Discontinued Operation

12 Months Ended

Dec. 31, 2011

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operation

DISCONTINUED OPERATION

On September 25, 2009, in light of continuing operating losses in its Commercial business and in order to focus exclusively on managing its Direct and Retail consumer businesses, the Company committed to a plan for the complete divestiture of its Commercial business, which qualified for held-for-sale accounting treatment. The Commercial business is presented as a discontinued operation in the Company's condensed consolidated statements of operations for all periods. Following is a summary of the operating results of the Company's former Commercial business for the years ended December 31, 2011 and 2010 (in thousands):

	2011			2010
Revenue	$	86		$	12,593
Operating loss before income taxes	$	(2,011	)	$	(16,647	)
Disposal gain	946			3,723
Income tax expense	(16		)	(99		)
Total loss from discontinued operation	$	(1,081	)	$	(13,023	)

Disposal of Commercial business assets was completed in April 2011. Revenue for the year ended December 31, 2011 consisted of sales of small quantities of discontinued product and spare parts inventories that were not acquired by buyers of components of the Commercial business. The Company may incur additional expenses in future periods in connection with the settlement of contingencies arising from and directly related to the Commercial business prior to its disposal. For further information regarding contingencies related to the Company's former Commercial business, see Note 15, Commitments and Contingencies.

The following table presents gain or (loss) recognized on completed disposal transactions for the year ended December 31, 2011 (in thousands):

	Previously Estimated Disposal Loss as of 12/31/10			Gain (Loss) on Completed Disposals			Reduction of Previously Estimated Disposal Loss		Disposal Loss Impairment as of 12/31/11
Sales of real property	$	(666	)	$	(658	)	$	8	$	—
Adjustments of previously completed disposal transactions	—			938			938		—
Total	$	(666	)	$	280		$	946	$	—

The following table presents gain or (loss) recognized on completed disposal transactions for the year ended December 31, 2010 (in thousands):

	Previously-Estimated Disposal Loss as of 12/31/09			Gain (Loss) on Completed Disposals			Adjustments to Estimated Disposal Loss			Reduction (Increase) to Previously-Estimated Disposal Loss			Disposal Loss Impairment as of 12/31/10
Sale of commercial equipment manufacturing operation	$	(6,212	)	$	(3,967	)				$	2,245
Sale of commercial equipment manufacturing facility	(1,268		)	(706		)				562
Sale of European commercial business operations	(1,618		)	(1,109		)				509
Other completed disposals	(724		)	(459		)				265
Adjustments of previously completed disposal transactions	—			364						364
Remaining assets held-for-sale as of December 31, 2010	(444		)	—			$	(222	)	(222		)	$	(666	)
Total	$	(10,266	)	$	(5,877	)	$	(222	)	$	3,723		$	(666	)

As of December 31, 2010, assets held-for-sale of the commercial business discontinued operation and related disposal loss impairments were as follows (in thousands):

	Real Property
Carrying value, before impairment adjustment	$	958
Disposal loss impairment	(666		)
Assets of discontinued operation held-for-sale, net	$	292

The following table summarizes liabilities for exit costs related to discontinued operations, included in "Accrued liabilities" and "Other long-term liabilities" in the Company's consolidated balance sheets (in thousands):

	Severance and Benefits			Facilities and Other Leases			Total Liabilities
Balance as of January 1, 2010	$	321		$	1,454		$	1,775
Accruals	1,460			1,355			2,815
Payments	(1,305		)	(649		)	(1,954		)
Balance as of December 31, 2010	476			2,160			2,636
Accruals	175			217			392
Payments	(476		)	(448		)	(924		)
Balance as of December 31, 2011	$	175		$	1,929		$	2,104