PFSWEB, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued)
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Twelve Months
Ended
December 31, |
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2011 |
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2010 |
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| Product revenue, net |
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$ |
6,909 |
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$ |
69,172 |
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| Expenses |
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7,792 |
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70,327 |
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| Goodwill and intangible asset impairment |
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— |
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2,792 |
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| Loss before provision for income taxes |
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(883 |
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(3,947 |
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| Provision (benefit) for income taxes |
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(9 |
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28 |
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| Discontinued operations, net of income taxes |
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$ |
(892 |
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$ |
(3,975 |
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Summarized financial information in the accompanying consolidated balance sheets for the discontinued
eCOST operations is as follows (in thousands):
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December 31, |
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2010 |
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| Inventories, net |
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$ |
2,776 |
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| Identifiable intangibles |
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316 |
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| Goodwill |
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810 |
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| Assets of discontinued operations |
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$ |
3,902 |
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At December 31, 2010, the amount of allowance for slow moving inventory included in discontinued
operations was $0.2 million. At December 31, 2011 the Company had recorded approximately $0.5 million of accrued liabilities related to the discontinued operations.
The original eCOST acquisition resulted in a purchase price in excess of the fair value of net identifiable assets acquired and liabilities assumed. This excess purchase price was allocated to goodwill.
Goodwill, which is not deductible for tax purposes, is not amortized rather, it is subject to an annual impairment test, using a fair-value-based approach.
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