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Discontinued Operations
12 Months Ended
Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
On May 16, 2012, the Company completed the sale of substantially all of the assets and certain of the liabilities of its bankruptcy servicing subsidiary Ascension Capital Group, Inc. (“Ascension”), to a subsidiary of American InfoSource, L.P. (“AIS”). As part of the sale, the Company agreed to fund certain, agreed-upon operating losses in the first year of AIS’ ownership of the Ascension business, not to exceed $4.0 million. If the Ascension business becomes profitable under AIS’ ownership, the Company will be paid an earn-out equal to 40% of Ascension’s EBITDA, for the first five years commencing May 16, 2012. The Company received no proceeds from the sale and recognized the entire $4.0 million loss contingency during the second quarter of 2012.
During the year ended December 31, 2013, the Company recognized a loss of $2.2 million incurred to resolve legacy contractual claims against Ascension by a former customer. Additionally, during 2013, the Company accrued a loss of $0.7 million related to the Ascension lease which remains an obligation of the Company. In December 2014, the Company reached an agreement with the lessor to terminate the lease on a portion of the Ascension lease for a fee of approximately $0.6 million. Additionally, the Company recorded a charge of approximately $2.2 million which represented the Company’s best estimate of its total remaining lease obligation for Ascension. As a result, the Company recognized a total loss of $2.8 million related to the Ascension lease during the year ended December 31, 2014. Ascension’s operations are presented as discontinued operations in the Company’s consolidated statements of income and comprehensive income. The following table presents the revenue and components of discontinued operations (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Revenue
$

 
$

 
$
5,704

Loss from discontinued operations before income taxes
$
(2,750
)
 
$
(2,900
)
 
$
(11,942
)
Income tax benefit
1,138

 
1,160

 
4,678

Loss from discontinued operations
(1,612
)
 
(1,740
)
 
(7,264
)
Loss on sale of discontinued operations, before income taxes

 

 
(2,416
)
Income tax benefit

 

 
586

Loss on sale of discontinued operations

 

 
(1,830
)
Total loss from discontinued operations
$
(1,612
)
 
$
(1,740
)
 
$
(9,094
)