Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

3.    Discontinued Operations

On September 2, 2010, the Company completed the sale of its LC business to BP Biofuels North America LLC (“BP”) pursuant to an asset purchase agreement. The transaction resulted in net cash proceeds to the Company of $96.0 million.

The consolidated financial statements for the year ended December 31, 2010 includes the accounts of the Company and its previously jointly owned subsidiary, Galaxy, which was determined to be variable interest entities. As a result, the Company’s consolidated statement of comprehensive income includes a line item “Loss attributed to noncontrolling interests in consolidated entities— discontinued operations” which reflects BP’s share of Galaxy losses for the year ended December 31, 2010. Upon the completion of the sale of the LC business, BP became the sole investor in both Galaxy. As a result, all results for Galaxy are reflected separately as discontinued operations on the Company’s consolidated financial statements.

The results of operations from discontinued operations for the three years ended December 31, 2012 are set forth below (in thousands):

	Year Ended December 31,
	2012			2011			2010
Revenue:
Grant	$	0		$	0		$	7,487
Collaborative		0			0			185
Total revenue		0			0			7,672
Operating expenses:
Research and development		0			(13	)		38,060
Selling, general and administrative		56			125			6,952
Total operating expenses		56			112			45,012
Loss from discontinued operations		(56	)		(112	)		(37,340	)
Gain on sale of LC Business		0			0			55,904
Income tax provision		0			0			(9,748	)
Net (loss) income from discontinued operations	$	(56	)	$	(112	)	$	8,816

As more fully described in Note 10, $5.0 million of the purchase price was placed in escrow to cover the Company’s indemnification obligations for potential liabilities and breaches of representations and warranties made by the Company in the asset purchase agreement. The escrow agent disbursed $2.5 million to the Company during the first quarter 2012 and the remaining $2.5 million will remain in escrow pending resolution of the UFRF claim against BP. The remaining $2.5 million in escrow is reflected as restricted cash within current assets on the Company’s consolidated balance sheet as of December 31, 2012.