Divestiture

9 Months Ended

Aug. 31, 2012

Divestiture [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Divestiture

In the third quarter of fiscal 2012, we entered into a definitive purchase and sale agreement to divest our FuseSource product line to Red Hat, Inc. The divestiture of the FuseSource product line is in furtherance of the Plan. The sale closed in September 2012, subsequent to our fiscal third quarter end, for a total price of $21.3 million. As of the end of the fiscal third quarter of 2012, we met the requirements to classify the FuseSource product line as both held for sale and discontinued operations in the condensed consolidated financial statements.

The assets and liabilities being sold to Red Hat, Inc. are classified as assets and liabilities held for sale on the condensed consolidated balance sheet as of August 31, 2012 and are recorded at the lower of their carrying values or fair values less costs to sell. The major categories of the assets and liabilities held for sale are as follows (in thousands):

Assets:
Accounts receivable	$	2,875
Other current assets	100
Goodwill	3,317
Other long-term assets	439
Total assets held for sale	$	6,731
Liabilities:
Deferred revenue	$	5,265
Total liabilities held for sale	$	5,265

Revenues and direct expenses of the FuseSource product line have been reclassified as discontinued operations for all periods presented. The components included in discontinued operations on the condensed consolidated statements of income are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	August 31, 2012			August 31, 2011			August 31, 2012			August 31, 2011
Revenue	$	4,808		$	3,823		$	13,844		$	10,884
Loss before income taxes	(3,687		)	(769		)	(5,706		)	(1,600		)
Income tax benefit	1,549			240			2,268			557
Loss from discontinued operations, net	$	(2,138	)	$	(529	)	$	(3,438	)	$	(1,043	)