v2.4.0.8
Discontinued Operations
 9 Months Ended
Sep. 30, 2013
Discontinued Operations

(12) Discontinued Operations

On February 25, 2013, the Company committed to a plan to sell its Angel.com business. The Company made the decision to sell Angel.com in order to focus on its analytics software and services offerings.

 

On March 15, 2013, the Company completed the sale of its equity interest in Angel.com for consideration to the Company of approximately $111.2 million, resulting in a net cash inflow of $100.7 million after $10.5 million in transaction costs. The sale resulted in a gain of $57.4 million, net of tax. As of December 31, 2012, the associated assets and liabilities of the Angel.com business are classified as held-for-sale and are presented in the following table (in thousands):

 

     December 31, 2012  

Assets:

   

Cash and cash equivalents

    $ 1,350   

Accounts receivable, net of unpaid deferred revenue of $554 and allowance for doubtful accounts of $347, respectively

      4,720   

Prepaid expenses and other assets

      738   

Property and equipment, net

      3,763   
  

 

 

  

Total assets

    $ 10,571   
  

 

 

  

Liabilities:

   

Accounts payable and accrued expenses

    $ 1,587   

Accrued compensation and employee benefits

      2,364   

Gross deferred revenue and advance payments, net of unpaid deferred revenue of $554

      639   

Other liabilities

      99   
  

 

 

  

Total liabilities

    $ 4,689   
  

 

 

  

Net assets and liabilities of disposal group

    $ 5,882   
  

 

 

  

The following table summarizes the revenues and pre-tax loss generated by the Angel.com business during the three and nine months ended September 30, 2013 and 2012, respectively, in addition to the pre-tax gain on the sale of Angel.com recorded by the Company during the three and nine months ended September 30, 2013 and 2012, respectively (in thousands):

 

     Three months ended
September 30,		      Nine months ended
September 30,		  
     2013      2012      2013      2012  

Angel.com revenues

    $ 0       $ 7,150       $ 6,320       $ 20,415   

Angel.com pre-tax loss

    $ 0       $ 590       $ 986       $ 2,781   

MicroStrategy pre-tax (loss) gain on sale

    $ 0       $ 0       $ 94,925       $ 0