock grants for Mr. Dombrowik in the amount of $0.2 million. | |
We are not a party to any material pending legal proceedings other than ordinary routine litigation incidental to our business, the outcome of which we believe will not have a material adverse effect on our business, financial condition, cash flows or results of operations. | |
We are subject to the possibility of various loss contingencies, including claims, suits and complaints, arising in the ordinary course of business. We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted and whether new accruals are required. | |
Under our Bylaws, our directors and officers have rights to indemnification by us against certain liabilities that may arise by reason of their status or service as directors or officers. We maintain director and officer insurance, which covers certain liabilities arising from our obligation to indemnify our directors and officers and former directors in certain circumstances. No material indemnification liabilities were accrued at September 30, 2014. |
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Restructuring Costs [Abstract] | ' | ||
Summary of restructuring cost liability | ' | ||
The following table summarizes costs incurred to date from continuing operations as part of the restructuring plan, which began during the third quarter of 2013 and the balance of the restructuring cost liability as of September 30, 2014 (in thousands). | |||
Restructuring Costs | |||
Ambassador Programs and Other | |||
Contract termination fees | $ | 1,550 | |
Separation payments | 949 | ||
Equity compensation expenses | 377 | ||
Other transition costs | 1,166 | ||
Accumulated expense at September 30, 2014 | 4,042 | ||
less: cash payments | 3,302 | ||
less: non-cash expenses | 377 | ||
Total restructuring liabilities at September 30, 2014 | $ | 363 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Discontinued Operations [Abstract] | ' | |||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||||||||||
The following table summarizes the assets and liabilities of discontinued operations including in the consolidated balance sheet as of December 31, 2013. There were no assets and liabilities of discontinued operations as of September 30, 2014. | ||||||||||||||||
Balance Sheet (Audited) | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 765 | ||||||||||||||
Accounts receivable | 731 | |||||||||||||||
Other current assets | 62 | |||||||||||||||
Total current assets | 1,558 | |||||||||||||||
Property and equipment, net | 710 | |||||||||||||||
Intangibles | 3,522 | |||||||||||||||
Goodwill | 9,711 | |||||||||||||||
Total assets | $ | 15,501 | ||||||||||||||
Liabilities | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable and accrued expenses | $ | 283 | ||||||||||||||
Other current liabilties | 118 | |||||||||||||||
Total current liabilites | 401 | |||||||||||||||
Other long-term liabilties | 1,056 | |||||||||||||||
Total liabilties | $ | 1,457 | ||||||||||||||
The following table summarizes the results of discontinued operations for the periods indicated (in thousands): | ||||||||||||||||
Three months ended September 30, 2014 | Three months ended September 30, 2013 | Nine months ended September 30, 2014 | Nine months ended September 30, 2013 | |||||||||||||
Total revenue | $ | 545 | $ | 910 | $ | 2,608 | $ | 2,938 | ||||||||
Gross margin | $ | 472 | $ | 785 | $ | 2,285 | $ | 2,558 | ||||||||
Selling & marketing expenses | $ | (53 | ) | $ | (364 | ) | $ | (706 | ) | $ | (1,155 | ) | ||||
General & administrative expenses | $ | (258 | ) | $ | (171 | ) | $ | (679 | ) | $ | (444 | ) | ||||
Restructuring costs | $ | - | $ | - | $ | (522 | ) | $ | - | |||||||
Impairment and gain (loss) on sale of discontinued operations | $ | 35 | $ | - | $ | (9,676 | ) | $ | - | |||||||
Operating income (loss) from discontinued operations | $ | 196 | $ | 250 | $ | (9,298 | ) | $ | 959 | |||||||
Income tax benefit (provision) on discontinued operations | $ | 230 | $ | (61 | ) | $ | 1,184 | $ | (350 | ) | ||||||
Net income (loss) from discontinued operations | $ | 426 | $ | 189 | $ | (8,114 | ) | $ | 609 |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ' | |||||||||||||||||||
Fair value of investments | ' | |||||||||||||||||||
The following tables summarize the composition of our investments at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||||
Classification on Balance Sheet | ||||||||||||||||||||
30-Sep-14 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term | Long-term available for-sale securities | ||||||||||||||
available-for-sale securities | ||||||||||||||||||||
Auction rate securities (“ARS”), greater than one year | $ | 1,000 | $ | (276 | ) | $ | 724 | $ | - | $ | - | $ | 724 | |||||||
Money market funds, ninety days or less | 17 | - | 17 | 17 | - | - | ||||||||||||||
Municipal securities1 | ||||||||||||||||||||
Short term municipal securities funds2 | 42,803 | 17 | 42,820 | - | 42,820 | - | ||||||||||||||
One year or less | - | - | - | - | - | - | ||||||||||||||
After one year through three years | - | - | - | - | - | - | ||||||||||||||
Greater than three years | 782 | (16 | ) | 766 | - | 766 | - | |||||||||||||
Total | $ | 44,602 | $ | (275 | ) | $ | 44,327 | $ | 17 | $ | 43,586 | $ | 724 | |||||||
Classification on Balance Sheet | ||||||||||||||||||||
31-Dec-13 | Amortized Cost | Unrealized Gains (Losses) | Aggregate Fair Value | Cash and cash equivalents | Short-term available-for-sale securities | Long-term available-for-sale securities | ||||||||||||||
ARS, greater than one year | $ | 1,002 | $ | (283 | ) | $ | 719 | $ | - | $ | - | $ | 719 | |||||||
Money market funds, ninety days or less | 488 | - | 488 | 488 | - | - | ||||||||||||||
