v3.5.0.1
Discontinued Operations
 12 Months Ended
Apr. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
On June 4, 2014, the Company entered into a definitive agreement to divest the assets of PowerReviews, Inc. (“PowerReviews”), pursuant to a Joint Stipulation with the Department of Justice and Order to the U.S. District Court for the Northern District of California, San Francisco Division, for $30.0 million in cash, $4.5 million of which was held in escrow as a partial security for the Company’s indemnification obligations under the definitive agreement, and subsequently released during fiscal 2016. As a result, PowerReviews revenues, related expenses and loss on disposal, net of tax, are components of “loss from discontinued operations, net of tax” in the consolidated statements of operations. The statement of cash flows is reported on a combined basis without separately presenting cash flows from discontinued operations for all periods presented.
Results from discontinued operations were as follows (in thousands):
 
Year Ended April 30,
 
2016
 
2015
 
2014
Revenues from discontinued operations
$
—

 
$
2,535

 
$
17,011

Income from discontinued operations before income taxes
$
—

 
$
303

 
$
(1,106
)
Income tax expense
—

 
23

 
22

Net income from discontinued operations
—

 
280

 
(1,128
)
Loss on disposal of discontinued operations, net of tax
—

 
(1,537
)
 
(9,192
)
Loss from discontinued operations, net of tax
$
—

 
$
(1,257
)
 
$
(10,320
)
The Company recorded a loss on the disposal of discontinued operations of $1.5 million, net of tax, in the fiscal year ended April 30, 2015 which was calculated as follows (in thousands):
Cash consideration
$
30,000

Less:
 
Basis in net assets as of July 2, 2014
39,972

Costs incurred directly attributable to the transaction
1,039

Loss before income taxes
(11,011
)
Income tax benefit
(282
)
Loss on disposal of discontinued operations, net of taxes
(10,729
)
Loss on disposal of discontinued operations, net of taxes, previously recognized
9,192

Loss on disposal of discontinued operations, net of tax, recognized in fiscal 2015
$
(1,537
)

The Company recorded a loss on the disposal of discontinued operations of $9.2 million, net of tax, in fiscal year 2014 which was calculated as follows (in thousands):
Estimated cash proceeds
$
30,500

Less:
 
Basis in net assets sold as of April 30, 2014
39,316

Estimated costs incurred directly attributable to the transaction
658

Estimated loss before income taxes
(9,474
)
Estimated income tax benefit
(282
)
Estimated loss on disposal of discontinued operations, net of taxes
$
(9,192
)


The carrying amount of assets held for sale in the consolidated balances sheet as of April 30, 2014 was calculated as follows (in thousands):
 
April 30,
 
2014
Total assets of discontinued operations
$
42,937

Estimated loss on disposal of discontinued operations, net of tax
(9,192
)
Assets held for sale
$
33,745


As of April 30, 2016 there were no ‘assets held for sale’ as the divestiture of the PowerReviews business was completed on July 2, 2014. The $4.5 million held in escrow was released during the fiscal year ended April 30, 2016, and the Company received no claims for indemnification under the definitive agreement.