Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 5 – Discontinued Operations

In determining whether a group of assets to be disposed of should be presented as a discontinued operation, management determines whether such assets comprise a component of the Company, which includes an assessment as to whether it has historic operations and cash flows that can be clearly distinguished. Management also determines whether the cash flows associated with the group of assets will be significantly eliminated from the ongoing operations of the Company as a result of the disposal transaction and whether the Company will have no significant continuing involvement in the operations of the disposed assets after the disposal transaction. If management believes these conditions exist, then the assets and liabilities and results of operations of the assets to be disposed, as well as any estimated gain or loss on the disposal transaction, are aggregated for presentation separately from the financial position and operating results of the Company’s continuing operations.

For those businesses for which management has committed to a plan of sale, the business is valued at the lower of its carrying amount or estimated fair value less costs to sell. If the carrying amount of the business exceeds its estimated fair value, an impairment loss is recognized. Estimated fair value is determined using management estimates and entity-specific assumptions. Management considers historical experience and all available information at the time such estimates are made; however, the fair value that is ultimately recognized upon sale of the related business may differ from the estimated fair value as reflected in the consolidated financial statements. Depreciation and amortization expense is not recorded on assets of a business to be sold once that business has been classified as held for sale.

Globetec

In 2012, the Company’s Board of Directors approved a plan of sale for its Globetec business. In 2013, the Company sold its interests in Globetec for nominal consideration and retained certain contingent assets and liabilities. In 2014, management determined that the contingent assets associated with Globetec were not recoverable and recorded additional losses on disposal of $9.6 million. As of December 31, 2014, there were no remaining contingent assets. As of December 31, 2013, $2.3 million of contingent assets were included within prepaid expenses and other current assets in the consolidated balance sheets, and $10.1 million of contingent assets were included within other long-term assets in the consolidated balance sheets. As of December 31, 2014 and 2013, $1.3 million and $1.2 million of contingent liabilities, respectively, were included within other current liabilities in the consolidated balance sheets. Revenue from discontinued operations for Globetec totaled $18.0 million and $18.8 million for the years ended 2013 and 2012, respectively. Net loss from discontinued operations for Globetec totaled $6.5 million, $6.5 million and $12.9 million for the years ended December 31, 2014, 2013 and 2012, respectively, of which $5.8 million, $4.4 million and $8.3 million represented losses on disposal and impairment charges, net of tax, for the years ended December 31, 2014, 2013 and 2012, respectively. The Company is not obligated to support and does not intend to support Globetec in the future.

DirectStar

In June 2012, the Company sold its equity interests in DirectStar for a net sale price of $98.9 million in cash. Revenue and net income from discontinued operations for DirectStar totaled $60.2 million and $3.7 million, respectively, for the year ended December 31, 2012.