Discontinued Operations

12 Months Ended

May 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On May 26, 2010, we completed the disposition of our DolEx and Europhil-branded money transfer businesses to an affiliate of Palladium Equity Partners, LLC for $85.0 million. Under the terms of the sale and purchase agreement, we received net proceeds of $60.2 million ($85.0 million less $24.8 million remaining in the business at closing to fund associated settlement obligations), subject to final working capital adjustments.

The operating results of the money transfer segment have been reported as discontinued operations as follows:

	Year Ended May 31,
	2010
	(in thousands)
Revenues	$	117,882
Operating income	7,724
Estimated loss on disposal	(24,567		)
Other expense	(229		)
Loss before income taxes	(17,072		)
Income tax benefit	13,171
Loss from discontinued operations, net of tax	$	(3,901	)

The loss on disposal included costs to sell of $1.5 million. The fiscal year 2010 income tax benefit included $15.7 million of tax benefits associated with the disposition. The impairment charge in fiscal year 2009 was not deductible for tax purposes. During fiscal year 2011, we paid Palladium $2.6 million in a settlement of working capital adjustments and recognized additional loss of $0.6 million for a total loss on disposal of $25.2 million.