Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Summary of Assets, Liabilities and Results of Operations from Discontinued Operations

The following is a summary of assets and liabilities associated with the DirectStar Business as of the dates as indicated (in millions):

	May 31, 2012		December 31, 2011
Assets:
Current assets	$	12.0	$	9.8
Property and equipment, net	1.2		1.4
Goodwill and other intangible assets, net	104.0		101.2
Assets of discontinued operations	$	117.2	$	112.4
Liabilities:
Accounts payable and accrued expenses	$	10.6	$	9.6
Other current liabilities, including accrued earn-outs	7.4		10.6
Liabilities of discontinued operations	$	18.0	$	20.2

Results from discontinued operations associated with the DirectStar Business for the periods indicated were as follows (in millions):

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2012		2011			2012			2011
Revenue	$	—	$	41.1		$	60.2		$	114.3
Income from operations before provision for income taxes	—		3.4			6.2			17.4
Loss on disposal before provision for income taxes	—		—			(0.2		)	—
Provision for income taxes	$	—	$	(1.3	)	$	(2.3	)	$	(6.6	)
Net income from discontinued operations	$	—	$	2.1		$	3.7		$	10.8

Globetec

In September 2012, the Company's board of directors voted to approve a plan of sale for substantially all of the projects and assets of Globetec. The decision to sell was made after evaluation of, among other things, short and long-term prospects of the Globetec operation. Accordingly, Globetec's projects and assets are reflected as assets and liabilities of discontinued operations in the condensed unaudited consolidated balance sheets for all periods presented, and Globetec's results of operations are presented as discontinued operations in the condensed unaudited statements of operations for all periods presented.

As of September 30, 2012, the carrying value of the subject net assets held-for-sale was $20.6 million. This amount comprises total assets of $25.9 million and total liabilities of $5.3 million. For the three month period ended September 30, 2012, the Company recognized impairment charges of approximately $6.4 million pertaining to goodwill and other intangible assets associated with the Globetec operation. In addition, the Company recognized impairment charges of approximately $6.3 million pertaining to other assets of the Globetec operation, primarily composed of accounts receivable, work in process and other current assets, in connection with its decision to sell substantially all related projects and assets of the Globetec operation. This estimate was based on an evaluation of, among other things, the expected cash flows from the operation of these projects, as well as the estimated net realizable value of the assets to be sold, in light of the Company's plans pertaining to the future operations of Globetec and its decision to sell the related assets.

Management is currently in discussions with at least one potential buyer and is discussing a selling price which considers the Company's view of the estimated fair value of the projects and net assets that have been classified as held-for-sale as of September 30, 2012. The Company's estimates are subject to change in the future. If the Company is not able to sell these projects and assets at the currently estimated selling price, the Company may incur additional impairment charges in the future.

The following is a summary of assets and liabilities associated with the Globetec operation as of the dates as indicated (in millions):

	September 30, 2012		December 31, 2011
Assets:
Current assets	$	16.7	$	20.8
Property and equipment, net	2.0		2.2
Goodwill and other intangible assets, net	—		6.4
Other long-term assets	7.2		10.5
Assets of discontinued operations	$	25.9	$	39.9
Liabilities:
Accounts payable and accrued expenses	$	0.7	$	6.1
Other current liabilities	4.6		3.0
Long-term liabilities	—		—
Liabilities of discontinued operations	$	5.3	$	9.1

Results from discontinued operations associated with Globetec for the periods indicated were as follows (in millions):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
Revenue	$	4.8		$	8.0		$	13.5		$	20.8
Loss from operations before benefit from income taxes	(2.6		)	(0.8		)	(5.8		)	(5.2		)
Impairment of assets, disposal group, before benefit from income taxes	(12.7		)	—			(12.7		)	—
Benefit from (provision for) income taxes	$	6.0		$	(0.3	)	$	6.9		$	1.3
Net loss from discontinued operations	$	(9.3	)	$	(1.1	)	$	(11.6	)	$	(3.9	)