Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations

Discontinued Operations

3.             Discontinued Operations

In 2011, we disclosed that we had incurred costs associated with the closure of our international operations in Germany and the Netherlands. On July 1, 2011, we sold our operation in the United Kingdom for one euro. We recorded a charge of $2.2 million in the second quarter of 2011 to adjust assets and liabilities to their net realizable value for this operation. Gross assets were $4.3 million and gross liabilities were $2.1 million prior to the charge taken.

In accordance with ASC 205-20, the closure and sale of these international operations have been accounted for as discontinued operations. Accordingly, the results of the international operations of our Workforce Services reportable segment for all periods reported, loss on sale and exit costs have been classified as discontinued operations, net of income taxes, in the accompanying consolidated statements of operations.

In connection with the closures of the Netherlands and Germany operations, we recorded charges of $1.5 million in the fourth quarter of 2010 and $1.4 million in the first quarter of 2011. These charges included exit costs for severance and lease obligations, as well as charges for vendor and customer claims. These costs were paid during 2011.

There were no additional charges during 2013 and 2012 related to the closure and sale activities noted above.  Liabilities for vendor and customer claims associated with the Netherlands and Germany closures were $0.6 million and $0.7 million as of December 31, 2013 and December 31, 2012, respectively.

Summarized financial information for the discontinued operations is set forth below:

	2011
Revenues	$	4,465
Cost of services	5,688
Gross loss	(1,223		)
Operational general and administrative expense	5,010
Goodwill impairment charge	—
Other expense	2,198
Interest expense, net	173
Loss from discontinued operations, before income taxes	(8,604		)
Income tax benefit (1)	19,760
Income from discontinued operations, net of tax	$	11,156

(1) The twelve months ended December 31, 2011 include U.S. tax benefits of $19.8 million attributed to the discontinued international operations. During the third quarter, a U.S. tax election was made which changed the tax status and triggered the recognition of tax basis associated with international operations. The 2011 tax benefit related to this election is $18.3 million.