Note 11 – Subsequent Events

On October 31, 2014, the Company distributed all of its 31,384,920 shares of Covisint common stock as a pro rata dividend on shares of Compuware common stock, and on shares of Compuware common stock deliverable under restricted stock units relating to Compuware common stock (“the Distribution”).

Based on the number of Covisint shares outstanding owned by the Company and shares deliverable under RSUs as of October 20, 2014, the record date for the distribution, holders of Compuware common stock received 0.14025466 shares of Covisint common stock in the distribution with respect to each outstanding share of Compuware common stock they owned as of the close of business on the record date, and holders of RSUs received 0.14025466 shares of Covisint common stock in the distribution with respect to each share of Compuware common stock deliverable under the RSUs they held at the close of business on the record date.

Fractional shares of Covisint common stock were not distributed to Compuware shareholders or RSU holders. Instead, the fractional shares of Covisint common stock were aggregated and sold in the open market, with the net proceeds distributed pro rata in the form of cash payments to Compuware shareholders and RSU holders who would otherwise receive Covisint fractional shares.

In anticipation of the merger with Thoma Bravo, Compuware intends to treat the distribution as a taxable distribution of the Covisint common stock by Compuware for U.S. federal income tax purposes. Any corporate-level income tax incurred on the distribution if the acquisition by Thoma Bravo is completed will be paid by Compuware.

The distribution of shares of Covisint common stock was made in book entry form, and no physical share certificates of Covisint were issued. An information statement describing the distribution was mailed to Compuware stockholders. Compuware shareholders were not required to pay cash or other consideration for the shares of Covisint common stock distributed to them or surrender or exchange their shares of Compuware common stock to receive the distribution.

As a result of this distribution, the Company no longer owns any shares of Covisint common stock. The operating results of Covisint will be reflected in discontinued operations in the third quarter of fiscal year 2015.

As of September 30, 2014, the carrying value of the Covisint assets and liabilities included in our consolidated balance sheet were as follows (in thousands):

Cash and cash equivalents	$	44,168
Other current assets		26,607
Property and equipment, net		5,446
Capitalized software and other intangible assets, net		20,878
Goodwill		25,385
Other assets		5,142

Total assets	$	127,626

Current liabilities	$	25,754
Long-term liabilities		10,576

Total liabilities	$	36,330