Discontinued Operation

9 Months Ended

Sep. 30, 2013

Discontinued Operation

Discontinued Operation

Note 4—Discontinued Operation

During 2009, the Company discontinued the operations of its MicroEdge subsidiary, which provided products and services to the not-for-profit business community, to concentrate on its core investment management business. Certain assets and obligations of the Company’s discontinued operation were excluded from the sale and are reflected on the Company’s balance sheets as current and noncurrent assets and liabilities of discontinued operation as of September 30, 2013 and December 31, 2012. These assets included deferred tax assets. Liabilities excluded from the sale included sales tax and other tax-related obligations and continuing lease obligations included as part of the restructuring noted below.

The Company continually evaluates the adequacy of the remaining liabilities related to this disposition. Although the Company believes that these estimates accurately reflect costs for its facility exit costs, actual results may differ, thereby requiring the Company to record additional provisions or reverse a portion of such provisions.

The following table sets forth an analysis of the components of the restructuring charges related to the Company’s discontinued operation and the payments and non-cash charges made against the accrual during the nine months ended September 30, 2013 (in thousands):

	Facility Exit
	Costs
Balance of restructuring accrual at December 31, 2012	$	4,030
Restructuring adjustments	(205		)
Cash payments	(444		)
Adjustment of prior restructuring costs	90
Balance of restructuring accrual at September 30, 2013	$	3,471

Of the remaining restructuring accrual of $3.5 million at September 30, 2013, $0.5 million is included in “Current liabilities of discontinued operation” in the accompanying condensed consolidated balance sheet. The facility exit costs will be paid over the remaining lease term through November 2018.

Net revenues and net (loss) income from the Company’s discontinued operation for the following periods were (in thousands):

	Three Months Ended September 30					Nine Months Ended September 30
	2013			2012		2013		2012
Net revenues	$	—		$	—	$	—	$	—
Net (loss) income from operation of discontinued operation (net of applicable taxes of $(16), $(13), $45 and $134, respectively)	$	(20	)	$	11	$	68	$	233

The following table sets forth the assets and liabilities of the MicroEdge discontinued operation included in the accompanying condensed consolidated balance sheets of the Company (in thousands):

	September 30		December 31
	2013		2012
Assets:
Prepaid rent	$	—	$	88
Total current assets of discontinued operation	$	—	$	88
Deferred taxes, long-term	$	1,609	$	1,609
Total noncurrent assets of discontinued operation	$	1,609	$	1,609
Liabilities:
Accrued expenses and taxes	$	625	$	262
Total current liabilities of discontinued operation	$	625	$	262
Accrued restructuring, long-term portion	$	2,928	$	3,804
Total noncurrent liabilities of discontinued operation	$	2,928	$	3,804