DISCONTINUED OPERATIONS

On March 31, 2018, the Company completed the sale of its RTM Businesses in Belgium, Europe (excluding Belgium) and Asia Pacific in separate transactions to Value Plus NV, Morgan Philips Group S.A., and Apache Group Holdings Pty Limited, respectively (the "Sale Transaction"). The gross proceeds from the sale were $38,960. In addition, $17,626 of debt was assumed by the buyers.

The following is a reconciliation of the gross proceeds to the net proceeds from the Sales Transaction as presented in the statements of cash flows for the year ended December 31, 2018.



Gross proceeds	$	38,960
Add: purchase price adjustments	176
Less: cash and restricted cash sold	(9,547		)
Less: transaction costs	(1,797		)
Net cash proceeds as presented in the statements of cash flows	$	27,792

The Sale Transaction generated a pre-tax gain of $13,861 for the year ended December 31, 2018, which includes a benefit of $10,819 reclassification adjustment relating to the net foreign currency translation gains previously included in accumulated other comprehensive income. The pre-tax gain is subject to adjustment for various purchase price adjustments.

The RTM businesses met the criteria for discontinued operations set forth in ASC 205 on March 31, 2018 subsequent to approval of the sale by our stockholders. The Company reclassified its discontinued operations for all periods presented and has excluded the results of its discontinued operations from continuing operations and from segment results for all periods presented.

The carrying amounts of the classes of assets and liabilities from the RTM businesses included in discontinued operations were as follows:



	December 31, 2019		December 31, 2018
Prepaid and other current assets	$	—	$	941
Total current assets	—		941
Total assets	$	—	$	941

Accrued expenses and other current liabilities	$	—	$	115
Total current liabilities	—		115
Total liabilities	$	—	$	115

Reported results for the discontinued operations by period were as follows:



	Year Ended December 31,
	2019			2018
Revenue	$	—		$	108,463

Operating expenses:
Direct contracting costs and reimbursed expenses	—			69,800
Salaries and related	—			29,032
Office and general	—			7,441
Marketing and promotion	—			914
Depreciation and amortization	—			680
Business reorganization	—			50
Total operating expenses	—			107,917
Operating income	—			546
Non-operating income (expense):
Interest expense, net	—			(88		)
Other non-operating income	—			216
Income from discontinued operations before taxes and (loss) gain on sale	—			674
(Loss) gain from sale of discontinued operations	(113		)	13,861
(Loss) income from discontinued operations before income taxes	(113		)	14,535
Provision for income taxes	—			1,402
(Loss) income from discontinued operations	$	(113	)	$	13,133

Depreciation, capital expenditures, and significant operating and investment non cash items of the discontinued operations by period were as follows:



	Year Ended December 31, 2018
Depreciation and amortization	$	680
Stock-based compensation expense	$	233
Capital expenditures	$	284

RTM Revenue Recognition

The Company's RTM businesses delivered permanent recruitment, contracting, and talent management solutions to its clients. The contracts have a single performance obligation and we recognized revenue from these services over time in an amount that reflects the consideration expected to be entitled to in exchange for our services. We do not incur incremental costs to obtain these contracts. The costs to fulfill these contracts were expensed as incurred. See Note 2 for additional information on the Company's revenue recognition policies.

Permanent recruitment revenue. We recognize permanent placement revenue when employment candidates accept offers of permanent employment. We have a substantial history of estimating the financial impact of permanent placement candidates who do not remain with its clients through a guarantee period. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement services are charged to employment candidates.

Temporary contracting revenue. We recognize temporary contracting revenue over time in the amount to which the Company has a right to invoice, when the services are rendered by the Company’s temporary employees which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our temporary contracting contracts. The costs incurred to fulfill these contracts are expensed as incurred.

Talent management revenue. Talent management services generally contain a single performance obligation satisfied over time. Revenue is recognized over time as the performance obligation is satisfied, because the services provided do not have any alternative use to the Company, and contracts generally include language giving the Company an enforceable right to payment for services provided to date. We measure revenue using an output method. Cost incurred represents work performed and thereby best depicts the transfer of control to the customer.

Disaggregation of Revenue

The following table presents our disaggregated revenues from discontinued operations by revenue source.



	Year Ended December 31, 2018
	Permanent Recruitment		Contracting		Talent Management		Other		Total
Revenue	$	20,700	$	76,615	$	10,694	$	454	$	108,463