Municipal securities1 | ||||||||||||||||||||
Short term municipal securities funds2 | 27,493 | (143 | ) | 27,350 | - | 27,350 | - | |||||||||||||
One year or less | 952 | 3 | 955 | - | 955 | - | ||||||||||||||
After one year through three years | 3,132 | 20 | 3,152 | - | 3,152 | - | ||||||||||||||
Greater than three years | 4,854 | (137 | ) | 4,717 | - | 4,717 | - | |||||||||||||
Total | $ | 37,921 | $ | (540 | ) | $ | 37,381 | $ | 488 | $ | 36,174 | $ | 719 | |||||||
1Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
2Amounts include short-term municipal security funds that do not have a set maturity date. | ||||||||||||||||||||
Fair value by balance sheet grouping | ' | |||||||||||||||||||
The following tables detail the fair value measurements of assets and liabilities within the three levels of the fair value hierarchy at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
30-Sep-14 | Fair Market Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | ||||||||||||||||||||
ARS | $ | 724 | $ | - | $ | - | $ | 724 | ||||||||||||
Money market funds | 17 | 17 | - | - | ||||||||||||||||
Municipal securities1 | 43,585 | 42,819 | 766 | - | ||||||||||||||||
Foreign currency exchange contracts | - | - | - | - | ||||||||||||||||
Total financial assets | $ | 44,326 | $ | 42,836 | $ | 766 | $ | 724 | ||||||||||||
Financial liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts | 625 | - | 625 | - | ||||||||||||||||
Total financial liabilities | $ | 625 | $ | - | $ | 625 | $ | - | ||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
31-Dec-13 | Fair Market Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial assets: | ||||||||||||||||||||
ARS | $ | 719 | $ | - | $ | - | $ | 719 | ||||||||||||
Money market funds | 488 | 488 | - | - | ||||||||||||||||
Municipal securities1 | 36,174 | 27,350 | 8,824 | - | ||||||||||||||||
Foreign currency exchange contracts | 253 | - | 253 | - | ||||||||||||||||
Total financial assets | $ | 37,634 | $ | 27,838 | $ | 9,077 | $ | 719 | ||||||||||||
Financial liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts | 549 | - | 549 | - | ||||||||||||||||
Total financial liabilities | $ | 549 | $ | - | $ | 549 | $ | - | ||||||||||||
1 At September 30, 2014, municipal securities were split 98/1/1 percent between holdings in short-term municipal security funds, municipal revenue bonds, and municipal general obligation bonds, respectively. At December 31, 2013, municipal securities were split 76/13/11 percent split between holdings in short-term municipal security funds, municipal revenue bonds and municipal general obligation bonds, respectively. The underlying credit rating of the municipal securities at September 30, 2014 and December 31, 2013 were A+, A1 or better as defined by S&P 500 and Moody’s, respectively. | ||||||||||||||||||||
Fair value measurements of assets measured on non-recurring basis | ' | |||||||||||||||||||
The following table details the fair value measurements of assets measured on a non-recurring basis within the three levels of the fair value hierarchy at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Total Loss | |||||||||||||||||||
30-Sep-14 | Fair Market Value | Qouted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Three months ended September 30, 2014 | |||||||||||||||
Non-financal assets: | ||||||||||||||||||||
Property and equipment, net | $ | 8,750 | $ | - | $ | - | $ | 8,750 | $ | 2,000 | ||||||||||
The following table details the fair value measurements of assets measured on a non-recurring basis within the three levels of the fair value hierarchy at December 31, 2013 (in thousands): | ||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | Total Loss | |||||||||||||||||||
31-Dec-13 | Fair Market Value | Qouted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Year ended December 31, 2013 | |||||||||||||||
Non-financal assets: | ||||||||||||||||||||
Property and equipment, net | $ | 11,000 | $ | - | $ | - | $ | 11,000 | $ | 4,544 | ||||||||||
Fair value of Level 3 assets measured on a recurring basis | ' | |||||||||||||||||||
The following table presents a reconciliation for the three and nine months ended September 30, 2014 and 2013, of available-for-sale ARS measured at fair value on a recurring basis using Level 3 inputs (in thousands): | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Beginning balance | $ | 729 | $ | 716 | $ | 719 | $ | 723 | ||||||||||||
Total realized / unrealized gains (losses): | ||||||||||||||||||||
Included in OCI | (5 | ) | 1 | 5 | (6 | ) | ||||||||||||||
Ending balance | $ | 724 | $ | 717 | $ | 724 | $ | 717 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||
Foreign currency contracts, by maturity | ' | ||||||||||
At September 30, 2014, the following forward contracts were outstanding (in thousands): | |||||||||||
Notional Amount | Matures | ||||||||||
Forward contracts: | |||||||||||
Australian dollar | 3,250 | January 2015 - July 2015 | |||||||||
Euro | 9,500 | January 2015 - July 2015 | |||||||||
British pound | 1,900 | January 2015 - July 2015 | |||||||||
Canadian dollar | 400 | March 2015 - May 2015 | |||||||||
New Zealand dollar | 400 | March 2015 - July 2015 | |||||||||
Japenese Yen | 25,000 | May-15 | |||||||||
Forward contracts, by hedging designation | ' | ||||||||||
The fair values of our forward contracts were as follows (in thousands): | |||||||||||
30-Sep-14 | |||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||
Assets | Liabilities | Liabilities | |||||||||
Forward contracts | $ | - | $ | 625 | $ | 625 | |||||
31-Dec-13 | |||||||||||
Derivatives designated as hedging instruments | Total Net | ||||||||||
Assets | Liabilities | Liabilities | |||||||||
Forward contracts | $ | 253 | $ | 549 | $ | 296 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||
