Schedule of Discontinued Operations |
The following table summarizes the carrying amounts of the major classes of assets and liabilities of discontinued operations in the consolidated balance sheets as of December 31, 2018 and 2017. Amounts as of December 31, 2018 represent the accounts of WD Services operations in Saudi Arabia, which were not sold as part of the WD Services Sale.
| | | | | | | | | | December 31, | | 2018 | | 2017 | Cash and cash equivalents | $ | 2,321 |
| | $ | 42,512 |
| Accounts receivable, net of allowance of $3,460 and $500 in 2018 and 2017, respectively | 4,316 |
| | 48,718 |
| Other receivables | — |
| | 10 |
| Prepaid expenses and other | 414 |
| | 12,784 |
| Current assets of discontinued operations | $ | 7,051 |
| | $ | 104,024 |
| |
| |
| Property and equipment, net | $ | — |
| | $ | 12,705 |
| Goodwill | — |
| | 26,453 |
| Intangible assets, net | — |
| | 29,774 |
| Equity investments | — |
| | 213 |
| Other assets | — |
| | 51 |
| Deferred tax asset | — |
| | 4,632 |
| Noncurrent assets of discontinued operations | $ | — |
| | $ | 73,828 |
| |
| |
| Accounts payable | $ | 486 |
| | $ | 15,086 |
| Accrued expenses | 2,771 |
| | 32,195 |
| Deferred revenue | — |
| | 14,362 |
| Current liabilities of discontinued operations | $ | 3,257 |
| | $ | 61,643 |
| |
| |
| Other long-term liabilities | $ | — |
| | $ | 5,170 |
| Deferred tax liabilities | — |
| | 2,395 |
| Noncurrent liabilities of discontinued operations | $ | — |
| | $ | 7,565 |
|
The following table summarizes the results of operations classified as (loss) income from discontinued operations, net of tax, for the years ended December 31, 2018, 2017 and 2016. The HA Services segment column in the table below for the year ended December 31, 2016 reflects the financial results for HA Services from January 1, 2016 through October 19, 2016. | | | | | | | | | | | | | | Year ended December 31, 2018 | | Human Services Segment | | WD Services Segment | | Total Discontinued Operations | Service revenue, net | $ | — |
| | $ | 264,553 |
| | $ | 264,553 |
| | | | | | | Operating expenses: | | | | | | Service expense | — |
| | 248,824 |
| | 248,824 |
| General and administrative expense | (495 | ) | | 26,895 |
| | 26,400 |
| Asset impairment charge | — |
| | 9,203 |
| | 9,203 |
| Depreciation and amortization | — |
| | 11,864 |
| | 11,864 |
| Total operating expenses (benefits) | (495 | ) | | 296,786 |
| | 296,291 |
| Operating income (loss) | 495 |
| | (32,233 | ) | | (31,738 | ) | | | | | | | Other expenses: | | | | | | Interest expense, net | — |
| | 35 |
| | 35 |
| Gain on foreign currency transactions | — |
| | (388 | ) | | (388 | ) | Other gain | — |
| | (87 | ) | | (87 | ) | Income (loss) from discontinued operations before gain on disposition and income taxes | 495 |
| | (31,793 | ) | | (31,298 | ) | Loss on disposition | — |
| | (53,692 | ) | | (53,692 | ) | (Provision) benefit for income taxes | (545 | ) | | 48,482 |
| | 47,937 |
| (Loss) income from discontinued operations, net of tax | $ | (50 | ) | | $ | (37,003 | ) | | $ | (37,053 | ) |
The loss on disposition in the table above includes the reclassification of translation loss realized upon sale of subsidiaries of $29,973. The benefit for income taxes in the table above for the WD Services segment includes tax benefits on the WD Services Sale of $51,861 and income tax expense on WD Services operations of $3,379. | | | | | | | | | | | | | | Year ended December 31, 2017 | | Human Services Segment | | WD Services Segment | | Total Discontinued Operations | Service revenue, net | $ | — |
