Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Discontinued Operations

In 2008, the Company sold substantially all of the assets and liabilities of its Claims Evaluation Division ("CED") operating segment.  In connection with the sale of the CED, the Company was released as the primary obligor for certain lease obligations acquired but remains secondarily liable in the event the buyer defaults.  At December 31, 2011, the Company maintained a liability of $0.2 million for this lease obligation. In 2010, the Company reduced this reserve by $0.06 million and reported the corresponding gain in discontinued operations for the year ended December 31, 2010. The guarantee is provided for the term of the lease, which expires in July 2015. As of December 31, 2011, the maximum potential amount of future payments under the guarantee is $0.4 million.

In 2011, the Company recorded a gain of $0.06 million in discontinued operations representing the reversal of a liability for services provided to the CED. This liability is no longer deemed a liability of the Company or the CED.

In connection with the sale of Medicals Direct Group ("MDG") in 2007, the Company agreed to indemnify the purchaser for certain pre-closing tax liabilities. In 2009, the Company recorded an additional reserve of $0.04 million in discontinued operations, gain (loss) on sale of subsidiaries, resulting in a total liability for these pre-closing tax matters of $1.5 million. Subsequently in 2009, the Company reached a settlement agreement with Medicals Direct Holding Limited (“MD”) (successor-in-interest to the purchaser of MDG) whereby the Company and MD agreed to fully release and discharge each other from any and all claims known or unknown under the MDG Stock Purchase Agreement and the Tax Deed. In 2009, the Company paid MD the sum of $0.3 million and further released MD from the additional purchase price payments due the Company, totaling $1.2 million.  The $0.3 million payment is presented within cash used in operating activities of discontinued operations in the accompanying consolidated statement of cash flows for the year ended December 31, 2009.