Summary of AOCI balances and gains (losses) recognized in OCI | ' | |||||||||||||||
For the three months ended September 30, 2014 and 2013, a summary of AOCI balances and gains (losses) recognized in OCI are as follows (in thousands): | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Derivative Securities | Available-for-sale securities | |||||||||||||||
Three months ended | Three months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance, beginning of period | $ | 164 | $ | (267 | ) | $ | (90 | ) | $ | (366 | ) | |||||
Change before reclassification | (690 | ) | 253 | 12 | (24 | ) | ||||||||||
Reclassification into net revenue, non-directly delivered programs | 5 | (67 | ) | - | - | |||||||||||
Reclassification into interest and dividend income | - | - | (14 | ) | 70 | |||||||||||
Effect of incomes taxes | (0 | ) | 23 | 0 | (25 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (685 | ) | 209 | (2 | ) | 21 | ||||||||||
Balance, end of period | $ | (521 | ) | $ | (58 | ) | $ | (91 | ) | $ | (345 | ) | ||||
For the nine months ended September 30, 2014 and 2013, a summary of AOCI balances and gains (losses) recognized in OCI are as follows (in thousands): | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Derivative Securities | Available-for-sale securities | |||||||||||||||
Nine months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance, beginning of period | $ | (192 | ) | $ | 544 | $ | (357 | ) | $ | (180 | ) | |||||
Change before reclassification | (310 | ) | (482 | ) | 272 | (216 | ) | |||||||||
Reclassification into net revenue, non-directly delivered programs | (19 | ) | (185 | ) | - | - | ||||||||||
Reclassification into interest and dividend income | - | - | (6 | ) | 79 | |||||||||||
Effect of incomes taxes | (0 | ) | 65 | 0 | (28 | ) | ||||||||||
Other comprehensive income (loss), net of income taxes | (329 | ) | (602 | ) | 266 | (165 | ) | |||||||||
Balance, end of period | $ | (521 | ) | $ | (58 | ) | $ | (91 | ) | $ | (345 | ) |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||||||
Valuation assumptions | ' | ||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for grants in the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||
Three months ended | Three months ended | Nine months ended | Nine months ended | ||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||
Expected dividend yield | - | % | - | % | - | % | 1.37 | % | |||||||||||||
Expected stock price volatility | 41.94 | % | - | % | 47.98 | % | 54.66 | % | |||||||||||||
Risk-free interest rate | 2.47 | % | - | % | 2.31 | % | 2.08 | % | |||||||||||||
Expected life of options | 4.15 | Years | - | Years | 4.28 | Years | 4.56 | Years | |||||||||||||
Estimated fair value per option granted | $ | 1.58 | $ | $ | 1.61 | $ | 1.63 | ||||||||||||||
Summary of stock option activity | ' | ||||||||||||||||||||
A summary of option activity under the Plan as of September 30, 2014, and the changes during the nine months then ended is presented below: | |||||||||||||||||||||
Stock Options | Weighted-Average Exercise Price | Weighted-Average | |||||||||||||||||||
Remaining Contractual | |||||||||||||||||||||
Life (years) | |||||||||||||||||||||
Outstanding at December 31, 2013 | 907,945 | $ | 6.54 | ||||||||||||||||||
Granted | 186,072 | 4.13 | |||||||||||||||||||
Forfeited / Expired | (510,450) | 6.07 | |||||||||||||||||||
Exercised | - | - | |||||||||||||||||||
Outstanding at September 30, 2014 | 583,567 | $ | 6.17 | 7.45 | |||||||||||||||||
Exercisable at September 30, 2014 | 214,348 | $ | 9.21 | 4.86 | |||||||||||||||||
Summary of activity of non-vested restricted stock awards and restricted stock units | ' | ||||||||||||||||||||
A summary of the activity of non-vested restricted stock awards and restricted stock units under the Plan as of September 30, 2014, and the changes during the nine months then ended is presented below: | |||||||||||||||||||||
Restricted Stock Awards | Restricted Stock Units | ||||||||||||||||||||
Restricted Stock | Weighted- | Weighted- | Restricted Stock | Weighted- | Weighted- | ||||||||||||||||
Awards | Average Grant | Average | Units | Average Grant | Average | ||||||||||||||||
Date Fair Value | Remaining Contractual | Date Fair Value | Remaining Contractual | ||||||||||||||||||
Life (years) | Life (years) | ||||||||||||||||||||
Balance at December 31, 2013 | 285,435 | $ | 5.24 | 28,123 | $ | 3.88 | |||||||||||||||
Granted | 51,704 | 3.72 | 81,060 | 4.34 | |||||||||||||||||
Forfeited | (13,364) | 5.76 | (12,689) | 4.13 | |||||||||||||||||
Vested | (190,335) | 4.97 | (9,555) | 4.15 | |||||||||||||||||
Balance at September 30, 2014 | 133,440 | $ | 5.00 | 1.61 | 86,939 | $ | 4.24 | 2.06 | |||||||||||||
Summary of activity of performance stock units under the Plan | ' | ||||||||||||||||||||
A summary of the activity of performance stock units under the Plan as of September 30, 2014, and the changes during the nine months then ended is presented below: | |||||||||||||||||||||
Performance Stock | Weighted-Average Grant Date Fair Value | Weighted-Average | |||||||||||||||||||
Units | Remaining Contractual | ||||||||||||||||||||
Life (years) | |||||||||||||||||||||
Balance at December 31, 2013 | 114,560 | $ | 4.41 | ||||||||||||||||||
Granted | - | - | |||||||||||||||||||
Forfeited | -78,514 | 4.41 | |||||||||||||||||||
Vested | - | - | |||||||||||||||||||
Balance at September 30, 2014 | 36,046 | $ | 4.41 | 2.25 |
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Net Income (Loss) per Share [Abstract] | ' | ||||||||||||||
Reconciliation of basic and diluted income per share computations | ' | ||||||||||||||
