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Sale Of Japan Product Sales Operation
 12 Months Ended
Aug. 31, 2012
Sale Of Japan Product Sales Operation [Abstract]  
Sale Of Japan Product Sales Operation

13.SALE OF JAPAN PRODUCT SALES OPERATION 

 

During fiscal 2010, we sold the product sales component of our wholly owned subsidiary in Japan to Nakabayashi Co. Ltd., an unrelated Japan-based paper products company.  The sale included the disposition of inventories, certain intangibles assets (including customer lists), and other current assets, which had an aggregate carrying value of $2.0 million.  The sale closed on June 1, 2010 and the total sale price was JPY 305.0 million, or approximately $3.4 million.  We recognized a pre-tax gain from the sale totaling $1.1 million after normal transaction costs.  In addition, the sale agreement provides for a three percent passive royalty on annual sales, which is insignificant to our operations.  The sale of this division was designed to further align our Japanese operations with our overall strategic focus on training and consulting sales.  The Japan products sales component was previously reported as a part of our international operations. 

 

We determined that the operating results of the Japan product sales component qualify for discontinued operations presentation and we have presented the operating results of the Japan product sales component as discontinued operations for all periods presented in this report.  The income recognized from discontinued operations was comprised of the following in fiscal 2010 (in thousands):

 

 

 

 

 

 

 

 

AUGUST 31,

 

2010

Sales

$
5,097 

Gross profit

 
2,230 

Income before income taxes

 
988 

Income tax provision

 
(440)

Income from discontinued

 

 

operations, net of tax

 
548