Assets and Liabilities Held for Sale (Notes)

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

Assets and Liabilities Held for Sale

During the second quarter of 2019, the Company entered into a share purchase agreement with Visa International Service Association (the “Purchaser”), pursuant to which the Purchaser agreed to acquire all of the outstanding shares of the Company’s subsidiary, Smart Card Software Limited, which comprises the Company’s Payments and Ticketing businesses. The decision to sell these businesses reflects the Company’s ongoing review of its business to focus on products and offerings that are core to its semiconductor business.

The sale of the legal entities comprising the Company’s Payments and Ticketing businesses was completed in October 2019. The gross proceeds from the sale amounted to approximately $83.6 million, which included the selling price of $75.0 million and approximately $8.6 million in net working capital adjustments finalized in October 2019, offset by approximately $3.7 million in transaction costs. The Company measured these businesses at the lower of their carrying value or fair value less any costs to sell, and subsequently recognized a cumulative impairment of approximately $15.1 million during the nine months ended September 30, 2019.

The operating results of these businesses do not qualify for reporting as discontinued operations. The reported results and financial position of the businesses do not necessarily reflect the total value of the businesses that the Company expects to realize upon their sale.

The following table presents information related to the assets and liabilities of the businesses that were classified as held for sale as of September 30, 2019:

(In thousands)	September 30, 2019
Assets
Cash and cash equivalents	$	6,772
Accounts receivable	4,550
Unbilled receivables	1,172
Prepaids and other current assets	1,997
Intangible assets, net	19,284
Goodwill	52,455
Property, plant and equipment, net	1,057
Operating lease right-of-use assets	1,196
Other assets	185
Total assets held for sale	$	88,668
Liabilities
Accounts payable	$	646
Accrued salaries and benefits	1,623
Deferred revenue	4,655
Operating lease liabilities	1,177
Other liabilities	6,519
Total liabilities held for sale	$	14,620
Total net assets held for sale	$	74,048
Total net assets held for sale	$	74,048
Foreign currency translation adjustment related to Payments and Ticketing businesses	12,418
Total net assets including foreign currency translation adjustment	86,466
Fair value less costs to sell	(71,329		)
Impairment of assets held for sale	$	15,137