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Dispositions and Discontinued Operations
3 Months Ended
Mar. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Dispositions and Discontinued Operations

3.

DISPOSITIONS AND DISCONTINUED OPERATIONS

On August 24, 2018, we completed the disposition of our former Disputes, Forensics and Legal Technology segment and the transaction advisory services practice within our Financial Services Advisory and Compliance segment (collectively, “SaleCo”) to Ankura Consulting Group, LLC (“Ankura”) for total proceeds of $462.8 million net of working capital adjustments. The operations of SaleCo have been presented in accordance with ASC Topic 205 “Discontinued Operations” for all periods presented. All other operations are considered “continuing operations” and have been presented in three segments. See Note 5 – Segment Information.

In addition to the purchase agreement for SaleCo, we entered into a Transition Services Agreement pursuant to which we provide Ankura with certain services to enable Ankura to operate SaleCo (the “TSA Services”). The TSA Services include information technology, finance and accounting, human resources and other corporate support services. The TSA Services were provided to Ankura for a period of up to 6 months after the closing date for certain services, and certain services were extended at Ankura’s option through August 31, 2019. Income related to the TSA Services has been recorded in general and administrative expenses.

The amounts attributable to each category of discontinued operations were as follows (in thousands):

 

 

For the three months ended

 

 

March 31,

 

 

2019

 

 

2018

 

Revenues before reimbursements

$

 

-

 

 

$

 

82,434

 

Total revenues

$

 

-

 

 

$

 

86,452

 

Cost of services including reimbursable expenses

$

 

-

 

 

$

 

58,487

 

General and administrative expenses

$

 

-

 

 

$

 

7,283

 

Amortization and depreciation expense

$

 

-

 

 

$

 

1,953

 

Interest expense

$

 

-

 

 

$

 

488

 

Loss from disposition of discontinued operations

$

 

(672

)

 

$

 

-

 

Other expense, net

$

 

-

 

 

$

 

(29

)

(Loss) income from discontinued operations before income tax expense

$

 

(672

)

 

$

 

18,212

 

Income tax (benefit) expense from discontinued operations

$

 

(183

)

 

$

 

4,762

 

(Loss) income from discontinued operations, net of tax

$

 

(489

)

 

$

 

13,450

 

 

Amounts recorded to discontinued operations in the three months ended March 31, 2019 were due to settlements of certain working capital amounts, as well as changes in estimates of other transaction related contingencies. Certain contingencies remain unresolved and are subject to finalization and settlement, which may result in further adjustments to the gain (loss) on disposition.

We have allocated interest expense to discontinued operations based on the ratio of net assets of discontinued operations to the sum of total net assets plus consolidated debt.

Capital expenditures for the three months ended March 31, 2018 totaled $0.3 million.