Assets and Liabilities Held for Sale (Notes)

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

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 has 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 Payments and Ticketing businesses are part of the Company's RSD operating segment. 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 gross proceeds from the divestiture are expected to be approximately $75.0 million, subject to net working capital adjustments and transaction costs. The pending sale of the legal entities comprising the Company's Payments and Ticketing businesses is expected to be completed in the second half of 2019. The Company measured these businesses at the lower of their carrying value or fair value less any costs to sell, and subsequently recognized an impairment of approximately $17.0 million during the quarter ended June 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 June 30, 2019:



(In thousands)	June 30, 2019
Assets
Cash and cash equivalents	$	7,545
Accounts receivable	4,023
Unbilled receivables	859
Prepaids and other current assets	2,997
Intangible assets, net	19,793
Goodwill	53,882
Property, plant and equipment, net	1,168
Operating lease right-of-use assets	1,373
Other assets	206
Total assets held for sale	$	91,846

Liabilities
Accounts payable	$	502
Accrued salaries and benefits	1,630
Deferred revenue	4,378
Operating lease liabilities	1,488
Other liabilities	5,708
Total liabilities held for sale	$	13,706

Total net assets held for sale	$	78,140

Total net assets held for sale	$	78,140
Foreign currency translation adjustment related to Payments and Ticketing businesses	10,318
Total net assets including foreign currency translation adjustment	88,458
Estimated fair value less costs to sell	(71,468		)
Impairment of assets held for sale	$	16,990