Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On June 7, 2016, we announced that our Board of Directors had approved the exploration of strategic alternatives for our Trillium Software business. The decision was largely based on the prioritization of investments in support of optimizing our clients' customer journey across an omni-channel delivery platform, and the determination that the Trillium Software business is likely to be a better strategic fit and more valuable asset to other parties. We believe that a sale of the Trillium Software will allow the company to better focus on our core Customer Interaction businesses and moving towards growth.

Following the announcement, we began to actively market Trillium Software and expect to sell the business within one year. A divestiture of the historical reporting segment will have a major effect on our operations and financial results. In accordance with ASC 205, Discontinued Operations (as updated by ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity) we recognized that we had met the criteria to classify Trillium Software as held for sale. As such, we have reclassified the financial results of Trillium Software as discontinued operations on the Consolidated Statements of Comprehensive Income for all periods presented. In addition, assets and liabilities of the Trillium Software reporting unit are presented as held for sale on the Consolidated Balance Sheets and its cash flows are presented as discontinued operations on the Consolidated Statements of Cash Flows.

The assets and liabilities held for sale at June 30, 2016 and December 31, 2015 were are follows:

	June 30,		December 31,
In thousands	2016		2015
ASSETS
Current assets
Cash and cash equivalents	$	3,206	$	1,049
Accounts receivable, net	8,066		11,397
Prepaid expenses	1,844		1,640
Property, plant and equipment, net	6,293		5,777
Goodwill	149,273		149,273
Other current assets	271		265
Total current assets held for sale	$	168,953	$	169,401
LIABILITIES
Current liabilities
Accounts payable	$	1,702	$	1,774
Accrued payroll and related expenses	709		924
Deferred revenue and customer advances	19,954		21,186
Other current liabilities	1,332		978
Total current liabilities held for sale	$	23,697	$	24,862

The financial results of discontinued operations for the three and six months ended June 30, 2016 and 2015 were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
In thousands	2016			2015		2016		2015
Revenue	$	12,711		$	13,170	$	23,871	$	25,028
Labor	5,202			5,005		10,503		10,516
Production and distribution	156			318		412		584
Advertising, selling, general and administrative	3,337			2,373		5,764		4,725
Depreciation and software amortization	589			456		1,101		913
Other, net	(385		)	835		178		838
Income from discontinued operations before income taxes	3,812			4,183		5,913		7,452
Income tax expense	1,163			1,665		1,920		2,916
Net income from discontinued operations	$	2,649		$	2,518	$	3,993	$	4,536