The following table presents a reconciliation of basic and diluted income (loss) from continuing operations per share computations (in thousands, except per share data and anti-dilutive stock option counts): | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | |||||||||||||||
Net income (loss) from continuing operations | $ | 1,912 | $ | (1,803 | ) | $ | (1,284 | ) | $ | (2,190 | ) | ||||
Denominator: | |||||||||||||||
Weighted-average shares outstanding | 16,903 | 16,984 | 16,827 | 16,982 | |||||||||||
Effect of unvested restricted stock awards | 138 | - | - | - | |||||||||||
considered participating securities | |||||||||||||||
Weighted-average shares outstanding – basic | 17,041 | 16,984 | 16,827 | 16,982 | |||||||||||
Effect of dilutive common stock options | - | - | - | - | |||||||||||
Effect of dilutive restricted stock units | 5 | - | - | - | |||||||||||
Weighted-average shares outstanding – diluted | 17,046 | 16,984 | 16,827 | 16,982 | |||||||||||
Net income (loss) per share - basic | $ | 0.11 | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.13 | ) | ||||
Net income (loss) per share - diluted | $ | 0.11 | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.13 | ) | ||||
Cash dividends declared per share1 | $ | - | $ | - | $ | - | $ | 0.06 | |||||||
Stock options and restricted stock units excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive | 658,000 | 782,000 | 751,000 | 1,319,000 | |||||||||||
1The Company suspended quarterly dividend payments during the second quarter of 2013. |
Supplemental_Disclosures_of_Co1
Supplemental Disclosures of Consolidated Statements of Cash Flows (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Disclosures of Consolidated Statements of Cash Flows [Abstract] | ' | |||||||
Non-cash investing and financing activities | ' | |||||||
13. Supplemental Disclosures of Consolidated Statements of Cash Flows | ||||||||
Our non-cash investing and financing activities during the three and nine months ended September 30, 2014 and 2013 were as follows (in thousands): | ||||||||
30-Sep-14 | 30-Sep-13 | |||||||
Unrealized loss on foreign currency exchange contracts | $ | (329 | ) | $ | (927 | ) | ||
Unrealized income (loss) on available-for-sale securities | $ | 265 | $ | (254 | ) |
The_Company_Details
The Company (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
The Company [Abstract] | ' |
Number of reporting segments | 2 |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Period in which restructuring costs will be recognized | ' | ' | ' | '12 months | ' |
Additional restructuring cost incurred | $217 | $1,600 | $1,756 | $1,756 | $1,756 |
Ambassador Programs and Other [Member] | ' | ' | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | 4,042 | ' |
less: cash payments | ' | ' | ' | 3,302 | ' |
less: non-cash expenses | ' | ' | ' | 377 | ' |
Total restructuring liabilities at September 30, 2014 | 363 | ' | ' | 363 | ' |
Ambassador Programs and Other [Member] | Contract Termination Fees [Member] | ' | ' | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | 1,550 | ' |
Ambassador Programs and Other [Member] | Separation Payments [Member] | ' | ' | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | 949 | ' |
Ambassador Programs and Other [Member] | Equity Compensation Expense [Member] | ' | ' | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | 377 | ' |
Ambassador Programs and Other [Member] | Other Transition Costs [Member] | ' | ' | ' | ' | ' |
Restructuring cost liability [Roll Forward] | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | $1,166 | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
BookRags [Member] | BookRags [Member] | ||||||
Current assets: [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | $765,000 |
Accounts receivable | ' | ' | ' | ' | ' | ' | 731,000 |
Other current assets | ' | ' | ' | ' | ' | ' | 62,000 |
Total current assets | 8,400,000 | ' | 8,400,000 | ' | 0 | ' | 1,558,000 |
Property and equipment, net | ' | ' | ' | ' | ' | ' | 710,000 |
Intangibles | ' | ' | ' | ' | ' | ' | 3,522,000 |
Goodwill | ' | ' | ' | ' | ' | ' | 9,711,000 |
Total assets | 8,800,000 | ' | 8,800,000 | ' | ' | ' | 15,501,000 |
Current liabilities: | ' | ' | ' | ' | ' | ' | ' |
Accounts payable and accrued expenses | ' | ' | ' | ' | ' | ' | 283,000 |
Other current liabilties | ' | ' | ' | ' | ' | ' | 118,000 |
Total current liabilites | ' | ' | ' | ' | ' | ' | 401,000 |
Other long-term liabilties | ' | ' | ' | ' | ' | ' | 1,056,000 |
Total liabilties | ' | ' | ' | ' | ' | ' | 1,457,000 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Total revenue | 545,000 | 910,000 | 2,608,000 | 2,938,000 | ' | ' | ' |
Gross margin | 472,000 | 785,000 | 2,285,000 | 2,558,000 | ' | ' | ' |
Selling & marketing expenses | -53,000 | -364,000 | -706,000 | -1,156,000 | ' | ' | ' |
General & administrative expenses | -258,000 | -171,000 | -679,000 | -444,000 | ' | ' | ' |
Restructuring costs | 0 | 0 | -522,000 | 0 | ' | ' | ' |
Impairment and gain (loss) on sale of discontinued operations | 35,000 | 0 | -9,676,000 | 0 | ' | ' | ' |
Operating income (loss) from discontinued operations | 196,000 | 250,000 | -9,298,000 | 959,000 | ' | ' | ' |
Income tax benefit (provision) on discontinued operations | 230,000 | -61,000 | 1,184,000 | -350,000 | ' | ' | ' |
Net income (loss) from discontinued operations | 426,000 | 189,000 | -8,114,000 | 609,000 | ' | ' | ' |
Gross proceeds from sale of BookRags | ' | ' | ' | ' | ' | 5,000,000 | ' |
Amount held in escrow | ' | ' | ' | ' | ' | $400,000 | ' |
Assets_Held_For_Sale_Details
Assets Held For Sale (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Assets held for sale [Abstract] | ' | ' | ' | ' | ' |
Purchase and sale agreement amount for land and building | $8,800,000 | ' | ' | $8,800,000 | ' |
