Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

DirectStar

In May 2012, Red Ventures exercised its option to acquire from the Company all of the issued and outstanding equity interests in DirectStar, which provides marketing and sales services on behalf of DIRECTV®. The sale of DirectStar to Red Ventures was consummated in June 2012 for a net sale price of $98.9 million in cash. DirectStar is presented as a discontinued operation in the Company’s condensed unaudited consolidated financial statements for all periods presented.

Results from discontinued operations associated with DirectStar for the period indicated were as follows (in millions):

	For the Three Months Ended March 31, 2012
Revenue	$	34.9
Income from operations before provision for income taxes	5.5
Loss on disposal before provision for income taxes	—
Provision for income taxes	$	(2.1	)
Net income from discontinued operations	$	3.4

Globetec

In September 2012, the Company's board of directors approved a plan of sale for its Globetec business. The decision to sell was made after evaluation of, among other things, short and long-term prospects of the Globetec operation. Accordingly, Globetec's projects and assets are reflected as assets and liabilities of discontinued operations in the condensed unaudited consolidated balance sheets for all periods presented, and Globetec's results of operations are presented as discontinued operations in the condensed unaudited consolidated statements of operations for all periods presented.

As of March 31, 2013, the carrying value of the subject net assets held-for-sale was $25.3 million. This amount is composed of total assets of $27.8 million and total liabilities of $2.5 million. During the year ended December 31, 2012, the Company recognized impairment charges of approximately $6.4 million pertaining to goodwill and intangible assets associated with the Globetec operation. In addition, the Company recognized additional estimated losses on disposal of approximately $6.3 million during the year ended December 31, 2012 in connection with its decision to sell the Globetec operation. This estimate was based on an evaluation of, among other things, the expected cash flows from the operation of the projects of the Globetec business, as well as the estimated net realizable value of the assets to be sold.

Management is currently in discussions with a potential buyer and is discussing a selling price which considers the Company's view of the estimated fair value of the net assets that have been classified as held-for-sale as of March 31, 2013. The Company's estimates are subject to change in the future. If the Company is not able to sell these projects and assets at the currently estimated selling price, the Company may incur additional losses in the future.

The following table, which may contain summation differences due to rounding, is a summary of assets and liabilities associated with the Globetec operation as of the dates as indicated (in millions):

	March 31, 2013		December 31, 2012
Assets:
Current assets	$	20.1	$	18.6
Property and equipment, net	2.0		2.0
Goodwill and other intangible assets, net	—		—
Other long-term assets	5.7		5.7
Assets of discontinued operations	$	27.8	$	26.2
Liabilities:
Accounts payable and accrued expenses	$	0.3	$	0.9
Other current liabilities	2.2		3.7
Liabilities of discontinued operations	$	2.5	$	4.6

See Note 8 - Accounts Receivable, Net of Allowance regarding long-term receivables of discontinued operations.

The following table, which may contain summation differences due to rounding, presents results from discontinued operations associated with Globetec for the periods indicated (in millions):

	For the Three Months Ended March 31,
	2013			2012
Revenue	$	6.3		$	5.4
Loss from operations before benefit from income taxes	(1.2		)	(1.5		)
Impairment of assets, disposal group, before benefit from income taxes	—			—
Benefit from income taxes	$	0.2		$	0.6
Net loss from discontinued operations	$	(0.9	)	$	(0.9	)

Included within the above results from discontinued operations for DirectStar and Globetec is $0.2 million of depreciation and amortization for the three month period ended March 31, 2012.