Assets and Liabilities Held for Sale

9 Months Ended

Jul. 31, 2016

Assets Held-for-sale

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Assets and Liabilities Held for Sale

Assets and Liabilities Held for Sale

In October 2015, the Company's Board of Directors (the "Board") approved a plan to sell the Company’s information technology infrastructure services business (“Maintech”) and staffing services business in Uruguay (“Lakyfor, S.A.”).

Maintech met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2015. The potential disposal of Maintech did not represent a strategic shift that will have a major effect on the Company’s operations and financial results and is, therefore, not classified as discontinued operations in accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), (“ASU 2014-08”). As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations exceeded the carrying value of the net assets and no impairment charge was recorded. The timeline to complete a transaction has extended beyond the third quarter of fiscal 2016.

Lakyfor, S.A. met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2015.  The disposal of Lakyfor, S.A. did not represent a strategic shift that would have a major effect on the Company’s operations and financial results and was, therefore, not classified as discontinued operations in accordance with ASU 2014-08. As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations was significantly lower than the carrying value of the net assets and an impairment charge of $0.7 million was recorded in the fourth quarter of fiscal 2015. The sale occurred in December 2015 for nominal proceeds and the Company recognized a loss on disposal of $0.1 million from the sale transaction in the first quarter of fiscal 2016.

The following table reconciles the major classes of assets and liabilities classified as held for sale as part of continuing operations in the Condensed Consolidated Balance Sheets (in thousands):

	July 31, 2016		November 1, 2015
Assets included as part of continuing operations
Cash and cash equivalents	$	825	$	1,537
Trade accounts receivable, net	14,591		15,671
Recoverable income taxes	54		165
Prepaid insurance and other assets	3,573		4,886
Property, equipment and software, net	142		189
Purchased intangible assets	495		495
Total major classes of assets as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	19,680	$	22,943
Liabilities included as part of continuing operations
Accrued compensation	$	2,439	$	3,509
Accounts payable	684		1,387
Accrued taxes other than income taxes	775		1,165
Accrued insurance and other	586		523
Deferred revenue	1,087		761
Total major classes of liabilities as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	5,571	$	7,345

⁽¹⁾ The Balance Sheet as of July 31, 2016 only includes Maintech.