DECONSOLIDATION OF A SUBSIDIARY

9 Months Ended

Sep. 30, 2011

DECONSOLIDATION OF A SUBSIDIARY [Abstract]

DECONSOLIDATION OF A SUBSIDIARY

(14)       DECONSOLIDATION OF A SUBSIDIARY

On December 22, 2008, Newgen Results Corporation (“Newgen”), a wholly-owned subsidiary of the Company, filed a voluntary petition for liquidation under Chapter 7 in the United States Bankruptcy Court for the District of Delaware. The consolidation of a majority-owned subsidiary is precluded where control does not rest with the majority owners and under legal reorganization or bankruptcy control rests with the Bankruptcy Court. Accordingly, the Company deconsolidated Newgen as of December 22, 2008.

On September 9, 2010, Newgen settled a legal claim for $3.6 million that was paid for by the Company on behalf of Newgen. As a result of the legal settlement, the Company recognized a $5.9 million gain in Other income (expense), net and a $2.3 million expense in Provision for income taxes during the year 2010.

As of September 30, 2011, the Company's negative investment in Newgen was $0.1 million as presented in the accompanying Consolidated Balance Sheets.