Asset impairment charges | 350,000 | 2,000,000 | 6,461,000 | 2,350,000 | 6,461,000 |
Assets held for sale, Gross | 8,800,000 | ' | ' | 8,800,000 | ' |
Sales commissions and fees | $400,000 | ' | ' | $400,000 | ' |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Investment | Investment | |||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Amortized Cost | $44,602,000 | ' | $44,602,000 | ' | $37,921,000 | |||
Unrealized Gains (Losses) | -275,000 | ' | -275,000 | ' | -540,000 | |||
Aggregate Fair Value | 44,327,000 | ' | 44,327,000 | ' | 37,381,000 | |||
Cash and cash equivalents | 17,000 | ' | 17,000 | ' | 488,000 | |||
Short-term available-for-sale securities | 43,586,000 | ' | 43,586,000 | ' | 36,174,000 | |||
Long-term available-for-sale securities | 724,000 | ' | 724,000 | ' | 719,000 | |||
Financial assets [Abstract] | ' | ' | ' | ' | ' | |||
ARS | 724,000 | ' | 724,000 | ' | 719,000 | |||
Money market funds | 17,000 | ' | 17,000 | ' | 488,000 | |||
Municipal securities | 43,585,000 | [1] | ' | 43,585,000 | [1] | ' | 36,174,000 | [1] |
Foreign currency exchange contracts | 0 | ' | 0 | ' | 253,000 | |||
Total financial assets | 44,326,000 | ' | 44,326,000 | ' | 37,634,000 | |||
Financial liabilities [Abstract] | ' | ' | ' | ' | ' | |||
Foreign currency exchange contracts | 625,000 | ' | 625,000 | ' | 549,000 | |||
Total financial liabilities | 625,000 | ' | 625,000 | ' | 549,000 | |||
Non-financial assets [Abstract] | ' | ' | ' | ' | ' | |||
Property and equipment, net | 8,750,000 | ' | 8,750,000 | ' | 11,000,000 | |||
Loss on disposition and impairment of property and equipment | 2,000,000 | ' | 2,364,000 | 6,461,000 | 4,544,000 | |||
Short-term municipal security funds as a percentage of municipal securities (in hundredths) | 98.00% | ' | 98.00% | ' | 76.00% | |||
Municipal revenue bonds as a percentage of municipal securities (in hundredths) | 1.00% | ' | 1.00% | ' | 13.00% | |||
Municipal general obligation bonds as a percentage of municipal securities (in hundredths) | 1.00% | ' | 1.00% | ' | 11.00% | |||
Reconciliation of available-for-sale ARS measured at fair value on a recurring basis using Level 3 inputs [Roll Forward] | ' | ' | ' | ' | ' | |||
Beginning balance | 729,000 | 716,000 | 719,000 | 723,000 | 723,000 | |||
Total realized / unrealized gains (losses): [Abstract] | ' | ' | ' | ' | ' | |||
Included in OCI | -5,000 | 1,000 | 5,000 | -6,000 | ' | |||
Ending balance | 724,000 | 717,000 | 724,000 | 717,000 | 719,000 | |||
Assets held for sale | 8,400,000 | ' | 8,400,000 | ' | 0 | |||
Sales commissions and fees | 400,000 | ' | 400,000 | ' | ' | |||
Number of investments that failed at auction | 1 | ' | 1 | ' | ' | |||
Principal amount of failed ARS auction | 1,000,000 | ' | 1,000,000 | ' | ' | |||
Basis points (in hundredths) | ' | ' | 3.21% | ' | ' | |||
Valuation of Ars after discount has been applied | 700,000 | ' | 700,000 | ' | ' | |||
Cost basis | 1,000,000 | ' | 1,000,000 | ' | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ' | ' | |||
Financial assets [Abstract] | ' | ' | ' | ' | ' | |||
ARS | 0 | ' | 0 | ' | 0 | |||
Money market funds | 17,000 | ' | 17,000 | ' | 488,000 | |||
Municipal securities | 42,819,000 | [1] | ' | 42,819,000 | [1] | ' | 27,350,000 | [1] |
Foreign currency exchange contracts | 0 | ' | 0 | ' | 0 | |||
Total financial assets | 42,836,000 | ' | 42,836,000 | ' | 27,838,000 | |||
Financial liabilities [Abstract] | ' | ' | ' | ' | ' | |||
Foreign currency exchange contracts | 0 | ' | 0 | ' | 0 | |||
Total financial liabilities | 0 | ' | 0 | ' | 0 | |||
Non-financial assets [Abstract] | ' | ' | ' | ' | ' | |||
Property and equipment, net | 0 | ' | 0 | ' | 0 | |||
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' | |||
Financial assets [Abstract] | ' | ' | ' | ' | ' | |||
ARS | 0 | ' | 0 | ' | 0 | |||
Money market funds | 0 | ' | 0 | ' | 0 | |||
Municipal securities | 766,000 | [1] | ' | 766,000 | [1] | ' | 8,824,000 | [1] |
Foreign currency exchange contracts | 0 | ' | 0 | ' | 253,000 | |||
Total financial assets | 766,000 | ' | 766,000 | ' | 9,077,000 | |||
Financial liabilities [Abstract] | ' | ' | ' | ' | ' | |||
Foreign currency exchange contracts | 625,000 | ' | 625,000 | ' | 549,000 | |||
Total financial liabilities | 625,000 | ' | 625,000 | ' | 549,000 | |||
Non-financial assets [Abstract] | ' | ' | ' | ' | ' | |||
Property and equipment, net | 0 | ' | 0 | ' | 0 | |||
Significant Other Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' | ' | |||
Financial assets [Abstract] | ' | ' | ' | ' | ' | |||
ARS | 724,000 | ' | 724,000 | ' | 719,000 | |||
Money market funds | 0 | ' | 0 | ' | 0 | |||
Municipal securities | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Foreign currency exchange contracts | 0 | ' | 0 | ' | 0 | |||
Total financial assets | 724,000 | ' | 724,000 | ' | 719,000 | |||
Financial liabilities [Abstract] | ' | ' | ' | ' | ' | |||
Foreign currency exchange contracts | 0 | ' | 0 | ' | 0 | |||
Total financial liabilities | 0 | ' | 0 | ' | 0 | |||
Non-financial assets [Abstract] | ' | ' | ' | ' | ' | |||
Property and equipment, net | 8,750,000 | ' | 8,750,000 | ' | 11,000,000 | |||
Auction Rate Securities ("ARS"), Greater Than One Year [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Amortized Cost | 1,000,000 | ' | 1,000,000 | ' | 1,002,000 | |||
Unrealized Gains (Losses) | -276,000 | ' | -276,000 | ' | -283,000 | |||
Aggregate Fair Value | 724,000 | ' | 724,000 | ' | 719,000 | |||
Cash and cash equivalents | 0 | ' | 0 | ' | 0 | |||
Short-term available-for-sale securities | 0 | ' | 0 | ' | 0 | |||
Long-term available-for-sale securities | 724,000 | ' | 724,000 | ' | 719,000 | |||
Money Market Funds, Ninety Days or Less [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Amortized Cost | 17,000 | ' | 17,000 | ' | 488,000 | |||
