Discontinued Operations and Assets Held for Sale

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Assets Held for Sale [Abstract]

Discontinued Operations and Assets Held for Sale

Note 3 — Discontinued Operations and Assets Held for Sale

During the quarter ending September 30, 2015, the Company performed a strategic analysis of its current product and business unit offerings and as a result, entered into an asset purchase agreement to sell substantially all of the assets of its hotel/spa technology business operated under PAR Springer-Miller Systems, Inc. (“PSMS”) to affiliates of Constellation Software Inc. on November 4, 2015.

The main classes of assets and liabilities associated with the discontinued operation that are held for sale is as follows (in thousands):

	September 30, 2015		December 31, 2014
Assets
Cash	$	300	$	300
Accounts receivable - net		2,640		1,771
Inventories		113		-
Other current assets		425		574
Property, plant and equipment - net		815		986
Goodwill		4,286		6,116
Intangible assets - net		12,118		12,372
Assets classified as held for sale	$	20,697	$	22,119
Liabilities
Accounts Payable	$	237	$	417
Accrued salaries and benefits		432		703
Accrued expenses		716		87
Customer Deposits		1,101		1,103
Deferred service revenue		3,770		2,307
Liabilities associated with assets held for sale	$	6,256	$	4,617

Summarized financial information for the Company’s discontinued operations is as follows (in thousands):

Operations	For the three months ended September 30,						For the nine months ended September 30,
	2015			2014			2015			2014
Total revenues	$	4,267		$	3,670		$	13,037		$	11,655
Loss from discontinued operations before income taxes	$	(3,796	)	$	(1,496	)	$	(6,505	)	$	(4,143	)
Benefit from income taxes		1,010			719			2,000			1,414
Loss from discontinued operations, net of taxes	$	(2,786	)	$	(777	)	$	(4,505	)	$	(2,729	)

As a result of the strategic shift, the Company measured the net assets of the disposal group at fair value and as a result recorded an impairment charge of $1.8 million.  The charge was based on the remeasurement of the related net assets to the lower of its carrying amount and its fair value less costs to sell.  The charge has been recognized in the loss from discontinued operations, net of applicable taxes in the consolidated statements of operations.  The final gain or loss amount on the sale is subject to final working capital and other customary adjustments.