Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 12 Months Ended
Dec. 31, 2012
Discontinued Operations [Abstract]  
Discontinued Operations
 
(16)  Discontinued Operations

In December 2012, we decided to divest and sell our subsidiary ICRC and eliminate our Infrastructure Group.  ICRC's largest contract was with the U.S. Department of Transportation Maritime Administration ("MARAD") for services performed on the Port of Anchorage Intermodal Expansion Project in Alaska (the "PIEP"). The MARAD contract expired on May 31, 2012, when the option year was not exercised by MARAD. Upon evaluating the impact of the elimination of this program from ICRC's business base, we determined that expected financial results of the remaining construction management services business would not justify our continuation of its business. On February 20, 2013 we signed a non-binding letter of intent with a prospective buyer to sell ICRC.  We expect to close on the transaction during the first half of 2013.

The assets and liabilities to be sold are classified as assets and liabilities held for sale on our consolidated balance sheet as of December 31, 2012 and are recorded at the lower of their carrying values or fair values less costs to sell. We evaluate our assets and liabilities held for sale using both income and market approaches.  These inputs are considered level 3 fair value measurements. The goodwill recorded in assets held for sale for ICRC was primarily based on our expectations of a sale price as compared to our estimation of the net assets to be sold at closing. The major categories of the assets and liabilities held for sale are as follows (in thousands):
 
Assets:
      
    Accounts receivable
  
$
2,100
  
    Goodwill
    
790
  
Total assets held for sale
  
$
2,890
  
 
        
Liabilities:
        
    Accounts payable
  
$
551
  
Total liabilities held for sale
  
$
551
  

Revenues and costs of ICRC have been reclassified as discontinued operations for all periods presented.  The major categories included in discontinued operations on the consolidated statements of income are as follows (in thousands):

 
  
Year ended December 31,
  
 
  
2012
    
2011
    
2010
  
Revenues
  
$
23,128
    
$
37,830
    
$
55,082
  
 
                        
(Loss) income before income taxes
  
$
(9,728
)
  
$
580
    
$
292
  
Income tax (benefit)/expense
    
(3,658
)
    
218
      
110
  
(Loss) income from discontinued operations, net
  
$
(6,070
)
  
$
362
    
$
182