Discontinued Operations

6 Months Ended

Mar. 31, 2014

Discontinued Operations

I. DISCONTINUED OPERATIONS

On January 15, 2014, we sold our wholly-owned subsidiary Transdyn to a global provider of electronic toll collection systems, headquartered in Vienna, Austria.  The purchase price from the sale of this subsidiary totaled $16.0 million, of which we received cash of $14.4 million.  The remaining $1.6 million was placed into an escrow account until April 2015, to be released subject to certain contingent obligations, and was recorded to other assets.  We received additional cash of $0.4 million after the final working capital adjustment was calculated in March 2014. We recorded a gain on this transaction of $8.6 million, net of tax, which has been included in income from discontinued operations for the three and six months ended March 31, 2014 in the accompanying condensed consolidated statements of operations.  Transdyn’s results were previously reflected in the Process Control Systems business segment.

We reclassified the assets and liabilities of Transdyn as held for sale within the accompanying condensed consolidated balance sheets as of September 30, 2013 and presented the results of these operations as income from discontinued operations, net of tax, for each of the accompanying condensed consolidated statements of operations.  

Summary comparative financial results of discontinued operations were as follows (in thousands):

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2014		2013		2014		2013
Revenues	$	1,557	$	7,874	$	13,923	$	14,957
Income from discontinued operations, net of tax of $131, $334, $633 and $478, respectively		54		616		1,041		881
Gain on sale of discontinued operations, net of tax of $5,218, $0, $5,218 and $0, respectively		8,563		—		8,563		—
Net income from discontinued operations, net of tax	$	8,617	$	616	$	9,604	$	881
Earnings per share information:
Basic	$	0.72	$	0.05	$	0.80	$	0.07
Diluted	$	0.71	$	0.05	$	0.80	$	0.07

The following table presents the assets and liabilities of Transdyn as of September 30, 2013 (in thousands):

	September 30, 2013
Current assets:
Cash and cash equivalents	$	337
Accounts receivable		7,346
Contracts in progress		7,201
Inventories, net		20
Prepaid expenses and other current assets		505
Current assets held for sale	$	15,409
Long-term assets:
Property, plant and equipment, net	$	93
Other assets		51
Long-term assets held for sale	$	144
Current liabilities:
Accounts payable	$	2,973
Accrued salaries, bonuses and commissions		1,675
Billings in excess of cost		11,867
Other accrued expenses and liabilities		1,333
Current liabilities held for sale	$	17,848
Long-term liabilities:
Long-term liabilities held for sale	$	204