DIVESTITURES AND DISCONTINUED OPERATIONS

On May 16, 2012, the Company completed the sale of its Information Management line of business to NEC Corporation for $449.0 in cash. The Company recorded a gain of $99.8 pretax and $16.2, net of taxes in 2012. The sale of Information Management was a taxable transaction that resulted in $83.6 being recorded for the combined federal, state and foreign income tax obligations in 2012. The high effective tax rate is primarily due to a lower basis in net assets, including goodwill, for tax purposes compared to their book basis. The gain on sale included the elimination of $201.7 of goodwill and intangible assets. During the three and nine months ended September 30, 2013, the Company recorded an additional gain of $5.7 and $2.0, respectively, net of tax, as certain contingencies and tax positions were settled or adjusted.

The results of the Information Management business have been classified as discontinued operations for all periods presented. Certain costs previously allocated to the Information Management segment that do not qualify for discontinued operations accounting treatment are now reported as costs from continuing operations. These costs were $8.8 for the nine months ended September 30, 2012. The Company has taken action to reduce these costs and the transition services revenue from services provided to the buyer subsequent to completion of the sale substantially offset the remainder of these costs. During the three and nine months ended September 30, 2013, the Company earned $3.8 and $13.3, respectively, in revenue under these transition services agreements, compared to $6.1 and $9.0, respectively, for the same period in 2012. While the transition services agreements vary in duration up to 24 months from the date of sale depending upon the type of service provided, the Company expects to substantially eliminate the underlying costs as the transition services are completed.

The results of the Information Management business included in discontinued operations for the three and nine months ended September 30, 2013 and 2012 are summarized as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenue	$	—		$	—		$	—		$	128.8
Income before tax - Information Management operations⁽¹⁾	—			—			—			23.7
Gain (loss) on disposition	1.1			(3.5		)	(6.6		)	98.5
Income (loss) before income taxes	1.1			(3.5		)	(6.6		)	122.2
Income tax (benefit) expense:
Benefit related to Information Management operations	—			—			—			(32.5		)
(Benefit) expense related to gain on disposition	(4.6		)	(1.1		)	(8.6		)	84.1
Income (loss) from discontinued operations, net of tax	$	5.7		$	(2.4	)	$	2.0		$	70.6


(1)	Excludes costs previously allocated to Information Management that did not meet the criteria for presentation within discontinued operations of $8.8 for the nine months ended September 30, 2012.