Discontinued Operations

12 Months Ended

Jan. 31, 2013

Discontinued Operations

(15)  Discontinued Operations

After weighing alternatives, during the second quarter of fiscal year 2013, the Company authorized the sale of the Energy Division and entered into negotiations for the sale of substantially all of the Energy Division assets to a third party. As of July 31, 2012, the Company considered the Energy Division as a discontinued operation and reflected it as such retrospectively in the consolidated financial statements. We recorded a loss of $32,589,000 as of July 31, 2012, based on the difference between its carrying value as a continuing operation and the expected selling price, less costs to sell. The tax benefit related to this loss was $12,541,000.

On October 1, 2012, the Company completed the sale of all of the exploration and production assets of its Energy Division for $15,000,000. No additional loss on disposal of the net assets was recognized. Pursuant to the sale agreement, the Company received $13,500,000 and expects to receive an additional $1,500,000 in October 2013 when certain conditions are met. The sale agreement provides for additional proceeds of $2,000,000 contingent on natural gas futures prices exceeding $5.25 per MMBTU for five months out of any given six consecutive months occurring during the 36 months following closing. The amount will be recorded as additional proceeds if the conditions are met.

The financial results of discontinued operations include an accrual of $3,900,000 recorded in the fourth quarter of fiscal 2013 associated with certain litigation claims, related to the Energy Division, which were retained by the Company. The financial results were as follows:

	Years Ended January 31,
(in thousands)	2013			2012			2011
Revenues	$	8,520		$	20,388		$	25,754
(Loss) income before income taxes		(41,254	)		(448	)		3,291
Income tax benefit (expense)		16,178			395			(1,028	)
Net (loss) income from discontinued operations		(25,076	)		(53	)		2,263