Unrealized Gains (Losses) | 0 | ' | 0 | ' | 0 | |||
Aggregate Fair Value | 17,000 | ' | 17,000 | ' | 488,000 | |||
Cash and cash equivalents | 17,000 | ' | 17,000 | ' | 488,000 | |||
Short-term available-for-sale securities | 0 | ' | 0 | ' | 0 | |||
Long-term available-for-sale securities | 0 | ' | 0 | ' | 0 | |||
Short Term Municipal Securities Funds [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Amortized Cost | 42,803,000 | [2],[3] | ' | 42,803,000 | [2],[3] | ' | 27,493,000 | [2],[3] |
Unrealized Gains (Losses) | 17,000 | [2],[3] | ' | 17,000 | [2],[3] | ' | -143,000 | [2],[3] |
Aggregate Fair Value | 42,820,000 | [2],[3] | ' | 42,820,000 | [2],[3] | ' | 27,350,000 | [2],[3] |
Cash and cash equivalents | 0 | [2],[3] | ' | 0 | [2],[3] | ' | 0 | [2],[3] |
Short-term available-for-sale securities | 42,820,000 | [2],[3] | ' | 42,820,000 | [2],[3] | ' | 27,350,000 | [2],[3] |
Long-term available-for-sale securities | 0 | [2],[3] | ' | 0 | [2],[3] | ' | 0 | [2],[3] |
Municipal Securities Maturing in One Year or Less [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Amortized Cost | 0 | [2] | ' | 0 | [2] | ' | 952,000 | [2] |
Unrealized Gains (Losses) | 0 | [2] | ' | 0 | [2] | ' | 3,000 | [2] |
Aggregate Fair Value | 0 | [2] | ' | 0 | [2] | ' | 955,000 | [2] |
Cash and cash equivalents | 0 | [2] | ' | 0 | [2] | ' | 0 | [2] |
Short-term available-for-sale securities | 0 | [2] | ' | 0 | [2] | ' | 955,000 | [2] |
Long-term available-for-sale securities | 0 | [2] | ' | 0 | [2] | ' | 0 | [2] |
Municipal Securities Maturing After One Year Through Three Years [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Amortized Cost | 0 | [2] | ' | 0 | [2] | ' | 3,132,000 | [2] |
Unrealized Gains (Losses) | 0 | [2] | ' | 0 | [2] | ' | 20,000 | [2] |
Aggregate Fair Value | 0 | [2] | ' | 0 | [2] | ' | 3,152,000 | [2] |
Cash and cash equivalents | 0 | [2] | ' | 0 | [2] | ' | 0 | [2] |
Short-term available-for-sale securities | 0 | [2] | ' | 0 | [2] | ' | 3,152,000 | [2] |
Long-term available-for-sale securities | 0 | [2] | ' | 0 | [2] | ' | 0 | [2] |
Municipal Securities Maturing Greater Than Three Years [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Amortized Cost | 782,000 | [2] | ' | 782,000 | [2] | ' | 4,854,000 | [2] |
Unrealized Gains (Losses) | -16,000 | [2] | ' | -16,000 | [2] | ' | -137,000 | [2] |
Aggregate Fair Value | 766,000 | [2] | ' | 766,000 | [2] | ' | 4,717,000 | [2] |
Cash and cash equivalents | 0 | [2] | ' | 0 | [2] | ' | 0 | [2] |
Short-term available-for-sale securities | 766,000 | [2] | ' | 766,000 | [2] | ' | 4,717,000 | [2] |
Long-term available-for-sale securities | $0 | [2] | ' | $0 | [2] | ' | $0 | [2] |
[1] | At September 30, 2014, municipal securities were split 98/1/1 percent between holdings in short-term municipal security funds, municipal revenue bonds, and municipal general obligation bonds, respectively. At December 31, 2013, municipal securities were split 76/13/11 percent split between holdings in short-term municipal security funds, municipal revenue bonds and municipal general obligation bonds, respectively. The underlying credit rating of the municipal securities at September 30, 2014 and December 31, 2013 were A+, A1 or better as defined by S&P 500 and Moody's, respectively. | |||||||
[2] | Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||
[3] | Amounts include short-term municipal security funds that do not have a set maturity date. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Australian Dollar [Member] | Australian Dollar [Member] | Australian Dollar [Member] | Euro [Member] | Euro [Member] | Euro [Member] | British Pound [Member] | British Pound [Member] | British Pound [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | New Zealand Dollar [Member] | New Zealand Dollar [Member] | New Zealand Dollar [Member] | Japanese Yen [Member] |
Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | |||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency forward contracts | ' | ' | $3,250 | ' | ' | $9,500 | ' | ' | $1,900 | ' | ' | $400 | ' | ' | $400 | ' | ' | $25,000 |
Derivative maturity date range | ' | ' | ' | 31-Jan-15 | 31-Jul-15 | ' | 31-Jan-15 | 31-Jul-15 | ' | 31-Jan-15 | 31-Jul-15 | ' | 31-Mar-15 | 31-May-15 | ' | 31-Mar-15 | 31-Jul-15 | 31-May-15 |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward contracts, assets | 0 | 253 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward contracts, liabilities | 625 | 549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net forward contracts | $625 | $296 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | ($549) | ' |
Reclassification into net revenue, non-directly delivered programs | 10,818 | 15,071 | 29,027 | 36,254 |
Reclassification into interest and dividend income | 84 | 70 | 356 | 357 |
Effect of incomes taxes, Derivative Securities | 0 | 112 | 0 | -324 |
Effect of income taxes, Available-for-sale securities | 0 | 12 | 0 | -89 |
Balance, end of period | -612 | ' | -612 | ' |
Realized gain (loss) on sale of investments | ' | ' | 19 | 120 |
Derivative Securities [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | 164 | -267 | -192 | 544 |
Change before reclassification | -690 | 253 | -310 | -482 |
Reclassification into net revenue, non-directly delivered programs | 5 | -67 | -19 | -185 |
Reclassification into interest and dividend income | 0 | 0 | 0 | 0 |
Effect of incomes taxes, Derivative Securities | 0 | 23 | 0 | 65 |
Other comprehensive income (loss), net of income taxes | -685 | 209 | -329 | -602 |
Balance, end of period | -521 | -58 | -521 | -58 |
Available-for-sale securities [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | -90 | -366 | -357 | -180 |
