Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations

11. Discontinued Operations

During the third quarter of 2012, as part of the Company’s review of strategic alternatives, the Company made the decision to sell its Careers-China business unit. The sale of the Careers-China business is expected to be completed during the next 12 months. Operating results for the Careers-China business, which have previously been included in the Company’s consolidated financial statements for the periods subsequent to October 2008 when the Company completed the aquisition of ChinaHR, have now been reclassified as business held for sale for all periods presented.

Summarized results of our business held for sale are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenue	$	8,636		$	10,469		$	31,452		$	28,885
Salaries and related		7,898			7,706			18,804			17,349
Office and general		4,416			4,572			12,976			11,372
Marketing and promotion		3,919			3,615			16,206			12,166
Restructuring and other special charges		60			—			219			—
Release of ChinaHR escrowed funds		—			(17,400	)		—			(17,400	)
Impairment of goodwill		216,221			—			216,221			—
Operating expenses		232,514			(1,507	)		264,426			23,487
Interest and other, net		(260	)		(57	)		(642	)		(4	)
Provision for (benefit from) income taxes		9,090			(1,360	)		9,090			(2,882	)
(Loss) income from business held for sale, net of tax	$	(233,228	)	$	13,279		$	(242,706	)	$	8,276

At September 30, 2012, there was approximately $20,000 of accumulated unrealized currency translation gain related to the Careers-China reporting unit. The amount of such accumulated unrealized currency translation adjustment will continue to fluctuate with the volatility in the currency markets. At such time of the completion of the sale of the Careers-China business, the then accumulated unrealized currency translation adjustment will be recorded into income or expense.

As disclosed in Note 10, Goodwill, the Company concluded that the Careers-China reporting unit’s goodwill was impaired in the third quarter of 2012. Further, as disclosed in Note 14, Income Taxes, the Company recorded a full valuation allowance of $9,090 associated with Careers-China deferred tax assets.

The major classes of assets and liabilities of the Careers-China business are presented in the following table. As of September 30, 2012, all assets and liabilities have been classified as current in the Consolidated Balance Sheets as the sale is expected to occur within the next twelve months.

	September 30, 2012
Accounts receivable net of doubtful accounts of $723	$	14,240
Prepaid and other		4,408
Property and equipment, net		10,571
Intangibles, net		5,126
Goodwill		45,958
Total assets of business held for sale	$	80,303
Accounts payable, accrued expenses and other current liabilities	$	11,799
Deferred revenue		20,082
Total liabilities of business held for sale	$	31,881