| | $ | 305,662 |
| | $ | 305,662 |
| | | | | | | Operating expenses: | | | | | | Service expense | — |
| | 265,417 |
| | 265,417 |
| General and administrative expense | 9,674 |
| | 28,845 |
| | 38,519 |
| Depreciation and amortization | — |
| | 12,851 |
| | 12,851 |
| Total operating expenses | 9,674 |
| | 307,113 |
| | 316,787 |
| Operating loss | (9,674 | ) | | (1,451 | ) | | (11,125 | ) | | | | | | | Other expenses: | | | | | | Interest expense, net | — |
| | 74 |
| | 74 |
| Equity in net loss of investees | — |
| | 1,391 |
| | 1,391 |
| Gain on sale of equity investment | — |
| | (12,377 | ) | | (12,377 | ) | Loss on foreign currency transactions | — |
| | 345 |
| | 345 |
| (Loss) income from discontinued operations before gain on disposition and income taxes | (9,674 | ) | | 9,116 |
| | (558 | ) | Benefit for income taxes | 3,691 |
| | (398 | ) | | 3,293 |
| (Loss) income from discontinued operations, net of tax | $ | (5,983 | ) | | $ | 8,718 |
| | $ | 2,735 |
|
| | | | | | | | | | | | | | | | | | Year ended December 31, 2016 | | Human Services Segment | | HA Services Segment | | WD Services Segment | | Total Discontinued Operations | Service revenue, net | $ | — |
| | $ | 166,090 |
| | $ | 344,403 |
| | $ | 510,493 |
| | | | | | | | | Operating expenses: | | | | | | | | Service expense | — |
| | 120,906 |
| | 320,147 |
| | 441,053 |
| General and administrative expense | 7,966 |
| | 2,148 |
| | 30,384 |
| | 40,498 |
| Asset impairment charge | — |
| | — |
| | 19,588 |
| | 19,588 |
| Depreciation and amortization | — |
| | 21,121 |
| | 13,823 |
| | 34,944 |
| Total operating expenses | 7,966 |
| | 144,175 |
| | 383,942 |
| | 536,083 |
| Operating (loss) income | (7,966 | ) | | 21,915 |
| | (39,539 | ) | | (25,590 | ) | | | | | | | | | Other expenses: | | | | | | | | Interest expense, net | — |
| | 9,929 |
| | 68 |
| | 9,997 |
| Equity in net loss of investees | — |
| | — |
| | 8,498 |
| | 8,498 |
| Write-off of deferred financing fees | — |
| | 2,302 |
| | — |
| | 2,302 |
| Gain on foreign currency transactions | — |
| | — |
| | (1,374 | ) | | (1,374 | ) | (Loss) income from discontinued operations before gain on disposition and income taxes | (7,966 | ) | | 9,684 |
| | (46,731 | ) | | (45,013 | ) | Gain on disposition | — |
| | 167,895 |
| | — |
| | 167,895 |
| Benefit (provision) for income taxes | 2,401 |
| | (63,254 | ) | | 936 |
| | (59,917 | ) | (Loss) income from discontinued operations, net of tax | $ | (5,565 | ) | | $ | 114,325 |
| | $ | (45,795 | ) | | $ | 62,965 |
|
The total loss on disposition, net of tax, related to the sale of WD Services subsidiaries during the year ended December 31, 2018 is calculated as follows:
| | | | | Total cash received, net of transaction costs and cash sold | $ | 12,780 |
| Total WD Services net asset value as of transaction date, net of cash sold | (36,499 | ) | Income tax benefit | 51,861 |
| Gain on sale before reclassification of currency translation, net of tax | 28,142 |
| Adjustment for reclassification of currency translation | (29,973 | ) | Loss on disposition, net of tax | $ | (1,831 | ) |
Assets and liabilities
The following table summarizes the carrying amounts of the major classes of assets and liabilities of discontinued operations in the consolidated balance sheets as of December 31, 2018 and 2017. Amounts as of December 31, 2018 represent the accounts of WD Services operations in Saudi Arabia, which were not sold as part of the WD Services Sale.
