DISCONTINUED OPERATIONS

12 Months Ended

Mar. 31, 2011

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

2.     DISCONTINUED OPERATIONS

In February 2010, we completed the sale of our Jack of all Games third-party distribution business, which primarily distributed third-party interactive entertainment software, hardware and accessories in North America, for approximately $44,000, including $37,250 in cash, subject to purchase price adjustments, and up to an additional $6,750, subject to the achievement of certain items, which were not met. In April 2011, we settled on the purchase adjustments and as a result the purchase price was lowered by $1,475. Consequently, the net purchase price after the settlement was $35,775. The sale has allowed us to focus our resources on our publishing operations. For the fiscal years ended March 31, 2011 and 2010, we recorded a loss on the sale of $570 and $447, respectively. The financial results of our distribution business have been classified as discontinued operations in our Consolidated Statements of Operations for all of the periods presented. The assets and liabilities of this business are reflected as assets and liabilities of discontinued operations in the Consolidated Balance Sheets for all periods presented.

The following is a summary of the results of the discontinued operations:

	Fiscal Year Ended March 31,						Five Months Ended March 31,			Fiscal Year Ended October 31,
	2011			2010			2010			2009			2008
				(Unaudited)
Net revenue	$	—		$	254,447		$	131,937		$	267,431		$	306,424
Income (loss) before income taxes	$	(4,416	)	$	(16,484	)	$	(2,216	)	$	(9,983	)	$	4,388
Loss on sale		570			447			447			—			—
Provision (benefit) for income taxes		360			(1,996	)		(413	)		34			1,775
Net income (loss)	$	(5,346	)	$	(14,935	)	$	(2,250	)	$	(10,017	)	$	2,613

The results for the fiscal year ended March 31, 2011 include an expense of $5,464 related to a liability for a lease assumption without economic benefit less estimates of sublease income. The lease matures on September 30, 2014.

The following is a summary of the assets and liabilities of discontinued operations:

		March 31,
						October 31, 2009
		2011		2010
Assets of discontinued operations:
Current:
Accounts receivable, net of allowances		$	—	$	—	$	26,115
Inventory			—		5,515		67,309
Prepaid expenses and other			—		1,667		1,337
Fixed assets, net			—		—		343
	Total assets of discontinued operations	$	—	$	7,182	$	95,104
Liabilities of discontinued operations:
Current:
Accounts payable		$	—	$	14,218	$	58,597
Accrued expenses and other current liabilities			2,842		3,343		2,199
	Total current liabilities		2,842		17,561		60,796
Other non-current liabilities			3,255		—		—
Total liabilities of discontinued operations		$	6,097	$	17,561	$	60,796