Change before reclassification | 12 | -24 | 272 | -216 |
Reclassification into net revenue, non-directly delivered programs | 0 | 0 | 0 | 0 |
Reclassification into interest and dividend income | -14 | 70 | -6 | 79 |
Effect of income taxes, Available-for-sale securities | 0 | -25 | 0 | -28 |
Other comprehensive income (loss), net of income taxes | -2 | 21 | 266 | -165 |
Balance, end of period | ($91) | ($345) | ($91) | ($345) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Income Taxes [Abstract] | ' |
Income tax expense | $0.70 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares authorized under the plan available for future stock-based compensation (in shares) | 2,125,512 | ' | 2,125,512 | ' |
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% | 1.37% |
Expected stock price volatility (in hundredths) | 41.94% | 0.00% | 47.98% | 54.66% |
Risk-free interest rate (in hundredths) | 2.47% | 0.00% | 2.31% | 2.08% |
Expected life of options | '4 years 1 month 24 days | '0 years | '4 years 3 months 11 days | '4 years 6 months 22 days |
Estimated fair value per option granted (in dollars per share) | $1.58 | $0 | $1.61 | $1.63 |
Stock Options [Roll Forward] | ' | ' | ' | ' |
Stock Options, Beginning Balance (in shares) | ' | ' | 907,945 | ' |
Stock Options, Granted in Period (in shares) | ' | ' | 186,072 | ' |
Stock Options, Forfeited / Expired (in shares) | ' | ' | -510,450 | ' |
Stock Options, Exercised (in shares) | ' | ' | 0 | ' |
Stock Options, Ending Balance (in shares) | 583,567 | ' | 583,567 | ' |
Stock Options, Exercisable Ending Balance (in shares) | 214,348 | ' | 214,348 | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Stock Options, Weighted-Average Exercise Price, Beginning Balance (in dollars per share) | ' | ' | $6.54 | ' |
Stock Options, Granted, Weighted-Average Exercise Price (in dollars per share) | ' | ' | $4.13 | ' |
Stock Options, Forfeited / Expired, Weighted Average Exercise Price (in dollars per share) | ' | ' | $6.07 | ' |
Stock Options, Exercised, Weighted Average Exercise Price (in dollars per share) | ' | ' | $0 | ' |
Stock Options, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $6.17 | ' | $6.17 | ' |
Stock Options Exercisable, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $9.21 | ' | $9.21 | ' |
Outstanding, Weighted-Average Remaining Contractual Life | ' | ' | '7 years 5 months 12 days | ' |
Exercisable, Weighted-Average Remaining Contractual Life | ' | ' | '4 years 10 months 10 days | ' |
Stock-based compensation | ' | ' | $1,305,000 | $2,161,000 |
Board of Directors [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '1 year | ' |
Key Employees and Consultants [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '4 years | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Percentage that can vest per year (in hundredths) | ' | ' | 25.00% | ' |
Vesting period | ' | ' | '4 years | ' |
Exercised period for vest from grant date | ' | ' | '10 years | ' |
Fair value assumptions expected forfeiture rate (in hundredths) | ' | ' | 14.08% | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | 0 | 0 | 0 | 0 |
Total fair value of options vested | ' | ' | 800,000 | 1,000,000 |
Stock-based compensation | 100,000 | 100,000 | 500,000 | 1,000,000 |
Unrecognized stock-based compensation expense | 400,000 | ' | 400,000 | ' |
Unrecognized stock-based compensation expense recognition period | ' | ' | '3 years 9 months 29 days | ' |
Restricted Stock Award [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Percentage that can vest per year (in hundredths) | ' | ' | 100.00% | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Option outstanding, intrinsic value | 500,000 | ' | 500,000 | ' |
Share price that valuation assumptions are based on (in dollars per share) | $3.70 | ' | $3.70 | ' |
Stock price (in dollars per share) | $3.70 | ' | $3.70 | ' |
Stock-based compensation | 100,000 | 100,000 | 800,000 | 1,100,000 |
Unrecognized stock-based compensation expense | 300,000 | ' | 300,000 | ' |
Unrecognized stock-based compensation expense recognition period | ' | ' | '3 years 9 months 29 days | ' |
Weighted-average grant date fair value of restricted stock awards vested | 100,000 | 0 | 1,000,000 | 2,000,000 |
Restricted Stock and Performance Stock Awards [Abstract] | ' | ' | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in shares) | ' | ' | 285,435 | ' |
Restricted Stock and Performance Stock Awards, Shares Granted (in shares) | ' | ' | 51,704 | ' |
Restricted Stock and Performance Stock Awards, Forfeitures (in shares) | ' | ' | -13,364 | ' |
Restricted Stock Awarded Performance Stock Awards, Vested (in shares) | ' | ' | -190,335 | ' |
Restricted Stock and Performance Stock Awards, Ending Balance (in shares) | 133,440 | ' | 133,440 | ' |
Restricted Stock and Performance Stock Awards, weighted average grant date fair value [Abstract] | ' | ' | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in dollars per share) | ' | ' | $5.24 | ' |
Restricted Stock and Performance Stock Awards, Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $3.72 | ' |
Restricted Stock and Performance Stock Awards, Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $5.76 | ' |
Restricted Stock and Performance Stock Awards, Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $4.97 | ' |
Restricted Stock and Performance Stock Awards, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $5 | ' | $5 | ' |
Weighted-Average Remaining Contractual Life | ' | ' | '1 year 7 months 10 days | ' |
Restricted Stock Award [Member] | Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '1 year | ' |
Restricted Stock Award [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '4 years | ' |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Percentage that can vest per year (in hundredths) | ' | ' | 25.00% | ' |
