Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Discontinued operations include PBMS, IMS and our Nordic furniture business, which were sold during 2013 and DIS, which was sold in 2014. Discontinued operations also include certain tax benefits related to our Capital Services business that was sold in 2006.

The following tables show selected financial information included in discontinued operations:

	Year Ended December 31, 2014
	PBMS			IMS		Nordic furniture business		DIS		Total
Revenue	$	—		$	—	$	—	$	19,858	$	19,858
(Loss) income from operations	$	(245	)	$	308	$	509	$	2,123	$	2,695
Gain on sale	2,778			1,994		—		24,733		29,505
Income before taxes	2,533			2,302		509		26,856		32,200
Tax (benefit) provision	(6,931		)	851		141		18,184		12,245
Net income	$	9,464		$	1,451	$	368	$	8,672	$	19,955
Capital Services, net of tax										13,794
Income from discontinued operations										$	33,749

	Year Ended December 31, 2013
	PBMS			IMS			Nordic furniture business			DIS		Total
Revenue	$	639,237		$	23,036		$	37,785		$	78,066	$	778,124
(Loss) income from operations	$	(118,017	)	$	(3,057	)	$	(4,037	)	$	19,223	$	(105,888	)
Gain (loss) on sale	5,126			(2,717		)	4,562			—		6,971
(Loss) income before taxes	(112,891		)	(5,774		)	525			19,223		(98,917		)
Tax provision (benefit)	41,384			(1,064		)	149			5,102		45,571
Net (loss) income	$	(154,275	)	$	(4,710	)	$	376		$	14,121	$	(144,488	)
Capital Services, net of tax												(289		)
Loss from discontinued operations												$	(144,777	)

	Year Ended December 31, 2012
	PBMS		IMS			Nordic furniture business		DIS		Total
Revenue	$	920,958	$	135,222		$	67,994	$	91,351	$	1,215,525
Income (loss) from operations	$	67,458	$	(40,084	)	$	2,839	$	22,542	$	52,755
Tax provision (benefit)	29,255		(15,003		)	794		5,965		21,011
Net income (loss)	$	38,203	$	(25,081	)	$	2,045	$	16,577	$	31,744
Capital Services, net of tax										34,312
Income from discontinued operations										$	66,056

The loss from discontinued operations in 2013 includes goodwill impairment charges of $101 million and asset impairment charges of $15 million. As a result of lower than expected operating performance of our PBMS North America business due to the loss of certain customer contracts, pricing pressure on contract renewals and a longer than originally anticipated sales cycle for some of our new growth areas, future cash flows were estimated to be lower than originally projected. Given these factors, a goodwill impairment test was performed and it was determined that the carrying value of goodwill exceeded its implied fair value. Accordingly, a goodwill impairment charge of $98 million was recognized to write-down the carrying value of goodwill to its estimated implied fair value. The fair value of PBMS North America was determined based on a combination of techniques, including external valuation data, the present value of future cash flows and applicable multiples of competitors. These inputs were classified as Level 3 in the fair value hierarchy. In 2013, we also recorded goodwill impairment charges of $2 million in connection with the sale of PBMS International and $1 million in connection with the sale of the Nordic furniture business.

During 2012, in connection with our decision to exit our IMS operations, we conducted a goodwill impairment review. We determined the fair value of IMS based on third-party written offers to purchase the business as well as applying an income approach with revised cash flow projections. The inputs used to determine the fair value of IMS were classified as Level 3 in the fair value hierarchy. Based on the results of our impairment test, a goodwill impairment charge of $18 million and asset impairment charges of $17 million were recorded to write-down the carrying value of goodwill, intangible assets and other assets to their respective implied fair values.