DIVESTITURES AND DISCONTINUED OPERATIONS

Discontinued Operations

On May 16, 2012, the Company completed the sale of its Information Management line of business to NEC Corporation for $449.0 in cash. The Company recorded a gain of $102.0 pretax and $16.8, net of taxes, through June 30, 2012, subject to final net working capital adjustments. The sale of Information Management was a taxable transaction that resulted in $85.2 being recorded for the combined federal, state and foreign income tax obligation. The high effective tax rate is primarily due to a lower basis in net assets for tax purposes compared to their book basis. The gain on sale included the elimination of $201.7 of goodwill and intangible assets.

The results of the Information Management business have been classified as discontinued operations for all periods presented. Certain costs previously allocated to the Information Management segment that do not qualify for discontinued operations accounting treatment are now reported as costs from continuing operations. Through the close of this transaction, these costs were $2.8 and $8.8 for the three and six months ended June 30, 2012, respectively, and $5.9 and $11.5 for the three and six months ended June 30, 2011, respectively, and are reflected in Corporate and Other in Note 16. The Company is taking actions to reduce these costs and expects transition services revenue from services to be provided to the buyer subsequent to completion of the sale to offset a significant portion of these costs. During the second quarter of 2012, we earned $2.9 in revenue under these transition services agreements. While the transition services agreements vary in duration up to 24 months depending upon the type of service provided, our expectation is that we will substantially eliminate the underlying costs as the transition services are completed.

Also included in discontinued operations are tax benefits associated with changes in reserves for uncertain tax positions related to previously divested businesses. The results of the Information Management business included in discontinued operations, and tax impacts related to previously divested businesses, for the three and six months ended June 30, 2012 and 2011 are summarized as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Revenue	$	46.8		$	77.0	$	128.8		$	156.8
Income before tax - Information Management operations⁽¹⁾	11.1			11.7		23.7			24.0
Gain on disposition ⁽²⁾	106.9			—		102.0			—
Income before income taxes	118.0			11.7		125.7			24.0
Income tax expense:
(Benefit) expense related to Information Management operations and other previously divested businesses	(37.0		)	4.0		(32.5		)	9.3
Expense related to gain on disposition	86.7			—		85.2			—
Income from discontinued operations, net of tax	$	68.3		$	7.7	$	73.0		$	14.7


(1)	Excludes costs previously allocated to Information Management that did not meet the criteria for presentation within discontinued operations of $2.8 and $8.8 for the three and six months ended June 30, 2012, respectively, and $5.9 and $11.5 for the three and six months ended June 30, 2011, respectively.


(2)	Includes $13.7 and $18.6 of transaction costs related to the sale for the three and six months ended June 30, 2012, respectively.

The major classes of assets and liabilities included as part of the Information Management business and presented as held for sale were as follows:



	At June 30, 2012		At December 31, 2011
Assets:
Current assets	$	—	$	90.5
Property and equipment, net	—		21.5
Other assets	—		284.6
Total assets	$	—	$	396.6
Liabilities:
Current liabilities	—		64.8
Other liabilities	—		45.8
Total liabilities	$	—	$	110.6

Finance and Accounting outsourcing line of business (F&A)

In January 2011, the Company completed the sale of F&A for $10.0. The gain on the sale amounted to $7.0 pretax, recorded within Other income, net in the Consolidated Statements of Income, and $4.3 after tax in 2011. The gain on the sale included the elimination of $2.6 of goodwill and other intangible assets. The results of operations of F&A and the sale of F&A are not material to the Company’s results of operations or financial condition and, therefore, are not reflected as discontinued operations for the periods presented.