| | | | | | | | | | December 31, | | 2018 | | 2017 | Cash and cash equivalents | $ | 2,321 |
| | $ | 42,512 |
| Accounts receivable, net of allowance of $3,460 and $500 in 2018 and 2017, respectively | 4,316 |
| | 48,718 |
| Other receivables | — |
| | 10 |
| Prepaid expenses and other | 414 |
| | 12,784 |
| Current assets of discontinued operations | $ | 7,051 |
| | $ | 104,024 |
| |
| |
| Property and equipment, net | $ | — |
| | $ | 12,705 |
| Goodwill | — |
| | 26,453 |
| Intangible assets, net | — |
| | 29,774 |
| Equity investments | — |
| | 213 |
| Other assets | — |
| | 51 |
| Deferred tax asset | — |
| | 4,632 |
| Noncurrent assets of discontinued operations | $ | — |
| | $ | 73,828 |
| |
| |
| Accounts payable | $ | 486 |
| | $ | 15,086 |
| Accrued expenses | 2,771 |
| | 32,195 |
| Deferred revenue | — |
| | 14,362 |
| Current liabilities of discontinued operations | $ | 3,257 |
| | $ | 61,643 |
| |
| |
| Other long-term liabilities | $ | — |
| | $ | 5,170 |
| Deferred tax liabilities | — |
| | 2,395 |
| Noncurrent liabilities of discontinued operations | $ | — |
| | $ | 7,565 |
|
Cash Flow Information The following table presents depreciation, amortization, capital expenditures and significant operating noncash items of the discontinued operations for the years ended December 31, 2018, 2017 and 2016: | | | | | | | | | | | | | | For the year ended December 31, 2018 | | Human Services Segment | | WD Services Segment | | Total Discontinued Operations | | | | | | | Cash flows from discontinued operating activities: | | | | | | Depreciation | $ | — |
| | $ | 6,711 |
| | $ | 6,711 |
| Amortization | — |
| | 5,153 |
| | 5,153 |
| Asset impairment charge | — |
| | 9,203 |
| | 9,203 |
| Stock-based compensation | — |
| | 6 |
| | 6 |
| Deferred income taxes | 419 |
| | (74 | ) | | 345 |
| | | | | | | Cash flows from discontinued investing activities: | | | | | | Purchase of property and equipment | $ | — |
| | $ | 6,725 |
| | $ | 6,725 |
|
| | | | | | | | | | | | | | For the year ended December 31, 2017 | | Human Services Segment | | WD Services Segment | | Total Discontinued Operations | | | | | | | Cash flows from discontinued operating activities: | | | | | | Depreciation | $ | — |
| | $ | 7,825 |
| | $ | 7,825 |
| Amortization | — |
| | 5,026 |
| | 5,026 |
| Stock-based compensation | — |
| | 57 |
| | 57 |
| Deferred income taxes | (3,433 | ) | | (507 | ) | | (3,940 | ) | | | | | | | Cash flows from discontinued investing activities: | | | | | | Purchase of property and equipment | $ | — |
| | $ | 4,527 |
| | $ | 4,527 |
|
| | | | | | | | | | | | | | For the year ended December 31, 2016 | | HA Services Segment | | WD Services Segment | | Total Discontinued Operations | | | | | | | Cash flows from discontinued operating activities: | | | | | | Depreciation | $ | 3,661 |
| | $ | 8,138 |
| | $ | 11,799 |
| Amortization | 17,460 |
| | 5,685 |
| | 23,145 |
| Asset impairment charge | — |
| | 19,588 |
| | 19,588 |
| Stock-based compensation | (18 | ) | | (11 | ) | | (29 | ) | Deferred income taxes | 52,338 |
| | (6,638 | ) | | 45,700 |
| | | | | | | Cash flows from discontinued investing activities: | | | | | | Purchase of property and equipment | $ | 9,174 |
| | $ | 19,810 |
| | $ | 28,984 |
|
Summary financial information for Mission Providence on a standalone basis for the nine months ended September 30, 2017 and the year ended December 31, 2016 is as follows: | | | | | | | | | | Nine months ended September 30, 2017 | | Year ended December 31, 2016 | Revenue | $ | 30,125 |
| | $ | 36,546 |
| Operating loss | (1,765 | ) | | (9,664 | ) | Net loss | (1,934 | ) | | (8,843 | ) |
The total loss on disposition, net of tax, related to the sale of WD Services subsidiaries during the year ended December 31, 2018 is calculated as follows:
| | | | | Total cash received, net of transaction costs and cash sold | $ | 12,780 |
| Total WD Services net asset value as of transaction date, net of cash sold | (36,499 | ) | Income tax benefit | 51,861 |
| Gain on sale before reclassification of currency translation, net of tax | 28,142 |
| Adjustment for reclassification of currency translation | (29,973 | ) | Loss on disposition, net of tax | $ | (1,831 | ) |
|