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Disposition of Business (Notes)
 6 Months Ended
Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Disposition of Businesses
On November 7, 2018, our Board of Directors approved the divestiture of our Imaging business. On November 11, 2018, we entered into a sale agreement (the “Agreement”) with Project Leopard AcquireCo Limited, a private limited company incorporated under the laws of England and Wales (and an affiliate of Kofax, Inc.) (the “Buyer”), relating to the sale of our Imaging business for a total cash consideration of approximately $400 million, subject to certain customary post-closing adjustments as set forth in the Agreement. Pursuant to the Agreement, we sold and transferred, and Buyer purchased and acquired, (a) the shares of certain subsidiaries through which we operate a portion of our Imaging business and (b) certain assets used in or related to the business; and the Buyer assumed certain liabilities related to such assets or the business, subject to certain exclusions and indemnities as set forth in the Agreement.
On February 1, 2019, we completed the sale of our Imaging business and received approximately $404.0 million in cash, after estimated transaction expenses, and subject to post-closing finalization of the adjustments set forth in the Agreement. As a result, we recorded a gain of approximately $102.4 million, which is included within Net income from discontinued operations. There are a number of working capital and other adjustments under the Agreement and related ancillary agreements. We do not believe that post-closing working capital adjustments under the Agreement, if any, will have a material impact on our results of operations.
For all periods presented, Imaging's results of operations have been included within discontinued operations and its assets and liabilities within held for sale in our condensed consolidated financial statements.

The following table summarizes the results of the discontinued operations (dollars in thousands):
Disposition of Businesses
On November 7, 2018, our Board of Directors approved the divestiture of our Imaging business. On November 11, 2018, we entered into a sale agreement (the “Agreement”) with Project Leopard AcquireCo Limited, a private limited company incorporated under the laws of England and Wales (and an affiliate of Kofax, Inc.) (the “Buyer”), relating to the sale of our Imaging business for a total cash consideration of approximately $400 million, subject to certain customary post-closing adjustments as set forth in the Agreement. Pursuant to the Agreement, we sold and transferred, and Buyer purchased and acquired, (a) the shares of certain subsidiaries through which we operate a portion of our Imaging business and (b) certain assets used in or related to the business; and the Buyer assumed certain liabilities related to such assets or the business, subject to certain exclusions and indemnities as set forth in the Agreement.
On February 1, 2019, we completed the sale of our Imaging business and received approximately $404.0 million in cash, after estimated transaction expenses, and subject to post-closing finalization of the adjustments set forth in the Agreement. As a result, we recorded a gain of approximately $102.4 million, which is included within Net income from discontinued operations. There are a number of working capital and other adjustments under the Agreement and related ancillary agreements. We do not believe that post-closing working capital adjustments under the Agreement, if any, will have a material impact on our results of operations.
For all periods presented, Imaging's results of operations have been included within discontinued operations and its assets and liabilities within held for sale in our condensed consolidated financial statements.

The following table summarizes the results of the discontinued operations (dollars in thousands):
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2019
 
2018
 
2019
 
2018
 
(ASC 606)
 
(ASC 605)
 
(ASC 606)
 
(ASC 605)
Major line items constituting net income of Imaging:
 
 
 
 
 
 
 
Revenue (a)
$
15,435

 
$
48,031

 
$
67,430

 
$
102,452

Cost of revenue
4,942

 
11,968

 
16,946

 
24,924

Research and development
2,041

 
7,487

 
7,557

 
14,767

Sales and marketing (a)
10,243

 
19,330

 
28,433

 
40,730

General and administrative
766

 
1,105

 
1,997

 
2,224

Amortization of intangible assets
1,305

 
4,273

 
5,219

 
8,496

Acquisition-related costs, net
—

 
—

 
(386
)
 
—

Restructuring and other charges, net
4,791

 
67

 
13,251

 
1,299

Other
—

 
162

 
—

 
162

(Loss) income from discontinued operations before income taxes (a)
(8,653
)
 
3,639

 
(5,587
)
 
9,850

(Benefit) provision for income taxes
(4,363
)
 
551

 
(2,688
)
 
999

Gain on disposition
102,371

 
—

 
102,371

 
—

Net income from discontinued operations
$
98,081

 
$
3,088

 
$
99,472

 
$
8,851

 
 
 
 
 
 
 
 
Supplemental information:
 
 
 
 
 
 
 
Depreciation
$
97

 
$
333

 
$
391

 
$
750

Amortization
$
1,643

 
$
5,995

 
$
6,569

 
$
12,060

Stock compensation
$
5,001

 
$
2,007

 
$
7,103

 
$
3,768


Capital expenditures for all periods presented were de minimis.
(a) As more fully described in Note 2, as a result of the adoption of ASC 606 using the modified retrospective approach, revenue for the three and six months ended March 31, 2019 reflects an increase of $0.8 million and $2.4 million, respectively, due to the upfront recognition of term licenses and the re-allocation of contract consideration to performance obligations based upon standalone selling prices; sales and marketing expense for the three and six months ended March 31, 2019 reflects a decrease of $0.1 million and $1.4 million, respectively, due to the capitalization and amortization of commission expense; and the provision for income taxes for the three and six months ended March 31, 2019 reflects an increase in tax benefit of $2.7 million and $1.6 million, respectively, related to the tax effect of the ASC 606 adjustments.
The following table summarizes the assets and liabilities included within discontinued operations (dollars in thousands):
 
September 30,
2018
 
(ASC 605)
Major classes of Imaging assets:
 
Accounts receivable, net
$
30,959

Prepaid expenses and other current assets
3,443

Land, building and equipment, net
2,442

Goodwill
257,352

Intangible assets, net
99,507

Other assets
196

   Total assets classified as held for sale
$
393,899

 
 
Major classes of Imaging liabilities:
 
Accounts payable
$
3,604

Accrued expenses and other current liabilities
12,304

Deferred revenue
107,965

Other liabilities
2,658

   Total liabilities classified as held for sale
$
126,531

Additionally, on November 19, 2018, we announced our intent to spin off our Automotive business into an independent publicly traded company through a pro rata distribution to our common stock holders. Completion of the proposed spin-off is subject to certain conditions, including final approval by our Board of Directors. We intend to complete the separation of the business by the beginning of fiscal year 2020.