Vesting period | ' | ' | '4 years | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Option outstanding, intrinsic value | 300,000 | ' | 300,000 | ' |
Unrecognized stock-based compensation expense | 300,000 | ' | 300,000 | ' |
Unrecognized stock-based compensation expense recognition period | ' | ' | '3 years 9 months 29 days | ' |
Restricted Stock and Performance Stock Awards [Abstract] | ' | ' | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in shares) | ' | ' | 28,123 | ' |
Restricted Stock and Performance Stock Awards, Shares Granted (in shares) | ' | ' | 81,060 | ' |
Restricted Stock and Performance Stock Awards, Forfeitures (in shares) | ' | ' | -12,689 | ' |
Restricted Stock Awarded Performance Stock Awards, Vested (in shares) | ' | ' | -9,555 | ' |
Restricted Stock and Performance Stock Awards, Ending Balance (in shares) | 86,939 | ' | 86,939 | ' |
Restricted Stock and Performance Stock Awards, weighted average grant date fair value [Abstract] | ' | ' | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in dollars per share) | ' | ' | $3.88 | ' |
Restricted Stock and Performance Stock Awards, Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $4.34 | ' |
Restricted Stock and Performance Stock Awards, Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $4.13 | ' |
Restricted Stock and Performance Stock Awards, Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $4.15 | ' |
Restricted Stock and Performance Stock Awards, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $4.24 | ' | $4.24 | ' |
Weighted-Average Remaining Contractual Life | ' | ' | '2 years 0 months 22 days | ' |
Performance Stock Awards [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' |
Stock Options, Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Unrecognized stock-based compensation expense | $0 | ' | $0 | ' |
Restricted Stock and Performance Stock Awards [Abstract] | ' | ' | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in shares) | ' | ' | 114,560 | ' |
Restricted Stock and Performance Stock Awards, Shares Granted (in shares) | ' | ' | 0 | ' |
Restricted Stock and Performance Stock Awards, Forfeitures (in shares) | ' | ' | -78,514 | ' |
Restricted Stock Awarded Performance Stock Awards, Vested (in shares) | ' | ' | 0 | ' |
Restricted Stock and Performance Stock Awards, Ending Balance (in shares) | 36,046 | ' | 36,046 | ' |
Restricted Stock and Performance Stock Awards, weighted average grant date fair value [Abstract] | ' | ' | ' | ' |
Restricted Stock and Performance Stock Awards, Beginning Balance (in dollars per share) | ' | ' | $4.41 | ' |
Restricted Stock and Performance Stock Awards, Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $0 | ' |
Restricted Stock and Performance Stock Awards, Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $4.41 | ' |
Restricted Stock and Performance Stock Awards, Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | ' | ' | $0 | ' |
Restricted Stock and Performance Stock Awards, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $4.41 | ' | $4.41 | ' |
Weighted-Average Remaining Contractual Life | ' | ' | '2 years 3 months | ' |
Net_Income_Loss_per_Share_Deta
Net Income (Loss) per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Numerator [Abstract] | ' | ' | ' | ' | ||||
Net income (loss) from continuing operations | $1,912 | ($1,803) | ($1,284) | ($2,190) | ||||
Denominator [Abstract] | ' | ' | ' | ' | ||||
Weighted-average shares outstanding (in shares) | 16,903,000 | 16,984,000 | 16,827,000 | 16,982,000 | ||||
Effect of unvested restricted stock awards considered participating securities (in shares) | 138,000 | 0 | 0 | 0 | ||||
Weighted-average shares outstanding - basic (in shares) | 17,041,000 | 16,984,000 | 16,827,000 | 16,982,000 | ||||
Effect of dilutive common stock options (in shares) | 0 | 0 | 0 | 0 | ||||
Effect of dilutive restricted stock units | 5,000 | 0 | 0 | 0 | ||||
Weighted-average shares outstanding - diluted (in shares) | 17,046,000 | 16,984,000 | 16,827,000 | 16,982,000 | ||||
Net income (loss) per share - basic (in dollars per share) | $0.11 | ($0.11) | ($0.08) | ($0.13) | ||||
Net income (loss) per share - diluted (in dollars per share) | $0.11 | ($0.11) | ($0.08) | ($0.13) | ||||
Cash dividends declared per share (in dollars per share) | $0 | [1] | $0 | [1] | $0 | [1] | $0.06 | [1] |
Stock Options and Restricted Stock Units [Member] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Stock options and restricted stock units excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive | 658,000 | 782,000 | 751,000 | 1,319,000 | ||||
[1] | The Company suspended quarterly dividend payments during the second quarter of 2013. |
Supplemental_Disclosures_of_Co2
Supplemental Disclosures of Consolidated Statements of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Non-cash financing and investing activities [Abstract] | ' | ' |
Unrealized loss on foreign currency exchange contracts | ($329) | ($927) |
Unrealized income (loss) on available-for-sale securities | $265 | ($254) |
Line_of_Credit_Details
Line of Credit (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Line of Credit [Abstract] | ' |
Line of credit facility, expiration date | 1-Jun-14 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Anthony F. Dombrowik [Member], USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Anthony F. Dombrowik [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Cash payouts to be made under separation agreements | $0.40 | ' |
Cash payments remained to be paid | ' | 0.4 |
Number of months under terms of agreement | '8 months | ' |
Vesting of stock options | $0.20 | ' |