XML 34 R23.htm IDEA: XBRL DOCUMENT v3.3.1.900
Discontinued Operations (Tables)
 3 Months Ended
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
At September 30, 2015, the carrying amounts of major classes of assets and liabilities of discontinued operations included in the Consolidated Balance Sheet was as follows (in thousands):
 
September 30, 2015
Current assets:
 
Accounts receivable, net
$
1,417

Deferred tax assets
127

Other current assets
80

Total current assets
1,624

Property, equipment and improvements, net
18

Identifiable intangible assets, net
1,531

Goodwill
1,914

Deferred tax assets (1)
(589
)
Total assets of discontinued operations
$
4,498

 
 
Current liabilities:
 
Accounts payable
$
50

Accrued compensation
1,346

Other current liabilities
85

Total current liabilities
1,481

Other non-current liabilities
95

Total liabilities of discontinued operations
$
1,576

(1) As of September 30, 2015, the we had a net deferred income tax asset related to the United States federal jurisdiction. That net deferred income tax asset position included a deferred income tax liability of $589 thousand related to Etherios, Inc., which was entirely in the United States federal tax jurisdiction.
Below is a summary of the gain on sale subject to final working capital adjustments (in thousands):
Cash received at closing
 
$
4,000

Less: Employee related liabilities
 
(1,134
)
  Net cash proceeds at closing
 
2,866

Present value of receivable due on October 23, 2016
 
2,941

Present value of receivable due on October 23, 2017
 
1,922

Receivable for selling price adjustments
 
152

Total fair value of consideration received
 
7,881

Less:
 
 
Net assets of Etherios, Inc.
 
(3,383
)
Facility abandonment costs
 
(856
)
Transaction costs, primarily professional fees
 
(730
)
Gain on sale of discontinued operations, before income taxes
 
$
2,912

Income (loss) from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014 is as follows (in thousands):
 
Three months ended December 31,
 
2015
 
2014
Service revenue
$
891

 
$
1,505

Cost of service
713

 
2,140

Gross profit (loss)
178

 
(635
)
Operating expenses:
 
 
 
Sales and marketing
148

 
557

Research and development
103

 
479

General and administrative
43

 
413

Total operating expenses
294

 
1,449

Loss from discontinued operations, before income taxes
(116
)
 
(2,084
)
Gain on sale of discontinued operations, before income taxes
2,912

 
—

Total income (loss) from discontinued operations, before income taxes
2,796

 
(2,084
)
Income tax benefit on discontinued operations
(523
)
 
(727
)
Income (loss) from discontinued operations, after income taxes
$
3,319

 
$
(1,357
)
The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other intangible assets of the discontinued operations related to Etherios (in thousands):
 
Three months ended December 31,
 
2015
 
2014
Amortization of identifiable intangible assets
$
30

 
$
121

Depreciation of property, equipment and improvements
$
—

 
$
6

Purchases of property, equipment, improvements and certain other intangible assets
$
—

 
$
(17
)