Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS

On June 3, 2010, the Company and its wholly owned subsidiary, United Feature Syndicate, Inc. (“UFS”) completed the sale of its character licensing business United Media Licensing (“UML”) to Iconix Brand Group. The sale also included certain intellectual property including the rights to syndicate the Peanuts and Dilbert comic strips. The aggregate cash sale price was $175 million resulting in a pre-tax gain of $162 million in the second quarter of 2010. The results of operations of UML and the gain on sale are presented as discontinued operations in our financial statements for all periods.

In connection with the sale, Iconix assumed UFS’s real estate lease, which expires in February 2016. We were not released from our obligations as guarantor of that lease by the lessor. Total remaining lease payments at June 30, 2011, are approximately $7.4 million. We believe that the likelihood of incurring future costs for this guarantee to be remote, and therefore we have not recorded a related liability.

Operating results of our discontinued operations were as follows:

	Three months ended			Six months ended
	June 30,			June 30,
(in thousands)	2010			2010
Operating revenues	$	13,244		$	27,979
Income from discontinued operations:
Gain on sale of Licensing, before tax	$	162,001		$	162,001
Income from Licensing, before tax		1,822			4,000
Income tax expense		(66,164	)		(67,157	)
Income from discontinued operations, net of tax	$	97,659		$	98,844